2025-12-05 10:56
US central bank expected to cut rates next week Russia-Ukraine talks stall, affecting oil supply outlook OPEC+ production steady, geopolitical tensions influence prices NEW YORK, Dec 5 (Reuters) - Oil prices edged up nearly 1% to a two-week high on Friday on increasing expectations the U.S. Federal Reserve will cut interest rates next week, which could boost economic growth and energy demand, as well as geopolitical uncertainty that could limit supplies from Russia and Venezuela. Brent futures rose 49 cents, or 0.8%, to settle at $63.75 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 41 cents, or 0.7%, to settle at $60.08. Sign up here. Those were the highest closes for both crude benchmarks since November 18. For the week, Brent was up about 1% and WTI was up about 3%, marking a second straight weekly gain for both contracts. Investors digested a U.S. inflation report and recalibrated expectations for the Fed to reduce rates at its December 9-10 meeting. U.S. consumer spending increased moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lackluster labor market and the rising cost of living curbed demand. Traders have been pricing in an 87% chance that the Fed will lower borrowing costs by 25 basis points next week, according to CME Group's FedWatch Tool. Separately, top Chinese and U.S. officials held a call on Friday to discuss trade, including ongoing efforts to implement an agreement to their trade war. In other trade news, U.S. President Donald Trump said he will meet with the leaders of Mexico and Canada to discuss trade issues on Friday after they gather in Washington for the 2026 World Cup draw. Any talks that could reduce trade tensions between the U.S. and other nations could boost economic growth and energy demand. INVESTORS FOCUSED ON RUSSIAN, VENEZUELAN OUTPUT Investors also focused on news from Russia and Venezuela to determine whether oil supplies from the two sanctioned OPEC+ members will increase or decrease in the future. The failure of U.S. talks in Moscow to achieve any significant breakthrough over the war in Ukraine has helped to boost oil prices so far this week. "The lack of progress in the Ukrainian peace talks provides a bullish backdrop, but on the other hand, resilient OPEC production provides a bearish backstop. These two opposing forces make trading seemingly quiet," said Tamas Vargas, an oil market analyst at PVM. The Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban in a bid to reduce the oil revenue that helps finance Russia's war in Ukraine, six sources familiar with the matter said. OPEC+ includes the Organization of the Petroleum Exporting Countries and allies such as Russia. Any deal that could lift sanctions on Russia, the world's second-biggest crude producer after the U.S., could increase the amount of oil available to global markets. Russian President Vladimir Putin, on his first trip to New Delhi since Russia's 2022 invasion of Ukraine, on Friday offered India uninterrupted fuel supplies, eliciting a cautious response even as he and Indian Prime Minister Narendra Modi agreed to expand trade and defense ties. State refiners Indian Oil Corp (IOC.NS) , opens new tab and Bharat Petroleum Corp (BPCL.NS) , opens new tab have placed January orders for the loading of Russian oil from non-sanctioned suppliers due to widening discounts, trade sources with knowledge of the matter said. A Ukrainian drone attack caused a fire at Russia's Azov Sea port of Temryuk, the local emergencies center said on Friday. Temryuk handles liquefied petroleum gas (LPG), oil products and petrochemicals, as well as grain and other bulk food commodities. Markets also were bracing for a potential U.S. military incursion into Venezuela after Trump reiterated the U.S. would start taking action to stop Venezuelan drug traffickers on land "very soon." Rystad Energy said in a note that such a move could put at risk Venezuela's 1.1 million barrels per day of crude oil production, which goes mostly to China. https://www.reuters.com/business/energy/oil-prices-head-2-weekly-gain-fed-hopes-boost-market-venezuela-tensions-loom-2025-12-05/
2025-12-05 10:44
Dec 5 (Reuters) - The European Union should have taken action on rare earths 10 years ago, the boss of Swedish miner Boliden (BOL.ST) , opens new tab said on Friday, commenting on the European Commission's plan to fast-track 3 billion euros ($3.5 billion) into 25 key mineral projects. The importance of rare earth resources, powering everything from smartphones to electric vehicles, has been increasing as China, which produces more than 90% of the world's processed rare earths, recently imposed additional export restrictions. Sign up here. Europe's lack of self-sufficiency in critical raw materials is a vulnerability that needs to be addressed, despite the slow process involved in making significant changes, Boliden CEO Mikael Staffas told Reuters. He saw the EU executive's latest initiative as a sign that the 27-country bloc wanted to do something, but warned a lot more needed to be done. "The Critical Raw Materials Act that we got a while back was ... a small step, and I think that EU will need to do many more small steps if they want to have some more independence," Staffas said. Aurubis (NAFG.DE) , opens new tab CEO Toralf Haag said on Thursday that Europe's largest copper producer had so far not seen much impact from the act, implemented last year, though he still expects it to have positive longer-term effects on the sector. NO BOLIDEN PROJECTS UNDER EU'S NEW PLAN Some minerals produced by Boliden, like copper and nickel, are on the EU's key resources list. However, it sees little benefit from the new initiative, which focuses heavily on rare earths rather than other critical raw materials. "Right now everybody's talking about rare earths being super critical, and there we do not have any project," Staffas said, adding that the size of the planned grants was also relatively small. "Even if we were to get all the ... 3 billion of what the EU commission set up ... (it) would last us about two years in our regular investment," he said. Earlier on Friday, Boliden forecast capital spending of 15 billion Swedish crowns ($1.6 billion) for 2026. Boliden's project related to its Somincor mine extension in Portugal is on the initiative list introduced under the Critical Raw Materials Act, but none of its projects fit into the latest rare earths push. ($1 = 0.8577 euros) ($1 = 9.4056 Swedish crowns) https://www.reuters.com/world/china/eus-rare-earths-push-is-10-years-late-more-needs-be-done-boliden-ceo-says-2025-12-05/
2025-12-05 10:31
MOSCOW/SINGAPORE, Dec 5 (Reuters) - Russia's ESPO blend crude oil cargoes loading in December traded at a discount of $5-$6 a barrel to ICE Brent in Chinese ports, the weakest differential on record, four sources said on Friday. The discounts widened in China on falling demand after state refiners suspended buying because of recent Western sanctions while private players have also become more cautious. Sign up here. ESPO Blend oil cargoes had been placed at discounts of $0.50 to $1 a barrel below ICE Brent as recently as late October, traders said, The United States imposed sanctions on Russian oil suppliers Lukoil and Rosneft in October, leading to a fall in demand for Russian oil, even among main buyers India and China. Traders said that, unusually, some ESPO Blend cargoes loading in December have yet to be placed. https://www.reuters.com/business/energy/discounts-widen-russian-espo-blend-crude-oil-china-sources-say-2025-12-05/
2025-12-05 10:28
Heads of both companies reveal plans in separate interviews Saab CEO says move envisages side drones for current fighters Airbus CEO says talks unrelated to problems with FCAS project Saab doesn't rule out partnerships, must keep fighter capability PARIS, Dec 5 (Reuters) - Saab (SAABb.ST) , opens new tab and Airbus (AIR.PA) , opens new tab are discussing co-operation on unmanned warplane technology, senior executives of the companies told Reuters, a move highlighting surging interest in drones and evolving alliances in Europe's fractured defence industry. The project, revealed in separate CEO interviews at a European industry event this week, focuses on exploring unmanned aircraft to support the current generation of crewed combat jets like the Airbus-backed Eurofighter Typhoon and Saab Gripen E. Sign up here. But industry sources said that if successful, it could also provide a catalyst for broader co-operation on air power, especially if a troubled FCAS fighter project between France and Airbus' defence paymasters Germany and Spain falls apart. Asked whether Airbus had already been in touch with Saab about joining forces if FCAS fails, Saab CEO Micael Johansson said the companies already had good relations through Saab's Arexis Electronic Warfare system, equipping German Eurofighters. He added: "And we have discussed whether we can we do something on the unmanned side which complements our legacy fighters". Saab is also talking to other players but no decisions have been taken. "That could be an opportunity, but of course we are discussing," Johansson said on the sidelines of a Brussels forum hosted by Europe's ASD, the association which represents Europe's aerospace and defence industry. Asked at the same event about those remarks, Airbus CEO Guillaume Faury confirmed the previously unreported talks and said the companies had strong relations in electronics and missiles. "And we see good perspectives to continue to work with them on unmanned - that's something that we are discussing with them, which is unrelated to FCAS," he said. "We'll see what the programme will look like in the future. But today, the discussions we're having are directly between Airbus and Saab, unrelated to other problems." WINGMAN DEVELOPMENTS Both companies have joined in a surge of interest in futuristic uncrewed fighters known as collaborative combat aircraft (CCA) or loyal wingman, designed to support human-piloted warplanes. Airbus presented a model of its stealthy "Wingman" concept at the Berlin Airshow in 2024. Saab said last month it had received a new Swedish government order for studies on manned and unmanned warplanes, extending a previous contract dating from Sweden's 2023 decision to quit the UK-led Tempest fighter study, now part of the GCAP fighter jet project between Britain, Italy and Japan. Ministers from Germany, France and Spain are due to discuss splits in the FCAS programme next week. Industry sources have said Airbus has been in regular contact at CEO level with both Saab and GCAP member BAE Systems (BAES.L) , opens new tab to discuss options. The 100-billion-euro Future Combat Air System (FCAS), floated more than eight years ago, has been stuck in disputes between the companies involved over workshare and technology. Johansson declined to discuss any implications for Saab of the in-fighting within FCAS but said that in general terms, "we don't speak about Sweden replacing someone or something". Analysts say decisions over the next generation of fighters will shape the defence industry and its alliances for decades. Sweden remained independent during the last round of fighter developments, creating the Gripen as France built the Rafale and Britain, Germany, Spain and Italy co-developed the Eurofighter. For the next generation of warplanes, the cards have been reshuffled, with France joining Germany and Spain in FCAS, also known by its French acronym SCAF, and Britain merging its efforts with Japan inside GCAP, which is open to new members. Sweden has yet to show its hand, having initially partnered with Britain and now conducting its own research on a successor to the Gripen with political decisions due in 2030. Johansson said he thought decisions could come even earlier, "maybe 2028". Johansson said Saab would not relinquish its seat in the small club of global arms firms capable of developing fighters. "I'm not excluding any sort of partnerships going forward. That could absolutely be a way forward, but with retaining OEM (manufacturer) capability on the fighter side: why would we let go of that?" https://www.reuters.com/business/aerospace-defense/saab-airbus-co-operate-unmanned-fighter-technology-2025-12-05/
2025-12-05 09:45
LONDON, Dec 5 (Reuters) - Regulators at the Bank of England and the Financial Conduct Authority on Friday announced a package of measures aimed at supporting Britain's mutuals sector. The plans seek to speed up application processes, review credit union regulations, and make it easier for mutuals to co-operate. Sign up here. "Mutuals are a vital part of our financial system. Today’s report examines how the financial mutuals sector is growing, and what we can do to help it thrive in the period ahead," Sam Woods, CEO of the PRA and deputy governor at the BoE, said. https://www.reuters.com/business/bank-england-fca-announce-plans-support-growth-mutuals-sector-2025-12-05/
2025-12-05 09:33
MUMBAI, Dec 5 (Reuters) - A potential artificial intelligence bubble will deflate faster than past tech cycles but give way to an even stronger rebound as corporate adoption catches up with infrastructure spending, the head of Japanese IT company NTT DATA Inc. said. Despite worries around supply chains, the direction of travel is clear, CEO Abhijit Dubey said in an interview with the Reuters Global Markets Forum , opens new tab. Sign up here. "There is absolutely no doubt that in the medium- to long-term, AI is a massive secular trend," he said. "Over the next 12 months, I think we're going to have a bit of a normalisation ... It'll be a short-lived bubble, and (AI) will come out of it stronger." With demand for compute still running ahead of supply, "supply chains are almost spoken for" over the next two to three years, he said. Pricing power is already tilting toward chipmakers and hyperscalers, mirroring their stretched valuations in public markets, he added. AI has triggered the biggest technological shake-up since the advent of the internet, fuelling trillions of dollars of investment and eye-watering equity gains. But it has caused shortages of memory chips, drawn regulatory scrutiny, and created growing unease over the future of work. Dubey, who is also the firm's chief AI officer, said his company has begun rethinking recruitment strategies as AI reshapes labour markets. "There will clearly be an impact ... Over a five- to 25-year horizon, there will likely be dislocation," he said. However, he added that NTT DATA continues to hire across locations. Speakers at the Reuters NEXT conference in New York discussed how AI may upend work and job growth. AI startup Writer Inc.'s CEO May Habib said customers are focused on slowing headcount growth. "You close a customer, you get on the phone with the CEO to kick off the project, and it's like, 'Great, how soon can I whack 30% of my team?'," she said. Still, a PwC survey of the global workforce released in November suggests the reality of generative AI usage has yet to match boardroom expectations. Daily use of GenAI remains "significantly lower" than widely touted by executives, PwC said, even as workers with AI skills commanded an average wage premium of 56% — more than double last year's figure. PwC also flagged a widening skills gap, with about half of non-managers reporting access to training resources, compared with roughly three-quarters of senior executives. (Join GMF on LSEG Messenger for live interviews:) (This story has been refiled to remove the outdated advisory note) https://www.reuters.com/world/asia-pacific/ai-bubble-be-short-lived-rebound-stronger-ntt-data-chief-says-2025-12-05/
