|Day's range||1,556.80 - 1,562.90|
It’s turned bearish for the majors, with losses this week eating into last week’s gains. A Bitcoin move back through to $8,500 levels would signal support.
The S&P; 500 pulled back a bit during the trading session on Thursday, reaching towards the 3300 level. If we can break down below the 3300 level, then the market is very likely to go looking towards the 3250 level.
Natural gas markets have tried to rally again during the trading session on Thursday, but they continue to see signs of selling pressure every time we try to pick the market up off of the floor.
Based on the early price action and the current price at 29080, the direction of the March E-mini Dow Jones Industrial Average futures contract the rest of the session on Thursday is likely to be determined by trader reaction to the 50% level at 29050.
Samancor Chrome, the South African chrome producer, could axe over 3,000 jobs at its mines and smelters in response to weak prices for the metal and power supply problems. The mining company is considering eliminating almost 2,500 jobs at its Eastern Chrome and Western Chrome mines and about 600 jobs at its smelters because chrome ore prices are “under huge pressure” and it is paying more for less stable electricity supply in an “unsustainable” situation, according to letters seen by the Financial Times and a release by the company. The review highlights the risks posed to South Africa’s mining industry by the crisis at Eskom, the country’s stricken electricity utility, which is hampered by ageing coal plants and $30bn of debt.
Pornhub has added new performer payment options including the tether (USDT) stablecoin, two months after being apparently dropped by PayPal.
It’s funny. The news tends to lead investors to believe that gold is a buy when there is uncertainty and fear in the markets, but this type of thinking doesn’t seem to be working at this time.
It looks like the coronavirus story is not going to go away over the near-term and actually conditions could worsen. It’s difficult for professionals to gauge the impact on demand at this time so we may not see a bottom until the speculators stop shorting the market.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.For much of Juchiro Tampi’s life, black gold from Indonesia’s resource-rich soils powered his family’s business -- one of the country’s few privately held petroleum producers. But as prices falter and environmental activism rises, he’s turning from oil to a cleaner energy source: natural gas.Tampi’s firm Sele Raya plans to raise $100 million in an initial public offering of some of its assets this year on Indonesia’s stock exchange. The funds will be used to develop natural gas deposits his family discovered, joining a rush of projects driven by insatiable domestic demand, low costs and favorable domestic prices that ensure healthy profits.Stagnating production from existing fields will force Indonesia -- long an exporter of natural gas -- to boost imports of the fuel as early as the middle of this decade. The government has been encouraging companies to explore natural gas resources and has reiterated its commitment to keeping half of total production for use at home.Firms are heeding the call.They’re more than willing to develop new projects since operating costs are traditionally low and they can sell to domestic industrial users at rates roughly 60% higher than if they exported the fuel as liquefied natural gas to the North Asian spot market.With the LNG market oversupplied and prices expected to stay low, Indonesia’s producers -- such as Tampi, alongside bigger players such as PT Medco Energi Internasional and PT Pertamina -- are likely keen to sell their gas domestically.Travel, FoodTampi, 40, has a nuanced way of spotting the rising demand -- observing the consumption habits of his compatriots. From Sumatra to Sulawesi, lifestyles are becoming more energy intensive as the growing middle class spends more money on everything from dining out to home appliances.“Our population is increasing and millennials, the younger age group, are also growing,” he said, adding that, in turn, had driven environmental awareness. “They travel more, they eat more and all of those activities are fueled by energy.”Beyond millennials, Tampi says everything is trending toward an Indonesian economy that’s less reliant on oil. In December, the country announced plans to foster a domestic electric car industry.“When you do business you want to make a profit, but now we’re in the era of sustainable business,” he said. “So you want to have a social impact, do good while still making a profit. My vision is the electric car is here and it will become a mass-produced product.”Indonesia’s government has also set an ambitious goal of connecting the entire archipelago to the grid and providing everyone with electricity by 2024. Coal remains a key part of that but gas-powered plants are set to play an increasingly important role; Pertamina’s Jawa-1 project is set to generate up to 1,760 megawatts from 2021 onward.Domestic gas producers, therefore, have a ready market. Using proceeds from its planned IPO as well as existing cash flows, Sele Raya expects to plow $150 million into additional production facilities over the next three years.Economic EngineWhile Tampi spent most of his youth in Jakarta, he went to the U.S. as a 15-year-old to study at Georgetown Preparatory School in Maryland, and later earned a degree in finance and marketing from New York University. He joined the family business in 2006 after a stint running his own oil and gas contractor, as well as a few years at American firms.Sele Raya was founded by Tampi’s father in the 1970s, contracting to oil companies. It began exploration and production in 1992. Almost all Indonesian companies are family-run, and Sele Raya isn’t an exception, with Tampi’s three sisters holding key roles.Natural gas is typically measured in blocks of million British thermal units. Tampi said that while it costs his company as much as $1.61 per million Btu, his customers are willing to pay $5.90 because they sell it onto end users like fertilizer producers and factories for almost double. End users are paying on average as much as $9 per million Btu, according to Industry Minister Agus Gumiwang Kartasasmita.However, the government is also in the midst of a heated debate over how to lower domestic gas prices, which could be bad news for companies like Sele Raya. Authorities may scrap or reduce their share of revenue from gas sales in an attempt to get the price down to $6 per million Btu, according to Luhut Pandjaitan, the coordinating minister for maritime affairs and investment.“The government’s focus has shifted from treating gas as a revenue source to an engine for industrial and economic growth,” said Asti Asra, an analyst at Wood Mackenzie. “By making gas more easily available, there’s a hope downstream industries will also grow.”Tampi isn’t that worried about government changes; his sales agreement is already set for 2031 and he doesn’t believe the new regulations will retroactively affect deals. Even if they do, he says Sele Raya’s ability to keep the cost of gas discovery and exploration down will help it thrive.If all goes well, profits from Tampi’s fields will go into a mix of gas exploration and technology investments. But for now, fresh oil discoveries are off the agenda.“The oil sector is already mature,” he said, explaining that historical fuel subsidies and high prices have seen much of the region’s fields explored. “The upside is in gas.”To contact the reporters on this story: David Ramli in Singapore at firstname.lastname@example.org;Stephen Stapczynski in Singapore at email@example.comTo contact the editors responsible for this story: Katrina Nicholas at firstname.lastname@example.org, Peter VercoeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gold markets continue to go back and forth in general, as the market finds the $1550 level is an area of stability. This leads me to believe that we are probably going higher over the longer term, but things are awfully quiet right now.
(Bloomberg) -- It’s been a rough haul for Freeport-McMoRan Inc., but the future may be looking up.In the past five years, the world’s largest publicly traded copper miner was forced to sell assets and shares to manage debt as it weathered fall-out from the collapse of the commodity super cycle. It emerged from multiyear talks over its Indonesian mine to secure long-term rights, and hung on as production at the flagship operation tumbled during the switch from open pit to underground mining.And in the past year, it has been buffeted by global trade winds and hit by crossfire from demonstrations against a competitor in Peru.When the Phoenix-based company releases fourth-quarter results on Thursday, the market will be more than ready for some good news.Morgan Stanley’s “bull case” for the stock predicts a 40% rally to $18 a share. While the ramp-up of underground mining at Grasberg, Freeport’s massive Indonesian copper-and-gold asset, remains challenging, the bank believes the miner “is well positioned to deliver on execution,” analyst Carlos De Alba said in a note this week.The trend to global electrification, fed by the need to provide lower-carbon power for transport and industry, is expected to increase demand for copper, potentially resulting in supply deficits. For those companies poised for production increases, the result will be long-term growth in free cash flow, even if other factors keep prices for the metal subdued, according to Jefferies LLC.Freeport expects to double cash flow, boost copper and gold production and cut costs 25% within two years, Chief Executive Officer Richard Adkerson said in an interview last month. The company also is boosting production with investment in its Lone Star project in Arizona.With copper futures at $2.77 a pound, Freeport -- as well as First Quantum Minerals Ltd. -- are likely to move from negative to double-digit yields over the next five years, Jefferies analyst Chris LaFemina said in note, with Freeport hitting 10% yields from 2022. Even in a bearish scenario in which copper falls to $2, cash flow should be positive for both miners, he said. The companies are Jefferies’ top mining picks.“Freeport could have a positive quarter, helped by sales deferred from Q3 and continued progress at Grasberg and Lone Star,” Sam Crittenden, an analyst with RBC Capital Markets, said in a note.\--With assistance from Aoyon Ashraf.To contact the reporter on this story: Danielle Bochove in Toronto at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Steven Frank, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A key on-chain metric has witnessed solid growth over the past 12 months, possibly indicating steady accumulation of bitcoins by retail traders.
Precious metals and miners are consolidating before their next advance. Gold could reach $1700+ by March, and we see explosive potential in silver.
The price of gold lost 0.15% on Tuesday, as it extended its short-term consolidation following the previous week’s Wednesday’s record-breaking advance above $1,600 mark that ended with a sharp intraday downturn.