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The role of billionaire Caltagirone in the Italian banking M&A boom
A surge in M&A has led to the emergence of Francesco Gaetano Caltagirone as a key player in a reshaping in Italy's financial industry. BATTLES GENERALI & MEDIOBANCA Caltagirone expanded his financial investments in Italy last year, becoming a major shareholder in the bailed out bank Monte dei Paschi di Siena and fund manager Anima Holding. Since 2021, he has become the second largest shareholder of the Milanese bank. The bank in Milan is now the second largest investor. Mediobanca, the largest shareholder in Generali, has had disagreements with Caltagirone over the leadership of the insurer in the past. Caltagirone, Leonardo Del Vecchio and the late Ray Ban billionaire Leonardo Del Vecchio failed to remove Generali CEO Philippe Donnet in 2022. Donnet's term of three years expires on May. The conservative government of Prime Minister Giorgia Mello has approved changes to corporate governance championed and criticized by Caltagirone. These changes make it difficult for the outgoing board of a company to suggest a successor. Generali's board has stated that it will not nominate any candidates, including a candidate for CEO, when Generali retires due to the new rules. Donnet has agreed to serve another term as CEO. WHAT IS CALTAGIRONE'S ROLE IN ITALIAN BANKING CONSOLIDATION? Caltagirone is a conservative Italian government ally who has long said that it wanted to re-privatise MPS bailed out to help create a large third banking player. The surprise offer of 13.3 billion euros for Mediobanca was rejected on Jan. 24. Treasury had been promoting the merger of MPS and Banco BPM for some time, but an aggressive buyout bid by UniCredit for BPM derailed this plan. BPM bought a 5% share in MPS prior to UniCredit's move, which raised the possibility of a future tie-up. Caltagirone's network of shares seemed to indicate that he would play a part in this tie-up. Caltagirone's network of shareholdings was expected to play a role in that tie-up. Caltagirone's expected support of MPS's bid to acquire Mediobanca could help UniCredit in its pursuit of BPM, as it removes BPM's potential defence. Caltagirone, in December, named two representatives on the MPS Board. One of them was his son Alessandro. Who is CALTAGIRONE and what does it do? Caltagirone is an Italian entrepreneur who has interests in the construction industry, cement, real estate, publishing, and finance. He was born 1943 in Rome to a Sicilian family. Caltagirone, according to Forbes 2024's wealth ranking is Italy's 10th wealthiest person with a wealth estimated at 5.6 billion euro. He is the owner of several regional newspapers and Rome's daily Il Messaggero. Il Messaggero is Italy's eighth largest newspaper in terms of circulation. It supports Meloni's administration. Caltagirone, despite his wealth and power, keeps a low profile and gives few media interviews. In the beginning, he revived his father's construction business with his two brothers and cousin. In the 1980s, he expanded his business by acquiring the cement and infrastructure company Vianini Group. Cementir, his Milan-listed company, employs 3,000 people in 18 different countries. According to its website, it is the biggest cement producer in Denmark and the third largest in Belgium. It also ranks among the top international grey cement operators of Turkey. Caltagirone is survived by three children who are all active in his business, but there is no successor. (Reporting and editing by Kirby Donovan, Jane Merrill and Gianluca Smeraro)
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China's imports of iron ore, coal and other minerals fell in January but prices varied: Russell
China's iron ore imports and seaborne coal arrivals are expected to be soft in the first quarter, with January arrivals falling to multi-month lows. The price trend for two of the most important bulk commodities is divergent. Iron ore has held steady, while thermal coal has fallen to its lowest level in almost four years. According to Kpler, commodity analysts, China is the largest iron ore purchaser in the world. It will import 99.5 millions metric tons of this key raw material for steel in January. This would be a drop from the official December customs figure, which was 112.5 million tonnes. It would also be the lowest total monthly since June's 97.5 million. Due to the Lunar New Year holiday, which fell this year at the end and beginning of January, there is caution in regards to iron ore imports for the month of January. Some cargoes may be pushed into February due to the Lunar New Year holidays, which this year fell at the end of January and early in February. Kpler estimates that China imported 27.97 millions tons of coal in January. This is a 26% decrease from the 37.59 metric tons imported in December. The data shows that coal imports in December totaled 52,35 million tonnes. This includes arrivals by land from countries like Mongolia and Russia. In the past, coal imports have tended to decline in January and in February after the peak winter demand has passed. However, the drop in coal imports in January of this year compared to December is much greater than the 9% in January 2024 or the 10.9% in January 2023. China, which is the largest coal producer, consumer, and importer in the world, may require less coal from the seaborne markets as the domestic supply increases. According to data released by the government on January 17, December coal production reached 439 million tonnes, an increase of 4.2% over the same period a year ago. The annual output increased 1.3%, reaching 4.76 billion tones. SteelHome, a consulting firm that assesses thermal coal in Qinhuangdao, has assessed the impact of this robust increase on domestic coal prices. The price of a ton was 765 yuan (106 dollars) this week. This is down 12.6% from its 2024 peak of 875 yuan, reached in September 2024, and it's the lowest since April 2021. As a result, the price of coal in China is falling. This has spilled over to other countries' exports. Argus, a commodity reporting agency, assessed Indonesian coal at $48.76 per ton during the week ending Jan. 24. This was the lowest price since April 2021. It also represented a 16.2% drop from the peak of $58.17 reached in March 2024. Australian coal with a 5,500-kcal/kg energy content, which is popular among Chinese buyers, cost $80.12 per ton during the week ending Jan. 24. This was down 17.1% compared to its March 2024 peak of $96.66 and the lowest price since July 2021. RESILIENT IRON ORE Iron ore prices follow a different trend. While coal prices reflect China's domestic dynamics, they are slightly off. The price of futures on the Singapore Exchange has been stable over the past few weeks despite the expected decline in imports in January. The contract closed at $101.55 per ton on January 6, up 4.4% since the low of $97.31. Since October, the price has remained above $100 per ton. The exception was a five-day trading period earlier in January. Iron ore prices reflect that China's imports of iron ore have remained stable in recent months, despite a small drop in steel production in 2024. Iron ore, unlike coal, may be supported by sentiment. Some market participants are optimistic that Beijing’s stimulus efforts in 2025 will be rewarded with a stabilised property sector, and an increase in consumer demand for manufactured products. Iron ore prices have also been able to withstand the threat of a potential trade war from the Trump administration, which has threatened to impose tariffs up 60% on Chinese imports. These are the views of a columnist, who is also an author.
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Uganda confirms Ebola outbreak in capital Kampala with one death
The health ministry announced on Thursday that Uganda has confirmed a new outbreak of Ebola in Kampala. It was confirmed on Wednesday that the first confirmed case died from the disease. After developing symptoms similar to fever, the patient, an nurse working at Mulago Referral Hospital in the capital city, sought treatment from various hospitals, including Mulago. The patient died of the disease at Mulago National Referral Hospital, Mulago on 29 January. The ministry stated that post-mortem samples had confirmed Sudan Ebola Virus Disease. Contact with bodily fluids or tissue infected by the hemorrhagic virus can cause it. Headache, nausea, bleeding, and muscle pain are all symptoms. Uganda declared the outbreak over on January 11, 2023, after nearly four months of fighting to contain it. Six health workers were among the 55 people who died in the last outbreak. (Reporting and writing by Elias Biryabarema, Editing by Bate Felice)
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Los Angeles has a moonshot opportunity to rebuild after fires
Los Angeles is recovering from the devastating wildfires. Environmental engineers, urban planners, and experts in natural disasters are all casting visions for what might come next. Where parking lots and strip malls once existed, apartment buildings could be built, and locals would walk to shops, offices, and cafes on the ground floor, European-style. It would be better to "infill" the city vertically with affordable housing in safe downtown areas rather than spreading outwards and adding more single-family houses on fire-prone hillside. Some blocks could become buffer zones where building is prohibited. The city's palm trees that burn like Roman Candles could be replaced by native fire-resistant trees. Here are some bold ideas that academics have to help Los Angeles recover from the Eaton & Palisades Fires. These fires killed 28 people, damaged or destroyed 16,000 buildings and caused significant damage. The blazes combined charred an area of 59 square miles (152 square kilometers), which is larger than Paris. Many people are only just now allowed to return to their destroyed neighborhoods. Few of the dozen experts interviewed expected that their dream plans would be implemented when construction began. They cited factors such as lack of insurance coverage in the future and political pressures to rebuild like before. Experts in housing, urban development and climate change said Los Angeles still has the chance to think out of the box. There was also a consensus that there shouldn't be a rush to rebuild. Residents of Pacific Palisades, Altadena, and surrounding areas should have time to dream and decide on the future look of their communities. Emily Schlickman is an assistant professor of landscape design and environmental planning at the University of California Davis. She suggests moving away from areas that are prone to fire. MODEL CITIES Jeffrey Schlegelmilch, of Columbia University, suggested that Los Angeles could take a lesson from Kobe, Japan. The city was decimated in 1995 by an earthquake and officials there imposed a building moratorium for two months. "Giving yourself enough time to develop a solid solution is important," said Schlegelmilch. He's the director of the National Center for Disaster Preparedness, located at the climate school of the university. Houston's Harris County, Texas and San Antonio, Texas have both purchased homes and property to reduce the risk of future flooding. Harris County authorities demolished homes that were flooded by Hurricane Harvey and offered them pre-flood values to willing sellers. Char Miller, professor of environmental history and analysis at Pomona College, Claremont, California is one of those who point out Texas' experience. Miller stated that while purchasing properties in Pacific Palisades or Altadena could be expensive, they would be feasible with financial support from the city, the county, the state, and perhaps insurers. Miller envisions converting burned-out lots into fire buffer zones. Miller believes that while the move would disrupt residents, many would use the money for relocation. People say, "Yeah. I don't wanna be in danger. And you're buying my out." Miller replied, "Thank you. He is frustrated by the city's and state's efforts to speed up redevelopment of areas where similar density housing was burned. Miller continued, "They have just stopped the moonshot." Alice Hill, senior fellow at the Council on Foreign Relations for energy and environment, would like to see more green space, such as playing fields and bicycle paths, between areas with high fire risk and homes. In an essay published on Jan. 14, Hill said that it was "simply unsafe" to rebuild the communities in their original locations. Retreating could be the best approach. A LITTLE PANACHE Some experts recommend rebuilding communities in a manner that is resistant to fire. Michael Gollner is a professor of Mechanical Engineering at the University of California in Berkeley. Gollner tests the flame resistance of prototype homes. He said that homes can be made fire-resistant by moving the wooden fence five feet back (1.5 meters), encircling a home with gravel, and placing mesh over attic ventilation to stop embers. There is also landscaping, which can be a controversial topic for some homeowners. Who wants to cut their juniper down? "But if there is a wildfire your juniper will be a torch," Gollner said. Los Angeles ecologists recommend that residents replace palms, junipers, and eucalyptus trees with California oaks. These trees have evolved to survive fires. The species is characterized by thick bark which resists fires, and leathery leaves which burn slowly. Alexandra Syphard is a wildfire ecologist with the Conservation Biology Institute in San Diego. Hussam Mahmoud is a professor of civil and environmental engineering, at Colorado State University. He believes that the key to predicting future fires lies in predicting their path. He developed a model to calculate which buildings would burn. This allows a community, instead of adapting every home to resist wildfires, to harden the "super-spreader" structures. To harden a house, use metal or concrete as a roof material and fire retardant materials for the walls. The heat is less likely to cause the glass to crack and burn a house from the inside if you use multi-paned windows. Mahmoud said, "When the fires struck L.A. it was clear that no one knew what would happen. Which buildings were most likely to burn." Reporting by Andrew Hay and Brad Brooks, Colorado and New Mexico respectively; editing by Paul Thomasch and Sandra Maler
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Abu Dhabi wealth fund ADQ and Orion invest $1.2 billion in metals, mining
ADQ, the Abu Dhabi sovereign wealth fund, has formed a joint venture with Orion Resource Partners that will invest primarily in metals and minerals. The fund is expanding its portfolio of critical minerals. The fund announced that under the 50-50 joint venture, which will be located in Abu Dhabi's capital city, ADQ will invest an initial $1.2 billion in four years into mining companies in Africa, Asia, and Latin America. The partners will invest in different asset classes including equity, senior loans and production-linked instruments such as royalties. ADQ was established in 2018 and has a wide range of assets including energy, healthcare as well as transportation and logistics, such as the Abu Dhabi state airline Etihad Airways. At the end of June, the fund managed $225 billion worth of assets. It has invested in sectors which could assist oil-rich Abu Dhabi in accelerating economic diversification plans to reduce reliance on oil revenue. ADQ stated that "downstream sectors like manufacturing and clean energy will directly benefit" from the sourcing critical raw materials through the JV. The Australian infrastructure investor Plenary Group will also be part of this cluster. Philip Clegg will lead the new office, having previously served as Orion’s managing partner. (Reporting by Federico Maccioni. (Editing by Jason Neely, Mark Potter and Mark Potter.
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Market awaits details on tariffs, which could lead to a rise in copper and aluminium prices
Investors awaited the outcome of President Donald Trump's threat to implement tariffs on this weekend. By 1030 GMT, the London Metal Exchange's (LME) three-month copper was up by 0.5% to $9,114 per metric ton, while aluminium gained 0.3% to $2 628. Since hitting a peak of $10158 in September last year, LME copper is down 10%. Nitesh Sha, commodity strategist at WisdomTree, said: "The problem is that all base metals are in a waiting mode to see what happens with tariffs." It's difficult to hear anything else above the noise that's being created by the stock market right now. Trump's spokesperson said on Tuesday that he was still planning to fulfill his promise on Saturday to slap tariffs on Canada and Mexico, as well as China, which is the largest metals consumer in the world. Citi stated in a report that "we continue to expect LME flat metal prices to weaken in response to confirmations of larger tariffs." Investors are trying to factor in the impact of the tariffs. U.S. Comex Copper Futures increased 0.6% to $4.307 a lb, or $9,495 per ton. This is a $381 premium over the LME. The metals market has been helped by a slightly lower dollar index. It had risen on Wednesday, after Federal Reserve Chairman Jerome Powell stated that there was no rush to reduce rates again. The dollar is weaker, making commodities priced in U.S. dollars less expensive for buyers of other currencies. After a 1.8% increase on Wednesday, the price of aluminium paused in response to the news that the European Union had proposed a ban on imports from Russia as part of retaliatory sanctions for its invasion of Ukraine. There is uncertainty, because Hungary could vote against it. Shah added that this is another worry hovering over aluminium markets. Lead increased 0.3%, while nickel fell 0.5%. Tin was up 0.3%, at $30,185. The Shanghai Futures Exchange will be closed during the Lunar New Year holidays. Reporting by Eric Onstad, Additional reporting by Anushree Mukerjee in Bengaluru. Editing by Tomasz Janovowski
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Nigeria union rejects telecom tariff hike, plans nationwide protest
The main Nigerian labour union rejected a government-approved increase of 50% in telecommunications rates and announced plans to protest nationwide on February 4. Last week, the telecoms regulator approved an increase in mobile rates, the first in over a decade. This was in response to the pressure of operators who are struggling with rising costs due to high inflation and currency devaluation. At a late-night meeting of the Nigeria Labour Congress, (NLC), union leaders referred to the rise as "insensitive, unfair, and an assault on the citizens" who are already dealing with the worst crisis in cost-of living for a generation, caused by the reforms implemented by President Bola. In a press release, NLC President Joe Ajaero cited high food prices and increases in petrol and electricity costs as examples of the dangers that come with imposing an unfair price increase on a population already struggling. The union called for a dialogue with the government, regulators and union leaders to discuss the suspension of tariff adjustments. Ajaero has threatened to boycott telecommunications and even strike if the authorities refuse to engage in dialogue. The NLC represents millions of workers and has clashed repeatedly with the government about economic reforms. Officials argue that the measures are needed to stabilize the economy. (Reporting and writing by Camillus Eboh, Editing by Kirsten Doovan).
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Gold as a safe-haven amid Trump tariff fears
Gold prices in safe-havens rose on Thursday, as investors worried over potential import tariffs by U.S. president Donald Trump. Investors also awaited an important inflation report to gauge Federal Reserve policy. As of 1020 GMT, spot gold was up 0.7% to $2,776.79 an ounce. U.S. Gold Futures rose 0.8% to $2791.70. Rhona O’Connell, StoneX analyst, said: "Despite the fact gold tariffs in the States is extremely unlikely as it is a valuable reserve asset for risk managers to take a chance and move metal into the States." The exchange of physical for futures (EFP) is the element most affected, but it contributes to spot support. Two sources with knowledge of the situation said that London bullion players are racing to borrow from central banks which store gold in London. This is due to a spike in gold deliveries into the U.S. Even though Trump didn't mention gold in tariff plans, traders worried about possible risks led to more gold being shipped to New York. The White House announced earlier this week that Trump planned to impose steep tariffs against Mexico and Canada on Saturday, while also weighing some for China. The Fed also held rates constant on Wednesday. Chair Jerome Powell stated that there was no hurry to reduce rates again. Investors are now awaiting the U.S. Personal Consumption Expenditures (PCE) Price Index report for December on Friday. Spot silver rose 0.8% to $31.05 an ounce. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that silver has seen a renewed strength in relation to gold, after the ratio gold-silver was once again rejected at 91. The market is pricing a higher level of risk for silver import tariffs than gold." Palladium rose 1.8%, to $979.45. Platinum increased 1.1% to 956.79. (Reporting by Anjana Anil in Bengaluru; Editing by Shreya Biswas)
Banorte, a Mexican bank, sees a smaller loan growth and tighter spending by 2025
The Mexican lender Banorte is expecting its loan book growth to slow this year, as it tightens up costs. This comes after a challenging 2024.
Banorte executives told analysts that macroeconomic challenges and uncertainties associated with the new U.S. administration of President Donald Trump could cause the operating environment to be rocky.
Banorte anticipates that its loan book will grow between 8% and 11% in 2019, down from 14% growth seen in the year 2024.
CFO Rafael Arana said later that the lender was only able to commit to the lower-to-mid-range of its guidance. However, corporate and government lending could increase toward the end the year.
Arana said that the consumer loan book is showing signs of resilience, and that a pickup in volume may also be possible.
Arana explained that when she said challenging, it was not a negative word. "Challenging is executing and I believe we are very good at that."
The company's shares were down by more than 1% at mid-morning.
Banorte expects to reduce its expenditures in 2025 as well, after the recurring expenses growth in 2018 exceeded expectations. As it did last year, the firm expects recurring expenses to increase between 6% and 7% this year. Last year, it was 7.4%.
Arana stated that "there will be a reduction in the expenditure line by 2025". (Reporting and editing by Kyry Madry, Sarah Morland).
(source: Reuters)