2025-12-28 23:57

Dec 29 (Reuters) - Australia's Woodside Energy (WDS.AX) , opens new tab said on Monday it had signed a supply agreement with Turkish state-owned petroleum company BOTAS to deliver around 5.8 billion cubic meters of liquefied natural gas for up to nine years, starting in 2030. This deal converts the non-binding heads of agreement signed by the two parties in September into a binding commitment. Sign up here. Under the agreement, LNG will be sourced mainly from the under-construction Louisiana LNG project in the United States, supplemented by supplies from the broader portfolio of Woodside, Australia's biggest natural gas producer. Woodside's Louisiana LNG complex, which is the largest foreign investment in the southern state's history, was the first U.S. LNG project to receive the financial go-ahead after President Donald Trump returned to office in January and promised to unleash U.S. energy onto the world. The project received final approval in late April and is slated to deliver its first gas in 2029. "This supply agreement with BOTAŞ represents a strategic milestone for Woodside, given it is our first long-term LNG supply arrangement with the Turkish market," said Woodside Executive Vice-President and Chief Commercial Officer Mark Abbotsford. "Woodside also appreciates the support shown by the Turkish and United States governments following the announcement of the HOA earlier this year." https://www.reuters.com/business/energy/australias-woodside-signs-binding-lng-supply-deal-with-turkeys-botas-2025-12-28/

2025-12-28 22:01

China's state buyer CMRG pressuring mining giants like BHP for better contract terms Some Chinese steelmakers say CMRG has not delivered on better prices Simandou project in Guinea could shift global iron ore dynamics in China's favour by 2028 Dec 29 (Reuters) - China's state iron ore buyer is using increasingly hardball tactics against mining giants such as BHP to tighten its grip on the $132 billion seaborne market and extract better terms for steel mills, just as a giant new source of supply is set to strengthen its hand. China Mineral Resources Group (CMRG) in November asked its steel mills and traders not to buy spot cargoes of a second BHP (BHP.AX) , opens new tab product, months after it blacklisted a first that drew concern from top supplier Australia's prime minister. Sign up here. The standoff over a deal for next year's supply marked an escalation because CMRG had not previously banned multiple products from a single supplier, traders and analysts said. That underscores how far the three-year-old buyer is willing to go to wrest better terms for China's steel industry. The deal under negotiation will account for the lion's share of production from BHP's mines in Australia's northwest, and around a fifth of China's needs. Reuters' interviews with more than three dozen steel and mining executives, traders and analysts suggest CMRG has become more assertive, but found limited success. Some steelmakers have privately complained it has not delivered the better prices or contract terms they were seeking. Still, CMRG's tactics with BHP could set a precedent for deals with Rio Tinto (RIO.AX) , opens new tab, (RIO.L) , opens new tab, Fortescue (FMG.AX) , opens new tab and Brazil's Vale (VALE3.SA) , opens new tab, said RBC analyst Kaan Peker in Sydney, as China looks to cut into the 80% margins the iron ore miners have historically enjoyed. While refining its strategy, CMRG has enjoyed some wins and made some missteps. In a previously unreported move, the Chinese buyer extracted a $1 per metric ton freight-linked discount on certain large cargo ships from Rio last year, said three sources with knowledge of the matter. CMRG also became the only authorised Chinese seller of iron ore from billionaire Gina Rinehart’s Hancock Prospecting, a source familiar with the matter said, after a protracted standoff in which mills and traders said they were pressured not to buy Roy Hill MB fines on the spot market for more than a year. But in executing the strategy, CMRG made life more difficult for its own steelmakers. It targeted a lower-grade product that was popular during times of painfully thin margins, forcing mills to pay more to source elsewhere. CMRG then refined its approach to choose products that would exert maximum pressure on individual miners while limiting market disruption. Mills banned from buying BHP's Jimblebar fines in September found an easy substitute in Rio's Pilbara blend fines, several Chinese traders said. BHP CEO Mike Henry told Canada's CTV in late December that negotiations with Chinese customers were continuing. Hancock, Rio, Fortescue, BHP and Vale declined to comment to Reuters. CMRG, the State-owned Assets Supervision and Administration Commission that directly supervises CMRG, the state-backed steel association and the world's biggest steelmaker, China Baowu Steel Group, did not respond to requests for comment. IN SEARCH OF LEVERAGE China formed CMRG in 2022 to leverage its role as the world's largest iron ore buyer to wrestle better terms from miners whose fat profits rankled when steel mill margins were paper-thin or even negative. CMRG is now negotiating on behalf of mills for more than half of China's 1.2 billion-plus metric tons of annual iron ore imports, according to Wood Mackenzie estimates. CMRG is seeking larger discounts on index-linked prices and negotiates some other terms like shipping and encouraging more transactions through a domestic index. Early on, some steelmakers complained privately that CMRG's presence merely raised costs and removed flexibility with their suppliers. Ceding negotiation rights was a bitter pill, but refusing what amounted to a political task was not an option, especially for state-owned mills. While CMRG increasingly dominates annual contract negotiations, mills and traders said it has largely failed to deliver better prices. "No, it did not get any better prices or terms for us, and we need to pay additional commission fee for the 'service', but what choice do we have? It's a political task and you have to cooperate," said a manager at a steelmaker, who declined to be identified due to the sensitivity of the matter. CMRG's commission fees raised procurement costs for several mills that were already struggling with low margins from a property sector downturn, steel industry sources said. But particularly for smaller mills, there have been benefits. CMRG helped those unable to access credit lines needed to import iron ore by acting as the buyer of cargoes on their behalf, according to two people with knowledge of the matter. CMRG has also become an aggressive buyer of spot cargoes through its Shanghai-based trading floor in an effort to reduce price volatility, said three sources, who also said it has a 100 million-ton trading target for 2025. NEW SUPPLY SOURCE LOOMS Despite China's slowing growth, iron ore prices have remained resilient, trading above $100 a ton since July. Wood Mackenzie expects prices at $98 a ton for 2026 and $95 a ton for 2027. But from 2028, the vast Simandou project in West Africa's Guinea is slated to produce around 7% of global supply, tipping the market into an estimated 65 million-ton surplus and giving CMRG a better bargaining position. Chinese firms are the biggest stakeholders in Simandou, followed by Guinea and Rio, which owns a 22.5% share. "The ramp-up of Simandou is widely seen as heralding that structural shift in market dynamics. It will fragment (Australia's) dominance in supplying iron ore to China," RBC's Peker said. In that context, Peker said, "it makes sense" for China to play hardball for better contract terms this year. But most mining executives who spoke to Reuters shared the view that CMRG would struggle to influence a market where it does not dominate supply. "The Chinese would really like CMRG to be more effective. So far, the fundamentals of demand and supply continue to define the price," said Gautam Varma, founder of commodity advisory firm V2 Ventures, who previously worked at Fortescue. https://www.reuters.com/world/china/inside-beijings-bid-tame-global-iron-ore-market-2025-12-28/

2025-12-28 18:31

VALENCIA, Dec 28 (Reuters) - Torrential rains flooded Spain's southern and eastern provinces over the weekend, with one person dead and two missing on Sunday evening as overflowing riverbeds swept away cars and motorcycles and authorities warned residents to stay indoors. In Valencia, where deadly floods in October last year killed over 220 people and caused billions of euros in damage, authorities issued red alert warnings to people's phones on Sunday evening urging them to stay indoors and on high ground. Sign up here. Eight other provinces were on orange alert, warning citizens of serious risks to themselves or property and to be prepared for worsening conditions. The heavy rains in Valencia last year caught authorities off guard, with many blaming local and national officials for warning people of the danger too late, eventually prompting the leader of the region to resign. In Malaga, Spain's Civil Guard found the body of a man whose van was swept away by an overflowing riverbed on Sunday, according to a post on their X account. A second passenger of the van was still missing. Emergency teams were also searching for a young person in Granada who was swept away trying to cross a riverbed on a motorcycle, according to state news agency EFE. In Barcelona, Catalonia, a woman was hospitalised on Saturday after being hit by a lamppost torn down by 70-kilometre-per-hour winds, the regional government's civil protection agency told Europa Press. https://www.reuters.com/business/environment/one-dead-two-missing-southern-spain-torrential-rains-cause-flash-floods-2025-12-28/

2025-12-28 18:28

Putin and Trump agreed on ditching temporary ceasefire idea Russia thinks Ukraine needs to make a decision on Donbas Putin and Trump spoke for 1 hour 15 minutes Putin and Trump spoke before Trump's meeting with Zelenskiy MOSCOW, Dec 28 (Reuters) - The Kremlin said on Sunday that Russian President Vladimir Putin and U.S. President Donald Trump do not support a European-Ukrainian push for a temporary ceasefire ahead of a settlement, and that Moscow thinks Kyiv needs to make a decision on Donbas. Kremlin foreign policy aide Yuri Ushakov said that a call between Putin and Trump lasted 1 hour and 15 minutes and took place at the request of Trump ahead of Trump's meeting in Miami with Ukrainian President Volodymyr Zelenskiy. Sign up here. "The main thing is that the presidents of Russia and the United States hold similar views that the option of a temporary ceasefire proposed by the Ukrainians and the Europeans under the pretext of preparing for a referendum or under other pretexts only leads to a prolongation of the conflict and is fraught with renewed hostilities," Ushakov said. Ushakov said that for hostilities to end, Kyiv needed to make a "bold decision" in line with Russian-U.S. discussions on Donbas. "Given the current situation on the fronts, it would make sense for the Ukrainian regime to make this decision regarding Donbas." Russia, which controls 90% of Donbas, wants Ukraine to withdraw its forces from the 10% of the area that Kyiv's forces still control. Overall, Russia controls about a fifth of Ukraine. Trump has repeatedly promised to end the deadliest conflict in Europe since World War Two and his envoy Steve Witkoff and son-in-law Jared Kushner have been negotiating with Russia, Ukraine and European powers. Ukraine and its European allies are worried that Trump could sell out Ukraine and leave European powers to foot the bill for supporting a devastated Ukraine after Russian forces took 12-17 square km (4.6-6.6 square miles) of Ukraine per day in 2025. "Donald Trump listened attentively to Russian assessments of the real prospects for reaching an agreement," Ushakov said. "Trump persistently pursued the idea that it was really necessary to end the war as soon as possible, and spoke about the impressive prospects for economic cooperation between the United States and Russia and Ukraine that were opening up," Ushakov said. https://www.reuters.com/world/china/putin-trump-do-not-support-european-ukrainian-temporary-ceasefire-idea-kremlin-2025-12-28/

2025-12-28 14:00

Fed minutes could shed more light on rate outlook S&P 500 on course for 8th straight monthly gain Investors watching market rotation as non-tech areas shine NEW YORK, Dec 26 (Reuters) - Investors are looking for the U.S. stock market to end 2025 on a high note next week, with equities at record peaks and nearing further bullish milestones to close out another strong year. Major U.S. indexes were on course to end December higher after stocks shook off turbulence earlier in the month driven by weakness in technology shares over worries tied to spending on artificial intelligence. Sign up here. The S&P 500 (.SPX) , opens new tab posted a record close on Wednesday, ahead of the Christmas holiday on Thursday, and was about 1% from reaching the 7,000 level for the first time. The benchmark index was on track for its eighth straight month of gains, which would be its longest monthly winning streak since 2017-2018. "Momentum is certainly on the side of the bulls," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management. "Barring any exogenous event, the path of least resistance for stocks, I think, is higher." Minutes from the Federal Reserve's most recent meeting highlight the market events in the holiday-shortened week ahead, while year-end portfolio adjustments could cause some volatility at a time when light trading volumes can exaggerate asset price moves. Heading into the new year, investors are highly focused on when the Fed might further cut interest rates. The U.S. central bank, which balances goals of contained inflation and full employment, lowered its benchmark rate by 75 basis points over its last three meetings of 2025 to the current level of 3.50%-3.75%. But the Fed's most recent vote at its December 9-10 meeting to lower rates by a quarter percentage point was divided, while policymakers also gave widely different projections about rates in the coming year. The minutes for that meeting, due to be released on Tuesday of next week, may be "illuminating to hear what some of the arguments were around the table," said Michael Reynolds, vice president of investment strategy at Glenmede. "Handicapping how many rate cuts we're going to get next year is a big thing markets are focused on right now," Reynolds said. "We'll just get a little bit more information on that next week." Investors are also waiting for President Donald Trump to nominate a Fed chair to replace Jerome Powell, whose term ends in May, and any inkling of Trump's decision could sway markets in the coming week. With just a handful of trading sessions left in 2025, the S&P 500 was up nearly 18% for the year, with the technology-heavy Nasdaq Composite (.IXIC) , opens new tab up 22%. However, the tech sector, which has been the main driver of the more than three-year-old bull market, has struggled in recent weeks, while other areas of the market have shined. Despite rebounding this week, the S&P 500 tech sector (.SPLRCT) , opens new tab has declined more than 3% since the start of November. Over that time, areas such as financials (.SPSY) , opens new tab, transports (.DJT) , opens new tab, healthcare (.SPXHC) , opens new tab and small caps (.RUT) , opens new tab have posted solid gains. The market moves indicate some rotation into areas where valuations are more moderate, said Anthony Saglimbene, chief market strategist at Ameriprise Financial. "There are more investors that are buying in to the narrative that the economy is on pretty solid footing right now," Saglimbene said. "And it has weathered a lot of potential roadblocks this year that might not be such roadblocks next year." https://www.reuters.com/business/finance/wall-st-week-ahead-sp-500-eyes-7000-mark-investors-look-upbeat-end-strong-2025-2025-12-26/

2025-12-28 10:31

KYIV, Dec 28 (Reuters) - Ukraine's leading private energy provider said on Sunday that it had restored power to more than a million households in and around Kyiv a day after a Russian air attack had forced emergency outages. A combined missile and drone attack early on Saturday had killed two people and knocked out power across broad swathes of the capital and its surrounding region. Sign up here. In a statement, DTEK said it had restored electricity to 748,000 households in Kyiv and 347,000 outside the city. It added that consumers on Kyiv's right bank were back to planned power cuts but that the situation remained "more difficult" on the left bank, where emergency outages were still in force. Two districts of the Kyiv region were also still experiencing emergency outages, DTEK said. Russia has stepped up its massive strikes on Ukraine's energy system in recent weeks as it presses ahead with a battlefield offensive amid a U.S.-led peace effort to end the nearly four-year-old war. https://www.reuters.com/business/energy/ukraines-dtek-says-power-restored-1-million-kyiv-area-households-2025-12-28/