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- The UK government is preparing to set out its vision for how it wants financial services to function after Brexit. Although the move is back by the City of London, Michel Barnier, the EU trade negotiator, has warned that the UK will not be able to negotiate special access arrangements to the single market for financial services.
- Poor crop weather has hampered the output of Arabica coffee beans in Colombia, the world's largest producer of high-quality beans. Too much rain and not enough sunlight has resulted in a smaller-than-expected harvest and has left many importers facing shipment delays.
- Soybean prices have hit a 7-month high of $10.10-1/2 a bushel following drought conditions in Argentina, one of the world's leading exporters.
- It is expected that Brazil could become the world's top corn exporter, overtaking the US, within the next 5 years, as US farmers continue to struggle with low grain prices and ageing infrastructure.
- According to their spokesman Michael Rebstock, German carmaker BMW is close to signing a deal for the long-term supply of lithium and cobalt for their EV batteries. The contracts will supposedly guarantee supply for the next 5-10 years. The supplier, price and volumes in question have however not yet been disclosed.
- As the USD hovers near 3-year lows, copper is on track for its biggest weekly gain in over a year. The benchmark contract on the LME for 3-month delivery is currently above $7,200 a tonne at $7,202.
Energy - UK
- Although UK electricity and gas prices remain down on the month, prices are up compared to last week. Although the market remains well supplied, a decline in wind and nuclear output, and a colder weather forecast for the week ahead, have helped support UK and European prices.
Energy - International
- Oil prices are at a one-week high on the back of a weakening USD and a rally in global stocks. The USD has dipped to a 3-year low at a time which sees global equities moving towards their biggest weekly gain in 6 years. Further gains in Brent and WTI, which are trading just above $61 and $64, respectively, are however capped by the foretasted ramp up in US production.
- The United Arab Emirates energy minister Suhail al-Mazoui has said that a long-term alliance between oil producers, led by Saudi Arabia and Russia, is expected to be drafted by the end of the year.
- In an effort to "enhance competition and promote greater efficiency... [and] support the resilience of the bulk power system", the Federal Energy Regulatory Commission (FERC) has approved a new rule to remove barriers to batteries and other storage resources in US power markets.
- Despite Poland's concerns that Russia's Nord Stream 2 project threatens energy diversification in Europe, German Chancellor Angela Merkel has said that Germany does not think the project is a real threat to Europe's energy security.