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Mayor of Kyiv says that Russian missiles have caused fires and scattered debris in Kyiv.
Vitali Klitschko, the mayor of Kyiv, said that Russian missiles fired at night ignited fires in several districts and scattered debris, shattering glass and damaging cars. Klitschko, who posted on Telegram, said that emergency services were dispatched at several sites to clean up the debris left by the air weapons, but there had been no reports of casualties. Witnesses heard what sounded as if air defence units were in operation. It was not immediately known the size of the attack and the primary target. Klitschko claimed that the attack was carried out using ballistic missiles. Russia has not yet commented. Mykola Kashnyk, the governor of the region, told Telegram that a house in the area surrounding Kyiv caught fire due to the Russian attack. An elderly woman was injured. Since 2022 when Russia launched a full-scale invasion, it has continued to attack Ukrainian energy installations. It maintains that these facilities are legitimate targets in the war. The attack on Ukraine Tuesday killed four people, left hundreds of thousands of people without electricity and many others without water. Kyiv claimed that this was the latest in a series of attacks by Moscow to disrupt its neighbour's power system in advance of winter. Reporting by Gleb Garanich in Kyiv, Sergiy Karazy from Melbourne and Lidia Kelly from Kyiv; editing by Chris Reese & Jamie Freed
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Australia and New Zealand prepare for heat and fierce winds
The weather in Australia and New Zealand will continue to be hot and windy this week. On Wednesday, the meteorological agencies warned that conditions would worsen over the next few days. MetService, New Zealand's weather forecaster, said that gusts of up to 150 kilometres per hour (93 miles an hour) could be experienced along the South Island’s east coast on Thursday, and as high as 140 kilometres per hour in Wellington, New Zealand’s capital. Authorities warned people to stay inside, avoid traveling and prepare for potential power and communication outages. The warnings come after strong winds and heavy rainfall on Tuesday, which left thousands of people without power. A man was killed in Wellington Park when a branch from a tree fell on him. Winds on Tuesday fanned wildfires in Hawke's Bay, on the North Island and near Kaikoura, on the South Island. Ken Cooper, Assistant National Commander of Fire and Emergency New Zealand, said that 14 buildings were destroyed near Kaikoura. This included five homes. The area remains closed and there are evacuation centres. Officials haven't estimated the size of the fire. FENZ reported that in Hawke's Bay, they were making progress on the four vegetation fires despite the windy conditions. They were also monitoring the weather. The Bureau of Meteorology in Australia said that extreme heat could be a record-breaker across the central regions, bringing heatwaves and increased fire danger. Sydney will reach 39 degrees Celsius on Wednesday. (Reporting and editing by Stephen Coates; Lucy Craymer)
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Celebrities join Prince William of the UK in Brazil to celebrate Earthshot Prize
The Prince of Wales and the former Formula One champion Sebastian Vettel are among the celebrities who will join him at his award ceremony in Brazil next month for his multimillion dollar environmental prize. In 2020, the British heir-to-the-throne established the Earthshot Prize with the goal of finding innovative solutions for pressing environmental issues. The winners of this year's Earthshot Prize will be announced on November 5 at an event in Rio de Janeiro that is sure to attract a lot of attention. The night's performers will include Brazilian musicians Gilberto Gil and Seu Jorge, as well as Canadian pop singer Shawn Mendes, and Minogue, who was selected by William's dad King Charles to be an artist whose song brings him joy. Organisers announced this on Wednesday. Luciano Huck, a Brazilian TV host, will be the event's host. Other presenters include Brazilian gymnast Rebeca André, Brazil's top Olympian Cafu and four-time F1 World Champion Vettel. In 2022, the German driver who was increasingly vocal about sustainability and environmental issues, saying that climate change made him doubt his job, retired. Winners receive cash prizes for their projects Earthshot's CEO Jason Knauf stated that "with two weeks left, we are delighted to announce the support from global artists, performers and Brazilian talent who will be joining us in Rio." The organizers also released a trailer titled "Meet the World's True Action Heroes", which was voiced in Hollywood by actor Matthew McConaughey. Earthshot aims to find innovative solutions to climate change and other environmental issues. Five winners will receive 1 million pounds ($1.3million) each for their projects. William will represent his father at the UN Climate Summit COP30 in Brazil. William has been campaigning on environmental issues since more than 50 years. (Reporting and Editing by Ros Russel)
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Vale expects iron ore production to reach its highest level in 2025 after the strongest quarter since 2018.
Vale, a Brazilian mining company, reported Tuesday that it had achieved its highest quarterly production of iron ore since 2018. It also said that its three main business units are on track to meet the upper bands of their 2025 production targets. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons of steelmaking material during the third quarter. This is a 3.8% rise on an annual basis and the highest production since the final three months of 2018. Vale's performance was boosted both by the record-breaking production in the S11D project, located in the north of Brazil, and the ramping up of other projects. Iron ore production is expected to reach 325-350 million tons by 2025, according to the company. Production totaled 245.7 millions tons in the first nine months. Vale's sales and output report stated that its iron ore and copper businesses are "tracking towards the upper-end of the production guidance ranges for 2025." Sales of iron ore including pellets rose by 5.1% on an annual basis to 86.8 million tons during the third quarter. The realized price of iron fines also increased by 4.2%, to $94.4 per tonne. Reporting by Andre Romani, Sao Paulo; Editing by Natalia Siniawski & Richard Chang
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Prolec JV to be owned by GE Vernova for $5.28 Billion in grid supply push
GE Vernova announced on Tuesday that it will pay $5.28 Billion to purchase the remaining 50% of the transformer maker Prolec GE, as artificial intelligence is driving grid equipment demand. The joint venture partner Xignux will be purchased by a company that is owned equally by cash and debt. This purchase should close in mid-2026 subject to regulatory approvals. The demand for electricity in the U.S. has increased dramatically as Big Tech and Silicon Valley startups compete to scale AI technologies behind services like ChatGPT. According to the U.S. Energy Information Administration, power consumption in 2025-2026 will reach record levels. This is due to cryptocurrency mining as well as increased demand by households and businesses. The CEO Scott Strazik said, "This acquisition is in line with our financial and strategic objectives. It is also beneficial to our customers as it strengthens our presence in North America where the demand for grid equipment has been growing rapidly." Prolec GE was established as a joint venture in 1995 by Xignux & General Electric. It announced earlier this year that it would invest $140 million and create 330 jobs in Goldsboro in North Carolina over the next three-year period, surpassing $300 million of U.S. investments and Mexico investments. About 10,000 employees are employed by the grid equipment manufacturer in seven factories around the world, including five in America. After-hours trading saw a slight increase in GE Vernova shares. On October 22, the company will also report its third-quarter results. Morgan Stanley acted on behalf of GE Vernova as a financial advisor, and Skadden Arps Slate Meagher & Flom acted as legal counsel. J.P. Morgan Securities advised Xignux, and Sidley-Austin served as Xignux's legal counsel.
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Gold drops 5%, but stocks are mostly flat. Earnings are positive.
The major stock indexes were mostly flat on Tuesday. Upbeat results and projections from leading U.S. companies provided some support. Gold prices fell more than 5%, as investors took profit after a recent rally. After conservative Sanae Tachichi was elected Japan's Prime Minister, the yen dropped to its lowest level in a week. The Nikkei stock index closed at a new record high in Japan on Tuesday. Spot gold dropped 5.31%, to $4,123.85 per ounce. This was the steepest percentage decline since August 2020. Prices reached an all-time high of $4,381.21 Monday and have risen by about 60% in this year. U.S. president Donald Trump said he expects to reach a fair deal with Chinese President Xi Jinping next week when they meet in South Korea. He also played down the risk of a conflict over Taiwan. Investor sentiment was also boosted by the prospect of a solution, as well as a deal made between Australia and the United States to supply rare earth minerals. Coca-Cola shares rose after it posted earnings that exceeded analysts' expectations. GM also saw a rise in its share price after raising its forecast for the full year. Michael Green, chief strategy at Simplify Asset Management, Philadelphia, says that the reaction to earnings surprises has been modest. Green stated that "the earnings are better than anticipated as companies continue to grow slightly in terms margins. This suggests (companies have to) be passing on the tariffs or pushing them back onto the Importers." The Dow Jones Industrial Average increased 218.16 points or 0.47% to 46,924.74, while the S&P 500 gained 0.22 points to 6,735.35, remaining essentially unchanged. Meanwhile, the Nasdaq Composite dropped 36.88 points or 0.16% to 22,953.67. The MSCI index of global stocks fell by 0.84 points or 0.08% to 994.85. The STOXX 600 Index rose by 0.21%. The dollar gained 0.81% against the Japanese yen to 151.96. Takaichi, Japan's first woman prime minister and leader in the ruling Liberal Democratic Party, became Japan's premier on Tuesday. Traders bet on Takaichi’s government to muddy interest rate forecasts and increase fiscal spending. Dollar also rose in relation to other currencies. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) was up 0.35% at 98.95. Meanwhile, the euro fell 0.33% to $1.1602. Investors lowered U.S. Treasury rates as they awaited the Federal Reserve's next move. According to market expectations, the Fed could cut rates up to three times in the next six-months, but the European Central Bank is unlikely, when it meets next week, ever to do so. The yield on the benchmark U.S. 10 year notes dropped 2.9 basis points from late Monday to 3.959%. Investor confidence took a hit last week when a series of bad loans in regional U.S. banks sparked concerns about credit risks, which threatened to spread into the wider markets. Risk assets were also affected by the prolonged U.S. shutdown. The oil prices finished higher. Brent crude futures rose by 31 cents or 0.5% to settle at $61.32 per barrel. U.S. West Texas intermediate crude futures expired at Tuesday's settlement and closed 30 cents or 0.5% higher at $57.82. (Reporting and editing by Will Dunham and Zieminski; Additional reporting and editing by Amanda Cooper and Pranav Kashyap in London, and Twesha and Twesha Dhikshit in Bengaluru)
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US wants 1 million barrels for Strategic Petroleum Reserve
The U.S. Department of Energy announced on Tuesday that it was looking to purchase 1 million barrels of oil to be delivered to the Strategic Petroleum Reserve. It is hoping to take advantage of the relatively low prices of oil to replenish the stockpile. Former President Joe Biden's administration sold record amounts from the SPR. This included a 180 million barrel sale in 2022, after Russia invaded Ukraine, one of world's largest oil producers. The reserve has a capacity of 700 million barrels, but currently holds nearly 409 millions. The administration of President Donald Trump has sought to replenish the SPR but has been hindered by the lack of funds as well as the ongoing maintenance of the reserve. It is located in a series hollowed out salt caverns along the Texas and Louisiana coastlines. Pumps, pipes, and other SPR above-ground infrastructure are exposed to salty, corrosive air. Trump's tax-and-spending bill included $171 million to purchase and maintain SPR oil, a much smaller amount than the original $1.3 billion. It is likely that new legislation will be needed to purchase more oil for SPR. Energy Secretary Chris Wright stated that Trump is working with Congress to replenish the SPR. Wright stated that while this process will not be completed overnight, it is an important step towards strengthening our energy security. On Monday, both the Brent international benchmark and the WTI U.S. benchmark had reached their lowest levels since the beginning of May. This was due to record U.S. production of oil and the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies that they would continue with the planned supply increases. WTI crude futures closed Tuesday at $57.82 per barrel, up 30 cents. The deadline for submitting bids to the SPR is October 28. (Reporting and editing by Chris Reese, Lisa Shumaker, and Jasper Ward. Additional reporting by Timothy Gardner.
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Citgo auction: Bidders and creditors fight in US court
Bidders pursue the parent company of Venezuelan-owned U.S. refiner Citgo Petroleum Creditors waiting to receive proceeds from the court ordered auction clashed on Tuesday in Delaware over which offer would be approved at the end of two years. The court is trying its best to finish the auction in order to compensate up 15 creditors for defaults on debts and expropriations that occurred in Venezuela. Citgo Holding, Citgo's parent company, was found responsible for Venezuela's debt in the eight-year long case. Citgo and Venezuela lawyers asked the court to reject the $5.9 billion offer of an affiliate of Elliott Investment Management because of its "low price", which was lower than a rival bid by a subsidiary Gold Reserve, and that the sale process is "defective." An officer in charge of the auction recommended that Elliott's Amber Energy bid be accepted, after previously supporting Gold Reserve. The court's marketing efforts were defended by Robert Pincus, a court officer. Amber's offer, he said, implies an estimated business value of $9.5 billion. It also offers the best combination between price and likelihood that the transaction will be completed. Amber's proposal includes a separate agreement to pay $2.1billion to holders of Venezuelan bonds that have defaulted. The agreement only lasts until early December. Counsels for Amber, Pincus and the Court have asked the court to select a winner as soon as possible. This week, Delaware Judge Leonard Stark heard arguments regarding motions filed by Venezuela or Gold Reserve seeking to disqualify Stark, court officer Pincus, and two advisory firms for alleged conflicts of interest. The court also heard the final arguments about the bids. Nathan Eimer said that Amber's offer "is so low...that it shocks this court's conscience and cannot be confirmed" during the hearing. Gold Reserve asked the court also to reject Amber’s bid in favor of the offer made by its subsidiary, which was about $2 billion more expensive but did not include a payment agreement with the Venezuelan bondholders. CREDITORS V BONDHOLDERS Gold Reserve intends to divide auction proceeds between a greater number of Delaware creditors, rather than settle the bondholders claim. This is because a New York court has yet to resolve the validity of the notes. Matthew Kirtland said that it would be an injustice if a significant amount of money was transferred from the attached judgement creditors to the 2020 bondholders based on a security or pledge instrument which might be invalid. Since the U.S. imposed sanctions on Venezuela in 2019, Citgo severed ties with its ultimate parent, Caracas-headquartered oil company PDVSA, and is now controlled by boards appointed by an opposition-led congress. Both the government of President Nicolas Maduro and the opposition political party reject the auction. The Treasury Department of the United States, which shielded Citgo against creditors in recent years must approve the winner.
Copper squeezed in the United States but China has plenty: Andy Home
The London Metal Exchange ( LME) copper cost struck a record nominal high of $11,104.50 per metric heap on Monday.
The London market is playing catch-up with its U.S. peer CME Group, where a vicious brief capture has been playing out on the COMEX agreement.
Traders are now rushing to ship metal to CME storage facilities in the United States to cover brief positions.
The panic has added fuel to a rally that has driven the copper cost up by 27% because January and enhanced a bull narrative of a market captured between constrained supply and green need boom.
Nevertheless, not everybody is short of copper. China, the world's. biggest purchaser, has lots of the stuff.
This doesn't use much relief for those except the CME. agreement, a minimum of straight, but it's a beneficial suggestion the. world hasn't lack copper right now.
STRONG SEASONAL SURGE
Inventory registered with the Shanghai Futures Exchange. ( ShFE) stood at 291,020 metric lots at the end of last week,. compared with London Metal Exchange (LME) stocks of 105,900 loads. and CME stocks of simply 18,244 tons.
This year brought the normal seasonal stocks surge around the. lunar brand-new year holidays but it's been the strongest because 2020,. a year of COVID-19 interruption.
Headline ShFE inventory peaked at 300,045 loads in the middle. of April and has actually remained around those elevated heights, the normal. post-holiday drawdown so far obvious by its absence.
There are another 45,000 lots of bonded copper registered. with ShFE's international branch, the International Energy. Exchange.
The integrate in Chinese exchange stocks lifted international exchange. stock to 491,000 heaps at the end of March, the highest. month-to-month level since August 2021.
STAMMERING NEED, HIGHER SUPPLY
Weak spot demand, robust imports and rising domestic output. have combined to keep China's exchange inventories high.
Chinese buyers, like those everywhere else, have actually responded to. copper's sharp rally by de-stocking, which is probably why the. seasonal post-holiday decline in ShFE stocks hasn't yet kicked. in.
Meanwhile, Chinese imports of refined metal have been. performing at a healthy clip considering that the middle of in 2015. Imports. sped up from 1.65 million heaps in the first half of 2023 to. 2.07 million in the second half.
The pace dropped just slightly in the first four months of. this year with cumulative imports of 1.25 million tonnes up by. 17% on the exact same period of 2023.
Net imports of 1.18 million tonnes were up by a sharper 26%. on the year-earlier period reflecting lower exports, which fell. to 70,400 heaps from 129,000.
Considerably, imports of basic material have likewise been rising. this year.
Inbound volumes of copper concentrate increased by 7%. year-on-year to 9.34 million lots in January-April, Chinese. gamers seemingly adapting to the loss of the Cobre Panama mine. after its closure at the end of 2023.
Greater copper concentrates schedule has actually translated into. greater domestic production of refined copper. After rising by 8%. in the very first quarter of the year, output growth accelerated to. 9% in April.
A March agreement by Chinese smelters to cut output due. to uneconomic treatment terms was one of the triggers for. copper's super-charged rally however any influence on the country's. production rate is so far difficult to determine.
IMPORT PREMIUM COLLAPSE
The combination of elevated stocks and super-high costs has. triggered a collapse in the Yangshan premium << SMM-CUYP-CN >, a. closely-tracked sign of China's copper import appetite.
The premium is currently assessed by regional information service provider. Shanghai Metal Markets at minus $5 per ton, the first time it. has fallen into negative area since the data series was. introduced in 2013.
The area import door has actually just strongly closed. Metal will. still stream into China under yearly supply offers, which tend to. be favoured by bigger purchasers, but arrivals will likely drop a. number of gears relative to the last couple of months.
This may permit CME shorts some flex in re-routing shipments. of South American copper from China to U.S. ports.
CME's list of deliverable brands doesn't include either. Russian or Chinese brands, limiting the capacity for a straight. stocks transfer from the LME, where they represented. two-thirds of necessitated inventory at the end of April.
China plainly won't miss out on the additional import systems in the brief. term as the price spike reduces buying at every phase of the. item manufacturing chain.
DISCONNECT
This copper rally has actually been driven by fund purchasers and. highlighted by trade short position holders being required to. cover.
Financiers are still coming to the bull celebration. Money. managers have raised their outright long positions on the CME. agreement to a near six-year high of 141,204 contracts.
Mutual fund long places on the LME have actually likewise bent. broader over the last week to 107,385 lots, the most bullish. positioning since the LME released its Commitments of Traders. Report in 2018.
It takes 2 to tango in a bull market and it's the CME. shorts that are also contributing to the benefit momentum.
However, assuming traders can move copper to CME storage facilities. and rebuild diminished stocks, the present detach between CME. and LME prices will be closed.
That will leave the far bigger detach between cost and. supply chain truth.
Can copper keep rising if the world's largest physical. customer stops purchasing? And if China will not pay these costs, who. else will?
The opinions revealed here are those of the author, a. writer .
(source: Reuters)