Oil prices fell amid concerns that the spread of the Omicron variant could hurt global economic growth and crimp oil demand.

After getting hammered when the pandemic began, global oil demand has recovered this year. Still, it remains about two million barrels a day short of its pre-pandemic level of almost 101 million barrels a day, according to the International Energy Agency.

The agency has said it expects the surge in Covid-19 cases to slow the revival in demand by reducing air travel and hitting consumption of jet fuel. Adding to the pressure on prices, production is on the rise, particularly in the U.S., where drilling activity has picked up.

Meanwhile, European gas prices are up 3.3% after Russian gas flow to Germany via Poland almost dropped to zero over the weekend.

London gold prices were down, although they have crept up so far in December, thanks to safe-haven appetite for the yellow metal, Swissquote's Ipek Ozkardeskaya said. While Ozkardeskaya doesn't expect any further rallies from gold, she said that may change "if there is a significant erosion in the risk sentiment and a further selloff across the risk assets."

Ultimately, signals of tightening monetary policy out of the Fed makes the dollar a safer haven than gold at the moment, she added. LME three-month copper futures are down 1%, with equities and oil markets dropping and the dollar having risen in recent weeks, making dollar-denominated commodities more expensive for other currency holders.

EMEA HEADLINES

BNP Paribas to Sell Bank of the West to Bank of Montreal for $16.3 Bln

BNP Paribas SA said Monday that it has agreed to sell Bank of the West to Bank of Montreal's BMO Financial Group for a total consideration of $16.3 billion in cash.

The sale represents all of BNP Paribas's retail and commercial-banking activities in the U.S. Some 70% of Bank of the West's deposits are in California.

Telecom Italia's Ex-CEO Steps Down From Board

Telecom Italia SpA said late Friday that former Chief Executive Officer Luigi Gubitosi stepped down from the board of directors, with effective immediately.

Mr. Gubitosi has reached an agreement with the company regarding his departure that includes a severance package of roughly 6.9 million euros ($7.8 million), it said.

Rio Tinto Names Dominic Barton, Canada's Ambassador to China, as Chairman

ADELAIDE, Australia-Rio Tinto PLC said Dominic Barton, Canada's ambassador to China, would become its chairman as the mining company strives to repair damage to its reputation from the destruction of two ancient rock shelters in Australia last year.

By selecting Mr. Barton, who will succeed Simon Thompson in May, Rio Tinto is hoping that a diplomat's skill set can help it to navigate challenges that include rising resource nationalism in some key markets and demands from investors for mining companies to more aggressively address the environmental impact of their operations. Rio Tinto also makes most of its earnings in Australia, which is locked in a trade and diplomatic dispute with China.

Monte dei Paschi to Raise $2.8 Bln for New Strategic Plan

Banca Monte dei Paschi di Siena SpA is to raise 2.5 billion euros ($2.8 billion) through a capital increase next year as part of a new mid-term plan after the failure of the Italian government's efforts to sell the lender to peer UniCredit SpA.

Funds from the capital raise will be used for investment in I.T., for restructuring expenses, and to cover 2020 stress-test indications and current equity requirements, MPS said in a statement late Friday.

Roche Licenses Rights to Experimental Eye Cell Therapy

Roche Holding AG is adding an experimental drug for a blinding eye condition in a deal aimed at helping the company move further into cell-based therapies.

Roche's Genentech drugs business said Monday that it has bought the rights to the eye drug from Lineage Cell Therapeutics Inc. for $50 million cash upfront and additional payments in the future if development, regulatory and sales milestones are met.

Turkey's Currency Crisis Slams the Nutella Global Supply Chain

GIRESUN, Turkey-The farmers who produce most of the world's hazelnuts are reeling from a currency crisis that has shaken a supply chain that stretches from this town's jagged hillsides overlooking the Black Sea to Nutella jars on supermarket shelves.

The Turkish hazelnut industry-which employs some four million people who produce 70% of the world's hazelnuts-is a stark example of the potential global implications of an economic gamble set in motion by President Recep Tayyip Erdogan, who says he wants a weaker Turkish lira to encourage exports and expand productive industry. The lira has lost half of its value this year.

Germany to Name Joachim Nagel as Central Bank Head

Joachim Nagel is to succeed Jens Weidmann as head of the German Bundesbank, according to Germany's Federal Government.

This was announced by Finance Minister Christian Lindner on Monday with the following tweet: "Chancellor Olaf Scholz and I propose Joachim Nagel as the new chief of the Bundesbank."

Omicron Prompts New Covid-19 Restrictions

New restrictions were set in place in Europe in an effort to stem the spread of the Omicron variant of the coronavirus as a top U.S. health official warned that the variant is likely to strain American hospitals in the coming weeks.

The rapidly spreading variant is already the dominant strain in the U.K., according to estimates derived from British health data, and is within days of becoming so in Denmark. Omicron has been detected in 89 countries, and Covid-19 cases of the variant are doubling every 1.5 to three days in places with community transmission, the World Health Organization said Saturday.

Iran's Top Diplomat in Yemen Leaves the Country

Iran's top diplomat in Yemen flew out of the country on Saturday in an agreement between Houthi militants controlling the capital and Saudi Arabia, according to regional officials.

Hassan Irloo, who was smuggled into Yemen last year and named Iran's ambassador to parts of the country controlled by the Houthis, left on an Iraqi military plane sent to pick him up, according to Saudi, Iranian and Houthi officials.

Europe's Ski Slopes Are Open Despite Omicron, at Least for Now

ALPE DI SIUSI, Italy-In the rarefied air of the Dolomite Alps, 7,000 feet above sea level, one can almost forget that the Covid-19 pandemic is still raging.

Skiers from across Europe ride the lifts until twilight. Children snake down slopes behind their instructors. People sip beer slope-side, and patrols on snowmobiles ply the mountainside.

The World Wants Green Hydrogen. Namibia Says It Can Deliver.

LÜDERITZ, Namibia-This old diamond-mining town, perched on the rocky Atlantic coastline of this sparsely populated desert nation, last boomed at the start of the 20th century, when diamonds were discovered in the nearby dunes.

Now Namibia is positioning itself as a leader in the emerging market for another hot resource: green hydrogen, which is made using renewable electricity.

GLOBAL NEWS

Is the Fed Deflating Prospects for Speculative Stocks?

Speculation seems to be going out of fashion. Since early November, the most speculative stocks have been crushed, even as the wider market reached new highs. Many blame the Federal Reserve, but the link between monetary policy and speculation is less clear than it seems.

Among those losing 20% or more: The "meme" stocks of GameStop and AMC Entertainment, electric-car maker Tesla, hydrogen darling Plug Power, bitcoin and a host of tiny unprofitable stocks. The businesses have little in common, but all rely for high valuations on buyers willing to bet on a story-and have benefited from the surge in individuals trading stocks. (A stunning rally in some of the speculative names Friday did little to mitigate the losses; AMC led with a 19% daily gain, but is still down one third from early November, and worth just over half where it peaked in June.)

China Central Bank Cuts Loan Prime Rate for First Time in 20 Months

China's central bank cut the one-year loan prime rate amid a slowing economy that has been dragged by a slump in the property sector.

The one-year LPR was lowered to 3.80% from 3.85% and the five-year LPR remained at 4.65%, the People's Bank of China said Monday.

Bitcoin's 'One Percent' Controls Lion's Share of the Cryptocurrency's Wealth

It's good to be the bitcoin 1%. The top bitcoin holders control a greater share of the cryptocurrency than the most affluent American households control in dollars, according to a study by the National Bureau of Economic Research.

The study showed that the top 10,000 bitcoin accounts hold 5 million bitcoins, an equivalent of approximately $232 billion.

Biden's China and Climate Goals Clash Over Solar Panels

The Biden administration faces a looming decision on solar-energy tariffs that pits its goal of combating climate change against its ambition to wrestle high-tech manufacturing supply chains from China.

Early next year, U.S. taxes on imported solar panels are set to expire after a four-year run. Many climate activists and solar-energy users want the administration to scrap the tariffs, saying they make solar panels needlessly expensive.

Economy Week Ahead: Housing, Consumers, Inflation

U.S. consumer spending and inflation data highlight this week's economic calendar.

Himalayan Glaciers Are Melting at Furious Rate, New Study Shows

Glaciers across the Himalayas are melting at an extraordinary rate, with new research showing that the vast ice sheets there shrank 10 times faster in the past 40 years than during the previous seven centuries.

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12-20-21 0635ET