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Bankers claim that the bond sales by three Indian state-owned firms prompted by the yield decline accounted for $880 million of the total amount.
Three merchant bankers familiar with the matter on Friday said that a decline in corporate bond rates in secondary market following a dovish policy encouraged three state-run companies to raise approximately 77.50 trillion rupees ($880.5 millions) through bonds sales. Hindustan Petroleum, a state-run company, plans to raise 50 billion rupees. Bharat Petroleum plans to raise 20 billion rupees. The bankers said that both oil marketing companies will be looking to issue bonds with a maturity of five years or less in the next few days. North Eastern Electric Power Corp. (NEEPCO), a subsidiary wholly owned by NTPC, would like to raise approximately 7.50 billion rupees via bonds maturing between five and eight years. BPCL tapped into the market about six months ago. NEEPCO raised money via debt in May 2024, and BPCL did so in March 2023. One of the bankers stated that "NEEPCO was waiting for the central banking policy for a very long time and should be first to go out among the three." The companies did not respond to the emails asking for a response, and bankers asked to remain anonymous as they were not authorized to speak with media. The Reserve Bank of India maintained the status quo in its policy rate setting and said that lower inflation had opened policy space for growth. The expectation of a reading of record low in October and the drop in retail inflation down to an eight-month low have cemented bets on a rate cut in December. According to LSEG data, the bond markets are rallying and AAA-rated corporate bonds with shorter maturities have seen yields decline by 6-10 basis point. Bankers said that corporate bond issuances have slowed in September but will pick up again this month as the easing of yields is expected to encourage both issuers and investor. ($1 = 88.0190 Indian rupees). (Reporting and editing by Sumana Niandy; Khushi malhotra, Dharamraj Dhutia)
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The weekly iron ore loss is set to rise on the back of renewed US-China tensions and rising supply
The iron ore futures price fell by a significant amount on a weekly basis as the trade tensions between the U.S. and China weighed down on the outlook for demand. The most traded January iron ore contract at China's Dalian Commodity Exchange was unchanged by 0339 GMT. It stood at 773 Yuan ($108.52), representing a 2.8% decline so far this week. As of 0329 GMT, the benchmark November iron ore traded on Singapore Exchange was down 0.31% at $104.6 per ton. The price has fallen by 1.7% this week. The price of key steelmaking ingredients was supported by the strong demand from China, the top consumer. This helped to limit further declines on Friday. Data from Mysteel revealed that the average daily hot metal production stood at 2,41 million tons during the week ending October 16. This level indicates a steady ore supply despite a small drop of 0.2% on a week-to-week basis. Trade friction between China and the United States has rekindled concerns about China's ability to achieve its economic growth goal of around 5%. U.S. president Donald Trump has threatened to end some trade relations with China, and impose additional tariffs of 100% on imports. This comes after Beijing expanded its export restrictions last week on rare earths which are essential for electric vehicles and the defense sector. The expectation of increased supply in the fourth-quarter added pressure to ore prices. Rio Tinto, the world's biggest iron ore supplier, said Tuesday that it must finish strong in order to reach its target for iron ore shipments. Analysts said that other steelmaking ingredients, such as coking coal and Coke, have gained 1.72 % and 1.73 %, respectively, due to a shortage of these materials caused by safety checks. The benchmarks for steel on the Shanghai Futures Exchange have gained some ground. Rebar grew by 0.43%. Hot-rolled coils gained 0.47%. Wire rod climbed 0.66%. Stainless steel rose 0.56%. Reporting by Amy Lv & Colleen Howe. $1 = 7.1231 Chinese Yuan.
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Peru's new President faces protests that resulted in dozens of injuries and one death
The state ombudsman’s office reported on Thursday that at least one person died and dozens were injured during widespread protests in Peru overnight against President Jose Jeri who took power only days before. The demonstration on Wednesday night was called by Gen Z protesters and transport workers, as well as civil groups. It was part of a series against rising crime and corruption that culminated in the ouster at midnight of former president Dina Boluarte. Around the country, thousands of protesters gathered. Hundreds clashed with police in front of Congress in Lima. The police fired tear gas, while protesters hurled rocks, fireworks and burning objects. "Everyone must leave!" "Everyone must go!" protesters shouted when they reached Congress, and then tried to tear down the metal barriers protecting it. This led to clashes. Fernando Losada from the Ombudsman office of the country said that a 32-year old man named Eduardo Mauricio Ruiz was killed in the protest. His death will be investigated. The prosecutor's offices in Peru said Ruiz was shot to death. Oscar Arriola, head of Peru’s national police, told reporters later on Thursday that Luis Magallanes was physically assaulted by a PNP member and had committed the shooting. Arriola said Magallanes had been taken to hospital for treatment and was removed from his position. Jeri posted on X that she was sorry for the death and said it would be investigated "objectively". He blamed the violence on "delinquents" who had infiltrated peaceful protests to create chaos. He wrote: "The full force will be on these people." Jeri, who attended a meeting at Congress about protests on Thursday afternoon, told reporters that he would "ask Congress for the authority to legislate" on issues of public safety. Jeri stated that prison reform would be a major focus, but she did not elaborate what these powers would include. Vicente Tiburcio was appointed as the new Interior Minister shortly after the protest. He spoke to Congress and said that the government will push for a comprehensive reform of the national police. The interior ministry didn't immediately respond to an inquiry for comment about the reform of police or Jeri’s request for increased legislative powers. The protests on Wednesday were a good indicator of how Jeri’s presidency could end next July, due to elections scheduled. Jeri has pledged to put crime at the top of his agenda, but he has been involved in a number scandals, including allegations of corruption and an investigation that has now been shelved for sexual assault. Jeri, 38, has expressed his willingness to work with any investigation into corruption. He has denied all wrongdoing and is willing to cooperate. Boluarte was the subject of widespread protests when she took power in 2022. This led to dozens deaths and a drop in her popularity, which fluctuated between 2% to 4% during the days before her removal. Congress, which Jeri led before becoming president, is also unpopular. It has a one-digit approval rating. (Reporting from Marco Aquino, Lima; writing by Alexander Villegas and editing by Deepa Babyington and David Gregorio).
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Italian appeals Court upholds conviction of Milan prosecutors in Eni Nigeria Case
Two Milan prosecutors were sentenced to eight months in prison by an Italian appeals court for not filing documents that would have backed up the position of energy group Eni in an international case of corruption. Eni, Shell and all defendants were acquitted by a jury in March 2021, in what was dubbed the biggest corruption case in the oil industry, which involved the $1.3 billion purchase of an oilfield in Nigeria a decade earlier. The judges in Brescia, a northern city in Italy, confirmed the verdict of last year that Fabio De Pasquale & Sergio Spadaro had failed to comply with their legal obligations by failing to submit documents that would have been helpful to the defence. Spadaro, before Thursday's verdict read to the court a long statement in which he stated that "there was not omission, no refusal" and the prosecution had acted according to "conscience and law". Massimo Dinoia said that the two attorneys for the prosecution would appeal their case to Italy's highest court, The Court of Cassation. De Pasquale & Spadaro are able to continue working during the appeals process. The Milan court which acquitted defendants in Eni and Shell's trial stated that the prosecutors failed to include a video taken by an ex-external lawyer for Eni. This court considered the video relevant to the case. The Brescia Court has jurisdiction over judges in Milan and prosecutors there. (Reporting and editing by Gavin Jones, Emilio Parodi)
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Brazil looks to financial guarantees and tax breaks for strategic mineral deposits
According to the agenda for the first meeting of the National Mining Policy Council, held on Thursday, the Brazilian government plans to offer financial guarantee to fund strategic mining projects and tax incentives to encourage their processing and industrialization. Document stated that the meeting will take place at 3:30 PM (1830 GMT) in Brasilia. The resolution to create a group of experts tasked with developing the supply chain in Latin America's biggest economy is expected to be voted on. The committee was created by President Luiz inacio Lula to promote a new policy that treats strategic minerals as an issue of national sovereignty and aims to limit exports without domestic processing. In August, the Brazilian government said that the framework will help Brazil maintain control over its mineral resources and position Brazil as a leader in the global energy transition. Rare earth elements, abundant in Brazil, are critical minerals that are essential for advanced technologies. They have also become a flashpoint of tensions between the United States and China following Beijing's decision to move its embassy to tighten Export controls were implemented earlier in October. According to the U.S. Geological Survey, Brazil's rare earths production is less than 1% despite having the second largest reserves in the world after China. Brazil is also seeking to engage with the United States again following the aforementioned a Get 50% off Donald Trump's Administration imposed tariffs on its products citing the case of former President Jair Bolsonaro who was later convicted. The sentence is: To 27 years of prison for trying to stage a coup in 2022 after the election was lost. Brazilian officials floated the idea of rare earths in the context of trade negotiations with Washington. However, the dialogue has only recently gained traction. This was notably after Lula briefly spoke to Trump at the U.N. General Assembly on September 30. On Thursday, Foreign Minister Mauro Vieira The meeting is scheduled to take place U.S. Secretary Marco Rubio at Washington. Reporting by Marcela Gregorio; editing by David Gregorio
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Russian rouble falls on concerns about oil exports
On Thursday, the Russian rouble fell sharply in relation to the U.S. Dollar and the Chinese yuan due to market worries about future oil revenues after U.S. pressure was applied on India and China. Donald Trump, the U.S. president, said that on October 15, Indian Prime Minister NarendraModi had promised to stop purchasing oil from Russia. He would then try to convince China to do the exact same thing. The rouble fell by 1.7% against the U.S. Dollar in the over-the counter market and by 2% to 11,20 against the Yuan at the Moscow Stock Exchange where the Chinese currency is the most actively traded foreign currency. The rouble strengthened this week to its highest level since July, on the back of a decline in demand for foreign currencies from importers. Fears of a possible future decline in oil revenues led to some profit-taking, which had a direct impact on the thin Russian markets, said a Russian currency trader who declined identification. Another currency dealer stated that "our illiquid market broke", mainly because there was a general feeling of inadequacy about the recent strengthening the rouble. The rouble has not reacted to the news that Trump is to hold a telephone call with Russian president Vladimir Putin on Thursday evening, just a day before he hosts Ukraine's Volodymyr Zelenskiy at the White House. (Reporting and editing by Gareth Jones, Gleb Brynski)
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Peru's new President faces protests that resulted in dozens of injuries and one death
The state ombudsman’s office reported on Thursday that at least one person died and dozens were injured during protests in Peru overnight against President Jose Jeri who took power only days before. The protest, organized by Gen Z, civil groups and transport workers, took place on Wednesday night. It was part of a series against rising crime and corruption that culminated in the dramatic ouster at midnight of the former president Dina Boluarte, last Thursday. Around the country, thousands of protesters gathered. Hundreds clashed with police in front of Congress in Lima. The police fired tear gas, while protesters hurled rocks, fireworks and burning objects. "Everyone must leave!" "Everyone must go!" protesters shouted when they reached Congress, and then tried to tear down the metal barriers protecting it. This led to clashes. The Ombudsman's Office confirmed that a 32-year old man, Fernando Losada was killed in the protest. It said the death will be investigated. The Peruvian prosecutor's said that Losada died after being shot but didn't say who fired. Jeri posted on X that she was sorry for the death and said it would be investigated "objectively". Jeri had earlier claimed that 55 police officers were injured and 20 civilians in the protest. She blamed "delinquents" who "infiltrated peaceful demonstrations to sow confusion." He wrote: "The full force will be on them." The protests on Wednesday were a good indicator of how Jeri’s presidency could end next July, due to elections. Jeri has pledged to put crime at the top of his agenda, but he has been involved in a number scandals, including allegations of corruption and an investigation that has now been shelved for sexual assault. Jeri, 38, has expressed his willingness to work with any investigation into corruption. He has also denied wrongdoing and a number of scandals. Boluarte was met with widespread protests when she took power late in 2022. This led to dozens deaths and a drop in her popularity, which fluctuated between 2% to 4% during the days before her removal. Congress, which Jeri led before becoming president, is also unpopular. It has a one-digit approval rating.
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Kazakhstan freezes fuel and utility prices amid inflation
Kazakhstan's Government announced on Thursday that it would freeze the price of some diesel and petrol as well as suspend utility tariff increases until 2026. This is due to the double-digit inflation rate continuing to increase. In a Telegram statement, the government announced that price freezes for diesel and AI92 gasoline will remain in effect until inflation stabilizes. It also said it would increase funding for the domestic agriculture to help prevent any price increases on what it called "socially important" food products. The government also claimed that it would reduce the tax revenue collected by small businesses, and make affordable mortgages more available. Inflation rates in Kazakhstan, which is a mineral giant and produces around 2% the world's supply of oil, were 12.9% in September. This was significantly higher than those in Russia, Kazakhstan's neighbour and main trading partner, where the prices have risen since the start of the war in Ukraine. Kazakhstan's central banks raised rates last week to an unprecedented 18%. Since the invasion of Ukraine, inflation has also spiked in other Central Asian countries with economies that are closely tied to Russia. The price of LPG soared suddenly in January 2022, causing the worst unrest in Kazakhstan since 1991 when the 20-million population gained independence from the Soviet Union. The fuel price protests that year grew to widespread unrest and hundreds of deaths. Russian troops were deployed to restore order.
Renault CEO states sector might face billions in fines as EV sales sluggish
Europe's automobiles industry might face fines of 15 billion euros ($ 17.4 billion) for carbon emissions due to slowing demand for electric lorries, Renault CEO Luca de Meo stated on Saturday.
Car manufacturers deal with harder EU CO2 targets in 2025 as the cap on typical emissions from new lorries sales is up to 94 grams/km from 116 g/km in 2024.
If electrical vehicles remain at today's level, the European industry might have to pay 15 billion euros in fines or give up the production of more than 2.5 million cars, de Meo informed France Inter radio.
The speed of the electrical ramp-up is half of what we would require to accomplish the objectives that would enable us not to pay fines, de Meo, who is likewise president of the European Car Manufacturers Association (ACEA), said of the sector.
Surpassing CO2 limits can lead to fines totaling up to 95 euros per excess CO2 g/km increased by the number of automobiles sold.
That could lead to charges of numerous millions of euros for large carmakers.
Everyone is discussing 2035, in 10 years, but we must be speaking about 2025 since we are already struggling, he stated.
We need to be provided a little flexibility. Setting deadlines and fines without being able to make that more versatile is extremely, extremely unsafe.
(source: Reuters)