2026-01-23 11:42
Everything Mike Dolan and the ROI team are excited to read, watch and listen to over the weekend. From the Editor Sign up here. Hello Morning Bid readers! Greenland may soon go back to being a large “piece of ice” in the minds of many investors, but this past week’s Arctic saga is meaningful nonetheless. It’s a reminder that President Donald Trump can always find an off ramp – even when one didn’t appear to exist a few hours before – and also that no deal with the U.S. can now ever be considered final. While major U.S. equity indices posted their biggest one-day percentage drops in three months on Tuesday when tensions over Greenland were at a fever pitch, they rallied following Wednesday’s news that the “concept of a deal” over the self-governing Danish territory had been reached, meaning President Trump would not be slapping additional 10% tariffs on several European allies. The president – who gave a bellicose speech at the World Economic Forum in Davos, Switzerland on Wednesday – has now indicated that the U.S. will secure “total and permanent” access to Greenland. But the Davos détente is not the end of the story, as the U.S. president’s willingness to reopen seemingly closed trade deals as a negotiating tactic in non-economic disputes will only increase uncertainty among businesses and trading partners. Reflecting this anxiety, the greenback remains weak, with the dollar index on track for its biggest weekly drop since June. Safe haven gold continues to move higher, breaking through $4,900 per ounce. European stocks are set to end the week in the red for the first time in over a month, and the U.S. rally looks like it might be stalling. The Greenland furore also highlighted a few lingering issues investors should keep in mind: Europe’s heavy dependence on U.S. gas remains a massive weak spot, the bond market is likely still Trump’s kryptonite and Europe’s “long USA” trade looks heavily stretched. The other big market move this week was in Japan. The yield on the 10-year Japanese government bond jumped over 18 basis points in two days to hit a 27-year high of 2.38% on Tuesday. This was after Prime Minster Sanae Takaichi – who has promised to spur Japanese growth with massive stimulus – called a snap election for February. The yen moved around a bit on Friday, even as the Bank of Japan kept interest rates unchanged. At one point, the currency quickly strengthened to around 157 per dollar, which some interpret as a sign that government intervention is coming. Amid this week's drama, some may have forgotten that Tuesday marked the one-year anniversary of Trump’s second inauguration. Even though domestic political tensions remain high, the U.S. economy continues to perform remarkably well, growing at a revised annual pace of 4.4% in the third quarter of 2025. But one U.S. industry might be getting particularly anxious about the direction of U.S. policymaking: oil and gas. While the president’s embrace of the energy sector was welcomed at first, it is now starting to feel a bit awkward. Looking to next week, a Federal Reserve meeting is on the docket. Inflation remains a bit high for comfort, with the personal consumption expenditures price index rising 2.8% in the 12 months through November, just above the 2.7% rise notched the prior month. (This data is still somewhat noisy due to last fall’s government shutdown.) Ultimately, no one expects the Fed to move next week, so most of the market chatter will inevitably be about who will replace Chair Jerome Powell when his term ends in May. Stay tuned! For more commodities and markets news, check out Reuters Open Interest , opens new tab. You can learn which U.S. states are apt to be most impacted by the data center building blitz, find out why American aluminium buyers are paying such a high premium (it’s not just tariffs), and discover which region’s defense stocks could be surprise winners from the ongoing geopolitical turmoil. As we head into the weekend, check out the ROI team’s recommendations for what you should read, listen to, and watch to stay informed and ready for the week ahead. I’d love to hear from you, so please reach out to me at [email protected] , opens new tab . , opens new tab This weekend, we're reading... MIKE DOLAN, ROI Finance & Markets Columnist: The Bank for International Settlements , opens new tab on Thursday released new research examining the dollar's global dominance and its use in global bond markets. Documenting three dollarisation waves since the 1960s, it concludes that there have been no monotonic dollarisation or de-dollarisation trends per se. Instead, dollar usage has exhibited a wavelike pattern. ANDY HOME, ROI Metals Columnist: Our Reuters colleagues Steve Holland, Gram Slattery and Tim Reid wrote an insightful analysis a year ago about U.S. President Donald Trump's fixation on acquiring Greenland that is still highly pertinent. Rare earths? Strategic defense? The answer may be much simpler. GAVIN MAGUIRE, ROI Global Energy Transition Columnist: Ember's European Electricity Review 2026 , opens new tab highlights several key energy milestones in 2025, including the fact that wind and solar power generated a larger share of regional electricity than fossil fuels for the first time ever. We're listening to... RON BOUSSO, ROI Energy Columnist: Rystad Energy’s latest podcast "Let’s Talk Energy , opens new tab" features a great discussion about the future of Venezuela’s oil industry. And we're watching... JAMIE MCGEEVER, ROI Finance Columnist: Canadian Prime Minister Mark Carney's pointed address , opens new tab at the World Economic Forum argues that we’re seeing a "rupture" of the rules-based global order of the past 80 years and the emergence of ... well, we don't know what. (From 3 mins 55 seconds) 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 authors. 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-2026-01-23/
2026-01-23 11:36
NEW DELHI, Jan 23 (Reuters) - India's Bharat Petroleum Corp Ltd (BPCL.NS) , opens new tab will buy 12 million oil barrels for $780 million from Brazil's Petrobas (PETR3.SA) , opens new tab in fiscal 2027, twice the size of its 2026 contract, to partly replace Russian oil, a government statement said on Friday. Indian refiners are redrafting their oil import strategies, buying more oil from Middle Eastern, African and South American countries to make up for a reduction in Russian oil supplies. Sign up here. The deal between the Indian state-run refiner and Brazil's national oil company will be signed next week at the India Energy Week conference, the statement added. OTHER PACTS During the four-day conference beginning Jan 27, state-run Numaligarh Refinery Ltd (NRL) will also sign a preliminary deal with France's TotalEnergies (TTEF.PA) , opens new tab to build a 200 kilo tons per year sustainable aviation fuel project at Paradip in eastern Odisha state. Additionally, NRL and explorer Oil India Ltd (OILI.NS) , opens new tab will sign a preliminary deal with TotalEnergies to buy liquefied natural gas (LNG) to meet future demand of the two Indian companies. Separately, BharatPetro Resources Ltd - an unit of BPCL - is set to sign a pact with Shell (SHEL.L) , opens new tab to buy stakes in oil and gas companies across the world, the government statement said. https://www.reuters.com/business/energy/india-says-state-run-bpcl-sign-oil-deal-with-brazils-petrobras-2026-01-23/
2026-01-23 11:30
Preliminary report suggests rail fracture before train derailment Collision involved Iryo and Renfe trains, killing 45 in Cordoba CIAF finds wheel damage consistent with rail fracture MADRID, Jan 23 (Reuters) - A fracture in the rail appeared to have occurred before a high-speed train derailed in southern Spain last Sunday, rail accident investigating body CIAF said in a preliminary report published on Friday. Sunday's deadly collision in Adamuz, Cordoba province, killed 45 in one of Europe's worst train accidents. A first train belonging to private consortium Iryo derailed and smashed into another oncoming high-speed train from state-owned rail company Renfe. Sign up here. "Based on the information available at this time, it can be hypothesised that the rail fracture occurred prior to the passage of the Iryo train involved in the accident and, therefore, prior to the derailment," read the CIAF report, posted on the body's website. CIAF said the causes for the breakage had yet to be established and nothing had been ruled out. Reuters wrote on Tuesday that investigators had identified a broken joint on the rail track in an exclusive report. The Transport Ministry did not immediately reply to a request for comment. Iryo's majority owner, Italian state-controlled railway group Ferrovie dello Stato, declined to comment on the report. Investigators found uniform notches on several of the wheel treads on the right-hand side of the Iryo train, according to the report. The marks were consistent with the wheels striking the top of a rail, and a visual comparison suggested the wheel notches match damage seen on the broken rail section at the derailment site, it added. CIAF said it had also found similar wheel damage on other trains that passed through the area before the crash. The report's findings must be confirmed by further calculations and detailed analysis, CIAF cautioned. https://www.reuters.com/world/europe/rail-fracture-likely-occurred-before-train-crash-southern-spain-investigators-2026-01-23/
2026-01-23 11:21
DAVOS, Switzerland, Jan 23 (Reuters) - Swiss-based MKS PAMP expects to firm up plans to increase U.S. gold refining capacity this year, CEO James Emmett said, predicting demand would push prices to new records. The precious metals firm has been expanding its operations in Oklahoma City, where sister firm APMEX is located. Sign up here. "We have a very clear idea of the sort of volumes that we want to produce in the U.S. And whilst it wouldn't be quite as big as our facility in Ticino (Switzerland), it would certainly be a sizable volume overall," Emmett told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland. Emmett said the firm was considering everything from a joint venture to building a new facility and that he had been in the U.S. in December to explore options. Commercial opportunities were driving plans Emmett described as "in the U.S., for the U.S., by the U.S.," he said, adding MKS PAMP needs a few months to work out the details. "It is something that we would certainly want to have clarity on over the course of this year," said Emmett, noting that the company's analysts expect to see spot gold prices climbing to about $5,400 per ounce by the end of 2026. MKS PAMP also aims to expand operations at its main facility in Castel San Pietro near Lugano in the southern Swiss canton of Ticino, he said. The company began setting out its U.S. expansion plan following pressure on Switzerland from President Donald Trump over the U.S. trade deficit with the country, a significant portion of which derives from Swiss gold exports. In August, Trump imposed 39% import tariffs on Switzerland, the highest in Europe, prompting officials and business leaders to come together to craft a plan that would reduce the U.S. trade deficit and boost Swiss investment in the United States. Those efforts culminated in a preliminary agreement in mid-November to cut the U.S. tariffs on Switzerland to 15%. Marwan Shakarchi, CEO of the parent group of MKS PAMP, was among a group of executives from Switzerland who visited Trump in the White House in early November, a meeting that officials say helped to pave the way for the deal. Swiss and U.S. officials are scheduled to hold talks aimed at formalising a trade agreement over the coming weeks. https://www.reuters.com/business/davos/swiss-gold-firm-mks-pamp-finalise-us-expansion-plans-this-year-ceo-says-2026-01-23/
2026-01-23 11:19
SINGAPORE, Jan 23 (Reuters) - A former trading executive with Chinese refining giant Sinopec has joined Singapore-based commodities firm Sino Crown International to build and lead its crude oil trading, two industry sources with knowledge of the hire said. Simon Chen, or Chen Bo, who was president of Sinopec's trading vehicle Unipec until late 2018, joined the Singapore firm in November, said the two people. Sign up here. Chen did not immediately respond to a request for comment. Sino Crown is a unit of Zheshang Development Group (000906.SZ) , opens new tab, an east China-based commodities firm controlled by state-run Zhejiang Communications Investment Group. It trades metals and fuel oil, and is expanding into crude oil trading, said one of the sources who has direct knowledge of the company's operations. Chen, a career crude oil trader in his early 60s, joined Unipec in the early 1990s and became its president in 2014. He was suspended in late 2018 after Unipec incurred record derivatives trading losses which Sinopec blamed on "inappropriate trading strategies", Reuters reported at the time. https://www.reuters.com/world/asia-pacific/former-veteran-sinopec-executive-lead-singapore-firms-crude-oil-trading-sources-2026-01-23/
2026-01-23 11:05
FRANKFURT, Jan 23 (Reuters) - Prosecutors in Germany are investigating 16 suspects for possible embezzlement and fraud at Heraeus, the German metal trading and recycling group that has reserved $540 million to cover risks for "irregularities" exposed by a whistleblower. Prosecutors in Frankfurt said on Friday that they had been investigating since June suspicions that materials delivered by customers to Heraeus for processing were unlawfully taken in a period spanning 2015 to 2025. Sign up here. "There are grounds for suspicion that unlawful withdrawals may have been made from delivered customer material," prosecutors said in an emailed statement. The prosecutors' investigation was first reported by the Financial Times. Heraeus disclosed last year in its 2024 annual report a provision of 457.7 million euros ($537.29 million), following an internal whistleblower who exposed irregularities in the handling of precious metals "that were to the detriment of certain customers" at a company recycling site in Hanau, Germany. A Heraeus spokesperson said in a statement on Friday that it was cooperating with authorities and that affected customers had been compensated. "We have taken the necessary measures and precautions to prevent a recurrence and strengthen our compliance system," the spokesperson said. ($1 = 0.8519 euros) https://www.reuters.com/sustainability/german-prosecutors-probe-16-suspects-alleged-metals-fraud-2026-01-23/
