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TenneT, a power grid company, has restructured its funding structure to support a business split
TenneT, the Dutch state-owned company that owns the power grid, will realign its financing structure in order to separate its Dutch and German operations. The state will guarantee loans for investments made in the Netherlands. It said that the corporate reorganisation would allow it to raise debts for both its Dutch and German businesses via two separate entities. TenneT decided to separate its businesses in December in order to promote growth and facilitate a possible sale of the German business. Dutch Finance Minister Eelco Hijnen announced that the Dutch state would provide TenneT Netherlands a guarantee for loans to cover the estimated 90 billion euro ($102 billion) of investments the company needs over the next 10 year period. He added that this will raise TenneT Netherlands credit rating so it matches the triple-A ratings of the Dutch government, giving the company cheaper financing options. Heinen stated that they were confident in the new funding structure supported by the guarantee of the Dutch state. This will allow TenneT Netherlands to continue investing in the Dutch grid and also enable TenneT Germany to receive separate funding. TenneT invited parties to take a stake in their German operations last month. It was looking to raise fresh equity for an estimated 200 billion euros investment programme until 2034. TenneT has also indicated that it may sell its entire German operation. The Dutch government said that it was still open to the possibility of the German state acquiring a stake in TenneT after negotiations to purchase the German operations by Berlin from the Netherlands last year fell through due to budgetary constraints. TenneT anticipates transferring the debt for the new financial structure to senior creditors by October 2025 after receiving their consent. Bart Meijer reported. Editing by Jane Merriman and Kirby Donovan.
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Saudi Defence Minister arrives in Tehran before Iran-US talks
Saudi Defence Minister Prince Khalid bin Salman landed in Tehran, Iran on Thursday to meet with officials ahead of the weekend talks between Iran & the United States about the Iranian Nuclear Programme. Iran's official media reported that the defence minister had delivered to the Supreme Leader Ayatollah Ayatollah Khamenei a message sent by Saudi King Salman bin Abdulaziz on Thursday. However, the Iranian state media did not provide any further information about the message. Iran and the U.S. will hold a second round in Rome this weekend Tehran's controversial uranium-enrichment programme. Khamenei said in the meeting that he believed the relationship between Saudi Arabia and the Islamic Republic of Iran was beneficial to both countries. Iranian state media reported this. Khamenei said that Tehran was ready to overcome any obstacles in order to improve relations with Riyad. Iran and Saudi Arabia signed a deal in 2023, brokered by China, to restore relations after years that saw hostility between the two countries threaten stability and security in Gulf region and fuel conflict in Middle East from Yemen up to Syria. Saudi Arabia has welcomed the nuclear talks between Iran and the U.S. in a statement released by its official news agency. The country said it supports efforts to resolve regional disputes as well as international ones. According to Iranian state-run media, Mohammad Bagheri, Iran's chief of the armed forces, said that the relationship between Saudi Arabia and Iran has improved since the Beijing Agreement. (Reporting and editing by Sharon Singleton, Ed Osmond, and Elwely Elwelly)
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Alphamin, a Congo tin mining company, says that production has resumed after the rebels withdrew.
Alphamin Resources announced that it had restarted the tin production in its Bisie mine, located in eastern Democratic Republic of Congo. This was after rebels retreated from the nearby town of Walikale. In a statement, the miner stated that it was processing tin-ore stockpiled and plans to resume activities at its underground mining facility later this month when more employees return to their jobs. Alphamin temporarily halted its operations in Bisie in March, which produced about 6% of the global tin supply a year. A rebel group backed by Congo’s eastern neighbor Rwanda advanced into Walikale, a town adjacent to Bisie. After capturing Goma and Bukavu in early 2018, the M23 rebels quickly advanced towards Walikale, two key cities in Congo’s North and South Kivu Provinces. The rebels left the town at the beginning of this month, after they agreed to engage in talks with the government as part of a peace agreement mediated with the U.S. Government. The Toronto-listed firm also announced that it had resumed exports. Alphamin has lowered its production forecast for tin to 17,500 tonnes from 20,000 tons earlier due to disruption. Alphamin produced around 17,000 tons last year. Alphamin reported that production in the quarter ending March fell 18%, to 4,300 tonnes, compared with 5,200 tons the previous quarter. Felix Njini reported from Johannesburg. Jane Merriman, Topra Chopra and Jane Merriman edited the article.
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Sources say that TK Elevator owners are considering the US as a potential multi-billion dollar IPO.
Three people familiar with the matter said that TK Elevator owners are considering the United States for a possible initial public offering (IPO) next year despite the market turmoil caused by U.S. Tariffs, which has slowed the pace of dealmaking. The people, who spoke on condition of anonymity as the matter was private, said that the discussions are still at an early stage, and the preparations will be formalised by the end of 2025 with a view of conducting a company sale or listing next year. People said that the business would likely be valued at over 20 billion euros in a transaction. However, there is no certainty about a deal, and the timing may change based on the market's developments. The company stated that the United States accounted around 35% of TK Elevator’s total sales in 2023/2024, which stood at 9,3 billion euros. One of the people who spoke said that the U.S. also has the sector leader Otis which commands the highest multiplier among its peers. This is one of many reasons it is being considered for an IPO. Thyssenkrupp sold its elevator business in 2020 - later renamed TK Elevator – for 17.2 billion euro to a group of bidders, led by Advent, Cinven, and Germany's RAG Foundation. Advent, Cinven and TK Elevator declined to comment about any potential IPO plans. In an emailed comment, TK Elevator said that it is committed to its growth, as well as the customers, partners, and stakeholders. U.S. ALLURE The recent actions of Titan Cement International and Holcim, both Swiss companies, have highlighted the hotly debated issue. The London Stock Exchange is trying to discourage companies from going to the U.S. LSEG data shows that TK Elevator ranks fourth in the world for elevator sales, behind U.S.-based Otis and Schindler, as well as Finland's Kone. These companies trade at an average EV/EBITDA multiplier of 14.8, according to LSEG. This ratio, based on an adjusted EBITDA (Earned Before Interest and Taxes) of 1.5 billion euro in fiscal year 2023/24, would give TK Elevator a value of over 22 billion euros. TK Elevator's sales have increased by over 16% since the fiscal year 2020/2021, and its adjusted EBITDA has grown by more that a third. This has resulted in an operating margin around 16%. The strong global demand, and stable service business, are to thank for this. Alat, a Saudi tech company, bought a 15% share in TK Elevator in February. It also launched a 160-million euro joint venture for elevator and escalator systems in Saudi Arabia. Thyssenkrupp said last year that a minority share it still held in the elevator business had a book valuation of 1 billion euro. It added it was flexible about its options, which depended largely on what TK Elevator’s majority owners did.
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Nigeria reduces electricity subsidies by 35% following tariff hike
Adebayo Adelabu, the Power Minister, announced on Thursday that Nigeria had achieved a reduction of 35% in electricity subsidies after a tariff hike implemented last year. This has eased some pressure on the public finances in Africa’s most populous country. Nigeria's power industry is burdened with a failing grid. Gas shortages, high credit and vandalism are also major problems. Many rely on expensive generators. Because the existing electricity tariffs weren't commercially viable, Nigeria spent nearly 200 billion Naira ($125.01 millions) per month on subsidies. Last year, the government eliminated subsidies for 15% of customers who were classified as heavy users. This included households and businesses that consumed more electricity. Adelabu said at a press conference in Abuja, that the targeted tariff adjustment had yielded important results. "The market generated an additional 700 billion Naira in revenues, which represents a 70% increase". The government has reduced its tariff deficit from 3 trillion to 1.9 trillion Naira. The power sector is still facing deep-seated challenges. The country's installed capacity is 13,000 megawatts but it produces about a third. This increases the need for expensive alternatives. The state-controlled electricity tariffs have historically been too low to allow distribution companies to pay their costs, and to pay generating firms. This has led to a ballooning of debt within the sector. The debt owed by power companies to the country has reached $4 trillion ($2.50 billion), causing plant closures. Adelabu stated that there are plans in place to ease the burden of debt, and the government will pay half the debt through budgetary allocations as well as promissory note discounts by companies. ($1 = 1599.8300 Naira) (Reporting and editing by Frances Kerry).
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Gold's record rally stops as investors cash out gains
Gold prices fell on Thursday, after a steep rise the previous day, as investors booked their profits before a long weekend. However, a softer dollar, and the escalating U.S. China trade tensions, kept gold above the $3300 per ounce mark. As of 8:58 am, spot gold was down 0.5% at $3,326.51 per ounce. ET (1258 GMT), the session ended with a record-high of $3,357.40. Bullion is up nearly 3% in the last week. U.S. Gold Futures fell 0.2% to $3,339.90. Tai Wong is an independent metals dealer. He said that gold may experience a short-term decline given its dramatic surge this week. There is a risk that there could be a deal announced this weekend, possibly with Japan. Gold's trajectory is still higher, however, given the deep uncertainty and concern that continue to plague asset markets. Gold prices rose 3.6% on Tuesday, mainly due to the U.S. president Donald Trump's decision to launch a probe on potential tariffs for all imports of critical minerals, as well as reviews on pharmaceuticals and chips imports. In one of the few face-to-face meetings since Trump's barrage of tariffs on global imports caused a market uproar and stoked fears of recession, Trump announced "big progress" on Wednesday in his negotiations with Japan. The dollar index rose on Thursday but still headed for a weekly decline. Gold becomes cheaper for other currency holders when the dollar weakens. We remain bullish on gold. Metals Focus, a consultancy, said that near-term corrections will likely occur as players tactically take profits or may experience margin calls due to another round of equity liquidity. Other metals, such as spot silver, fell by 0.9%, to $32.46 per ounce. Platinum dropped 1%, to $957.18. Palladium declined 2.3%, to $949.72.
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Italy will meet NATO's defence spending target of 2% GDP this year
Giancarlo Giorgetti, the Economy Minister at a Thursday hearing in parliament, said that Italy would meet NATO's target of 2% GDP on defence expenditures this year. According to NATO, Italy's projected defense budget for 2024 is 1.49% GDP. This is one of the lowest levels of any country in the alliance. The United States are putting pressure on Italy to increase its expenditures. Giorgetti, speaking to lawmakers about Italy's multiyear budget plan, said: "We are acutely conscious of the need for this expenditure to increase in the coming year." Giorgetti stated that Italy's accounting criteria would need to be adjusted to conform to NATO rules, and items previously excluded from defence spending will now be included. Included in this are moneys spent on certain civil technologies and pensions for retired soldiers. Donald Trump, the U.S. president, is pressuring NATO allies to increase military spending up to 5% of their GDP. This was something that Italy's Minister of Defence Guido Crosetto called "unthinkable" this week. The European Commission proposed that member states could increase defence spending by 1,5% of GDP every year for four consecutive years without any disciplinary measures, which normally kick in when a government's deficit reaches 3% of GDP. Giorgetti stated that Italy, which is heavily indebted, does not plan to use this leeway at the moment. GROWTH PROBLEMS The central bank of Italy, which also testified before the parliament on Thursday, stated that defence spending could be increased partly by borrowing extra and partly by other budget savings and tax increases. The government's latest economic targets, released last week by the Ministry of Finance, committed to keeping its budget deficit under control even though it cut its growth forecasts this year and the next due to uncertainty surrounding U.S. tariffs. The UPB, the Italian parliamentary budget watchdog, forecasted on Thursday that Trump tariffs would lower Italy's GDP 0.3 percentage points. This could lead to a loss of 68,000 jobs. The report did not specify a timeline. The Bank of Italy has warned that delays in the allocation of the money, which was supposed to happen by 2026, could lead to missed targets. The government has set ambitious goals to recover lost ground. It spent around 72.81 billion euros (66.81 billion dollars) in March, or 34% of EU funds available. Budget framework projects EU COVID fund expenditures of 40 billion euro in 2025. Next year, the budget forecasts 80 billion euro and 12 billion in 2027. Giorgetti stated that it was inevitable that a part of the expenditures would have to be accounted for beyond 2026.
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Putin's envoy to Russia says that Witkoff's contacts with the Russians are extremely productive
Putin's investment representative said that the meeting between Russian President Vladimir Putin and U.S. president Donald Trump's Special Envoy Steve Witkoff, was very productive. However, various countries were trying to disrupt dialogues between Moscow Washington. Putin and Witkoff spoke for nearly five hours in St. Petersburg, the former imperial city. Yuri Ushakov and Kirill Dmitriev, Putin's investment envoy, were also present. Kirill Dmitriev, a reporter in the Kremlin at the time of a visit to Moscow by Qatari Sheikh Tamim Bin Hamad al-Thani, said that "the meeting was extremely fruitful." Dmitriev added that a variety of unidentified media spread misinformation. "A very constructive dialogue is taking place." The dialogue is taking place in difficult circumstances - there are constant attacks and misinformation. Witkoff, after the meeting with Putin told Fox News it was now clear what Putin wants for a lasting peace in Ukraine. Witkoff said that the Russia-U.S. relations could be "very, very significant for the world." He added that the relationship between the two countries also offered "very compelling business opportunities". (Reporting and editing by Guy Faulconbridge; reporting by Vladimir Soldatkin)
Helene deaths exceed 100, supplies rushed to storm-ravaged North Carolina
Emergency situation responders in western North Carolina were racing on Monday to try to reach people who stay unaccounted for 3 days after Typhoon Helene tore through the southeastern United States, eliminating more than 100 people across 6 states, wiping out interactions and leaving millions without power.
In mountainous, hard-hit Bumcombe County, which includes the city of Asheville, 35 individuals have passed away, the county constable stated at a news briefing on Monday. The county was set to start dispersing food and water later in the day to citizens, after some materials were airlifted to the area that has actually been largely separated by flooded roads and power outages.
We do not have water, and we do not have power across the majority of of the county ... the roadways are still incredibly harmful, County Supervisor Avril Pinder stated.
In surrounding Yancey County, the storm snapped century-old trees around the home of Taylor Shelton, 44. It took her husband two days with a chainsaw to cut a passage through the felled trees in their driveway and the close-by roadway so they might drive themselves and their 3 children out of the dark house.
With no cellphone service, they count on a next-door neighbor who works as an EMT and had a walkie talkie to help them figure out which roadways out of the mountains were satisfactory.
The destruction is unbelievable, she stated in a phone interview.
She has actually still not been able to reach her other half's parents, who live in the close-by town of Burnsville, which was likewise severely hit.
On Monday, they were attempting to drive back home to choose up their pet and 2 guinea pigs and neglect food for the cat and the chickens. Their automobile was loaded with coffee, donuts and diapers for their neighbors.
It looks like 'War of the Worlds,' very, very big trees are down everywhere, she stated. We saw homes that are simply washed away.
Lake Draw, around 20 miles (32 km) southeast of Asheville, was covered with floating debris from homes and businesses washed away by mountain streams that surround the lake, a video published on X by Charlotte City Councilman Tariq Bokhari showed.
Cell service remained out in big swaths from Ohio through the Carolinas and into Florida. Some 2.1 million homes and organizations lacked power early on Monday, according to the site Poweroutage.us.
The lack of communication is worrying, North Carolina Governor Roy Cooper said on Monday in an interview with CNN. We. know that there are individuals missing, and we know that there's. going to be significant deaths at the end of this and our. prayers and our hearts head out to these households.
Cooper, who stated he had actually not heard from his boy and child. in 72 hours, included that local officials and rescue workers were. performing door-to-door well-being checks in many communities.
In Buncombe, officials stated they are conducting checks of. 150 priority households that consist of senior citizens or. residents with medical issues.
BIDEN TO VISIT
The National Guard and emergency situation workers from 19 states have. been deployed to assist, in addition to Federal Emergency Situation Management. Firm personnel. Cooper stated the rugged surface in the. mountains of western North Carolina makes it nearly impossible. to pass through with landslides and flooding.
So we're depending a lot on air power, helicopters with. hoist capability to get products in, he stated.
President Joe Biden said he would go to North Carolina later. this week and may ask Congress to return to Washington for a. special session to pass extra aid funding.
There's absolutely nothing like wondering, 'is my partner, better half, son,. daughter, mother, father, alive?' Biden stated at the White. House. Much more will stay without electrical energy, water, food. and interactions, and whose homes and companies are cleaned. away in an instant. I desire them to know we're not leaving until. the task is done.
Vice President and Democratic presidential candidate Kamala. Harris cut short a campaign journey in Nevada on Monday to take. part in rundowns in Washington on the hurricane reaction and. will check out the region when doing so will not hinder action. efforts, a White House official stated.
Republican presidential candidate Donald Trump took a trip to. Valdosta, Georgia, on Monday afternoon to visit a furniture. shop that was heavily damaged in the storm.
Helene knocked into Florida's Gulf Coast on Thursday night,. setting off days of driving rain and destroying homes that had. stood for years. As it moved north it washed out roads,. decimated neighborhoods and left many communities without water. and basic requirements.
The death toll was over 100 in the Carolinas, Georgia,. Florida, Tennessee and Virginia, and most likely to rise.
Georgia Guv Brian Kemp said on Monday that at least 25. people in his state had died, including a firefighter responding. to emergency calls during the storm and a mom and her. 1-month-old twins who were killed by a falling tree.
Damage quotes varied from $15 billion to more than $100. billion, insurance providers and forecasters stated over the weekend, as. water systems, interactions and critical transport paths. were harmed or destroyed.
Residential or commercial property damage and lost economic output will end up being more. clear as authorities evaluate the destruction.
(source: Reuters)