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Minister says Nepal lifts the ban on social media after 19 protesters are killed
A government minister announced on Tuesday that Nepal had lifted its ban on social media following the protests which resulted in 19 deaths. Prithvi Gurung, Minister of Communications and Information Technology and Cabinet spokesperson, said that the government had lifted its ban on social media imposed just last week. After 19 people died and over 100 were injured during the "Gen Z's" Monday protests against widespread corruption, the decision was made. The ban was the catalyst for the protests. "We have lifted the ban on social media." Gurung said that they are now working. Prime Minister K.P. Sharma Oli expressed his sadness over the violence that has been caused by "infiltration" from various selfish centers. He added that the government would provide relief to the families of those who died and free medical treatment for those injured. In a statement released late on Monday, Oli announced that an investigation panel would be formed to determine the causes of the incident, to assess losses and to suggest measures to prevent it from happening again. The protests that spread to other cities of the Himalayan nation have been dubbed "demonstrations of Gen Z" by their organizers. The protests, they say, reflect the frustration of young people with the government for not taking action against corruption and boosting economic opportunities. Last week, the government decided to block several social media platforms, including Facebook. This decision sparked anger among young people. Officials claim that the shutdown is for social media platforms who have not registered with the government. This comes amid a crackdown against fake IDs and hate speech. Reporting by Gopal Singh in Kathmandu, and Surbhi Mitra in Bengaluru. Editing by Tom Hogue & Stephen Coates.
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Oil prices rise on modest OPEC+ production hike decision and Russia's supply problems
The oil prices rose on Tuesday as OPEC+ increased production less than the market expected, and concerns about tighter supplies due to new sanctions against Russia also continued to support them. Brent crude rose 22 cents or 0.33% to $66.24 a bar by 0005 GMT. U.S. West Texas intermediate crude rose 24 cents or 0.39% to $62.50 a bar. OPEC+ is a group of eight countries and their allies that have agreed to increase production by 137,000 barrels a day starting in October. This is a much smaller increase than the monthly gains of approximately 555,000 barrels per day for September and August and 411,000 barrels per day in July and Juni. This is less than what some analysts expected. In a Tuesday client note, Daniel Hynes said that the October move was "a reversal" of the cuts which were to be in place until 2026. This follows the rapid return of barrels idled in recent months. The speculation that more sanctions would be imposed on Russia following the largest air strike by Russia on Ukraine, which set a Kyiv government building on fire, also helped to support prices. Donald Trump, the U.S. president, said that he is ready to implement a second round of restrictions. The top European Union sanctions official, along with a team experts from Washington, discussed what would be the very first coordinated transatlantic measure against Russia after Trump's return to office. Additional sanctions against Russia could reduce its oil supplies to the global market, which would support higher oil prices. Next week, the U.S. Federal Reserve’s Federal Open Market Committee will meet. Traders predict an 89.4% probability of a quarter point interest rate reduction. Lower rates can reduce borrowing costs for consumers and boost the economy. (Reporting and editing by Christopher Cushing in Bengaluru, Anjana Anil)
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McGeever: The 100 billion dollar Treasury record that you missed.
For good reason, the recent spike in 30-year bond yields has been a headline story on world bond markets. With so much focus on the long end, it seems that few have noticed the historic changes in the ultra-short U.S. Treasury Market. The weekly sale of four-week T bills has now reached the landmark of $100 billion. The September 4 auction marked the fifth consecutive sales at this record-high amount. This new government strategy is reflected in the flood of bills being sold. The Trump administration wants to lower the country's overall interest rates and debt maturity profile by borrowing at the short end of the curve. It seems to be working so far. Investors expect at least 150 basis point of rate easing before the end of this year. This is not only lowering bill rates and yields on short-term bonds, but also yields over the longer term. The benchmark 10-year rate is at its lowest level since the 'Liberation Day tariff chaos' in April, and the 30-year rate is once again slipping away from 5%. Investors who lend to Uncle Sam over a period of 10 years with the associated risk get paid 4.08% annually, while those who lend to Uncle Sam in a four-week period receive 4.20%. These bill auctions are generating strong demand. Last week's $100-billion sale was 2,78 times oversubscribed. What's the issue? Let me Roll It The biggest worry is the 'rollover risk'. The government must refinance large portions of its debt more often because it concentrates sales on the front of the curve. It is then more vulnerable to unexpected financial, political, or economic shocks. These could lead to an increase in short-term borrowing rates or force the Fed's policy rate to be raised. Fed expectations may be skewed downwards right now. But what if inflation expectations start to rise and the Fed is forced to stop its easing cycle, or even raise rates? This is not a crazy scenario. Goldman Sachs says the Fed is likely to ease in a climate of 3% inflation, high equity markets and the most accommodative financial conditions for three-and-a half years. The Atlanta Fed's GDPNow model also predicts 3.5% economic growth. The full impact of Trump's new tariffs on inflation is not taken into consideration. The increased bill issuance is well-absorbed, but the cash that goes into them depletes liquidity pools and buffers elsewhere in the system. The overnight reverse repo facility of the Fed is almost empty and total bank reserve at the Fed is declining. Nobody knows the minimum level of comfortable reserves in the banking system. In late 2019, a sudden fall below this level caused significant volatility in the money markets and an increase in overnight rates. Experts believe that it is higher now, due to the expansion of the banking system and economy. Reserves are decreasing steadily and may soon fall below $3 trillion. Citi analysts warn that they will continue to "march" below this level as Tbill issuance increases, potentially pushing up repo rates and financing costs. THRESHOLD According to Wall Street estimates, the Treasury is increasingly relying on T-bills as a funding source. This could mean that new issuances over the next 18 month may exceed $1.5 trillion. The share of outstanding bills is also likely to increase. Currently, this portion is just under 21 percent. This is slightly below the historical median of 22.5% and above the range recommended by Treasury Borrowing Advisory Committee. T Rowe Price analysts believe the share will soon reach 25%. This is a level that was last seen during pandemics and the Global Financial Crisis. It suggests borrowing policies seen before crises may become the norm. All of this won't be a problem as long as the demand for increased issuance is strong. There's good reason to think that this will be the outcome. Money market funds, the largest buyers of T-bills, have seen their holdings explode from $4.7 billion in early 2020 to over $7 trillion today. There is also a massive demand for T-bills from stablecoin issues, who want to back their crypto assets using safe and liquid assets such as T-bills. The market may continue to "play ball" with the new government funding strategy. The Trump administration is hoping so, with over $1 trillion in new issuances coming.
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Bloomberg News reports that Anglo American is close to a deal with Teck Resources.
Bloomberg News reported Monday that Anglo American was close to a deal for the acquisition of Canadian miner Teck Resources. The report cited people who were familiar with the matter. Separately, The Financial Times reported Monday that the potential acquisition could be valued at around $20 billion. Reports said that the London-listed global mining company is considering paying a majority in stock and an announcement could be made as soon as this week. The report said that the terms and timing of the agreement are still uncertain and the talks could collapse without an accord. According to LSEG, Teck Resources is valued at approximately C$23.69 (about $17.17 Billion), while Anglo American's market value is around 26.82 Billion Pounds (roughly $35.35 billion), according to LSEG. Anglo American, as well as Teck, have attracted interest in recent years from bigger rivals. Anglo rejected a $49billion takeover offer from BHP Group in the past year. Teck also turned down a $22.5billion full buyout from Glencore. Glencore has said that it is still interested in Teck, the Canadian miner. If Anglo makes an approach, there could be a bidding war. We could not verify the information immediately. Teck, Anglo American, and Glencore didn't immediately respond to requests for comment. ($1 = 1,3797 Canadian Dollars) ($1= 0.7378 Pounds) (Reporting and editing by Mohammed Safi Shamsi, Rashmi Anich and Dheeraj Misra from Bengaluru)
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Norway's ruling Labour party wins re-election
Norway's Labour Party minority government will narrowly win its re-election Monday, according to projections from local broadcasters. The vote was dominated by concern over the rising cost of living and wars in Ukraine, Gaza and Gaza. If the official results confirm early readings, then 65-year-old Prime Minister Jonas Gahr Stoere would remain at power as part of a minority coalition that would heavily depend on smaller parties for major legislation, such as fiscal budgets. In order to gain their support, he will likely have to face difficult discussions about issues like tax hikes on the wealthy, oil exploration in the future, and divestments from Israeli companies by Norway's sovereign wealth fund of $2 trillion. The broadcasters NRK, TV2 and the daily VG projected that Stoere's Labour bloc and four smaller parties would win 87 seats. This is more than the required 85 for a majority. The right-wing parties led by Progress, a populist anti-immigration party, and Erna Solberg's Conservatives, a 64-year-old former prime minister, are on course to win 82 seats. Concerns about the turmoil in Ukraine, and an aggressive Russia that shares a border in the Arctic with Norway, have given the left a boost in recent months, after former NATO Secretary General Jens Stoltenberg joined Stoere’s cabinet. Unlike some of their counterparts in Europe, none of the right-wing political parties expected to win seats has sought the support of U.S. president Donald Trump or his movements.
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Gold rallies above $3,600/oz to a record high as Fed rate-cut bets are firm
Gold surged above $3,600 per ounce for the first-time on Monday. It was a record high as weak U.S. employment data reinforced expectations that the U.S. Federal Reserve would cut interest rates the following week. As of 2:26 pm EDT (1826 GMT), spot gold was up 1.3% at $3,634.25 an ounce. Bullion reached a new record of $3,646.29. U.S. gold futures for December delivery settled 0.7% higher at $3,677.40. Peter Grant, senior metals analyst at Zaner Metals and vice president, believes that the yellow metal will continue to rise in price, reaching $3,700-3,730 within a short time. The bullion market could be sustained by the continued softening of the labor market and the expectation that Fed rates will continue to fall into early 2026. The Friday jobs report revealed that U.S. employment growth was slowed dramatically in August. According to CME FedWatch, traders now expect a rate cut of up to a quarter point at the Fed meeting in September. Low rates reduce the cost of holding bullion that does not yield. Gold prices have risen 37% this year after 27% growth in 2024. This is due to dollar weakness, central bank accumulations, dovish monetary policies and increased global uncertainty. China's central banks extended its gold buying streak to 10 consecutive months in August, according to official data released on Sunday. The benchmark 10-year U.S. Treasury rates, on the other hand, are at their lowest level in five months. Investors will now be waiting for the U.S. consumer price data and producer prices to come out on Thursday. This information could provide further insight into Fed policy. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that if the U.S. Dollar and yields continue to fall, the bullish momentum should also continue in gold. Razaqzada said that if the U.S. data showed surprise resilience in the coming week, gold could correct from its elevated levels. Silver spot rose 0.8%, reaching its highest level since September 2011 earlier in the session. Platinum rose 0.6% to $1,381.49 and palladium gained a 2.1% increase to $1,132.87.
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Egypt's EGAS signs a preliminary agreement with BP for the drilling of five Mediterranean gas wells
Egypt's Petroleum Ministry announced on Monday that the Egyptian Natural Gas Holding Company, or EGAS, has signed a preliminarily agreement with BP for drilling five new gaswells in Mediterranean Sea. The Ministry's efforts to increase exploration and production are reflected in the memorandum signed by EGAS, a state-owned company. Egypt, once the largest gas exporter in the region, is increasingly importing to meet its domestic demand, as production from old fields declines and new investments are slow. According to the Joint Organisations Data Initiative, gas production in May decreased by more than 40% compared to March 2021. The statement said that drilling of the five deep wells at 300 to 1,500 meters is expected to begin next year. The Petroleum Ministry announced on August 30 that it had signed four agreements with international companies worth over $340 million for the exploration of oil and gas in Mediterranean and Nile Delta. Shell, Eni of Italy, and Arcius Energy were among the firms. Arcius Energy is a joint venture owned 51% by BP, and 49% by ADNOC investment arm XRG. (Reporting and editing by Muhammad Al Gebaly, Jaidaa T.A. Haha)
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Databricks expects to generate $4 billion annually in revenue from the surge in AI demand
Databricks, a firm that provides analytics, announced on Monday that it is on track to reach $4 billion in revenue annually, an increase of more than 50% over the previous year. This was due to the surge in demand for its artificial-intelligence products. The Series K funding was led by Andreessen Hoowitz, Insight Partner, MGX Thrive Capital, and WCM Investment Management. It raised $1 billion with a valuation of over $100 billion. The proceeds will be used to accelerate the company's AI strategy. This includes expanding its products, launching an entirely new category of operational databases, as well as future AI research and acquisitions. The company, which serves around 15,000 clients, including Shell, a major energy company, and Rivian, an electric vehicle manufacturer, has exceeded a revenue run rate of $4 billion, with AI products exceeding $1 billion. Databricks aims to achieve a net revenue retainment of more than 140%. It also wants more than 650 clients with annual spending exceeding $1 million and a positive free cashflow over the last 12 months. Databricks CEO Ali Ghodsi said in an interview that the company has received numerous investor inquiries since July's successful $1.22 billion initial public offering of design software firm Figma, another venture capital-backed startup. Databricks CEO Ali Ghodsi stated in an interview that his firm has received many investor inquiries following the $1.22 billion IPO of Figma, a venture-backed software company, in July. Databricks was founded in 2013 and offers a platform that helps users to ingest, analyse, and build AI apps using complex data. (Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore)
Major Russian air strikes destroy Kyiv power plant, damage other stations
Russian rockets and drones destroyed a large electricity plant near Kyiv and struck power facilities in numerous regions of Ukraine on Thursday, authorities stated, ramping up pressure on the embattled energy system as Kyiv runs low on air defences.
The major attack more than 2 years considering that Russia's. major invasion entirely damaged the Trypilska. coal-powered thermal power plant near the capital, a senior. authorities at the business that runs the facility told .
Russian President Vladimir Putin said Moscow had actually been. required to introduce the strikes in response to Ukrainian attacks. in current weeks on energy targets inside Russia.
Video footage on social networks showed a fire raging at the large. Soviet-era facility and smoke belching from it. was able. to verify the place of the video as the Trypilska station.
We need air defence and other defence assistance, not. eye-closing and long conversations, President Volodymyr Zelenskiy. said on Telegram, condemning the attacks as terror.
The Russian defence ministry said it struck fuel and energy. facilities in Ukraine in what it referred to as a huge. retaliatory strike utilizing drones and high-precision, long-range. weapons from air and sea.
The strikes were a reaction to Ukrainian drone attacks on. Russia's oil, gas and energy centers, it said.
Putin told his ally, Belarusian Presudent Alexander. Lukashenko that the attacks belonged of Russia's goal of. the demilitarisation of Ukraine - among the objectives of the. Kremlin's 2022 intrusion of its neighbour.
Regrettably, we observed a series of strikes on our. energy sites recently and were required to respond, Russian news. agencies estimated Putin as informing Lukashenko.
The strikes on energy are linked in part with fixing. among the jobs we set for ourselves, and that is. demilitarisation. Our company believe above all that in this way we will. impact Ukraine's military industrial complex and in an extremely. direct way.
Russia, he stated, had actually avoided carrying out such. attacks in winter out of humanitarian considerations.
Kyiv's appeals for urgent air defence products from the West. have grown significantly desperate given that Russia renewed its. long-range aerial attacks on the Ukrainian energy system last. month.
Foreign Minister Dmytro Kuleba was blunt in duplicating calls. for more U.S.-made Patriot systems.
What is there to discuss? he told the Ukrainian state. news firm Ukrinform during a visit to Slovakia. There is only. a single question: Offer us Patriot systems! If we had Patriots,. we would not have lost all of this today.
The attacks, which hammered thermal and hydroelectric power. plants, stimulated fears about the durability of an energy system. hobbled by a Russian air project in the war's very first winter season.
Ukraine's flying force commander stated air defences took down 18. of the incoming rockets and 39 drones. The attack utilized 82. missiles and drones in overall, the armed force stated.
The destroyed power plant outside Kyiv, a major provider for. the capital and Cherkasy and Zhytomyr regions, is the 3rd and. last center owned by state-owned energy company Centrenergo.
Everything is destroyed, Andriy Gota, head of the. supervisory board of the company, said when inquired about the. circumstance at Centrenergo.
BIGGEST ENERGY SUPPLIER NEAR THE CAPITAL
The Trypilska plant was the most significant energy center near. Kyiv and was developed to have a capacity of 1,800 megawatts, more. than the pre-war needs of Ukraine's biggest city. The Ukrenergo grid operator said its substations and power. producing facilities had actually been harmed in attacks on the regions. of Odesa, Kharkiv, Zaporizhzhia, Lviv and Kyiv.
Ukraine's largest personal electrical power business DTEK, which. lost 80% of its producing capability in attacks on March 22 and. March 29, said Russia's attacks struck two of its power stations.
On Thursday afternoon, Russian forces attacked a thermal. power station in the Sumy area in northern Ukraine with guided. bombs. The scale of damage was not right away clear.
The strikes likewise assaulted two underground storage facilities. where Ukraine shops gas, including some owned by. foreign business, energy company Naftogaz stated. The facilities. continued to operate, it included. The scenario in Ukraine is dire; there is not a moment to. lose, said U.S. ambassador Bridget Verge, adding that 10. rockets struck infrastructure in the Kharkiv location alone.
The grid operator provided a declaration urging Ukrainians to. reduce their usage of electrical power in the peak evening hours.
The area of Kharkiv, which borders Russia and currently has. long, rolling blackouts in place, was forced to cut electrical energy. for 200,000 people, governmental assistant Oleksiy Kuleba stated.
Ukraine has actually cautioned it could lack air defence munitions. if Russia keeps up the strength of its strikes and that it is. already needing to make tough decisions about what to protect.
There has actually been a downturn in Western assistance and a major. U.S. help bundle has actually been blocked by Republicans in Congress.
(source: Reuters)