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Couche-Tard opens up negotiations for Japan's Seven & i by gaining access to the books
Alimentation Couche-Tard and Japan's Seven & i have signed a non-disclosure (NDA) agreement that will allow the Canadian company to access the Japanese retailer's data in order to pursue a $47 Billion acquisition. The deal represents progress in the takeover negotiations for Couche-Tard. It operates Circle-K convenience store in Canada and in the United States, and has been trying since August to acquire Seven & i. Seven & i, the operator of 7-Eleven, said that the terms and conditions of the agreement would remain confidential. The agreement includes a clause that protects the target companies against hostile takeovers. Couche-Tard said it may be able to improve its offer if it has access to "full diligence information". The current offer, which is around $47 billion, would be the largest foreign takeover of Japanese companies ever. In a statement, Paul Yonamine, the chairman of Seven & i’s independent special committee for examining bids, stated that "the execution of the NDA" was a positive step towards a constructive engagement with ACT. Seven & i previously stated that Couche-Tard’s refusal to accept "standard protections" such as a stoppage provision in a friendly agreement has prevented a NDA being signed. It also claimed that antitrust hurdles are the main barrier to the transaction in the U.S., but the two companies have been working on finding a buyer since March for more than 2,000 stores which are candidates for divestment. Seven & i, which is pursuing the takeover, has accelerated a revamp of its management and operations. This includes selling non-core lines of business, appointing a chief executive and proposing four board members. According to a recent report, Institutional Shareholder Services, a proxy adviser, has advised shareholders to support the appointment and new board members of Stephen Dacus as the new CEO. Seven & i stocks rose 2.7% on Thursday morning in Tokyo, beating the Nikkei. (Reporting from Urvi Dugar, in Bengaluru; Kaori Kaneko in Tokyo, Makiko Yamazaki in Tokyo, and Anton Bridge, in Tokyo. Editing by Alan Barona and Muralikumar Aantharaman, and Sonali Paul.
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S&P downgrades Woodside's credit rating to 'negative" after LNG investment decision
S&P Global Ratings changed the outlook of Australia's Woodside from "stable" to "negative" after the company made a final decision on investment for $17.5 billion in its Louisiana liquefied gas project. The rating agency stated that Woodside's decision to move forward with the project, without a substantial sell-down of the offtake exposure, has reduced the headroom for ratings. The agency has affirmed Woodside's 'BBB+ long-term issuer rating' and 'BBB+ long-term issuer ratings'. The Australian oil and Gas Company approved an LNG project worth billions of dollars in Louisiana earlier this week. They were confident that the U.S. government would be pro-fossil-fuel and there would be a strong demand. Woodside now holds a majority of the U.S. Project after selling a 40% stake to U.S. Infrastructure Investor Stonepeak. S&P stated that Woodside was exposed to market risks of the entire project, compared to its current effective interest of 60% in the project. Woodside's Chief Executive Officer Meg O'Neill reaffirmed this week that Woodside is seeking a further stake diluting in the LNG Project. S&P anticipates that Woodside's fund from operations to debt ratio will track at around 50% in the next few years. The ratings agency stated that future ramp-ups of the Louisiana project will likely reduce cash flow. This means the energy giant has very little capacity to cope with lower oil prices or cost increases at any of their major projects.
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London copper prices rise; weak US economic data and a strong dollar cap gains
London copper rose on Thursday after comments by U.S. president Donald Trump about a possible trade deal with China. This signaled a de-escalation of tensions with the world's largest metals consumer. However, a stronger dollar as well as weak U.S. economic data limited gains. As of 0228 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.5%, to $9,167.5 per metric ton. Trump said that on Wednesday he had "potential" deals with India and South Korea, and that there was a good chance the U.S. would make a deal China. Investors focused on signs that the trade war could be cooling off as they pushed the dollar higher on Thursday. The greenback price of commodities is more expensive for buyers who use other currencies. The fact that the U.S. economic growth was negative in the first three months also weighed on the mood. The U.S. economic contraction contracted for the 1st time in 3 years during the first quarter. Businesses rushed to import goods in order to avoid tariffs, which would have increased costs. This underscored the chaotic nature of Trump's trade policy. ANZ Research stated that "Incoming data continue to signal an economic downturn in the U.S. An increased recession risk is underscored by a slower pace of hiring and a smaller-than-expected drop in GDP." Other London metals saw aluminium rise 0.08%, to $2.401.5 per ton. Zinc fell 0.1%, to $2.589.5. Lead rose 0.03%, to $1.958. Tin advanced 0.2%, to $31,400. And nickel dropped 0.1%, to $15,400. The Mainland China Market will be closed on May 1st for a 5-day holiday to celebrate Labour Day. (Reporting and editing by Rashmi aich; reporting by Neha arora)
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Polls indicate that Australia's centre left Labor Party is likely to remain in power, as Trump worries weigh on the country.
Two opinion polls released on Thursday showed that Australia's center-left Labor Government is likely to remain in power after a tight national election at the weekend. Voters ranked Donald Trump's policies as their number one concern. According to a RedBridge/Accent poll conducted by News Corp on Thursday, Labor led the Liberal-National Coalition conservative coalition 53%-47% under Australia's preferential voting system for two parties. Votes are then distributed until a winner has been declared. The RedBridge survey showed that Labor could form a majority government or win the election on its own. This is a change from the February poll, which indicated that voters wanted Anthony Albanese to leave office. RedBridge's poll found that Millennials, Generation Z, and older voters are the ones who have changed their minds about Labor. The 18 million Australians who are enrolled in Australia's compulsory voting system consist of 43% Millennials and Generation Z, which is more than the influential Baby Boomer group. The backlash against Trump and his remarks about making Canada the 51st state of the United States fueled a major political comeback by Prime Minister Mark Carney’s Liberals earlier this week. Around 48% of Australians ranked Trump's uncertainty as their top concern, while 42% were wary of opposition plans to build nuclear power plants in the country to replace coal-fired energy. A poll online of 1,011 respondents was conducted from April 24 to 29. Peter Dutton, the leader of the opposition, has been campaigning on several policies that are seen as being modeled after Trump's Department of Government Efficiency set up by Elon Musk. He later abandoned a plan which would have required all government workers to return to their full-time jobs. Dutton's popularity has been dragged down by comparisons to Trump and his policies in Australia. A poll conducted last month revealed that Australians had lost faith in the United States. YouGov released a separate poll on Thursday that predicted a Labor majority. The party is likely to win up to 85 seats out of 150 seats in the lower house, while the opposition faces a net loss 11 seats, which would be its worst performance since 1947. Albanese has downplayed the poll results and said it would be an extremely close race. (Reporting and editing by Renju José in Sydney.
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After a selloff, oil prices are now easing up as supply concerns take hold
The oil prices rose slightly on Thursday after sharp drops the day before, driven by signs that Saudi Arabia can produce more and the fact that the U.S. economic contraction in the first quarter. Brent crude futures increased 16 cents OR 0.3% to $61.22 per barrel. U.S. West Texas Intermediate Crude Futures rose 6 cents, or 0.1% to $58.27. The two contracts closed Wednesday at their lowest levels in four years. Sources say Saudi Arabian officials have informed allies and experts in the industry that the kingdom does not want to support the oil market by cutting further supplies and is able to handle a long period of low oil prices. Three sources familiar with OPEC+ discussions told us earlier this month that several OPEC+ member countries will propose the group increases oil production in June by a significant amount for a second month in a row. The U.S. economy shrank for the first three-year period in the first quarter. Businesses rushed to import goods in order to avoid tariff-related costs, highlighting the chaotic nature of President Donald Trump’s trade policy. A poll suggests that Trump's tariffs make it likely the global economy will slide into recession in 2019. An oil price poll on Wednesday showed that OPEC+’s decision to reduce supplies and a demand outlook clouded with trade disputes between China and the U.S. will have a negative impact on prices in 2018. In April, a survey of 40 analysts and economists projected that Brent crude would average $68.98 per barrel in 2025. This is down from the estimate of $72.94 in March. U.S. crude oil is forecast to average $65.08 per barrel in 2025, down from last month's $69.16 estimate. The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped unexpectedly by 2.7m barrels due to higher exports and refinery demands, as opposed to analysts' expectations, which were based on a poll, of a 429,000-barrel increase. (Reporting from Arathy S. Somasekhar, Houston Editing by Shri Navaratnam.)
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US House votes to rescind California's heavy-duty truck regulations
The U.S. House of Representatives voted on Wednesday to revoke the Environmental Protection Agency’s approval of California’s plans for a growing number of zero emission heavy-duty trucks. The House also voted on repealing an EPA waiver granted in December by former president Joe Biden to California's "Omnibus", low-NOx regulations for heavy-duty highway vehicles and off-road engines. Separately, the U.S. House will vote on Thursday against California's historic plan to stop selling gasoline-only cars by 2035. This plan has already been adopted by eleven other states. The EPA granted a waiver for the plan under the Clean Air Act in December. The question remains as to whether Congress has the power to revoke waivers by using the Congressional Review Act. In March, the The Government Accountability Office has said that waivers are not allowed. The CRA allows for repeal of the law with only a majority vote in the U.S. Senate. California Air Resources Board stated Wednesday that the votes were in violation of the Congressional Review Act, nonpartisan analyses by the U.S. Government Accountability Office (GAO) and the Senate parliamentarian. A spokesperson for the board said that "CARB will continue to carry out its mission of protecting public health in Californians affected by harmful air pollutants." Republican Representative John James stated that the rules will increase vehicle prices and burden truckers and working families across the nation. California, under an executive order signed by Governor Gavin Newsom in 2020, plans to mandate that by 2045, all medium- and heavy duty vehicles will be zero-emission wherever possible, moving away from diesel powered trucks. CARB reports that heavy-duty vehicles weighing more than 14,000 pounds (6.4 tons) account for over 50% of the nitrogen oxides and diesel fine particle pollution on California's roads. The NOx rule is expected to reduce heavy-duty vehicle emissions by 90%, and will result in $23 Billion in health benefits due to reduced illnesses. The largest U.S. source of transportation is U.S. greenhouse gas emissions Heavy-duty vehicles, with 23%, are the second largest contributors. (Reporting and editing by Stephen Coates; David Shepardson)
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Albemarle's outlook for 2025 is unchanged due to the lithium tariff exemption
Albemarle is the largest lithium producer in the world for electric vehicles batteries. It said that it was not affected by the tariffs swarming around the global economic system and will maintain its outlook until 2025. The company, based in Charlotte, North Carolina, operates across North America, Asia, and Australia. It has maintained its earnings and sales forecasts for the year. For now, you are exempt Tariffs Washington wants to impose on its trading partners. In a recent press release, CEO Kent Masters stated that "While it is not clear what the full impact of the tariffs recently announced and other global trade action will be on our business, we do benefit from the global footprint and current exemptions in place for critical minerals." Albemarle has, along with many of its competitors, struggled to survive the lithium glut that was caused by Overproduction in China It has been forced to Cut staff Cut back on expansion projects. Masters noted that the company is "focused on what we control" and did not indicate any improvement in market dynamics. Albemarle reported that its first-quarter loss was $340,000 or zero cents a share. This compares to the loss of $9.1million or 8 cents a share in the previous period. The Charlotte-based company, which lost 18 cents a share, did not include costs associated with curtailing expansion projects, investments, and other special items. According to IBES data, analysts had expected earnings per share of 59 cents. Energy Storage, the division of the company that sells lithium, has reported a drop in revenue of $276.3 millions due to a 34% decline in prices it receives for its product. After-hours, the company's shares fell to $58,35. Albemarle will discuss its quarterly results with investors on a conference call scheduled for Thursday morning. (Reporting and editing by Stephen Coates; Ernest Scheyder)
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S&P 500 and Dow end up higher despite GDP decline and crude prices sink
Investors reacted to news that the U.S. economy has contracted for the first time since 2022 by pulling back U.S. stock prices in late session on Wednesday. Oil prices also posted their largest monthly decline in three-and-a half years. The Dow and S&P 500 both turned positive minutes before the closing bell. The Nasdaq, which is dominated by technology stocks, ended modestly lower. S&P 500, Dow and Nasdaq all lost ground in April. Chuck Carlson of Horizon Investment Services, Hammond, Indiana, said that "the market's actions... are reflective of an economic which is likely to struggle as the year advances." The U.S. Gross Domestic Product contracted in the first three months of 2018, largely because imports surged to avoid tariffs. U.S. president Donald Trump blamed Democratic predecessor Joe Biden and said that his tariffs would bring an eventual booming economy. Carlson said that the reversal could be due to people trying to digest some of these figures and put them in context. Was it really that bad? Are we at the brink of a new recession? Carlson explained that the markets are trying to put this into context and evaluate it. Companies are increasingly lowering or pulling back on their earnings guidance because of tariff uncertainty, as a result of the ongoing multi-fronted trade war. Wall Street pared its losses following the release of positive economic indicators. Consumer spending exceeded expectations and the Personal Consumption Expenditures price index was unchanged from month to month. Meta Platforms, Microsoft and the other "Magnificent 7" companies in the artificial intelligence megacap group are expected to report results after the bell. The Dow Jones Industrial Average climbed 141.74, or 0.35 percent, to reach 40,669.36. The S&P 500 gained 8.23, or 0.15 percent, to reach 5,569.06, and the Nasdaq Composite dropped 14.98, or 0.09 percent, to 17,446.34. Investors pondered key data and corporate results as European stocks finished a volatile session higher. The STOXX 600, however, registered its second consecutive month of losses due to uncertainty over tariffs. The MSCI index of global stocks rose by 1.56 points or 0.19% to 832.90. The pan-European STOXX 600 Index rose by 0.46% while Europe's broad FTSEurofirst 300 Index rose by 9.45 points or 0.45%. Emerging market stocks increased 5.67 points or 0.51% to 1,111.67. MSCI's broadest Asia-Pacific share index outside Japan closed up by 0.88% to 580.65. Japan's Nikkei gained 205.39 or 0.57% to 36,045.38. Dollar gains were maintained after mixed economic data from the United States and trade tensions eased. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.51%, reaching 99.68. However, the euro fell 0.58% to $1.132. The dollar gained 0.52% against the Japanese yen to reach 143.08. The dollar fell 0.63%, to $1.3322. The Mexican peso fell 0.32% against the dollar to 19.616. The Canadian dollar rose 0.33% against the dollar to C$1.38. The benchmark U.S. Treasury rates sawsawed downwards to close at a lower level amid turbulent trading. The yields fell 2 basis points to 4.156% from 4.174% at the close of Tuesday. The 30-year bond rate rose by 2.5 basis points, from 4.648% to 4.6734% late on Tuesday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve fell by 5.3 basis points, to 3.605% from 3.658% at late Tuesday. The oil prices continued to fall, recording their biggest monthly drop in almost 3-1/2 years. Trump's trade conflict weakened the demand outlook. U.S. crude oil fell by 3.66%, settling at $58.21 a barrel. Brent, however, settled at $63.12 a barrel, down by 1.76%. The dollar's strength has led to a decline in gold prices. Spot gold dropped 0.65% to $3.294.59 per ounce. U.S. Gold Futures dropped 0.72% to an ounce of $3,295.00.
India's IOC buys 7 mln barrels of Middle East, African oil, sources state
Indian Oil Corp. ( IOC), the nation's top refiner, has bought 7 million. barrels of spot Middle Eastern and African petroleum via. tenders, consisting of an unusual purchase of Abu Dhabi's Murban, as. U.S. sanctions are expected to hit products from Russia, trade. sources said on Friday.
Indian refiners are increasing Middle Eastern crude. buy from the area markets after Washington last Friday. revealed sweeping sanctions targeting Russian manufacturers and. tankers, disrupting supply from the world's No. 2 producer and. tightening up ship availability.
Totsa, the trading unit of French significant TotalEnergies. , offered the 2-million-barrel Murban unrefined cargo to IOC,. the sources said.
IOC's other purchases consist of a huge crude provider. including 1 million barrels each of Nigeria's Agbami and Akpo. crude and 1 million barrels of Gabon's Rabi Light from Shell. , and another VLCC of 1 million barrels each of Agbami. and Angolan Nemba crude from Chevron.
The deals were most likely concluded on provided basis, the. sources said, although costs were not immediately offered.
The business generally do not comment on industrial offers.
IOC previously this week drifted tenders seeking sour and sweet. crude for loading in between the second-half of February and the. first-half of March.
Spot premiums for Middle East unrefined extended their rally on. Thursday to their highest in more than two years as strong. need from top importers China and India to replace. sanction-hit products from Russia and Iran drove up costs.
(source: Reuters)