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Australian shares fall as Trump's threat of tariffs dampens sentiment
Australian shares dropped on Tuesday. Heavyweight miners, financial stocks and other sectors led the losses. Global risk sentiment was soured by escalating tensions following U.S. President Donald Trump's threat to impose extra tariffs against Europe. As of 0007 GMT, the?S&P/ASX 200 was down 0.5% to?8,832.9. The benchmark closed Monday 0.3% lower. Overnight, global stocks fell as Trump announced he would add 10% to the tariffs imposed on eight European nations that oppose his takeover Greenland. U.S. stock markets were closed for a public holiday. S&P 500 Eminis futures fell 70.75 points or 1.01% early on Tuesday. Meanwhile, Japan's Nikkei dropped 0.5%. The "Big Four", which comprise a large portion of the benchmark, fell between 0.6% to 0.9%. The mining subindex fell by almost 1%. Iron ore fell to a two-week low following data from China, the largest consumer. BHP shares fell 0.7% as the sector's heavyweight announced that it had accepted lower iron ore prices during annual contract negotiations in China and also flagged a 20 percent increase in costs at its Jansen Potash project in Canada. However, the miner reported record-breaking?first half iron ore production. Rio Tinto, due to announce its fourth quarter production results on Tuesday, has also slipped 0.7%. Market participants will also be watching the December jobs data to determine the Reserve Bank of Australia rate cut trajectory. The broader mining sub-index lost 0.3% of its value as the price of safe-haven gold retreated from record highs. Real estate stocks dropped 0.9% on their way to their steepest single-day drop since earlier this month. Technology stocks, which were bucking the mood of gloom, added 0.7%. Healthcare and consumer discretionary stocks, on the other hand, rose by 0.2% and 0.4% respectively. New Zealand's benchmark S&P/NZX50 index fell by 0.4%, to a low of 13,523.19.
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BHP flags price concessions, reports record HY ore production
BHP Group accepted lower prices during annual contract negotiations. It said this on Tuesday as it reported record production in the first half of steelmaking's key ingredient. The miner has also reported a 20% increase in the costs of its Jansen Potash Project in Canada. BHP?said that it is currently negotiating a contract?terms of annual with the state iron ore buyer, China Mineral Resources -Group (CMRG). BHP stated in a press release that "during negotiations, we continue optimising product placement distribution channels as well as taking?actions? within our operations so to preserve 'operational flexibility and productivity". This has had some impact on the realised price. BHP has separately announced that the estimated total investment for its Jansen Stage 1 project is now $8.4?billion, up from an earlier estimate of between $7 billion and $7.4 billion. The cost increase was attributed to the construction hours and materials used that were not included in earlier estimates. The world's biggest listed miner reported that?iron ore produced from its Western Australia operations was 146.6 metric?tons on a 100 percent basis in the six-month period ended December 31. This is a 1% rise from the same time last year. (Reporting from Rajasik Mukherjee, Bengaluru. Editing by Jamie Freed.)
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UK targets struggling water sector through new regulator
Britain will announce plans on Tuesday to improve England's Water Sector. They promise a "new regulator" with the power to check more on infrastructure and prevent sewage spills?and?supply outages. After years of underinvestment in the water sector, the government declared that the privatised system was broken. Meanwhile, the biggest provider of the country, Thames Water, struggles to survive, having been?loaded with debt. Two incidents in the last six weeks left thousands of homes in south east England with no water for several days. Last July, the creation of a regulator that would "combine existing authorities" was suggested. Environment Minister Emma Reynolds said new legislation planned by the government would ensure improved performance from water companies. Water companies won't be able to hide their poor performance. Customers will receive the service they deserve. Investors will see an?system designed for the future", she said. Thames Water is attempting to get regulatory approval for a plan of rescue led by some of its lenders. However, the heavy fines that it has to pay prevent it from investing in order to improve performance. The government announced a plan to create a "Performance Improvement Regime" that would help "underperforming companies recover quicker". The government did not give any further details. The new regulator will also be able to perform "health checks" of water companies' infrastructure and pipes. (Reporting and editing by Paul Sandle, Sarah Young)
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UK to overhaul its antitrust system to drive growth
Britain wants to improve its competition regime. It has launched a formal consultation to see if it can be made "faster, predictable, and more proportionate". The government announced that it would speed up and simplify the anti-trust investigations, "working closely" with CMA (competition regulatory body) while maintaining its independence. It added that the consultation proposed changes to the way the CMA makes merger decisions and market investigations. This would ensure market remedies were regularly reviewed and businesses could be more certain about whether they will face merger controls. The CMA's decision-making independence will not be affected by these proposals, it was added. The CMA announced on Monday that they would review their historical interventions in order to determine if any of them were still needed to reduce the burden?of compliance. They identified 33 market'remedies' - 60 percent of all those already in place – that might no longer be necessary. The government has also announced that the state-owned bank for development will invest in Kraken Technologies 25 million pounds ($34million) as its largest direct investment, supporting the AI energy software company ahead of an eventual London listing. The government announced that the investment in Kraken, valued at $8.45billion after its spinoff from UK-based Octopus last year, follows reforms made to the British Business Bank mandate, allowing them to take larger, more risky stakes in important scale-ups. Peter Kyle, the business minister, said that Britain's most promising businesses have been looking abroad for support to help them grow. "We are cutting red tape and backing innovators who can really 'firepower'. According to a statement, The BBB, 'owned by the Government's Business Department but operatingly independent', will invest separately 50 million pounds in Epidarex Capital and IQ Capital. Kraken, a company that provides energy software to utilities, energy groups, and companies such as EDF, National Grid U.S., and Tokyo Gas, has 70,000,000 global customers. It "may list in London", the government said, following its demerger.
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The Russian budget deficit in 2025 was 2.6% of the GDP, which is the highest level since 2020
The Finance Ministry announced on Monday that Russia had a budgetary deficit of 5.6 trillion roubles, or 2.6% of GDP, by 2025. This is the largest deficit in terms of percentage of GDP since 2020 and in roubles since 2006. In 2024, Russia's fiscal deficit was equal to 1.7% of its GDP. The?government increased the deficit target in 2025 from the initial?1.2 trillion Rubbles or 0.5% GDP due to the shrinking energy revenue and a strong Rouble. Budget revenues were 37.28 trillion rubles, down 7.5% on the original target. This was due to the 24% drop in oil and gas revenue, which reached its lowest level since 2020 despite the corporate profit and income tax increases. Budget spending, at 42.93 trillion rubles, was up 6.8% from 2024, and 3.5% more than the original?budget plan. Analysts doubt that the government will be able to meet its target, despite the fact that the government has raised the value added tax in order to keep the deficit this year at 1.6% of GDP.
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Italian fashion great Valentino dead at 93
His foundation announced that Valentino Garavani, the Italian designer of fashion, died on Monday. Valentino, who is usually only known by his first name, was 93 years old and had Retired in 2008 Valentino, the founder of his eponymous label, was a pioneer in haute couture, who built a successful business empire, and also introduced to fashion a new color, the so-called "Valentino Red". The foundation posted on Instagram that "Valentino passed away today in a?his Roman home, surrounded by his loved ones." It added that the funeral would take place at 11am (1000 GMT) on Friday in Rome. Valentino, along with Giorgio Armani, Karl Lagerfeld and other great designers of an era when fashion was not a globalized industry dominated by marketing executives and accountants but rather a highly commercialized one. Lagerfeld The year 2019 has seen the death of many people. Armani Died in September. (Written by Alvise Armillini, edited by Gavin Jones).
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Ghana's mining reforms could choke off investment, warns industry body
Ghana's main mining industry group said that changes in the country's tax and royalties terms could deter investment, and slow?output. Last week, it was reported that Africa's largest gold producer planned to cancel long-term mining investments stability agreements and double royalty payments under sweeping reforms. These changes will result in the termination of the?stability agreement with Newmont, AngloGold Ashanti, and Gold Fields. The mining regulator stated that the change was intended to increase state revenue and crackdown on companies abusing their licenses. The draft bill, which is expected to be presented to the parliament in March, proposes a royalty rate of 9%, rising to 12% when gold reaches $4,500 an ounce or more, about double the current range of 3% to 5%. Fear of Stalemated Projects, Lost Jobs In a statement released on Monday, the Chamber of Mines - which represents the 'big mining companies' - said that they supported the principle of a sliding scale royalty system, which would allow the government to earn more when gold prices are higher. It warned, however, that the current proposal could push Ghana up the global effective taxes curve and potentially cause projects to be halted or jobs to be lost. "We understand why a sliding scale is used, but it must be structured in a way that the government can secure sustainable revenues?while industry continues to grow and reinvest," said Chief Executive Kenneth Ashigbey. The current proposal fails to strike this balance. The chamber did not offer a "counterproposal". The Minerals Commission and the Lands and Natural Resources Ministry of Ghana did not respond immediately to comments. The chamber of commerce said that Ghana's large scale miners pay a 3% growth levy and a flat 3-5% royalty rate. Both are levied based on gross revenue, not profit, and include a 35% corporation income tax, an 8% dividends tax and a 10% state-free carried interest. It said that stability and development agreements need to be improved, but not repealed outright. The chamber welcomed the ongoing consultations between Ghana's Lands and Natural Resources Minister and stressed that a competitive, predictable fiscal regime is essential to sustaining investment. Maxwell Akalaare Adombila, Robbie Corey Boulet and Susan Fenton edited the report.
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Gold and silver record highs amid Greenland dispute
Gold and silver reached record highs on Monday as investors fled to safety following the warnings from U.S. president Donald Trump about extra tariffs being imposed on certain European countries over a dispute regarding Greenland. By 12:05 pm, spot gold had risen 1.7% to $4672.49 per ounce. After reaching a record high of $4,689.39, ET (1705 GMT) was reached. U.S. Gold Futures for February Delivery increased 1.8% to $4677.70 per ounce. Trump threatened several European Allies on Saturday with an escalating series of tariffs unless the U.S. was allowed to "buy Greenland", intensifying a dispute about Denmark's vast Arctic Island. "When institutional or policy risks resurface the markets tend to'react quickly by reallocating towards safe-haven investments, with gold emerging once again as the preferred option," said XS.com senior analyst Linh Tran. Dollar fell after Trump's latest threats to raise tariffs prompted investors to seek out safe-haven currencies like gold, yen (Japan) and Swiss Franc. This was part of a broader risk-averse movement across all markets. Gold is more likely to do well in times of geopolitical or economic uncertainty and when interest rates are low. It has gained over 64% since 2025, and more than 8% in the first half of this year. Michelle Bowman, Vice Chair of the Federal Reserve for Supervision, said that the U.S. Central Bank should be prepared to lower interest rates if necessary due to a fragile and potentially weakening job market. The markets expect the Fed will hold rates at its meeting on January 27-28, but they are pricing in two 25 basis point rate cuts this year. Spot silver, which had previously reached a record-high of $94.61, has risen 5% to $94.41 per ounce. Since the beginning of the year, silver has increased by more than 32%. Citi Research analysts said they remain "tactically bullish" on precious metals. They set price targets for gold of $5,000 per ounce and silver at $100 per ounce in the next three month, citing the geopolitical tensions likely to continue to be high. Palladium increased 1.1%, to $1,819.99, while spot platinum rose 1.5%, to $2,362.65 per ounce.
Canada's farmers produce record crops despite droughts, floods and other natural disasters
After a year of flooding and a long dry spell, Simon Ellis expected "catastrophic" failure when he first drove his combine through this crop.
Instead of shriveled seeds, plump grains of wheat, oats, and soybeans were poured into the combine.
Ellis, 38, who is a fourth generation farmer in Wawanesa (Manitoba), credits the investment made into expensive systems, such as minimum- and zero-till agriculture, for helping to protect soil.
Tile drainage is an underground system that prevents flooding. It also contains pellets of fertilizer with a slower release rate, which are more efficient. A professional agronomist can provide advice on weedkillers.
He said, "We're always making small tweaks." "That's the only way we can continue to fight against climate change."
Farmers like Ellis are common in western Canada.
According to Canadian government statistics, farmers have produced better crops in spite of 'hotter and dryer' conditions. This is a far cry from what they could have achieved in better weather years ago.
While higher yields in Canada, and elsewhere, are depressing the global price for grains they keep many farmers in business.
A RECORD HARDEST HARVEST EVEN IN THE MIDST OF A DROUGHT
Many farmers have been able to survive the drought that started in 2020 by using adaptation practices, which are expensive and require cutting-edge technologies. The Canadian government announced earlier this month that it would be harvesting record amounts of canola and spring wheat by 2025. Because most grains produced in Canada is shipped and consumed overseas, these gains will have a major impact on the ability of the rest of world to feed themselves affordably. Australia, a large grain exporter in the world, also reported higher crop yields, despite dry conditions. According to interviews with 25 farmers, scientists, and leaders in the agriculture industry, as well as a review of over a dozen academic articles, this combination of technology and methods is helping Canadian growers not only keep up with climate changes, but also stay ahead of their ravages. According to government data, spring wheat used for high-quality bread yielded 58.8 bushes per acre in 2018. Based on a three year average, this is a 77% increase from 30 years ago. Canola yields have nearly doubled to reach 44.7 bushels an acre based on the same average of 1994-1996.
The agricultural experts interviewed in Nature said that climate adaptation strategies can help the prairies continue to produce larger and larger crops in the future. Rob Saik is a Canadian agronomist and has advised governments around the world. "Now, it's a complete failure."
A REGION WORLDWIDE RECOGNIZED FOR BEING DIFFICULT
Western Canada was experiencing extreme weather even before the climate change.
It was a notoriously hard region to farm.
Central prairies are a land of golden and green short grasses and thin, scrubby brushes. They receive half the amount of rainfall that Iowa does and have a shorter growing season.
Climate change has made it harder. Environment and Climate Change Canada
According to the report, extreme weather events are becoming more common and the country is warming twice as fast as the global average.
. On the prairies annual snowfall has decreased, and extremes in summer rain and drought are increasing. Rain often comes as torrents or even not at all.
In a report dated 2024, the federal department stated that extreme events such as floods, heatwaves or wildfires are damaging our economy, ecosystems, and built environment.
Not Miracles, but INCREASED GAINS
Scientists and agronomists agree that Canada's gains are not the result of a single, dramatic event, but rather from incremental, steady progress in farming techniques and inputs.
Now, many seeds are coming.
Thanks to genetic modification and conventional breeding, these plants are resistant to insects, diseases, and weeds. The application of fertilizer is timed to coincide with the planting of seeds to minimize soil disturbance.
The use of weedkillers, ungicides and nutrients allows crops to compete with their natural enemies.
Some strategies are reminiscent of pre-industrial techniques, like intercropping or growing multiple crops simultaneously.
Experts are also credited
Automation such as self-guiding tractor that applies fertilizer at different rates depending on soil testing and satellite mapping.
A FAMILY'S EVOLUTION IN ADAPTATION
The Mowbray Family began adapting practices with tile drainage four decades ago. They laid a small length of perforated pipes designed to allow the water to drain into the soil instead of spreading it on the surface.
In the past 12 years, Scott Mowbray (46), has increased the drainage system on his 800-acre property.
The Mowbrays, meanwhile, gradually reduced their tilling. In 2010, the 2,000 acres of farm were no-till. The soil was left unplowed, and stubble remained to act as a moisture-trap and barrier against the wind which would otherwise carry the topsoil.
Mowbray says that the innovations have allowed him to produce "incredible" quantities of spring wheat and peas, while using half as much rainfall.
TECHNOLOGY'S STEEL PRICE TAG
Many of the tools that have helped Canadian farmers deal with climate changes are expensive and complex. A smart combine can cost upwards of C$1,000,000 ($722,125.94). A high-speed-data-enabled tractor and seeding drill cost around C$2 ?million ($1.44 million).
Kip Eideberg is the senior vice president of government relations and industry relations at the Association of Equipment Manufacturers (AEM), which represents John Deere, Case New Holland, and other manufacturers. He said that precision systems are important.
The Canadian farmers have been able to save 9% on herbicides and pesticides. They also saved 6% on fuel and 4% on water. He said that this saves money for farmers who are operating on razor thin margins.
Terry Griffin, an agricultural economist at Kansas State University, says that most large-scale farms have such technology available in their 'tractors, combines and sprayers, as well as management computers. A younger generation of farmers may not have the funds to purchase machines or receive agronomic guidance.
Rural broadband access is one of the biggest obstacles to adoption. Mowbray cannot rely on his farm machinery to provide a continuous stream of data. He can't call his farm from his phone. He relies on radios to communicate with his farm.
He said that it was a simple but important thing to have when you're out in the field, and need a pickup but are unable to call home.
SEED SCIENCE: THE INVISIBLE Factor
Breeding genetically superior crops, which are drought-tolerant, hardier and yield more, is also important for farmers. "We're just starting down that path," said Rick Mitzel, CEO of farmer-and-industry-funded mustard seed development organization Mustard 21. The company is working on drought-tolerant plants to replace canola. Mitzel said in an interview that the varieties "develop roots faster, come out of ground quicker and get leafing quicker."
South East Research Farm, a farmer-controlled farm in Redvers in Saskatchewan, has been testing crops like camelina that is likely to be planted for sustainable aviation fuel in Canada. This could offer farmers higher yields and greater resilience.
Lana Shaw, executive director of the Canadian Farm Community Association, believes that climate change will not occur without causing losses to Canadian farmers. Some farmers will retire and not adapt. Some farmers will fail to adapt. Some farmers will thrive and adapt.
She said that "under pressure, they can adapt very quickly."
(source: Reuters)