2024-10-04 20:55

Arcadium could be valued between $4 billion-$6 billion or higher Talks have been ongoing and continued in London this week- sources Arcadium shares up 36% after hours Oct 4 (Reuters) - Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab has been holding talks to buy lithium miner Arcadium (ALTM.N) , opens new tab, three sources with direct knowledge of the negotiations said, a deal that would make Rio the third-largest producer of the electric vehicle battery metal. Arcadium shares surged 36% in extended trading on Friday. Talks have been ongoing and continued in London this week during the LME Week conference, one of the sources said. An offer is expected to come in the near future, according to the second source. Talks are ongoing and may not necessarily result in a deal, the sources said. Philadelphia-based Arcadium could be valued between $4 billion to $6 billion or higher, the third source said. None of the sources were authorized to discuss the negotiations publicly. The deal would vault Rio into one of the world's largest suppliers of the ultralight metal, behind only Albemarle (ALB.N) , opens new tab and SQM (SQMA.SN) , opens new tab, just as demand is expected to surge later this decade amid growing use of lithium-ion batteries for EVs and consumer electronics. The recent slump in lithium prices, which is due in part to Chinese oversupply, has pushed Arcadium's shares down more than 50% since January, making it an attractive takeover target. It was not immediately clear if a transaction would primarily include cash, stock or a mixture of both. Arcadium has selected two investment banks to handle its negotiations with Rio, according to the second source. By buying Arcadium, Rio would gain access to lithium mines, processing facilities and deposits across four continents to fuel decades of growth, as well as a customer base that includes Tesla (TSLA.O) , opens new tab, BMW (BMWG.DE) , opens new tab and General Motors (GM.N) , opens new tab. Arcadium and Rio Tinto declined to comment. The Anglo-Australian mining company is already one of the world's largest producers of copper - used to make wiring, construction equipment, electronics and other devices - as well as iron ore and other metals. Arcadium has around 2,400 employees across nine countries. Roughly 84% of its revenue comes from Asia - the existing global center for lithium demand - giving it growth potential as EV projects ramp up across the Western Hemisphere, especially those supported by the U.S. Inflation Reduction Act. Rio faces strong opposition in Serbia to its proposed Jadar mine, for which it recently regained its license. Local community members have repeatedly pressured Belgrade to block the project, which has the potential to supply much of Europe's needs of the battery metal. Arcadium believes it is unlikely Rio will ever be able to develop the Serbian project, the second source said. Rio could also benefit from Arcadium's expertise in direct lithium extraction, a growing segment of the lithium industry that aims to mechanically filter the metal from brines. No company has commercially launched a DLE process without evaporation ponds, but Arcadium has successfully been using DLE since the 1990s with ponds in Argentina and its engineers are widely seen as global experts. Rio paid $825 million in 2022 for a DLE project in Argentina that has yet to produce the metal. 'THE FULL PACKAGE' Arcadium was formed only in January by the merger of U.S.-based Livent and Australia-based Allkem, with each company getting an equal number of slots on the company's 12-person board of directors. Speculation of a potential tie-up between Arcadium and Rio has floated for weeks. "Arcadium offers Rio the full package," Scotiabank analysts said on Sept. 10, adding that "the case (for a buyout) has strengthened." At a presentation to investors on Sept. 19, Arcadium laid out an aggressive growth strategy to nearly triple its adjusted earnings by 2028 by developing its lithium projects across the globe. Rio's interest in Arcadium comes amid a rising wave of deal interest across the mining industry, especially for critical minerals needed to power the global energy transition. BHP (BHP.AX) , opens new tab - the world's largest miner - earlier this year made an unsuccessful bid for smaller rival Anglo American (AAL.L) , opens new tab. Glencore (GLEN.L) , opens new tab, BHP and others are seen as potential bidders for other critical minerals projects. Sign up here. https://www.reuters.com/markets/deals/rio-tinto-talks-buy-lithium-miner-arcadium-sources-say-2024-10-04/

2024-10-04 20:54

Justices deny emergency requests to halt EPA rules Challengers argue EPA exceeded its powers EPA says rules benefit public health, climate WASHINGTON, Oct 4 (Reuters) - The U.S. Supreme Court declined on Friday to put on hold new federal air pollution rules from President Joe Biden's administration to tighten limits on mercury and methane, acting in challenges brought by a group of states - most of them Republican-led - and industry groups. The justices denied emergency requests by the states, as well as power and mining, oil and gas companies, to halt the Environmental Protection Agency rules while litigation continues in lower courts. The regulations, issued under the landmark Clean Air Act anti-pollution law, aim to cut mercury and other metals from coal-fired power plants emissions, as well methane and other gases known as volatile organic compounds from oil and gas production. The mercury rule tightened limits on emissions of toxic metals for all coal plants by 67% and tightened limits on mercury emissions from lignite coal plants by 70%. The methane rule restricted flaring - the burning of excess methane during oil and gas production - and required oil companies to monitor for leaks from well sites and compressor stations. It also created a new program for detecting and reporting large methane releases from so-called "super emitters." The challengers contend that the EPA exceeded its powers in issuing unjustified rules that threaten the U.S. electricity supply and usurp the role of states in establishing emissions standards. The regulations would benefit public health and the climate, the EPA said. The mercury rule reduces the risk of heart attacks and cancer caused by such pollutants, as well as developmental delays in children, while reining in methane, which has more warming potential than carbon dioxide and breaks down in the atmosphere more quickly, can have a more immediate impact on limiting climate change, according to the EPA. Challengers including the states, fossil-fuel industry groups, as well as power, mining and oil and gas companies filed multiple lawsuits in the U.S. Court of Appeals for the District of Columbia Circuit, which in July and August denied requests to pause the regulations pending its review. The Supreme Court, which has a 6-3 conservative majority, has restricted the powers of the EPA in some important rulings in recent years. In June, the court blocked the EPA's "Good Neighbor" rule aimed at reducing ozone emissions that may worsen air pollution in neighboring states. In 2023, the court hobbled the EPA's power to protect wetlands and fight water pollution. In 2022, it imposed limits on the agency's authority under the Clean Air Act to reduce coal- and gas-fired power plant carbon emissions. Sign up here. https://www.reuters.com/world/us/us-supreme-court-declines-pause-epa-mercury-methane-rules-2024-10-04/

2024-10-04 20:53

Biden administration appeals lower court ruling Nuclear waste storage facility planned for Texas U.S. agency sued by Texas, New Mexico, oil interests Oct 4 (Reuters) - The U.S. Supreme Court agreed on Friday to decide whether the Nuclear Regulatory Commission has the authority to license nuclear waste storage facilities following a judicial ruling that upended decades of practice by declaring it does not. The justices took up appeals by President Joe Biden's administration and a company that was awarded a license by the NRC to build a waste storage facility in western Texas of the lower court's ruling. The license was challenged by the states of Texas and New Mexico, as well as oil industry interests. The Supreme Court will hear arguments in the case in its new term, which begins on Monday, and a decision is expected by the end of June. The Supreme Court, which has a 6-3 conservative majority, has shown skepticism toward the authority of federal regulatory agencies in several major rulings in recent years. The NRC, the federal agency tasked with regulating nuclear energy in the United States, issued the license in 2021 to Interim Storage Partners, a joint venture of France-based Orano and Dallas-based Waste Control Specialists. While two other federal appeals courts rejected legal challenges to the license, the New Orleans-based 5th U.S. Circuit Court of Appeals ruled in favor of the plaintiffs and decided that the NRC lacked authority under a federal law called the Atomic Energy Act of 1954 to issue the license at all. The administration has said the ruling would disrupt the nuclear energy sector. The NRC has issued licenses like the one at issue in this case for the temporary storage of spent fuel produced by nuclear reactors since 1980 in recognition that the nuclear-power industry would need more space for the off-site storage of the radioactive waste. It did so pursuant to its authority under the Atomic Energy Act to issue licenses to possess nuclear material. Such sites have continued to be licensed, with a proposal to permanently store the nation's radioactive waste at Yucca Mountain north of Las Vegas stalled following decades of opposition in Nevada. In the 5th Circuit ruling against the license, Judge James Ho, an appointee of Republican former President Donald Trump, cited a different law, the Nuclear Waste Policy Act, that was amended in 1987 to designate Yucca as the sole permanent storage site for such radioactive waste. Interim Storage Partners planned to operate its nuclear storage facility in Andrews County, Texas. The plan drew opposition from oil- and gas-related organizations because the facility would be operated within the Permian Basin, the highest-producing oil field in the country. Texas and New Mexico were joined in the litigation challenging the license by Fasken Land and Minerals, a Texas-based oil and gas extraction organization, and a nonprofit group called the Permian Basin Coalition Of Land And Royalty Owners And Operators. The plaintiffs argued that allowing the proposed facility to be built posed environmental risks to watersheds covering nearly all of New Mexico and Texas, and that a radiation leak could be economically disastrous for oil and gas operations. "For years, the Nuclear Regulatory Commission and two private corporations have attempted to force Texas and New Mexico into accepting stockpiled radioactive waste," Monica Perales, an attorney for Fasken Oil & Ranch, said on Friday. The commission "lacks the authority to issue licenses for consolidated interim storage of spent nuclear fuel in a region hundreds and even thousands of miles away from the reactors that generated the waste," Perales added. Sign up here. https://www.reuters.com/legal/us-supreme-court-hear-nuclear-waste-storage-dispute-2024-10-04/

2024-10-04 20:48

US job growth surges in Sept; unemployment rate falls to 4.1% Spirit Airlines tanks after report of bankruptcy filing Energy sector climbs for the week with Middle East tensions up Indexes: Dow up 0.8%, S&P 500 up 0.9%; Nasdaq up 1.2% NEW YORK, Oct 4 (Reuters) - The Dow posted a record closing high on Friday and the Nasdaq ended with a more than 1% gain as a stronger-than-expected jobs report reassured investors who had worried the economy may be getting too weak. U.S. job gains increased in September by the most in six months, and the unemployment rate fell to 4.1%, the report showed. The data "basically tells us economic activity in the fourth quarter is likely to remain at a solid pace," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "It's a good surprise, but I also think it may now slow the pace of rate cuts." Traders further reduced bets on a 50-basis-point reduction at the Federal Reserve's Nov. 6-7 meeting. Traders are now pricing in just an 8% chance of a 50-bps rate cut, down from around 31% earlier on Friday, the CME Group's FedWatch Tool showed. The Fed kicked off a monetary easing cycle last month with a 50 basis point rate cut. Small caps and financials outperformed, with the Russell 2000 (.RUT) , opens new tab index up 1.5% and the S&P 500 financials index (.SPSY) , opens new tab up 1.6%. Spirit Airlines (SAVE.N) , opens new tab shares dropped 24.6% while other airlines jumped after a report showed , opens new tabSpirit was in talks with bondholders about a potential bankruptcy filing. Frontier Group (ULCC.O) , opens new tab shot up 16.4%, while United Airlines (UAL.O) , opens new tab rose 6.5% and Delta Air Lines (DAL.N) , opens new tab climbed 3.8%. The Dow Jones Industrial Average (.DJI) , opens new tab rose 341.16 points, or 0.81%, to 42,352.75, the S&P 500 (.SPX) , opens new tab gained 51.13 points, or 0.90%, to 5,751.07 and the Nasdaq Composite (.IXIC) , opens new tab added 219.37 points, or 1.22%, to 18,137.85. Indexes registered just slight gains for the week following worries about increasing tensions in the Middle East. The Dow was up 0.1%, while the S&P 500 was up 0.2% and the Nasdaq was up 0.1%. The S&P energy index (.SPNY) , opens new tab rose 1.1% on the day along with higher oil prices. With the Middle East concerns, the index jumped 7% for the week in its biggest weekly percentage gain since October 2022. U.S. President Joe Biden said that if he were in Israel's shoes, he would think about alternatives to striking Iranian oil fields, adding he thinks Israel has not yet concluded how to respond to Iran's missile barrage this week. Rivian (RIVN.O) , opens new tab shares fell 3.2% after the electric vehicle startup cut its full-year production forecast and delivered fewer vehicles than expected in the third quarter. Third-quarter earnings for S&P 500 companies are expected to unofficially begin next week. Major financial firms highlight next week's reports, with JP Morgan Chase (JPM.N) , opens new tab, Wells Fargo (WFC.N) , opens new tab and BlackRock (BLK.N) , opens new tab due on Oct. 11. Bullish investors are hoping results will justify increasingly rich valuations in the stock market. The S&P 500 is up 20.6% for the year so far. U.S. ports on the East and Gulf coasts reopened, but clearing the cargo backlog will likely take time. Advancing issues outnumbered declining ones on the NYSE by a 1.72-to-1 ratio; on Nasdaq, a 2.20-to-1 ratio favored advancers. The S&P 500 posted 33 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 98 new highs and 91 new lows. Volume on U.S. exchanges was 10.91 billion shares, compared with the 12.03 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-steady-before-key-payrolls-data-investors-weigh-middle-east-risks-2024-10-04/

2024-10-04 20:46

LATEST DEVELOPMENTS Blast heard early on Saturday after Israeli warnings US 'alarmed' by death of American Biden says would think of alternatives to striking Iranian oil fields if he were Israel U.N. says civilian toll 'totally unacceptable' BEIRUT/JERUSALEM, Oct 4 (Reuters) - Israel said it had targeted the intelligence headquarters of Hezbollah in Beirut and was assessing the damage on Friday after a series of strikes on senior figures in the group that Iran's Supreme Leader dismissed as counterproductive. Israel has been weighing options in its response to Iran's ballistic missile attack on Tuesday, which Iran had carried out in response to Israel's military action in Lebanon. Oil prices have risen on the possibility of an attack on Iran's oil facilities as Israel pursues its goals of pushing back Hezbollah militants in Lebanon and eliminating their Hamas allies in Gaza. The air attack on Beirut, part of a wider assault that has driven more than 1.2 million Lebanese from their homes, was reported to have targeted the potential successor to the leader of Iran-backed Hezbollah, Sayyed Hassan Nasrallah, killed by Israel a week ago. Hashem Safieddine's fate was unclear and neither Israel nor Hezbollah have offered any comment. A blast was heard and smoke was seen over Beirut’s southern suburbs early on Saturday, Reuters witnesses said, as the Israeli military issued three alerts for residents of the area to immediately evacuate. The first alert warned residents in a building in the Burj al-Barajneh neighbourhood and the second in a building in Choueifat district. The third alert mentioned buildings in Haret Hreik as well as Burj al-Barajneh. In a statement early on Saturday, Hezbollah also said the Israeli army was trying to infiltrate the Lebanese southern town of Odaisseh and that clashes there were ongoing. U.S. President Joe Biden said on Friday he would think about alternatives to striking Iranian oil fields if he were in Israel's shoes, adding that he thinks Israel has not yet concluded how to respond to Iran. Biden was asked at a White House press briefing if he thought that by not engaging in diplomacy, Israeli Prime Minister Benjamin Netanyahu was trying to influence the Nov. 5 U.S. election in which Republican former President Donald Trump faces Democratic Vice President Kamala Harris. "Whether he is trying to influence the election, I don't know but I am not counting on that," Biden said in response. "No administration has done more to help Israel than I have." The government in Lebanon says more than 2,000 people have been killed there in the past year, most in the past two weeks. U.N. spokesperson Stephane Dujarric called the toll on civilians “totally unacceptable.” The Lebanese government has accused Israel of targeting civilians, pointing to dozens of women and children killed. It has not broken down the overall figure between civilians and Hezbollah fighters. Israel says it targets military capabilities and takes steps to mitigate the risk of harm to civilians. It accuses Hezbollah and Hamas of hiding among civilians, which they deny. The U.S. State Department said that an American was killed in Lebanon this week and Washington was working to understand the circumstances of the incident. Kamel Ahmad Jawad, from Dearborn, Michigan, was killed in an Israeli airstrike on Tuesday, according to his daughter, a friend and the U.S. congresswoman representing his district. State Department spokesperson Matthew Miller said the department was "alarmed" by the reports, and added: "it is a moral and strategic imperative that Israel take all feasible precautions to mitigate civilian harm." The latest bloodletting in the decades-old Israeli-Palestinian conflict stems from an attack by Palestinian Hamas militants' Oct. 7, 2023, that killed 1,200 and in which about 250 were taken as hostages, according to Israeli tallies. Israel's subsequent assault on Gaza has killed over 41,000 Palestinians, according to Gaza's health ministry, and displaced nearly Gaza's entire population, caused a hunger crisis and led to genocide allegations that Israel denies. The Israeli military said some 70 projectiles were launched from Lebanon into Israeli territory on Friday evening and were either intercepted or fell in open land. Israel sent ground forces into Lebanon this week after the Iranian missiles attacks. It has said its ground operations are "localized" in villages near the border, but has not specified how far into Lebanon they would advance or how long they would last. Israel says the operations aim to allow tens of thousands of its citizens to return home after Hezbollah bombardments that forced them to evacuate from its north. IRAN VOWS NOT TO BACK DOWN Iran's missile salvo was partly in retaliation for Israel's killing of Hezbollah secretary-general Nasrallah, a dominant figure who had turned the group into a powerful armed and political force with reach across the Middle East. Iranian leader Ayatollah Ali Khamenei told a huge crowd in Tehran that Iran and its regional allies would not back down. Israel's adversaries in the region should "double your efforts and capabilities... and resist the aggressive enemy," Khamenei said in a rare appearance leading Friday prayers, at which he mentioned Nasrallah and called Iran's attack on Israel legal and legitimate. He said Iran would not "procrastinate nor act hastily to carry out its duty" in confronting Israel. The semi-official Iranian news agency SNN quoted Revolutionary Guards deputy commander Ali Fadavi as saying on Friday that if Israel attacked, Tehran would target Israeli energy and gas installations. Axios reporter Barak Ravid cited three Israeli officials as saying that Hezbollah official Safieddine, rumoured to be Nasrallah's successor, had been targeted in an underground bunker in Beirut overnight but his fate was not clear. Israeli Lieutenant Colonel Nadav Shoshani said on Friday the military was still assessing the Thursday night airstrikes, which he said targeted Hezbollah's intelligence headquarters. Earlier the Israeli military reported that it had killed the head of Hezbollah's communication networks, Mohammad Rashid Sakafi. It declined to comment on the report that Safieddine was targeted. Hezbollah made no comment on the fate of Sakafi. Khamenei said assassinations would just spur more attacks. "Every strike launched by any group against Israel is a service to the region and to all humanity," he said, adding that Afghanistan should join the "defence". FLATTENED BEIRUT BUILDINGS In Hezbollah's stronghold in Beirut's southern suburbs, many buildings have been reduced to rubble. Nearly all the storefronts in the main market street, Moawad Souk, were damaged and the road filled with broken glass. "We're alive but don't know for how long," said Nouhad Chaib, a 40-year-old man already displaced from the south. The Islamic Health Authority, a civil defence agency linked to Hezbollah, said 11 medics had been killed in three separate Israeli attacks across southern Lebanon on Friday. The Israeli military said that in the past day it had struck several weapons storage facilities, command and control centres, and Hezbollah infrastructure sites in the Beirut area. Iran's Foreign Minister Abbas Araqchi, visiting Beirut and meeting with top Lebanese officials, said Tehran supported efforts for a ceasefire in Lebanon provided it was backed by Hezbollah and was simultaneous with a Gaza ceasefire. Sign up here. https://www.reuters.com/world/middle-east/israel-strikes-heart-beirut-killing-six-2024-10-02/

2024-10-04 20:30

TSX ends up 0.8% at 24,162.83 Eclipses Tuesday's record closing high Tech rises 2%; Shopify adds 5.6% Energy gains 8.5% for the week Oct 4 (Reuters) - Canada's commodity-linked main stock index rose to a record high on Friday as oil extended this week's sharp gains and a blowout U.S. employment report allayed concern about a slowdown in the American economy. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 194.33 points, or 0.8%, at 24,162.83, moving past the record closing high it posted on Tuesday. For the week, the index added 0.9%, its fourth straight weekly advance. The major U.S. stock indexes also moved higher on Friday as the U.S. economy added more jobs than expected in September. "It was a strong report across the board, showcasing that the U.S. economy remains resilient in the face of worries about an economic slowdown," said Angelo Kourkafas, a senior investment strategist at Edward Jones. "That's clearly positive for stocks." Technology rose 2%, helped by a 5.6% gain for the shares of e-commerce company Shopify Inc (SHOP.TO) , opens new tab. Going forward, investors could increase participation in cyclical sectors, helping the Toronto market, Kourkafas said. Combined, the economically sensitive financials, materials and energy sectors account for 63% of the TSX's weighting. Financials ended up 0.9% on Friday, while energy added 1.3% and was up 8.5% for the week, its biggest weekly advance since October 2022. The price of oil rose for a fourth consecutive session, settling 0.9% higher at $74.38 a barrel, as investors braced for a potential Israeli strike on Iranian energy infrastructure. U.S.-based Coeur Mining (CDE.N) , opens new tab will buy SilverCrest Metals Inc (SIL.TO) , opens new tab for about $1.7 billion, the companies said, as miners look to secure reserves amid surging demand for silver. Shares of SilverCrest jumped 9.7%. Sign up here. https://www.reuters.com/markets/tsx-futures-subdued-ahead-us-jobs-data-2024-10-04/