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Sources say that TK Elevator owners are weighing up the US dollar for a potential multi-billion euro IPO.
Three people familiar with the matter said that TK Elevator owners are considering the United States for a possible initial public offering (IPO) next year, despite the market turmoil caused by U.S. Tariffs, which has slowed the pace of dealmaking. The people, who spoke on condition of anonymity as the matter was private, said that the discussions are still at an early stage, and the preparations will be formalised by the end of 2025 with a view of conducting a company sale or listing next year. People said that the business would likely be valued at over 20 billion euros in a transaction. However, there is no certainty about a deal, and the timing may change based on the market's developments. One person said that the United States is TK Elevator’s largest market. It is also home to the sector leader Otis which commands the highest multiplier among its peers. This is one of many reasons it is being considered for an IPO. Thyssenkrupp sold its elevator business in 2020 - renamed TK Elevator subsequently - to a consortium led by private equity firms Advent and Cinven, as well as Germany's RAG Foundation - for 17,2 billion euros. Advent, Cinven, and RAG declined to comment. TK Elevator did not respond to a request for comment immediately. The recent actions of Titan Cement International and Holcim, both Swiss companies, have highlighted the hotly debated issue. Fourth largest The London Stock Exchange is trying to discourage companies from going to the U.S. LSEG data shows that TK Elevator ranks fourth in the world for elevator sales, behind U.S.-based Otis and Schindler, as well as Finland's Kone. These companies trade at an average EV/EBITDA multiplier of 14.8, according to LSEG. This ratio, based on an adjusted EBITDA (Earned Before Interest and Taxes) of 1.5 billion euro in fiscal year 2023/24, would give TK Elevator a value of over 22 billion euros. Since the fiscal year 2020/2021, TK Elevator's sales have increased by over 16%. Its adjusted EBITDA has also increased by over a third. This has resulted in an operating margin around 16%. The strong global demand, and stable service business, are to thank for this. Alat, a Saudi tech company, bought a 15% share in TK Elevator in February. It also launched a 160-million euro joint venture for elevator and escalator systems in Saudi Arabia. Thyssenkrupp said last year that a minority share it still held in the elevator business had a book valuation of 1 billion euro. It added it was flexible about its options, which depended largely on what TK Elevator’s majority owners did.
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Sources say that Brazil's Petrobras is considering outsourcing the operation of its fertilizer plants.
Three sources with knowledge of the talks said that Brazil's state oil company Petrobras was considering holding a tender for a company to run its nitrogen fertilizer facilities in Bahia State and Sergipe State. The move is intended to restart production at these facilities. On condition of anonymity, sources stated that the board of the company is expected to meet Thursday to evaluate this proposal. This would involve Petrobras taking back management of the two units currently leased by Unigel. Petrobras didn't immediately respond to an inquiry for comment. Petrobras leased the two units to Unigel for 10 years in 2019, but since 2023, they've been paralyzed as Unigel claimed that Brazil's high natural gas prices made it uneconomical. A source said that the board meeting to find a solution on how to resume the units was rescheduled multiple times over the past few weeks due to the lack of consensus between board members. Brazil is heavily dependent on imported fertilizers. Prior to the current proposal was the possibility that Petrobras could directly engage Unigel for the operation and maintenance of the units, a measure which would have already had Unigel's consent. Another source said that board members rejected this option, arguing that the state-owned firm cannot do this without a proper tender. Petrobras, Unigel and other parties are in dispute over the lease contract. It wasn't immediately clear whether the current proposal included a negotiated resolution between the parties. Reporting by Marta Nogueira, Rodrigo Viga Gaier and Isabel Teles. Editing by Ana Mano & Alison Williams.
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Shortsellers target a wider range of companies before Trump's "Liberation Day"
Hazeltree, a data and technology firm, said that shortsellers had targeted a broader range of equity sectors before President Donald Trump announced his "Liberation Day", or April 2, tariff announcement. They also raised negative bets against a group of large tech stocks. Super Micro Computer was the most popular security. It knocked oil and gas producer Chevron from the top spot it held for two months. Prior to this, tech stocks dominated the top 10 list of most-shorted U.S. Large Caps. Hazeltree reported that only five of the top 10 stocks most shorted in March were tech shares, compared to eight in February. Tim Smith, Hazeltree's managing director for data insights, said: "We saw signs that tariffs were being signaled to markets in March." Our analysis of shorting activities in the Americas suggests short sellers started reducing their exposure to tech in anticipation of full tariff implementation -- a possible sign of an early repositioning. Hazeltree’s list of the top 10 most-shorted shares includes IBM, MicroStrategy and ON Semiconductor. Capital One Financial, sportswear maker Lululemon, and other non-tech stocks. A stock is shorted when shares are borrowed to be sold at a certain price, then repurchased for a lower price. Hazeltree's report stated that the more funds short a bet, then the greater the percentage. Super Micro Computer shares, which are one of many stocks that have been exposed to artificial-intelligence, surged by 45% to reach six-month highs in February, before falling in March. Hazeltree gives a score out of 100 based on how many investors have sold short a particular company's stock. Super Micro Computer's rating in March was 99, up 91 points from February. IBM had a score of 93, compared to 85 in February. MicroStrategy also scored 93 versus 85 in March. Hazeltree reported that Gucci's owner Kering was Europe's top shorted stock for the third consecutive month in March, followed by H&M, a fast-fashion retailer. Hazeltree said that H&M's institutional supply usage rate was the highest at 99%. Hazeltree explained that this metric is the percentage of institutional investor's supply of a particular security being lent. The higher the percentage the greater the demand among investors for borrowing that stock, and the harder it will be to open new short positions. Disco, a Japanese company that makes chipmaking devices, was Asia's most-shorted large cap stock for the third consecutive month. (Reporting and editing by Dhara Ranasinghe, Elaine Hardcastle and Amanda Cooper)
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Japan's crude imports for FY2024 down 7.1%; second consecutive year of decline
The Ministry of Finance (MOF), on Thursday, reported that Japan's crude oil imports cleared by customs in 2024 fell 7.1% from the previous year, and the value of the imported crude oil dropped 5.7%, to 10.65 trillion Japanese yen ($74.7billion), due to the lower oil price. The preliminary data show that Japan, which is the fourth largest crude buyer in the world, imported 2,32 million barrels of crude oil per day (134,67 million kilolitres), for the period ending March 31. The MOF reported that this was the second consecutive decline in value and volume year-over-year. The volume of Japan's LNG imports rose by 1.5% in the past financial year to 65.87 millions metric tons, while the value increased 2% to $6.17 trillion yen. The data revealed that imports of thermal coal used for power generation rose by 7.4%, to 105.46 millions tons. However, the value of the thermal coal imported fell by 11.9%. The MOF reported that crude oil imports for March fell by 13.6%, to 2,19 million bpd (or 10,78 million kilograms). Japan's LNG imports totaled 5,15 million tons in the last month. This is down 7.2% compared to a year ago. The data shows that imports of thermal coal used in power generation rose by 8.8% to 8,31 million tonnes in March. The following is a breakdown of the energy imports in Japan for last month. Volumes of crude oil, petroleum products, gasoline/naphtha, LNG, LPG, and coal are in millions of kilolitres, and values are in millions of yen. FY2024 figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels n/a 25074,903 -3.6% Crude Oil 134.671 10,650,207 -75.7 Oil Products n/a 2 970 054 11.0 (Mogas/Naphtha) 27.988 -0.5 2,141,629 8.1 LNG 65.874 1,5 6,171,814 2. LPG 9.98 0.2 952,291 11. Coal 165.3 1 0 4,282,331 (- 15.8) (Thermal Coal) 105.458 7.4 2,428,864 -11.9 March figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels 1,917 329 -12.5 Crude Oil 10,777 -13.6 805,831 -17.2 Oil Products n/a (Mogas/Naphtha) 2.294 6.2 164,411 0.9 LNG 5.151 -7.468.500 -11.6 LPG 1,192 40,618 44,9 Coal 12.29 -6.4 265,283-31.2
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Copper trades at a low volume as the dollar edge up
The copper price fell in London Thursday, under the pressure of a stronger dollar. However, it remained within a narrow range, despite lower trading volumes before a four-day break for Easter. There was also no sign that the trade war between China and the U.S. had de-escalated. By 1019 GMT, the benchmark three-month price of copper on London Metal Exchange was down by 0.9% to $9,120.50 per metric tonne. Metals that are important for growth have lost 6% this month due to an escalating global trade war. The two biggest economies in the world have imposed triple-digit import duties on each other. This is threatening global demand and growth. In a recent research note, Citi analysts said that "Tariffs may have peaked but de-escalation has not yet been seen." China's Commerce Ministry on Thursday called on the U.S. not to put "extreme pressure" against Beijing, and demanded that any trade negotiations be conducted with respect. However, both sides are still unable to agree on who will initiate these talks. China is the top metals consumer in the world. Citi forecasts that global growth will slow to just 2.1% in 2018, down from a little under 3% the previous year. In 2026, growth is projected to only rebound slightly, to 2.3%. This is because of the continuing effects of U.S. wide tariffs. Since the U.S. announced their tariffs early in April, copper prices have fallen below its major moving averages. These are now at resistance level. The 100-day moving is $9,284. The dollar's rise on Thursday pushed up the price of metals for buyers who use other currencies. LME aluminum fell by 0.3%, to $2.375 per ton. It is already subject to a 25 percent U.S. tariff on imports, and it has fallen 7% this year. Alcoa, a major U.S. producer, said that the U.S. still faces a shortage of 3.6 millions tons of aluminum even if the entire idle smelting capability in the country was restarted. The company expects U.S. Tariffs on Aluminium Imports from Canada will cost it $90 million in the third quarter. Nickel fell 0.6% at $15,595. LME zinc dropped 0.8%, to $2,561 per ton. Lead lost 0.2% to $1,904. Tin rose, however, by 0.6%, to $30,880. The LME will be closed for Easter on Friday and Monday. Reporting by Polina Devlin in London, Editing by Rachna uppal
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Hyundai will suspend EV production due to US tariffs and slow demand in South Korea - Yonhap
Hyundai Motor will temporarily stop production of some electric vehicles in South Korea, Yonhap reported on Thursday. The news agency cited unnamed sources. Yonhap reported that the South Korean automaker will stop production on certain lines at its Ulsan facility, where it produces electric vehicles Ioniq 5 & Kona, from April 24-30. Yonhap said that the suspension is due to the fact that EV orders have dropped sharply from major markets in April after the removal of government EV subsides and U.S. Tariffs on imported cars. Hyundai Motor is not available to comment immediately outside of regular business hours. The Trump administration in the United States announced this month a 25% import tariff on cars and light trucks. Hyundai Motors has announced that it will keep the sticker price of its current model line at the same level for the next two month to allay customer fears that tariffs would impact dealer lots. The program runs until June 2 and follows the South Korean Auto Group's $21 Billion investment in the U.S. announced back in March. Heekyong Ya, Ed Osmond (reporting)
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Indonesian nickel smelter asks for a delay in royalty increases until prices increase
The chairman of the Indonesian Nickel Smelters Association requested that the government delay the new mineral royalties until the nickel price on the London Metal Exchange has risen to $17,000 a metric ton. The LME 3-month nickel contract is currently trading at around $15,600. According to a copy the regulation, Indonesia will begin charging higher royalties of between 14% and 19% depending on the price level on nickel ore production, up from 10%. According to the regulation, nickel matte and nickel pig iron, both semi-refined products, will be subject to a royalty of 5% to 7.5%, whereas nickel pigiron will only have a royalty of 3.5% to 5.5%. The regulation said that nickel matte would be charged a 3.5% to 5.5% royalty, compared to the current nickel pig iron single tariff of 5% and nickel pigiron's current single tariff of 2%. Alexander Barus (FINI), chairman of the smelters' group Indonesia Nickel Industry Forum, told officials from the mining ministry that "we support" the government's plan for royalty payments. He said that the group has asked the Energy and Mineral Resources Ministry for consideration to wait until the nickel price on the LME reaches at least $17,000 per tonne, which would allow the companies to cover their costs of the royalty increase. BMI researchers said that earlier this month they had reduced their nickel price forecast for this year, from an average annual of $17,000 per ton to $15,000 due to conditions of oversupply. Meanwhile, President Trump's policies on trade have added to the risks. The prices of our products, like stainless steel, nickel pig-iron and ferronickel are also falling now. Barus said that the royalties would be a burden. Indonesia Nickel Miner Association has stated that nickel miners have already been hit by higher fuel costs after the government eliminated subsidies for biodiesel in early this year. APNI also asked for a delay in the implementation of new fees. The Energy and Mineral Resources Ministry's senior official in charge of mining did not respond immediately to a comment request. Other products, such as refined tin, copper concentrate and copper ore will also see a rise in royalties. The government had previously stated that the new royalty policy aimed to improve industry governance. The government's deficit is growing due to the drop in tax revenues and increased spending on President Prabowo's flagship programs. (Reporting and editing by David Evans; Fransiska nangoy)
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Officials say that three people were killed in an attack by Russia on the south of Ukraine
Local authorities reported that Russian missiles and drones killed three people and injured ten more in Ukraine's southern region on Thursday after an overnight barrage. The regional governor announced on Telegram that two men aged 56 and 60 were killed and five others were injured in an artillery attack on Nikopol. He said that the attack caused a fire, damaged a civilian infrastructure and a store. The mayor of Kherson said that one person died during an airstrike by the Russians on Kherson. A teenager and four adults were also injured. Moscow's forces frequently attack both cities by their positions on the other side of the Dnipro River. The Ukrainian air force claimed that Russia launched five missiles, and 75 drones in an overnight attack. Meanwhile, Russia claimed to have destroyed or intercepted seventy-one Ukrainian drones across six Russian regions. The violence continues despite President Donald Trump’s attempts to arrange a truce in the three-year old war that was sparked by Russia’s total invasion of Ukraine. On Thursday, top Ukrainian officials visited Paris in an unannounced trip. They were there to attend talks between European and U.S. officials on Ukraine.
Stocks and oil drop as US-China trade war escalates
The major stock indexes declined on Tuesday, as the trade conflict between the United States of America and China intensified. Oil prices and the U.S. Dollar also fell.
The United States has said
104% duties
Imports from China are subject to a ban that will go into effect just after midnight. News of the slowing economy and rising inflation has caused stocks to plummet since last week.
According to LSEG, S&P 500 companies lost $5.8 trillion since Donald Trump announced tariffs late on Wednesday. This is the largest four-day decline since the benchmark was established in the 1950s.
The U.S. Treasury curve steepened to its highest level since February 2022 as the longer-dated yields rose on supply concerns.
Wall Street saw the S&P 500 close below 5,000 for almost a full year. The stock market had opened the day sharply higher amid investor optimism about Washington's willingness to negotiate some of its aggressive trade tariffs.
"People wanted optimism and realized that they had no good reason to do so," said Melissa Brown. She is the managing director of investment decision research at SimCorp.
The Cboe Volatility Index climbed for the fourth consecutive session, and reached its highest level since April 1, 2019.
Treasury Secretary Scott Bessent stated that the Trump administration is also negotiating trade deals with other countries, such as Japan. The discussions were a result of numerous calls from different countries.
The Dow Jones Industrial Average dropped 320.01 or 0.84% to 37,645.59; the S&P 500 declined 79.48 or 1.57% to 4,982.77; and the Nasdaq Composite lost 335.35 or 2.15% to 15,267.91.
The MSCI index of global stocks fell by 2.52 points or 0.34% to 742.96. The pan-European STOXX 600 rose by 2.72%.
Investors anticipate the release of U.S. earnings quarterly reports in this week.
Adam Sarhan of 50 Park Investments, New York, stated that positive results could be a catalyst for stocks.
JPMorgan Chase will be the first to report results, followed by Citigroup and Wells Fargo. Jamie Dimon, JPMorgan Chase's CEO, has warned trade wars can have long-lasting negative effects. These include inflation and recession.
The curve between the yields of two-year and 10-year notes steepened to 57 basis point on a volatile trading day.
The benchmark yield for the 10-year note rose to a 11-day-high on concerns about a weak demand for U.S. government bonds with longer maturities before Wednesday's sale.
The yield on the 10-year bond was up 12.6% basis points for the day, at 4.283%. It dropped to 3.86%, its lowest level since October 4.
The yield on the two-year interest rate sensitive bond reversed a previous increase, falling 2.3 basis points and reaching 3.715%. On Monday, it had fallen to 3.435%, its lowest level since September 2022.
After reports that German parties had formed a coalition, the euro rose. The U.S. Dollar fell against other major currencies while China's offshore Yuan reached a new record low. The reports also led to a rise in European equity index futures.
Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government, NTV reported. Two people who are familiar with the matter have denied that any deal has been made.
The dollar has been weakened against major currencies due to the turmoil caused by tariffs.
The dollar index fell by 0.48%, to 102.92, measuring the greenback in relation to a basket including the yen, the euro and other currencies.
The U.S.-China Trade War escalated, and oil prices fell amid recession fears.
Brent futures dropped $1.39 or 2.16% to settle at $62.82 per barrel. U.S. West Texas Intermediate Crude Futures fell $1.12 or 1.85% to settle at $59.58.
(source: Reuters)