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Aeromexico, backed by Apollo, raises $223 million at the long-awaited US IPO
The long-awaited U.S. IPO of Grupo Aeromexico, backed by Apollo, raised $222.8 millions on Wednesday. This marks the start of the Mexican airline's return to the public markets nearly four years after its exit from bankruptcy. Stock market valuations have reached record highs due to optimism around artificial intelligence, falling interest rates and Washington's political gridlock following U.S. Tariffs. Aeromexico, along with some of its shareholders, sold 11,7 million American Depositary Shares for $19 per share. This was within the range of $18-$20. Aeromexico's IPO value was $2.77 billion, ahead of its debut Thursday on the New York Stock Exchange. It will trade under the ticker "AERO". The company, backed by U.S. airline Delta and alternative asset manager Apollo Global, filed its first public application for an American listing last year before putting it on hold. In February, CEO Andres Conesa canceled plans to list the company when tariffs were imposed by President Donald Trump on Canada and Mexico. The Trump administration is pursuing a crackdown on Mexican airlines, citing issues of competition. Trump's Department of Transportation revoked the approval of several routes for Mexican carriers to enter the U.S. They also launched a campaign against the joint venture between Delta and Aeromexico that allowed the carriers to coordinate the scheduling, pricing, and capacity of U.S. - Mexico flights. Aeromexico, a legacy airline, had been listed on Mexico's principal stock exchange for many years before it was delisted as part of Chapter 11 bankruptcy procedures, which ended in 2022. Barclays is the leading book-running manager, followed by Morgan Stanley, J.P. Morgan, and Evercore. Reporting by Ateev Bhhandari in Bengaluru and Abu Sultan; editing by Alan Barona and Harikrishnan Nair.
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MSCI adds Paytm and 3 other Indian companies to its flagship global index
MSCI, the index provider, announced late Wednesday that it will include four India-listed firms, including Fortis Healthcare, Paytm and fintech company Paytm, in its Global Standard Indexes, as part of a quarterly review, effective November 24. Siemens Energy India and GE Vernova T&D India, two power companies, are also joining the index. Nuvama estimates that the inclusion of four Indian stocks into MSCI's Global Standard Indexes will attract a total of $1.46 billion in inflows. MSCI indexes are key benchmarks used by global investors. They manage approximately $18,3 trillion in assets. Even small changes in the index composition can have a significant impact on fund flows. Index provider also plans to remove IT company Tata Elxsi from its flagship index and logistics company Container Corporation of India, causing outflows of approximately $162 million each. Eight Indian stocks will also see an increase in weight, while seven others will experience a decrease. Asian Paints (along with Apollo Hospitals), Lupin and SRF are among the eight stocks that have gained a higher weighting in MSCI’s index. In the most recent review, Zydus, Dr. Reddy, REC and Samvardhana motherson have been given less weight. Abhilash Pagariya, the head of Nuvama Quantitative & Alternative Research, stated that India's overall weight in MSCI Standard Index would rise from 15.5% to 15.6%. The index provider added Swiggy and Vishal Mega Mart to its flagship index in its August quarterly review. As part of the latest quarterly review, MSCI will also include six Indian stocks in its Global Small-Cap Indexes and remove 30 others. IIFL reported that the increase in exclusions comes as a result of an increase in the global minimum capitalisation size requirement from $448 to $404 millions. India had the second highest number of small-caps excluded globally, after the United States. This highlights the impact of tighter eligibility criteria for smaller firms.
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Boeing settles with the families of three 737 MAX crash victims
Attorneys representing the families said Wednesday that Boeing had reached settlements with respect to three lawsuits filed by families of those killed in the Ethiopian Airlines Boeing 737 MAX crash in March 2019. The U.S. District Court of Chicago had already selected a jury for one case. Terms of settlements have not been released. Boeing did not respond immediately to a comment request. Ethiopian Airlines Flight 302 crashed five months after Lion Air Flight 609 Another 737 MAX crashed into the Java Sea. An Automated flight control system Both crashes resulted in the deaths of 346 individuals. According to an earlier statement, the U.S. aircraft manufacturer has settled over 90% of civil suits related to two accidents. This includes lawsuits, deferred prosecution agreements, and other payments. Mercy Ngami Ndivo and Abdul Jalil Qaid Ghazi Hussein, as well as Nasrudin Mohammad had Kenyan roots. Robert Clifford of Chicago represented their families. He was appointed as lead counsel to represent the majority plaintiffs in the Ethiopian Airlines case. Boeing lost more than $20 billion in the wake of these two accidents. (Reporting from Seattle by Dan Catchpole; editing by Kate Mayberry).
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The death toll from Typhoon Kalmaegi has reached 114 in the Philippines. As it moves to Vietnam, its strength is regaining.
The disaster agency reported on Thursday that the death toll from the Philippines' Typhoon Kalmaegi has risen to 114, with 127 still missing. As the storm, which devastated the central areas of the country, gained strength and headed toward Vietnam, it was able to gain more power. Authorities in Vietnam's Gia Lai Province warned that heavy rains and damaging wind could disrupt agricultural activities and cause flooding. As floodwaters receded in Cebu, Philippines, the extent of the damage became more apparent. Homes were flooded, cars were flipped over, and the streets were choked with debris. In the Philippines, more than 200,000 people evacuated before Kalmaegi hit on Tuesday. Others have started the difficult task of cleaning up their streets and houses after returning to their homes. The challenge is now debris removal... "The challenge now is debris clearing... NEW STORM DEVELOPING As the typhoon Kalmaegi (locally known as Tino) left the Philippine monitoring zone weather forecasters tracked a developing storm east of Mindanao which could intensify into a super typhoon. This raised concerns about potential impacts for early next week. Kalmaegi is the Philippines' 20th storm of the year. It comes less than a month after the magnitude 6.9 earthquake that struck northern Cebu and killed dozens. Kalmaegi was strengthening as it moved across the South China Sea, before its landfall on Vietnam. The storm is expected to affect several provinces in the central region, including coffee-growing regions where harvest is underway. The authorities mobilized thousands of soldiers for potential evacuations, rescue missions, and recovery efforts. Vietnam's aviation authority said that operations at eight airports including the international Da Nang airport are likely to be impacted. To ensure passenger safety, airlines and local authorities were urged to closely track the storm's progression.
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Trump suffers political setback as Democrats whip up voter anger over price
The White House planned a Wednesday anniversary launch to highlight the Republican leader's promises since his return to office. Trump and his Republican allies faced a series of Democratic victories during off-year elections. This was a rare setback as voters in several states showed resistance to Trump's agenda. Trump's reaction was predictable. Trump is known for his ability to resist defeat. He criticized Democrats for the longest government shutdown in U.S. History, which he claimed contributed to the party's loss. He urged Republicans to change Senate Rules to make it easier to advance his agenda. But he also acknowledged that the night had not gone well for Republicans and, somewhat uncharacteristically, suggested they had lessons to learn from their loss. Trump said to lawmakers of his party early Wednesday morning at the White House, "Exactly one-year ago we achieved that beautiful and big victory." "Last night wasn't expected to be a win. "I don't believe it was good news for Republicans." He added, "I don't think it was good for anyone, but we did have an interesting evening and learned a great deal." The Democratic victories in New Jersey and New York, driven by concerns about cost of living, highlight the challenges that Trump and the Republican Congress will face in 2026 when it comes to addressing the frustrations of voters with the economy. The election of Tuesday also brought a populist dynamic leader to the forefront, with Zohran Mdani becoming the new mayor of New York. This created a natural counterpoint for the president who is a New Yorker and likes to call the 34-year old a communist. Mamdani, a democratic socialist, is the mayor of New York. Mamdani could be a serious threat to Trump in terms of his ability to appeal to the populist side of the electorate. In both New Jersey as well as Virginia, two thirds of the voters said that they were dissatisfied with or angry at the direction in which the U.S. is heading. Democrats were able to win over 75% of these voters. Democrats also won a majority of voters who stated that their family's finances were either stable or declining. Vice president JD Vance stated on Wednesday that it is "idiotic" to react too strongly to a few elections in states with a Democratic lean. He suggested Republicans focus on the economy. He wrote, "We must focus on our home front." "We will continue to work to make a decent lifestyle affordable in this nation, and that is the metric we'll be judged by in 2026 and beyond." AFFORDABILITY IS WHITE HOUSES' TOP AGENDA The White House official stated that the message of the administration going into the midterms will be directed towards the affordability issue. Trump himself ran successfully on this issue in his 2024 campaign, against Democrats Joe Biden & Kamalah Harris. The official stated, "We remind voters that this is the way we win: by speaking about costs that impact their wallets." Some Republican strategists noted that Trump's efforts to lower prices have not been helped by tariffs. They also said that voters needed to see him focus more on domestic issues than foreign policy. The president has used tariffs to gain international attention and has spent considerable time in recent weeks seeking peace in the Middle East, and between Russia, and Ukraine. John Feehery, Republican strategist, said that Trump's problem is that he is trying to save the entire world while he forgets about his own people, who are not doing well. "He should spend less time running around and focus more on the problems at home." Trump's remarks at the Miami Economic Conference on Wednesday were dominated by praise for his peace efforts, but he barely acknowledged Republican election losses. He began his speech by noting that it had been one year since "the single most consequential electoral victory in American History" and he said Americans "restored their sovereignty" when they put him in office. Trump said, "We lost a bit of sovereignty in New York last night," in an apparent dig at Mamdani. "But we will take care of it." Do not worry. Reporting by Jeff Mason, with additional reporting by Nandita BOSE, Tim Reid and Jason Lange; editing by Colleen JENSEN and Howard GOLLEY.
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Energy Transfer won't greenlight Lake Charles LNG before 80% of the project is sold to equity partners
Energy Transfer, the U.S. pipeline company, will not approve a financial decision for its Lake Charles Liquefied Natural Gas export facility until at least 80% of it has been sold to equity investors. This was announced on Wednesday during a conference call following earnings. Energy Transfer is developing a 16.5 million metric tonne per annum LNG facility in Louisiana. It has already sold the majority of its expected production to customers who have been with them for a long time. However, the project costs are increasing and Energy Transfer wants to share this risk with other equity investors. The company signed an agreement earlier this year with MidOcean Energy for the joint development of the Lake Charles LNG Export Facility. MidOcean will pay 30% of construction costs and receive 30% from the LNG production. This is approximately 5 million metric tons per year (MTPA). (Reporting and editing by Chris Reese; Curtis Williams and Georgina McCartney in Houston)
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CANADA-CRUDE-Discount on Western Canada Select widens
On Wednesday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) widened. CalRock reported that WCS for Hardisty, Alberta December delivery settled at $11.25 per barrel below the U.S. benchmark WTI. This compares to Tuesday's closing price of $11.05. Rory Johnston is the founder of Commodity Context, a newsletter that provides a monthly commodity market analysis. He said, "The differentials are slightly higher this month than last, but they're still very healthy for prevailing seasonal standards." The big test is how these differentials will hold up over the colder months, said Rory Johnston. He added that winter has traditionally been when the WCS value was weighed down due to the combination of Midwestern turn-arounds and a higher demand on Western Canadian takeaway capacities driven by cold-weather dilutient requirements. The price of WCS continues to be supported, in part, by the Trans Mountain Pipeline expansion. This has allowed for strong purchases of Canadian crude oil off the Pacific Coast, particularly by China. * Oil prices dropped more than 1% Wednesday and settled at two-week lows, on the back of concerns about a possible oil glut in the world. However, data indicating a strong demand for fuel in the United States limited losses. (Reporting from Amanda Stephenson, Calgary; Editing Shilpi Magumdar)
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Sources say that Trump pressed China’s Xi for the release of a jailed Hong Kong media tycoon.
According to three people who were briefed about the meeting and a U.S. government official, U.S. president Donald Trump made a direct appeal to China's Xi Jinping for the release of Hong Kong media tycoon Jimmy Lai while the two leaders met last week in South Korea. One person said that Trump didn't discuss a specific agreement to free Lai, but instead spoke about his concerns for the health and well-being of the 77-year old publishing mogul after he had been on trial over national security charges. The person said that Trump discussed the matter for less than five minutes. The official said that President Trump had brought up Jimmy Lai, as he had promised. Both President Trump and president Xi participated in the subsequent discussion. A third person, speaking on the condition of anonymity due to the sensitive nature of the meeting between the two leaders, said: "It was raised and noted by Xi." The person who said Trump suggested Lai's release was good for U.S. China relations and China's image. Trump's intervention is coming as Lai awaits the verdict of a trial widely viewed as a symbol for China's crackdown against rights and freedoms within Asia's financial hub, under a law on national security imposed following mass pro-democracy demonstrations in 2019. Lai, the founder of Apple Daily, a pro-democracy tabloid that has since been shut down, pleaded no contest to two counts of conspiracy to collide with foreign forces and one charge of conspiracy for publishing seditious materials. The U.S. President said before the talks that he intended to bring up Lai's issue, but neither he or both sides' readings afterwards mentioned it. The White House refused to comment on the questions raised about Lai during the Trump-Xi summit. The White House has not confirmed whether Trump raised the issue. Liu Pengyu is the spokesperson for China’s embassy in Washington. He said that he did not know any details about Lai, but emphasized that Lai’s “crimes” have severely undermined Hong Kong’s prosperity and security. Liu stated that "any attempt to interfere with Hong Kong's judicial system or undermine the rule-of-law in Hong Kong won't succeed". Lai, a British national, has caused friction between Washington DC and Beijing. Trump had said during his presidential campaign last year that he was "100%" committed to getting Lai out. Sebastien Lai praised Trump last week and said he felt "incredibly grateful", following unconfirmed earlier reports that Trump raised his father’s case with Xi. Sebastien lai, in a press release, said: "Knowing that President Trump is known as the Liberator-in-Chief I pray that his commitment and continued support will convince President Xi of my father's freedom before it's too late." Trump hailed as a great success the trade-dominated discussions with Xi, pointing out also the progress made on rare earth shipments. He also promised "strong action" against the export of chemicals that are used to make the highly addictive fentanyl. He claimed that tensions regarding Taiwan were never raised during the 90-minute discussions in South Korea. Lai, according to his family members and rights groups, has been in solitary confinement more than 1,700 day since his trial ended at the end of August. He is now held in maximum security Stanley Prison while he waits for a verdict and sentence. His lawyers told the court that he was suffering from heart palpitations. He has received a heart monitor as well as medication. Reporting by Greg Torode, James Pomfret and Michael Martina in Hong Kong; Trevor Hunnicutt and Antoni Slodkowski in Washington. Editing by Antoni Sladoski and Daniel Wallis.
Apollo-backed Aeromexico raises $223 million in long-awaited US IPO
The long-awaited U.S. IPO of Grupo Aeromexico, backed by Apollo, raised $223 million on Wednesday. This marks the start of the Mexican airline's return to the public markets nearly four years after its exit from bankruptcy.
AI exuberance, falling interest rates and record equity valuations have fueled confidence in a IPO market recovery. However, the partisan gridlock of Washington has renewed pressure on it after U.S. Tariffs delayed all listing in April.
Aeromexico, along with some of its shareholders, sold 11,7 million American Depositary Shares for $19 per share. This was within the range of $18-$20.
Aeromexico's IPO value was $2.77 billion. It will be trading at the New York Stock Exchange on Thursday under the ticker "AERO". Reporting by Ateev Bhhandari in Bengaluru and Abu Sultan; Editing by Alan Barona, Harikrishnan Nair
(source: Reuters)