2025-01-13 09:26

MOSCOW, Jan 13 (Reuters) - Proceeds from oil and gas sales for Russia's federal budget in 2024 jumped by more than 26% to 11.13 trillion roubles ($108.22 billion). Oil and gas revenues have been the most important source of cash for the Kremlin, accounting for about a third to a half of total federal budget proceeds over the past decade. In 2023, weaker oil prices and a fall in gas exports reduced revenue by 24%. ($1 = 102.8500 roubles) Sign up here. https://www.reuters.com/business/energy/russian-oil-gas-revenues-jump-26-2024-108-bln-2025-01-13/

2025-01-13 07:45

Jan 10 (Reuters) - Global markets face a choppy ride ahead of U.S. inauguration day on Jan. 20, with Britain and the U.S. releasing key inflation data, China publishing growth numbers while earnings on Wall Street and IPOs in Europe get underway. A selloff in global markets is also unnerving investors, with British markets at the centre of the storm. Here's what is in store for world markets in the coming week from Kevin Buckland in Tokyo, Saeed Ahmed and Lewis Krauskopf in New York and Anousha Sakoui and Naomi Rovnick in London. 1/ STAGFLATION NATION Britain's economy is stagnating while inflation has rebounded to an eight-month high, putting the Bank of England in a bind. As if that's not enough, British gilts are firmly in the crosshairs amid a global bond squeeze. With the pound sinking and 30-year bond yields at their highest in more than a quarter of a century, finance minister Rachel Reeves faces her first major test, potentially forcing her to cut future spending. Traders expect British interest rates to drop from 4.75% to 4.25% this year, but consumer price data on Jan. 15 will show whether the Labour government's public sector pay rises and tax hikes on employers have made the risks of monetary easing unbearable. Unless inflation moderates, the chances of the BoE becoming paralysed by uncertainty look set to rise. 2/ INFLATION RAMIFICATIONS U.S. inflation data will provide a major test for the recent run-up in Treasury yields and investors' tempered expectations for Fed rate cuts this year. The December consumer price index, due on Wednesday, is expected to show a 0.3% monthly rise, according to a Reuters poll, following a similar rise in the CPI in the prior month. For investors, the pace of inflation is one of the main risk factors. At its December meeting, the Fed projected only two rate cuts this year, as it braced for higher inflation than it previously estimated. Market expectations are baking in about 40 basis points of easing in 2025. A hot inflation number could further lift Treasury yields, whose swift ascent in recent weeks has rattled asset prices. 3/ THE ART OF TRADE WAR Jan. 17 is expected to confirm that China's stimulus-fuelled fight against deflationary forces allowed it to achieve its 5% growth target for 2024. But there is no time to celebrate, with a much bigger battle looming, and Beijing is already erecting defences. Donald Trump's return to the White House on Jan. 20 could mean a threat of 60% tariffs on Chinese imports becoming a reality. The People's Bank of China announced the sale of an unprecedented 60 billion yuan ($8.18 billion) worth of six-month yuan bills in Hong Kong. That will drain liquidity to protect the currency just ahead of Trump's inauguration, although gaping yield differentials with the U.S. will keep pressure on the currency - already at 16-month lows. 4/ BANKING ON EARNINGS Robust investment banking fees, strong trading income and easing pressure to boost deposit rates should make for a happy earnings season for U.S. banks. Higher deal volumes and strong underwriting of bonds have helped lift revenue from investment banking fees in the fourth-quarter by 26% year-on-year, Dealogic data shows. Trading revenues hit record volumes of $224.6 billion last year, according to research firm Coalition Greenwich. Much scrutiny will be on the outlook for net interest income (NII) - the difference between what banks earn from loans and what they pay for deposits. JPMorgan (JPM.N) , opens new tab, Wells Fargo (WFC.N) , opens new tab, Citigroup (C.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab will kick off earnings on Wednesday, while Bank of America (BAC.N) , opens new tab and Morgan Stanley (MS.N) , opens new tab report results on Thursday. 5/ GEARING UP FOR A DEBUT Companies in Europe are gearing up to go public. Spanish travel technology group HBX Group, whose brands include Hotelbeds, which is eyeing a 1 billion euro ($1.03 billion) offering in the coming week. German drug manufacturer Stada - potentially valued at 10 billion euros - and fast fashion retailer Shein are among those expected to follow suit in the first half of the year. Prospects for European issuers have turned fairer as Deutsche Bank and Citigroup analysts turn bullish on European stocks for 2025. Last year was a mixed bag: 101 European company IPOs raised $19.3 billion - 18% more than in 2023. But that is seven fewer transactions than in the previous year, LSEG data shows. Sign up here. https://www.reuters.com/business/take-five/global-markets-themes-graphic-2025-01-10/

2025-01-13 07:41

JOHANNESBURG, Jan 13 (Reuters) - South Africa's rand hovered near a nine-month low early on Monday against a buoyant dollar, amid an uncertain outlook for further interest rate cuts by the Federal Reserve. At 0721 GMT, the rand traded at 19.1525 against the dollar , about 0.3% softer than its previous close. It hit 19.2050 per dollar on Friday, its weakest level since late April. The dollar was last trading about 0.21% stronger against a basket of currencies, after surging to its highest in over two years at the expense of emerging market currencies such as the rand. Data on Friday showed U.S. job growth unexpectedly accelerated in December while the unemployment rate fell, underscoring the strength of the world's largest economy and leaving traders heavily scaling back bets of Fed rate cuts in 2025. On the stock market, the Top-40 (.JTOPI) , opens new tab index was down about 1%. South Africa's benchmark 2030 government bond was weaker, with the yield up 5.5 basis points to 9.32%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-hovers-near-9-month-low-against-buoyant-dollar-2025-01-13/

2025-01-13 07:10

Jan 14 (Reuters) - The Danish and Greenlandic foreign ministers will meet U.S. Vice President JD Vance and Secretary of State Marco Rubio on Wednesday after President Donald Trump recently stepped up threats to take over Greenland. The autonomous territory of Denmark could be useful for the United States because of its strategic location and rich mineral resources. A 2023 survey showed that 25 of 34 minerals deemed "critical raw materials" by the European Commission were found in Greenland. Sign up here. The extraction of oil and natural gas is banned in Greenland for environmental reasons, while development of its mining sector has been snarled in red tape and opposition from indigenous people. Below are details of Greenland's main mineral deposits, based on data from its Mineral Resources Authority: RARE EARTHS Three of Greenland's biggest deposits are located in the southern province of Gardar. Companies seeking to develop rare-earth mines are Critical Metals Corp (CRML.O) , opens new tab, which bought the Tanbreez deposit, Energy Transition Minerals, whose Kuannersuit project is stalled amid legal disputes, and Neo Performance Materials (NEO.TO) , opens new tab. Rare-earth elements are key to permanent magnets used in electric vehicles (EV) and wind turbines. GRAPHITE Occurrences of graphite and graphite schist are reported from many localities on the island. GreenRoc (GROC.L) , opens new tab has applied for an exploitation license to develop the Amitsoq graphite project. Natural graphite is mostly used in EV batteries and steelmaking. COPPER According to the Mineral Resources Authority, most copper deposits have drawn only limited exploration campaigns. Especially interesting are the underexplored areas in the northeast and centre-east of Greenland, it said. London-listed 80 Mile (80M.L) , opens new tab is seeking to develop the Disko-Nuussuaq deposit, which has copper, nickel, platinum and cobalt. NICKEL Traces of nickel accumulations are numerous, according to the Mineral Resources Authority. Major miner Anglo American (AAL.L) , opens new tab was granted an exploration licence in western Greenland in 2019 and has been looking for nickel deposits, among others. ZINC Zinc is mostly found in the north in a geologic formation that stretches more than 2,500 km (1,550 miles). Companies have sought to develop the Citronen Fjord zinc and lead project, which had been billed as one of the world's largest undeveloped zinc resources. GOLD The most prospective areas for gold potential are situated around the Sermiligaarsuk fjord in the country's south. Amaroq Minerals (AMRQ.V) , opens new tab launched a gold mine last year in Mt Nalunaq in the Kujalleq Municipality. DIAMONDS While most small diamonds and the largest stones are found in the island's west, their presence in other regions may also be significant. IRON ORE Deposits are located at Isua in southern West Greenland, at Itilliarsuk in central West Greenland, and in North West Greenland along the Lauge Koch Kyst. TITANIUM-VANADIUM Known deposits of titanium and vanadium are in the southwest, the east and south. Titanium is used for commercial, medical and industrial purposes, while vanadium is mainly used to produce specialty steel alloys. The most important industrial vanadium compound, vanadium pentoxide, is used as a catalyst for the production of sulfuric acid. TUNGSTEN Used for several industrial applications, tungsten is mostly found in the central-east and northeast of the country, with assessed deposits in the south and west. URANIUM In 2021, the then-ruling left-wing Inuit Ataqatigiit party banned uranium mining, effectively halting development of the Kuannersuit rare-earths project, which has uranium as a byproduct. https://www.reuters.com/markets/commodities/greenlands-rich-largely-untapped-mineral-resources-2025-01-13/

2025-01-13 07:05

BEIJING, Jan 13 (Reuters) - The value of China's imports and exports with Russia reached 1.74 trillion yuan ($237 billion) in 2024, a record high, Chinese customs data showed on Monday, as the two countries' leaders hailed bilateral relations. China-Russia yuan-denominated trade value grew 2.9% in 2024 from 2023, according to the data by China's General Administration of Customs. The growth was significantly slower than the 32.7% gain in 2023. Bilateral trade was disrupted by payment hurdles last year after the United States intensified sanctions on banks dealing with Russia, Reuters previously reported. Russian President Vladimir Putin said in December that the primary challenge to Russia-China trade is mutual payment settlements. Chinese shipments to Russia in 2024 grew 5.0% in yuan terms from a year earlier, down sharply from the 53.9% gain in 2023, the customs data showed. Imports from Russia rose 1% last year, slowing from a 18.6% expansion in 2023. In dollar terms, China-Russia two-way trade value reached $244.8 billion, compared with $240.1 billion in 2023, Chinese customs data showed. In an exchange of New Year greetings with Putin, Chinese President Xi Jinping said on Dec. 31 that China and Russia have always moved forward "hand in hand" on the right path. Russia's state-run RIA news agency quoted Moscow's ambassador to Beijing as saying in December that Xi will visit Russia in 2025. Putin also said last year that bilateral relations had reached a level never seen before, lauding their positive nature. In December alone, China's exports to Russia grew 6.4% in yuan terms, reversing November's drop, but imports from Russia shrank 4.3% last month. ($1 = 7.3317 Chinese yuan renminbi) Sign up here. https://www.reuters.com/markets/china-russia-2024-trade-value-hits-record-high-chinese-customs-2025-01-13/

2025-01-13 07:04

Jan 13 (Reuters) - Ukraine's largest private energy company DTEK will buy storage systems with total capacity of 200 megawatts from a unit of renewable energy storage provider Fluence Energy (FLNC.O) , opens new tab to provide back-up for six power stations, DTEK said on Monday. Ukraine is facing an energy crisis after Russia intensified bombardments of its energy sector, knocking out about half the country's available generating capacity and causing blackouts nationwide. DTEK expects the power storage plants, located in different sites across Ukraine, to be operational by October - before the harsh winter season - with storage capacities ranging between 20 and 50 MW each. In total they will supply the equivalent of two hours of power in about half the households in the capital Kyiv, DTEK said in a statement. "Battery storage is a critical element in Ukraine's vision to build a decentralised energy system that reduces our emissions and enhances our energy security," the statement said. "With advanced control modes, the battery-based storage system should also enable faster restoration of power after outages," it added. Sign up here. https://www.reuters.com/business/energy/ukraines-dtek-buys-200mw-energy-storage-systems-bid-limit-outages-2025-01-13/