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TSX gains as energy shares rise
Canada's benchmark index climbed on Wednesday, helped by energy stocks, after it crossed the 30,000 point threshold for the second consecutive day. Toronto's S&P/TSX Composite Index, which is heavily influenced by commodities, rose 0.3% to 29.912,19 points at 10:20 a.m. ET (1420 GMT). The S&P/TSX Smallcap Index rose by 1.1% following reports that the Trump Administration is looking to acquire an equity stake as high as 10% in Lithium Americas. This boosted the Canadian company’s shares by 88%. Its U.S.-listed shares jumped 85%. J.P. Morgan analysts wrote in a report that it was unclear whether or how the DOE loan would be renegotiated, and if any legal implications will result. It's hard to estimate the fair value of a 10% stake in a government company, especially when there are still unanswered issues such as how revised offtake agreements could be structured. Vermilion Energy, a company that specializes in energy stocks, grew 4.7%. Energy stocks led the sector with a 2.3% increase. First Quantum Resources and Teck Resources both saw their materials stocks rise by 6% and 5.5% respectively. Hudbay Minerals, which has seen its shares rise 6.7% after announcing that the temporary closure of its Peru mill will not affect their ability to meet production and cost ranges for 2025, said it would not be affected by this. The technology shares recovered after a dip during the previous session. Open Text Corp. and Constellation Software both rose by 4.6% and 3.3% respectively. BlackBerry also gained a little ahead of its quarterly results. According to a recent estimate, Canada's factory sale likely fell 1.5% in August as a result of lower sales in the transportation equipment and food products subsectors. Mark Carney, the Prime Minister of Canada, said that he held "constructive" talks on trade with Premier Li Qiang in China as both countries sought to resolve trade disputes. Carney also said that trade negotiations were still ongoing with the U.S., and the remaining issues would be addressed in a review of the U.S. Mexico-Canada Trade Agreement. (Reporting and editing by Twesha Dhikshit)
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Saudi stocks jump the most in five years after a report of an easing of foreign ownership restrictions
Saudi Arabian stocks rose the most on Wednesday since 2020, after a report that suggested the regulator of markets may relax rules limiting foreign ownership in listed companies. Bloomberg News reported on a possible easing of the cap on foreign ownership in listed companies. This could revive interest in the Arab World's largest stock exchange. In a report, CMA board member Abdulaziz Abdulmohsen Bin Hassan said that the law could be implemented before the end the year. According to UBS's projections, the move could result in an additional passive inflow of $9.5 billion to $10 billion from MSCI and FTSE trackers if it is implemented at 100%. Victor Martin, UBS's head for portfolio trading, EMEA, explained that the move would bring an extra $9.5 billion to $10 billion to Saudi Arabia. Saudi Arabia's benchmark index has fallen 9.6% this year. This is a significant underperformance compared to other regional markets, such as Dubai or Kuwait, which have seen gains of 13.8% and 20.0%, respectively. The lower oil prices are largely responsible for the decline. Saudi Aramco, one of the largest blue-chip stocks in the kingdom, has struggled to maintain gains since 2025. Mohammed Ali Yasin is the CEO of Ghaf Benefits at Lunate. He said: "We know that despite the 49% foreign ownership cap, foreigners never own more than 15% of the company on average." He said that the rally on Wednesday reflects the expectation that an easing in rules will increase the weighting of Saudi public companies within the larger MSCI and FTSE indices, thereby increasing foreign investment into these shares. Tariq Qaqish said, "This will also increase liquidity and depth on the Saudi market. It will also tighten spreads between bid and ask and expand participation by institutions." Tariq is deputy CEO at FH Capital Abu Dhabi. Saudi Arabia is trying to attract foreign investors by establishing exchange traded funds with Asian partners, including Japan and Hong Kong. In January, the regulators also allowed foreigners to purchase listed companies that own real estate in Mecca or Medina without changing restrictions regarding direct land ownership. Yasin said that the fall in Dubai and Abu Dhabi stocks of more than 1 percent on Wednesday could be a response to possible Saudi regulatory changes. Federico Maccioni, Hadeel al Sayegh and Kirby Donovan edited the report.
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Former Russian agriculture official blames weather and high fuel prices for slow sowing
A former senior agriculture official said that the high cost of diesel and the dry weather had slowed Russia’s winter wheat planting campaign. Only half of all fields have been seeded so far, and time is running out. Russia is the top exporter of wheat in the world, but its agriculture sector has been hit by bad weather this year, as well as high interest rates, increasing export taxes, and high fuel and fertiliser costs. Interfax quoted Pyotr Chekmaryov as saying, "The soil is hard like stone and there's been no rain. Many are unlikely to plant." Chekmaryov stated that diesel, in particular, is now priced at around 80,000 rubles per ton. Even then, it is very difficult to purchase. The domestic wholesale price of gasoline and diesel has increased in Russia by about 40% this year due to a decline in production caused by the constant drone attacks on Russian refineries by Ukrainians. Chekmaryov stated that only 7.5 millions hectares of the 17 million allotted for winter wheat had been seeded. He stated that three major grain producing regions, Centre and Volga in particular, where the optimal sowing period has ended, have seeded winter wheat on 0.7 million hectares fewer than last year. Chekmaryov is quoted as saying, "Next year's crop farming has so far not been good for us." Reporting by Gleb Brynski, Editing by Peter Graff
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Local media report the death of Chinese architect Kongjian Yu in a plane crash in Brazil
Local media reported that the Chinese architect Kongjian Yu was killed in a plane accident late Tuesday night in the vast Brazilian marshes of Mato Grosso do Sul, citing both police and firefighters. Brazilian media reported that Yu, along with three others, including a pilot and two local film makers, died when their aircraft crashed near Aquidauana in the Pantanal Wetlands. Firefighters confirmed that a plane crashed in the area, but they did not identify the victims. They said the four men aboard were killed instantly. Yu's work was featured on the opening program for the Sao Paolo International Architecture Biennale. Newspaper Estadao said that he later joined a film crew to shoot a documentary on his work. Yu, aged 62, became a global architect and urban planner when the Chinese government adopted "sponge city" concept, which uses nature-based solutions for absorbing and retaining water, instead of concrete infrastructure that channels it away. Since then, the concept has been adopted by hundreds of cities in China and other urban areas in countries ranging from the U.S.A. to Russia. Turenscape is a Beijing design firm founded by Yu in 1998, which specializes in landscape architectural, urban planning and ecological restoration. A request for a comment made outside of normal working hours was not immediately responded to. Yu, Turenscape's principal designer since its inception, has grown the company into a team with more than 500 experts, according to Turenscape's website. (Reporting from Fernando Cardoso, Sao Paulo. Additional reporting by Eduardo Baptista, Beijing. Editing by Gabriel Araujo Brad Haynes Hugh Lawson.
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Saudi stocks jump the most in five years after a report easing foreign ownership rules
Saudi Arabian stocks rose the most on Wednesday since 2020, after a report that suggested the regulator of markets may relax rules limiting foreign ownership in listed companies. Bloomberg News reported on a possible easing of the cap on foreign ownership in listed companies. This could revive interest in the Arab World's largest stock exchange. In a report, CMA board member Abdulaziz Abdulmohsen Bin Hassan said that the law could be implemented before the end the year. The benchmark index has fallen 9.6% this year. This is below other regional markets like Dubai and Kuwait, which have risen 13.8% and 20.0% respectively, largely due to lower oil prices. Blue chips that were once the cornerstone of investor sentiment in the kingdom have been unable to maintain gains since 2025. Almarai, a consumer giant, has fallen by 10%, and Savola, a company that is a market leader, has dropped by 36%. Mohammed Ali Yasin is the CEO of Ghaf Benefits at Lunate. He said: "We know that despite the 49% foreign ownership cap, foreigners never own more than 15% of the company on average." He said that the rally on Wednesday reflects the expectation that a relaxation of rules will increase the weighting of Saudi public companies within the larger MSCI and FTSE indices, increasing foreign investment into these shares. Tariq Qaqish said, "This will also increase liquidity and depth on the Saudi market. It will also tighten spreads between bid and ask and expand participation by institutions." Tariq is deputy CEO at FH Capital Abu Dhabi. Saudi Arabia is trying to attract foreign investment by establishing exchange traded funds in Japan and Hong Kong. In January, regulators opened up the possibility for foreigners who own property in Mecca or Medina to purchase listed companies. Yasin said that the fall in Dubai and Abu Dhabi stocks of more than 1 percent on Wednesday could be a response to possible Saudi regulatory changes. Federico Maccioni, Hadeel al Sayegh and Kirby Donovan edited the report.
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The new constitution in Guinea is approved by voters with 89% approval
According to the complete results of Tuesday's voting, 89% of voters backed a new constitution that would allow junta chief Mamady Dommebouya to be elected to office. Ibrahima Kalil Conde, the territorial administration minister announced that according to preliminary figures, which are subject to confirmation by Constitutional Court. 89.38% voted in favor of the proposed constitution with an 86.42% turnout from 6.7 million voters registered. The new charter replaces a transitional framework which had prohibited members of the ruling regime from running in elections. This opens the door to Doumbouya’s candidacy for the upcoming presidential election, expected in December 2020. The new constitution introduces new institutional changes, such as a longer term for the president, from five to seven years, renewable only once, and an entirely new Senate. Doumbouya took power in Guinea in 2021, the country with the largest reserves of bauxite in the world. This was one of eight coups in West and Central Africa that took place between 2020 and 2023. The opposition leaders Cellou Dalein Diallo and Alpha Conde, who are both currently banned from political activities, called for a boycott. However, the Guineans turned out in great numbers. A provisional turnout was 86.42%, and there were 5,951,807 votes across all constituencies. Many expressed a desire to end military rule. The opposition politicians claimed that the turnout was "abnormally" high compared to what they observed at polling booths. Reporting by Guinea Newsroom; writing by Ayen deng Bior
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Lithium Americas surges after Trump administration seeks equity stake
The U.S. listed shares of Lithium Americas soared by more than 70% on Wednesday before the bell rang. A report stated that the Trump administration was seeking up to 10% of the miner. This is the latest indication of Washington's push to invest in industries considered critical to the national security. Two people familiar with the talks said late on Tuesday that the administration is considering taking a stake in the company, as part of discussions to renegotiate the $2.26 billion loan from the government for the Thacker Pass lithium mining. Lithium Americas announced on Wednesday that it is in talks with the U.S. Department of Energy, and General Motors regarding the Thacker pass loan. This move highlights President Donald Trump’s increased use of direct government ownership in order to steer strategic industries and reduce reliance on China which dominates the refining of critical minerals. TD Cowen analysts stated that a stake by the government would give credence to a project's completion and expansion into multiple phases, with possibly enhanced economics. Trump's administration has recently taken a stake in Intel after a deal which would have made the Department of Defense MP Materials the largest shareholder. Jefferies stated that the Trump administration's preference to take equity stakes is seen as a lower political cost than tax hikes and can support funding, corporate profits, or favorable returns on capital invested. GM has the right, after investing $625 million for a stake of 38% in the mine, to purchase all the lithium produced by the first phase, and a portion of the second phase, for 20 years. However, Trump officials want a guarantee from GM that they will buy the material. Morningstar analyst Seth Goldstein stated that an equity stake may include offtake price guarantee, making Thacker Pass potentially profitable even if the lithium prices stay lower for longer. The Thacker project will begin production in 2028. It is a cornerstone for the U.S. effort to establish a domestic battery supply chain. In premarket trading, other lithium miners also benefited from the news. Albemarle rose 4.1%, while Sigma Lithium rose 6.6%. SQM's shares, listed in the United States, rose 2.5% on light volume. Reporting by Vallari Srivastava in Bengaluru, Arunima Kuma and Purvi Agarwal from Bengaluru. Editing by Sriraj Kalluvila.
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French utility EDF is facing difficulties in funding its $542 billion nuclear project, according to auditors
The French Court of Auditors stated on Wednesday that EDF, a French utility, will have to invest 460 billion euro ($542.39billion) by 2040. This investment is primarily in its nuclear fleet at home, but the rising debt and cash-flow issues are major obstacles. EDF is planning to build six new reactors in the coming decades, but nearly all of France's nuclear reactors are older than 30 years. They require a lot of maintenance to keep them operating. Ines Mercereau said that "everything related to...preserving the competitiveness of France's economy" involves energy bills at an hearing before the National Assembly. The Court of Auditors stated in a recent report that a fifth of all investments needed will be spent on keeping the nuclear fleet operating until it reaches 60 years of age. This would cost between 5 and 6 billion euro per year. EDF didn't immediately respond to an inquiry for comment. Utility is expected to finalise their plans for the EPR2 new reactors by year's end, which will allow them to evaluate costs and make a final decision on investment by the second half 2026. The court estimates that the cost of the six first reactors will be 75 billion euros. EDF'S DEBT IS A DIFFICULTY FOR FUND RAISING The report stated that Enedis's electricity network will require modernisation and reinforcement, which is why it expects to spend another 100 billion euro on the project. The report stated that EDF will have difficulty raising capital for these investments alone due to its debt which exploded in 2022, during the European Energy Crisis, and its cash-flow trajectory. EDF has had difficulty implementing its long-term contract system to replace its old system, which contracted out about one third of its production annually. The report stated that the plummeting prices on the market have affected EDF's capacity to attract clients. Nicolas Goldberg, partner of Colombus Consulting, explained that because EDF had refused to regulate its nuclear power sales in the past and its income was more closely linked to the falling market price, its income now is more than ever tied to the falling market price. LSEG data shows that the French prices for delivery in 2023 were above 100 euros/MWh when these long-term contracts announced late in 2023. However, prices have fallen sharply since then and are now below 60 euros/MWh. In order to address these concerns, the court encouraged the utility to continue monitoring the profitability of its investments in renewable energy and to ensure a clear division of costs and risk between the French government, EDF, and its customers. "This alone will not solve the EDF group debt situation," Mercereau said.
Bessent: Chemicals, aircraft engines and other products could be used as leverage to influence US-China negotiations
U.S. Treasury secretary Scott Bessent stated on Wednesday that certain chemicals and aircraft parts from the United States could be a powerful tool for the United States to use in its negotiations with China.
Bessent said on Fox Business Network’s “Morning with Maria” program that China was supplying rare earth minerals, but that the U.S. continued to work hard to ensure supplies of certain strategic products and goods.
We have levers at our disposal. Bessent said that the company relies on us to provide a wide range of products, including aircraft engines, parts, chemicals, plastics and silicon.
Bessent stated that the United States can use the initial public offering market to leverage its negotiations with China.
He and other Trump Administration officials have spoken to their Chinese counterparts at least four times and will meet them again before November 10, when the pause on higher tariff rates expires.
"We approach them with mutual respect." "They're the world's second largest economy, but we have made it clear that we have priorities and interests that we will defend."
The Treasury Secretary stated that the U.S. would do everything possible to secure a supply of semiconductors manufactured by the United States and other close allies. This was done in order to reduce the risk, given Taiwan's near total dominance of the market.
Bessent stated that "the single biggest failure of the global economy is the fact that 99% high-performance semiconductors are manufactured in Taiwan."
He said, "They are doing a fantastic job. They have a wonderful eco-system, but we need to get that back to our allies in the U.S., or Japan, or the Middle East. We're working hard on it every day." Reporting by Andrea Shalal, Doina Chiacu and Alex Richardson. Editing by William Maclean & Alex Richardson.
(source: Reuters)