2026-01-26 12:36
Jan 26 (Reuters) - Shares of USA Rare Earth (USAR.O) , opens new tab jumped more than 30% before the bell on Monday as the miner unveiled a proposal for $1.6 billion in funding from the U.S. Department of Commerce. The announcement followed a Reuters report over the weekend that the Trump administration was taking a 10% stake in the miner as part of the debt-and-equity investment package. Sign up here. The move is the latest by Washington to deepen its presence in critical minerals, after last year's equity stakes in MP Materials (MP.N) , opens new tab, Lithium Americas (LAC.TO) , opens new tab and Trilogy Metals (TMQ.TO) , opens new tab. USA Rare Earth said the letter of intent for the deal includes $277 million in proposed federal funding and $1.3 billion in a proposed senior secured loan under the CHIPS Act. The miner also said it had raised a private investment in public equity (PIPE) for $1.5 billion, anchored by Inflection Point. The PIPE deal, along with the proposed government investment, would bring the total amount to $3.1 billion. USA Rare Earth has been developing a mine in Sierra Blanca, Texas, with Texas Mineral Resources (TMRC.PK) , opens new tab, that is slated to open by 2028. It has a magnet manufacturing facility in Stillwater, Oklahoma, which is expected to launch later this year. A senior Trump official said last month the administration was planning more "historic deals" with the U.S. mining sector. Rare earths, a group of 17 elements, or the magnets which they are sometimes made into are used in everything from iPhones and washing machines to F-35 fighter jets, as well as in electric vehicles, medical equipment and military systems. Shares of rare earths miners surged in 2025, driven by tightening global supplies and a worldwide race to secure the critical mineral resource to curb reliance on China. Trump's recent gambit of buying resources-rich Greenland further fueled gains in rare earths stocks this year. Shares of USA Rare Earth were last up 20.5% before the bell, positioning the stock to build on its more than 100% jump so far in January. U.S.-listed shares of Trilogy Metals, Lithium Americas and MP Materials also rose between 3% and 8%. https://www.reuters.com/business/energy/usa-rare-earth-shares-surge-report-trump-administration-investment-2026-01-26/
2026-01-26 12:30
Rand last traded at 16 to the dollar in June 2022 Government bonds and stocks also strong performers Investors upbeat about South African economic outlook Close rate decision expected on Thursday JOHANNESBURG, Jan 26 (Reuters) - The South African rand hit its strongest level against the dollar in 3-1/2 years on Monday, boosted by record precious metal prices and optimism about the country's economic outlook. The rand struck 16 per dollar for the first time since June 2022, before slipping slightly to trade at 16.03 at 1200 GMT. Sign up here. The global gold price surged to an all-time high above $5,100 an ounce as central banks and investors sought refuge from geopolitical risks and market volatility. Gold and other precious metals like platinum , which also set a record high on Monday, are major South African exports. Their rally helped the rand gain about 14% against the dollar last year and more than 3% so far this year. INVESTOR APPETITE TOWARDS SOUTH AFRICA HAS TURNED South Africa's economy struggled with slow growth and rising debt for more than a decade until last year, when investor appetite suddenly improved as economic reforms started to bear fruit and the fiscal trajectory brightened. Fund managers say there has been a broad re-rating of South African assets, after years of underperformance. Government bonds have been among the strongest performers, with benchmark 10-year yields falling to their lowest levels since 2019 and slowing inflation a key tailwind. "We've got one of the highest real yields in the emerging‑market universe, which makes South Africa stand out for global investors," said Malcolm Charles, a portfolio manager at Ninety One. U.S. bank Goldman Sachs (GS.N) , opens new tab is upbeat on the outlook for South African stocks, saying local interest rate cuts should support economic sectors that have so far lagged. The Johannesburg Stock Exchange's All-Share Index (.JALSH) , opens new tab gained 1.3% on Monday, reaching another record high. The benchmark 2035 government bond firmed, as the yield fell 4.5 basis points to 8.1%. THURSDAY'S RATE DECISION A CLOSE CALL Investors' focus will soon shift to South Africa's first interest rate announcement of 2026 on Thursday, which could be a close call. Eighteen of 26 analysts polled by Reuters expect the central bank to leave its repo rate unchanged, but eight predict a 25-basis-point rate cut to 6.50% (ZAREPO=ECI) , opens new tab. Some think the bank will take a cautious approach given stronger growth data that reduce the urgency of cutting rates, while others say the rand's sharp move higher and well-contained price pressures create scope for further easing. Inflation edged up to 3.6% year-on-year in December from 3.5% in November (ZACPIY=ECI) , opens new tab, data showed last week, staying within the 1‑percentage‑point tolerance band of the central bank's 3% target. https://www.reuters.com/world/africa/gold-prices-push-south-africas-rand-closer-16-handle-2026-01-26/
2026-01-26 12:28
Record $18 billion profit remittances in December, central bank data shows New 10% tax on profit remittances starts in January under Lula's administration Brazil's current account deficit stable at 3.02% of GDP, financed by direct investment BRASILIA, Jan 26 (Reuters) - Brazilian companies sent a record amount of profits abroad in December, central bank data showed on Monday, potentially anticipating a new tax on remittances that took effect this year. Corporate profit and dividend remittances totalled $18 billion, more than double the $8.8 billion sent overseas a year earlier - the largest figure on record in the central bank's monthly series, which began in 1995. Sign up here. Reflecting the surge, reinvested earnings in the country posted net outflows of $11.4 billion, meaning remittances exceeded profits earned in the month, another record. From January, President Luiz Inacio Lula da Silva's administration began levying a 10% withholding tax on all profit remittances abroad. The measure is part of a fiscal package to offset the expansion of income tax exemptions for workers earning up to 5,000 reais ($948.06) a month, another policy that took effect this month and is a key plank of leftist Lula's re-election agenda. At a press conference, central bank statistics chief Fernando Rocha said the surge in dividend remittances was the main factor behind foreign direct investment posting a net outflow of $5.2 billion in December, versus a $1 billion inflow expected in a Reuters poll. Rocha said the data could point either to tax anticipation by firms or to strong corporate profits in Latin America's largest economy last year. For 2025 as a whole, FDI ended at 3.41% of gross domestic product, broadly in line with the 3.39% recorded in 2024. STABLE CURRENT ACCOUNT Brazil's current account deficit was also broadly unchanged from the previous year, reversing a deterioration seen earlier in 2025 and remaining largely financed by direct investment. The country closed the year with a current account deficit of 3.02% of GDP, compared with 3.03% in 2024. Earlier in the year, the deficit had widened to nearly 3.7% of GDP on a rolling 12-month basis, reflecting a narrower trade surplus as imports outpaced exports amid strong domestic demand. Toward year-end, clearer signs of cooling emerged as the central bank maintained an aggressive stance, keeping interest rates at a nearly 20-year high of 15% to steer inflation back toward its 3% target. Policymakers meet again on Tuesday and Wednesday, with markets widely expecting rates to be kept unchanged for a fifth straight meeting. In December alone, the current account deficit came in at $3.4 billion, narrower than economists' expectations of a $5.3 billion shortfall, largely due to a strong $8.8 billion trade surplus, more than double the level seen a year earlier. ($1 = 5.2739 reais) https://www.reuters.com/world/americas/brazil-current-account-deficit-ends-2025-steady-covered-by-fdi-2026-01-26/
2026-01-26 11:51
Spot gold up nearly 18% so far this year Spot silver scales record peak of $117.69/oz Societe Generale sees gold reaching $6,000/oz by year-end Jan 26 (Reuters) - Gold prices marched to record levels above $5,100 on Monday, as investors sought a safe haven amid international political tension, and silver and platinum also scaled all-time highs. Spot gold was up 2% at $5,077.22 an ounce by 1:31 p.m. ET (1831 GMT) after hitting a record $5,110.50. U.S. gold futures for February delivery settled 2.1% higher at $5,082.50. Sign up here. "Gold prices continue to be supported by elevated geopolitical and economic uncertainty. Central banks remain strong buyers as they diversify foreign exchange reserves and reduce reliance on the U.S. dollar," said Ryan McIntyre, president at Sprott Inc. "In addition, investor inflows into physically backed exchange‑traded funds have resumed, with holdings up approximately 20% year over year," McIntyre added. TRUMP'S 100% TARIFF THREAT ON CANADA In the latest geopolitical flare‑up, U.S. President Donald Trump said on Saturday he would impose a 100% tariff on Canada if it follows through on a trade deal with China. For precious metals this year, the major drivers are going to be "Trump and Trump," said Adrian Ash, head of research at online marketplace BullionVault. "A wave of new first-time investing is driving this move in precious metals. It's led by private investors across Asia and Europe, rushing to build their personal holdings of gold and silver." The possibility that a coordinated currency intervention by U.S. and Japanese authorities could be imminent was another focus of investor attention. At the same time, this week's Federal Reserve meeting, when the central bank is expected to hold rates steady, is overshadowed by a Trump administration criminal investigation of Fed chairman Jerome Powell. Trump has placed pressure on Powell to lower interest rates. That would support non-yielding gold, which has risen nearly 18% so far this year after gaining 64% in 2025. Last year, gold breached major milestones, including $3,000/oz and $4,000/oz for the first time. GOLD MAY REACH $6,000/OZ BY YEAR-END, SOME ANALYSTS SAY Analysts see room for further upside momentum. Societe Generale anticipate gold will reach $6,000/oz by year‑end, though they caution this may be a conservative estimate with scope for further gains. Meanwhile, Morgan Stanley said the rally could continue, highlighting a bull‑case target of $5,700. Spot silver scaled a new record high of $117.69 an ounce and was last up 10.2% at $113.46. Prices broke the $100 mark on Friday as retail investor and momentum-driven buying added to tightness in physical markets for the precious and industrial metal. "Momentum is strong, with Chinese silver prices at a notable premium to London prices, indicating further gains in the short term are possible. However, such high prices should reduce industrial demand," said UBS analyst Giovanni Staunovo. Spot platinum rose by 1.8% to $2,816.38 an ounce after touching a record $2,918.80 while spot palladium climbed by 5.9% to $2,127.68, the highest levels since 2022. https://www.reuters.com/business/finance/gold-races-5100-record-peak-safe-haven-demand-2026-01-26/
2026-01-26 11:46
PRAGUE, Jan 26 (Reuters) - Czechs have collected more than $6 million in just five days in a grassroots fundraising effort to buy generators, heaters and batteries for Ukraine, where hundreds of thousands are freezing in subzero temperatures after Russian attacks on power plants. Ukrainian engineers have been working around the clock in hazardous conditions for weeks since Russia escalated its attacks on Ukraine's grid during a cold snap that has seen temperatures plunge to minus 20 degrees Celsius (minus 4 F). Sign up here. Ukrainian President Volodymyr Zelenskiy declared an energy emergency after the Russian strikes. The European Commission said on Friday it would send 447 emergency generators worth 3.7 million euros ($4.39 million). The darekproputina.cz initiative has been collecting donations for Ukraine since Russia's full invasion in 2022, including campaigns to buy a Blackhawk helicopter and a tank as well as drones, ammunition and medical supplies worth more than 55 million euros. Its latest effort raised 126 million crowns ($6.16 million) from 74,745 donors from last Wednesday until Monday morning, and another roughly 15 million crowns is on the way from donors, organiser Martin Ondracek told Reuters. "Over the weekend we booked two generators - the diesel-fuelled boxes that come on a truck - for 8 million crowns each that should go to two smaller health facilities," Ondracek said. The initiative cooperated with three funds in Ukraine to avoid lengthy logistical and customs delays but is also in talks with Czech suppliers as not everything is available on the spot, he added. "There are about 30 people working on this, we need to spend the money as fast as possible," Ondracek said, adding there was a particular demand for chemical heaters and batteries. "Batteries are key for people to charge when power is available so they have at least some power for a kettle or charging phones." ($1 = 20.4710 Czech crowns) ($1 = 0.8429 euros) https://www.reuters.com/world/czechs-fundraise-over-6-mln-buy-generators-freezing-ukraine-2026-01-26/
2026-01-26 11:40
Jan 26 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Gold seemed unstoppable on Monday as it topped $5,000 per ounce for the first time ever, vaulting more than 80% over the past 12 months. What’s the trigger for the latest surge? Take your pick from the potential drivers: a falling dollar, a fracturing world order, renewed trade tensions, worries about Fed independence, and a higher inflation horizon. Central bank buying and retail speculation also continue to boom. So, looking forward, gold and precious metals – with silver at new records too – appear likely to remain the haven and hedge of choice. I’ll get into all that and more below. But first, check out my latest column on why this week's Fed policy meeting could mark a key flashpoint in the escalating battle for central bank independence. And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. GOLD-PLATED FEAR The latest spike in the gold price comes after a torrid week of geopolitics surrounding Greenland, capped by President Trump’s abrupt U-turn on military and trade threats against the Arctic island and its European backers, respectively. While the about-face has lowered tensions, it was a hollow victory for Trump’s NATO allies, some of whom fear lasting damage to the alliance in light of the president’s erratic, centralized foreign policy decision-making. And the spectre of trade tensions still looms large as tariff threats against other allies remain live. Trump lashed out at Canada again on Saturday, threatening 100% tariffs over Prime Minister Mark Carney’s pending trade agreement with China. Meantime, the dollar plunged to two-month lows against the yen amid speculation about joint U.S.-Japan action to prop up Japan’s currency. This followed reports on Friday that the New York Fed had checked dollar/yen rates with dealers – considered a precursor to intervention. Any U.S. involvement would reinforce the belief that Washington wants a weaker dollar generally. At home, the fatal shooting of another anti-ICE protester in Minneapolis has further raised U.S. political tensions in what is a crucial election year for the Trump administration. What’s more, the furore could risk a partial government shutdown later this week. Chuck Schumer, the Senate’s top Democrat, said on Saturday night his party would vote against funding legislation that includes money for the Department of Homeland Security. And the impacts of Winter Storm Fern, which has ravaged much of North America, continued to be felt in the energy markets on Monday as oil prices edged higher thanks to output disruptions. This came after a more than 2% rise in the previous session. Aside from a weaker dollar, this morning has also seen steady U.S. stocks and a slip in Treasury yields ahead of Wednesday’s Fed meeting – where policy is expected to remain unchanged – and the release of a raft of earnings this week from the likes of Apple, Microsoft, Tesla, and others. Chart of the day Gold surged to a record high above $5,100 an ounce on Monday, marking a more than 18% increase this year. That’s following a 64% spike in 2025, its biggest annual gain since 1979. The dramatic rise has been driven by safe-haven demand, U.S. monetary policy easing, robust central bank purchases, and record inflows into exchange-traded funds. Meanwhile, silver climbed above the $100 mark for the first time on Friday, building on its 147% rise last year as retail-investor flows and momentum-driven buying compounded a prolonged spell of tightness in physical markets for the metal. Today's events to watch * U.S. manufacturers' new orders for November (8:30 AM EST), Dallas Fed business survey for January (10:30 AM EST) * U.S. corporate earnings: Alexandria Real Estate Equities, Brown & Brown, Nucor, Steel Dynamics, W. R. Berkley Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2026-01-26/
