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Gold drops over 1% after U.S. data on inflation boosts Fed rate hike bets
Gold prices dropped by over 1% on Thursday, after strong U.S. inflation data and higher oil prices increased the odds of a Federal Reserve rate increase next week. Spot gold fell 1%, to $4.358.09 an ounce, by 11:14 am EDT (1514 GMT), whereas U.S. Gold Futures dropped 1.4%, to $4.400.60. According to Kyle Rodda of Capital.com, a senior financial analyst, the Producer Price Index data "sort of shows that there's been a?bit? of a pick-up in underlying inflation" in the U.S. The Bureau of Labor Statistics of the Labor Department reported that PPI for final demands rose by 0.4% in August after a 0.1% increase, which was upwardly revised. CME FedWatch Tool shows that traders now price in a 70% chance of an interest rate increase next week. This is up from 62% prior to the release of the data. The majority of economists surveyed by the Fed expect that the Fed will hold rates at the September 15-16 meeting, and throughout the remainder of the year. Gold prices were further impacted by the U.S. dollar's rise, which made greenback-priced gold?expensive in other currencies. Rodda said that bonds must reflect a higher and more persistent?inflation due to the steeper oil price, which causes gold prices to drop. Typically, rising bond yields pressure gold by increasing the opportunity costs of holding non-yielding assets. Brent crude, the benchmark oil price, jumped by 4% to $105 per barrel on Thursday after the largest spike in 'attacks against shipping since the beginning of the U.S. - Iran war prompted supply disruption fears. The European Central Bank raised interest rates on Thursday for the second time this year to combat a rise in inflation caused by war-related energy costs. Silver spot fell 4.2% per ounce to $64.47, while platinum fell 4.6% to 1,808.42, and palladium dropped 3.9% to $1,000.75.
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The opposition warns that Finland's power supply could be affected by the Google AI deal.
Finland should implement a national permitting system for data centres to prevent power shortages and soaring energy costs, the opposition parties said Thursday after Google announced a major new investment. Nordic data centres have been popular for many years due to the region's cool climate, low-carbon electricity, and reliable power grids. However, AI developers are now under greater scrutiny from politicians and consumers. Alphabet’s Google announced on Wednesday that it would spend at least EUR13 Billion ($15.1 Billion) over the next two-years on?AI Infrastructure in Finland, its largest European investment. This includes a deal to supply nuclear power. Centre Party leader Antti Kaikoen said that while data centres were welcome in Finland, Finland must ensure there was enough electricity to power them. A national permitting system for data centres would be required. No one is looking at the big picture right now," said Kaikkonen. His party is Finland's largest opposition group. The Social Democratic Party (SDP), which leads in the polls in advance of the April election, has said that it welcomes data centre investments but is concerned about their implications for power demand. Niina Malm, a Social Democratic lawmaker said: "It's important to examine the availability of energy as an issue that affects internal security. This will ensure that people are able to afford it and have enough electricity." Google's deal included an agreement to purchase up to 50% energy from Finland's Loviisa Nuclear Plant over a period of 22 years. This will help extend the life expectancy of the plant from 2030, when it was originally scheduled for shutdown, until 2050. Together with utility Fortum, the companies said they would explore the development and production of nuclear energy and renewable energies in Finland. Finland's prime minister Petteri Orpo?has stated that the Google deal would boost the country's economic growth and that electricity rates will remain in control. The government didn't immediately respond to an inquiry for comment.
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Gold drops over 1% after U.S. data on inflation boosts Fed rate hike bets
Gold prices dropped by over 1% after?robust U.S. data on inflation and rising oil costs increased bets that the Federal Reserve will raise rates next week. Spot gold fell by 1.2%, to $4349.32 an ounce, at 9:24 am EDT (1324 GMT), whereas U.S. Gold Futures dropped 1.6%, to $4391.30. The data from the producer price index "sort of tells [us] that there has been an increase in inflation underlying in?the?U.S. The rising cost of energy is a major factor in the economy. U.S. Producer Prices increased in August in line with expectations, despite a rise in the cost of energy. According to CME FedWatch Tool, traders now price a 70% chance of a rate increase next week. This is up from 62% prior to the data. The majority of economists surveyed by the Fed expect that the Fed will hold the interest rates at their September 15-16 meeting, and throughout the remainder of the year. Gold prices were further pressured by the U.S. dollar's rise, which made greenback-priced gold more expensive in other currencies. Rodda said that bonds must reflect the higher inflationary pressures caused by higher oil prices, which are causing gold prices to drop. Gold is typically pressured by rising bond yields, which increase the opportunity costs of holding the nonyielding asset. The benchmark Brent crude oil price jumped by 4% to $105 per barrel on Thursday, following the largest spike in attacks?on shipping since U.S. - Iran war began. This prompted supply disruption fears. The European Central Bank raised interest rates for the second time this year on Thursday, in an effort to curb a rise in inflation caused by war-related energy costs. Silver spot fell by 4.2%, to $64.47 an ounce. Platinum dropped by 4.9%, to $1802.48. Palladium was down 4.3%, to $1295.23.
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Chad, a country in drought, bans certain crop exports to prevent a food crisis
Chad has lifted import duties on some grains and banned the export of other agricultural products in order to prevent food shortages following intense heat and drought that damaged harvests throughout the country. In a report released this week, the United Nations' Food and Agriculture Organization stated that Central Africa experienced multiple dry spells from July to mid-August. This raised concerns over crop yields and development. Finance Minister Tahir?Nguilin announced in a late-Wednesday decree that wheat, corn and millet, along with livestock feed and agricultural machinery, will be exempted from import duties and taxes. Separately, on Wednesday, Commerce Minister Mathieu Guilo Fanga signed a decree that banned the export of millet and other grains, including corn, rice and wheat, as well as sorghum and cotton seeds. Keda?Ballah is Chad's Minister of Agriculture Production and Industrialization. He said that the central, eastern, and northern regions were the worst affected by the drought. Ballah stated that the government was taking steps to help farmers grow crops in irrigated fields during off-season. He said, "This is the best way to stop famines in certain areas. We are well aware of this." World Food Programme stated earlier this year that over 3 million people will face acute food security during the lean period from June to August. No Farmer Left Behind Mahamat Moussa, a farmer from the west-central province Chari-Baguirmi told us that a drought had destroyed 12 hectares (acres) of his corn crops. He claimed that the government had failed to alert farmers to the heatwave and left them unprepared for extreme weather. He said, "The?food shortage on the markets is a major concern for authorities. We are going to starve, because no farmer in our area has been spared." Djibrilla abba bello, a nomad?herder from the Mayo-Kebbi Ouest area, reported that streams and ponds, which normally?supply livestock with water at this time of year, had dried up. "Our animals are losing a lot of weight, they're producing less milk, and have trouble walking long distances... "Our animals are losing weight, producing less milk and having trouble?walking long distances...
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The share of Chinese copper in LME stock rose to 44% by August
Data from the London Metal Exchange showed that, in August, 44% of all copper stocks were Chinese origin, up from 42% one month earlier. Overall inventories also increased. Total copper stocks in LME warehouses 0#MCUSTX-LOC> rose to 111.17 metric tons by the end August, up from 101.425 tons in July. Investors rushed to cover their bearish positions, pushing prompt copper prices sharply backwards, which attracted some inflows. The amount of 'Chinese Copper' available has increased from 49,400 to 66,350?tons. In August, 95% of the LME's aluminium was made up by aluminium from Russia, which is unchanged from last month, despite a small decline. The amount of Russian metal available fell by 2,750 tonnes to 230,050. The only other origin available, Indian, remained unchanged at 12,450 tons. Many traders shun Russian aluminum - even though metal produced prior to mid-April, 2024 is still eligible for trading. To comply with Western sanctions, aluminium produced in?Russia before that date will be?banned from the LME warehouse system. At the end of December, the share of?nickel of Chinese origin remained stable at 70%.
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BHP is facing a class action lawsuit funded by an Australian union after labour disputes escalate
A mining union in Australia is funding a BHP class action that could affect up to 7,000 employees. This is the latest labour dispute involving the world's largest listed miner, which also faces its first major strike for a quarter-century. The Mining and Energy Union, (MEU), has announced a class action to compensate mineworkers who were illegally forced to work during the Christmas and Boxing Day holidays in 2019 at the Daunia Mine in central Queensland. In a press release, the union stated that if the suit is successful it could result in "millions of dollars in compensation". The case will be heard on November 9, 2026. BHP Operations Services had been found to have violated the National Employment Standard in its rostering workers during that period by a federal court. A court in November 2025 ordered the mining giant, to compensate 85 Queensland workers who were employed by its labour-hire division after finding that they had been illegally forced to work Christmas Day and Boxing Day 2019 without having a reasonable right of refusal. MEU General President Grahame Kelly stated that the union could pursue "further collective actions" on behalf of groups of mineworkers whose work was unlawfully forced to be done on public holidays. The miner has also been engaged in "protracted wage negotiations" with unions in Port Hedland where 150 workers walked off the job in what was 'the first major industrial action in over two decades. The talks are still unresolved. Hersh Oberoi is the global research director of Balfour Capital. He said that "the particular case is not what's most important. It's the pattern." A series of labour disputes is increasing pressure on BHP’s employment model, and strengthening unions’ bargaining positions. "In terms of compliance, the solution?is administrative and not expensive." The cumulative impact of labour disputes on BHP and its relationship with unions is the greater challenge. BHP didn't immediately respond to an inquiry for comment.
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Health ministry: Indonesian wildfires double respiratory infections in a single week
Data from Indonesia's Health Ministry showed that respiratory infections due to hazardous?wildfire air pollution have doubled in a little over a week. The Indonesian archipelago has been hit by fires that have ravaged vast stretches of peatland and forest. This has caused hazardous emissions, especially in the provinces of Sumatra, and Borneo. The wildfire season this year is the worst in 11 years, as "super El Nino" weather conditions cause temperatures to rise and droughts to be punishing. The country is responsible for one-third of global fire emissions. According to statistics presented at a press briefing by Widyawati, spokesperson for the health ministry, 113,336 people were suffering from respiratory diseases related to wildfires as of September 9. This is up from 50.891 in September 1. Widyawati (who goes by one name) said that more than 12 million people were exposed to the haze from fires in seven provinces. She said that nearly a million masks, hundreds of oxygen concentrator units, and thousands medical workers were deployed in the affected areas to help residents deal with pollution. The process of adding medical personnel and supplying various supplies continues. We will continue monitoring which areas need more healthcare workers, and dispatch them to those areas. Singapore and Malaysia also have unhealthy air quality due to?transboundary haze. Berton 'Panjaitan is the spokesperson for Indonesia’s disaster mitigation agency. He said that Japan sent three CH-47 Chinooks to help Indonesia fight fires. They began trial flights on Friday. He said that the helicopters will help with Indonesian military water bombing operations in West Kalimantan, Borneo. These operations are expected to begin either on Friday or on Saturday. Malaysia, which shares land borders with Indonesia on Borneo?has offered to help Indonesia with its aerial firefighting capability, according to a letter sent by the country's Environment Minister to his Indonesian counterpart. Panjaitan stated that Jakarta is conducting inter-agency consultation to discuss Malaysia's offer. According to government statistics, between January and July of this year, around 202,000 hectares or almost 500,000 acres were burned. Environmental group YKAN estimates that 600,000 hectares of land were also damaged by fires in August.
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Gold drops as dollar yields increase ahead of inflation data
Gold lost ground on Thursday as it erased earlier gains. This was a result of a stronger dollar and higher bond yields. Investors were also awaiting key U.S. data on inflation to get clues about the Federal Reserve’s interest rate path. Gold futures in the U.S. fell 0.7%, to $4,427.80 per ounce, while spot gold dropped 0.4%, to $4385.40 an ounce, by 1125 GMT. I think that part of the decline in metals prices is due to the U.S. Dollar coming back ahead of inflation data. Fawad Rasaqzada is a Forex.com market analyst. He said that the bond yields are expected to rise even further in the U.S. The U.S. Dollar Index rose, making greenback priced bullion costlier for overseas buyers. The markets are waiting for the U.S. producer prices?index due at 1230 GMT. Consumer price inflation will be released on Friday. The latest energy-induced inflation pressure has pushed global bond yields up. Benchmark 10-year Treasury yields have reached their highest level since 2023, as the U.S. Treasury's buyback program of longer-dated securities also disappointed. "Concerns are growing about the bond markets in the U.S. as long-dated yields continue to rise, despite the Treasury Buyback Program .... which is a mere 'drop in the ocean.'" Razaqzada said. Gold is typically under pressure from rising bond yields, as they increase the cost of holding a non-yielding investment. Most?economists surveyed by the Fed expect interest rates to remain unchanged at the September 15-16 meeting and for the remainder of the year. CME FedWatch Tool shows that traders still price in a 62% probability of a rate increase next week. On the geopolitical scene,?U.S. Donald Trump has said that he expects the war against Iran to end following the midterm elections in November. He also?threatened to attack again a site associated with Iran's nuclear program. Brent crude prices hovered around $100 per barrel. Silver spot fell by 2.2%, to $65.75 an ounce. Platinum dropped 3%, to $1.838.21. Palladium was down 2.3%, to $1.322.00.
Chile aims to have first massive sustainable air travel fuel factory by 2030
Chile aims to start producing sustainable aviation fuel (SAF) in a large plant by 2030 and use the fuel made from oils, fats, and biological and community waste for half of its aviation requires by 2050, a. government report released on Wednesday stated.
The 2050 SAF Roadmap report existed by Fernanda. Cabañas, program planner for Chile's public-private Clean. Flight task that intends to decarbonize the country's airline. market, at an aviation conference in Santiago.
Chile expects air traffic to double by 2040 and SAF is. important in assisting the country fulfill its decarbonization objectives,. the report said.
SAF can be blended with traditional jet fuel to minimize. emissions by up to 80% without engine adjustments.
More than 50% of carbon emissions reductions are going to. be done through SAF, Cabanas said in an interview on the. sidelines of the conference. It plays a primary function in our. net zero goals.
No price quotes are offered on just how much the factory would. produce in 2030, Cabanas stated.
Airlines are hurrying to acquire SAF to satisfy sustainability. objectives but supply is scarce and production approaches are expensive, so. the fuel costs 3 to 5 times more than traditional jet. fuel.
Cabañas noted strong competitors in the area for SAF. sources, and said the program had actually met regional forestry,. farming and hydrogen industry agents to determine. how much raw material they could provide.
A full research study on the practicality and economic projections of. how much SAF, and from what sources, Chile can produce is. anticipated in about six months.
Cristina Segura, head of the Concepcion University's. bioenergy department, said on a conference panel that her. department was aiming to produce the nation's first liter of. SAF.
U.S. President Joe Biden's administration is expected to. launch a preliminary environment model for the United States' SAF. aid model in the coming weeks. The aids to farmers and. other raw material providers are created to assist the U.S. produce 3 billion gallons of SAF, up from its present 15.8. million.
(source: Reuters)