2025-10-21 20:55
Court officer defends recommendation of Amber's bid Amber needs sale order by early December to preserve pact with bondholders Venezuela, Gold Reserve say risk linked to bondholders' claim is not worth $2 billion Delaware judge expected to select a winner after court hearing HOUSTON, Oct 21 (Reuters) - Bidders pursuing the parent of Venezuela-owned U.S. refiner Citgo Petroleum and creditors waiting to cash proceeds from the court-ordered auction clashed in Delaware on Tuesday over which offer should be approved as the clock ticks to move the process towards a takeover. Following three bidding rounds, the court is trying to complete the auction to compensate up to 15 creditors for debt defaults and expropriations in Venezuela. Citgo's parent PDV Holding was found liable for the South American country's debt as part of the eight-year case. Sign up here. Lawyers representing Citgo and Venezuela asked the court in a hearing to reject a $5.9 billion bid from an affiliate of Elliott Investment Management due to its "low price," which was below a $7.9 billion rival offer from a subsidiary of Gold Reserve (GRZ.V) , opens new tab, and said the sale process was "defective." The bid from Elliott's affiliate Amber Energy was recommended in August by an officer overseeing the auction, a switch from his previous support for Gold Reserve's offer. Objections and challenges have prevented the court from pushing forward the sale process in recent months. A counsel for court officer Robert Pincus said the court conducted "the broadest marketing process of any asset ever." He also said Amber's bid implies a business value of about $9.5 billion and provides the best combination of price and likelihood of transaction completion. Amber's offer includes a side pact to pay $2.1 billion to holders of a defaulted Venezuelan bond. Because the agreement is only valid through early December, Amber, Pincus and some creditors are pressing the court to soon select a winner. "We are here not to overburden the court, but as a supplicant and to ask for the court to be mindful of that date," said Andrew Rossman, counsel for Amber. If the recommended offer does not materialize, a new pact with the bondholders or even re-bidding could be necessary, advisers and lawyers have said. A counsel for the holders said they would stick to the Amber agreement's terms for now. OBSTACLES IN THE ROAD Delaware Judge Leonard Stark this week heard arguments about motions by Venezuela and Gold Reserve to disqualify him, court officer Pincus and two advising firms over alleged conflict of interest. Final arguments over the bids were also presented to the court. Amber's bid "is so low ... that it shocks the conscience of this court and can't be confirmed," Nathan Eimer, counsel for Citgo and PDV Holding, said during the hearing. Gold Reserve also asked the court to reject Amber's bid and approve the offer submitted by its subsidiary instead, which is about $2 billion higher in price but does not include an agreement to pay the Venezuelan bondholders. Gold Reserve's bid intends to distribute auction proceeds among a larger number of creditors in Delaware, instead of settling the bondholders' claim, which is pending a final resolution over the notes' validity in a separate New York case. "It would be a fundamental injustice in the event a substantial amount of value was diverted from the attached judgment creditors here to the 2020 bondholders on the basis of a security, a pledge instrument that might be deemed invalid," said Matthew Kirtland, counsel for Gold Reserve. Both Venezuelan President Nicolas Maduro and the opposition reject the auction. The U.S. Treasury Department, which has shielded Citgo from creditors in recent years, must approve the auction's winner. https://www.reuters.com/legal/litigation/venezuela-asks-us-court-reject-elliott-affiliates-bid-citgo-parent-2025-10-21/
2025-10-21 20:39
TSX ends down 1.7% at 29,888.82 Inflation rate increases to 2.4% in September BoC rate cut chances edge lower Materials group drops 8.2% as gold slides TORONTO, Oct 21 (Reuters) - Canada's main stock index posted its biggest decline since April on Tuesday as gold prices pulled back sharply and hotter-than-expected inflation data reduced bets on a Bank of Canada interest rate cut. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 527.62 points, or 1.7%, at 29,888.82, its lowest closing level since October 10. Still, the index has advanced 20.9% since the start of the year. Sign up here. Canada's annual inflation rate increased to 2.4% in September, eclipsing the 2.3% pace that analysts expected and up from 1.9% in August. "Certainly the inflation number, higher than expected, is definitely driving part of that (decline in stocks) because it lowers the probability of an interest rate cut." said Lorne Steinberg, president, Lorne Steinberg Wealth Management Inc. Chances of a Bank of Canada interest rate cut at an October 29 policy decision dipped to 80% from 86% before the inflation report, swap market data showed. Last month, the central bank lowered its benchmark rate to a three-year low of 2.50% "Part of it just feels like a bit of a pullback from an absolutely spectacular run ... Of course, the price of gold is down so the gold stocks are getting hammered today," Steinberg said. Gold fell 5.5% as investors booked profits. Expectations of U.S. interest rate cuts and sustained safe-haven demand drove the metal to a record high in the previous session. The materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, fell 8.2%, with shares of Lundin Gold (LUG.TO) , opens new tab down 14.8%. Technology lost 1.3%, weighed by declines for electronic equipment firm Celestica (CLS.TO) , opens new tab and e-commerce company Shopify (SHOP.TO) , opens new tab. A months-long fight for control of Canada's last pure-play oil sands company took a fresh twist as MEG EnergyMEG.TO , opens new tab postponed a scheduled meeting at which shareholders were set to vote on its proposed takeover by Cenovus Energy CVE.TO , opens new tab. Shares of MEG lost 1% and Cenovus ended 2.1% lower. https://www.reuters.com/business/tsx-futures-dip-commodity-prices-weaken-eyes-cpi-data-2025-10-21/
2025-10-21 20:36
Oct 21 (Reuters) - A Stellantis (STLAM.MI) , opens new tab plant in Michigan will remain shut down for several weeks due to a shortage of key components, Bloomberg News reported on Tuesday. Production at the company's Warren plant, which was halted on October 13, will stay idle until the week of November 3, Bloomberg reported citing an email from Stellantis. Sign up here. The company also cited "a parts shortage" without providing additional details, the report added. Stellantis did not immediately respond to Reuters' request for comment. Novelis, a key aluminum supplier to multiple automakers including Stellantis, earlier this month reported a fire incident at its Oswego plant on September 16, adding that there had been no injuries. https://www.reuters.com/business/autos-transportation/stellantis-factory-halted-after-aluminum-plant-fire-bloomberg-news-reports-2025-10-21/
2025-10-21 20:30
Indexes mixed: Dow up 0.47%, S&P 500 ~flat, Nasdaq down 0.16% Netflix stock falls in extended trading after posting quarterly results Coca-Cola's third-quarter results beat estimates, shares rise Aerospace stocks rise after Lockheed, Northrop, RTX results Warner Bros Discovery jumps after initiating strategic review NEW YORK, Oct 21 (Reuters) - U.S. stocks closed mixed with the Dow out front on Tuesday, as a string of solid earnings lured investors to industrials and capital goods. The S&P 500 was essentially unchanged at the closing bell, while weakness in growth and microchip stocks pulled the tech-laden Nasdaq to a nominally lower close. Sign up here. "We're at a little bit of a point of indecision, where nobody feels particularly strongly about anything," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. "That reflects itself in reduced reaction to earnings surprise." Third-quarter earnings season has shifted into overdrive, with corporate giants such as General Motors, GE Aerospace, 3M and Coca-Cola posting generally upbeat results. But with major U.S. stock indexes hovering near record highs and valuations stretched, upbeat results alone could prove insufficient to sustain investor risk appetite. "The earnings are better than expected as companies continue to gain slightly in terms of margins, which suggests that (companies) have to be passing through the tariffs or pushing the tariffs back onto the importers," Green said, adding "nothing is jumping out today to say that there's a strong opinion being expressed anywhere." General Motors (GM.N) , opens new tab lifted its forecast and tempered its anticipated tariff hit. The automaker's shares jumped 14.9%. Coca-Cola (KO.N) , opens new tab shares gained 4.1% after solid consumer demand drove its better-than-expected results, while diversified manufacturer 3M (MMM.N) , opens new tab advanced 7.7% after hiking its full-year forecast, bolstered by its focus on higher margin products and cost controls. Aerospace and defense companies Lockheed Martin (LMT.N) , opens new tab, Northrop Grumman (NOC.N) , opens new tab and RTX (RTX.N) , opens new tab all raised their forecasts, benefiting from solid demand for war machinery. The S&P 1500 Aerospace/Defense index (.SPCOMAED) , opens new tab advanced 1.9%. Netflix (NFLX.O) , opens new tab dropped 5.8% in extended trading after the streaming company missed earnings targets. So far, 78 of the companies in the S&P 500 have reported. Of those, 87% have beaten Wall Street expectations. Analysts currently foresee aggregate third-quarter S&P 500 earnings growth of 9.2% year-on-year, more robust than their 8.8% estimate as it stood on October 1, according to LSEG data. High-profile results from Tesla (TSLA.O) , opens new tab, IBM (IBM.N) , opens new tab, Procter & Gamble (PG.N) , opens new tab and Intel (INTC.O) , opens new tab are also on tap this week. The Dow Jones Industrial Average (.DJI) , opens new tab rose 218.16 points, or 0.47%, to 46,924.74, the S&P 500 (.SPX) , opens new tab gained 0.22 points, or 0.00%, to 6,735.35 and the Nasdaq Composite (.IXIC) , opens new tab lost 36.88 points, or 0.16%, to 22,953.67. Among the 11 major sectors of the S&P 500, consumer discretionary (.SPLRCD) , opens new tab and industrials (.SPLRCI) , opens new tab led the gainers, while utilities (.SPLRCU) , opens new tab suffered the largest percentage loss. Shares of Warner Brothers Discovery (WBD.O) , opens new tab surged after the company announced it is considering an outright sale, citing interest from several potential buyers, in the latest media shakeup. Late in the session, the board rejected an offer from Paramount Skydance. The company's stock surged 11.0%. The government shutdown, now in its third week, has left investors, economists and policymakers in the dark in the absence of official data, complicating the efforts of the data-dependent Federal Reserve. Even so, the central bank will implement two more 25-basis-point reductions to its key policy rate by year-end, according to a Reuters poll of economists, who remain divided regarding the Fed's path forward in 2026. U.S. President Donald Trump also struck a positive tone on trade, saying he expects to reach a "fair deal" with Chinese President Xi Jinping, while downplaying tensions over Taiwan. Markets will keep an eye on Trump's upcoming meeting with Xi on the sidelines of next week's economic summit in South Korea. Advancing issues outnumbered decliners by a 1.27-to-1 ratio on the NYSE. There were 302 new highs and 47 new lows on the NYSE. On the Nasdaq, 2,203 stocks rose and 2,454 fell as declining issues outnumbered advancers by a 1.11-to-1 ratio. The S&P 500 posted 20 new 52-week highs and no new lows while the Nasdaq Composite recorded 56 new highs and 63 new lows. Volume on U.S. exchanges was 19.73 billion shares, compared with the 20.26 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/wall-street-futures-pause-earnings-season-gains-momentum-2025-10-21/
2025-10-21 19:43
Oct 21 (Reuters) - The longtime head of the top U.S. solar industry trade group will step down next year, the organization said in a statement on Tuesday. Abigail Ross Hopper will leave her post as president and CEO of the Solar Energy Industries Association on January 30. SEIA has launched a search for her successor. Sign up here. Hopper's departure after nine years as the U.S. solar industry's top lobbyist comes as the Trump administration has sought to curb the expansion of solar and other forms of renewable energy. "This year has been challenging for our industry, but I remain optimistic about our future," Hopper said in an open letter to the industry posted on SEIA's website. "SEIA is stronger than ever, led by an extraordinary team and a deeply engaged board. Our industry has the talent, the technology, the market mandate, and the moral clarity to finish the job we set out to do, delivering clean, affordable, reliable energy that serves as the foundation of America’s economic future." Since Trump took office, SEIA has sought to portray solar as a domestic jobs engine that can help meet soaring power demand, downplaying its role in combatting climate change. During Hopper's tenure, the U.S. solar industry soared to $70 billion in annual investment from $16 billion in 2017, SEIA said. Solar energy now accounts for most of the new electricity generation added to the U.S. grid. Hopper has also grappled with challenges such as the imposition of tariffs meant to reduce the industry's reliance on cheap foreign-made panels, concerns about forced labor in the solar supply chain and reforms to residential solar incentives that have slowed that market. https://www.reuters.com/sustainability/climate-energy/abby-ross-hopper-top-us-solar-lobbyist-will-step-down-next-year-2025-10-21/
2025-10-21 19:34
WASHINGTON, Oct 21 (Reuters) - The U.S. Department of Energy said on Tuesday it is looking to buy 1 million barrels of crude oil for delivery to the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish the stockpile. The previous administration of former President Joe Biden sold record amounts of oil from the SPR, including a 180-million-barrel sale after Russia, one of the world's top oil producers, invaded Ukraine in 2022. The reserve, which has about a 700-million-barrel capacity, is now holding nearly 409 million barrels. Sign up here. President Donald Trump's administration has been looking to replenish the SPR, but has been limited by a lack of funds and by ongoing maintenance at the reserve, held in a series of hollowed-out salt caverns on the Texas and Louisiana coasts. Pumps, pipes and other above-ground SPR infrastructure are constantly exposed to corrosive, salty air. Trump's tax and spending bill included about $171 million for the SPR oil purchases and maintenance, much less than the $1.3 billion that had originally been in the legislation. Buying more oil for the SPR will likely require the passage of new legislation. Energy Secretary Chris Wright said Trump is trying to replenish the SPR with the help of Congress. "While this process won't be complete overnight, these actions are an important step in strengthening our energy security and reversing the costly and irresponsible energy policies of the last administration," Wright said. Both the international oil benchmark Brent and the U.S. benchmark WTI had hit their lowest levels since early May on Monday, as record U.S. oil production and a decision by the Organization of the Petroleum Exporting Countries and allies to press ahead with planned supply hikes raised expectations of oversupply. WTI crude futures on Tuesday closed up 30 cents at $57.82 a barrel. Bids for the SPR solicitation close on October 28. https://www.reuters.com/business/energy/us-seeks-1-million-barrels-oil-strategic-petroleum-reserve-2025-10-21/
