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Sources say that Nigeria's Dangote plans on raising $1.5 billion through the IPO of its refinery.
Two people who have direct knowledge of this deal said that the Dangote Group plans to price its initial public offering (IPO) of its refinery unit in Nigeria at 525 naira per share ($0.40), a potential amount of $1.5 billion. One?of our sources and another person, who spoke on condition of anonymity, said that the company plans to sell 4.1 Billion shares. The terms are still confidential. The sources did not specify what percentage of the refinery they would be selling. One source said that the order book for this offer, which will be the largest in Africa, is scheduled to open September 14. Dangote Refinery has declined to comment. One source said that there will be a 15% green shoe option, which would allow the company to raise more money if the offer was oversubscribed. The Dangote Group, which owns the refinery in Lagos, is raising cash to fund the doubling of the facility's capacity, up to 1.4million barrels of oil per day. Aliko Dangote, a majority shareholder of the group, announced at a Botswana business meeting late 'on Thursday night that the IPO would open within the next 10-12 days.
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Wildfires near Indonesia's capital prompt calls for action
Officials said that wildfires are spreading near Indonesia's new capital city, which is currently under construction. Project authorities have urged the disaster mitigation agency to conduct cloud-seeding, water-bombing, and other operations. Indonesia has intensified its efforts to control haze, particularly in six provinces that have been hardest hit by the forest and landfires on Borneo and Sumatra Islands, which total 73,311 ha. Wildfires are raging on Borneo Island in several spots, but in the eastern portion, which is home to the new capital Nusantara (Nusantara), the situation has been relatively calm in recent weeks, since the fires started to worsen in July, when the dry season began. Agus Riyanto is the director of emergency response for the disaster mitigation agency. The disaster response and mitigation teams of the archipelago in Southeast Asia are currently facing their most difficult dry season for a decade. This is exacerbated by the "super El Nino". Agus stated that the largest fire in the new capital territory was in a forest at Bukit Suharto or Suharto Hill. The hill is named after an autocratic ex-president. Around 300 hectares of land have been burned. Bukit Suharto is located around 50 km (31 miles), from the city center, where a number major projects have been built in the last few year for the new capital. As of September 2, around 400 hectares of land had been affected by fires in the Nusantara area. NEW CAPITAL PLAN HAS FACED DELAYS Joko Widodo announced that the predecessor of President Prabowo Subito, Joko Subianto, had plans to build Nusantara, a $32 billion capital city, in 2019. This project will replace Jakarta on Java Island, which is plagued by?chronic traffic congestion, flooding and land subsidence. Since Prabowo's election in 2024, the project has been delayed and its budget cut. Wisnubroto, an expert in urban planning, says Nusantara is not the best location for the new capital because it's surrounded by forest and has limited water supply. However, the fire risk there is lower than the provinces on the west and central coasts of the island that Indonesia shares with Malaysia or Brunei. Indonesia currently has 53 aircraft that are involved in water bombing, seeding, and other activities. Authorities have confirmed that Japan has sent aircraft and personnel over to help. A helicopter from South Kalimantan, a neighbouring province, will be dispatched to Nusantara for water bombing. Agus stated that the clouds in the area are still not sufficient to seed, but the disaster agency will do so as soon as it is possible. On Friday, hundreds of Muslims performed "Istisqo", or rain prayers, in front of Nusantara's state palace. The preacher Rusdi Abdallah said, "We need to ask God for forgiveness. If it is granted, Allah will send rain in abundance."
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Copper rebounds on falling stocks and targets 10-week winning streak
Copper rose on Friday, and was set to record a 10th consecutive weekly gain. As of 0900 GMT the benchmark three-month copper price on the London Metal Exchange?was?up?0.3% to $14,373 per metric ton, moving towards its all-time high of $14,527.50. This week, the metal is expected to gain 0.5%. The metal has been rising every week since the beginning of June, as a result of soaring inventories in the U.S. In anticipation of possible import tariffs, tighten the market in other places. Shanghai Futures Exchange data released on Friday showed that copper inventories were at their highest levels ever. The weekly total fell by 13% to 63,000 tonnes, the lowest level since January 2024. LME Copper Stocks The?drop?was 475 tons and orders were given to remove another 1,550 tonnes. Copper prices will continue to rise, but the already high prices "are likely to limit gains in the near term," BMI, an Fitch Solutions unit, stated in a report. Christopher Waller, the Federal Reserve governor, made dovish remarks that led to a decline in the dollar overnight. A cheaper dollar can support greenback-denominated commodities by making ?them more affordable for buyers using other currencies. Aluminum fell 0.5% to $3.295 but is still on course to end the week at 1.6% higher. The cash-to-3-month aluminium spread The arrow has reversed into a slight backwardation. This indicates a tightening of availability. Citi stated in a note on aluminium that "we remain neutral to positive near-term due to low visible inventories, and a tight physical market." They added that the balance will become more difficult?overthe next six-12months as the growth of ex-China's supply accelerates. Zinc increased by 0.5%, to $3,932.50 with the three-month range Still?in steep reversal at $140 per?ton. After orders to remove 8,450 tons of lead stock, the price of lead increased by 0.5% to $1,912.50 Nickel grew 0.2%, to $16,825; tin fell 0.4%, to $54,700.
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Oil refiners may need to catch their breathe.
Shares of global oil refiners are up this year. This is due in part to supply disruptions caused by the U.S. - Iran and Russia - Ukraine conflicts. Technical analysis suggests that the rally may need to take a pause before the next chapter of the oil sector unfolds. Click here to see a more detailed table. VanEck Oil Refiners ETF CRAK spent the majority of the past decade confined within a clearly defined trading channel spanning approximately $17 from top-to-bottom. Early in the year, the ETF decisively broke above the channel ceiling near $43. It quickly reached the first logical chart goal: a move that was equal to the height of the channel, or $60. CRAK's price has risen modestly since then, but it appears overextended at $63 levels. The RSI, a widely-used gauge of market movement, flashes overbought signs on daily, weekly, and monthly 'timeframes. This suggests that the ETF may need to cool off its 66% surge year-to date. Fibonacci projections - percentage-based calculations that technical analysts use to forecast possible price targets – indicate that $70.5 and $77 are the next levels of interest if the uptrend resumes following a consolidation. But caution is advised. If the price falls below the high of July, $56.85, according to LSEG, it could lead to a drop towards the peak in May, near $52. If CRAK breaks below that level, it would increase the likelihood that CRAK will retreat back to its old trading range of $43 or less. What does the chart show? * CRAK has broken above its decade-long range of trading early this year. *?RSI across all timeframes signals the ETF as overbought and pointing towards possible consolidation Fibonacci targets are $70.5 and $77. A fall below $56.85 could lead to a decline towards $52 or lower.
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Sources say that Baowu, a top Chinese steelmaker, is interested in acquiring a stake in BHP's iron ore mine.
According to two sources briefed about the matter, China Baowu Steel Group is interested in a minority stake at BHP's Jimblebar iron ore mine located in Western Australia. Sources say that Baowu may seek a stake between 15% and 25 percent of BHP's project. They did not provide any other information or a possible valuation, but spoke anonymously due to commercial sensitivities. BHP, in a filing to the stock exchange after publication of the article, said that it has a history of partnerships with its assets and explores options that could create value for its shareholders. BHP also stated that its Western Australian Iron Ore Business remained central to BHP’s portfolio, and that the company remained fully committed both to Western Australia and to this business. Baowu has not responded to a comment request. There has not been a decision made, and it is not certain that Baowu will be able to complete a deal. BHP holds a majority stake in the mine. Minority shareholders Itochu and Mitsui are Japanese trading houses. BHP said its share was worth $3.2 billion at the time of mine opening in 2014. BHP produced 62.5 million tonnes of iron ore in fiscal 2026. At current prices, that's worth $6.2 billion. This accounted for about a quarter BHP's production of the main steelmaking ingredient. Australia is a top destination for Chinese investors Bankers who are familiar with BHP's operations questioned whether a deal like this would be in line with BHP’s strategy to maximize the value of its ore by selling it to Chinese buyers. This was evident from recent deals between BHP and the state-owned China Mineral Resources Group. CMRG has been negotiating with miners for steel mills and has banned them from purchasing certain products in order to win concessions during contract negotiations. BHP and CMRG settled a dispute that lasted more than six months in April. This 'opened the door' for steel mills to buy certain cargoes including Jimblebar Fines which had been blacklisted. To spread risk, miners tend to sell stakes to new projects as opposed to well-established mines like Jimblebar. Baowu had previously partnered with Australian miner Rio Tinto, for example in a deal signed with Rio Tinto dated 2022 to develop a 2 billion dollar iron ore mining project also in the Pilbara area of Western Australia. Australia used to be a popular destination for Chinese investors. However, investment has been declining?for many years due to national security concerns. Canberra has also blocked Chinese purchases of lithium and rare Earths. China no longer ranks among the top 10 foreign investment countries in Australia.
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Malaysia declares an emergency in Serian district, Sarawak due to haze
Malaysia declared an emergency on Friday in the district of Serian in Sarawak after thick haze from forest fires in?Indonesia caused air pollution to reach 'hazardous' levels. Sarawak on Borneo has been severely affected by the fires that have ravaged the Indonesian side. Haze forced the closure of schools in certain parts of the state. Malaysian authorities classify Air Pollution Index (API), readings over 300, as hazardous. A measurement of 500 is the threshold to declare an emergency. Government data revealed that the API in Serian reached 519 on Friday. Anwar's Office said that the king of Malaysia, Sultan Ibrahim, issued an emergency declaration after receiving advice from Sarawak Premier?Abang johari Openg and Prime Minister Anwar Ibrahim. The statement stated that "Sultan Ibrahim has consented to a declaration of a state if emergency in the Serian district of Sarawak due to haze conditions which have reached an air pollution level dangerous to public safety and health." Douglas Uggah Embas, the chairman of Sarawak's disaster management committee, had told a press conference earlier that the state had asked for an emergency declaration when API readings exceeded 500. Douglas stated that the emergency situation would only affect the Serian district, which covers an area of approximately 20 km (12 miles). Douglas also said that essential services such as supermarkets, petrol pumps, and banks should continue to operate. He added that cloud-seeding was also carried out. Malaysia is a constitutionally monarchy where the king plays a mostly ceremonial role and executes his duties on advice from both the prime minister and cabinet. The'monarch' has the authority to declare an emergency if there are grave threats to the national security, economy or public order.
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France will give more than EUR1 Billion in aid to weather-hit farmers
France announced on Friday that it would be providing more than EUR1 billion ($1.16 billion), in aid to farmers, after record heatwaves caused major damage to crops, pastures, and water supplies. Paris is trying to control the deficit in order to prepare for the 2027 presidential elections. Annie Genevard, Agriculture Minister, told reporters that "one billion euros is a massive effort in the current budgetary environment." She said that about?half, or EUR520 million, of the package would be used to provide quick payments for weather damage. A local recovery fund is also created as part of the aid plan to assist farmers in buying seeds, plants and animal feed after droughts have dried up farmland. Other measures include land tax relief, assistance with?social security payments and fuel subsidies. The FNSEA (France's largest 'farmers' 'union) estimates that agricultural production losses in France this summer will exceed EUR10 billion. This includes both the livestock and crop sectors. A heatwave is forecast for?this coming week in?the?largest farm producer of the European Union.
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The soft dollar sets a 10-week streak of saving
The copper price was'stable' on Friday but is expected to end the week higher due to a drop in the U.S. Dollar, which has offset any pressure caused by falling supply fears. By 0710 GMT, the benchmark three-month copper price on London Metal Exchange had risen only by 0.03% to $14,337.5 per metric tonne. This put the metal on course to gain?by the exact same amount this week. It would be the tenth consecutive weekly gain. The Shanghai Futures Exchange's most traded?copper contract advanced 0.22%, to 108 780 yuan (16,208.24 dollars) per ton. After dovish comments by Fed Governor Christopher Waller, the dollar fell overnight. CME's FedWatch shows traders now?pricing even odds for a September rate increase, down from nearly two-thirds of the time a day ago. A cheaper U.S. ?dollar can support greenback-denominated commodities by making them more affordable for buyers using other currencies, and lower rates can support industrial metals by stimulating economic activity. The week was marked by volatility for copper. Resurgent interest rates fears and market perceptions that physical supply is less tight weighed down trading in the early part of the week. LME copper’s cash-to-3-month spread Backwardation dropped to $57.93 per ton, down from $171.40 per ton the week before. Aluminium also fell by 0.09 % on the LME. It is expected to finish the week with a 2.05% increase. The Cash-to-three-?month Spreads flipped slightly backwards on Thursday, indicating tight availability. After paring down earlier gains which saw it reach 24,510 yuan per ton, the highest since June 4, the SHFE aluminium prices added 0.06%. Other available zinc stocks at SHFE-monitored storage facilities Metal exports from China dropped 15% to 95,367 tonnes in the past week due to tightness. Zinc gained 0.35% on the?LME, while?lead gained 0.29 %, nickel fell 0.18%, and tin dropped by 0.5%. Nickel lost 0.72%, tin gained 0.28%, and zinc increased 0.43%.
Volkswagen's unexpected turnaround deal avoids a showdown when job cuts are looming
Volkswagen shares reached a?11-week peak after the supervisory board of Europe's biggest automaker late Thursday struck?an ambitious turn around agreement that focused on sweeping cuts in jobs and avoided a conflict between major stakeholders.
The agreement on the largest restructuring in the group’s 89-year-old history includes another 50,000 job reductions, bringing the agreed total to 100,000. It also leaves the future of four German plants open.
Volkswagen is also under pressure, along with most of its European counterparts, from the 'painful tariffs' in the United States and the falling sales in China, a former cash cow, as well as aggressive Asian competitors entering the stagnant European market. All of these factors have eaten into the operating margins for the group, which was 3.8% in the half-year, down from 7.9% at its peak in '2022, the last decade.
Analysts and shareholders expressed relief at the fact that Volkswagen, with its 650,000 employees and complex structure, and a number of powerful stakeholder groups is still able to take important decisions during times of crisis.
Volkswagen shares rose 5.8% to their highest level since June 18 at 0903 GMT. They were the second biggest gainer in the pan-European STOXX 600 Index.
Moritz Kronenberger, a shareholder in Volkswagen, said that the agreement was a good sign for Volkswagen as well as the capital markets - even though it would mean severe cuts to the group and its workforce.
The ball is in the hands of the executive committee. He said that there are no excuses for the implementation of the program.
The supervisory board was outnumbered by the unions, and Lower Saxony, on the management side. This would have created a stakeholder conflict unprecedented at the automaker.
Volkswagen CEO Oliver Blume had previously stated that the German operations would be responsible for half of the savings. This would mean around 25,000 jobs being cut.
The details of the job-cutting program will need to be hammered between management and the unions. As part of an earlier turnaround package in 2024, they secured job guarantees for most of Volkswagen's German operations up until 2030.
Citi analysts said, "We're pleased that this agreement was reached." This agreement does not change the EU's competitive environment, China's continued market share losses, or raw material cost pressures.
Volkswagen is looking for alternatives to its German plants located in Emden and Hanover. Zwickau, Neckarsulm, and Zwickau could be repurposed under new ownership.
(source: Reuters)