Latest News
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The death toll in Indonesia from floods and landslides has passed 700
The disaster agency reported that the number of deaths from floods and landslides in Indonesia's Sumatra Island rose to 708 people on Tuesday as authorities raced to repair infrastructure and provide aid to areas cut off. In a late-night press conference on Tuesday, the agency said that 708 people were killed since the last week. This is a lower number than the 753 listed on the website earlier in the morning. The agency did not explain the difference. Nearly 900 people were killed by floods and land slides that wreaked havoc on Indonesia, Malaysia, and Thailand. This follows months of severe weather conditions in Southeast Asia including typhoons which struck Vietnam and the Philippines, and frequent and prolonged flooding in other parts. Local officials and environmental experts have stated that deforestation in Sumatra is responsible for a disproportionately high death toll. The Indonesian disaster agency stated that teams are prioritising the distribution of aid via land sea and air as well as clearing blocked roads and repairing damage infrastructure. Abdul Muhari, spokesperson for the company, said: "We hope we can accelerate logistics distribution." (Reporting and editing by Ananda Terresia, Martin Petty).
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Serbia will permit payments and transactions for Russian oil company NIS this Week
Serbian President Aleksandar Vucic announced on Tuesday that the government will allow payments and transactions to the U.S. sanctioned Russian oil company NIS, until the end the week. This is despite the threat of secondary sanctions. The temporary measure is intended to assist NIS with paying workers and making other transactions, after the U.S. Treasury Department placed sanctions on NIS back in October. These sanctions were part of broader sanctions against Russia's oil and gas industry following its invasion of Ukraine. They followed a series waivers that began in January. Gazprom and Gazprom of Russia, who own the majority of NIS, are required to sell their shares in the company. The U.S. has imposed sanctions on NIS because it is owned by Russians. Vucic, the Serbian president, said that payments made by Serbia's banks, including its central bank, will continue through Monday. After meeting with energy officials, he stated, "We have agreed to, at the risk to Serbia, ensure payment transactions to NIS until the weekend... in order to allow NIS workers to be paid and make payments due." Vucic stated that the only NIS-owned oil refinery in the country, which has a capacity of 4.8 millions tons, would have to close this week, unless it receives a reprieve from sanctions. The potential closure of the refinery could have a negative impact on the economy of Serbia, as NIS employs 14,000 people and contributes 5% to the GDP of Serbia, along with 10% of the budget revenues. Serbia currently imports the majority of its requirements from Hungary. Vucic warned of the logistical strains, such as the distribution of fuel at fuel stations throughout the country due to the limited storage and offloading capacity. Vucic announced last week that Belgrade would give Gazprom and Gazprom a 50-day deadline to sell their shares in NIS, or else the government would buy out NIS and take over its operations. Reporting by Ivana Sito-Sucic, Aleksandar Vaovic and Daria Sekularac; Editing and production by Jan Harvey and Bernadettebaum
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Ivory Coast cocoa regulator restricts transport permits to ease congestion in ports and boost cocoa sales
The Ivory Coast Cocoa Regulator has limited the issuances of transport permits of cocoa beans only to the ports of Abidjan or San Pedro in order to reduce congestion and to ensure that farmers receive their guaranteed farmgate prices, said its managing director on Tuesday. Kone, the director of the Coffee and Cocoa Council, explained that the congestion in exporter's factories at the beginning of the season led to a false impression of excess production. This caused bean purchases to slow down and pushed farmgate prices well below the guaranteed levels. He said that in October and November, the backlog of trucks at factories reduced incomes for producers as prices dropped from the guaranteed farmgate rate of 2,800 CFA Francs ($4.95) per kilo to 2,500 CFA Francs. "We will only approve (beans') transport in accordance with each factory's capacity to unload. Kone explained that, for example, if the factory is only able to unload 16 trucks a day, only 16 trucks would be allowed to transport cocoa in its name. He also added that this measure has reduced port congestion and increased market efficiency. These restrictions have reduced the long-term sales delays that previously forced farmers to either sell at a discount or wait for weeks before receiving payment. Kone said that December is the peak production period, and prompt action has improved conditions from the last week in November. Kone is concerned about a decline in cocoa production. The CCC estimates that production for the main harvest of this year will be only 1.3 millions tons, down from 1.7million tons three years earlier. He said that the situation is unlikely to change for several years, due to the large investments needed to get back to prior levels. Kone, despite lower production, said that the regulator was pleased with sales. However, he described the situation for the long-term prospects of the sector as difficult.
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Airbus CEO studies impact of December latest problem following 'weak November'
Airbus CEO Guillaume Faury said on Tuesday that the company is evaluating its impact on year-end delivery of a newly found fuselage issue on some A320 jets. This led to "weakness" in November handovers. In his first public comments on the matter, he stated that the problem had brought "another obstacle" to the already-backlogged year-end deliveries. The planemaker will assess the situation in the coming hours and days for deliveries to December. Faury stated in an interview at the ASD conference, which is an association of the aerospace industry, that Airbus will hold calls on Tuesday evening to assess the impact the problem has had on its operations. The first report was made by the ASD on Monday. Airbus is aiming to meet its year-end goal of 820 aircraft handovers. He confirmed the delivery problem in November, but did not confirm if it would continue into December. Faury stated, "We had an extremely weak November due to the fact that we had to stop aircraft in the middle of the production process to deliver them: aircraft that were finished but had a question on their panels." "We must assess the status of these aircraft, and those that will be delivered and produced before the end the year. This creates a new challenge for December which is already very behindloaded. Faury responded to the question of whether Airbus would still be able to carry out their plans for this month: "We'll take the next few hours and days to assess the situation fully and decide what the best course of action is." Reports on Monday stated that Airbus delivered 72 aircraft less than expected in November. Airbus refused to comment before a report on monthly orders and delivery due out Friday. (Reporting and editing by Jan Harvey, Alexander Smith, and Tim Hepher)
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Gasgrid Finland wants to expand its transmission network
Gasgrid, the operator of Finland's natural gas distribution system, said Tuesday that it was considering expanding its pipeline network in Western Finland to accommodate plans for building synthetic methane plants. The production of synthetic methane from electricity is part of Finland’s larger decarbonisation campaign to accelerate the use of renewable and low carbon gases in industry. In a press release, Gasgrid's Janne Gronlund stated that the expansion of the system would not only support reliable energy supplies but also Finland's supply security. Grid operator estimates that planned renewable gas production could increase supply in the region by 3-4 Terawatt Hours (TWh), which is equivalent to 25% of Finland’s current gas consumption. Gasgrid stated that the network expansion section being investigated would be between 250 and 350 kilometers long. The expansion of the transmission network in western Finland could be completed in five to ten years if implemented. (Reporting and editing by Terje Solsvik, Jagoda Darlandak)
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India investigates Air India for multiple flights without safety certificates
India's aviation regulator announced on Tuesday that it is investigating Air India for operating an Airbus A320 aircraft without a valid certificate of airworthiness, which ensures compliance with safety regulations. The Directorate General of Civil Aviation said that it also had grounded the aircraft, and de-rostered 'concerned staff. The DGCA didn't specify the type and manufacturer of the aircraft, but a source with direct knowledge said it was a single-aisle Airbus jet. The regulator had previously warned the airline about various issues, including fatigue management and crew training. Air India's spokesperson issued a statement saying that the incident in which one of their aircraft operated without an airworthiness certificate was regrettable. The airline has suspended the personnel involved with the decision pending further investigation. Airbus didn't immediately respond to our request for comment. (Reporting and editing by Abinaya VIjayaraghavan and Abhijith GANAPAVARAM; Janane VENKATRAMAN, Bernadette BAUCH)
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Metro Pacific Tollways issues $342 million in maiden bonds at the Philippine Stock Exchange
Metro Pacific Tollways Corp, the operator of Philippine toll roads, announced on Tuesday that it had listed its first 20 billion peso ($341.63m) peso-bond issue on the Philippine Dealing & Exchange Corp. The company stated that the bonds were sold as three series, with fixed rates of 5.5443 percent for three years to be due in 2028, 5.879% cents for five years to be due in 2030, and 6.3069 cents for ten years to due in 2035. Metro Pacific Tollways reported that the offer had been more than three-fold subscribed compared to a base of 15 billion pesos. The proceeds will be used to construct and maintain toll roads including the Manila Cavite Expressway (MCX) and Cavite Laguna Expressway (CVE), as well as for new corporate investments and general purposes. Philippine Rating Services Corp has rated the bonds PRS Aaa, with a stable outlook. BPI Capital Corp. and First Metro Investment Corp. were joint issue managers. BDO Capital, China Bank Capital PNB Capital, Security Bank Capital and Security Bank Capital also acted as joint underwriters and lead bookrunners. $1 = 58.5430 Philippine Pesos (Reporting and Editing by Louise Heavens, Yantoultra Ngui)
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Sources say that Chinese autonomous driving company Momenta has filed for Hong Kong IPO.
Two people familiar with the matter have confirmed that Chinese autonomous driving developer Momenta filed a confidential application for an initial public offering in Hong Kong. Sources said Momenta has joined a growing number of Chinese companies that are looking to make their debut in the Asian financial centre, having opted out New York due to increased tensions between the U.S. and China. Reports in September indicated that Momenta considered moving its IPO from New York to Hong Kong, after the approval granted by China's securities regulatory authority to list in the United States expired in June. The details of the Hong Kong IPO plan, including its size and timing, was not immediately available. Momenta, backed by investors like Toyota Motor of Japan and Bosch, a German auto parts manufacturer, has not responded to comment requests. Hong Kong Exchanges and Clearing Ltd. (HKEX), Hong Kong's exchange operator declined to comment. Sources could not be identified as the information is confidential. Hong Kong's stock exchange has enjoyed its best year of new listings since the year 2021. Dealogic data shows that a total of $32 billion was raised by mid-November. This is up 200% compared to a year ago. Momenta, a Chinese company that provides advanced driving assistance features similar to Tesla's technology for self-driving cars, can help drivers navigate city traffic while under the supervision of a human driver. (Reporting and editing by Emelia Sithole Matarise; Staff Reporting)
Sources say Citigroup will be charged $5 million to transport lead from Singapore.
Sources say that Grafton stored Citi's lead under a rental agreement.
Trafigura has recently acquired Grafton
Citi Looking at Taiwan and Malaysia
By Pratima Desai
Three sources familiar with the situation said that Citigroup would move its lead stocks out of Singapore and into Malaysia or Taiwan, at a cost estimated to be $5 million, due to a lack in storage space, as well as a lack of rent deals.
After Trafigura purchased the warehouse company, Citi decided to remove its lead stocks and search for other rent deals.
London Metal Exchange-approved warehouses are sharing rental income from their approved warehouses with the companies delivering metal.
Sources said that on October 9 Citi cancelled or designated for delivery almost 112,000 metric tonnes of lead stored in London Metal Exchange-approved warehouses in Singapore. By November 28, more than 90,000.0 tons of battery metal had been delivered.
Two sources familiar with this matter say that Citi will keep 24,000 tonnes in Singapore and 88,000 tons likely to go to Taiwan or Malaysia. Citi declined to comment.
Citi declined to make a comment.
The shipping costs include the freight, handling fees and LME storage fees. This is also known as "free-on-truck". Metal-delivery companies pay FOT, while metal-storage companies receive FOT.
Citi will pay S$68.50, or $53 per ton for the metal taken from LME facilities in Singapore. Delivering to Malaysian warehouses would bring in 162.50 Ringgit or $39 per ton. The FOT rate for Taiwan is T$1,455, or approximately $46.
Sources said that shipping costs for Taiwan are estimated at $50 per ton and for Malaysia they are $40, making the total cost of 88,000 tons near $5 million.
Citi traders has in the past used lease agreements for Aluminium and Zinc in LME Warehouses.
The companies that deliver the metal are not required to keep ownership, but they do get a portion of the rent for as long as it stays in the storage facility. The new owners pay the fees. (Reporting and editing by Louise Heavens; Pratima Dasai)
(source: Reuters)