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Anglo-American MMG's $500m deal with EU faces antitrust investigation, sources say
Anglo American faces an EU investigation over its $500 million sale to MMG of its Brazilian Nickel assets after the regulators rejected their proposed remedies. Two people with knowledge of the situation said that on Wednesday. The companies offered to purchase ferronickel for resale to European customers for up to ten years from MMG to allay concerns that this deal might cut off shipments of the metal to Europe due to global concerns over the influence of China on the supply chain of minerals. One source said that the European Commission (which is the EU's competition enforcer) has not requested feedback from competitors and customers about the proposed remedy. The EU executive is due to complete its preliminary review on the deal by November 4. A request for a comment was not immediately responded to. In a joint press release, the companies stated that they will continue to work closely with the Commission in order to get its approval of the deal. They said: "This includes measures we recently put forward in order to ensure that customers continue to have access to cupronickel produced sustainably, which we consider to be the best outcome for them." They added, "We believe European customers will support Anglo American in its role as a cupronickel marketer. Supply competition in Europe will also increase as MM becomes a new provider." (Reporting and editing by Ros Russell, Elaine Hardcastle, and Foo Yunchee)
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WoodMac: US nuclear power generation will grow by 27% after 2035 as data centers drive demand for electricity
Analysts at Wood Mackenzie say that U.S. nuclear energy generation will increase as data centers and other surges in demand strain grids throughout the country. A wave of tech firms have also signed deals to use the zero-carbon source. The growing interest in this sector is evident by the flurry announcements of nuclear energy investments. Most recently, the U.S. Government announced an $80 billion partnership with Westinghouse Electric. The power industry has to deal with the increasing demand for electricity from data centers that are energy-intensive, as well as rising temperatures and electrification. Technology companies have become energy providers to meet the growing demand. This is especially true in the U.S., where nuclear power has emerged as a preferred option. NextEra Energy and Google signed a partnership agreement this week to restart a nuclear plant in Iowa. Other tech giants, such as Microsoft, have also signed agreements for the next-generation of nuclear technologies. Entwistle noted that it will take some time for many of them to be completed. Wood Mackenzie predicts that U.S. nuclear production will be stable until 2035 and then rise 27% by 2060. According to the latest energy transition outlook from the firm, global data center power consumption is expected to reach 700 TWh globally in 2025 and 3,500 TWh worldwide by 2050. This is equal to the combined electricity demand of India and the Middle East today. The global nuclear capacity will grow from 400 GW to 800 GW to 1,600 GW between 2060 and 2060, according to the latest energy transition outlook. James West, managing Director at Melius Research, stated that small modular reactors are seen as being cheaper and quicker to build. They can also be located with data centers without the need for an additional power infrastructure. The nuclear industry faces multiple challenges in order to remain competitive. These include project and permit delays, cost overruns, and a labor shortage. Entwistle said that securing policy support and funding to fund innovative projects, such as small modular reactors will be difficult for newer technologies. (Reporting and editing by Frances Kerry. Kavya Baliaraman)
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Israel announces it will maintain the ceasefire in Gaza a day following strikes that killed 104 people
Israel's military announced on Wednesday it would adhere to a ceasefire agreement in Gaza. Health officials in the enclave reported that airstrikes in Gaza had killed 104. Israel and Hamas both blamed each other for violating the deal. Israel launched airstrikes on Gaza late Tuesday night, claiming it was a response to a militant attack that killed a soldier. This is the latest breach of an already fragile ceasefire. In a press release, the Israeli military stated that it would enforce the ceasefire and respond strongly to "any violations". ISRAEL SAYS AIRSTRIKES TARGETED HAMAS COMMANDER In a separate announcement, the military stated that it had targeted dozens Hamas militants in the enclave as well as weapons and tunnels owned by the group. The military named five militants including a Hamas leader who they said were involved in the attack on an Israeli Kibbutz that started the war. Gaza's health ministry reported that 104 people have been killed by Israeli airstrikes in Gaza since Tuesday, including 46 children and 20 females. Couldn't verify the figures immediately, but video shows several women and children dead inside a hospital at funeral procession. Donald Trump, the U.S. president, said that the U.S.-backed truce was not in danger despite the bombardments. Trump said to reporters on Air Force One, "I understand that they killed an Israeli soldier." "So, the Israelis retaliated and they should retaliate," Trump told reporters aboard Air Force One. "When that happens, you should strike back," he said. The Israeli army confirmed the death of the soldier on Wednesday. Trump stated that "nothing" would jeopardize the ceasefire. You have to realize that Hamas represents a small portion of the Middle East peace, and it is important for them to behave. ISRAEL SAYS HAMAS ATTACKED COMMUNISTS WITHIN THE 'YELLOW LINE Some Palestinians who had fled their homes feared that the truce would fall apart. Ismail Zayda (40), a father of 3 children, remembered the sounds of explosives all night long, a constant reminder of the war which has claimed tens and thousands of lives. It was one of worst nights since the ceasefire. Zayda told a chat application that the sounds of planes and explosions made him feel like war had resumed. Zayda lives with 25 members in tents west of Gaza City. According to an Israeli military official, Hamas violated the ceasefire agreement by attacking Israeli forces stationed inside the "yellow-line", the deployment line that was agreed in the ceasefire. Hamas has denied responsibility for an attack on Israeli troops in Rafah in southern Gaza and stated in a press release that it remains committed to the ceasefire agreement, which came into effect on 10 October. The agreement involves the return of hostage remains In the agreement, Hamas freed all hostages alive in exchange for almost 2,000 Palestinian prisoners, including wartime detainees. Israel retreated its troops and stopped its offensive. Hamas has also agreed to return the remains of any hostages who have not yet been recovered. However, it says that the process of locating and retrieving all the bodies will take some time. Israel claims that the militant group has access to the remains of many hostages. Trump has said that he will be closely monitoring the situation. Benjamin Netanyahu, the Israeli prime minister, said that human remains were handed over to Israeli authorities on Monday night. They belonged to a man who was killed in Hamas' attack of October 7, whose body had been recovered by Israeli troops during the first weeks of combat. The Israeli military claimed that Hamas planted the remains on an excavation site, before calling in Red Cross and pretending to have found a missing prisoner. This was done to give a false impression of "efforts to locate bodies". The military published a 14-minute video showing three men covering a white bag with rocks and earth at an excavation site. The video's location was confirmed independently, but the date or Israel’s description of what it showed was not. Hamas didn't immediately respond to our request for comment. The ICRC stated that its team did not know the remains were planted on the site prior to their arrival. The ICRC issued a statement saying that it was unacceptable to stage a fake recovery, especially when the agreement is so important and so many families still await news about their loved ones. (Additional reporting Trevor Hunnicutt, Maayan Libell, Marine DelRue and Eleanor Whalley, Writing by Michael Georgy, Editing by Michael Perry Sharon Singleton Aidan Lewis
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Powell's remarks and Fed rate decision are causing gold to rise by nearly 2%
The gold price rose by nearly 2% in Wednesday's session, recovering from the three-week low reached in the previous session. Some traders had covered their short positions in anticipation of the Federal Reserve's rate decision scheduled for later that day. As of 9:45 am, spot gold was up by 1.4%, at $4,007.47 an ounce. After falling to its lowest level since October 6, gold prices rose 1.4% at 9:45 a.m. ET (1345 GMT). U.S. Gold Futures for December Delivery gained 1%, to $4.023.3 an ounce. Some of these speculative positions that were short are now covering in anticipation of the Fed's announcement .... "The market will pay close attention to (Fed Chairman Jerome) Powell’s answers to questions today," Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals said. The Fed will likely cut interest rates 25 basis points in response to September's lower-than-expected inflation and signs of weakness on the labor market, despite limited data due to ongoing U.S. Government shutdown. Investors will closely monitor Powell's remarks to see if they contain any clues about future policy. Gold that does not yield is usually more popular in low interest rate environments and times of economic uncertainty. In the meantime, U.S. president Donald Trump announced a deal with South Korea on Wednesday and expressed optimism that a similar truce would be reached with China's Xi Jinping ahead of scheduled talks Thursday. Gold's appeal as a safe haven could be diminished by a potential trade agreement between the U.S. Gold is up 52% in the past year, thanks to geopolitical and financial uncertainties, U.S. rate cuts and central bank purchases. Prices reached a record of $4,381.21 in October, but have since fallen by 8.5%, partly due to the easing of trade tensions. Grant stated that despite the magnitude of the setback, the gold price could still reach $5,000/oz by the first quarter 2026. Palladium rose by 1.2%, while platinum gained 1.5% to $1,608.95. Spot silver also increased 2.3%, to $48.11 an ounce. Reporting by Noel John in Bengaluru and Pablo Sinha. Mark Potter edited the article.
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Industry group: Portugal's chemical sector must spend $35 billion to decarbonise.
APQuimica, a Portuguese industry group, said that the chemical, petrochemical, and refining industries in Portugal need to increase their decarbonisation spending to achieve net zero climate goals before 2050. The sector estimates this process will cost 34.99 billion euros (30 billion euros) of investment. A sector that invests around 1 billion euro per year on average in growth, manufacturing, and energy efficiency. However, only a small portion of this money is devoted to decarbonisation. This estimate of 30 billion euros, which is the first time that the industry has given a figure to decarbonisation costs comes from a joint study with the consultancy EY. The plan is a structured approach to achieve carbon neutrality as required by U.N. treaties and EU conventions, APQuimica president Luis Gomes stated on Wednesday. Initial capital investments will be significant. Funding will go mainly to electrification and renewable gases such as green hydrogen or biomass as well as carbon storage, use, and capture. In Europe, carbon neutrality has become a legal requirement. Gomes said that he did not know of a company within the AP Quimica Group who had doubts. He said that the industry was capital-intensive, already invested a great deal every year, and had the potential to invest more. Portugal's manufacturing sector generates 26 percent of the country’s total greenhouse gas emission. Its chemical, petrochemical, and refinery industries are responsible for over a third. APQuimica is made up of more than 60 companies, including Repsol Polimeros in Spain and other large companies like Bondalti or the oil company Galp. The group stated that the sector, which exports into 180 countries, has disadvantages when compared to European competitors, including long delays in the official authorisation process required to approve investments. Portugal's electricity and gas prices are below the EU average. However, this advantage is being eroded due to more generous subsidies given elsewhere in Europe.
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Investors await Fed decision, Powell speech as gold gains almost 2%
Investors found gold attractive on Wednesday after the metal's price fell to a 3-week low the previous session. The Federal Reserve's rate-cut decision and Chairman Jerome Powell’s speech were also in focus. As of 0218 GMT spot gold rose 1.9% to $4,024.56 an ounce after falling to its lowest level since October 6 on Monday. U.S. Gold Futures for December Delivery gained 1.4%, to $4.039.50 an ounce. Peter Fertig, Quantitative Commodity Research's analyst, said that bargain-hunting might be a good way to support gold because its price has dropped by more than 10%. This makes gold attractive because the gold story remains valid. Fertig continued, "There may also be central bank currency managers who saw a great opportunity to purchase a little more gold when the price dropped." On Wednesday, U.S. president Donald Trump started the final leg in his Asia tour by arriving in South Korea. He was optimistic that he could advance an unresolved trade deal with President Lee Jae Myung as well as reach a truce on a trade dispute with Chinese President Xi Jinping. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. ANZ noted that the recent drops may offer central banks an opportunity to increase purchases. Investors are looking for any comments from Powell that will be forward-looking. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Silver spot gained 2.8%, to $48.37 an ounce. Platinum was up 1.6%, at $1,611.66, and palladium climbed 1.6%, to $1,415.69. (Reporting and editing by Ishaan arora in Bengaluru, Sherry j. Phillips, Eileen Soreng, Sonia Cheema, Sumana nandy)
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Phillips 66 beats quarterly profit estimates on strong refining margins
The refiner Phillips 66 exceeded Wall Street expectations for its third-quarter profits on Wednesday. This was due to higher fuel margins and record volume in its pipeline business. The shares of the company increased 1% in premarket trading. The U.S. refinery margins are recovering from a multi-year slump. Profits were down from their post-pandemic peak and supply shocks caused by Russia's invasion in Ukraine 2022 have faded. Quarterly U.S. Refinery margins On average, the price of a car has risen by 25% since its multi-year lows. The recovery has helped top refiners including Valero Energy post stronger-than-expected quarterly results. Phillips 66 realized margin increased to $12.15 a barrel during the third quarter. This is an increase of 46% compared to a year ago. The refining division reported earnings of $430 millions, compared to a loss $67 million a decade earlier. The midstream segment of the refiner, which transports gasoline, diesel, and natural gas liquids via its pipelines, posted adjusted earnings at $697 million. This is an increase of about 4% compared to a year ago. The company's refining segment income was offset in part by higher environmental costs, primarily due to the planned idle of the Los Angeles Refinery. Phillips 66 announced that it has ceased to process crude oil at its Los Angeles Refinery as of October 16. The remaining units are expected to be idled before the end of the year. Turnaround expenses dropped by 74%, to about $36 million, compared to 94% a year ago. According to data compiled and analyzed by LSEG, it reported an adjusted profit per share of $2.52 for the three-month period ended September 30. This compares with analysts' estimates of $2.17. Reporting by Tanay in Bengaluru, Editing by Devika S.
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Wall Street to open higher on Thursday ahead of Fed meeting and tech earnings
European stocks edged up and Wall Street futures reached new record highs Wednesday, ahead of earnings reports from major U.S. technology companies and an upcoming U.S. Federal Reserve Meeting that will likely deliver a rate cut of 25 basis points. Wall Street closed Tuesday at a record-high after Nvidia announced that it would build seven Supercomputers for U.S. Department of Energy and after Microsoft struck a deal to allow OpenAI to restructure. During Asian trading, stocks in Japan and South Korea also reached new highs. The MSCI World Equity Index rose 0.1% at 1131 GMT. Europe's STOXX600 was up by 0.2%, Germany's DAX fell 0.1%, France CAC 40 remained unchanged, and London's FTSE 100 reached a record high of 0.6%. Wall Street futures have reached new record highs. S&P 500 E-minis are up 0.3% and Nasdaq E-minis are up 0.5%. Microsoft, Alphabet, and Meta (American technology companies) are expected to release their earnings on Wednesday. Charu Chanana is the chief investment strategist for Saxo. She said that investors want to see more than just solid numbers, but also evidence of a sustained AI monetisation. Nvidia is on course to exceed $5 trillion market value. TRUMP IS EXPECTED to REDUCE US TARIFFS ON CHINA U.S. president Donald Trump said that he is optimistic about the progress of a tariff agreement with South Korea's president Lee Jae Myung, who was in South Korea for the final leg on his Asia tour. Trump will also hold talks with Chinese president Xi Jinping on Thursday in the South Korean city of Busan. Trump said that he expected to lower U.S. Tariffs on Chinese Goods in exchange for Beijing’s commitment to curtail exports of fentanyl pre-cursor chemicals. Analysts said that while the talks may ease concerns about a escalating war of trade, the bar to see a reaction from the market is high. Matt Simpson, senior analyst at City Index, said that Wall Street futures are at record highs, and the bullish momentum is already waning. It's hard to believe how much excitement hasn't been priced in. "So unless Trump & Xi release a joint declaration with actual details, appetite to risk may require another source to prolong the current moves." Markets Wait for FED Meeting Market watchers waited for the Fed's meeting, which was scheduled to take place later in the day. A 25-basis point cut has been almost fully priced into the market. The ongoing U.S. shutdown has led to a lack of economic data. Traders will be on the lookout for any comments that hint at the Fed continuing to reduce rates in December. The Fed may also announce its intention to stop the so-called quantitative tightening programme (QT). Ten-year Treasury yields were at 3.9948%, with the prospect of lower U.S. interest rates keeping U.S. Treasuries in demand. The benchmark German 10-year bond yield was 2.6227%. The Japanese yen gained in value earlier in the session, after U.S. Treasury Sec. Scott Bessent intensified his criticism of Tokyo’s low interest rates. The dollar index rose 0.2% to 98.885 and the euro remained unchanged at $1.1635. David Halpenny's research note on global markets stated that the post-decision response for short-term rates will depend on Powell's interpretations of inflation risks. The oil prices increased as traders became more optimistic following the U.S. China meeting. Brent crude futures rose 0.6% to $64.78 per barrel while U.S. Crude was up 0.6% to $60.49. Safe-haven Gold traded at $4.016.31 per ounce.
Aramco signs deal to increase stake in struggling JV, Petro Rabigh
Saudi Aramco announced on Thursday that it had acquired a 22,5% stake in the joint venture for refining and petrochemicals Petro Rabigh, from Japan's Sumitomo Chemical. The acquisition is part of the turnaround plan for this loss-making venture.
This agreement increases Aramco’s stake in Petro Rabigh from about 40% to 60%. It is part of an effort to improve the performance at the joint-venture, which has suffered significant losses over recent years due to a difficult global market for petrochemicals.
According to calculations, Petro Rabigh's last full-year profit was in 2021. Since then, the company has accrued net losses totaling 12,4 billion riyals.
Petro Rabigh's turnaround plan comes at a time when Aramco, Saudi Arabia’s long-time cash machine, is navigating a period of reduced profit due to lower oil price. In August, the company reported a 22% decline in its second-quarter profits. It also announced cost-cutting initiatives across the company and an intention to divest assets that are not core to free up capital for more profitable investments.
Petro Rabigh’s turnaround plan includes the waiver $1.5 billion of shareholder loans, and a future joint injection of 5,26 billion riyals to be split equally between Aramco & Sumitomo.
The joint venture stated in a filing that "the board welcomed the steps and measure agreed to be taken" by Saudi Aramco. This shows its support as a significant shareholder for the long-term potential of Petro Rabigh.
Sumitomo will now own 15% of the company.
Aramco stated that the move would allow it to strengthen the downstream value chain by securing its crude oil placement and converting it more into high-valued products.
Aramco will assume the marketing rights of Petro Rabigh products as part of this agreement. Mark Potter edited the report by Yousef Sabah.
(source: Reuters)