Latest News
-
Kone nears $34 billion deal for rival TK Elevator, Bloomberg News reports
Bloomberg News cited people with knowledge of the situation as saying that Kone is close to a cash and stock deal for the purchase of TK Elevator. This would value the company at approximately 29?billion euro ($33.97billion), including 'debt. Reports indicate that the Finnish company has been putting the finishing touches on a contract with TK Elevator owners Advent and Cinven. An announcement is expected to be made as soon as Wednesday. The merger would make Schindler the second largest lift manufacturer in the world, surpassing OTIS. This would be one of the biggest deals in Europe this year, and also the largest takeover ever done by a Finnish company. We could not verify the information immediately. Kone TK Elevator and Kone did not respond immediately to comments. Advent and Cinven declined to comment. Last month, the head of Swiss lift manufacturer Schindler announced that it would contest any merger between Kone Elevator and TK Elevator in front of antitrust authorities. TK Elevator stated last month that it had not yet made a decision on its future direction, and an initial public offering (IPO), remained one of the options. Thyssenkrupp sold its elevator technology division, later renamed TK Elevator, for 17.2 billion euro in?2020 to a consortium of bidders, led by the private equity firms Advent, Cinven, and Germany's RAG Foundation. Kone made a 17 billion euro non-binding bid for TK Elevator in 2006, but later retracted the offer due to antitrust concerns.
-
Israeli attacks kill five people in south Lebanon including three rescuers
Five people were killed in two successive Israeli attacks on a building in southern Lebanon on Tuesday. Among them, three rescuers, who had gone to aid those injured in the initial attack. The Lebanese Civil Defense (a state-run rescue agency) spokesperson said that the three rescuers had been initially trapped beneath rubble after the second Israeli attack on the town Majdal Zoun, and later confirmed to be dead. Lebanese Army earlier said that two other?troops?were also injured in the second Israeli attack. The Israeli military didn't immediately respond to an inquiry for comment. LEBANESE PRIME MINISTER SAYS THE STRIKES ARE 'WAR CRIMES' Lebanese PM Nawaf Salm has condemned the strikes, calling them "a new and blatant crime committed by Israel." UN Human Rights office stated last month that Israeli strikes on civilians, including healthcare workers in Lebanon, may be considered war crimes. Since March 2, when the Iran-backed militant Hezbollah attacked Israeli positions, more than 2,500 people have been killed by Israeli?strikes in Lebanon. More than 100 medical personnel, 270 women, and 170 children are among the dead. Israel and Lebanon reached a ceasefire through U.S. mediation, which has resulted in a reduction of hostilities. However, Israel and Hezbollah continue to fight each other, accusing one another of violating this ceasefire. Israeli troops occupy a strip of southern Lebanon, and have warned residents not to return home. However, the Israeli 'air force' has continued to strike outside this strip, including in the town that was hit on Tuesday. Israeli strikes in southern Lebanon killed a 'Lebanese Journalist last week. Lebanese officials and press advocates said that 'continuing Israeli attacks prevented rescuers accessing the site, where the journalist was trapped under rubble. Hezbollah has continued its drone and rocket attacks on Israeli troops in Lebanon, as well as northern Israel. The Israeli military announced earlier on Tuesday that it had discovered and demolished Hezbollah tunnels in the southern Lebanon. Reporting by Maya Gebeily and Menna Alaya El-Din; Editing and production by Mark Porter and Daniel Wallis
-
Eni signs agreement with Venezuela to restart heavy oil project
Eni, Italy's energy producer, signed a deal with Venezuela's oil ministry and the state-run PDVSA on Tuesday to "relaunch" a heavy crude project within the Orinoco belt. PDVSA has been working with its key partners to sign preliminary agreements that confirm their interest in oil and gas projects or allow them to expand. This is as the government continues a broader?review on all contracts within the oil industry in order for the reform. In recent weeks, U.S. Chevron, British Shell, and Spain's Repsol have also signed similar agreements in order to confirm or expand their partnerships. The agreement with Eni was inked in Caracas, in the presence of Venezuela's interim president Delcy Rodriguez and Eni's chief executive Claudio Descalzi. PDVSA's head Hector Obregon, as well as Venezuela's oil minister Paula Henao, were also present. The event was broadcast on state television. Descalzi stated that the company is drafting its investment plan for the country and it should be finished by year's end. Rodriguez stated that "this is one of our most important bets in recent years." PDVSA, Eni and other companies that have been in the country for many years are partners on the Junin 5 Project?in Orinoco?which holds 35 billion barrels?certified oil? in place and also the Petrosucre Project, where they produce crude at shallow water. Eni has also partnered with Spain's Repsol on the Cardon IV offshore gas project. This large project was recently relaunched to increase gas supplies for Venezuela. Eni said that its production in Venezuela would be 64,000 barrels per day in 2025.
-
US consumer confidence improves unexpectedly, but gasoline prices are still a concern
U.S. consumer sentiment unexpectedly increased in April, amid a rally of share prices after a ceasefire was declared in the war with Iran. Also, improved perceptions about the labor market helped to ease the financial concerns of households for the time being. Despite the confidence reaching a four-month-high, the survey by the Conference Board revealed that 'higher gasoline costs resulting from the U.S. - Israel conflict with Iran' remain a cause of?concern for consumers. The number of vacations planned over the next six-month period and the percentage of people who intend to drive their holiday destination was the lowest it has been since April 2020 when the country was battling the COVID-19 pandemic's first wave. The stock market was boosted by the two-week ceasefire that President Donald Trump extended indefinitely last week. Economists dismissed the increase in confidence as temporary and noted that it was still well below the levels of January 2025 when Trump returned to his White House, imposing sweeping tariffs against imports. The Middle East conflict has also disrupted the flow and movement of goods beyond oil. They expected this to affect the labor market in some way or another during the year. Oren Klachkin is a financial markets economist with Nationwide Financial. He said: "We do not expect to see a significant rebound in consumer sentiments on the horizon." "A reassuring job market will only offer'modest comfort' in the face high energy prices. These will modestly creep into other areas of inflation." The Conference Board reported that its consumer confidence index rose 0.6 points to 92.8 in this month. The economists polled had predicted that the index would ease to 89.0. The survey's preliminary results were collected from April 1 to April 22. The survey's results were in stark contrast to the University of Michigan Surveys of Consumers which showed last week that its Consumer Sentiment Index had fallen to a "record low" in April. The University of Michigan Survey is more sensitive to perceptions of inflation, while the Conference Board Survey can focus more on the labor markets," said Gisela Yong, an economist at Citigroup. The most optimistic consumers were those who identify as Republicans, while the confidence of Independents fell and that of Democrats improved. Conference Board Chief economist Dana Peterson stated that "consumers wrote-in responses about factors affecting the economic continued to be pessimistic in April." The median 12-month expectations of consumers have slipped to 5.1% from 5.2% last month. Federal Reserve officials began a two day policy meeting on February and were expected on Wednesday to keep the U.S. Central Bank's benchmark interest rate for overnight loans in the range of 3.50%-3.75%. Wall Street's stocks were mixed. The dollar's value against a basket was not much changed. The yields on U.S. Treasury bonds were higher. Tax Refunds Offer Cushions The large tax refunds that were given this year helped to cushion the increase in gasoline prices. The average national retail price of gasoline is over $4 per gallon. The national average retail price is?over $4 a gallon. The percentage of consumers planning to purchase a vehicle in the next six-month period was at its highest level for nearly one and a half years. The number of people who wanted to buy a home increased, probably due to a moderated growth in house prices and lower mortgage rates compared to last year. Separate data from the Federal Housing Finance Agency shows that single-family home prices rose 1.7% over the past 12 months, after rising 1.8% in January. Despite the fact that more consumers plan to buy a home, they seem less interested in buying household appliances such as televisions, refrigerators, and washing machines. The higher tariffs and prices are likely to be the cause. Many people did not take a vacation this month, as the percentage dropped to its lowest level in a year. This month, the outlook for the labor market was positive. The percentage of consumers who perceive employment as "hard to obtain" has decreased, while the percentage saying that jobs are "plentiful", remained unchanged. The so-called labor?differential of the survey, which is based on data collected from respondents on their views about whether jobs are "plentiful" or "hard to come by", rose from 6.1% to 7.5% in March. This measure is correlated to the monthly unemployment report from the Labor Department. The unemployment rate decreased to 4.3% from 4.4% in the previous month. Still, economists expect the labor market to continue to soften in 2019. Grace Zwemmer is an American economist with Oxford Economics. She said that the U.S.-Iran conflict could weaken the labor force by reducing the hiring of firms. This is because they are more uncertain about future oil prices and the economic outlook. Reporting by Lucia Mutikani; Editing and proofreading by Chizu Nomiyama, Andrea Ricci
-
Gold drops as Middle East tensions continue to keep oil prices high. Fed meeting is in focus
On Tuesday, gold fell to a near four-week low, due to persistent inflation fears after U.S. President Donald 'Trump' appeared unsatisfied by Iran's most recent proposal to end war. Investors were also awaiting the Federal Reserve's meeting on monetary policy this week. Gold spot dropped 1.7%, to $4,600.61 an ounce as of 1:42 pm EDT (1742 GMT), having hit its lowest level in April 2. U.S. Gold Futures closed 1.8% lower at $4,608.40. It's rekindled pessimism in the Middle East about peace. "The strait is closed because the Trump administration has rejected Iran's most recent offer," said Peter Grant. Gold has fallen to a four-week low as a result. A U.S. official stated that Trump was not happy with the latest Iranian proposal to resolve the 'war.' This has dampened hopes for a solution to the conflict which has caused disruptions in energy supplies, increased inflation, and killed thousands. The price of oil rose after the UAE announced it would leave OPEC+ and the Strait of Hormuz, as stalled attempts to end the Iran War kept Middle East supplies constrained. The rise in crude oil prices increases the risk of interest rate hikes. Gold is often seen as a hedge to inflation. However, the high interest rates have a negative impact on its appeal. Investors expect that the Fed will hold interest rates steady at its two-day meeting ending on Wednesday. Investors will also closely monitor Jerome Powell, the Fed chair's remarks. Investors will also be watching for other central bank decisions, such as those of the European Central Bank, the Bank of England, and the Bank of Canada. Hong Kong Census and Statistics Department data revealed on Tuesday that China, the top gold consumer in the world, imported 47.866 tons of gold from Hong Kong in March, up from 46.249 tonnes in February. Silver spot fell by 2.7%, to $73.43, platinum dropped 1.5%, to $1,953.32, and palladium declined 0.8%, to $1,465.42. (Reporting and editing by Keith Weir in Bengaluru, Leroy Leo, Shailesh Kumar and Ishaan Aroo)
-
Italy PM: May extend the excise duty reduction, seeking EU budget leeway to energy
Giorgia Meloni, the Italian Prime Minister, said that Italy could extend its reduction in fuel excise duty beyond May 1, as part of an effort to help families and businesses cope with rising energy prices. Meloni, after a cabinet session, told reporters that "we?are assessing another?extension.?This might be shorter than previous ones." The Prime Minister also stated that her government has set aside nearly 1 billion Euros ($1.17 billion), to extend and strengthen some tax incentives designed to encourage employers of staff to hire. Italy has spent?around 700 million Euros to reduce excise duty on petrol and diesel for just under 40 days, until May 1. Meloni stated that the new reduction under discussion may have a greater effect on diesel than petrol. Italy, which is heavily dependent on imported oil and gas, is especially vulnerable to disruptions in supply caused by the U.S./Israeli war with Iran. Meloni called on the European Commission to "loosen" its rules to allow member countries to reduce their energy costs through budget flexibility, which is currently reserved almost exclusively for defense and security expenditures. She said that if you asked her what the cost of defence and security was, she would say "energy" as a part of it. In a clause known as the 'National Escape Clause' (NEC), the EU allows member states to exceed their budget deficit limit in order to increase defence spending or in cases of exceptional economic hardship. The budget flexibility for defence spending is available between 2025-2028. However, an increase in the deficit must not be greater than 1.5% of the national output each year. Last year, Italy planned to increase their defence spending by 0.15 percent of GDP in 2026 and 2027. Meloni, who said the 0.15% rise would amount to 3.7 billion euro, stressed that limiting energy prices is a "top-priority" for her government.
-
Barrick appoints top executives to North American IPO
Tim Cribb, the chief operating officer, will be Wessel Hamman, the chief financial officer, of the new Barrick Mining company, which will hold the North American assets before its U.S. IPO. Both executives are insiders of the company. The Toronto Stock Exchange shares of Barrick Mining fell 3.3%, to C$53.63. This was in line with the gold price. The IPO update for its North American unit follows a year of corporate reorganization, which included the departure of former CEO Mark Bristow and a division of Barrick's business. Mark Hill was appointed to lead the planned listing of the stock market expected to be finished by the end this year. The company's goal is to increase the value and operational focus of North American Barrick. In 2025, the company produced approximately 2 million ounces gold. Barrick investors, who have a portfolio of assets spanning Papua New Guinea, Argentina and beyond, are looking for greater value at a time when gold prices are high. The miner announced plans to reduce its exposure to high-risk areas and said earlier this month that it was reviewing operations at Reko diq in Pakistan because of the current security risks. Barrick has also stated that they have been meeting with Newmont to improve the performance of Nevada Gold Mines, and will adhere to all commitments. Newmont reported in February that it had sent Barrick a default notification about NGM's poor performance. North American Barrick’s IPO was one of the most anticipated public listings this year in mining. Some analysts, however, said that Barrick’s announcement could indicate a delay in launching its IPO. Martin Pradier is a gold analyst at Veritas. He said, "My impression was that they seemed to be pushing back the IPO." Pradier suggested that it could be due to the fact that they are trying to resolve issues with Newmont and need time. Barrick has said that it is also in discussions with Newmont about the ownership of the Fourmile Gold Project. North American Barrick's NGM complex will include Carlin Cortez and Turquoise Ridge operations, which is the largest gold-producing area in the world. The project will also include the undeveloped Fourmile Gold Project located right next to NGM as well as the Pueblo Viejo Mine in the Dominican Republic. North American Barrick will likely have its primary listing located in New York and a secondary one at Toronto. Reporting by Vallari Shrivastava, Toronto, and Divyarajagopal, Bengaluru; Editing by Shailesh Kuber, Louise Heavens Alexander Smith, Tomasz J. Janowski
-
After storms and blackouts, Portugal launches a $26.5 billion plan for resilience
The government of Portugal announced on Tuesday a $26.5 billion investment program that will be implemented over a period of nine years. This programme is aimed at mitigating various risks, including climate change and power outages. The plan was developed after severe storms in central Portugal in January/February caused damage estimated at 5.3 billion euro and a devastating power outage exactly one year earlier in Spain and Portugal. The initiative named Portugal Transformation, Recovery and Resilience aims to strengthen the infrastructure, institutions, businesses, and homes against threats related to climate change, energy security and cyberattacks. The state will fund 37% of it, while private funding accounts for 34% and European funds cover 19%. Luis Montenegro, the Prime Minister, presented the plan and said that Portugal was "hit hard by extreme weather events in recent years --?droughts heavy rains, flooding, and fires -- occurring with increasing destructive power year after year". He said, "The time for action is now... we need to strengthen our country's resilience to be better prepared in the future." "Our goal is a more resilient recovery, protecting people, businesses, territory and infrastructure to better withstand risks." He highlighted an investment plan of 4 billion Euros?into electricity and gas grids, storage energy and new hydroelectric dams. The programme will seek to?expand the role of market-based instruments and insurance in managing climate-related risk. The funds allocated for the rebuilding of homes, factories, and critical infrastructure will be used in the short-term. The government has not estimated the cost of the worst blackout in history that struck?Spain? and Portugal? a year ago. However, Portugal's Industry Association AIP believes it could have resulted in losses to Portuguese businesses of over 2 billion euros.
Visa's quarterly profit increases on resilient consumer spending
Visa, the world's biggest payment processor, reported an?increased second-quarter profit?on?Tuesday. The company benefited from a steady?increase in?payment volume despite macroeconomic uncertainty.
The company has benefited from resilient spending by consumers, which has boosted transaction volumes, even though high interest rates, persistent inflation, and spillover effects from the Middle East war have weighed on the global economy.
U.S. 'consumer spending rose more than expected in march as the U.S. - Israeli?war against Iran boosted gas prices?and receipts from?service stations while tax refunds bolstered spending elsewhere.
Visa is a global digital payment network that is used every day by millions of people in more than 200 countries.
The volume of payments, which is a measure of the overall spending by consumers and businesses on Visa's network, increased 9% during the quarter ending March 31.
The company's adjusted net income was $6.3 billion or $3.31 a share for the three-month period ending March 31. This compares to $5.44 billion or $2.76 per share a year ago.
(source: Reuters)