2025-10-27 21:17

CARACAS, Oct 27 (Reuters) - Venezuela's oil ministry will ask the presidency to suspend a wide cooperation agreement with Trinidad and Tobago for energy development, including joint gas projects in negotiation, the South American country's oil minister said on Monday. Trinidad's previous government had been planning numerous joint gas projects with Venezuela, including the 4.2 trillion cubic feet Dragon field to be developed by Shell (SHEL.L) , opens new tab and the National Gas Company of Trinidad (NGCTT.UL), for which it received a U.S. license earlier this month. Sign up here. However, the new administration of Prime Minister Kamla Persad-Bissessar has not been seen as an ally by Venezuelan President Nicolas Maduro. Since taking office in April, her new government has had a close relationship with the administration of U.S. President Donald Trump, while tensions between Washington and Caracas have escalated. The current relationship between Trinidad and Venezuela, which could complement each other's energy needs, is "hostile," Oil Minister Delcy Rodriguez said in a broadcast message. "In consequence, all gas agreements between Venezuela and Trinidad would be suspended," she said, adding that President Maduro is expected to receive the suspension request soon. Venezuelan officials have criticized the authorization Trinidad received from the U.S. to negotiate the flagship Dragon project with U.S.-sanctioned Venezuela, and said Trinidad would have to pay for any gas supplies. The Dragon development, which lies in Venezuelan waters, has faced long-standing delays amid frequent U.S. policy changes since Washington imposed energy sanctions on Venezuela in 2019. Trinidad's Prime Minister Kamla Persad-Bissessar said her country did not need Venezuela's gas. "We have our plans to grow our economy both within the energy and non-energy sectors," she told the Trinidad and Tobago Newsday newspaper on Monday. Shell, NGC and BP (BP.L) , opens new tab, which are involved in various projects that include Venezuela, did not immediately reply to requests for comment. Shell is separately developing the Manatee gas project, which crosses the maritime border into Venezuela but had received permission from the Maduro government to be developed on the Trinidad side independently. It was not immediately clear if that project could also be at risk. https://www.reuters.com/business/energy/venezuela-moves-suspend-energy-agreements-with-trinidad-including-gas-projects-2025-10-27/

2025-10-27 21:11

TSX ends down 0.3% at 30,275.76 Materials group loses 3.2% as gold falls Technology adds 1.2% MEG's shares gain 3.3% as takeover fight ends TORONTO, Oct 27 (Reuters) - Canada's commodity-linked main stock index edged lower on Monday as the price of gold pulled back below $4,000 per ounce weighing on high-flying metal mining shares. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 77.31 points, or 0.3%, at 30,275.76 even as U.S. markets notched gains. Sign up here. Gold fell 2.9% to about $3,992 per ounce as signs of a thaw in U.S.-China trade tensions reduced some of the bullion's safe-haven appeal. As recently as October 20, gold touched a record high of 4,381.21. "We've got a classic pullback on gold and the base metals and silver," said Greg Taylor, chief investment officer at PenderFund Capital Management. "The materials sector, which has helped the Toronto market higher most of the year, is taking some profits." The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, lost 3.2%, with shares of Agnico Eagle Mines Ltd (AEM.TO) , opens new tab down 5%. Industrials were also a drag, falling 0.5%. Technology (.SPTTTK) , opens new tab was among the bright spots, adding 1.2%. Heavily weighted financials were up 0.6% and energy (.SPTTEN) , opens new tab ended 0.5% higher. The price of oil held on to much of last week's strong gains, settling 0.3% lower at $61.31 a barrel. Oil sands company Cenovus Energy (CVE.TO) , opens new tab has struck a deal with rival Strathcona Resources (SCR.TO) , opens new tab that will see the smaller company vote its shares in favor of Cenovus' bid for MEG Energy MEG.TO (MEG.TO) , opens new tab, ending a bitter takeover fight that has been the talk of the Canadian oilpatch for months. MEG's shares added 3.3%, Strathcona was up 2.9% and Cenovus ended 0.3% higher. Wall Street's main indexes posted record closing highs as investors were hopeful about the prospects for a U.S.-China trade deal and looked forward to a week packed with high-profile technology earnings and a widely expected U.S. interest rate cut. The Bank of Canada is also expected to lower interest rates this week, with the policy decision set for Wednesday. https://www.reuters.com/world/china/tsx-futures-flat-us-china-trade-hopes-blunt-commodity-slump-2025-10-27/

2025-10-27 21:02

ORLANDO, Florida, Oct 27 (Reuters) - A burst of optimism and relief around U.S.-China trade talks provided the rocket fuel to boost world stocks to new highs on Monday, while Argentina's markets surged after a thumping mid-term election victory for President Javier Milei's ruling party. In my column today, I caution that when it comes to U.S.-Sino trade, we've been here before. U.S. President Donald Trump triumphantly claimed in June that a trade deal with China was done, only for that not to be the case. Of course, it may be different this time, right? Sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points * Optimism around US-China ... So, it looks like a trade deal could be imminent. Even if it is essentially a placeholder deal that kicks the really thorny issues like U.S. tariffs on Chinese goods and China's controls over rare earth exports down the road, it buys time. For investors, that's more time to maintain a pro-risk stance supported by earnings, dovish central banks, and AI optimism that has been in place since April. Until fatigue really sets in or there's a catalyst to reverse it, perhaps the 'risk-on' rally grinds on. * ... and Argentina Argentina's markets soared on Monday following the convincing - and surprising - victory of President Javier Milei's ruling party in the mid-term elections. The peso leaped 10%, bonds 15%, and stocks 20%. It's a clear victory for Milei, and Washington too, given the scale of financial support the Trump administration has provided Buenos Aires in recent weeks. As always, the question once this relief rally fades is whether Argentina will be on a more stable financial footing for the long term. * Central bank bonanza Investors are preparing for a raft of major central bank meetings this week, with the Fed taking center stage on Wednesday, and ably supported by the Bank of Canada, Bank of Japan, and European Central Bank. Only the Fed is expected to cut rates, and by 25 basis points, which is fully priced into financial markets. But the overarching tone will probably be dovish, further supporting the 'melt up' rally sweeping through global equity markets. Be wary of US-China trade 'deal' déjà vu The United States and China appear to have hammered out the framework of a trade deal in advance of Presidents Donald Trump and Xi Jinping's meeting this week, removing the threat of an imminent collapse in trade between the world's two largest economies. World markets have welcomed the news, but, far from a game changer, this just looks like déjà vu. Remember this? "OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump wrote on Truth Social on June 11, adding: "RELATIONSHIP IS EXCELLENT!" As it turned out, the deal was not done, and the relationship was not excellent. So much so, an emboldened Beijing earlier this month put extra controls on rare earth exports, and Washington responded with threats of 100% tariffs on U.S.-bound shipments of goods from China. U.S. Treasury Secretary Scott Bessent also publicly criticized top Chinese trade negotiator Li Chenggang as "unhinged". However, the two men appear to have put these differences aside following talks in Malaysia over the weekend, agreeing to the roots of a preliminary deal in which China will delay its expanded licensing regime for rare earths and the U.S. will drastically lower its threatened tariffs on Chinese goods. Soundings from the White House are upbeat, while the Chinese side is taking a more cautious line. But how should investors view the news? 'PERILOUS NEW CHAPTER' On the one hand, any deal that removes the worst-case scenario of a collapse in U.S.-China trade is good news. And all the evidence since the depths of 'Liberation Day' turmoil in April suggests that, if this doomsday threat is sidelined, the world economy will continue to muddle through, and markets will 'melt up' on policy stimulus, AI optimism and solid corporate earnings. Cassandras say that's a dangerously complacent view. Whatever face-saving deal Trump and Xi eventually agree to will merely kick the can down the road. Grace Fan at TS Lombard on Friday warned that a "perilous new chapter in geopolitics and global trade" has been opened, regardless of how the Trump-Xi meeting goes. The stakes are high, neither side wants to be seen backing down, and both will feel they hold the ace cards. Trump leads the world's biggest economic, financial and military superpower, and every single trade deal he has signed so far this year has been in the United States' favor. Meanwhile, Xi has huge leverage with something the U.S. needs - rare earths, the elements used in everything from lithium-ion batteries and semiconductors to cell phones, aircraft engines, LED TVs, electric vehicles and military radars. SMALL BUT MIGHTY The rare earths issue is a tricky one. China mines about 60% of the world's rare earths and makes 90% of rare earth magnets. On its face, the dollar value of the global rare earths market looks tiny at just $12 billion, according to management consultant firm IMARC. That figure, which is at the higher end of estimates, is a fraction of last year's $670 billion U.S.-China bilateral trade. But these elements are tied to trillions of dollars of global economic output, making the relatively tiny market a critical part of U.S.-China relations. It would thus be naive to think that a temporary lifting of China's export controls, if that is part of any deal, will be the end of the matter. Instead, both sides are apt to use the "deal" as an opportunity to shore up their own weaknesses to ensure they are in a better position once tensions flare up again, whether that's Beijing further diversifying its export markets or Washington diversifying its sources of critical minerals. SOMETHING MORE 'MONUMENTAL' One of the big takeaways from the International Monetary Fund and World Bank annual meetings in Washington this month was that China's decision to use its rare earth leverage over the U.S. signals a new and more dangerous stage in this geopolitical struggle. Daniel Yergin, vice chairman of S&P Global, said in a discussion that trust between the U.S. and China has "gone". Goldman Sachs (GS.N) , opens new tab President John Waldron told another panel that "something more monumental" between the two countries is playing out. In private, many delegates were even more pessimistic. But pessimism is not something that has characterized financial markets much in the last six months, with stocks in Japan, Australia, South Korea, Britain and France, and the U.S. reaching all-time highs last week. Many markets jumped even higher on Monday ahead of the Trump-Xi meeting, expected on Thursday, with investors calculating that a 'placeholder' trade deal is better than no deal at all. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. 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/world/china/global-markets-trading-day-graphic-2025-10-27/

2025-10-27 20:57

Oct 27 (Reuters) - NextEra Energy (NEE.N) , opens new tab and Google (GOOGL.O) , opens new tab have reached an agreement to restart an Iowa nuclear power plant shut five years ago, the companies said on Monday, in another sign that data-center power demand is renewing interest in U.S. nuclear energy. The technology industry's quest for massive amounts of electricity for artificial-intelligence processing has renewed interest in the country's nuclear reactors, which generate large amounts of around-the-clock power that is virtually carbon free. Sign up here. Under NextEra's deal with Google, the Duane Arnold Energy Center near Cedar Rapids is scheduled to resume operations in early 2029. The restart is backed by a 25-year agreement for Google to buy electricity from the 615-megawatt plant. Shares of NextEra Energy rose over 1% to $87.24 after the bell. The agreement follows a similar announcement at the former Three Mile Island nuclear power plant, which is owned by Constellation Energy, in Pennsylvania to fuel Microsoft (MSFT.O) , opens new tab data centers. Google, Microsoft, Amazon (AMZN.O) , opens new tab and other so-called hyperscalers that operate massive cloud-computing infrastructure have also agreed in recent months to buy future energy produced by advanced nuclear technologies, including fusion and small modular reactors. NextEra and Google also will explore the development of new nuclear technology, the companies said. “Restarting Duane Arnold marks an important milestone for NextEra Energy,” said CEO John Ketchum. “Our partnership with Google not only brings nuclear energy back to Iowa — it also accelerates the development of next-generation nuclear technology. The Duane Arnold Energy Center -- Iowa's lone nuclear plant -- closed in 2020 after operating for 45 years. While there are now three U.S. restart efforts under way, including a Michigan power plant that is not connected to a technology deal, no mothballed nuclear power plant has actually been restarted. “This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy,” said Ruth Porat, president and chief investment officer of Alphabet and Google. One of the plant's minority owners, Central Iowa Power Cooperative, will purchase the remaining portion of the plant's output on the same terms as Google, NextEra said. The utility added that it had also signed agreements to acquire the 30% interest in the Duane Arnold plant owned by that cooperative and Corn Belt Power Cooperative, bringing NextEra's ownership to 100%. https://www.reuters.com/business/energy/nextera-energy-partners-with-google-restart-iowa-nuclear-plant-2025-10-27/

2025-10-27 20:36

Planned sale is the most consequential action yet for a Russian company over sanctions Lukoil has vast international exposure, including in Europe, Middle East Lukoil says it is considering bids from potential purchasers MOSCOW, Oct 27 (Reuters) - Russia's second-largest oil producer, Lukoil (LKOH.MM) , opens new tab, said on Monday it would sell its international assets following sanctions over Ukraine announced last week by the United States. The planned sale of the assets is the most consequential action so far by a Russian company in the wake of Western sanctions over Russia's war in Ukraine, which started in February 2022. Sign up here. "The sale of the assets is conducted under OFAC wind down license. If necessary the company plans to apply for extension of the license to ensure uninterrupted operations of its international assets," Lukoil said in its statement, adding that the consideration of bids from potential purchasers had started. On October 22, U.S. President Donald Trump imposed Ukraine-related sanctions on Russia's largest oil companies, Lukoil and Rosneft (ROSN.MM) , opens new tab. On October 15, Britain also targeted Lukoil and Rosneft, as well as 44 so-called shadow fleet tankers, mainly consisting of aging tankers with opaque ownership, in what it described as a new bid to tighten energy sanctions and choke off Kremlin revenue. Moscow-headquartered Lukoil accounts for around 2% of global output. Its name derives from three oil towns in Lukoil's traditional exploration region of western Siberia: Langepas, Urai and Kogalym. The company did not identify specific assets to be sold. Its biggest foreign asset is Iraq's West Qurna 2 oil field, one of the world's largest, in which it holds a 75% stake. The oil field's output topped 480,000 bpd in April, Russia's Interfax news agency has reported. The company owns the 190,000 bpd Lukoil Neftohim Burgas refinery in Bulgaria, the largest in the Balkans, as well as the Petrotel oil refinery in Romania. Lukoil supplies oil to Hungary and Slovakia, as well as to Turkey's STAR refinery owned by Azerbaijan's SOCAR, which depends heavily on Russian crude. The company also has stakes in oil terminals as well as retail fuel chains in Europe and has various upstream and downstream projects in Central Asia, including Kazakhstan, and in Africa and Latin America. https://www.reuters.com/business/energy/russias-lukoil-says-it-intends-sell-international-assets-due-western-sanctions-2025-10-27/

2025-10-27 20:34

Benwerrin will look at opportunities up to $500 million Firm will finance development, buyout activity Copper, base metals, bulks, precious metals developers in focus MELBOURNE, Oct 28 (Reuters) - (This Oct. 28 story has been corrected to clarify that Orion Resource Partners will invest alongside the U.S. and Abu Dhabi governments in global mining and smelting projects as part of $1.8 billion in commitments, not that it will receive $1.8 billion to invest, in paragraph 7) Former top executives from Australia-based resources investor Taurus on Tuesday launched a firm that could provide up to $500 million per project for multiple projects in strategic metals worldwide, to help fill a funding gap for junior miners. Sign up here. Benwerrin Investment Partners aims to bolster the supply of metals such as copper seen in huge demand for the energy transition, data centres and defence, at a time when the U.S. and its allies are hunting for alternative sources to dominant producer China. "The 'why now?' is that there's a market that's crying out for capital. There's a staggering number of projects that need to be built across a very diverse group of commodities," Managing Partner Martin Boland told Reuters. He could not disclose how much the firm would have available to invest, due to U.S. regulations around fund-raising, but said it would target junior to mid-tier miners. "Given the retreat of traditional capital providers to the space, private capital is going to need to fill the void in a meaningful way," he said. INTEREST GROWING IN THE SECTOR Governments and other institutions, such as the International Finance Corporation, are increasingly looking to work with specialist resources investors to help develop risky mining projects. Last week, New York-based Orion Resource Partners, among the world's largest mining-focused investment firms, said it would with U.S. and Abu Dhabi governments invest $1.8 billion to support global mining and refining projects. Orion co-founder Doug Silver, an early architect of a type of mine finance called streaming, will work as an adviser to Benwerrin. The firm is evaluating opportunities starting at the low end of the tens of millions of dollars and ranging up to half a billion dollars, Boland said. It will invest in developers of base metals, such as copper, precious metals, bulks and some industrial metals, but not in metals processing or frontier locations, such as West Africa. "Africa is still very investable for us, but probably a bit more selectively than what it was, say, five years ago," he said. Critical minerals such as rare earths will not be a focus given the execution risk attached to these often highly technical projects, Boland said. Benwerrin, named for an Aboriginal word meaning "long hill", will offer capital principally for buyout activity and brownfield projects, which are sites with existing mining infrastructure, as loans or in return for a royalty or stream. Streaming and royalty contracts provide funding in exchange for a portion of production or revenue. They have become a popular source of capital for North American gold miners, led by the success of $37 billion company Franco-Nevada (FNV.TO) , opens new tab. Boland, previously an investment banker at Barclays, is one of three to join Benwerrin from Taurus. The team will include 14 sector specialists, including in sustainability, in Perth, Melbourne, Vancouver, Toronto and Denver. Boland said mining has been attracting investors who seek exposure to inflation-linked gains from real assets, and accept that a range of metals will be needed, not just those specific to certain battery technologies. "The energy transition, the AI demand profile, the need for defence - it's really making people understand the role of mined commodities." https://www.reuters.com/business/australian-financiers-launch-investment-firm-tap-strategic-metals-boom-2025-10-27/