Latest News
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Sources say that the EU will approve ADNOC's Covestro agreement in the coming weeks.
People with direct knowledge of this matter expect that the EU will approve the ADNOC bid of 14.7 billion euros ($17 billion) for the German chemicals firm Covestro within the next few weeks. According to a Wednesday update, the European Commission, EU's competition enforcer reopened its investigation on the deal on 24 October after stopping it on 3 September while awaiting requested information. The new deadline is March 2. ADNOC offered last month to amend its articles of Association to address EU concerns about its unlimited state guarantees, and pledged to maintain Covestro’s intellectual property in Europe. The company then tweaked this element in response to feedback from customers and rivals. People said that the Commission will likely sign off on the agreement this month. However, timing may still change. ADNOC’s international investment arm stated that "XRG will not comment on current regulatory issues and continues to work constructively with the Commission." ADNOC has acquired Covestro, its largest acquisition to date. It is also one of the biggest foreign takeovers by a Gulf State of a company in the EU. This deal has raised EU concerns about the possibility that state subsidies were used.
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Wetherspoon is cautious about sales growth ahead of UK Budget
British pub chain JD Wetherspoon announced a slowdown of recent sales growth Wednesday. The company warned that the industry would suffer if the budget for this month repeats the mix of tax hikes and wage increases from last year. Even value-oriented players like Wetherspoons struggle to attract customers due to cost-of living pressures. In order to maintain control over public finances, UK Finance Minister Rachel Reeves will likely announce tax increases in her budget on November 26, breaking her promise from last year not to repeat revenue-raising measures. Wetherspoons chairman Tim Martin said that the company was on the alert for any tax increases, no matter how disguised. The company has adopted a cautious outlook for this year. Wetherspoons is expected to pay 9 million pounds (7 million pounds) in this year's budget due to recent increases in energy prices. Martin said that a 10% wage increase would result in a 15-penny price hike in pubs but only 1.5 pennies in supermarkets. He argued that the rising cost gap is widening and driving customers away. The pub group known as Spoons has invested in gardens and outdoor seating to attract customers. Wetherspoons' shares fell 1.2% to 634 pence at 1305 GMT. Analysts are especially concerned about Wetherspoons’ exposure to labour costs, as well as gaming machine duties. According to Peel Hunt analysts the staff wages account for around 40% of sales and high-margin games provide a buffer to other cost pressures. Martin stated that the government acknowledged the pressures on the hospitality sector "so, we hope they will leave pub gaming machines alone". The company that runs over 800 pubs across the UK and Ireland reported a 3.7% increase in sales like-for-like in the 14-week period ending November 2. This was driven by bar sales as well as sales of gaming machines. This is down from the 5.1% growth of the 12 previous weeks.
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Philippines starts cleanup after typhoon Kalmaegi kills at least 85
Residents in the central Philippines began scrubbing mud off streets and houses that were still standing after the typhoon Kalmaegi tore through the area, killing at least 85 people and leaving dozens of others missing. As floodwaters receded in Cebu, the province that was hardest hit, scenes of destruction were revealed. Homes reduced to rubble and vehicles overturned, streets choked by debris, lives upended. Marlon Enriquez, 58, of Cebu City tried to salvage the belongings left in his home by scraping off the thick mud. This was the first flood that we have experienced. "I've lived here for 16 years, and this was the first flood I've ever experienced," he said. HELICOPTER CRASH DEADLINES Not everyone has a home to go back to. Eilene Oken, 38, walked into her old neighbourhood in Talisay and found it completely destroyed. She said with a broken voice, "We saved and worked for years for this, then it all disappeared in an instant." Oken, however, said that she is grateful for the safety of her family members, including her daughters. Six military personnel were among the 85 people killed when their helicopter crashed on Mindanao's island, Agusan del sur, during a mission to provide humanitarian aid. The agency for disasters reported that 75 people were missing and 17 others injured. Kalmaegi (locally called Tino) has been devastated by a magnitude 6,9 earthquake that struck northern Cebu in late January, causing dozens of deaths and thousands to be displaced. Storm expected to gain strength The storm submerged many homes, causing widespread flooding and power failures. Over 200,000 people in the Visayas area, which includes parts of southern Luzon as well as northern Mindanao, were evacuated. Forecasts predict that Kalmaegi will gain strength as it passes over the South China Sea. The typhoon is now on its way to Vietnam, where preparations have begun ahead of Friday's anticipated landfall. China's state broadcaster CCTV warned that a "catastrophic tsunami process" was taking place in the South China Sea, and activated a maritime disaster emergency response program in Hainan province in its most southern region. The report released on Wednesday didn't specify which parts of the coast or sea would be affected. However, China claims several islands in these vast waters including the Spratly Islands, and the Paracel Islands, which are administered, it claims, by the provincial government of Hainan. Super Typhoon Ragasa, which swept through the Philippines in September, forced schools and government offices shut as it brought torrential rainfall and fierce winds.
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Dollar pause, gold rises by more than 1% in risk-off mood
Gold prices rose more than 1% in Wednesday's trading, driven by a slightly lower dollar and a wider risk-off mood. At 1203 GMT, spot gold was up 0.8% to $3,963.03 an ounce. U.S. Gold Futures for December Delivery were up 0.3% at $3,971.90 an ounce. Gold prices are up 52% in the past year and reached a record high of $4,381.21 per ounce on October 20, 2010. Carsten Menke, Julius Baer's analyst, said that the recent shift in financial markets to a more risk-off mindset due to concerns over equity market valuations has helped gold stabilize after its decline from record highs. DOLLAR PAUSE SUPPORTS European shares fell to their lowest level in two weeks as investors around the world became increasingly nervous due to the inflated equity valuations. Gold became less expensive to other currency holders after the dollar index eased by 0.1%. Investors are looking for clues about the U.S. rate path as the U.S. shutdown approaches the record-breaking length. The ADP National Employment Report, due on Wednesday, is one of the non-official reports that investors will be focusing on. Last week, the U.S. Federal Reserve lowered rates and Chairman Jerome Powell hinted that it could be the final reduction in borrowing costs this year. CME's FedWatch Tool shows that market participants see only a 72% probability of a December rate cut, down from 90% prior to Powell's comments. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Menke, Julius Baer's Menke, said: "We continue to see a strong demand for gold from those seeking a safe haven. This is also the case with emerging market central bankers." Silver spot gained 0.9%, to $47.53 an ounce. Platinum fell 0.3%, to $1.531.69, and palladium rose 0.5%, to $1.397.93. (Reporting by Brijesh Patel in Bengaluru. (Editing by Ros Russel and Mark Potter).
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Raw sugar prices fall to their lowest level in five years, and cocoa is also falling.
Raw sugar futures fell to their lowest level in five years on Wednesday, with the possibility of a large global surplus for the 2025/26 crop season pushing prices down. Dealers say that the expected increase in sugar production in India, which is the second largest producer in the world, has added to the concerns about excess supplies. Forecasts are beginning to rise for the anticipated size of a global surplus during the 2025/26 harvest season. Raw sugar futures fell 0.1% to 14.21 cents a lb at 1147 GMT, after hitting a low of 14.05cents. This year's monsoon rainfall has contributed to the increase in production. However, it appears that less cane is being diverted for ethanol production than expected. In a recent note, broker Czarnikow stated that "we now think India will produce more than sugar in 2025/26 with 32.8 million tonnes due to less sucrose going to ethanol." India produced approximately 26.1 million metric tonnes in 2024/25. Czarnikow increased its forecast of the global sugar surplus in 2025/26 by 1.2 millions tons to 8.7million tons. White sugar increased 0.4%, to $415.10 per ton. Futures cocoa prices eased due to concerns over a weakening demand after the price surge of last year. Barry Callebaut announced on Wednesday that the company expects a decline of a single-digit percentage in sales for its next financial year due to high cocoa prices. New York cocoa dropped 0.1%, to $6,594 per ton. London cocoa, however, was down 0.25%, at 4,837 pounds. The price of Robusta coffee increased by 0.2%, to $4,689 per ton. The market is closely watching the progress and impact of Typhoon Kalmaegi, which could cause more rain in Vietnam's coffee growing regions, resulting in a slower harvest, or even quality problems. Arabica coffee increased 0.7%, to $4.08 a lb. (Reporting and editing by Nigel Hunt)
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UK stock prices flatten as energy and financials gains are offset by losses in the financial sector
The UK's FTSE 100 remained flat on Wednesday, as the losses of heavyweight banks were countered by gains in energy shares. Investors are now focusing on a Bank of England rate decision this week and on more corporate earnings. The blue-chip FTSE 100 index remained flat at 9712.2 by 1126 GMT. The rise in crude oil prices led to a 0.3% increase for heavyweight oil and gas companies. Standard Chartered, Barclays and other banks trimmed gains in the broader index. Personal goods were the leading gainers with a 1.6% increase. Precious metal miner's fell 2%. The Bank of England will likely hold its rates at the same level on Thursday, despite recent data showing a decrease in inflation and wages. According to a recent survey, the output and new orders of the British services industry increased last month. The expectations for the activity over the next twelve months are the highest they have been since October 2024. The pound was stable against the dollar, after it had fallen by 0.9% in the previous session. Gilt yields were also mixed. Barratt Redrow, the largest British homebuilder, maintained its annual completions goal. Marks & Spencer, a retailer, said that it would have recovered fully from the cyber-hack of April by March 2019. It forecast second half profits "at least" on par with last year. Last week, its shares rose 1.7%. Investors will also be watching earnings this week from British Airways' parent company IAG, drugmaker AstraZeneca, and spirits manufacturer Diageo. Reporting by Utkarsh T. Hathi in Bengaluru and Shashwat C. Chauhan; editing by Sahal M. Muhammed
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Copper prices are affected by the dollar's strength and concerns about China's demand
The copper price fell on Wednesday. It was the fifth session in a row that it had fallen. This was due to the strong dollar and concerns about China, which is a major metals consumer. At 1049 GMT, the benchmark copper price on London Metal Exchange had fallen by 0.2% to $10640.50 per metric ton. Metal, which is used for power and construction, has fallen 5% from its record high of 11,200 dollars a week earlier, when fears about a tightening global supply drove it up. The metal fell below the 21-day average, which was the level of resistance around $10,779. Analysts at Sucden Financial stated that "the pullback in the copper market appears to be a healthy consolidation with excess momentum being unwound, potentially providing some room for modest rebound when positioning is stabilized." FIRMER DOLLAR WEIGHS Copper has risen 22% this year so far, and is on track to be the biggest yearly increase since 2021. Standard Chartered analyst Sudakshina Unnikrishnan said that the metal will likely trade between $10,000 and $11,000 in the short term, as risk sentiment deteriorates. Macroeconomic drivers are also weighing on the metal, while last week's disappointing official Chinese manufacturing PMI data is adding to worries. On Wednesday, the Chinese yuan weakened to its lowest level in two weeks against the U.S. dollar. This made metals priced in dollars more expensive for Chinese buyers. Beijing will release data on trade Friday. Next week, credit lending and activity indicators will be released. Signs of trade tensions easing between Washington and Beijing were encouraging. China announced that it would remove export controls against 15 U.S. companies and continue to pause these measures for 16 other entities for one year, starting November 10. Other LME metals saw aluminium fall 0.2% to 2,852 per ton. Zinc fell 1.2% to 3,051.50. Lead was unchanged at $2,022.50. Tin dropped 0.6% to 35,550. Nickel has remained relatively unchanged at $15.075 after reaching $15.015, its lowest level since August 22. Polina Devitt (Reporting). Dylan Duan contributed additional reporting. Mark Potter (Editor)
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Dollar pause, gold rises by more than 1% in risk-off mood
Gold prices rose more than 1% in Wednesday's trading, driven by a slightly lower dollar and broader risk-off sentiment. By 1044 GMT, spot gold had risen 0.8% to $3,966.54 an ounce. U.S. gold contracts for December delivery increased 0.4% to $3.976.10 an ounce. Gold prices are up 52% in the past year and reached a record high of $4,381.21 per ounce on October 20, 2010. Carsten Menke, Julius Baer's analyst, said that the recent shift in financial markets to a more risk-off mindset due to concerns over equity market valuations has helped gold stabilize after its decline from record highs. European shares fell to their lowest level in two weeks as investors around the world continued to be nervous about equity valuations. Gold became less expensive to other currency holders after the dollar index eased by 0.1%, after reaching a three-month high. Investors are looking for clues about the U.S. rate path as the U.S. shutdown approaches the record-breaking length. The ADP National Employment Report, due on Wednesday, is one of the non-official reports that investors will be examining. Last week, the U.S. Federal Reserve lowered interest rates and Chairman Jerome Powell hinted that it could be the final reduction of borrowing costs this year. CME's FedWatch Tool shows that market participants see only a 72% probability of a December rate cut, compared to over 90% prior to Powell's comments. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Menke, Julius Baer's Menke, said: "We continue to see a strong demand for gold from those seeking a safe haven. This is also the case with emerging market central bankers." Silver spot gained 1.3%, to $47.69 an ounce. Platinum fell 0.1%, to $1.533.91; palladium rose 0.4%, to $1.397.46. (Reporting and editing by Alexander Smith, Ros Russell, and Brijesh Patel in Bengaluru)
Operations to destroy unlawful roadways in Colombia's Amazon struck dead stop, sources say
Government determines to damage illegal roadways around Colombia's Amazon rainforest are stalled, 8 sources told , with one operation suspended completely over concerns it could hold up peace talks between rebels and President Gustavo Petro's administration.
The building and construction of roads through rain forests in Colombia by rural neighborhoods, livestock ranchers and illegal armed groups is a. major contributor to deforestation, ecological specialists and. researchers state. That is particularly vital in the Amazon, which. takes in substantial amounts of carbon that adds to environment. change and is already a focus of issue.
There are at least 12 prohibited roadways around. Chiribiquete national forest - a UNESCO world heritage website in. Colombia's Amazon. But there are no recognized operations underway to. damage them, ecological procurator Gustavo Guerrero told. , in spite of Petro's pledges to secure the environment.
spoke to the sources on condition of anonymity,. who detailed how one federal government operation to demolish a road. cutting into Chiribiquete was halted and numerous other planned. operations not started. The stalled and suspended strategies have not. been previously reported.
Petro has made the environment a focus of his speeches. both in the house and abroad, and his government commemorated a 29%. decrease in deforestation throughout 2022.
The delays might trigger disciplinary action versus. officials for stopping working to safeguard the environment, the. procurator's office, an independent public guard dog, stated.
Neither Petro, his workplace nor any national official has. hampered the damage of the Yari Yaguara roadway, the workplace. said in a statement, describing among the roads flagged by. the sources.
The Yari Yaguara roadway has actually not been gone over at peace talks. with the Estado Mayor Central (EMC) rebels, the statement stated,. adding the process to destroy it was advancing in line with. legal requirements.
In remarks to , Environment Minister Susana Muhamad. emphasized that operations to destroy roads are part of a. comprehensive technique that consists of peace efforts, human rights. and the battle versus logging.
The operations and their preparation continue in the fight. versus deforestation and ecological crimes, Muhamad stated in. a text.
The defense ministry said in a statement late on Monday that. all of its operational, intelligence and investigative. capabilities were available for the damage of the Yari. Yaguara road, but that the operation needed to take place with. inter-institutional coordination.
Security forces will follow any accords reached between the. government and the EMC, the ministry stated, including it might not. supply a possible date for destruction of the road.
6 people knowledgeable about the matter said the operation to. damage a roadway bisecting Chiribiquete was prepared last December. The operation did not proceed after the military expressed. concerns over potential clashes with residents and broader. government issues about holding up already stuffed peace. talks with the EMC, who operate in the area, sources stated.
The EMC rebels have combined control in parts of the. country, leading to what some call a pseudo-state where. Colombia's government has little influence. A ceasefire has. currently been canceled in some provinces.
2 sources stated an operation to ruin the road was also. planned for January, while another stated plans were when in location. to deal with all unlawful roadways.
It's like an illness that keeps dispersing, said among the. sources, describing the lack of action on unlawful roads and. the ecological damage they trigger by increasing access to when. unreachable forest.
' EVIDENT FAILURE'
The procurator's office last year required that the. environment ministry damage another unlawful road near to. Chiribiquete, without results.
We're not aware of any operation to close or disable any. prohibited roads in the Amazon, Guerrero stated in an interview. There is an obvious failure in the execution of preventive and. preventive measures for those roads.
The cops strategy to destroy the road highlighted by the. procurator's office but have actually not taken action, one of the. sources said. Guerrero stated his workplace has actually started a disciplinary. examination into the federal government's general absence of development. The procurator's workplace has the power to sanction authorities up. to government ministers and eliminate them from their posts.
The federal government expects to report another drop in. deforestation for 2023, however minister Muhamad in April warned. damage was increasing in 2024 amid a prolonged dry spell.
Even if Petro's government has great factor for aborting. operations, the absence of action on prohibited roads contradicts his. guarantees to deal with deforestation, among the sources stated.
In the end, they aren't acting. Something must be. done..
(source: Reuters)