APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
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APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)

Pacific Rim leaders showed divisions over the wars in Ukraine and Gaza after a two-day summit of the Asia-Pacific Economic Cooperation (APEC) forum on Friday, although they pledged support for reform of the World Trade Organization.

Days of meetings involving APEC ministers and leaders were dominated by a summit on Wednesday between US President Joe Biden and Chinese President Xi Jinping aimed at cooling tensions between the world's two largest economies, which have alarmed the region.

The 21 APEC members, which include Russia and Muslim-majority Indonesia and Malaysia, went into the meetings divided over Russia's war in Ukraine and the Hamas-Israel war in Gaza, and that is how they left them.

A statement issued by this year's APEC chair, the United States, echoed last year's APEC leaders' declaration in saying that "most" APEC members "strongly condemn aggression against Ukraine."

It said the leaders exchanged views on the Gaza crisis, with some objecting to language of the chair's statement in an accompanying "Golden Gate Declaration" covering economic issues "on the basis that they do not believe that APEC is a forum to discuss geopolitical issues."

Some APEC leaders shared the united messages of the Nov. 11 joint Arab-Islamic summit in Riyadh, the chair's statement said.

Brunei, Indonesia and Malaysia in a joint statement said they were among the APEC leaders who supported the messages of the Riyadh summit, which had called for an immediate end to military operations in Gaza, rejecting Israel's justification of its actions against Palestinians as self-defense.

The three countries also called for an "immediate, durable and sustained" humanitarian truce, and for the unhindered provision of essential goods and services to civilians in Gaza.

‘Free, open, fair investment environment’

The APEC leaders' declaration reaffirmed their determination "to deliver a free, open, fair, non-discriminatory, transparent, inclusive, and predictable trade and investment environment."

"We are committed to necessary reform of the WTO to improve all of its functions, including conducting discussions with a view to having a fully and well-functioning dispute settlement system accessible to all members by 2024," it said.

Despite the frictions over the Ukraine and Middle East wars, the Sino-US talks will have brought some relief to APEC members concerned by a worsening trajectory in the rivalry between the superpowers, which are also the world's largest economies.

The Biden-Xi summit brought agreements to resume military-to-military communications and work to curb fentanyl production, showing some tangible progress in the first face-to-face talks in a year between the two, but no major reset in their strategic rivalry.

Xi appeared to achieve his aims, earning US concessions in exchange for promises of cooperation, an easing of bilateral tensions that will allow more focus on economic growth, and a chance to woo foreign investors who increasingly shun China.

Biden, addressing the other APEC leaders on Friday, urged them to work together to ensure that artificial intelligence brings change for the better, rather than abusing workers or limiting potential.

The US-China signal

Biden used the APEC summit to highlight the strong US economy and its ties to other Pacific nations, even as his vision for greater regional cooperation to counter China's influence stumbled on the trade front over his bid to strengthen workers' rights.

The managing director of the International Monetary Fund, Kristalina Georgieva, told Reuters the Biden-Xi meeting was a badly needed signal that the world needs to cooperate more and a positive sign for cooperation on global challenges, especially climate change.

Much US-China tension is linked to democratically governed Taiwan, which China claims at its own, and the issue has raised fears of a conflict between the superpowers.

Taiwan's APEC envoy, semiconductor magnate Morris Chang, told a news conference on Friday he believed the Biden-Xi summit had been a "good meeting."

He said he had informal interactions with Biden, US Vice President Kamala Harris and US Secretary of State Antony Blinken on the sidelines of APEC, but not with Xi.

As it competes with China for influence, Biden's administration has vowed to continue negotiating an ambitious Asia trade deal as part of the Indo-Pacific Economic Framework it created as a forum for engagement after then-President Donald Trump quit a regional trade pact in 2017.

However, election-year pressures and resistance to tough commitments from some countries make a deal unlikely, trade experts and business groups say.



IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.


Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
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Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.