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European car sales flat in October, EVs pick up speed, ACEA states
New automobile sales in Europe were flat in October, after succumbing to 2 consecutive months, market data revealed on Thursday, while the shift to totally electric or hybrid models picked up speed in the month. An uptick in overall sales in Spain and Germany, of 7.2% and 6% respectively, balance out a contraction in France, Italy and Britain, the European Car Manufacturers Association ( ACEA) stated. WHY IT'S IMPORTANT European automakers are battling with weak demand, high production expenses, and managing the shift to EVs, while attempting to fend off competition from China. BY THE NUMBERS The variety of new vehicles signed up in October in the EU, Britain and the European Open Market Association (EFTA) increased 0.1%. year-on-year to 1.04 million. Sales of totally electric vehicles (BEVs) increased for the 2nd. successive month, up 6.9% in October, while those of hybrid. automobiles (HEVs) increased by 15.8%. Registrations in the EU, Britain and EFTA at Volkswagen. rose 12.6%, while they fell by 16.7% at Stellantis. and by 0.4% at Renault. Sales were down 23.1% at EV maker Tesla and down. 10% at China's SAIC Motor. In the EU, total brand-new car registrations rose 1.1%. year-on-year. Germany saw sales increase with 6%, after 3. months of losses. Energized vehicles - either BEV, HEV or plug-in hybrids. ( PHEV) - sold in the bloc represented 55.4% of passenger car. registrations in October, up from 51.3% in the previous year. QUOTES As we head towards the end of the year, carmakers are. progressively presenting discount rates and offers to sell any. unsold stock, said Felipe Munoz, Global Analyst at market. research firm JATO Dynamics in a different declaration on. Wednesday. This is assisting registration figures stabilise and. should not be mistaken as an indicator of market healing, he. added. CONTEXT The European Union authorized at the end of October increased. tariffs on Chinese-built electric lorries of up to as much as. 45.3%.
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Oil costs edge up on geopolitical stress; higher-than-expected United States stocks cap gains
Oil rates rose partially on Thursday as geopolitical concerns over intensifying stress in between Russia and Ukraine countered the effect from a. biggerthanexpected boost in U.S. unrefined inventories. Brent unrefined futures increased 16 cents, or 0.2%, to. $ 72.97 since 0408 GMT. U.S. West Texas Intermediate crude. futures rose 16 cents, or 0.23%, to $68.91. Ukraine fired a volley of British Storm Shadow cruise. missiles into Russia on Wednesday, the current new Western weapon. it has actually been allowed to utilize on Russian targets a day after it. fired U.S. ATACMS missiles. Moscow has stated making use of Western weapons to strike Russian. territory far from the border would be a significant escalation in the. conflict. Kyiv states it needs the capability to protect itself by. hitting Russian rear bases utilized to support Moscow's invasion,. which entered its 1,000 th day today. For oil, the danger is if Ukraine targets Russian energy. facilities, while the other danger is uncertainty over how. Russia reacts to these attacks, stated ING analysts in a note. JPMorgan experts said oil consumption recovered in the past. week thanks to better travel need in the U.S. and India, and. as the latter likewise showed a substantial increase in industrial. demand. International oil need is approximated to reach 103.6 million. barrels per day (bpd) during the first 19 days of November, up. 1.7 million bpd on-year, the experts stated in a note. But countering the gains was an increase in U.S. crude. stocks by 545,000 barrels to 430.3 million barrels in the. week ended Nov. 15, going beyond analysts' expectations in a. Reuters survey for a 138,000-barrel rise. Gas stocks last week rose more than projection,. while distillate stockpiles posted a larger-than-expected draw,. according to the Energy Information Administration information. Adding to supply, Norway's Equinor stated it had. brought back full output capability at the Johan Sverdrup oilfield in. the North Sea following a power failure. Meanwhile, the Company of the Petroleum Exporting. Countries and its allies led by Russia, the group referred to as. OPEC+, may push back output increases again when it fulfills on. Dec. 1 due to weak global oil demand, according to 3 OPEC+. sources familiar with the conversations. OPEC+, which pumps around half the world's oil, had. at first prepared to slowly reverse production cuts with. minor increases spread over numerous months in 2024 and 2025. However, the International Energy Firm
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A lot of base metals increase on soft dollar, Trump tariff threat caps gain
Base metals rates were mostly higher on Thursday amid a softer dollar, however gains were very little as market participants waited for more cues on prospective U.S. tariff policies. Three-month copper on the London Metal Exchange (LME). rose 0.4% to $9,128.50 per metric ton by 0408 GMT, while. the most-traded December copper agreement on the Shanghai Futures. Exchange (SHFE) relieved 0.1% to 74,340 yuan ($ 10,266.25). a ton. A softer dollar index on Thursday made greenback-priced. metals less expensive to holders of other currencies. However, price. gains were muted amidst concerns that physical metals demand would. be injured by U.S. President-elect Donald Trump's tariff policies. A Reuters poll of economic experts revealed the United States could. enforce nearly 40% tariffs on imports from China early next year,. possibly slicing development in the world's second-biggest economy. by as much as 1 percentage point. As markets await news from the Trump administration. regarding prospective tariffs on China next year, liquidity will. likely stay suppressed into the year-end, Sucden Financial. expert Daria Efanova stated in a note. A trader said the marketplace has actually likewise been eagerly anticipating. extra stimulus measures from China, though that has actually not been. priced in. LME nickel increased 0.8% to $16,035 a metric heap,. zinc edged down 0.1% to $2,984.50, tin was up. 0.4% at $29,150 while aluminium increased 0.1% to $2,645.50. and lead decreased 0.4% to $2,012.50. SHFE nickel climbed up 1.3% to 127,780 yuan a metric. ton, zinc increased 0.9% to 25,180 yuan, lead edged. up 0.1% at 16,875 yuan, tin increased 0.3% to 243,290. yuan while aluminium alleviated 0.1% to 20,660 yuan. The global lead market deficit increased to 32,400 metric lots in. September from 16,200 loads in August, and the zinc market. deficit edged down to 79,500 metric loads in September from. 85,000 loads in August, International Lead and Zinc Study Hall. information revealed. For the leading stories in metals and other news, click. or.
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GQG Partners' stock plunges over 20% on US allurement, fraud charges against India's Adani
GQG Partners, which has a. near 20% stake in India's Adani Group, saw its Australialisted. shares plunge 23% on Thursday after Gautam Adani, the. conglomerate's chair, was arraigned in the U.S. over charges of. bribery and fraud. GQG owns a combined stake of 19.37% in Adani Enterprises. , Adani Power, Adani Green Energy. and Adani Energy Solutions, according to LSEG data. The financial investment firm's Australia-listed stock plunged as much. as 23.1% to A$ 2.03, its most affordable level since mid-March. The stock. was last down about 22%, set for its worst day ever. Our team is evaluating the emerging details and determining. what, if any, actions for our portfolios are appropriate, GQG. said in a statement. Earlier, U.S. authorities said Adani and 7 other. offenders, including his nephew Sagar Adani, agreed to pay. about $265 million in kickbacks to Indian government authorities to. get contracts anticipated to yield $2 billion of revenue over 20. years, and establish India's biggest solar power plant job. The Adani Group did not immediately respond to a Reuters. ask for comment.
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Misunderstanding General Average Concepts Could Harm Offshore Operators
At a recent seminar in London organized by the International Underwriting Association of London (IUA) and the Association of Average Adjusters (AAA), participants heard how ignoring or not fully understanding the concept of General Average (GA) when concluding charter-party contracts for offshore services could cause problems in the event of an incident or accident.Michiel Starmans, a Fellow of the AAA and Director Legal Department of the Spliethoff Group and Alf Inge Johannessen, an Associate of the AAA and Senior Claims Manager at DOF, spoke at the seminar and explained the issue:“General Average is a simple cost sharing agreement where all parties involved in a common maritime adventure contribute to indemnify the party who incurred costs or suffered a sacrifice of their property to save other property involved in the adventure from common peril,” Johannessen explained. “So that might include ordering a tug to assist a vessel which has run aground or jettisoning cargo to save the ship,” he said. But should offshore vessels be treated differently from traditional merchant vessels transporting cargo from one port to another?Starmans argues not. “More often than not, offshore vessels are carrying cargo or property owned by a number of different entities, this might include cargo to construct a floating wind turbine, cable loaded on a carousel, or a subsea vehicle. All this cargo/equipment has a value and is likely to be insured with separate insurers.“General Average applies to all property in peril in a common maritime adventure, and this clearly includes moving cargo/equipment from a storage port to an offshore construction or operational site. It will also cover the period the vessel is working on the site,” he said. “The principles of General Average apply equally to the offshore sector as they do to any common voyage.”The speakers went on to reference a series of common charter-parties used in the offshore sector such as Heavycon 2007 (voyage charter for super heavy and voluminous cargoes), Heavyliftvoy 2009 (voyage charter for the mid-sized heavy lift sector carrying specialist cargo), Supplytime 2017 (time charter for offshore support vessels and any other vessels carrying cargo and/or equipment for Charterers) and Windtime 2013 (time charter for transfer of personnel and equipment to and from wind farm installations).“All these contracts (except Heavyliftvoy 2009) include a knock-for-knock clause,” said Starmans. “This means each party would bear its own losses in the event of an incident, so any damage to the vessel would be the responsibility of the vessel owner and costs associated with cargo loss or damage would be for the charterers or their insurer to cover. General Average and knock-for-knock can perfectly exist next to each other in the same contract (as has been the case since Supplytime 1975), but extra attention is required that General Average is excepted from the overriding application of the knock-for-knock clause.“As from Windtime 2013, the General Average clause has been omitted. This gives rise to two issues: The first is that just because a General Average clause is not included does not mean that GA does not exist. GA is embedded in the law of all maritime countries, in English law, for example, it is contained within the Marine Insurance Act. This means that GA principles can always be relied on by a party wishing to make a GA claim, but omitting to include a GA clause in the contract is likely to make such a claim more contentious (adjustment as per the uncertain law of the place of destination instead of the well-known York-Antwerp Rules). "This has the potential to impact a number of insurance covers including Hull & Machinery, Cargo, Construction All Risks (CAR) and subsea equipment insurance for ROVs and other subsea vehicles.An added issue would be P&I cover. Usually, the P&I Club would cover any unpaid cargo contribution to GA, if the cargo interests are able to prove a breach of contract by the owner. However, if GA is specifically excluded then the unrecoverable GA contribution from cargo, equipment or property owned by the charterers will not be recoverable from the P&I Club as there had not been a breach of the contract of carriage.The speakers were keen that those involved in the offshore sector were fully aware of the principles of GA and how it applied to their business. Summing up, Johannessen said: “General Average is there as a matter of law, whether or not it is mentioned in the charter-party. Including a GA clause in the charter-party is an advantage to secure certainty as to how GA should be dealt with. If contracting out of GA, parties should be fully aware of the implications and consider securing special insurance cover for what cannot be recovered from other parties. To avoid full GA procedures for smaller GA situations, parties should ensure that the vessels involved have a reasonable GA Absorption Limit in their H&M policies.”The seminar was held in London on November 13, 2024 and chaired by Ann Waite, Honorary Chair of the Association of Average Adjusters.
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US Judge Proposes CITGO Auction Solution
The U.S. judge overseeing an auction of shares in a Citgo Petroleum parent to pay Venezuela-linked creditors on Wednesday proposed major procedural changes to advance a case stalled by wide opposition and lawsuits by creditors in other courts.Judge Leonard Stark recommended a series of changes to encourage higher bids in a seven-year-long court case brought by companies pursuing up to $21.3 billion in claims for debt defaults and expropriations in Venezuela.An up to $7.3 billion bid by an affiliate of activist investor Elliott Investment Management could soon be challenged by the court's recommendation to choose a "starting point bidder" to move forward with the auction. Most parties in the case have objected to Elliott's offer, prompting the judge to develop the new terms.Stark proposed to reopen a Citgo data room for potential bidders to prepare their offers, grant all parties in the case access to terms, offer termination protections to all possible bidders, and give enough time for competitors to raise bids.The court said it wanted to continue with the revised sales process while some creditors' lawsuits brought in other courts continue. Several had filed in New York and Texas seeking to improve their chances of obtaining proceeds from the auction.
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MinRes to de-link with creator Chris Ellison after tax evasion scandal
Australia's Mineral Resources said on Thursday it prepares to loosen up or leave handle entities linked to its billionaire creator Chris Ellison after an internal probe discovered he misused business resources for personal gain and tax evasion. The varied miner is reviewing its leases of residential or commercial properties from entities linked to Ellison, who has offered to sell them, its 49% stake in a trust where Ellison's consortium holds the staying stake, and other handle people near him including his child and brother. The future of all deals and arrangements of this nature is they won't exist unless there is a strong, engaging organization reason to maintain them, Mineral Resources (MinRes) stated in a statement after its annual basic conference. Any plans would require to be on strictly industrial terms with routine oversight and independent review, the business said. Ellison did not have judgement from time to time, MinRes stated. Last month he admitted to failing to effectively reveal profits from his abroad entities to the Australian Taxation Office, prior to listing Mineral Resources in 2006. The board accepts that Chris' objective was never ever to cause hinderance to the company or its investors, and there were processes in place for total up to be repaid to the company in a. timely manner, MinRes stated on Thursday. The scandal has erased over 25% of the miner's share value. since Oct. 21, drawn criticism from pension fund HESTA which. placed the miner on its watchlist, caused a Moody's score. downgrade, and triggered AustralianSuper to decrease its stake. listed below the significant shareholder limit. I acknowledge that I made errors, some of which were. driven by my desire to keep personal particular occasions that cause me. terrific individual embarrassment, Ellison said in a statement. previously this month. MinRes shares were down 0.8% as of 0334 GMT on Thursday,. while the ASX 200 benchmark index was marginally down. Ellison, who led MinRes through its listing in 2006 and. remains its biggest investor, will stay as managing. director. While a look for a successor is underway, MinRes. expects to complete the process within the next 12 to 18 months.
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Indian shares open lower as Adani stocks tumble on reports of US indictment
Indian shares fell on Thursday, dragged down by a slump in Adani Group stocks following the indictment of its billionaire chairman in New York over his declared involvement in a bribery and scams scheme. The NSE Nifty 50 was down 1.06% at 23,288.2 points, since 9:46 a.m. IST, while the BSE Sensex rose 0.87% to 76.912.28. Eleven of the 13 significant sectors published losses at the open. The wider, more locally focused little- and mid-caps lost about 1% each. All 10 listed business of the Adani Group lost in between 9%. and 20% after U.S. prosecutors stated on Wednesday that Gautam. Adani, among the world's richest people, along with his. nephew Sagar Adani, have been indicted in New York in a $265. million bribery scheme. U.S. prosecutors alleged that Adani and seven other. accuseds accepted pay the allurements to Indian government. authorities to protect agreements expected to produce $2 billion in. profit over twenty years, and develop India's biggest solar energy. plant project. Adani Group has actually not reacted to requests for a talk about. the indictment. Dollar bond rates for Adani companies fell dramatically in Asia. trade. Shares of Adani Enterprises and Adani Ports. fell about 10% each, ending up being the leading Nifty 50 losers. Adani Group stocks dragged down the energy sub-index. , which lost 3%, while state-owned lending institutions. dropped 4.6%. The benchmark Nifty 50 and BSE Sensex snapped their losing. streak on Tuesday, following corrections on Nov. 13 and Nov. 18,. respectively, due to moderated corporate profits and continuous. foreign outflows. Risk sentiment could be more affected in the short-term. due to the indictment, stated two analysts. The charges come almost 2 years after U.S. short-seller. Hindenburg Research study implicated the Adani Group of misusing offshore. tax sanctuaries, which activated a sharp decrease in Adani stocks. Given That the Hindenberg Report, as of last close, only 3 of. the conglomerate's 10 listed entities, Adani Power,. Adani Ports and Ambuja Cements have. recuperated.
TotalEnergies’ Income Hits Three-Year Low
French oil major TotalEnergies third-quarter profit hit a three-year low of $4.1 billion on Thursday, slightly missing expectations as refining margins and upstream outages dragged down earnings.
Adjusted net income was down 37% from a year earlier and 12.7% lower from the previous quarter's $4.7 billion. The result just missed analyst expectations of $4.2 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 23.6% year-on-year to $10 billion.
Earlier this month, TotalEnergies warned its financial results would take a hit as its margin for converting crude oil into refined fuels declined 65%.
Global refining margins have dropped sharply in recent months in the face of weaker economies and the start-up of several new refineries in Asia and Africa, while oil prices fell 17% in the quarter - the largest quarterly decline in a year - on worries about the global oil demand outlook.
The company's shares were down 2.8% at 1402GMT.
The tough environment for refineries marks a return to the long-term trend that had been briefly interrupted by sky-high profitability following Russia's invasion of Ukraine, Chief Executive Patrick Pouyanne told analysts.
"Some small European refineries which were supposed to shut down were maintained as the industry stopped to capture good margins," said Pouyanne. China's private refiners, known as 'teapots', are also adding to supplies.
"I think the hard times are set to come back, there are too many small refineries in Europe and everyone has to do their part," he added.
Pouyanne said Total was too small to cut production but would examine its six European refineries and convert the weakest into biorefineries producing renewable fuels.
Total has already converted its La Mede site in southern France into a biorefinery, while the under-conversion Grandpuits, near Paris, will be operational next summer.
In addition to a 83% drop in quarterly refining and chemicals division profits year-on-year, Total's integrated LNG division also made 21% less than the third quarter last year, with the company citing low gas market volatility as a hamper on trading profits. Integrated power, which includes renewables, was down 4% from a year ago.
RBC analyst Biraj Borkhataria said Total reported "weaker cash generation relative to expectations", and that while "divisional estimates were broadly in line with consensus ... estimates have been falling following the recent trading update."
TotalEnergies took a $1.1 billion impairment related to the August bankruptcy filing of U.S. subsidiary SunPower, and its exit of several South African offshore blocks.
Quarterly hydrocarbon production of 2.4 million barrels of oil-equivalent per day was at the low end of guidance given at half year due to security-related disruptions in Libya and an outage at the Ichthys LNG plant in Australia.
The company confirmed $2 billion in share buybacks for the fourth quarter and decided a third interim dividend of 0.79 euros per share for 2024.
(Reuters - Reporting by America Hernandez and Benjamin Mallet in Paris; Editing by David Goodman, Mark Potter and Emelia Sithole-Matarise)