Latest News
-
Australia and New Zealand prepare for heat and fierce winds
The weather in Australia and New Zealand will continue to be hot and windy this week. On Wednesday, the meteorological agencies warned that conditions would worsen over the next few days. MetService, New Zealand's weather forecaster, said that gusts of up to 150 kilometres per hour (93 miles an hour) could be experienced along the South Island’s east coast on Thursday, and as high as 140 kilometres per hour in Wellington, New Zealand’s capital. Authorities warned people to stay inside, avoid traveling and prepare for potential power and communication outages. The warnings come after strong winds and heavy rainfall on Tuesday, which left thousands of people without power. A man was killed in Wellington Park when a branch from a tree fell on him. Winds on Tuesday fanned wildfires in Hawke's Bay, on the North Island and near Kaikoura, on the South Island. Ken Cooper, Assistant National Commander of Fire and Emergency New Zealand, said that 14 buildings were destroyed near Kaikoura. This included five homes. The area remains closed and there are evacuation centres. Officials haven't estimated the size of the fire. FENZ reported that in Hawke's Bay, they were making progress on the four vegetation fires despite the windy conditions. They were also monitoring the weather. The Bureau of Meteorology in Australia said that extreme heat could be a record-breaker across the central regions, bringing heatwaves and increased fire danger. Sydney will reach 39 degrees Celsius on Wednesday. (Reporting and editing by Stephen Coates; Lucy Craymer)
-
Celebrities join Prince William of the UK in Brazil to celebrate Earthshot Prize
The Prince of Wales and the former Formula One champion Sebastian Vettel are among the celebrities who will join him at his award ceremony in Brazil next month for his multimillion dollar environmental prize. In 2020, the British heir-to-the-throne established the Earthshot Prize with the goal of finding innovative solutions for pressing environmental issues. The winners of this year's Earthshot Prize will be announced on November 5 at an event in Rio de Janeiro that is sure to attract a lot of attention. The night's performers will include Brazilian musicians Gilberto Gil and Seu Jorge, as well as Canadian pop singer Shawn Mendes, and Minogue, who was selected by William's dad King Charles to be an artist whose song brings him joy. Organisers announced this on Wednesday. Luciano Huck, a Brazilian TV host, will be the event's host. Other presenters include Brazilian gymnast Rebeca André, Brazil's top Olympian Cafu and four-time F1 World Champion Vettel. In 2022, the German driver who was increasingly vocal about sustainability and environmental issues, saying that climate change made him doubt his job, retired. Winners receive cash prizes for their projects Earthshot's CEO Jason Knauf stated that "with two weeks left, we are delighted to announce the support from global artists, performers and Brazilian talent who will be joining us in Rio." The organizers also released a trailer titled "Meet the World's True Action Heroes", which was voiced in Hollywood by actor Matthew McConaughey. Earthshot aims to find innovative solutions to climate change and other environmental issues. Five winners will receive 1 million pounds ($1.3million) each for their projects. William will represent his father at the UN Climate Summit COP30 in Brazil. William has been campaigning on environmental issues since more than 50 years. (Reporting and Editing by Ros Russel)
-
Vale expects iron ore production to reach its highest level in 2025 after the strongest quarter since 2018.
Vale, a Brazilian mining company, reported Tuesday that it had achieved its highest quarterly production of iron ore since 2018. It also said that its three main business units are on track to meet the upper bands of their 2025 production targets. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons of steelmaking material during the third quarter. This is a 3.8% rise on an annual basis and the highest production since the final three months of 2018. Vale's performance was boosted both by the record-breaking production in the S11D project, located in the north of Brazil, and the ramping up of other projects. Iron ore production is expected to reach 325-350 million tons by 2025, according to the company. Production totaled 245.7 millions tons in the first nine months. Vale's sales and output report stated that its iron ore and copper businesses are "tracking towards the upper-end of the production guidance ranges for 2025." Sales of iron ore including pellets rose by 5.1% on an annual basis to 86.8 million tons during the third quarter. The realized price of iron fines also increased by 4.2%, to $94.4 per tonne. Reporting by Andre Romani, Sao Paulo; Editing by Natalia Siniawski & Richard Chang
-
Gold drops 5%, but stocks are mostly flat. Earnings are positive.
The major stock indexes were mostly flat on Tuesday. Upbeat results and projections from leading U.S. companies provided some support. Gold prices fell more than 5%, as investors took profit after a recent rally. After conservative Sanae Tachichi was elected Japan's Prime Minister, the yen dropped to its lowest level in a week. The Nikkei stock index closed at a new record high in Japan on Tuesday. Spot gold dropped 5.31%, to $4,123.85 per ounce. This was the steepest percentage decline since August 2020. Prices reached an all-time high of $4,381.21 Monday and have risen by about 60% in this year. U.S. president Donald Trump said he expects to reach a fair deal with Chinese President Xi Jinping next week when they meet in South Korea. He also played down the risk of a conflict over Taiwan. Investor sentiment was also boosted by the prospect of a solution, as well as a deal made between Australia and the United States to supply rare earth minerals. Coca-Cola shares rose after it posted earnings that exceeded analysts' expectations. GM also saw a rise in its share price after raising its forecast for the full year. Michael Green, chief strategy at Simplify Asset Management, Philadelphia, says that the reaction to earnings surprises has been modest. Green stated that "the earnings are better than anticipated as companies continue to grow slightly in terms margins. This suggests (companies have to) be passing on the tariffs or pushing them back onto the Importers." The Dow Jones Industrial Average increased 218.16 points or 0.47% to 46,924.74, while the S&P 500 gained 0.22 points to 6,735.35, remaining essentially unchanged. Meanwhile, the Nasdaq Composite dropped 36.88 points or 0.16% to 22,953.67. The MSCI index of global stocks fell by 0.84 points or 0.08% to 994.85. The STOXX 600 Index rose by 0.21%. The dollar gained 0.81% against the Japanese yen to 151.96. Takaichi, Japan's first woman prime minister and leader in the ruling Liberal Democratic Party, became Japan's premier on Tuesday. Traders bet on Takaichi’s government to muddy interest rate forecasts and increase fiscal spending. Dollar also rose in relation to other currencies. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) was up 0.35% at 98.95. Meanwhile, the euro fell 0.33% to $1.1602. Investors lowered U.S. Treasury rates as they awaited the Federal Reserve's next move. According to market expectations, the Fed could cut rates up to three times in the next six-months, but the European Central Bank is unlikely, when it meets next week, ever to do so. The yield on the benchmark U.S. 10 year notes dropped 2.9 basis points from late Monday to 3.959%. Investor confidence took a hit last week when a series of bad loans in regional U.S. banks sparked concerns about credit risks, which threatened to spread into the wider markets. Risk assets were also affected by the prolonged U.S. shutdown. The oil prices finished higher. Brent crude futures rose by 31 cents or 0.5% to settle at $61.32 per barrel. U.S. West Texas intermediate crude futures expired at Tuesday's settlement and closed 30 cents or 0.5% higher at $57.82. (Reporting and editing by Will Dunham and Zieminski; Additional reporting and editing by Amanda Cooper and Pranav Kashyap in London, and Twesha and Twesha Dhikshit in Bengaluru)
-
US wants 1 million barrels for Strategic Petroleum Reserve
The U.S. Department of Energy announced on Tuesday that it was looking to purchase 1 million barrels of oil to be delivered to the Strategic Petroleum Reserve. It is hoping to take advantage of the relatively low prices of oil to replenish the stockpile. Former President Joe Biden's administration sold record amounts from the SPR. This included a 180 million barrel sale in 2022, after Russia invaded Ukraine, one of world's largest oil producers. The reserve has a capacity of 700 million barrels, but currently holds nearly 409 millions. The administration of President Donald Trump has sought to replenish the SPR but has been hindered by the lack of funds as well as the ongoing maintenance of the reserve. It is located in a series hollowed out salt caverns along the Texas and Louisiana coastlines. Pumps, pipes, and other SPR above-ground infrastructure are exposed to salty, corrosive air. Trump's tax-and-spending bill included $171 million to purchase and maintain SPR oil, a much smaller amount than the original $1.3 billion. It is likely that new legislation will be needed to purchase more oil for SPR. Energy Secretary Chris Wright stated that Trump is working with Congress to replenish the SPR. Wright stated that while this process will not be completed overnight, it is an important step towards strengthening our energy security. On Monday, both the Brent international benchmark and the WTI U.S. benchmark had reached their lowest levels since the beginning of May. This was due to record U.S. production of oil and the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies that they would continue with the planned supply increases. WTI crude futures closed Tuesday at $57.82 per barrel, up 30 cents. The deadline for submitting bids to the SPR is October 28. (Reporting and editing by Chris Reese, Lisa Shumaker, and Jasper Ward. Additional reporting by Timothy Gardner.
-
Citgo auction: Bidders and creditors fight in US court
Bidders pursue the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum Creditors waiting to receive proceeds from the court ordered auction clashed on Tuesday in Delaware over which offer would be approved at the end of two years. The court is trying its best to finish the auction in order to compensate up 15 creditors for defaults on debts and expropriations that occurred in Venezuela. Citgo Holding, Citgo's parent company, was found responsible for Venezuela's debt in the eight-year long case. Citgo and Venezuela lawyers asked the court to reject the $5.9 billion offer of an affiliate of Elliott Investment Management because of its "low price", which was lower than a rival bid by a subsidiary Gold Reserve, and that the sale process is "defective." An officer in charge of the auction recommended that Elliott's Amber Energy bid be accepted, after previously supporting Gold Reserve. The court's marketing efforts were defended by Robert Pincus, a court officer. Amber's offer, he said, implies an estimated business value of $9.5 billion. It also offers the best combination between price and likelihood that the transaction will be completed. Amber's proposal includes a separate agreement to pay $2.1billion to holders of Venezuelan bonds that have defaulted. The agreement only lasts until early December. Counsels for Amber, Pincus and the Court have asked the court to select a winner as soon as possible. This week, Delaware Judge Leonard Stark heard arguments regarding motions filed by Venezuela or Gold Reserve seeking to disqualify Stark, court officer Pincus, and two advisory firms for alleged conflicts of interest. The court also heard the final arguments about the bids. Nathan Eimer said that Amber's offer "is so low...that it shocks this court's conscience and cannot be confirmed" during the hearing. Gold Reserve asked the court also to reject Amber’s bid in favor of the offer made by its subsidiary, which was about $2 billion more expensive but did not include a payment agreement with the Venezuelan bondholders. CREDITORS V BONDHOLDERS Gold Reserve intends to divide auction proceeds between a greater number of Delaware creditors, rather than settle the bondholders claim. This is because a New York court has yet to resolve the validity of the notes. Matthew Kirtland said that it would be an injustice if a significant amount of money was transferred from the attached judgement creditors to the 2020 bondholders based on a security or pledge instrument which might be invalid. Since the U.S. imposed sanctions on Venezuela in 2019, Citgo severed ties with its ultimate parent, Caracas-headquartered oil company PDVSA, and is now controlled by boards appointed by an opposition-led congress. Both the government of President Nicolas Maduro and the opposition political party reject the auction. The Treasury Department of the United States, which shielded Citgo against creditors in recent years must approve the winner.
-
Oliver Bowen, Glencore's global naphtha head, will join rival Vitol sources claim
Four sources said on Tuesday that Oliver Bowen, Glencore's global director of naphtha trade, was set to leave the company for Vitol. He is the latest high-ranking trader to leave the London listed commodities trading and mining firm since recent months. One source said that Bowen would start working at Vitol in November and supervise the European naphtha business of the world's biggest commodities trader. Sources requested anonymity in order to discuss confidential information. Bowen was not available for comment. Vitol, Glencore and Glencore refused to comment. Bowen's departure comes at a time when Glencore is undertaking a wider reorganization in its trading operations after a sharp decline in earnings. The company's core earnings from Glencore’s energy and steelmaking activities trading coal fell to $306 millions in the first six months of this year. This is the lowest amount for the period since 2016. Bowen is the 42-year-old head of Glencore's naphtha trade since at least 2017, says a profile posted on Companies House, the UK government website. Bowen was a UK-based Petrochemical Feedstock Association director from February 2017 until his resignation in April of this year. Alex Sanna is the current Glencore head of oil and natural gas trading. According to a memo sent out by staff, Sanna will be stepping down at the end this year. Maxim Kolupaev will replace Sanna. He was the head of Glencore's oil trading desk over the last six years. (Reporting from Shariq Khan and Robert Harvey, in New York; editing by Lisa Shumaker).
-
The Russian rouble falls against the US dollar due to uncertainty surrounding Trump-Putin Summit
The Russian rouble fell against the U.S. Dollar and China's Yuan on Tuesday, after an American media report said that preparations for the summit between U.S. president Donald Trump and Russian president Vladimir Putin at Budapest had stalled. At 1400 GMT the rouble had fallen 0.7% against the U.S. Dollar in over-the counter trade and 1.2% against yuan, which was trading at 11.41 at the Moscow Stock Exchange. The Chinese unit is by far the most traded currency. Freedom Finance analysts stated in a recent research note that "the main pressure on Russia’s market comes from geopolitics, and the expectation that the central banks will maintain its key rate of 17% this Friday." The Kremlin announced on Tuesday that there was no date set for a possible summit between Trump and Putin. This dampened the optimism which had lifted Russian stock prices and the rouble in the last week. CNN reported that the planned meeting between U.S. secretary of state Marco Rubio, and Russian foreign minister Sergei Lavrov has been postponed for now. On October 24, the Russian central bank will also decide whether to cut or maintain its key rate. Economists are evenly divided on this issue. The rouble would be supported if the central bank decided to hold the rate. (Reporting and editing by MuvijaM; Gleb Bryanski)
Prolec JV to be owned by GE Vernova for $5.28 Billion in grid supply push
GE Vernova announced on Tuesday that it will pay $5.28 Billion to purchase the remaining 50% of the transformer maker Prolec GE, as artificial intelligence is driving grid equipment demand.
The joint venture partner Xignux will be purchased by a company that is owned equally by cash and debt. This purchase should close in mid-2026 subject to regulatory approvals.
The demand for electricity in the U.S. has increased dramatically as Big Tech and Silicon Valley startups compete to scale AI technologies behind services like ChatGPT. According to the U.S. Energy Information Administration, power consumption in 2025-2026 will reach record levels. This is due to cryptocurrency mining as well as increased demand by households and businesses.
The CEO Scott Strazik said, "This acquisition is in line with our financial and strategic objectives. It is also beneficial to our customers as it strengthens our presence in North America where the demand for grid equipment has been growing rapidly."
Prolec GE was established as a joint venture in 1995 by Xignux & General Electric.
It announced earlier this year that it would invest $140 million and create 330 jobs in Goldsboro in North Carolina over the next three-year period, surpassing $300 million of U.S. investments and Mexico investments.
About 10,000 employees are employed by the grid equipment manufacturer in seven factories around the world, including five in America.
After-hours trading saw a slight increase in GE Vernova shares. On October 22, the company will also report its third-quarter results.
Morgan Stanley acted on behalf of GE Vernova as a financial advisor, and Skadden Arps Slate Meagher & Flom acted as legal counsel.
J.P. Morgan Securities advised Xignux, and Sidley-Austin served as Xignux's legal counsel.
(source: Reuters)