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Sources say that France's EDF has appointed advisers to examine options for Italian Edison.
Two sources with knowledge of the matter said that EDF, a French utility, has chosen Intesa Sanpaolo IMI as its financial advisors to examine strategic options for Edison in Italy. State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors. Sources have said that EDF was considering a public offering, bringing in a financial sponsor, or selling a stake to Edison. One person stated that EDF would retain a majority shareholding in Edison in any deal. Sources have estimated that Edison's value could range between 8 billion and 12 billion euros. EDF, Lazard Intesa and Edison have declined to comment. Il Sole 24 Ore, a daily Italian newspaper, reported that Intesa was in the lead to become EDF’s advisor. Edison CEO Nicola Monti stated in September that the Italian group is ready to list at the Milan bourse if its parent company decides to move forward with this plan. Edison has already established the corporate structure and procedures required for its stock to be traded publicly. EDF retained Edison's shares in Milan when it took Edison private and acquired its full control in 2012. This is a special type of share that offers a higher dividend rate than ordinary shares, but does not grant holders the right to vote at shareholder meetings. Edison reported revenues of 15,4 billion euros, and a core income of 1.7 billion euro last year.
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Sources say that France's EDF has appointed advisers to examine options for Italian Edison.
Two sources with knowledge of the matter said that EDF, a French utility, has chosen Intesa Sanpaolo IMI as its financial advisors to examine strategic options for Edison in Italy. State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors. Sources have said that EDF was considering an IPO, bringing in a financial sponsor, or selling a stake to Edison. One person stated that EDF would retain a majority shareholding in Edison in any deal. Sources have estimated that Edison's value could range between 8 billion and 12 billion euros. EDF did not respond to a request for comment. Lazard Intesa and Edison refused to comment. Il Sole 24 Ore, a daily Italian newspaper, reported that Intesa was in the lead to become EDF’s advisor. Edison CEO Nicola Monti stated in September that the Italian group is ready to list at the Milan bourse if its parent company decides to move forward with this plan. Edison has already established the corporate structure and procedures required for its stock to be traded publicly. EDF retained Edison's shares in Milan when it took Edison private and acquired its full control in 2012. This is a special type of share that offers a higher dividend rate than ordinary shares, but does not grant holders the right to vote at shareholder meetings. Edison reported revenues of 15,4 billion euros, and a core income of 1.7 billion euro last year.
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Copper prices fall on stronger dollar and muted Chinese demand
The copper price fell on Tuesday due to a stronger dollar, and signs that demand for metals from China, the world's largest consumer, was muted. However, a decrease in stocks at the London Metal Exchange helped limit the losses. The benchmark LME three-month futures fell 0.4%, to $10.651.50 per metric ton at 1001 GMT. Traders are waiting for more updates on the U.S. and China trade talks ahead of a high-stakes summit between the leaders of the two world's largest economies scheduled to take place in South Korea next week. The market for copper used in construction and power was impacted by data that showed China's economy slowed down to its lowest level in a year in the third quarter. "While Beijing will likely introduce additional targeted assistance in the coming month, the message is clear. China is entering a more mature, slower phase of expansion. Analysts at Sucden Financial say that the old investment-driven business model is losing steam. Yangshan Copper Premium The price of copper, which reflects the demand for China's imports of copper, has fallen 38% in the last month, to $36 a ton. This is its lowest level since July. On Oct. 9, copper reached a 16-month peak at $11,000 due to multiple mine supply disruptions. The daily LME data showed that the available copper stocks at the LME registered warehouses dropped to 127.350 tons. This was the lowest level since July after 2,000 new cancellations in South Korea. The 21-day moving average at $10,529 per ton is the closest support for copper on the technical front. Aluminium, among other LME metals rose by 0.2%, to $2,781.50 per ton. The Globe and Mail reported that a U.S. Canada trade agreement on aluminum, steel and energy may be ready to approve at the South Korea summit this month. Zinc rose 0.9% to $3.003.50. Lead increased 0.2% at $1.992.50. Tin remained unchanged at $35,300. Nickel fell 0.2%, to $15,190. (Reporting and editing by Emelia Matarise; Additional reporting by Dylan Duan)
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Sources say that Anugrah Neo Energy Materials, Indonesia, plans to IPO for over $300 million.
Two people who have direct knowledge of this matter say that Anugrah Neo Energy Materials, a nickel mining and processing firm in Indonesia, plans to make an initial public offer on the Indonesia Stock Exchange. The company hopes to raise $300 million. Sources declined to identify themselves as this information is not public. According to sources, Anugrah Neo Energy Materials could be valued at more than 2 billion dollars. Proceeds will also be used for expansion. They added that DBS and RHB are among the banks involved in the IPO. Anugrah Neo Energy Materials didn't immediately respond to an inquiry for comment Tuesday. DBS declined comment. RHB stated that it is not in a position at this time to comment. Anugrah Neo Energy Materials, according to its site, operates two nickel-laterite mines in Central Sulawesi. TAS, located in Morowali, holds over 200 million tonnes in resources. MDK, located in Ampana, spans over 10,800 hectares (41,7 square miles). According to its website, the company is developing two industrial estates and a high-pressure acid-leach plant that produces mixed hydroxide, a precursor used in electric vehicle batteries. Indonesia, as the world's leading nickel producer, with a production of more than 50%, is driving investments in battery materials and EV supply chain. Indonesia is the largest economy in Southeast Asia.
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Globe and Mail reports that a US-Canada trade agreement may be approved at the APEC Summit.
The Globe and Mail reported that a U.S.-Canada deal on energy, steel and aluminium could be ready to be signed by U.S. president Donald Trump and Canadian Prime Minister Mark Carney at the Asia-Pacific Economic Cooperation Summit later this month in South Korea. The Toronto daily could not confirm the story immediately. Carney, the White House and the U.S. Commerce Department did not respond to any requests for comments outside of regular business hours. Reports added that the U.S. is not willing to negotiate on softwood lumber or Canadian automobiles. Trump imposed tariffs against Canadian autos, steel and aluminium earlier this year. Canada responded in kind. The measures against aluminium and steel were lifted after negotiations. Sources told The Globe and Mail that Canada would likely have to accept steel quotas in exchange for lower U.S. Tariffs, but critical minerals were not on the table. Reports earlier this week indicated that Canada had offered to reduce tariffs on certain steel and aluminum products imported from both the U.S.A. and China in an effort to assist domestic businesses that were being battered on two fronts by a global trade war. Carney, who visited Washington in the first half of this month, said that he and Trump had a "meeting of minds" on the future of steel and aluminum.
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IFC and Appian Launch $1 Billion Critical Minerals Fund in Africa and Latin America
The International Finance Corporation and Appian Capital Advisor, a private equity firm, have announced a $1 billion fund for critical mineral projects in Africa and Latin America. The fund will be anchored by a $100 million initial commitment from IFC (a member of World Bank Group), and focus on Nickel, Copper, Cobalt, and Rare Earths. These are all vital for energy transition and digital technology. IFC has launched its first joint fund with a mining investor. This is a reflection of the growing interest among development finance institutions in attracting private capital to mining projects. Appian CEO Michael Scherb said that the IFC is trying to invest more capital in this sector, which is a difficult one. Appian had already worked on rare earth and gold projects in Africa with the IFC. This is a more formalised relationship." Appian will co-invest alongside existing and future funds, managing assets of around $5 billion. The fund will invest its first money in Atlantic Nickel’s Santa Rita Mine in Brazil. This open-pit nickel, copper, and cobalt mine will also be developed underground by the parties. It is expected to produce 35,000 metric tons nickel per year for 34-years. The fund aims to support sustainable industrialisation and supply chain resilience in developing economies as governments and companies rush to secure critical minerals. Scherb stated that the fund was also considering building an downstream refinery at its Santa Rita Mine in Brazil. Scherb stated that Appian which produces graphite is already a downstream refiner of graphite, in the United States. The U.S. Department of Energy has recently given $125 million to this facility. He said: "We have expertise upstream and downstream and you could see us working with governments more based on this basis."
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Saudi Arabia's earnings are weak and most Gulf markets follow Asian stock prices higher
On Tuesday morning, most Gulf stock markets were up, following the Asian benchmarks. This was due to a possible easing in U.S. China trade tensions. Saudi Arabia's index, however, fell because of disappointing corporate earnings. Dubai's main stock index rose by 0.3% with the top lender Emirates NBD advancing 1.9%. RBL announced on Saturday that ENBD would buy 60% of the Indian private lender RBL Bank, the largest acquisition of its kind in India's finance sector. The index in Abu Dhabi rose 0.3%. This was due to a 0.3% increase by investment company Multiply Group after the board of its parent company International Holding Company approved a plan for it to acquire 2PointZero, an investment platform, and food firm Ghitha Holding via a share exchange. Saudi Arabia's benchmark stock index fell 0.6% due to a 9.6% drop in Yamama Cement Company after a 63% fall in profit for the third quarter. The stock of the company is set to experience its biggest intraday drop since May 2020. Al Rajhi Bank, the largest sharia compliant lender, fell by 0.5%, despite recording a solid third-quarter result, even though its quarter-onquarter profit growth was only in the single-digits. Oil prices, which are a major component of Gulf economies, fell for the second day, as fears about the supply and the risks to demand resulting from the trade conflict between the U.S., and China - the two largest oil consumers in the world - weighed heavily on the markets. The Qatari Index was up by 0.2% and Qatar Islamic Bank gained 0.8%. (Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)
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Shanghai copper gains pared back on caution before Sino-US trade talks
Shanghai copper lost its early gains on Monday, as traders awaited the upcoming U.S. China trade talks. China's slowing economic growth also stoked the market. After a session that saw a rise of up to 0.63%, the most active contract on Shanghai Futures Exchange ended daytime trading at just 85,380 yuan per metric tonne. As of 0722 GMT, the benchmark three-month futures on the London Metal Exchange fell 0.45%, to $10,643 per ton. Traders were looking for updates on the U.S. and China trade talks ahead of a high-stakes meeting between the leaders of the two world's largest economies next week in South Korea. Data shows China's Economic growth The third quarter saw a slowdown to an all-time low, and deflationary pressure continued. The previous gain was due to the return of copper bulls prices in the latest effort by U.S. president Donald Trump to reduce trade tensions. Trump said on Monday that China has no intention of invading Taiwan. He also acknowledged he would raise the matter at the meeting he plans to have with his Chinese counterpart Xi Jinping. Trump said he also expects a fair deal to be reached with Xi. The remarks were made during a meeting between the Australian Prime Minister Anthony Albanese and President Obama, at which they signed an important minerals agreement in order to counter China’s dominance of global supply. The U.S. Treasury secretary Scott Bessent will meet with China's vice premier He Lifeng in Malaysia to try and avoid an escalation of U.S. duties on Chinese products. Aluminium gained 0.19% among other SHFE base materials, while zinc rose 0.39%. Nickel increased 0.36%. Lead was up 0.35%. Tin posted a 0.69% gain. The LME metals index showed that aluminium fell 0.32%. Tin dropped 0.15%. Zinc increased 0.27%. Lead added 0.25%. Nickel was little changed. $1 = 7.1230 Chinese Yuan Renminbi (Reporting and editing by Harikrishnan Nair, Eileng Soreng and Lewis Jackson)
Despite tariffs, some European companies are hesitant to expand in the US
The erratic tariff policy of U.S. president Donald Trump is making some European smaller companies question whether it's worth expanding into the U.S. Trump wants to encourage foreign companies to invest in the United States by imposing levies on steel, cognac, cars, and sandals. This will create new factories, and thousands of American jobs. The auto and pharmaceutical sectors have been quick to announce or consider expansions. However, some smaller companies are hesitant about committing.
EuroGroup Laminations, an Italian company, pays no import duties on the rotors, stators, and other components it provides to U.S. automakers, such as Ford and GM. These products are produced in Mexico and comply with current import regulations.
Marco Arduini, CEO of the company, said that even if the company had to move production to the U.S., it would be subject to tariffs on the type of steel it uses for its automotive parts.
He said that avoiding potential U.S. Tariffs would not compensate for the extra costs or low availability of steel. U.S. Labour costs are also a concern, as they can be up to six-times higher in Mexico.
Due to the current situation, including the possibility that tariffs could trigger a U.S. economic recession, ebm papst, a German motor and fan manufacturer has halted plans to build a new U.S. plant or to expand an existing U.S. site.
Klaus Geissdoerfer, CEO of the company, said that if there were an economic downturn on American soil, it could affect demand in a different way.
Many economies are built on the strength of small and medium-sized businesses (SMEs), including Italy and Germany. Both countries are members of the European Union and major exporters into the United States.
They may be able to react more quickly to new trade risks than larger companies because they have less financial cushioning.
Marc Tenbieg is the head of DMB, the association representing Germany's SMEs.
DMB said in separate comments that a few SMEs are currently reviewing their U.S. business as a result Trump's policies.
Andrew Adair said that some member companies of the German engineering association VDMA have delayed purchases. He made this statement following a visit to the United States in early August.
He said, "The industry appears to be on hold at the moment." Trump announced a series broad tariffs on goods from other countries imported into the United States on April 2. The tariffs included a 20% on EU imports, which was then lowered to 10% as part of what Trump called a "90-day pause" following the selloff in U.S. stocks.
Trump's statements that other countries "screwed" the U.S. over the years, reflecting his anger at U.S. Trade Deficits including one of 235.6 billion dollars with the 27-nation EU, have also raised the temperature in the diplomatic and political arena.
LAPP in Germany, which produces everything from wires and cables to robotics for factory, has maintained its plans to double the production capacity at their New Jersey site by 2025.
Matthias Lapp, CEO of Lapp & Co., said: "As a business family, we plan on the long-term, not just for elections."
Tariffs have the potential to affect demand and inflation in the United States.
RBC Capital estimates that imports account for 10% of U.S. consumer spending and that "it will be relatively difficult for consumers" to switch away from imported products.
The consultancy AlixPartners believes that the average U.S. household's discretionary spending in a post tariff world will drop by more than 10 percent to $27,000 and recommends companies adopt a pause-and-monitor approach.
Eurostat data show that in each of the three previous years, the EU exported an average of more than 500 billion euro of goods to the U.S. These were mostly pharmaceuticals and vehicles, but also machinery. Trump's primary targets are the steel, auto and car part manufacturers in the EU.
The U.S. is still the EU's largest trading partner. However, the new tariffs have sparked some political resistance against greater exposure. French President Emmanuel Macron has asked European firms to temporarily suspend their planned investments.
Industry groups urge European companies to instead focus on other foreign markets, such as India and Latin America.
Sebastian Zank is the head of Scope's corporates rating production. He said, "We have seen how quickly things can change."
Everyone will remain seated until the picture that emerges can be described as "sustainable."
(source: Reuters)