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Bunge and grain handler Viterra complete long-delayed mega merger
Bunge Global, a global agribusiness, announced that it had officially closed the long-delayed $34 billion mega deal with Glencore-backed Viterra. This announcement was made two years ago. The merger creates a global crop trading and processing giant that is poised to rival agribusiness giants Archer-Daniels-Midland and Cargill, at a time when slumping grain prices, weak crop-processing margins and geopolitical tensions have eroded profitability in the sector. Bunge closed Wednesday's trading 1.4% higher. Bunge, based in Missouri, has experienced a dramatic turn-around since the deal was announced. In April 2019, Greg Heckman took over as CEO of the company after Soren Schroder was forced to resign by investors. The Chinese market regulator approved the merger on conditional terms last month, clearing the final hurdle. Bunge announced on Wednesday that Heckman would remain as CEO of the combined business, while Bunge's Chief Financial Officer John Neppl would also retain his position. Viterra CEO David Mattiske, and Bunge co-president Julio Garros will serve as co-chief operational officers. Analysts say that the merger with Netherlands' Viterra will enhance Bunge’s grain exporting business and its oilseed processing business in the United States. Bunge has a smaller US presence than rivals ADM or Cargill. Bunge will also be able to expand its export capacity, as well as their grain storage and handling capabilities in Canada and Australia. (Reporting and editing by Jamie Freed in Chicago, with Karl Plume reporting from Chicago)
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Former Jan. 6 defendant sentenced to life for plotting to kill FBI agents
According to court records and the U.S. Justice Department, a man who participated in the attack on the U.S. Capitol on Jan. 6, 2021 was sentenced on Wednesday to life imprisonment for conspiring to murder the FBI agents who were investigating him. Court records indicate that Edward Kelley, a former federal employee, was convicted of conspiring to murder federal workers, solicitation of a crime violent and influencing an official of the federal government by threats in November. The prosecution claimed that Kelley and another man planned to attack an FBI field office located in Knoxville, Tennessee using car bombs, incendiary devices, and drones. According to a Justice Department release, he was recorded discussing his plans to "take their office out" if arrested. The prosecution alleged that Kelley had compiled a "kill-list" of federal law enforcers based in the region and discussed assassinating FBI agents in their homes or in public places. Austin Carter, his co-defendant in the plot, has pleaded guilty and will be sentenced by August. Kelley was found guilty of several charges in a separate trial, including assaulting police officers, for his involvement in the storming of the Capitol. This case was dismissed in January, before Kelley was sentenced. It was part of the sweeping clemency granted by President Donald Trump to all 1,600 criminally charged individuals in connection with the attack. The attack on Capitol Hill was a failed effort by Trump supporters in order to prevent congressional certification that Trump had lost the 2020 presidential elections to Democrat Joe Biden. Kelley said that Trump's pardon of the Tennessee case should be extended because it related to his behavior at the Capitol. The Justice Department during Trump's second term opposed this effort, and a later judge rejected it.
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Greek firefighters fight wildfires on the island of Crete
Greek firefighters fought a fire that raged in the popular vacation destination Crete on Wednesday, burning forestland, threatening homes, and forcing the evacuation of tourists and residents from at least four settlements. The Greek fire brigade said that at least 155 firefighters were battling the flames along the southeast coast of the largest island of Greece, in the municipality Ierapetra. They were assisted by 38 engines, water trucks and other vehicles. The fire, which started in the afternoon was exacerbated by strong winds, which hampered efforts to fight it and reignited its fronts. The fire brigade reported that more reinforcements would be arriving by Athens via boat and plane. The fire is still burning and is very difficult to control, a fire brigade officer said under condition of anonymity. He attributed the difficulties of the operation the strong winds as well as the terrain. Local TV stations reported some houses had been damaged. No injuries have been reported so far. The authorities had ordered the evacuation earlier of Achlia, and three other settlements within the area. Local officials reported that 3,000 people who evacuated villages earlier were moved to temporary shelters. Greece, located at the southernmost tip of Europe, is frequently hit by wildfires, especially during its hot, dry summers. However, authorities blame a rapidly changing climate for the more destructive fires that have occurred in recent years. On Wednesday night, Greek firefighters also tried to control a wildfire that was raging uncontrollably in the northern Chalkidiki region and on the island Kythira. (Reporting and editing by Jamie Freed; Renee Maltezou)
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Stocks reach record highs, gilt yields soar on Finance Minister uncertainty
The global stock market rose to record levels on Wednesday, after U.S. labor data revealed an unexpectedly low reading. Meanwhile, British government bond yields soared amid speculation over the future of Britain's finance minister. ADP's National Employment Report shows that private payrolls fell by 33,000 last month, after a downwardly-revised 29,000 job increase in May. This is well below the 95,000 jobs expected by economists surveyed by. The data is released ahead of the government's payroll report on Thursday, but there is very little correlation between them. On Thursday, we will also see the weekly initial claims for unemployment. According to CME's FedWatch Tool, market expectations of a rate cut in July by the U.S. Federal Reserve increased to 27% following the release of the data. This is up from 20,7% the previous session. Jim Awad is the senior managing director of Clearstead Advisors LLC, New York. "An employment softening that induces the Fed to lower interest rates would be positive. But if it softens excessively, then this would be negative for growth and profit," he said. The S&P 500, Nasdaq, and Dow closed at record levels on Wall Street. This was boosted in part by a rebound in Tesla stock after it dropped 5.3% Tuesday. Tesla shares closed at 4.97% higher after the electric carmaker announced its quarterly deliveries. The Dow Jones Industrial Average dropped 10.52 points or 0.02% to 44,484.42, while the S&P 500 rose by 29.41 points or 0.47% to 6,227.42, and the Nasdaq Composite gained 190.24 or 0.94% to 20,393.13. The MSCI index of global stocks rose 3.84 points or 0.42% to 921.24, after reaching an intraday high of 922.27. Meanwhile, the pan-European STOXX 600 closed with a 0.18% gain, boosted by renewable energy stocks and luxury stocks. The yields on longer-dated U.S. Treasury notes rose. The benchmark U.S. 10 year note was up 3.4 basis point at 4.283%. British government bond rates surged at one point, jumping almost 23 basis points. This was the highest since October 2022. The jump came after Finance Minister Rachel Reeves, who appeared visibly upset in parliament a day after announcing a sharply reduced plan to cut benefits, spoke out. The yield of the 10-year government bonds, or gilts, last increased 16.8 basis points to 4.621%. The pound fell 0.83%, to $1.3631. It had dropped as high as 1.35%. This was the biggest percentage decline since June 17th. The dollar index (which measures the greenback versus a basket currency) rose 0.13% to 96.7 and was on course to end a nine-day decline streak. The euro fell 0.03% to $1.1801. Donald Trump announced on Wednesday that the U.S. will impose a tariff of 20% on Vietnam. This is lower than what was initially announced, as investors wait for progress in other deals. He said previously that he would not consider extending the deadline to negotiate with countries, despite negotiations with Japan failing to progress, but he still expected a deal to be reached with India. The Vietnam-U.S. deal announced today is a positive step in reducing uncertainty around trade. Not only does it have a direct impact on the market, but may also be viewed as indicating that more deals will follow over the next week. Investors also viewed Trump's massive spending and tax bill, which was expected to add $3.3 billion to the national debt and cut taxes. Republicans in the House of Representatives set up a vote that would reveal whether they have enough support to pass the bill out of Congress. U.S. crude rose 3.06%, to settle at $67.35 a barrel. Brent settled at $71.11 per barrel. This was up 2.98% for the day after Iran suspended its cooperation with the U.N. Nuclear Watchdog.
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Vale reduces forecast for iron ore aggregates production amid market weakness
Vale, a Brazilian miner, has lowered its projections for the production of iron ore pellets in 2025 due to concerns about oversupply and decreased demand for high quality products. In a filing with the Securities and Exchange Commission, the company said that its decision was based on "current market conditions." Analysts say the move is not surprising, given that pellet prices are under pressure. Executives at the miner also emphasize the fact that their portfolio is competitive and flexible, allowing them to adapt to changing market dynamics. Vale's strategy to reduce carbon emissions is based on high-quality iron ore agglomerates. These include both pellets as well as briquettes. "Vale's choice is in line with the current market conditions." Artur Bontempo, Wood Mackenzie's analyst, said that producers are becoming more cautious and some have shifted to fines sales. He said that the steel industry's tightened margins has led mills to prefer cheaper ore of lower quality over pellets with high costs. Samarco's also impacted the market conditions in this year. Growing output . As production ramps up, the joint venture between Vale & BHP will add 8,000,000 tons of pellets & pellet feeds to the market. Vale's revised 2025 outlook was a result of its decision to perform preventive maintenance on the Sao Luis Pelletizing Plant in the third quarter. Production was suspended during this period. RBC Europe analysts said that at mid-point Vale's revised guidance would reduce seaborne supply of pellets by 7 million tonnes, or 6% of the market. They added that the move would benefit Rio Tinto, as it could help to improve premiums in the future. Vale's shares traded in Sao Paulo were up by 4% on Tuesday, boosted by Iron ore prices rise . (Reporting from Gabriel Araujo, Sao Paulo; and Marta Nogueira, Rio de Janeiro. Editing by Andrew Heavens and Natalia Siniawski. Marguerita Chy).
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Stocks reach record highs, and gilt yields soar on uncertainty about the Finance Minister
Global stocks rose on Wednesday, after U.S. labor data revealed a surprising soft reading. Meanwhile, British government bond yields soared amid growing speculation over the future of Britain's finance Minister. ADP's National Employment Report shows that private payrolls fell by 33,000 last month, after a downwardly-revised 29,000 job increase in May. This is well below the 95,000 jobs expected by economists surveyed by. The data is released ahead of the government's payroll report on Thursday, but there is very little correlation between them. On Thursday, we will also see the weekly initial claims for unemployment. The market's expectations of a rate cut in July by the U.S. Federal Reserve increased to 27% following the release, from just under 20% the previous session, according CME's FedWatch Tool. "You throw it into the 'doesn’t look good' section and then look forward to tomorrow, which will arguably be much more significant," said Jim Baird. Chief investment officer at Plante Moran Financial Advisors, Southfield, Michigan. The S&P 500, Nasdaq, and Dow Jones all rose on Wall Street. This was partly due to a rebound in Tesla stock after it dropped by 5.3% Tuesday. Tesla shares rose 4.7% last after the electric carmaker announced its quarterly deliveries. The Dow Jones Industrial Average dropped 56.43 points or 0.13% to 44,438.51, while the S&P 500 climbed 19.17 points or 0.31% to 6,217.23; and the Nasdaq Composite jumped 163.36 points or 0.81% to 20,365.78. The MSCI index of global stocks rose 2.62 points or 0.29% to 920.02, after reaching an intraday high of 920.24. Meanwhile, the pan-European STOXX 600 closed with a 0.18% gain, boosted by renewable energy stocks and luxury stocks. The yields on longer-dated U.S. Treasury notes rose. The benchmark 10-year U.S. note was up 4.9 basis point at 4.298%. British government bond rates surged at one point, jumping almost 23 basis points. This was the highest since October 2022. The jump came after Finance Minister Rachel Reeves, who appeared visibly upset in parliament a day after the Government dramatically scaled back its plans to reduce benefits, spoke out. The yield of the 10-year Government Bond, or gilt was up 16.8 basis point at 4.621%. The pound fell 0.84%, to $1.3628. It had dropped as high as 1.35%. This was the biggest percentage decline since June 17. The dollar index (which measures the greenback versus a basket) rose by 0.19% at 96.82, and was on course to end a nine-day decline streak. On Wednesday, President Donald Trump announced on social media that the U.S. had reached a deal with Vietnam. He said previously that he would not consider extending the deadline to negotiate trade agreements, even though negotiations with Japan, his top trading partner, had failed to progress. However, he still expected to reach a deal with India. Baird said that the announcement of a Vietnam-U.S. Trade Deal "clearly alleviates a piece of the puzzle of uncertainty around trade. Not only because of its direct impact but also as an indication that more is to come in the next week or two, which will all help to relieve what has been causing uncertainty over the past three months." Investors also watched for progress on Trump's massive spending and tax bill, which is expected add $3.3 trillion to national debt and cut taxes. Republicans in the House of Representatives have scheduled a procedural voting on the bill, which could reveal if the party has the support it needs to pass the bill out of Congress. U.S. crude rose 3.09% to $67.38 a barrel while Brent soared to $69.10 a barrel, an increase of 2.98% in one day. This was due to Iran suspending its cooperation with the U.N. Nuclear Watchdog.
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Development bank chiefs insist that climate change and women's empowerment must be given priority.
The heads of the two largest MDBs from Asia and Europe said that they need to focus more on climate action, and empowering women. They are being urged to be bolder and more inclusive. Nadia Calvino and Jin Liqung are the presidents of the European Investment Bank (EIB) and the Asian Infrastructure Investment Bank (AIIB), respectively. They spoke at the United Nations Development Financing Summit, which takes place every decade in Seville. The event has been overshadowed both by criticisms that it showed a lacklustre ambition, and by the United States' absence. They were the largest international donor of aid before Donald Trump took office in the United States at the beginning of this year. Trump also pulled the United States out of U.N. efforts against climate change, and tried to revert policy on inclusivity. This has made many companies and organizations around the world hesitant to champion diversity and sustainability. Jin, AIIB's Jin, welcomed the civil society's call for MDBs do more about climate change as "positive force for greater impact and innovation". He said that the AIIB supports "climate resilient" infrastructures under a broad definition, which includes digital, education, health and health infrastructure. Calvino, of the EIB, said that high-level climate pledges must be translated into concrete investments and projects. He cited as an example a project for climate-related clauses in debt agreements which allows countries vulnerable to disasters to suspend repayments. In the pre-summit agreement, U.N. member states pledged to triple multilateral loan capacity. The U.S. claimed that this crossed one of their red lines, as it interfered in the MDBs independence. Jin suggested that rating agencies use different standards for MDBs than those used by commercial banks or private companies. Calvino said that the current system was working well. The EIB's rating of AAA enabled it to make higher-risk investments, and leverage EU guarantee. The U.S. objected also to the use the word gender in this document, saying that it did not support the "sex-based preference". Calvino, EIB’s first female president, stated that empowering women is "both the right choice and economically smart... no brainer". Jin said that the AIIB was putting a lot of emphasis on female empowerment. He cited a project in Ivory Coast which connected female farmers in isolated villages with main markets for selling products like cashews or coffee beans. (Reporting and editing by Aislinn Laing, Barbara Lewis, and David Latona)
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Oil futures and options traded at record levels during Q2 as investors navigated volatility
The total oil futures lots and options traded on the Intercontinental Exchange reached record highs during the second quarter as U.S. president Donald Trump waged a global trade war, and the geopolitical conflict in the Middle East intensified. Why it's important LSEG data show that there was significant volatility in the second half of the year. Brent crude futures dropped to a low of $60.23 a bar on May 5, and then surged to $78.85 a barrel on June 19. This is the highest level since January. CONTEXT Trump announced sweeping import duties on April 2. China's retaliatory actions stoked fears of a recession and led to a selloff on April 4, 2019. Brent prices fell to their lowest level since February 2021 on May 5, after producer group OPEC+ increased output. Brent reached a six-month peak on June 19, when investors were on edge due to the conflict between Israel and Iran. By the Numbers Investors traded 219,323,730 lots of oil futures, options and forwards from April to June, a record compared to the 181,520,640 lot previous record set in the first quarter of 2025. This new record includes 99,541,065 Brent futures lots and 20,333728 Brent options. The traders also traded 30,056,174 Lots of West Texas Intermediate futures and Options (Cushing), and 3,211,194 Lots of Midland WTI Futures (HOU). KEY QUOTE The analyst at UBS, Giovanni Staunovo said, "I believe hedging activities played a part. When oil prices dropped to $60 per barrel in Brent oil, oil consumers like airlines began to hedge. And when oil prices spiked mid-June oil producing companies decided that they would hedge." Staunovo continued, "At the time, investors were looking to either hold positions that are inflation-conscious (long) or growth-conscious (short) in oil due to the tariffs." (Reporting and editing by Stephanie Kelly, David Gregorio and Georgina McCartney from Houston)
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)