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Sources say that Chinalco has joined the bidding for Brazil's CBA.
According to two sources familiar with the situation, negotiations with Emirates Global Aluminium are slowing down, but that does not mean that the potential sale of Brazilian aluminium manufacturer Companhia Brazileira de 'Aluminio has stopped. One source said that the process is still competitive. One person and another source involved in the negotiations said that China's Aluminum Corporation?of China, and a potential third bidder were actively pursuing the deal. One?of the sources stated that an announcement could be made within days or even weeks. Negotiations could still fail, however. CBA's shares were up 5% in Brazil at mid-morning trading on Monday. CBA and Grupo Votorantim which controls CBA declined to comment. EGA and Chinalco didn't immediately respond to requests for comments. CBA produces low-carbon aluminum in seven Brazilian states, where?Brazilian conglomerate Votorantim SA owns 69% of the company. The?October report stated that EGA was in talks to possibly buy the Brazilian company. EGA is jointly owned by Abu 'Dhabi sovereign fund Mubadala, and the Dubai sovereign fund Investment Corporation of Dubai. CBA's shares have risen by 84% in the past year, according to LSEG. Luciana Magialhaes, Paula Laier and Chizu Nomiyama in Sao Paulo contributed to the reportage.
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McGeever: ROI-America Inc.'s productivity boom could be global.
The U.S. economic system is experiencing a productivity boom, and it may even be spreading globally. Artificial intelligence (AI) is expected to accelerate these trends. However, there are some early signs that AI's benefits may be spreading. The Purchasing Managers' Index (PMI), released on Friday, showed that British businesses have started the year off on a high note. Demand at home and abroad has been robust. This is the fastest growth in output since April 2024. The pace of job loss has also increased since December. Since late 2024, the sub-indices of employment in Britain's PMI have been below that threshold which separates expansion from contraction. The UK appears to be increasing the amount of goods produced per hour of work - the textbook definition for productivity growth. The latest German PMI data also revealed a similar picture, albeit a little grainier. The output in January was at its highest level in three months. Employment fell at the fastest rate since November 2009 - excluding pandemic declines. It's true that PMI data doesn't always match up with official statistics on growth and employment, but one shouldn't put too much weight in any single month's results. The burgeoning trend should not be ignored. JP Morgan economist Allan Monks points out that the UK's ratio of output per employee - a crude proxy for productivity – is at its highest level since August 2013 - even after excluding distortions caused by pandemics. Bruna Skarica, a Morgan Stanley analyst, agrees, writing that "a degree of skepticism is probably warranted around the PMIs, but the dynamics of resilient growth, and sluggish labor demand, merits more consideration." LONG-TERM PATIENTISM What's ?driving this? It's probably the AI and technology frenzy. Businesses are betting that AI can make them more innovative, productive and cost effective. However, it remains to be determined whether the AI revolution can help the rest of?the world to narrow the gap in productivity with the United States. This seems to be a better option in China. China's economy has already seen significant productivity increases in some sectors, such as autos, steel and high-value goods. Goldman Sachs economists estimate that computing capacity in China will double over the next five year period. It's another story in Europe. The continent is often viewed as a weak point in the global value-chain, with low productivity and growth potential. Economists attribute this to a lack of innovation in technology, excessive regulation, high public debt, and low private investments. Goldman Sachs economists estimate AI will only add a "meaningful" 0.2 percentage points per year to European growth over the next few decades. The?U.S. The U.S. is expecting to see a productivity boost of 0.4 pp per year. PRODUCTIVITY A 'GET OUT OF JAIL FREE' CARD? Federal Reserve Chair Jerome Powell signaled in December that productivity growth can help the central banks reduce inflation, while maintaining a policy of "dovishness" to support the economy and labor market. Productivity gains that are faster tend to be deinflationary. Central banks could avoid making drastic interest rate changes if productivity increases accelerate and spread globally. The flip side is that it could be more difficult to maintain full employment if AI advancements allow economies flourish with far fewer workers. Powell could have more to share on this topic when the Fed meets next week. All of this, of course, should be taken as a pinch of salt. Even at the best times, productivity figures can be a bit shaky and difficult to measure accurately. As with the flawed data that was revealed in Britain's Office for National Statistics last year, productivity estimates are also affected by this. Investors are betting that AI will lead to a productivity boom. This may be revealed by the earnings of U.S. megacap tech companies including Meta, Microsoft and Apple. There are still many unknowns, but there is some evidence that the AI spending could lead to a global economic boom. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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China's Zijin Gold will buy Canadian miner Allied Gold from Canada for $4 billion
The companies announced that Zijin Gold would buy Canada's Allied Gold at a price of?about C$5.5billion ($4.02billion) in cash. This is as the Chinese miner accelerated its global expansion amid record-high yellow metal prices. Gold prices have risen, boosting margins and cash flow for miners. This has led to consolidation as large producers look to boost production through acquisitions instead of developing new mines. Canada and China have also agreed to a deal to improve their relationship after reaching a preliminary agreement this month to reduce tariffs on canola and electric vehicles, while vowing to lower trade barriers and enhance strategic cooperation. Zijin is paying C$44 for each share. This represents a premium to the last closing price of Allied's stock by about 5.4%. Shares of Allied listed in the United States were up almost 4% during premarket trading. The deal, according to Allied CEO Peter Marrone, offers significant value to shareholders and highlights the company's depth in gold assets throughout Africa. Zijin is one of the largest gold miners in the world with operations in nine countries. It made a successful debut in Hong Kong in '09, amid a sustained rise in bullion prices and a fundraising boom in September. If the deal ends under certain conditions, Allied must pay?C$220 to Zijin. The companies anticipate the transaction will close by April 2026. ($1 = 1.3676 Canadian dollars) (Reporting by Sumit Saha in Bengaluru; Editing by Shilpi Majumdar)
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MORNING BID AMERICAS - Gold-plated fear
By Mike Dolan Jan 26th - What's important in the U.S. and Global Markets Today By Mike Dolan Editor-at-Large of Finance and Markets Gold was unstoppable Monday, as it reached $5,000 per ounce at its highest level ever. It has risen?more that 80% in the last 12 months. What is the cause of the recent surge? Pick your favorite: a falling dollar; a fractured world order; renewed trade tensions; concerns about Fed independence and an inflationary horizon. The central?bank?buying boom and retail speculation continue. Looking ahead, it appears that gold and precious metals, with silver also at record levels, will remain the hedge and haven of choice. Below, I'll cover all of that and more. Check out my column about why the Fed's policy meeting this week could be a major flashpoint in an escalating fight for central bank autonomy. Listen to the Morning Bid podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a week. GOLD-PLATED FEAR Gold prices have risen again after a week filled with geopolitical turmoil surrounding Greenland. This was topped off by President Trump's sudden U-turn regarding military and trade threats against the Arctic island, and its European supporters. The about-face may have lowered tensions but it was a hollow win for Trump's NATO partners, who fear that the president's erratic and centralized foreign policy decisions will cause lasting damage to their alliance. Tariff threats remain active, and the threat of trade tensions looms as well. Trump retaliated against Canada on Saturday by threatening to impose 100% tariffs in response to Prime Minister Mark Carney's impending trade deal with China. Meanwhile, amid speculation that the U.S. and Japan would take joint action to support the yen in Japan's currency, the dollar fell to its lowest level against the yen in two months. The news came after reports Friday that the New York Fed checked dollar/yen exchange rates with dealers, which is considered an indication of a possible intervention. Any involvement by the United States would confirm that Washington is interested in a weaker dollar. The fatal shooting of a second anti-ICE demonstrator in Minneapolis has further heightened political tensions within the United States in this crucial election year. The furore may even lead to a partial shutdown of the government later this week. Chuck Schumer, Senate's leading Democrat, announced on Saturday that his party will vote against legislation which includes funding for the Department of Homeland Security. Winter Storm Fern's impact on the North American energy market continued Monday, as the oil price rose due to disruptions in production. The previous session saw a rise of more than 2%. This morning, aside from a weaker Dollar, we've also seen steady U.S. Stocks and a drop in Treasury Yields, ahead of the Fed meeting on Wednesday, where policy will likely remain unchanged, as well as the release of many?earnings from companies like Apple, Microsoft and Tesla. Chart of the Day Gold reached a record-high above $5,100 per ounce on monday, marking an 18% rise this year. This is after a 64% increase in 2025 - its largest annual gain since 1979. Safe-haven demand has driven the dramatic increase, as have U.S. monetary policies, robust central bank purchases and record inflows to exchange-traded fund. Silver climbed over $100 for the first-time on Friday. This follows its 147% increase last year, as retail-investor flow and momentum-driven purchasing compounded an extended?spell of tension in the physical markets for metal. Watch today's events * Dallas Fed Business Survey for January, Dallas Fed's new orders survey for November (8.30 AM ET) * U.S. Corporate Earnings: Brown & Brown (Alexandria Real Estate Equities), Nucor (Steel Dynamics), W. R. Berkley, Steel Dynamics Sign up for the newsletter to receive Morning Bid every morning in your email. Subscribe to the Morning Bid newsletter Website You can find us on LinkedIn. The opinions expressed are solely those of the authors. These opinions do not represent the views of News. News is committed to the Trust Principles and to the integrity, independence and freedom from bias.
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Sources say that Chinalco has joined the bidding for Brazil's CBA.
Two people with knowledge of the situation say that negotiations?with 'Emirates Global Aluminium' have slowed down. One source said that the process is still competitive. One of the people involved in the negotiations said that China's Aluminum Corporation of China and a third bidder were actively pursuing this deal. One of the sources stated that an announcement could be made within days or even weeks. Negotiations?could, however, still fail. CBA and Grupo Votorantim (which controls CBA) declined to comment. EGA and Chinalco didn't immediately respond to requests for comments. CBA is a Brazilian aluminium producer in seven Brazilian states. Votorantim SA, a Brazilian conglomerate, owns 69% of the company. In October, it was reported that the Brazilian company, EGA, which is owned jointly by Abu Dhabi sovereign fund?Mubadala, and Dubai sovereign fund Investment Corporation of Dubai (Mubadala) had been in talks to buy the Brazilian company. CBA's shares have risen by 84% in the past year, according to LSEG. Luciana Magnalhaes in Sao Paulo and Paula Laier, editing by Louise Heavens.
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Documents show that Newmont must approve RPT-Barrick North America's spin-off.
Documents seen by former Barrick executives and Canadian mining company Barrick show that the joint venture partner Newmont will be key to Barrick's plans to spin off North American assets. This is a dramatic change in fortunes for two global mining companies. The influence of Denver-based Newmont over Barrick's strategies is a major change from just a few short years ago, when the Canadian miner hoped to purchase Newmont's minor stake in Nevada mines. Barrick had tried to buy Newmont a decade before. Documents show that Newmont would have the right to first refusal if Barrick tried to sell its stakes in Nevada Gold Mines, NGM, which is the company's principal North American asset. Barrick holds 61.5% of the mine and Newmont has 38.5%. Barrick announced last year a restructuring to separate the North America operations from the riskier operations elsewhere in the world following the departure of former CEO Mark Bristow. Barrick's proposed initial IPO of North American assets include NGM, the Pueblo Viejo Mine in the Dominican Republic, and also Nevada's underdeveloped Fourmile Mine. The joint venture agreement between Barrick and Newmont, as filed with the U.S. Securities and Exchange Commission specifies that each party must "offer their Nevada joint venture interest" to the other party before considering selling to a third-party. The documents we have seen show that any transfer of shares must be approved by the other party. According to a source familiar with the project, Barrick will 'also need Newmont fund the capital of Fourmile. Newmont's Natasha Viljoen, the incoming CEO of Newmont in October 2025 told analysts that they were waiting to hear more information from Barrick. Barrick's attempt to restructure by potentially splitting into two entities is one of the most anticipated mining stories of 2026. This is due to strong investor interest and gold prices reaching successive record highs. The company will likely announce its plans during Q4 earnings in February. Barrick responded by email that it respected the joint venture agreement with Newmont, and adhered to all of its terms. Newmont spokesperson stated that the Nevada Gold Mines joint-venture agreement of the company has not been changed since it was made public. Newmont's spokesperson stated that "Newmont has no additional information beyond what is already in the public domain" regarding Barrick's possible IPO of North American gold assets. The company declined to comment on whether or not it would fund the Fourmile project. Barrick's shares may have risen 130% by 2025, but the company has not performed as well in recent years. Its stock returned 52% in that time, while its rival Agnico Eagle gained 142%. Barrick shares are still undervalued. Three executives familiar with the restructuring effort say that Newmont's ability to influence the sale of Nevada mines, despite only having a minor stake in them, is unusual. After years of back-and-forth between the two companies, Barrick was keen to purchase Newmont in 2019. Both companies formed a joint venture in Nevada after the merger failed. Former Barrick executive who was aware of the details of the joint venture said: "Newmont is doing a great job in being able to make the decisions. It wasn't long ago that Barrick had wanted to buy Newmont." Barrick experienced a turbulent year in 2025. The Mali military government took over the mine and imprisoned its employees. It was only after the company negotiated an agreement to get back the mine and release its employees that the company managed to negotiate a deal. Barrick's former CEO has left the company, and it is now looking to restore investor trust under chairman John Thornton. Mark Hill, the interim CEO of Barrick, is in charge while Barrick searches for a new CEO who will have to deal with institutional investors like BlackRock and activist firm Elliott. Helen Cai was appointed as Barrick's new chief financial officer this month. Analysts expect that the combined entity could perform better than its current state. The North America business has a value of around $42 billion. The Toronto Stock Exchange traded shares of Barrick up 1.90% on Friday, while the New York Stock Exchange traded shares up 1.52%. (Divyarajagopal, Toronto; Editing done by Caroline Stauffer Veronica Brown David Gregorio).
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UN Migration Agency: Hundreds of migrants are missing or presumed dead after crossing the Mediterranean.
The U.N. Migration?agency? said on Monday that hundreds of people were missing or believed to be dead after trying to cross the 'Mediterranean Sea. There have been reports of several shipwrecks over the past ten days due in part to bad weather. The IOM said that "the final toll could be much higher. This is a stark reminder of the fact that this remains the deadliest migration route in the world." The?International Organization for Migration released a statement confirming the deaths of three people, including twins aged about one year, in a search and rescue operation for a boat which left Sfax in Tunisia. According to their Guinean mother who survived, they died from hypothermia. IOM also reported that a man died of the same cause. IOM reported that survivors?from the same vessel said another boat left simultaneously but never arrived and its fate remains unknown. According to the IOM, several boats have been reported missing over the last 10 days, amid a violent Mediterranean Storm triggered by Cyclone Harry. Hundreds of people are still unaccounted for. Poor weather has hampered search efforts. The?agency has verified a survivor report from another vessel, rescued near Malta by a commercial ship, about a shipwreck in which?atleast 50 people are missing or dead. IOM reported that 51 people were 'feared dead' after a shipwreck off Tobruk in Libya. IOM: "Smuggling migrants in unseaworthy, overcrowded boats is a crime." It added that "arranging departures while a severe storm hit the region makes this behavior even more reprehensible as people were sent out to sea in conditions posing a near-certain death risk." According to figures from the agency, in 2025 at least 1,340 deaths will occur in the Central Mediterranean. (Reporting and editing by Aurora Ellis; Olivia Le Poidevin)
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Tepco aims to save $20 billion over 10 years
Tokyo Electric Power, Japan's largest utility, plans to reduce costs by about 3.1 trillion Japanese yen ($20billion) over the next 10 years. It will also seek alliances in order to accelerate reforms and capture data centre demand. The revised business plan of the utility has been approved by the government. It includes selling assets to raise about 200 billion yen in the next three year. Tepco is the operator of Fukushima Daiichi, which suffered one of the worst nuclear disasters of all time in 2011. The costs of decommissioning the plant, cleaning up the site and compensating victims are increasing. The company continues to depend on government funding for disaster-related expenses. Tomoaki Kobayakawa, President of Tepco, said at a press conference that the company would soon be seeking alliances for bold reforms to achieve both its responsibility to Fukushima as well as economic growth. RISING DATA CENTER DEMAND DRIVES QUEST TO COLLABORATE Tepco is yet to establish any major collaborations after it established?JERA in 2015, its joint venture for fuel and thermal energy with Chubu Electric Power. To meet the rising demand for electricity from data centres in Tokyo, the utility is working with companies that are focused on finding suitable sites and manufacturers to capture digital demand. The 3.1 trillion-yen target for cost reduction includes 1.4 trillion yen of personnel costs, 1.3 trillion in equipment, and 0.4 trillion on power supply. Equity stakes and property are among the assets that can be sold. According to the Nikkei, Tepco may sell its shares in electrical equipment manufacturer Kandenko in which it has a 46% stake. Kobayakawa refused to comment on specific assets. Tepco forecasted a net loss for the year ending March of 641 billion Japanese yen compared to a profit of 161.2 billion in the previous year. The company cited a one-off financial loss due to the Fukushima catastrophe. Tepco's shares fell 3.8% on Friday, falling below the Nikkei Index, which dropped 1.8%. After a malfunction, the Reactor is halted. Utility targets a recurring profit in fiscal year 2034 of 342 billion Japanese yen, up from fiscal 2024's 135 billion. The utility targets a recurring profit of 342 billion yen in fiscal 2034, up from 135 billion yen in fiscal 2024. This assumes that the reactor No.6 at?the Kashiwazaki - Kariwa nuclear power plant restarts during fiscal year 2025 and unit No.7 during fiscal year?2029. The No. 7 unit will be restarted in fiscal 2029. It stopped the No. It halted the No. This was Tepco’s first nuclear restart after the Fukushima catastrophe. Tepco reviews its business plan at least every two years. This process requires approval from the government. This is the first revision in over four years. The utility reduced costs by 8 trillion Japanese yen between fiscal 2012 and 2024 and raised 1.1 trillion through asset sales.
Gold miners' shares soar as bullion price reaches record high of $5,100/oz
Gold miners' shares jumped on Monday in premarket trade as bullion prices surged to record highs of $5,100 per ounce. This extended a historic rally driven by safe-haven demand amid market volatility and geopolitical uncertainty.
Gold's annual rise of 64% is the highest since 1979. This was a result of U.S. monetary policy ease, central?bank purchases and investors flowing into ETFs to hedge against macro-uncertainty and global policy risks.
Gold is a non-yielding asset that benefits from a low interest rate and an uncertain economic environment.
Bullion prices have risen by more than 18% in the past year.
Gold prices are typically higher, which boosts revenues, margins and cash flow. It also strengthens balance sheets and cash flows, giving companies more money to fund dividends, expansion or debt reduction.
Newmont, the top miner, rose by 4.4%. Shares of Barrick Mining listed in the U.S. climbed by 3.8%.
U.S. listed shares of South African miner?Gold Fields, AngloGold Ashanti Harmony Gold, and Sibanye Stillwater rose between?nearly 2 and 4.3%.
Gold prices have been on the rise due to expectations that the U.S. could cut interest rates in 2026.
The U.S. listed shares of Canadian mining companies Agnico Eagle and Kinross Gold each rose 4%. (Reporting and editing by Maju Samuel in Bengaluru, with Pooja menon from Bengaluru)
(source: Reuters)