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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)
India's robust LNG imports are Asia's standout, however greater prices may weigh: Russell
Asia's imports of melted gas (LNG) are displaying contrasting characteristics in May, with strength in generally pricesensitive buyers like India, but a softer pattern in the established economies such as Japan and South Korea.
The top-importing continent is on track to receive about 23.61 million metric lots of the super-chilled fuel this month, according to information assembled by commodity experts Kpler.
This is up slightly from April's 23.23 million loads, although every day May's arrivals are a touch weaker, while they are more powerful than the 20.75 million from May 2023.
However while the total LNG import figures are relatively steady for Asia this month, the breakdown is rather at chances with recent movements in the area price.
India's May imports are estimated at 2.46 million heaps, up from 2.03 million in April and the greatest month considering that October 2020.
The rise in arrivals comes even as the area rate for delivery to North Asia << LNG-AS > has been rallying, rising from a. near three-year low of $8.30 per million British thermal units. ( mmBtu) in the week to Feb. 23 to a five-month high of $12.30. last week.
What deserves noting is that the cargoes arriving in India. in May would have been secured in a window from later February. to early April, a time when spot rates were increasing but were. still listed below the $10 per mmBtu level.
Now that the area cost has risen decisively above that. level, it raises the possibility that Indian utilities will. downsize purchases as LNG will no longer be competitive in the. domestic market.
There may be some early signs of this with Kpler tracking. 1.13 million tons of arrivals so far in June, over half of. that originating from the United States, suggesting those cargoes would. have been protected at costs before the recent rise.
Another South Asian purchaser with robust LNG imports is. Pakistan, with Kpler tracking arrivals of 730,000 loads in May,. which along with the exact same volume in January marks the strongest. outcome since June 2022.
Qatar is the major provider to both India and Pakistan and. it's likely that the South Asian nations had the ability to secure. competitive terms for area freights offered the Gulf manufacturer is. likely to have seen lower need from Europe in current months.
LNG vessels have been preventing the Red Sea and Suez Canal. since of attacks on shipping by Yemen's Iran-aligned Houthi. group, despite the fact that up until now no LNG carrier has actually been targeted.
This suggests Qatar's LNG deliveries to Europe have actually been. declining, dropping to 870,000 tons in May, the lowest since. August and below a recent peak of 1.23 million tons in. January.
But they may be recovering with Kpler tracking exports of. 1.02 million lots of LNG to Europe so far for June, and an. ongoing healing in volumes to Europe may cut those readily available at. discount rates to India and Pakistan.
NORTH ASIA EASES
In contrast to the strength in LNG imports in South Asia,. those in North Asia were softer in May.
China, the world's top purchaser, is on track to receive 5.96. million loads in May, below 6.47 million in April and the. least expensive regular monthly overall given that February, according to Kpler.
Nevertheless, China's imports are most likely to surpass the 5.80. million lots from May in 2015, continuing the pattern so far. this year of greater LNG arrivals amid a recovering economy and. constrained hydropower output.
Japan, the world's second-biggest LNG buyer, is expected to. import 4.83 million tons in May, below 5.36 million in. April, however greater than the 4.13 million from May in 2015.
Third-ranked South Korea is on track for May imports of 3.45. million loads, down from 3.99 million in April but greater than. the 3.19 million from May last year.
The general dynamic for the big three North Asian importers. is that arrivals are trending lower, in line with usual seasonal. relocations, however imports are higher on a yearly basis, which does. supply fundamental assistance for the higher area price.
Nevertheless, the recent spike higher in area prices may start to. weaken imports in South Asia from July onwards, in addition to in. China, where an increase above $10 per mmBtu makes it hard for. LNG to compete in the domestic market.
The opinions revealed here are those of the author, a writer. .
(source: Reuters)