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Caribbean Island residents ask the court to order Dutch State to take climate action
Residents from the Dutch Caribbean told a court Tuesday that the climate change has made the island of Bonaire unbearably dry and hot. They asked the judges to order Dutch state to reduce greenhouse gases faster. Onnie Emerenciana (a farmer in his sixties) told the court the heat was bad for the elderly, the droughts were bad for the crops, and the rising sea level could wipe out the historically important slave huts that once stood on the beaches of the island. Emerenciana, a district court judge in The Hague, said: "We are suffering under the effects" of greenhouse gas emission to which we barely contributed. PLAINTIFFS WANT DUTCH TO TARGET NET ZERO BY 2040 Bonaire, in the southern Caribbean, is an ex-Dutch colony that became a Dutch special municipality in 2010. Around 20,000 of its residents are Dutch. Eight named plaintiffs, joined by Greenpeace and other environmentalist groups, are calling on the Netherlands to reduce its greenhouse gas emissions to zero in 2040, ten years earlier than its current plans. They also claim that the Dutch government is not doing enough to protect the island from rising sea levels. Experts in climate change cases claim that the Dutch case is the first time the European Climate ruling of 2024 and the World Court's opinion from this year have been tested on a national scale. If the Netherlands succeeds, they will have to raise their climate ambitions above the current European Union goals - setting new standards for climate action in Europe," Lucy Maxwell from the Climate Litigation Network said. Michael Bacon, the plaintiffs' attorney, told judges that "effective climate policy is neither a political decision nor a choice. It is a duty and right." The Dutch state's lawyers argued that courts should not be able to determine government policy. Edward Brans, state attorney, said that the state has met its obligations to Bonaire through its climate policy and by achieving climate targets set jointly with the European Union. There is still no date set for the ruling. (Reporting by Stephanie van den Berg. Ali Withers contributed additional reporting from Copenhagen. Alison Williams, Mark Potter and Alison Williams edited the article.
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Indian jeweller Titan posts slower sales as surge in gold prices dent demand
Titan Company in India reported a 18% increase in domestic sales for the second quarter, compared to the 25% that it recorded during the same time last year. This was due to the rising gold prices which hampered demand for high-carat jewellery. In its quarterly business update, the Bengaluru based company reported that the jewellery business, which accounts for close to 90% overall revenue, had grown 19% on an annual basis. Gold spot prices increased 16.4% during the third quarter, as investors sought out the safest commodity amid global economic instability. The company reported that higher gold prices led to "a marginal year-on-year decrease" in the number of buyers, even though ticket prices increased as fewer people bought more expensive items. Titan said that the growth of studs in its Tanishq, Mia, and Zoya jewellery portfolios collectively reached the mid-teens. This was higher than the growth of plain gold jewellery. The company reported that investment-grade gold coin sales continued to be strong for the quarter as Indians continued to choose bullion as an asset of value. Since coins have lower profit margins than jewelry, this shift has slowed the growth of overall margins in recent quarters. Sales growth in the company's second largest business by revenue was 12%. Analog segment sales grew 17%. Tanishq, which has more than doubled its business in America, was the main driver of the 86% growth.
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Indian jeweller Titan posts slower sales as surge in gold prices dent demand
Titan Company in India reported a 18% increase in domestic sales for the second quarter, compared to the 25% that it recorded during the same time last year. This was due to the rising gold prices which hampered demand for high-carat jewellery. In its quarterly business update, the Bengaluru based company reported that the jewellery business, which accounts for close to 90% overall revenue, had grown 19% on an annual basis. Gold spot prices increased 16.4% during the third quarter, as investors sought out the safest commodity amid global economic instability. The company reported that higher gold prices led to "a marginal year-on-year decrease" in the number of buyers, despite ticket prices rising as fewer people bought more expensive items. Titan said that the growth of studs in its Tanishq, Mia, and Zoya jewellery portfolios collectively reached the mid-teens. This was higher than the growth of plain gold jewellery. The company reported that investment-grade gold coin sales continued to be strong for the quarter as Indians chose the gold bullion as an asset of value. Since coins have lower profit margins than jewelry, this shift has slowed the growth of overall margins in recent quarters. Sales growth in the company's second largest business by revenue was 12%. Analog segment sales grew 17%. Tanishq, which has more than doubled its business in America, was the main driver of the 86% growth. (Reporting from Ananta Agarwal in Bengaluru and Urvi dugar; editing by Harikrishnan Nair.)
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Copper gains, but remains below the Monday peak due to a firm dollar
On Tuesday, copper prices rose on the back of continued mine disruptions. However, they remained below 16-month-highs reached in the previous session due to a stronger dollar. In open-outcry official trading, three-month copper at the London Metal Exchange rose 0.4% to $10,696 per kilogram, after hitting its highest level since May 2024 at $10800 on Monday. LME copper prices have risen 21% this year. Recent weeks saw a rise in price due to mine problems in Chile and Congo, as well as Indonesia. Seven workers were killed in a mudslide disaster at the Grasberg copper mine, which is one of the largest mines in the world. The El Teniente Mine in Chile and Kamoa-Kakula mine in the Democratic Republic of Congo have also experienced disruptions. "The disruptions have been huge so I thought that copper would rise faster than it has, but the dollar is getting stronger," said Dan Smith. One headwind that could explain why we aren't doing better is the slowdown of sales for electric vehicles in many places. In the first half of this year, the average monthly EV sales in China grew by 36%, but that slowed to 6% in august. Smith said that the LME copper price was nearing a band of resistance between $10,750 and just under $11,000 where it had failed to break out three times previously, in May 20,21, March 2020, and May 2024. If we go backwards from here, the technical outlook is quite bearish." The dollar index also benefited from the weaker euro and yen. A stronger dollar makes greenback-denominated assets more expensive for buyers using other currencies. Other metals include LME aluminium, which fell 0.3% to 2,717.50 per ton. Nickel dropped 0.1% to $16,470, tin declined 0.7% to $35,550, zinc rose 0.6% to 3,025 and led added 0.1% at $2,007. Golden Week, which runs from 1-8 October, is a time when Chinese markets will be closed. Click or to see the latest news in metals, and other topics. (Reporting done by Eric Onstad. Additional reporting by Brijesh Patel in Bengaluru. Kate Mayberry, Mark Potter and Kate Mayberry edited the story.
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Ivanhoe Mines records record zinc production in Congo's Kipushi Mine
Ivanhoe Mines reported that its flagship Kamoa, Kakula, and Kipushi Mines in the Democratic Republic of Congo produced 71 226 metric tonnes of copper, and a record-breaking 57 200 tons of zinc, in the third quarter. Vancouver-based miner, Vancouver Copper Mines Ltd., said that it was on track to achieve its full-year production target of between 370,000 and 420,000 tons as mining moves to higher-grade areas in Kakula’s western section. The company reported that the zinc production at Kipushi increased 37% in the last quarter, largely due to a program designed to eliminate processing bottlenecks. This has helped the mine become one of the top producers around the world. ADDRESSING CHALLENGES AT KAKULA Ivanhoe suffered significant production setbacks in the first half of this year as a result of seismic activity at Kakula Mine, which disrupted underground operations. Copper grades also dropped. Since then, the company has increased its efforts to overcome these challenges. It secured $500 million from Qatar’s sovereign wealth fund in order to expand operations and position Kamoa Kakula as one of the top global copper producers. Reports in September indicated that the company is in constant contact with sovereign wealth funds to discuss potential investments in order to boost production of critical minerals such as copper. Ivanhoe has confirmed that Africa's biggest copper smelter will be operating in November. The facility is powered by an uninterruptible 60 megawatt power supply, and a 60 MW diesel backup. The smelter is expected to process all the concentrate from Kamoa Kakula's concentrators, and produce 700,000 tonnes of sulphuric acids annually. Sulphuric Acid is a critical reagent for the copperbelt. Ivanhoe has maintained its guidance for zinc production at Kipushi in 2025, which is between 180,000 and 240,000 tonnes. Reporting by Yassin Kobi. Maxwell Akalaare Adombila wrote the article. (Editing by Pratima Deai and Mark Potter).
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WeWork India's $338 Million IPO was fully subscribed by institutional investors on the last day.
WeWork India Management’s $338 million IPO, which was launched on Tuesday at the end of the bidding period, was fully subscribed by the last day. Institutional investors were largely responsible for this demand while retail investors remained cautious due to its high valuation after recent co-working listings. Why it's important WeWork India’s IPO will be a test for investor interest in the domestic coworking sector, which has seen a flurry of listings due to a growing demand for flexible offices. WeWork Global will continue to be the exclusive licensee of the company. WeWork Global was once valued at $47 Billion before shelving its 2019 IPO. CONTEXT WeWork India wants to be valued at 86.85 billion rupies ($978.5m) at the upper end of its price range of 615-648 rupies per share, according calculations. This figure is far higher than those of its newly listed peers. IndiQube Spaces debuted in July with a value of 44.13 billion rupies, while Smartworks Coworking Spaces had a value of 42.13 billion rupies. Debuted At 52.96 billion Rupees in the following month. In the face of thin profit margins, high lease costs and low rental rates, valuation is emerging as a key differentiator. Aishvarya dadeech, chief executive officer of Fident Asset Management, said that WeWork's price is higher than other companies like Awfis and Smartworks. This makes investors wary. IndiQube Spaces had a modest debut in July while Smartworks experienced gains on the day of listing. By the Numbers Exchange data revealed that WeWork India’s IPO was a full offering for sale of 46,3 million shares. Bids totaling 18.97 billion rupees were received as of 5:15 p.m. IST. Retail investors bid 0.61 times the quota while qualified institutional buyers bid 1.79 times. After strong institutional demand, the issue that was covered by only 16% in the morning, has been picked up. On October 10, shares are scheduled to be listed on the BSE/NSE exchanges.
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Sources say that Emirates Global Aluminium is interested in acquiring Brazilian aluminum firm CBA.
Two sources have confirmed that Emirates Global Aluminium, based in the United Arab Emirates, is looking to acquire Companhia Brasileira de Aluminio. The Brazilian producer's operation along the entire production line has made it a desirable target. People with knowledge of the matter claim that Morgan Stanley, which is the investment banking advisor to EGA and jointly owned by Abu Dhabi sovereign fund Mubadala, and the Dubai sovereign fund Investment Corporation of Dubai (both Abu Dhabi-based sovereign funds), is working on a potential deal with Morgan Stanley. According to LSEG, CBA's market capitalisation was $487 million at Monday's closing. Two sources requested anonymity as the matter was private. Could not determine if a proposal has been made. CBA produces low-carbon aluminum in seven Brazilian states, where Brazilian conglomerate Votorantim SA owns a 69% share according to LSEG. The company's operations cover the entire aluminum production chain from bauxite extraction and refinement to smelting, and diverse primary aluminium products. CBA, a "total asset", is a "comprehensive asset" that includes upstream operations, own mines, and access to bauxite. This could improve an investor's position in the market, according to one source. EGA stated that it continuously evaluates opportunities for growth but does not comment upon market rumours or speculation. CBA, Morgan Stanley, and Votorantim declined comment. EGA had predicted that the volatility of aluminium prices in 2018 would be due to global trade tensions. President Donald Trump imposed tariffs for steel and aluminum imports to the United States. This is a major market for United Arab Emirates' suppliers. EGA was one of a group companies that signed deals worth $200 billion with the Trump Administration after the president visited the region in may. EGA announced that it would invest $4 billion to build a primary aluminium smelter in Oklahoma. This will be the first "primary" aluminum production plant built in the U.S. in over 30 years. The plans will be subject to the availability of a long-term competitive power supply, as well as state and local incentives for investment and tax credit arrangements. According to the company, it is in advanced discussions with Public Service Company of Oklahoma and the Oklahoma Government. EGA reported in March that its annual net profit in 2024 would be down by 23,5% as a result of an impairment charge due to the suspension of exports of its operations in Guinea, and the introduction of corporate tax in United Arab Emirates. Luciana Magnhaes reported from Sao Paulo; Hadeel al Sayegh reported from Dubai; and Anirban SEN in New York. Additional reporting Tatiana Bautzer. Anousha Sakoui, Sharon Singleton and Anousha Saoui edited the article.
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German drywall manufacturer Knauf fails in its bid to sell Russia business
The German-owned Knauf Group, a family-owned construction material manufacturer, announced on Tuesday that its attempts to sell off its Russian business, which have been ongoing since April of last year, failed. In a press release, the family-owned business with sales of about 18,20 billion euros (15.6 billion euro) said that a prospective buyer who was not named had abandoned talks. The business will continue to be run separately by local management in Russia "in full compliance" with sanctions, it said. Knauf, which makes gypsum board, drywall and insulation slabs said that in April 2024 it was working to complete a deal to leave Russia. It has more than 4,000 workers and businesses there, including extraction of raw materials, manufacturing, and sales. The EU is looking for ways to increase its support for Ukraine, and countermeasures for Russia's attacks on its neighbouring nation. The work includes the use of frozen Russian assets in the West for Ukraine's defence, reconstruction and reconstruction following Moscow's invasion in Ukraine in 2022. Reporting by Ludwig Burger Editing Madeline Chambers
Private credit cash shifts from the 'risky West' to emerging markets
Angola has a complex network of pipelines that snake along the Atlantic coast. They lead to a new refinery, which signals Angola's drive for energy independence. It also shows how private lenders are being used instead of banks to finance a large-scale project.
"We are not the lender last resort," said Felipe Berliner. He is the co-founder and CEO of Gemcorp, a emerging markets asset management company that provided the majority of the funding for the refinery using private capital. "Sometimes, we are the sole lender." Veteran investors said that private credit for emerging market countries -- driven by investors’ hunt for yields, and saturation of developed Western markets -- may grow exponentially. This could provide tens or hundreds of billions as bilateral lending, and foreign aid, shrink.
Pramol Dhawan is the head of emerging market portfolio management at PIMCO. "The need to global reallocate isn't a hedge - it's a long-term thesis."
PIMCO expects to increase annual lending to $10 billion by 30% in this year. Other investors also aim to increase their investments.
RAPID GROWTH BUT SQUEEZED Yields
According to the Bank for International Settlements, private credit has skyrocketed in the last 20 years. Global assets under management have risen from $200 million to more than $1.2 trillion, up from $200 millions at the beginning of the 2000s.
This funding helped fill a gap in financing for businesses, especially those based in the U.S.
Today, emerging market countries receive less than 10%. The U.S., Europe and other developed markets are saturated. Margins have been eroded by competition and bets become more risky. The IMF and JPMorgan CEO Jamie Dimon both warn that private credit is shaky.
Investors say that emerging markets have projects that are so eager for money, they can choose from a wide range of options.
Matt Christ, portfolio director at Ninety One Global Investment Manager in London, said that emerging market companies are now more conservative. The developed markets are "priced to perfection", while the emerging markets offer greater upside.
He said EM rates are 150-300 basis points higher than those of developed markets, and that risk is often lower as ratings suggest.
Christ, whose global private credit portfolio is currently around $8 billion, believes that it has the potential to grow to $15 billion. He said that EM firms are accustomed to political and economic instability, unlike Western firms.
He said: "Developed market firms are entering a new era, one they have never known before. But emerging market firms have been doing it for a very long time."
Gustavo Ferraro is the head of capital solutions for Gramercy Funds, a fund manager that focuses on emerging markets. He also stated that EM returns and risk profiles are better than those in developed markets.
He said that the U.S. stock market was no longer the benchmark. "Our (investors') desire yield and uncorrelated exposure."
Gramercy's private credit investment has doubled in five years, to $4.8 billion. It is focused on Latin America and Turkey, as well as parts of Africa.
Ninety One stated that private credit fills the gap in Turkey where banks are limited to lend due to the authorities' efforts at reducing inflation.
From Sovereigns to Saudi Companies
The majority of EM private credits are asset-backed, giving investors everything from shares in the company to control over a project.
Structure favors infrastructure but funding is going to the sovereign budgets of Turkish cities and their transport networks.
Angola will be able to refine 60,000 barrels of oil per day with the new refinery. Gemcorp and Sonangol, which are both funding sources, have contributed a large portion of this investment. The No. 2 oil producer in sub-Saharan Africa will be less dependent on expensive fuel imports. The first phase of the plant, which costs $475 million, should be operational by the end this year.
Gemcorp also funded an wind farm on Lake Turkana, in Kenya. It also funded water sanitation projects in Angola as well as power transmissions between Angola & Namibia.
Gemcorp's survey revealed that 67% of EM Private Credit went to large and medium corporations, while 22% was allocated to sovereign or quasi-sovereign project.
Gemcorp has launched a fund of $1 billion aimed at mid-market Saudi firms.
Berliner stated that "they are underfunded and they do not have the flexibility capital they need to sustain growth from the fiscal push of the government."
The firm also finances Central American commodities exported to the U.S.A., West African prepayment fuel deals and gold producers. Private credit, according to Berliner and other experts, is fast, flexible and customizable. It can be tailored for any business, from upstarts to lower-rated sovereigns.
"We are not replacing banks any more." Ferraro stated that "we're creating something new." This is custom financing for custom problems. "EM is a company with a wealth of experience."
Some bond investors are privately concerned that private credit, which is more flexible and less burdensome than bonded debt, could hurt their business. Some bond investors fear that borrowers who run into trouble will have bigger problems. How does private credit handle a situation where something goes wrong? Daniel Cash, an associate professor of law from the UK's Aston University said, "We don't know." He added that the "much opaquer" lending could create problems.
(source: Reuters)