Latest News
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Ahead of Rio Tinto buyout, Arcadium's earnings dips on moving lithium prices
Arcadium, the lithium producer that has consented to sell itself to Rio Tinto, published an 82% drop in quarterly earnings on Thursday that missed Wall Street's expectations due to sliding prices of the electric vehicle battery metal. Much of the lithium industry is competing with a supply glut brought on in part by a softening of aggressive EV adoption rates and oversupply from China. Yet that market imbalance is predicted to end later on this years, making Arcadium's portfolio of leading lithium projects across the globe a prime target for Rio, which is paying $6.7 billion for the company. Rio CEO Jakob Stausholm initially approached Arcadium about a. prospective deal in June and the mining giant's board proposed. $ 5.25 per share, an offer that Arcadium's board declined,. according to a recent regulative filing. Negotiations continued and Arcadium ultimately accepted. supply Rio with sensitive service details, according to. the filings. Reuters was very first to report the two sides remained in. settlements in early October, and five days later on both sides. consented to a sweetened deal of $5.85 per share in money. We are delighted that this deal will provide us the. opportunity to speed up and expand our technique, Arcadium CEO. Paul Graves said in a declaration on Thursday. Arcadium published third-quarter net income of $16.1 million,. or 1 cent per share, compared to $87.4 million, or 17 cents per. share, in the year-ago quarter. Experts had actually expected revenues. of 4 cents per share, according to IBES information from LSEG. Shares of the Philadelphia-based company were the same in. after-hours trading. They fell about 1% on Thursday to close at. $ 5.38. Offered the Rio buyout, slated to close next year, Arcadium. does not prepare to hold a conference call to discuss the outcomes.
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GRAINS-Soybeans climb near one-month high as vegoils shoot greater
Chicago Board of Trade soybean futures leapt to their greatest level in about a month on Thursday on spillover strength from rallying grease markets, traders stated. Corn futures also closed higher and exceeded a one-month peak. Rising costs for CBOT soyoil and Malaysian palm oil supported soybeans and overshadowed concerns over when U.S. farmers might feel impacts from increased trade tensions with China, following Donald Trump's re-election as U.S. president. Soyoil skyrocketed to a four-month high up on strong need, while palm oil increased after getting on Wednesday to the highest level in more than two years. Palm oil has been going crazy on the advantage, said Tomm Pfitzenmaier, expert for Summit Commodity Brokerage in Iowa. CBOT soybeans finished up 22-1/2 at $10.26-1/ 4 per bushel and reached the greatest level given that Oct. 8 in the most-active agreement. Technical purchasing accelerated gains, brokers said. In soyoil, December futures advanced 1.98 cents to 48.32 cents per pound. Weekly U.S. soyoil export sales for 2024-25 were 114,300 metric heaps, the U.S. Department of Farming stated, squashing experts' quotes for zero to 50,000 loads. Expectations that Trump might enforce tariffs on U.S. imports of used cooking oil likewise supported domestic need projections for soyoil, traders said. On Wednesday, soybean futures recovered after sinking on issues that U.S. soy exports to China will suffer due to Trump's promises to slap tariffs on Chinese goods. A tariff battle with Beijing may not affect U.S. soybean export sales till next summer, though, and importers might boost purchasing before Trump takes office in January, traders stated. There's a lot of undertones and possibilities here that could be very much various than just 'Trump's chosen. We're. going directly into a trade war,' said Jim Gerlach, president. of A/C Trading. CBOT wheat fell 1-3/4 cents to $5.71-1/ 2 per bushel. Corn futures rose 1-1/4 cents to $4.27-1/ 2 per bushel and. reached the greatest given that Oct. 3. Strong need from importers and domestic purchasers underpinned. corn, stated traders, who will examine month-to-month USDA crop information on. Friday.
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MP Materials posts smaller-than-expected loss on greater output, sales
U.S. uncommon earths miner and processor MP Products Corp. on Thursday reported a smallerthanexpected loss in the third quarter,. assisted by greater production and sales volumes of the tactical products. MP procedures rock it draws out from its Mountain Pass mine in California into. uncommon earths concentrate that is delivered to China for refining. The business offered 9,729 metric lots of that concentrate throughout the quarter,. 6% higher than the year-ago period. The growth in sales was driven by greater production volumes, reflecting. greater mineral healings and operational performances, the business stated. Nevertheless, understood prices of rare earth concentrates decreased 23% in the. quarter due to continuous soft prices environment for uncommon earth items. MP Products produced 478 tons of neodymium and praseodymium (NdPr)-- the. 2 most in-demand unusual earths-- during the quarter, with 404 tons offered. Sales. almost tripled sequentially. Despite continued weak market pricing, increased NdPr sales volumes drove a. go back to year-over-year profits growth, stated CEO Jim Litinsky, who is likewise the. largest shareholder of the business with an 11.2% stake. Cost of sales increased over 150% in the quarter, but were partly offset by a. decrease of an inventory reserve of $2.7 million tape-recorded in the quarter. Omitting one-time items, MP published a loss of 12 cents per share, compared. with analysts' expectations of a loss of 13 cents per share, according to information. compiled by LSEG.
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Beast Drink misses out on quarterly results on weaker need
Monster Beverage missed out on Wall Street estimates for thirdquarter sales and earnings on Thursday, as costconscious customers cut down investing in its higherpriced drinks. Shares of the business were down about 3% after the bell. Consumers, especially from low to middle-income groups, have been suppressing their yearnings for branded non-alcoholic beverages and choosing less expensive options. This has actually injured sales of business like Monster Beverage, Keurig Dr Pepper and PepsiCo, while Coca-Cola had the ability to draw in customers with tight budgets in the United States. For the third-quarter, the company published net sales of $1.88. billion, compared with analysts' average quote of $1.91. billion, according to information compiled by LSEG. On an adjusted basis, it published revenue of 40 cents per. share, compared to price quotes of 43 cents per share. Hurricanes Helene and Milton impacted sales at retail in. particular states in September and October, nevertheless we can not. determine the impact on our business, said CEO Hilton. Schlosberg. Nevertheless, gain from taking 5% cost walkings during the. quarter ended Sept. 30, coupled with lower input expenses assisted. the company's margins. Monster's quarterly gross profit as a percentage of sales. was 53.2%, compared to 53.0% a year back.
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Chile's Copec beats third-quarter expectations on forestry arm
Chilean commercial corporation Empresas Copec published a betterthanexpected thirdquarter net earnings on Thursday, backed by more powerful outcomes from its forestry arm. Copec's net profit landed at $404.3 million, above the $ 346.59 million predicted by experts surveyed by LSEG and reversing a net loss of $30.96 million in the exact same period last year. Incomes stood at $7.12 billion for the quarter, also beating the LSEG quote of $6.95 billion and somewhat above the $7.09 billion reported in 2015. Copec's forestry arm Arauco benefited as pulp volumes rose 21% and rates rose 13%. Production likewise rose from a year-ago quarter that was struck by an arranged shutdown, Copec stated in its earnings report, noting the Valdivia plant was halted from April to August last year. Arauco accounts for the bulk of Copec's profits, though the company also runs a large fuel-distribution business, holds stakes in mining and runs a fleet of fishing ships and factories. Copec's core profits, or profits before interest, taxes, depreciation, and amortization
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Gold holds firm after United States Fed rate cut, softer dollar
Gold prices rose more than 1% on Thursday, helped by a retreat in the U.S. dollar, while the Federal Reserve cut rate of interest by a quarter of a percentage point as extensively anticipated. Spot gold was up 1.2% at $2,691.36 per ounce since 2:22 p.m. EST (1919 GMT), after dropping to a three-week low on Wednesday. U.S. gold futures settled 1.1% greater at $ 2,705.80. At the end of a two-day policy meeting, the U.S. main bank reduced the benchmark overnight rate of interest to the 4.50% -4.75% range, with policymakers bearing in mind of a job market that has usually eased. Lower U.S. rate of interest put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion. Gold stays in a strong bull market and no event this week, from the election to today's Fed choice, is likely to modification that, said Tai Wong, an independent metals trader. Unless Powell leans towards a time out today, gold is most likely to reclaim yesterday's knee-jerk losses, Wong added. The dollar index was down 0.6% against its competitors after increasing to a four-month high after Republican former President Donald Trump's win in Tuesday's presidential election. Traders are presently pricing in another 25 basis point cut by the Fed in December, according to LSEG information. Financiers now look forward to comments from Fed Chair Jerome Powell's interview due at 2:30 p.m. ET for more cues on monetary policy path. With Trump's upcoming go back to power, any future rate reductions could well be more difficult to attain due to issues that greater costs and stickier inflation force central banks to keep policy restrictive for longer than they would like, independent expert Michael Hewson wrote in a note. Somewhere else, spot silver rose 1.8% to $31.71 per ounce, platinum gained 0.6% to $992.65 and palladium shed 1.3% to $1,021.25.
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EU-Mercosur trade offer ought to reward conservation, says Stanford professor
With the EUMercosur complimentary trade offer delayed for many years by European environmental concerns, a Stanford teacher has proposed a way to conquer a. logging hurdle: make tariff reduction contingent on. preservation progress. After twenty years of talks, the European Union and the. South American bloc, that makes up Brazil, Argentina, Uruguay,. Paraguay and Bolivia, reached agreement in principle in 2019 on. an open market deal, but it was not signed due to concerns over. environmental safeguards. Brand-new European legislation on avoiding the entry of. products from deforested locations was viewed as protectionist by. Brazil and the EU agreed to postpone implementation until completion. of next year. Bard Harstad, teacher of political economy at the Stanford. Graduate School of Company, thinks that connecting the. tariff-reduction schedule to logging levels would benefit. both blocs. Mercosur countries might see tariffs reduced faster if. their deforestation levels drop every year, and more. preservation will allay EU concerns, Harstad said. This would be an incentive to reinforce conservation,. since a boost in deforestation could put the tariff. timetable back to no, with greater tariffs and even worse regards to. trade, he stated. Harstad stated the EU-Mercosur trade deal, if ratified in its. current type, would lead to a larger market and broadened. agricultural output with associated logging in Brazil's. Amazon rainforest. And yet, if the trade deal is not ratified, Mercosur might. export more to other countries with weaker or no ecological. safeguards, he said. With minor adjustments, the trade offer can be used as a. carrot that inspires tropical forest preservation rather of. logging, he added. The European Commission declined to discuss Harstad's. proposal, stating it is devoted to concluding the negotiations. The EU focus stays on making sure that the contract. delivers on the EU's sustainability goals, while respecting the. EU's sensitivities in the farming sector, a commission. representative said. Diplomats associated with the settlements stated the proposal was. impractical and questioned it could be acceptable to Mercosur. countries that would argue that the burden of environmental. protection would fall almost solely on them. It would crash on takeoff. Execution would be. hell. How do you establish a practical relation between more. preservation measures and more tariff cuts? stated one diplomat. by telephone.
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Gold ETF demand turns favorable for year-to-date, states WGC
International physicallybacked gold exchangetraded funds (ETFs) saw inflows for the sixth straight month in October, with yeartodate streams turning favorable for the very first time this year, the World Gold Council (WGC) stated on Thursday. Demand was supported by North American and Asian circulations, the WGC included. As geopolitical tensions rise and market uncertainties continue, investors have actually gathered to gold ETFs, which function as vaults of wealth, holding gold on behalf of investors and driving substantial need for the rare-earth element. Gold-backed ETFs drew in $4.3 billion of inflows in October to lift collective holdings to 3,244 heaps, the WGC said. After three years of outflows, driven by high interest rates, the past 6 months have seen a marked reversal. Continued inflows and record gold costs raised international properties under management to a month-end record of $286 billion in October, the WGC said in a note. The WGC, an industry body grouping worldwide gold miners, said North American gold demand was boosted by unpredictability around the U.S. governmental election. The military escalation in the Middle East, together with reports of North Korean soldiers signing up with Russia in the Ukraine dispute, might also have driven increased demand for gold ETFs. The WGC included that around the world gold trading volumes edged higher, supported by over-the-counter (OTC) and ETF activities. Bullion is poised to be one of 2024's top-performing properties, with prices up 33% so far this year. The metal struck a. record high of $2,790.15 per ounce on Oct. 31, fueled by the. start of U.S. rate of interest cuts and geopolitical tensions.
Judge guidelines Mexican steelmaker AHMSA is bankrupt
A Mexican judge has stated local steelmaker Altos Hornos de Mexico is bankrupt, ruling that the firm will need to be offered and those funds utilized to pay back debt, following years of crisis connected to corruption allegations, court files revealed on Thursday revealed.
Its previous president, Alonso Ancira, was detained in Spain in 2019 in connection with an examination into paying kickbacks to authorities at Mexico's state energy company Pemex in order to offer a fertilizer plant at an inflated cost.
According to the court judgment, the personal bankruptcy was stated after the due date for a resolution in between AHMSA and its lenders ended on Nov. 5 without reaching any agreement.
AHMSA was accused of paying $3.7 million in bribes to a. shell business apparently established by Odebrecht, the Brazilian. conglomerate which admitted to paying over $3 billion in allurements. across Latin America.
After Ancira's arrest, Mexico's state-owned electricity. business CFE canceled a number of supply contracts with AHMSA. The. federal government of former President Andres Manuel Lopez Obrador later. made an agreement with Ancira for the compensation of $200. million to Pemex over the fertilizer plant sale.
The judge ruled that the the greatest possible economic. resources be acquired in order to pay the lenders, according. to court files made public on Thursday.
Established in 1942 in Mexico's northern Coahuila state, AHMSA. was one of the most crucial steel companies in Latin America,. however its operations have been suspended for several years due to. monetary problems, impacting around 20,000 employees.
(source: Reuters)