Flash Briefing: Big Glencore rival exits; OPEC courts Russia; Zim Prez launches détente

By Alec Hogg.In today's global business headlines:.___STEADY_PAYWALL___.US president Donald Trump struck a more conciliatory tone in his 82-minute State of the Union address last night, urging the two major political parties to work together in the national interest. Trump was referring to disagreement over his proposed wall on the Mexican border designed to cut illegal immigration which caused a partial government shutdown for a record 35 days. He said as a short-term fix, another 3,750 US soldiers would be sent to the border. Trump also announced that he would be meeting North Korean president Kim Jong Un again at the end of the month claiming were it not for his intervention the US would now be at war with Kim's country and millions would have died. Trump also promised to enact legislation which would end late term abortions.As the oil price came under further pressure this week, dropping below $54 a barrel, the 14-nation oil cartel OPEC said it wants to strike a formal pact with a 10-nation Russian-led group of producers. This latest attempt to put a floor on global oil prices puts oil producers onto a collision course with US president Donald Trump who wants to reduce gasoline prices for American consumers ahead of next year's presidential elections. Iran and some other OPEC members had previously resisted the idea of a pact, fearing it would be dominated by Saudi Arabia and Russia, the world's two largest oil exporters. But the primary target now is to get the oil price above $60 a barrel. Most OPEC members need crude to rise even higher with, for instance, Saudi Arabia requiring $80 a barrel to balance its national budget.Executives at Saffer-heavy global commodity trading group Glencore will be celebrating this morning's news that Goldman Sachs will join other Wall Street banking giants who have cut or closed their commodities trading units. The Wall Street Journal reports that a month's long review initiated by Goldman's new chief executive David Solomon has concluded the commodities trading division's dwindling profits no longer justify its costs. Goldman has been a major player in commodities trading since an acquisition made in 1981 but is set to follow JPMorgan Chase and Morgan Stanley which cited banking regulations for their exit. Such rules, tightened in the wake of the Global Financial Crisis, have been to the advantage of unregulated players like Glencore.In other South African related news, peace may break out to the north where embattled Zimbabwean president Emmerson Mnangagwa has launched a détente initiative with the political opposition. He has invited them to meet tomorrow following further mass action after labour leaders called a three-day strike. MDC leader Nelson Chamisa, who claims there was widespread fraud in the last year's election, says he is considering the invitation. He previously stated that such dialogue should be held under a credible convenor and mediator. At least a dozen people were killed, and hundreds injured last month when the Zimbabwean Army suppressed riots in protest to a more than doubling in fuel prices, making them the most expensive in the world.

Flash Briefing: Big Glencore rival exits; OPEC courts Russia; Zim Prez launches détente

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