Latest News
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Adani Power is the lowest bidder in India's Assam State for a 3.2 GW coal auction
Adani Power, an Indian company, has been selected as the lowest-bidder in a tender for the supply of coal power to the northeastern Assam state. The announcement was made during the post-earnings conference call. Adani Power said that the bid had been approved by the state's electricity commission and it expects to receive formal notification of the award soon. The tender is a part of an overall pipeline of more than 22 GW in thermal power bids from states such as Rajasthan, Uttar Pradesh Gujarat and West Bengal. They are seeking to secure long-term capacity due to rising demand and intermittent renewable production. Adani Power announced in August that it would invest $5 billion into two coal-powered power plants. The company plans to increase capacity from 18 GW to 42 GW by 2032. 8.5 GW of that is already locked in under long-term contracts. Adani Power has said that it will invest approximately 2 trillion rupees over a long period of time in the expansion plan, with the 12 GW expected to be commissioned before the fiscal year 2030. A company executive revealed that the power firm had pre-ordered the boilers, generators, and turbines needed for the expansion. Deliveries will be staggered over the next 38 to 75 months. Separately Adani Power reported that its power dues to Bangladesh had narrowed down to 15 days' supply. This compares to $900 million last May and almost $2 billion at the beginning of this year. Sethuraman N.R., Sonia Cheema (Reporting)
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Japan's Kansai Electric shares rise 5% after forecasting higher profit, dividend
Kansai electric power Co shares rose 5% on Friday in Tokyo, outperforming other markets, after the company's largest nuclear power utility raised its profit forecasts and promised generous returns to shareholders. Kansai, in which U.S. activist investor Elliott became a large minority shareholder last month, lifted its annual profit forecast by 22% to 360 billion yen ($2.4 billion) on Thursday, on higher electricity demand and stronger-than-expected earnings at its fuel trading unit. It also raised its full-year forecast dividend to 75 yen from 60 yen, and promised that the payout ratio would be 25-35% starting in the next fiscal. Kansai shares rose 5.2% to 0512 GMT. This was higher than the Nikkei Index, which had risen 1.9%. Elliott announced its ownership of the stock on September 10. The share price has increased by around 7%. Elliott has been a shareholder in Tokyo Gas since November 19, last year. Shares are 42% higher today. Elliott wants both companies to maximize shareholder value through the sale of non-core assets. This includes their massive real estate portfolios. Sources familiar with the situation said that Elliott had earlier asked Kansai for a 100-yen dividend increase. Tokyo Gas has raised its full-year profit estimate to 194 billion Japanese yen from 131 billion, due to the fact that it expects to earn 30.7 billion yen from property sales. Kansai sees real estate as an essential business that it wants to expand, according to a Kansai executive.
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Japan's Seven & i is looking for M&A and partnership deals to fuel growth
Yoshimichi M. Maruyama, chief financial officer of Japan's Seven & i, said that the company is working on a number of initiatives including potential M&A and partnership deals aimed at achieving substantial growth. 7-Eleven, the Japanese retailer that owns convenience stores in Japan, wants to show investors how it can grow after Canada's Couche-Tard pulled out of a $46 billion bid offer last July. Seven & i said that it would pursue a listing for its North American convenience-store subsidiary in the second half 2026 and buy back shares worth about 2 trillion yen (13 billion dollars) through fiscal year 2020. Maruyama told investors at a recent investor briefing that "we are not planning to sell a large number of shares". He said that the company would still buy back shares even if there was no offering. Seven & i shares have fallen by about a fifth in the last year. TAG EUROPEAN EXPANSION The retailer said that it also aims to make Europe a "fourth main pillar of growth", alongside Japan, North America, and Asia-Pacific. Currently, it has 365 shops in Scandinavia. Ken Wakabayashi is the CEO of 7-Eleven International. He said that Europe, outside Scandinavia, was a blank space for 7-Eleven. The retailer also plans to enter markets with high growth potential in Africa, the Middle East and Latin America.
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Morning Bid Europe- No tricks, but some treats for the markets
Ankur Banerjee gives us a look at what the future holds for European and global markets Investors are unsure about the direction of global monetary policy in the near future, but a trade truce reached between the top two economies in the world has calmed nerves. Meanwhile, a mixed bag mega-cap earnings have kept the market in check. As the week began, there were signs that tensions between China and the U.S. had cooled. The Federal Reserve also delivered an expected rate reduction, but Chairman Jerome Powell warned that this could be the last cut in 2025. This helped to firm up the dollar. It is currently on track for a gain of nearly 2% for the month. The yen was hovering at its lowest level since Feburary, just below 154 dollars, which prompted some verbal scolding from Tokyo officials. As expected, the Bank of Japan kept rates unchanged on Thursday. However, markets interpreted Governor Kazuo ueda's comments as dovish despite his hints that an interest rate increase is still on the table. The Nikkei has benefited from the fall in the yen. It is down almost 4% for October. This was a huge boost to the Nikkei. It has surpassed another record and is now on track for a 16% gain for the month. That would be its best monthly performance since Jan 1994. The "Takaichi" trade in all its glory. The South Korean stock market, Kospi, has been the best performing in the world so far this year. It is expected to rise 20% in October. This will be the largest increase since January 2001. Artificial intelligence has been the focus of much excitement in the stock markets this year. Investors are still trying to get a better picture of the earnings season, which has so far been a mixed one. Amazon shares surged after cloud revenue rose to its highest level in almost three years. This lifted Nasdaq Futures and set up a successful Halloween for tech stocks. As businesses continue to invest in AI software, the online retailer has benefited. Apple is also expected to boost the market after it announced that its holiday quarter forecasts exceeded Wall Street's expectations. The following are key developments that may influence the markets on Friday. Economic events: October inflation figures for the eurozone and France, September retail sales in Germany
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Gold falls as Fed rate caution increases dollar, but is set to rise for 3rd month.
Gold prices fell Friday as the dollar strengthened on fears of further Federal Reserve rate reductions, but bullion is still on course for its third consecutive monthly gain. As of 0459 GMT, spot gold was down 0.4%, at $4,005.54 an ounce. Bullion is up 3.9% this month. U.S. Gold Futures for December Delivery remained at $4,018.10 an ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said that the Fed Chairman's hawkish stance this week did not do gold any favors. The prospect of a December rate cut is now much less certain than previously believed, which has helped boost the dollar and made things more difficult for gold in terms of yield. Dollar index nears its highest level for three months, making gold more expensive to other currency holders. The U.S. Central Bank cut interest rates on Wednesday by a quarter percentage point, for the second consecutive time in this year. This brings the benchmark overnight rate down to a range of target of 3.75%-4.00%. After comments from Chairman Powell, traders have reduced their bets on the Fed cutting rates at its next policy gathering in December. According to CME Group's FedWatch, the markets now price in a probability of 74.8% for a 25 basis-point reduction from the Fed by December compared to a chance of 91.1% a week earlier. Donald Trump, the U.S. president, said that he and Chinese President Xi Jinping had agreed to reduce tariffs against China in exchange for Beijing crackingdown on illicit fentanyl trafficking. He also stated that the U.S. would resume its soybean purchases as well as continue exports of rare earths. Gold was discounted in India this week for the first seven-week period, and a drop in prices boosted activity in other Asian hubs. Silver spot was unchanged at $48.89 an ounce. Platinum was stable at $1,610.75, and palladium rose 1.5% to $1466.42. (Reporting and editing by Subhranshu sahu, Mrigank dhaniwala in Bengaluru)
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Two people killed by heavy rains in New York
Two people were killed in New York by heavy rains on Thursday. Mayor Eric Adams confirmed this. Storms that accompanied the heavy rains also disrupted flights, and weather officials warned of flooding in certain areas. The media has reported flooding and damages, while officials at JFK and LaGuardia airports in New York City have said that flight schedules had been disrupted. Adams, on X said that the storm had broken rainfall records for the 30th of October. He added that most of the rain predicted to fall in a few hours was actually deposited in a 10-minute period in the afternoon. The weather authorities reported that a record breaking 1,85 inches (4.7cm) of rain fell in Central Park. Meanwhile, 2,09 inches (5.31cm) fell at LaGuardia Airport while 1.99 inches (5.05cm) at Newark Liberty International Airport. The National Weather Service issued coastal flood warnings in parts of Brooklyn, Queens and the Bronx. (Reporting and editing by Clarence Fernandez in Bengaluru, Chandni Shah from Bengaluru)
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ASIA GOLD-India switches to discount after festivals, premiums elsewhere rise as prices ease
This week, gold was sold in India at a discount for the first seven weeks as demand dropped after major festivals. Premiums in other Asian hubs also increased following a drop in global rates which boosted activity. Indian dealers offer a discount The premium is now down to up to $12 an ounce, including 6% import duties and 3% sales taxes, compared to the previous week's up to $25. Ashok Jain is the owner of Mumbai's gold wholesaler Chenaji Narsinghji. He said that price volatility has caused a drop in demand. Some investors have taken advantage by selling coins at a profit. After reaching a record-high of 132 294 rupees in the first half of this month, domestic gold prices have fallen to around 121 500 rupees for 10 grams. Global spot gold prices are on course for their second consecutive weekly decline. During the eight-week period between Dhanteras (the festival of lights) and Diwali, buying gold was considered auspicious. It was also one of the busiest days for gold purchases in India. A Mumbai-based private bank dealer said that jewellers saw a dramatic drop in footfall after the festival rush. This led them to reduce the amount of stock they build for the wedding season, which begins in November. Bullion was traded in China, the world's largest consumer of gold at a premium up to $4 per ounce over global benchmark spot prices . Last week, bullion was sold at a range of discounts ranging from $20 to a premium $8 per ounce. In Singapore Gold in Hong Kong traded at par or a $3 premium. Hong Kong Gold Was sold at par with a premium of $1.60 Brian Lan, the managing director of GoldSilver Central in Singapore, said: "We have seen investors come to buy, particularly when prices fell this week." In Japan, gold The spot price was $1 higher than the sale price. Reporting by Brijesh Patel in Bengaluru, and Rajendra Jadhav from Mumbai; editing by Harikrishnan Nair
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L&T Joins Hitachi Energy to Support TenneT’s 2GW Offshore Wind Grid Scheme
India’s EPC contractor Larsen & Toubro (L&T) has been hired to deliver High Voltage Direct Current (HVDC) converters in support of the Dutch-German transmission system operator (TSO) TenneT’s 2GW offshore wind grid program in the North Sea.Collaborating with Hitachi Energy, a global technology leader in electrification, L&T has been nominated by TenneT to deliver HVDC converter stations, as part of the initiative that aims to accelerate the integration of large-scale renewable energy into the European power grid, particularly across the German and Dutch sectors of the North Sea.The collaboration brings together complementary strengths in advanced technology, engineering excellence, and end-to-end project execution.“Partnering with TenneT and Hitachi Energy for this pioneering program underscores the confidence our customers place in L&T’s growing capability to execute complex, technology-intensive infrastructure projects,” said S N Subrahmanyan, Chairman & Managing Director - L&T.To remind, TenneT recently terminated Petrofac’s cope for the 2 GW offshore wind grid project, that was supposed to be delivered in collaboration with Hitachi Energy.Petrofac’s scope included the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations.Shortly after, Petrofac filed for administration.Petrofac Goes into Administration after TenneT’s OW Contract Termination
Study Group has a sobering message for copper bulls: Andy Home
Copper has actually rallied hard this week as China's vowed stimulus package has rekindled financier enthusiasm.
Restored optimism that the world's largest copper buyer can recuperate its lost manufacturing momentum has actually moved London Metal Exchange (LME) three-month metal above the $ 10,000-per metric ton level for the first time since July.
The turn in macro belief has been mirrored by a positive shift in market optics as Shanghai copper stocks have trended greatly lower in recent weeks.
Nevertheless, copper bulls may be getting ahead of themselves.
There's no shortage of copper, according to the International Copper Study Hall (ICSG), which has simply updated its supply and need projections for this year and next.
Undoubtedly, the ICSG expects a hefty 469,000-ton global supply surplus this year followed by another 194,000-ton surplus in 2025. The scale of oversupply is more than double that projection when the Group last fulfilled in April.
SUPPLY SURPASSES
The ICSG forecasts come with analytical cautions, a lot of especially that the Group's estimation of obvious demand in China is based just on reported data such as stock levels and trade circulations.
The methodology can not record shifts in strategic or business stocks which can be extremely essential in identifying the actual market balance.
But the Group's increased surplus forecasts for 2024 and 2025 are practically entirely due to modifications on the supply side, the much more transparent part of the formula.
Anticipated copper mine production growth of 1.7% in 2024 will fall simply except last year but is a considerable upgrade from the 0.5% forecast in April.
The ICSG anticipates the growth rate to accelerate to 3.5% next year as big mines such as Kamoa-Kakula in the Congo and Oyu Tolgoi in Mongolia ramp up capacity and the brand-new Malmyzhskoye mine in Russia enters production.
Fine-tuned metal production is now anticipated to grow by 4.2%. this year, another upgrade from April, when the ICSG forecast. development of 2.8%.
TIGHT FOCUSES MARKET
The mismatch in between the rate of mine and smelter production. development is squeezing the raw materials segment of the copper. market.
Area treatment charges, levied by smelters for transforming. mined focuses into fine-tuned metal, are close to no.
The squeeze on smelter profitability has actually sustained a bull. story of copper shortage however that misses out on the point that low. treatment charges also show an aggressive growth of copper. smelting capability, particularly in China.
Chinese smelters revealed strategies to minimize run-rates in. March but the result has actually been to slow not reverse production. growth. National output of refined metal was still up by 6.2%. year-on-year in the very first eight months of 2024.
The nation's leading producers are once again calling for collective. restraint. Whether this has any tangible influence on real. production levels remains to be seen.
METAL SURPLUS
While there is real tightness in the raw materials supply. chain, there is plainly no scarcity of copper.
Global exchange stocks touched a four-year high of 599,000. heaps at the end of August. Even after a 100,000-ton decline so. far this month, they are still 284,000 loads greater than at the. start of 2024.
International surplus has actually been masked by local tightness.
Low inventory and a severe squeeze on the CME agreement in. May reflected the U.S. exchange's minimal physical shipment. alternatives instead of global deficiency.
CME stocks are now rising at a fast clip however only after a. convoluted physical arbitrage that saw Chinese smelters ship. metal to LME storage facilities since none of them have a direct CME. delivery option.
China exported 332,000 lots of refined copper in the. May-August period, which is most likely why Shanghai stocks are now. moving.
BULL HOPES REST ON NEED
Today's cost rally has actually been everything about China and the. renewed optimism surrounding its copper need outlook.
The ICSG hasn't changed its views on that considering that April,. forecasting Chinese copper usage to grow by a reasonably modest. 2.0% this year and by 1.8% in 2025.
The Group expects the rest of the world to fare much better after. a 3.0% contraction in need last year.
However worldwide need development of 2.2% this year will lag improved. production growth by a substantial margin, hence the expected. metal glut.
It's noticeable that the dive in the straight-out LME copper. rate hasn't been matched by any movement in the forward. spreads.
The LME cash-to-three-months time-spread continues to trade. in broad contango. The money discount was valued at $131 at. Thursday's close, a strong cost signal the world is not running. out of copper just yet.
Funds ignored comparable market characteristics when they rose into. the copper market in the 2nd quarter. They left again in the. third quarter as increased Chinese exports and rising inventory. eliminated any illusion of shortage.
They run the risk of repeating the exact same mistake in the. existing rally.
The viewpoints expressed here are those of the author, a. writer .
(source: Reuters)