2026-01-30 12:24

NIPEPE, Mozambique, Jan 30 (Reuters) - Mozambique's President Daniel Chapo opened a 200,000 metric ton per year graphite processing plant at a Chinese-owned mine on Friday, as the south-east African country boosts output of the battery mineral. Annual global mined graphite production is 1.6 million metric tons, the United State Geological Survey estimates and Mozambique is one of the world's top producers of the mineral, which is an excellent conductor of heat and electricity and is used in batteries for electric vehicles and mobile phones. Sign up here. China has the world's largest graphite reserves and dominates its mining and processing as well. Chapo said Mozambique, where French oil major TotalEnergies (TTEF.PA) , opens new tab is resuming construction of a $20 billion liquefied natural gas project, was working to make the most of its natural resources. "Today we are entering the world's industrial map," he said, adding: "We are no longer a supplier of raw materials, but a producer, processor and exporter of materials". Chinese company DH Mining, which started work on the graphite mine in Nipepe in 2014, said it had invested $200 million on mining and processing facilities. DH Mining director Sang Shong said the venture, in Mozambique's northern province of Niassa, currently employs 890 workers and this is set to rise to 2,000 in its second phase. Australia's Syrah Resources (SYR.AX) , opens new tab and Dutch metals firm AMG(AMG.AS) , opens new tab have graphite mining operations in neighbouring Cabo Delgado province. Another Australian group, Triton Minerals (TON.AX) , opens new tab is also advancing its Ancuabe project in Cabo Delgado. https://www.reuters.com/business/energy/mozambiques-president-opens-chinese-owned-graphite-processing-plant-2026-01-30/

2026-01-30 12:20

LONDON, Jan 30 (Reuters) - U.S. President Donald Trump on Friday said he had picked former Federal Reserve governor Kevin Warsh as the next head of the Federal Reserve, when Chair Jerome Powell steps down in May. The nomination caps a months-long process that often resembled a public audition as Warsh, White House economic advisor Kevin Hassett and other top contenders - including sitting Fed governor Christopher Waller and Wall Street insider Rick Rieder - appeared regularly on television to tout their credentials and showcase their thoughts about the economy and Fed policy. Sign up here. The dollar trimmed earlier gains, while U.S. Treasury yields were higher and stock futures pointed to a weak open on Wall Street. COMMENTS: GARY PAULIN, INTERNATIONAL CHIEF INVESTMENT STRATEGIST, NORTHERN TRUST ASSET MANAGEMENT, LONDON “What he might want to do and what he actually does might be different things, given the way decision-making is done within the Federal Reserve” “Two things market will pick up on is his commentary on wanting ‌to reduce the Fed’s balance sheet, footprint in the economy. People question what does that mean for asset pricing and for liquidity.” “The counter to that will be his focus on intermediary levers, particularly the banks and how, if we’re for not using the central bank as a primary tool for injecting liquidity in the system, how do we maintain liquidity by using the banks in a more efficient way? So reforms, as they relate to the banks, will be a key focus”. PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK "I don't want to say it's a total surprise... he was considered a hawk, but recently he seems to have aligned himself with Trump, so it's kind of difficult to assess how the market is going to accept this nomination." "We just have to see whether or not he will be influenced by the White House. My guess is that he will not and that he will look very carefully, he will be somewhat balanced in in terms of inflation, labour markets. Less determined than Powell, but not that far apart." BENJAMIN FORD, STRATEGIST, ‌MACRO HIVE, LONDON "For now, we don't read too much into the big headline. Instead, we continue to point to our dollar framework: near-term G10 FX outperformance as vols climb. Then, once vols settle, it'll be a rotation back to favoured emerging-market trades." ELIAS HADDAD, GLOBAL HEAD OF MARKETS STRATEGY, BROWN BROTHERS HARRIMAN, LONDON "His view on the balance sheet and what it means for rates suggest that the yield curve in the U.S. could steepen further as short rates fall, while longer-term rates perhaps stay sticky, or even drift higher, because of lack of U.S. fiscal credibility. In terms of the dollar impact, it's neutral and for equity markets, it's also neutral. He still favours lower rates, so that's supportive for risk assets. But on the other hand, he wants to significantly reduce the Fed's balance sheet, which has been a big support for this melt-up in asset prices." IPEK OZKARDESKAYA, SENIOR ANALYST AT SWISSQUOTE BANK, SWITZERLAND “There ‍is a general sense of hawkishness in the market following the emergence of Kevin Warsh’s name. He is viewed as less dovish than many of the other candidates and is expected to favour fewer rate cuts, which explains why the dollar strengthened initially. Yields also moved higher, though what is interesting is that the two‑year Treasury yield — which best captures expectations for Fed policy — has softened this morning. That suggests the initial moves were largely a knee‑jerk reaction to the headline, and that first impression is now beginning to fade." "Given that several names floated previously were extremely dovish and closely aligned with the White House’s preference for aggressive rate cuts despite the data, Warsh’s candidacy represents a relatively hawkish shift for the Fed’s leadership. It is not necessarily a relief, ⁠but it does mark a more disciplined and realistic development.” FIONA CINCOTTA, SENIOR MARKET ANALYST, CITY INDEX, LONDON "We have seen a little bit of volatility surrounding the expectations or in the anticipation of the decision. Warsh typically has fame for being of a more hawkish stance, but more recently has moved more in line with Trump and (taken) ‍a slightly more dovish take. So the market is just now waiting to see what this might mean as far as the outlook for the Federal Reserve policy is concerned." "At the end of the day, the Fed has to remain data dependent and it has to remain independent. And I don't think that will change under Kevin Warsh. Although we're ‌talking about a change ‌at the head of the Fed, this is a committee and if the data doesn't show the need to be adopting a more dovish stance, then it's going to be very difficult for one person to drive that change." KIRSTINE KUNDBY-NIELSEN, ANALYST, DANSKE BANK, COPENHAGEN "I would say it's dollar positive. He's an experienced central banker with previous Fed experience. It alleviates some of the nervousness should we have got a Fed chair who was more politicised or that was a lot more dovish. In that sense, it is pricing out some of the risk that it would have been someone who's been clear in communicating how dovish they would be, like (Stephen) Miran." PHILIP SHAW, CHIEF ECONOMIST, INVESTEC, LONDON “We heard serious rumours about Warsh taking over overnight. There doesn't really seem to be much of a case to expect further market reaction. That was all but done last night. So it's now a case of just assessing where Warsh stands on various factors, including rates and the balance sheet. He does not have a reputation for being an ⁠out-and-out dove at all. Of course, he's a former Fed Governor and he's known ⁠within the UK for conducting an analysis of (Bank of England rate-setting transparency 10 years ago or so. So he is well respected.” “The U.S.'s fiscal position is on an unsustainable path and Warsh's appointment doesn't necessarily stop President Trump from interfering with either the Fed or other areas of the U.S. government machinery. The risks of a lower dollar remain, (although) those risks are probably reduced with the news this afternoon.” CHRIS BEAUCHAMP, CHIEF MARKET ANALYST, IG MARKETS, LONDON "We will see from here because it's one thing to appoint somebody and it's an entirely different to actually be chairman of the Federal Reserve." "The president wants low rates to be the main priority.... the problem is that it could be that his (Warsh's) position becomes just as difficult. The president doesn't change and it's recognition that the U.S. finds itself in a ‍very difficult position right now in terms of inflation remaining stubborn, but economic data, as we should see in payrolls beginning to show signs of weakness with the unemployment rate moving higher." KALLUM PICKERING, CHIEF ECONOMIST, PEEL HUNT, LONDON "Warsh...is somewhat of a surprise pick, not being among the recently speculated frontrunners. That's why we got stocks and Treasuries coming back a little bit on the news earlier and the dollar picked up a little bit. "In the end, I don't think that the whole debate around whether you get a hawkish or a dovish Fed chair matters as much as the market thinks. Mainly because I think the U.S. is going to see inflation mostly in the safe zone this year, which means the Fed should be free to focus on the employment side of its mandate." "And so even if we would have got the dove or the hawk, in the end, the difference is their view on inflation, not whether or not they should support employment. My ‍hunch is they're going to cut a little bit anyway just to try and support economic activity." NICK KENNEDY, CURRENCY STRATEGIST, LLOYDS, LONDON "Warsh is my preferred candidate but it didn't look promising for a while." "From a policy perspective, his track record is more on the hawkish side and he is academically aligned with the administration on wanting a smaller balance sheet. "In the interview process you have to be aligned with what Trump wants on policy rates. I don't think this is a role you would want to step into if you were in conflict with that." "So, that idea that this is good for the dollar is going to be short-lived." https://www.reuters.com/business/view-trump-names-warsh-next-federal-reserve-chair-2026-01-30/

2026-01-30 12:11

MUMBAI, Jan 30 (Reuters) - India's foreign exchange reserves (INFXR=ECI) , opens new tab rose to a record high of $709.41 billion as of January 23, compared with $701.36 billion a week earlier, the Reserve Bank of India said on Friday. Forex reserves have risen sharply over the past two weeks as the central bank conducted forex swaps to infuse rupee liquidity into the domestic markets and the value of its gold holdings rose. Sign up here. The central bank's gold holdings are now valued at $123 billion, jumping $5.6 billion over the week. The central bank has been actively intervening by selling dollars to protect the rupee, which is trading at record lows. The impact of the dollar sales, however, has been offset by the rising value of assets such as gold and due to longer-term forex swaps. "Despite the Reserve Bank of India's interventions to support the rupee, FX reserves have been growing due to the sharp rise in gold prices and the value of non-dollar assets due to appreciation in currencies like the euro and Japanese yen," said Sakshi Gupta, principal economist at HDFC Bank. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves. Foreign exchange reserves include India's reserve tranche position in the International Monetary Fund. FOREIGN EXCHANGE RESERVES (in million U.S. dollars) --------------------------------------------------------- Jan 23 Jan 16 2026 2026 --------------------------------------------------------- Foreign currency assets 562,885 560,518 Gold 123,088 117,454 SDRs 18,737 18,704 Reserve Tranche Position 4,703 4,684 ---------------------------------------------------------- Total 709,413 701,360 ---------------------------------------------------------- Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx , opens new tab) ((India Headline News Team; +91 80 6749 1310)) https://www.reuters.com/world/india/indias-forex-reserves-rise-record-high-70941-billion-central-bank-data-shows-2026-01-30/

2026-01-30 11:54

Republican senator's opposition points to tough Senate confirmation fight Nomination of Warsh follows months of public auditions Warsh has advocated for steep rate cuts, Fed 'regime change' WASHINGTON, Jan 30 (Reuters) - President Donald Trump on Friday chose former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell's leadership term ends in May, giving a frequent Fed critic a chance to put his idea of monetary policy "regime change" into practice just as the White House pushes for more control over the setting of interest rates. Warsh, should he survive a possibly contentious confirmation process in the Senate, is set to take the ‌helm of the world's most important central bank, an institution that determines the cost of credit for the U.S. and beyond and which has been in Trump's crosshairs since his return to the White House last year. In his earlier stint at the Fed, Warsh had a reputation as an inflation hawk, but he now advocates for rates to be lowered. Sign up here. "I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is 'central casting, and he will never let you down," Trump said in a social media post announcing his latest move to put his stamp on a Fed he persistently criticizes for not caving to his demands for deep reductions in borrowing costs. Trump repeated his "central ‌casting" quip in an Oval Office event later on Friday, and a source close to Warsh said the 55-year-old's appearance was a factor in Trump's decision to pick him from a field of four finalists. Trump thinks Warsh looks like a central banker, the source said, and has told Warsh on more than one occasion, "You're a good-looking guy." The decision also followed a lobbying campaign by Warsh allies, including his father-in-law and Trump booster Ron Lauder and billionaire investor Stanley Druckenmiller, the source said. "A lot of people weighed in with the president on his behalf." Trump said it would be inappropriate to ask Warsh whether he would cut interest rates, saying he wanted to keep his nominee "nice and pure." ‍But the president said he was confident Warsh was inclined to lower them. U.S. stocks closed lower on the day after the announcement and in the wake of an inflation report that suggested price pressures could undercut any support for rate cuts among many of the Fed policymakers Warsh will be tasked with leading. The dollar strengthened and U.S. Treasury yields were mixed. NEXT STOP IS SENATE BANKING COMMITTEE The next step in the process is confirmation by a closely divided Senate. The Fed has long been seen as a stabilizing force in global financial markets due in no small part to its perceived independence from politics, and ⁠Trump's escalating efforts to test that independence will be a key issue through the approval process. One key Republican on the Senate Banking Committee set to review the nomination repeated an earlier vow not to support any nominee to the Fed as long ‍as Trump's Department of Justice continues with a criminal probe of Powell that became public earlier this month. "My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ's inquiry into Chairman Powell is fully and ‌transparently resolved," Senator Thom ‌Tillis of North Carolina said in a post on X. Trump told reporters on Friday he was open to waiting for Warsh's confirmation until Tillis, who is not seeking reelection this year, left the Senate. "If he doesn't approve, we just have to wait until somebody comes in and we'll approve it, right?" Trump said, calling the North Carolina lawmaker an "obstructionist." Other Republican senators on the panel, however, said Warsh would be good for Fed independence. "No one is better suited to steer the Fed and refocus our central bank on its core statutory mandate," Senator Bill Hagerty said in a social media post, and Senate Banking Committee Chair Tim Scott said he looked forward to a "thoughtful, timely confirmation process." Powell's term as Fed leader ends in May, but Trump's pressure campaign has also ⁠opened the door to the possibility that Powell, who called ⁠the criminal probe a pretext to pressure the central bank into setting monetary policy as the president wishes, may opt to stay on as a Fed governor in a bid to safeguard it from political capture. Trump has also tried to force out Fed Governor Lisa Cook in a battle now before the Supreme Court that, if successful, would mark the first time a president has ever fired a U.S. central bank policymaker. WARSH FAVORS BROAD OVERHAUL OF CENTRAL BANK While Warsh is no White House insider, he has been a confidant of the president and a guest at the president's Florida estate, and looks poised to push many ‍of Trump's priorities as a "shadow" Fed chief until Powell's tenure in the top job ends in mid-May. A lawyer and distinguished visiting fellow in economics at Stanford University's Hoover Institution, Warsh has said he believes the president is right to press the Fed for steep rate cuts, and has criticized the central bank for underestimating the inflation-busting potential of productivity growth supercharged by artificial intelligence. He has also called for a broad overhaul - "regime change" in his words - of the central bank that would slim its balance sheet and ease bank regulations. As a Fed governor from 2006 to 2011, Warsh's familiarity with Wall Street executives and investors made him a chief liaison to the financial community for then-Fed Chair Ben Bernanke during the 2007-2009 financial crisis. It is not clear how ‍Warsh's nomination may affect the trajectory of rates in the short term. The Fed's three rate cuts in 2025 brought its benchmark interest rate to the 3.50%-3.75% range. Earlier this week, citing stronger growth and a stabilizing labor market, it left rates on hold and signaled a pause ahead; markets for now don't expect another rate cut until June, when Powell's successor is expected to be in place. https://www.reuters.com/world/us/trump-picks-former-fed-official-warsh-run-fed-2026-01-30/

2026-01-30 11:52

Jan 30 (Reuters) - Power demand on the largest U.S. electric grid on Friday is expected to peak at about 141 gigawatts, just shy of the all-time winter record on the PJM Interconnection, according to the operator's latest seven-day forecast. PJM's performance has been closely watched partly because of its heavy concentration of data centers, whose power consumption is climbing faster than the grid can put more generation online. Sign up here. The operator, which manages the flow of electricity for 67 million people in 13 Midwest and Mid-Atlantic states and Washington, D.C., has so far navigated a snowstorm and 10 days of frigid weather without ordering any rolling blackouts. Generation outages on the grid were expected to be about 15 gigawatts on Friday, or around 11% of total committed capacity. Earlier in the week, generation outages topped 22 GW, according to PJM data. Outages for the weekend were expected to range from 11 GW to 14 GW, according to PJM's forecast. Earlier this week, PJM predicted its all-time winter record for demand would be smashed on Friday, forecasting 148 GW of electricity consumption. PJM's record for the season is 143.7 GW, set in January 2025. But PJM ratcheted down those forecasts as temperatures in some parts of its territory were warmer than expected. Data centers were also encouraged by the U.S. Department of Energy to use back-up generators, which would ease the strain on PJM's resources. On Friday morning, spot wholesale electricity prices in PJM were about $173 per MWh, far below spikes seen earlier in the week that topped $3,000 per MWh. PJM and electric grids in New York and New England have had to navigate congested high-voltage lines throughout their territories. Temperatures hovering above 0 degrees Fahrenheit (-18 Celsius) this week have caused power line overloads from a surge in electricity demand. Cold weather also cut the capacity of power plants in PJM's territory. https://www.reuters.com/business/energy/demand-largest-us-electric-grid-forecast-close-winter-record-2026-01-30/

2026-01-30 11:45

Analysts predict volatile trading in 2026 due to gas price correlation EU carbon prices expected to rise in the long term with reduced free allowances Benchmark EU carbon contract hit a two-and-a-half-year high in January LONDON, Jan 30 (Reuters) - Analysts raised slightly their forecasts for prices in the European Union's carbon market for the next couple of years while predicting volatile trading in 2026 as the benchmark contract moves with Europe’s gas prices. The EU's Emissions Trading System (ETS) is Europe's main tool for curbing emissions. Under it, manufacturers, power companies and airlines need to buy a CO2 allowance for every ton of CO2 they emit. Sign up here. According to a survey of 10 analysts, EU allowances are forecast to average 92.65 euros per metric ton in 2026 and 107.29 in 2027, up a little from the 91.11 euros and 106.94 euros forecasts made in October. The market has had a volatile start to 2026, with the benchmark EU carbon contract trading around 84 euros/metric ton, having hit an intraday high of 93.80 on January 15, a near two-and-a-half year high. “In the short term, CO2 prices in EU will continue to be correlated to gas prices, but as new industrial players will phase out from free allowances, we will see demand shifting towards industrial needs and prices following the cost of decarbonization technologies,” said Noemi Zurcher, Carbon Markets & Policies Senior Data Analyst at Rystad. Benchmark European gas prices have soared around 40% this year amid dwindling stock levels and as freezing temperatures in the United States hit production and exports of liquefied natural gas. The EU is gradually reducing the free emission allowances given to industries under the ETS, requiring them to increasingly buy allowances instead, strengthening the financial incentive to cut emissions. Under the ETS, the cap on the emissions that a sector, or group of sectors, can produce also decreases over time. “We expect European carbon prices to rise sharply over the next few years (from 2027) on tighter annual market balances,” said Haege Fjellheim, head of carbon analysis at Veyt. The average EUA forecast for 2028 was 110.90 euros/ton, little changed from the 110.20 euros/ton forecast in October. https://www.reuters.com/sustainability/climate-energy/analyst-eu-carbon-price-forecasts-edge-up-volatile-start-year-2026-01-30/