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Asian stocks fall as concerns about growth cloud outlook
The stock market in Asia dropped on Wednesday following the declines on Wall Street, as comments by Federal Reserve chair Jerome Powell provided little insight into future interest rate trends and economic data fueled concerns about slowing global growth. MSCI's broadest Asia-Pacific index outside Japan fell 0.4% at mid-morning trading, after U.S. shares ended the previous session with a lower close. The S&P500 was down by 0.6%, its largest one-day drop in three weeks. Australian shares, down 1% in the region, extended losses following a larger-than-expected increase in consumer prices for August. U.S. futures for stocks were flat. After two days of declining, the greenback has stabilised. The dollar index is up 0.1% to 97.301. The dollar rose 0.1% to 147.735, as traders analyzed messages from Federal Reserve officials. Westpac analysts noted in a recent research note that Powell's speech highlighted the fact that "near-term inflation risks are tilted upwards and risks to employment are to the downwards", highlighting the difficulties of balancing Fed's dual mission in the current climate. After hitting a record high, Asian stocks are taking a breather. They remain on course to achieve their best performance this month in over a year. This is due to a weakening dollar, an increase in regional technology shares, and the Federal Reserve's policy of easing. A private sector survey revealed on Wednesday that the Nikkei index in Japan fell 0.5% as manufacturing sector activity dropped at its fastest pace in 6 months in September. This was due to further declines in orders. The Fed funds futures now indicate a 93% probability of a rate reduction at the October meeting of the U.S. Central Bank, up from an 89.8% chance on Tuesday. Treasury bonds from the United States attracted bids on all curves. The yield on the benchmark 10-year Treasury note fell to 4,1061% compared to its U.S. closing of 4,118% on February 2. The two-year rate, which increases with traders' expectation of higher Fed fund rates, dropped to 3.5673% from a U.S. closing of 3.592%. The U.S. economy data released Tuesday has stoked concerns about growth. S&P Global's purchasing managers' index data shows that U.S. businesses slowed down for the second consecutive month in September. Citi analysts stated in a note that "the S&P PMIs are softer than the preliminary September release but remain in expansion, and both are within the range of recent months." They said that the headline figures were misleading because they did not reflect the weakness of the details. Analysts said that the composite output price index had fallen to its lowest level since April. Anecdotes indicate that companies are finding it difficult to pass on higher costs to customers due to weaker demand and increased competition. Brent crude oil prices were last up 0.4%, at $67.87 a barrel. This was after an agreement to resume exports out of Iraq's Kurdistan fell through, which calmed some investor fears that a restart would worsen concerns about global oversupply. After hitting a record-high on Tuesday, spot gold was down by 0.2% to $3,757.49 an ounce.
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Anson, Australia's lithium supplier, signs a deal with LG Energy Solution. Shares soar
Anson Resources, an Australian miner, signed a deal on Wednesday with LG Energy Solution in South Korea for the supply and purchase of battery-grade Lithium Carbonate. This led to a nearly 25% increase in its share price. The agreement stipulates that the South Korean battery maker will purchase up to 4,000 dry tons of lithium-carbonate per year from Anson's Paradox Basin project in southern Utah in the United States. Supply is expected to begin in 2028. The initial term of the agreement is five years, with an option to extend it by another five years. The partnership is expected to help Anson with its debt financing efforts when the final investment decision is made. Bruce Richardson, CEO of Anson Energy Solution, said: "This offtake agreement lays the foundation for a partnership that will last a very long time. We are proud to supply LG Energy Solution with low-cost lithium made in the Paradox Basin." Anson's shares surged up to 24.7% as of 0045 GMT. This was the biggest intraday gain it had seen in over two months. The benchmark ASX 200 fell 0.6%. The price of lithium, an important material used in the batteries of electric vehicles, has been in a downward spiral for over a year due to a slower than expected uptake. Anson has made a "company-making deal" but it was bound to happen somewhere. Michael McCarthy, CEO for Australia and New Zealand of trading platform Moomoo, said that LG had won the race and that these commitments indicate a firming up of U.S. batteries. McCarthy said that the deal shows, in general terms, that battery technology is still a major component. (Reporting and editing by Alan Barona, Rashmi aich and Kumar Tanishk from Bengaluru)
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Canadian PM Carney anticipates meeting Chinese President Xi 'at the appropriate time'
Mark Carney, the Canadian Prime Minister, said on Tuesday that he discussed steel tariffs with Chinese Premier Li Qiang and that he expects to meet Chinese President Xi Jinping "at an appropriate time." Carney, speaking to reporters in New York on Tuesday, said that there was some alignment in tariffs between the United States and China. "We had a very open discussion with our Chinese colleagues and Premier about this and the reasons behind it," Carney explained. Carney and Li discussed other topics, including "agriculture and agrifood products such as canola as well as seafood, and electric vehicles," according to the readout released by Carney’s office. Carney stated that there were "very productive discussions" between Chinese officials. "These discussions will intensify." "I will be expecting, at the appropriate moment, to meet with President Xi Jinping, but continue this dialogue with Premier," he stated. Christian Martinez, Ryan Patrick Jones Ismail Shakil, and Michael Perry contributed to this report.
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The death toll in eastern Taiwan has risen to 14, after a typhoon unleashed floods
The island's Fire Department reported on Wednesday that 14 people died after a barrier mountain lake overflowed during a typhoon and sent a wall into a nearby town. The government announced that two people were dead and 30 more missing on Tuesday evening. An official from the fire department said that more details will be released later on Wednesday. The barrier lake formed by landslides caused by heavy rains in the sparsely-populated east of Taiwan bursts its banks Tuesday afternoon, sending a wall into Guangfu Township. Wang Tse An said that his entire village, Dama, which is home to about 1,000 people, and a part of the township had been inundated and many were still stuck. "It is chaotic right now." Supplies are needed, but they can't make it through right now. Wang, Wang, the village head, said that it was crucial to get everyone out of harm's way and into shelters. "There's mud and stones everywhere." "Some flooding has subsided, but some remains," said he. Rescue teams from cities and counties in Taiwan have been mobilised to Hualien. According to data from the government, around 60% of Guangfu’s 8,500 residents, or about 5,200 people, chose "vertical escape" by taking refuge on the upper floors of their homes. The majority of those who did not choose vertical evacuation left the area, and stayed at home with their families. The government estimated that the barrier lake held 91 million tonnes, which is enough water to fill 36,000 Olympic swimming pools or a reservoir the size of southern Taiwan. The government reported that 60 million tonnes (60,000,000 litres) of water were released when the lake overflowed. Super Typhoon Ragasa's outer rim has been slapping Taiwan since Monday. It is now heading to the south Chinese coast, and the financial hub of Hong Kong. Taiwan recorded around 70 cm (28 inches) of rain in its east because of the typhoon. In 2009, the Typhoon Morakot ravaged southern Taiwan. It killed 700 people and caused damage up to $3 billion. (Reporting and writing by Yimou Le; editing by Shri Navaratnam Christopher Cushing, Lincoln Feast and Ben Blanchard)
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The FT reports that grid operator TenneT will raise up to $11.81 Billion from sovereign funds.
The Financial Times reported that TenneT, the state-owned Dutch operator of power grids, plans to raise as much as 10 billion euros ($11.81billion) through a private placement. According to the FT, citing sources familiar with the plans, the deal values the grid-operator at around 40 billion euros including the existing debt. The Dutch state retains a stake in the order of 55%. The newspaper reported that a deal could be announced on Wednesday. According to the report, a Norwegian sovereign wealth fund managed by Norges Bank Investment Management, a Dutch pension funds and an Asian sovereign fund will be investing in the placement. It is expected to conclude in 2026. The newspaper reported that the German government was considering an offer to buy 25% of TenneT’s German unit. TenneT and Dutch state were also open to German investment in upcoming negotiations. TenneT, the Dutch Finance Ministry and NBIM declined to comment. The Netherlands is a country in Europe. set to decide This month, the company will decide whether to sell a minority stake in TenneT's German arm or pursue a part-IPO. It could be the biggest deal in Europe this year. After a failed partial sale of TenneT Germany to the German state lender KfW last year, the Dutch government is now embarking on a two-track process. TenneT Germany is the largest high-voltage grid operator in Germany. It manages an extensive network that spans more than 14000 kilometers.
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Trump wants a piece of the company that runs America's largest lithium mine
Two people with knowledge of the talks said that the Trump administration wants to take a 10% equity stake in Lithium Americas when it renegotiates the terms of its $2.26 billion Energy Department Loan for General Motors' Thacker Pass Lithium Project. The Trump administration has intervened directly in American economics by taking stakes in Intel and MP Materials, as well as other U.S. technology and minerals companies to promote industries that it deems critical to national defense. The Thacker Pass Mine, which is expected to be the largest lithium source in the Western Hemisphere when it opens its doors in 2028 with over 600 contractors on the site about 25 miles (40km) south of Nevada’s border with Oregon, has been under construction since nearly a full year. Thacker Pass has been deemed a key component in Washington's efforts to increase the U.S. lithium production, which is used to produce batteries for electric cars and other electronic devices. "President Trump is in favor of this project." "He wants it to be successful and fair for taxpayers," said a White House representative. "But free money doesn't exist." In the aftermarket, shares of Lithium Americas increased by about 80% from $3 to $5.54 per share. Both Republicans and Democrats have long praised the project as a way to increase U.S. production of critical minerals and reduce reliance on China. Albemarle, a Nevada-based company, produces less than 5 metric tons (5,000 pounds) of lithium. Thacker Pass’s first phase will produce 40,000 metric tonnes of battery-quality Lithium Carbonate per year. This is enough to power up to 800,000. China is the world's third largest producer of lithium, after Australia and Chile, with an annual production of more than 40,000 tons. China's influence in the refining industry is much greater, as it converts over 75% (of all lithium) into battery-grade materials. Trump approved the $2.93 billion project at the end his first term. Biden administration officials closed the loan last year from the Department of Energy’s Loan Programs Office. The loan is for 24 years, and the interest rate will be based on U.S. Treasury rates at each draw. Sources say that Lithium Americas had been scheduled to draw its first loan payment earlier this month, but Trump officials tried to renegotiate the terms due to concerns over the company's inability to repay the loan because of low lithium prices caused by Chinese overproduction. Washington Free Beacon was the first to report on discussions about the potential reevaluation of the loan. The request by the administration for an equity stake was not previously reported. GM has the right, after investing $625 million for a stake of 38% in the mine, to purchase all the lithium produced by the first phase, and a portion of the second phase, for 20 years. However, Trump officials want a guarantee from GM that they will buy the material. According to a source, the equity request was made during recent discussions over the loan amortization schedule. Lithium Americas proposed to change the time frame for repayment of a part of the principle, but not the timeline or interest total that would be received by the Loan Programs Office. According to a source, Lithium Americas responded to this request by offering the government warrants at no cost that would equal 5% to 10% its common shares. It also offered funds to cover fees that may be incurred if the amortization schedule is changed. According to a source, Trump officials are also pushing GM to relinquish control of parts of the project to Washington. GM, who relies on Thacker to provide a large portion of its lithium requirements for its electrification drive, called the loan a “necessary component of financing to commercialize an important national resource” and noted that Trump had "strongly supported” the mine during his first term. A GM spokesperson said, "We are confident in this project which supports the goals of the administration." Lithium Americas refused to comment on ongoing negotiations but stated: "We are in active discussions with (Department of Energy), and our partner GM and will provide an updated at the appropriate time." Washington has put safeguards in place as part of its original loan terms to protect its investment. These include several clauses which give the government the choice to take over a project if there are delays or major cost overruns. Lithium Americas is one of many companies - such as ioneer, Exxon Mobil and Standard Lithium - that are developing U.S. Lithium projects. (Reporting and editing by Veronica Brown, Michael Learmonth and Jarrett Renshaw)
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Trump Administration seeks equity stakes in Lithium Americas during loan talks
Two people with knowledge of the talks said that the Trump administration wants to take a 10% equity stake in Lithium Americas when it renegotiates the terms of its $2.26 billion Energy Department Loan for General Motors' Thacker Pass Lithium Project. The Trump administration has intervened directly in American economics by taking stakes in Intel and MP Materials, as well as other U.S. technology and minerals companies to promote industries that it deems critical to national defense. The Thacker Pass Mine, which is expected to be the largest lithium source in the Western Hemisphere when it opens its doors in 2028 with over 600 contractors on the site about 25 miles (40km) south of Nevada’s border with Oregon, has been under construction since nearly a full year. Thacker Pass has been a key component in Washington's efforts to increase the U.S. lithium production, which is used to produce batteries for electric cars and other electronic devices. "President Trump is in favor of this project." "He wants it to be successful and fair for taxpayers", a White House representative told. "But free money doesn't exist." In the aftermarket, shares of Lithium Americas increased by about 80% from $3 to $5.54 per share. Both Republicans and Democrats have long praised the project as a way to increase U.S. production of critical minerals and reduce reliance on China. Albemarle, a Nevada-based company, produces less than 5 metric tons (5,000 pounds) of lithium. Thacker Pass’s first phase will produce 40,000 metric tonnes of battery-quality Lithium Carbonate per year. This is enough to power up to 800,000. China is the world's third largest producer of lithium, after Australia and Chile, with an annual production of more than 40,000 tons. China has a greater influence in the refining process, where over 75% world lithium is converted into battery grade material. Trump approved the $2.93 billion project for Thacker Pass at the end his first term. Biden administration officials closed the loan last year from the Department of Energy’s Loan Programs Office. The loan is for 24 years, and the interest rate will be based on U.S. Treasury rates at each draw. Sources say that Lithium Americas had been scheduled to draw its first loan payment earlier this month, but Trump officials tried to renegotiate the terms due to concerns over the company's inability to repay the loan because of low lithium prices caused by Chinese overproduction. Washington Free Beacon was the first to report on discussions about the potential reevaluation of the loan. The request by the administration for an equity stake was not previously reported. GM has the right, after investing $625 million for a stake of 38% in the mine, to purchase all the lithium produced by the first phase, and a portion of the second phase, for the next 20 years. However, Trump officials want a guarantee from GM that they will buy the material. According to a source, the equity request was made during recent discussions over the loan amortization schedule. Lithium Americas proposed to change the time frame for repayment of part of the principle, but not the timeline or interest total that would be received by the Loan Programs Office. According to a source, Lithium Americas responded to this request by offering the government warrants at no cost that would equal 5% to 10% its common shares. It also offered funds to cover fees that may be incurred if the amortization schedule is changed. According to a source, Trump officials are also pushing for GM to relinquish control of parts of the project to Washington. GM, who relies on Thacker to provide a large portion of its lithium requirements for its electrification drive, called the loan a “necessary component of financing to commercialize an important national resource” and noted that Trump had "strongly supported” the mine during his first term. A GM spokesperson said, "We are confident in this project which supports the goals of the administration." Lithium Americas refused to comment on ongoing negotiations but stated: "We are in active discussions with (Department of Energy), and our partner GM and will provide a further update when appropriate." Washington has put safeguards in place as part of its original loan terms to protect its investment. These include several clauses which give the government an option to take the project over if the project is delayed or suffers major cost overruns. Lithium Americas is one of many companies - such as ioneer, Exxon Mobil and Standard Lithium - that are developing U.S. Lithium projects. (Reporting and editing by Veronica Brown, Michael Learmonth and Jarrett Renshaw)
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Trump Administration seeks equity stakes in Lithium Americas during loan talks
Two people with knowledge of the talks said that the Trump administration wants to take a 10% equity stake in Lithium Americas when it renegotiates the terms of its $2.26 billion Energy Department Loan for the Thacker Pass Lithium Project with General Motors. This is just the latest instance of the Trump administration directly intervening in the American economy, as it has done with its stakes in Intel and MP Materials as well as other U.S. technology and minerals companies to promote industries that it views as being critical to national safety. The Thacker Pass Mine, which is expected to be the largest lithium source in the Western Hemisphere when it opens its doors in 2028 with over 600 contractors on the site about 25 miles (40km) south of Nevada’s border with Oregon, has been under construction since nearly a full year. Thacker Pass has been hailed as an important part of Washington’s efforts to increase the U.S. lithium production, which is used in batteries for electric cars and other electronic devices. "President Trump is in favor of this project." "He wants it to be successful and fair for taxpayers," said a White House representative. "But free money doesn't exist." Both Republicans and Democrats have long praised the project as a way to increase U.S. production of critical minerals and reduce reliance on China. Albemarle, a Nevada-based company, produces less than 5 metric tons (5,000 pounds) of lithium. Thacker Pass’s first phase will produce 40,000 metric tonnes of battery-quality Lithium Carbonate per year. This is enough to power up to 800,000. China is the world's third largest producer of lithium, after Australia and Chile, with an annual production of more than 40,000 tons. China has a greater influence in the refining process, where over 75% world lithium is converted into battery grade material. Trump approved the $2.93 billion project for Thacker Pass at the end his first term. Biden administration officials closed the loan last year from the Department of Energy’s Loan Programs Office. The loan is for 24 years, and the interest rate will be based on U.S. Treasury rates at each draw. Sources say that Lithium Americas had been scheduled to draw its first loan payment earlier this month, but Trump officials tried to renegotiate the terms due to concerns over the company's inability to repay the loan because of low lithium prices caused by Chinese overproduction. Washington Free Beacon was the first to report on discussions about the potential reevaluation of the loan. The request by the administration for an equity stake was not previously reported. GM has the right, after investing $625 million for a stake of 38% in the project last year, to purchase all the lithium produced by the first phase, and a portion of the second phase, for 20 years. However, Trump officials now want a guarantee from GM that they will buy the material, according to sources. According to a source, the equity request was made during recent discussions over the loan amortization schedule. Lithium Americas proposed to change the time frame for repayment of the principle, but not the timeline or interest rate that would be paid to the Loan Programs Office. According to a source, Lithium Americas responded to this request by offering the government warrants at no cost that would equal 5% to 10% its common shares. It also offered funds to cover fees that may be incurred if the amortization schedule is changed. According to a source, Trump officials are also pushing for GM to relinquish control of parts of the project to Washington. GM, who relies on Thacker to provide a large portion of its lithium requirements for its electrification drive, called the loan a “necessary component of financing to commercialize an important national resource” and noted that Trump had "strongly supported” the mine during his first term. A GM spokesperson said, "We are confident in this project which supports the goals of the administration." Lithium Americas refused to comment on ongoing negotiations but stated: "We are in active discussions with (Department of Energy), and our partner GM and will provide a further update when appropriate." Washington has put safeguards in place as part of its original loan terms to protect its investment. These include several clauses which give the government an option to take the project over if the project is delayed or suffers major cost overruns. Lithium Americas is one of many companies - such as ioneer, Exxon Mobil and Standard Lithium - that are developing U.S. Lithium projects. (Reporting and editing by Veronica Brown, Michael Learmonth and Jarrett Renshaw)
Asian stocks fall after Wall Street's overnight decline
The stock market in Asia started the day with a downturn on Wednesday after Wall Street saw a decline overnight. This was due to comments made by Federal Reserve chair Jerome Powell, who gave few hints about the future of interest rates.
MSCI's broadest Asia-Pacific index outside Japan fell 0.2% early in the morning after U.S. shares ended their previous session with a lower close. The S&P500 was down by 0.6%. This is the biggest single-day drop in three weeks.
Australian shares were the first to fall in early Asian trading, down 0.7% before today's release of CPI figures. Japan's Nikkei index also fell 0.4%. U.S. futures for stocks were flat.
After two consecutive days of declines, the greenback stabilized but remained defensive. The U.S. Dollar index was last up 0.1% to 97.301. The dollar last fell 0.1% against the yen at 147.575 as traders analyzed messages from Federal Reserve officials.
Westpac analysts noted in a recent research note that Powell's speech highlighted the fact that "near-term inflation risks are tilted upwards and risks to employment are to the downwards", highlighting the difficulties of balancing Fed's dual mission in the current climate.
After hitting a four year high, Asian stocks are taking a breather. They remain on course to achieve their best month in a decade this month, thanks to a weaker dollar, an increase in regional technology shares, and the Federal Reserve's policy of easing.
The Fed funds futures now indicate a 93% probability of a rate reduction at the October meeting of the U.S. Central Bank, up from an 89.8% chance on Tuesday.
Treasury bonds from the United States attracted bids on all curves. The yield on the benchmark 10-year Treasury note fell to 4,1061%, down from its U.S. closing of 4.118% Tuesday. The two-year rate, which increases with traders' expectation of higher Fed fund rates, dropped to 3.5673% from a U.S. closing of 3.592%.
The U.S. economy data released Tuesday has stoked concerns about growth. S&P Global's purchasing managers' index data shows that U.S. businesses slowed down for the second consecutive month in September.
Citi analysts stated in a note that "the S&P PMIs are softer than the preliminary September release but remain in expansion, and both remain within the range of last few months." They said that the headline figures were misleading because they did not reflect the weakness of the details.
Analysts said that the composite output price index had fallen to its lowest level since April. Anecdotes indicate that companies are finding it difficult to pass on higher costs to customers due to weaker demand and increased competition.
Brent crude oil prices last rose 0.3% to $67.86 a barrel after an agreement to resume exports out of Iraq's Kurdistan fell through. This pacified some investors who were worried that the restart could exacerbate concerns about global oversupply.
After hitting a record-high on Tuesday, spot gold was down by 0.1% to $3760.90 an ounce.
(source: Reuters)