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Brazil's Petrobras to look for vessels for Sergipe job by year-end
Brazilian staterun oil company Petrobras will release a brand-new tender for companies to provide two offshore oil production vessels for its Sergipe state deepwater task by the end of this year, an executive said on Friday. The company failed to draw in interest in a previous bid to safe and secure vessels, which has actually resulted in hold-ups in the job that was supposed to begin production in 2028. Petrobras has actually already structured the tender and sent it to its partners in the job for input, its executive officer for engineering, technology and development Renata Baruzzi told reporters during a call to discuss its third-quarter outcomes. The company has changed the tender to make cashflow and financing more appealing to possible bidders, stated Baruzzi. When both proposed vessels are running at complete capability, they would increase Brazil's oil production by 240,000 barrels each day and its natural gas production by about 22 million cubic meters per day, according to info from previous Petrobras bids.
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US stocks hit record once again on Trump win, Treasury yields dip
Wall Street shares hit record highs for a 3rd consecutive day while Treasury yields pulled back on Friday, as investors again cheered Donald Trump's definitive success, while China started a fresh round of financial support for its flagging economy. A day after the Federal Reserve provided a quarter-point rate cut, as prepared for, focus reversed to the fallout of Tuesday's U.S. election and headings out of Beijing. The overseas yuan damaged, while U.S.-listed shares of Chinese firms and China exposed-sectors in Europe fell in a sign of investor disappointment with China's stimulus news that did not directly inject cash into the struggling economy. Financiers on Wall Street brushed off any frustration about the absence of a Chinese financial bazooka and pushed major U.S. stock indices to brand-new record highs. The S&P 500 index added 0.3%, the Dow Jones Industrial Average climbed 0.7%, and the Nasdaq Composite reversed earlier gains to dip 0.1%. The S&P 500 and the Dow are set for their finest week in a year. Shares of electric automobile maker Tesla, whose Chief Executive Elon Musk turned into one of Trump's biggest fans in the last leg of his reelection campaign, shot up 5.6%,. catapulting its market capitalization to $1 trillion for the. very first time given that 2022. Nicholas Colas, a co-founder of DataTrek Research study LLC, mentioned. numerous factors for buying U.S. stocks. The Fed is cutting. rates, and the U.S. economy is still strong, Colas stated. Moreover, the U.S. Republican party won the White House and. the Senate today, and might win the House also - a similar. scenario to the November 2016 election result, Colas said, that. preceded the S&P 500's 22% gain in 2017. U.S. stocks' modest gains on Friday masked a typically. strong week, as Trump's election win stired expectations of. lighter guideline and tax cuts that might even more increase the. U.S. economy. Outside the United States, nevertheless, the mood was more. controlled. A MSCI index for world stocks was flat,. however near to a record high, while the pan-European STOXX 600. lost 0.6%. What you are going to get since of the tidy sweep - is a. mandate to improve the U.S. economy. So, taxes will boil down,. bureaucracy will ease and regulation will become lighter, said. Guy Miller, chief markets strategist at Zurich Insurance Group. Between now and year-end, there is a tailwind for U.S. stocks. The U.S. market has capacity. Germany's DAX stock index fell 0.8% a day after posting its. best everyday performance of 2024 up until now, helped by. expectations that Germany might scrap its debt brake. CHINA DISAPPOINTS China revealed a 10 trillion yuan ($ 1.40 trillion) financial obligation. bundle to ease city government funding pressures and support. flagging financial development. Finance Minister Lan Fo'a said more stimulus was coming,. with some analysts stating Beijing might not want to fire all its. financial weapons before Trump takes over officially in January. Mainland blue chips fell 1%, a day after increasing. 3%. Hong Kong's Hang Seng likewise slid in an indication of some. care ahead of the announcement. The offshore Chinese yuan fell 0.5% to 7.1785 per dollar . China-exposed European high-end and mining. stocks each tipped over 3%. Unless there's more to come later on this night, today's. financial statement is another dissatisfaction for those. expecting significant stimulus, said Capital Economics chief. Asia economic expert Mark Williams. FED CUTS U.S. Treasury yields fell after Fed Chair Jerome Powell on. Thursday signaled continued, patient policy easing. The Fed cut rates after a quarter-point cut from the Bank of. England and a big half-point cut by Sweden also on Thursday. Ten-year Treasury yields fell 8.3 basis indicate 4.343%. , having actually reversed sharp rises seen following the U.S. election outcome. Powell stated Tuesday's election outcome would have no. near-term impact on U.S. monetary policy. The Fed indicated a more unpredictable financial outlook and. inflation staying raised, stated Mahmood Pradhan, head of. international macroeconomics at the Amundi Financial Investment Institute. Together with a most likely change in policy direction under the. brand-new administration, we anticipate a more uncertain and determined pace. of easing next year. The dollar index, which measures the currency versus. six significant peers, rose to 104.86, following a 0.7% drop on. Thursday, its biggest since Aug. 23. On Wednesday, it soared. 1.53%, the most in over 2 years, an indication of increased. volatility as investors evaluate the new Trump administration's. policies. The euro and sterling softened against the dollar. , while the dollar slipped 0.2% to 152.63 yen. Bitcoin was a touch firmer simply above $76,357,. following an almost 10% surge this week, hitting a record peak of. $ 76,980 on Thursday. Trump has actually vowed to make the United States. the crypto capital of the world. After a rollercoaster week, gold fell 0.8% to. $ 2,686.19. It plunged more than 3% on Wednesday, but bounced. 1.8% overnight. Recently it rose to an all-time high of. $ 2,790.15. Brent petroleum futures pared losses throughout London. trade and were last down 2.7% at $73.59, U.S. West Texas. Intermediate crude fell 3% to $70.18.
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Trafigura indications long-term gas offtake deal with Canada's NuVista Energy
Product trading home Trafigura has actually signed a longterm gas offtake arrangement with NuVista Energy, giving the midsize Canadian manufacturer direct exposure to international melted natural gas (LNG). market rates, the business said on Friday. NuVista will provide 21,000 metric million British thermal. units each day (MMbtu/d) of natural gas to Trafigura with the. purchase price indexed to the Japan Korea Marker (JKM) for a. duration of as much as 13 years starting Jan. 1, 2027. The JKM is the LNG benchmark price evaluation for area. physical cargoes in Asia and the deal opens access to international. LNG markets for Calgary, Alberta-based NuVista at a time when. Canadian gas prices are struggling. For over a decade of growth, we have focused on making sure. considerable diversity in our North American natural gas sales. areas to take full advantage of returns on our condensate-rich natural. gas, NuVista CEO Jonathan Wright stated in a declaration. We are exceptionally happy to now make our first entry to. the world LNG markets. NuVista produces around 83,000 barrels of oil equivalent per. day (boepd) from Canada's Montney region, among The United States and Canada's. leading shale plays. The handle Trafigura continues a recent pattern of Montney. manufacturers signing offers to increase exposure to LNG markets. Canada does not yet have any LNG export terminals, although the. Shell-led LNG Canada project is due to start running. next year and 2 other smaller terminals are under. building. Trafigura also signed a seven-year offtake contract. with Canada's biggest gas company Tourmaline Oil Corp. in January, while producer ARC Resources. entered into a supply contract with LNG company Cheniere Energy. last year.
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Baxter alerts typhoon disruptions at IV facility might strike financials in 2025
Baxter International warned on Friday that hurricane-related interruptions at its North Carolina IV options center could impact its financials through early 2025. Shares of the medical products maker fell 4.4% in early morning trading. The company has actually been trying to reinstate production at the plant, which makes 60% of the United States' supply of intravenous fluids and some crucial dialysis services, after it was closed in late September due to flooding throughout Cyclone Helene. While all manufacturing lines at the facility are anticipated to resume before completion of this year, the production of a secret IV item will reach complete capacity only in early 2025, CEO ? José Almeida stated in an earnings call. This might partially impact first-quarter 2025 financials as the 1-liter IV bags constitute practically half of the IV production at the North Carolina center, Almeida stated. Baxter approximates the hurricane-related influence on fourth-quarter 2024 sales to be about $200 million and anticipates a. hit of between 15 cents and 20 cents per share to adjusted. earnings. The medical products maker also cut its adjusted earnings. forecast for 2024 to between $2.90 and $2.94 per share, from. $ 2.93 to $3.01 per share previously. The projection cut was largely anticipated, although the. magnitude was a bit greater than what we thought, according to. Evercore expert Vijay Kumar. Baxter reaffirmed its adjusted operating margin forecast. of about 16.5% and operational sales development of between 4% and 5%. in 2025 regardless of the effect from the hurricane. On an adjusted basis, the business made 80 cents per share. in the 3rd quarter, compared with an expectation of 78 cents. per share, according to estimates compiled by LSEG.
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Multilateral development banks are stepping into environment breach- EBRD President
Multilateral development banks are putting far more focus on investments to take on environment change, the president of the European Bank for Restoration and Development stated today, amidst worries about U.S. environment policy under a Trump administration. MDBs are truly stepping up the number and the action in their level of financial investment in the green sector, Odile Renaud-Basso told Reuters late on Tuesday as voting in the U.S. was underway. President-elect Donald Trump has called environment change a. hoax and said he prepares to withdraw the U.S. from the landmark. 2015 Paris climate agreement. Renaud-Basso will sign up with policy makers from around the world. next week in Azerbaijan for the UN Environment Conference COP29,. with Europe and China under pressure to lead global. development on curbing planetary warming. She said the EBRD prepared to deliver billions of dollars to. help poor nations spend for the impacts of environment change. In 2023, the EBRD made $7.5 billion of environment finance. dedications, bring in $26.7 billion of economic sector. investment, information shows. The International Energy Firm. quotes that an overall of $2 trillion in global financial investment in. clean energy and infrastructure will be made this year. The EBRD has helped host Azerbaijan green its energy sector. and likewise approved two solar tasks anticipated to produce a. combined total of 750 megawatts of energy at $666 million. Trump has actually likewise vowed to raise tariffs on goods from China,. the EU and elsewhere, raising fears of a cycle of tit-for-tat. trade procedures around the world Renaud-Basso stated an increase in trade tariffs would strike. development in emerging markets. An increase of stress, a ... trade war with procedures and. countermeasures worldwide, will never ever benefit the world, for. the development of the economy and for our region, which is dependent. on the dynamic of growth in the EU or in China, she said. The effect will be rather crucial. The multilateral loan provider, which operates in emerging Europe,. central Asia, the Middle East and Africa, currently revised its. local growth anticipated lower for a second straight time in. October. Inquired about Turkey's pivot to a more orthodox monetary and. fiscal policy because June in 2015, Renaud-Basso said it was. important policy makers stay with their reform course. Ankara has reduced financial imbalances with sharp main. bank rate hikes and tax walkings among other fiscal steps. You can discuss the course and the balance between monetary. and fiscal policy, and whether fiscal policy ought to be tighter,. she said. But what is in my view very crucial is the. steadiness and the truth that they keep track.
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Brazilian companies promote U.S. plants, leaning into Trump trade wars
2 of Brazil's. most significant commercial firms, steelmaker Gerdau and. plastics manufacturer Braskem, are currently promoting their. substantial U.S. operations as a hedge versus the danger of. protectionism from Presidentelect Donald Trump. Trump has actually floated the idea of a 10% or greater tariff on all. goods imported into the United States, a relocation he states would. eliminate the trade deficit, while threatening a 200% tariff on. some imported cars, especially from Mexico. On calls with financiers today, Gerdau and Braskem were. quick to point out that a large chunk of their services are. located in the United States, positioning them to actually enhance. earnings if those policies take effect. Gerdau's Chief Financial Officer Rafael Japur told an. incomes call that Trump's steps are anticipated to be positive. for U.S. steel demand, helping its steelmaking plants there. The Brazilian steelmaker, which runs 11 long and unique. steel production units in the U.S. and Canada, also promoted the. benefits of a stronger dollar for its Brazilian operations,. where it would take on more costly imports. Gerdau shares leapt in Sao Paulo on the U.S. election. outcomes, surpassing peers with more direct exposure to the Brazilian. market such as Usiminas and CSN. Following Trump's success, we see Gerdau as a key. beneficiary in the area, experts at BTG Pactual stated in a. note to clients, including that the Republican politician's trade policy could. imply a stronger-for-longer pricing environment. Trump's protectionist method and concentrate on bolstering U.S. industry would even more suppress direct and indirect steel imports,. the analysts stated, keeping in mind that potential business tax cuts. might likewise support Gerdau's financial efficiency. Petrochemical producer Braskem, which is owned by state-run. oil giant Petrobras and engineering group Novonor as. significant shareholders, might likewise gain from Trump's policies. Braskem CFO Pedro de Freitas told reporters on Thursday that. it was a crucial domestic provider of polypropylene to the U.S. automotive market, which stands to gain from Trump's. protectionism. Braskem has five polypropylene plants in U.S. states from. Pennsylvania and West Virginia to Texas - all of which threw. their support to Trump in his election win against Democratic. Vice President Kamala Harris this week. The U.S. represent 15% to 20% of Braskem's core profits,. Freitas stated. Both Braskem and Gerdau likewise urged Brazil to lean into what. might be a brand-new trade war, imposing tariffs to secure the. Brazilian market in the face of U.S. protectionism. Brazilian steelmakers have long prompted the federal government to. impose taxes to fight what they consider disposing practices. from Chinese suppliers who have flooded the market with cheap. items. Last month, Brazil's government responded with approximately. 25% import tariffs. Gerdau CEO Gustavo Werneck said those tariffs should increase to. a minimum of 35% as steel that was being offered to the U.S. may now. be directed to other areas, consisting of Brazil. China has. managed to offer steel to Brazil even with the 25% levy, he stated. Braskem's Freitas had a comparable view. If the U.S. is more closed, those who were selling there. will sell in other places - and products will concern Brazil, he. stated. New tariffs in Brazil must use Braskem some short-term. aid, experts say, pointing to the increase in the import tax. for polyethylene, polypropylene and PVC from 12.6% to 20%.
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Vulcan pushes back massive production date for German lithium plant to 2027
Start-up Vulcan Energy will start largescale commercial production of lithium hydroxide in Germany in 2027, two years later than originally prepared, the business said on Friday as it started operations at a demonstration plant. Vulcan began producing lithium chloride, an important element in producing lithium hydroxide, at its upstream extraction plant in Landau, Germany, in April. It is currently raising funds for its first massive industrial plant with an objective of providing an anticipated 24,000 lots of lithium hydroxide a year, comparable to 500,000 electrical lorries, from 2027. The funding procedure has actually taken longer than anticipated, Christian Freitag, the Vulcan CEO responsible for supply chain management, told Reuters. Vulcan's financial requirements now total up to 1.9 billion euros ($ 2.04 billion), consisting of funding expenses, with the required funds expected to be protected in the first quarter. The company will raise more than 600 million euros in equity from a handful of investors, Freitag stated, and the staying 1.3 billion euros through loans from banks, including the European development bank EIB, which has actually promised half a billion euros. Vulcan's production of the battery basic material will assist Germany cut dependence on lithium manufacturers China and South America. The energy it will use to extract lithium from salt water in underground reserves is concurrently produced CO2-free utilizing geothermal power plants. Lithium demand is forecast to rise later on this decade from development in lithium-ion batteries utilized in electrical lorries. Vulcan, which is noted both in Australia and Frankfurt, has already sold its first ten years of production through purchase deals with carmakers including Volkswagen, Stellantis and Renault. The company has already once delayed the start date for large-scale production at its plant by a year to 2026, mentioning supply chain hold-ups.
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Neste stops briefly Rotterdam refinery due to fire, reduces renewables guidance
Neste has briefly closed down its refinery in Rotterdam, the Netherlands due to a fire, it said on Friday, and lowered its fullyear guidance for eco-friendly products sales volumes. Shares in the Finnish business were down 4% at 1537 GMT. Neste stated in a declaration the fire at the refinery was snuffed out and no persons were injured in the occurrence. Based upon our initial evaluation, the Rotterdam refinery production will be down for numerous weeks affecting the sustainable diesel customer deliveries, the company stated. It stated it due to the temporary closure now saw sustainable products' overall sales volumes at around 3.7 million lots, versus previous guidance of 3.9 million. The business still anticipates the 2024 average equivalent sales margin for its sustainable items to be in between $360 and $480. per heap, it included. Neste's present 1.4 million ton capability for renewable. products in Rotterdam is the largest in Europe, according to the. business's site. Neste stated the incident had no impact on a continuous $2. billion expansion of the refinery.
ASIA COPPER WEEK-Copper TC/RCs benchmark next year seen at 15-year low, survey shows
Copper concentrate processing fees are expected to be set at a. 15yearlow in 2025 due to the fact that of increasing tightness in raw. material supply from mine disturbances and a growth in. smelting capability, a study of industry participants discovered.
As copper sector participants fulfilled for their yearly Shanghai. gathering next week, attention will be on negotiations between. international miners and smelters in China, the world's dominant. processor, to set the international standard for next year's costs.
Treatment and refining charges (TC/RCs), an essential source of. revenue for smelters, are paid by miners when they offer. concentrate, or semi-processed ore, to be improved into metal.
The charges tend to fall when ore supply declines and increase. when more concentrate is offered.
A Reuters poll of industry sources including smelters,. traders, miners, analysts and consultants revealed a wide range of. expectation for the TC/RC criteria, from the high teens to $50. a metric ton.
Amongst the 45 participants, 21 anticipated a variety of high. $ 20s to mid $30s a heap, while nine anticipated a variety in the high. teens to mid $20s, and 12 anticipated a range of high $20s to $40. The remainder offered a wide range of $20-$ 50 a heap.
The projections are well below 2024's $80 a ton standard. The. last time annual criteria TC/RCs were listed below $50 remained in 2010,. CRU data revealed.
TC/RC prices must decrease as more smelters come online. in the middle of less concentrate supply.
Analysts at consultancy Shanghai Metals Market (SMM) anticipate. the international copper concentrate deficit to broaden to 822,000 heaps. in 2025 from this year's 221,000 tons.
In China alone, smelting capability will reach 16 million tons. in 2025 and approach 17 million tons in 2027, from 14.26 million. tons at the end of last year, Ge Honglin, chairman of the China. Nonferrous Metals Market Association (CNIA), informed a conference. in late October.
All these smelters will need focuses, so they're. striking the market at probably the worst time, said expert. Edward Meir at broker Marex.
Extreme falls in TC/RCs in addition to a getting worse concentrate. lack have actually deteriorated smelters' margins, requiring some to start. maintenance or hold off production at new plants.
The weekly index of TC/RCs for the Chinese area market. published by Shanghai Metal Markets is at $10.45 a heap.
According to our price quote, if the criteria is set listed below. $ 40, many smelters will suffer loss, said Zhao Yongcheng,. principal expert at Criteria Minerals Intelligence.
Current accidents at smelters owned by China Daye Non-Ferrous. Metals Mining and Freeport Indonesia might imply the release of. some copper raw material to the market, providing smelters some. leverage over negotiations, analysts said.
A large range in expectations indicates settlements might extend. into December.
None of these smelters are going to accept numbers. around $10 or below, stated Meir.
However if you're a miner and you see TC/RCs trading at around. plus or minus $10, it's very hard for you to pay big numbers. next year ... Miners would require to pay up to make sure that they. have enough smelting capacity, he added.
Smelters will also most likely increase usage of scrap copper to. change concentrate feed, experts stated.
Beijing has actually allowed imports of more recycled copper and. established a new state-backed recycling company to help in reducing. dependence on primary raw materials.
But this is just going to be a short-lived solution. The. growth in secondary projects beyond China is significantly. likely to constrain the volume of scrap that China can import in. the next few years, said expert Jonathan Barnes at consultancy. Project Blue.
(source: Reuters)