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Automakers join forces with EV manufacturers to avoid EU emission fines
Automakers formed alliances with electric vehicle companies to avoid heavy fines from the European Union for carbon emissions. Several legacy automakers could face fines, as the transition from ICEs to EVs has been slower than expected. As of Tuesday, here are the details on the regulations and alliances that will be in place by 2025. Initial EU fines were based on carbon emissions levels in 2025. The European Commission, under pressure from the automakers, allowed compliance in March based on average emissions between 2025 and 2027. All alliance agreements currently in existence, as identified by their pool managers, will expire this year. It is expected that they will be renewed in the coming years. NISSAN Nissan, the Japanese EV manufacturer, teamed up with BYD in October. KG MOBILITY A second pool was created at the end September by South Korea’s KG Mobility, and Chinese EV manufacturer Xpeng. In January, Tesla, Stellantis, Toyota, Ford and Chinese EV manufacturer Leapmotor formed a pool. Mazda, Subaru, Mazda, and Subaru also joined. In March, Japan's Honda & Suzuki joined the pool. MERCEDES In January, this pool included Mercedes, Volvo Car, Polestar, Smart Automobile, and EV manufacturer Polestar. Volvo Car and Polestar both have the backing of China's Geely. Geely Chairman Li Shufu owns a 9.69% share in Mercedes. He is the second largest shareholder of the group after China's BAIC Group. Smart Automobile was formed as a joint venture by Mercedes and Geely. Forecasts of EV According to AlixPartners consultant, EVs accounted for 12% of the total European light vehicles sold last year and will reach 15% in 2019. AlixPartners predicts that their market share will increase to 24% by 2027, and 40% at the end of this decade.
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Fluor gains after Starboard purchases stake, NuScale urges review
Two sources said that shares of the construction company Fluor Corp rose by 2.7% after activist investor Starboard Value purchased a stake of nearly 5%, in order to unlock value for its 40% ownership in NuScale Power. Jeff Smith, the founder of Starboard, is expected to present the investment thesis for the firm at the 13D Monitor Active Passive Investment Summit, which will be held in New York, later that day. He will also talk about plans for TripAdvisor - another recent target. NuScale Power shares fell 7% at the opening of trading. Citigroup analysts said that Starboard's investment supports their view that Fluor shares still have room for growth. They cited the value of the NuScale stake and the potential improvement to the core operations of the company. Fluor could eventually sell its remaining 111,000,000 shares of NuScale, which represents over 60% of the company's market capitalization. Fluor's shares are down by 3% this year. NuScale's shares are up over 145% this year due to the growing demand for clean energy products that power AI-driven data centres and defense infrastructure. Starboard and Fluor both did not respond immediately when contacted. Fluor's core businesses, including infrastructure and energy projects have been under pressure. The company posted a 6% decline in revenue for the second quarter, falling short of analyst expectations. Starboard claims the segment is undervalued in comparison to Fluor NuScale's stake, and wants strategic options. Fluor, which is in a good position to benefit from the infrastructure policies of President Donald Trump that could boost investments in energy and construction, has launched an activist campaign. (Reporting and editing by Krishna Chandra Eluri; Rashika Singh)
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IIR: Dangote refinery gasoline unit is operating at 60% capacity
In an email, IIR, a industry monitor in Nigeria, said that the Dangote oil refining company restarted its 204,000 barrels per day gasoline production on October 19, as planned. The run rate was 60%. IIR said that the unit will be expected to maintain this rate until a planned shutdown in December 2025 or January 2026 has been completed. A spokesperson from Dangote didn't immediately respond to a comment request. The unit's outage, which began late in August, improved export economics to West Africa, covering the shortfall. This helped boost European gasoline refinery margins. According to calculations, the news of the planned restart last week pushed the margins down to $16.50 per barrel on Monday from $20 per barrel on October 16 Kpler data indicates that gasoline exports to West Africa from Europe are on track to hit about 300,000 barrels per day in October. This is their highest level since May. Aliko Dangote built the 650,000 bpd refinery in Africa. It has been undergoing maintenance for several years, resulting in a reduced demand for crude oil. Reporting by Ahmad Ghaddar, Editing by Kirsten Doovan and Ros Russel
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Canada's inflation rate increases in September due to a smaller drop in gas prices
Data released on Tuesday showed that Canada's inflation rate rose to 2.4% annually in September. This was mainly due to a lower decline in gasoline prices compared to the previous month, and an increase in food prices. The Bank of Canada will meet later this month to make its next monetary decision. Economists will closely monitor the report to determine when it might be time for another rate cut. Money markets have put a probability of 86% on a rate cut of 25 basis points on October 29. This would reduce the benchmark rate to 2.25%. The Canadian dollar rose 0.12%, to 1.4018 US cents. The analysts polled predicted that the annual inflation rate would increase to 2.3% from 1.9% in august. StatsCan reported that the CPI increased 0.1% month-over-month in September after a decline of 0.1% in August. The Canadian government removed the carbon tax on gasoline that was keeping prices high all last year. The decline in August was greater than September, mainly because of a large drop in gasoline prices that occurred in September 2024. After a 2.4% increase in August, the CPI excluding gasoline rose by 2.6% in September. To gauge the price trend, economists have used the BoC's preferred measures of inflation that exclude the effect of tax measures. The CPI-median or the middle component of the CPI Basket, one of the BoC's preferred core measures of inflation that excludes the impact of tax measures, was 3.2% in September. This is unchanged from last month's upwardly revised annual number. StatsCan reported that the CPI-trim measure, which excludes extreme price changes, increased to 3.1% from 3.0% in September. Last month, the CPI basket had a share above 3% and below 1%. After a 3.4% rise in August, food prices rose 3.8% last month. This increase was due to an increase of 4% in food purchases from stores compared to a 3.5% rise in August. Statisticians said that the increase in grocery prices in September was the biggest year-over-year gain since April 2024. Rents contributed to the CPI's increase year-over-year, with a jump of 4.8% in September. This move brought shelter inflation, which is the largest component of the CPI, down to 2.6%. Promit Mukherjee, Dale Smith, and Paul Simao edited the report.
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M23 rebels have looted $70 million in gold from Congo mines since May, according to company reports
The company said that rebels who occupy Twangiza Mining’s gold concession located in eastern Democratic Republic of Congo have stolen at least 500 kg of bullion from May. It also accused some of its employees of assisting the theft. The looted gold, at current prices is worth approximately $70 million. The mine is in South Kivu, where M23 rebels, backed by Rwandans, staged an offensive lightning fast this year which allowed them to capture more territory than they ever had before. The mine was seized in May. Twangiza Mining, in response to questions about losses after M23 took over the mine, said that they had transported a first batch of 50 kg gold in a short period of time with the help of a few employees. The company stated that "since the occupation they have secretly obtained and transported at least 500kg gold through underground channels." M23 didn't immediately respond to our request for a comment. Twangiza Mining is a Congo-based company that describes itself as Chinese. It has lost more than 100 kg of gold per month since it was taken over, along with $5 million in equipment and materials. It said that the company was preparing to submit a formal complaint before international arbitrators and Congolese officials, and had declared force majeure. The rebels were accused of expulsion, demolishment of churches and the use Rwandan technicians for geological data extraction to resume and expand mines. There are still more than 150 workers on the site. The company stated that it was unable to contact them. The Rwandan government didn't immediately respond to an inquiry for comment. On October 15, a drone strike destroyed the power generation infrastructure of the mine. The drone strike's perpetrator is still unknown. The fighting in eastern Congo this year has resulted in the deaths of thousands and displacement of hundreds of thousands. According to U.N. inspectors, armed groups have taken over several mining sites located in the mineral rich eastern Congo. According to a U.N. Security Council report last year, M23 rebels earn around $300,000.00 per month from mineral taxes in Rubaya's coltan rich region. In June, U.S. president Donald Trump mediated a peace agreement between Congo and Rwanda as part of a plan to stabilize eastern Congo and attract Western mining investment. Rwanda has denied supporting M23 rebels despite claims from U.N. officials and regional governments. Qatar has hosted direct talks between Congo's M23 and Qatar. As part of this process, the two sides missed a deadline in August for a deal on peace. However, they did agree to a monitoring system for a possible ceasefire. Maxwell Akalaare Adombila, Sonia Rolley and Robbie Corey Boulet edited the article.
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Uganda to hold general elections on January 15,
The Ugandan electoral commission announced on Tuesday that the general elections will be held in the country on January 15. At the election, the octogenarian president Yoweri Museeveni will try to extend his reign to almost half a century. Museveni, Africa's fourth-longest-serving leader, has had his government change the constitution twice in order to remove term and age limits. This allows him to stay in office ever since 1986. As in the 2021 election, Museveni's main rival is expected to be 43-year-old pop star-turned-politician Bobi Wine, who has parlayed his singing stardom to amass a large support base among young voters. Wine, who is Robert Kyagulanyi in real life, claims that Museveni was able to win the last elections through ballot stuffing, voter intimidation, bribery, and other methods of rigging. Officials of the ruling party dismiss this accusation, claiming that Museveni was elected with genuine support. Six candidates from smaller parties will be running in the next presidential race. Voters will also elect parliament members. Former rebel Museveni is credited for stabilizing Uganda, promoting growth and fighting HIV/AIDS. Critics have condemned the suppression of political opposition, abuses of human rights and scandals involving corruption by his government. Officials deny allegations of human rights abuses, and claim that those in custody are subjected to due process. The government of Museveni hopes that the beginning of crude oil exports from fields operated France's TotalEnergies, and China's CNOOC next year will propel economic growth to double digits. Uganda is an important geopolitical actor in East Africa. It has troops in Somalia and South Sudan as well as in the Democratic Republic of Congo, Equatorial Guinea, and in the Democratic Republic of Congo on missions of anti-insurgency, peacekeeping or military co-operation. (Reporting by Elias Biryabarema; Editing by Alexander Winning, Alexandra Hudson)
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Fluor gains after Starboard purchases stake, NuScale urges review
Sources familiar with the situation said that shares of construction company Fluor Corp rose by 6% on Tuesday in premarket trading after activist investor Starboard Value purchased a stake of nearly 5%, in order to unlock value in its 40% ownership in NuScale power. Jeff Smith, the founder of Starboard, is expected to present the investment thesis for the firm at the 13D Monitor Active Passive Investment Summit, which will be held in New York, later that day. He will also talk about plans for TripAdvisor - another recent target. NuScale Power shares fell 4.7% in value before the bell. Citigroup analysts said that Starboard's investment supports their view that Fluor shares still have room for growth. They cited the value of the NuScale stake and the potential improvement to the core operations of the company. Fluor could eventually sell its remaining 111,000,000 shares of NuScale, which represents over 60% of the company's market capitalization. Fluor's shares are down by 3% this year. NuScale's shares are up over 145% this year due to the growing demand for clean energy products that power AI-driven data centres and defense infrastructure. Starboard and Fluor both did not respond immediately when contacted. Fluor's core businesses, including infrastructure and energy projects have been under pressure. The company posted a 6% decline in revenue for the second quarter, falling short of analyst expectations. Starboard claims the segment is undervalued in comparison to Fluor NuScale's stake, and wants strategic options. Fluor, which is in a good position to benefit from the infrastructure policies of President Donald Trump that could boost investments in energy and construction, has launched an activist campaign.
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Sources say that France's EDF has appointed advisers to examine options for Italian Edison.
Two sources with knowledge of the matter said that EDF, a French utility, has chosen Intesa Sanpaolo IMI as its financial advisors to examine strategic options for Edison in Italy. State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors. Sources have said that EDF was considering a public offering, bringing in a financial sponsor, or selling a stake to Edison. One person stated that EDF would retain a majority shareholding in Edison in any deal. Sources have estimated that Edison's value could range between 8 billion and 12 billion euros. EDF, Lazard Intesa and Edison have declined to comment. Il Sole 24 Ore, a daily Italian newspaper, reported that Intesa was in the lead to become EDF’s advisor. Edison CEO Nicola Monti stated in September that the Italian group is ready to list at the Milan bourse if its parent company decides to move forward with this plan. Edison has already established the corporate structure and procedures required for its stock to be traded publicly. EDF retained Edison's shares in Milan when it took Edison private and acquired its full control in 2012. This is a special type of share that offers a higher dividend rate than ordinary shares, but does not grant holders the right to vote at shareholder meetings. Edison reported revenues of 15,4 billion euros, and a core income of 1.7 billion euro last year.
Family feud over Korea's zinc giant threatens to impact supply chain
Korea Zinc, the world's greatest improved zinc manufacturer, has actually been involved in a. bitter fight among founding families over control of its $12. billion zinc empire.
The winner of the battle stands to manage South Korea's. substantial player in a U.S.-led effort to lower heavy reliance. on China for essential metals and products utilized in industries ranging. from building to cars, experts said.
Personal equity firm MBK Partners and Young Poong. on Friday raised their offer price for shares in Korea Zinc to. match a counteroffer from competing relative and Bain Capital.
WHO ARE THE MAJOR GAMERS?
Young Poong was founded in 1949 as a trading business by two. co-founders surnamed Chang and Choi born in what is now North. Korea. The business expanded into smelting metals in the 1970s,. and after that in 1974 the 2 families formed Korea Zinc, with the. Choi family handling the operation.
Scions of the 2 households are now signing up with forces with. personal equity companies in a takeover fight. The co-founding Chang. family, which leads zinc manufacturer peer Young Poong, joined. forces with personal equity MBK Partners for a $1.7 billion. tender offer in September.
The Choi family partnered with Bain Capital to ward off that. takeover effort.
Korea Zinc's biggest shareholder is presently Young Poong,. which runs a 400,000 metric ton-per-year zinc smelter at Seokpo,. South Korea, which is the world's sixth biggest.
Young Poong, likewise understood for its bookstore chains in Korea,. produces a majority of its profits from sales of parts for. smart devices and other electronic gadgets.
MBK Partners, a North Asia-focused personal equity company with. financial investments in South Korea, Japan and China, has over $30. billion in capital under management, according to its website.
Established by Michael ByungJu Kim in 2005, MBK has been a. regular player in South Korean deals, including the purchase of. regional hypermarket chain Homeplus from Tesco for $6.1. billion in 2015.
MBK Partners said in September it plans to ultimately end up being. the largest shareholder in Korea Zinc, partially by exercising a. call alternative to purchase Korea Zinc shares owned by Young Poong and. associated entities.
WHAT ARE THE STAKES?
Korea Zinc and top shareholder Young Poong supply 85% or. more of South Korea's zinc, mainly to safeguard steel utilized in. cars and trucks, construction and other items.
Although Korea Zinc has the greatest market share amongst. business in refined zinc, China dominates the worldwide production. of fine-tuned zinc, considered an important metal by Washington.
Korea Zinc has in recent years brought in collaborations from. LG Chem and Hyundai Motor to produce. battery materials in Korea, in reaction to Washington's call to. reduce dependence on China for batteries and battery products.
Korea Zinc likewise provides materials for semiconductor companies. such as sulphuric acid for Samsung Electronics.
WHAT STIMULATED THE TAKEOVER BATTLE?
After years of linked business operations, in the. late 2010s Young Poong raised its ownership in Korea Zinc as. part of a governance structure reorganisation to fix. circular shareholding, expanding the stake controlled by the. Chang family versus the Choi household.
When a third-generation member of the Choi family, Yun B. Choi, started to lead Korea Zinc's management in 2019, he started to. expand the company's service.
Choi, a Columbia law school graduate, expanded financial investments. beyond the core zinc service to battery materials, hydrogen and. renewable energy, welcoming criticism from Young Poong.
The conflict in between visions for the business increased to the. surface when Korea Zinc stated this year it would no longer handle. the treatment of sulphuric acid created at Young Poong's. Seokpo smelter.
Korea Zinc has said the pricey transport and storage of the. harmful by-product from the Seokpo smelter must be Young. Poong's responsibility handled with Young Poong's investment. Young Poong stated Korea Zinc had broken an enduring. agreement and threatened Seokpo smelter's practicality.
CONTRASTING FORTUNES
Korea Zinc is a crucial investment for loss-making Young Poong.
Although both Korea Zinc and Young Poong are both in the. smelting company in South Korea, coping with higher electricity. costs and harder policies, Korea Zinc has reported profits. for the previous straight 98 quarters.
Young Poong's CEO has also been apprehended and charged this. year over safety-related deaths at the business's Seokpo smelter,. and is engaged in a suit to nullify a South Korean. authorities' ecological pollution ruling that might require the. Seokpo smelter to close for two months.
(source: Reuters)