2024-06-05 12:27

LONDON, June 5 (Reuters) - Commodity trader Trafigura has settled a lawsuit filed by a firm owned by property and metals tycoons the Reuben brothers, Trafigura said on Wednesday, in a case linked to an ongoing alleged nickel fraud case. The case was an off-shoot of a larger legal action in which Geneva-based Trafigura filed a lawsuit last year against businessman Prateek Gupta, alleging systematic fraud involving what were supposed to be nickel cargoes. Hyphen Trading Ltd demanded $8.4 million in damages last year from Trafigura, saying it had paid Trafigura for 404 metric tonnes of nickel, but never received it. The Hyphen lawsuit involves metal that Trafigura allegedly bought from Gupta and sold on to third parties. A document from the London Commercial Court dated May 20 showed the case had been dismissed by consent of both parties and there was no order about which party would pay costs. A Trafigura spokesperson confirmed the case had been settled but declined to give details, including whether it paid damages to Hyphen. Hyphen and Reuben Brothers Ltd did not immediately respond to requests for comment. Trafigura booked an impairment last year of $590 million due to the alleged fraud by Gupta and seven companies that Trafigura said are controlled by him. Gupta has said in his defence that Trafigura staff devised the scheme at the centre of the case to substitute low-value metals such as scrap for high-grade nickel. Trafigura and its employees have denied knowing about any such fraud. "In light of the Gupta fraud, Hyphen’s reasonable suspicion is that the goods... were not in fact nickel... but were in fact worthless rubble," Hyphen said in a previous court document. Trafigura has said in previous court documents that it sold a small number of the Gupta cargoes to third parties, including to U.S. company Argentem Trade Services. Hyphen said that in July 2022 it agreed to buy nickel from Argentem, which was due to be shipped by Trafigura from Taiwan to Rotterdam. Hyphen said on LinkedIn that it is part of the Reuben Brothers Group, and UK Companies House records show Hyphen Trading as a wholly-owned subsidiary of RB International UK. Sign up here. https://www.reuters.com/markets/deals/trafigura-settles-84-mln-lawsuit-with-reuben-brothers-firm-2024-06-05/

2024-06-05 12:00

LITTLETON, Colorado, June 5 (Reuters) - Coal use, imports and coal-fired emissions have all climbed to record highs in Vietnam this year despite ongoing efforts to roll out clean generation capacity across the country. The continuing growth in coal dependence in Vietnam highlights the difficulty of dislodging coal from the power systems of fast-growing countries that rely on cheap and abundant energy sources to generate economic competitiveness. GROWING CLOUT Vietnam has been a major beneficiary of the re-routing of supply chains away from China in recent years, and has seen rapid growth in its manufacturing base and national exports as companies establish and expand production in the country. In response, Vietnam's gross domestic product (GDP) is projected to grow by twice the global average through 2029, according to the International Monetary Fund (IMF). But in order to ensure sufficient low-cost energy for this fast-growing manufacturing sector, Vietnam's power producers have had to prioritize the expansion of fossil fuel-powered generation over power sector decarbonization efforts, which remain part of longer-term plans for the country. The rapid swell in coal use has seen Vietnam overtake South Korea in coal-fired emissions this year, and has put it on track to finish 2024 as the fourth-largest coal emitter in Asia behind China, India and Japan. COAL CRUTCH Coal generated a record 64.6% share of Vietnam's electricity generation in April, according to energy think tank Ember, which is up sharply from an average generation share of 46% for 2023. Over the first four months of 2024, total coal-fired electricity generation was 57 terawatt hours (TWh), which was 42.5% more than during the same months in 2023. Resulting emissions were up 34% to 53.6 million metric tons of carbon dioxide (CO2), Ember data shows. A key driver behind this year's surge in coal use has been an unusually steep decline in electricity generation from hydro dams, which accounted for an average of around 15% of electricity output so far this year compared to 25% during the same period in 2023. Vietnam's power firms have also trimmed output from natural gas through April by about 15% from the same months in 2023. The reduced output from hydro and gas plants has helped cement coal's status as the leading power source in Vietnam, especially during the recent heat wave across Asia that boosted demand for air conditioning throughout the region. IMPORT HIKES To keep pace with the accelerated coal burn in power stations, Vietnam boosted thermal coal imports by 71% over the first five months of 2024 from the same period in 2023, data from Kpler shows. The 17.8 million metric tons of thermal coal shipped in by Vietnam through May marks a more than 7 million ton rise from the same period a year ago, and means the country has imported more than 55% of 2023's full-year total in only five months. Vietnam's coal import surge contrasted with contractions in coal purchases so far this year in Japan, South Korea, Taiwan and Thailand, and ensured that Vietnam increased its share of global thermal imports to around 4.3% so far this year from an average of 3.1% in 2023. If the recent spell of above-normal temperatures persists through the coming months, additional imports are likely, and mean that Vietnam's previous annual record tally of 33.1 million tons set in 2020 could be eclipsed this year. As Vietnam is already on track to set new annual records in coal-fired generation and emissions, setting a new coal import record would round out the country's status as a major and growing player in global coal markets despite ongoing efforts to cut coal use elsewhere. Sign up here. https://www.reuters.com/markets/asia/vietnams-coal-use-emissions-set-new-records-2024-06-05/

2024-06-05 11:07

Fintech executives meet at Amsterdam industry event Funding pick-up expected in 2025 Fintech funding slow to recover Valuations under pressure, focus on profitability AMSTERDAM, June 5 (Reuters) - Europe's fintech industry faces an uncertain future after funding squeezes over the past two years brought lofty pandemic-era ambitions and valuations down to earth, but some are optimistic that lower interest rates will spur a recovery. At a fintech conference in Amsterdam this week, the mood among delegates was mixed - although speakers and organisers on-stage were upbeat, particularly about the promise of artificial intelligence. Damien Dugauquier, co-founder of iPiD, a Singapore-based fintech which offers pre-payment validation services, said fundraising was "considerably harder" in Europe compared with the U.S. or Asia, which he attributed to Europe's weaker economic growth. "I'm hoping that it changes for Europe," he told Reuters on the sidelines of the Money20/20 conference, where many of the exhibitors were focused on crypto or AI. AI was the buzzword as the conference kicked off on Tuesday, with talks from some of Europe's leading tech firms, including Mistral AI. There was a "co-host" AI chatbot interviewed on stage, which malfunctioned at first, and a mind-controlled beer-pouring robot on show. Fintech - or financial technology - companies have been struggling since 2022 to raise money needed to bankroll their operations after central banks raised rates to combat inflation, ending the era of free-flowing cash. Dugauquier, who recently closed a $5.3 million funding round said: "It took us eight months whereas I guess two years ago it would have taken three months. So it's getting better but it's not back to the crazy days for sure." For investors looking to assess the state of the industry, major areas of concern were companies' valuations, their path to profitability in a European economy lagging the U.S. and how they were handling increased regulatory scrutiny of the sector. "I don't know if we are at the end of the downside of the cycle, to be honest, because interest rates are still high," said Helene Falchier, a partner at fintech-focused venture capital firm Portage Ventures, which says it has $2.5 billion worth of assets under management. Venture capital funding flowing into fintechs in Europe dropped sharply last year to $9.2 billion in 2023 from $26 billion in 2022, PitchBook data shows. There's little sign of fintech fundraising returning to its pandemic-era highs, with funding deal volumes having reached just $4.4 billion in Europe by the end of May, the data showed. Portage Ventures' Falchier said company founders had learned lessons from the pandemic era and were more realistic about valuations, although dealflow was still buffeted by external events. "We are in this area where when there is good news I think everyone is really excited and want to move deals," Falchier said. But she also said the market was sensitive to bad news and geopolitical issues. PROFITABLE Some delegates were more upbeat, noting that the Money20/20 event had grown rapidly from previous years. Monica Long, president of U.S. crypto firm Ripple, said that people flying in from the U.S. to Amsterdam suggested that fintech is doing well and booming in Europe. "Crypto start-ups are doing better in Europe than most places. There's more crypto banks here in Europe than anywhere else," she told Reuters in an interview. Although valuations have fallen across fintech sectors globally, executives at the conference said that for companies with proven profitability the outlook looks rosier. Kunal Jhanji, the head of Boston Consulting Group's UK fintech and payments practice, said in emailed comments that European companies' valuations were not as "heightened" as peers in Asia and the U.S. because they had less access to capital, and so they have been "quietly turning the corner on profitability for some time". IPO activity and M&A should pick up next year as interest rates come down, he added. British digital bank Monzo, which this week reported its first annual profit, secured 340 million pounds of new funding in March in a round led by Alphabet, valuing it at 4 billion pounds ($5.11 billion) - an increase from a round in 2021. "What I know for sure is there is enough appetite for profitable companies ... if the unit economics are stacked on your side, you will still be able to attract great valuations," said Ani Sane, co-founder and chief business officer at payments company TerraPay in London. TerraPay raised more than $100 million in 2023 in debt and equity financing. European companies have generally found it difficult to raise money locally, sending them to the United States where capital markets are deeper, and prompting efforts by governments in Europe to try and make it easier for start-ups to access funding. Delegates also said expectations that fintech companies would disrupt mainstream finance had been proven wrong. "I remember when fintech was first described, there was a sense that fintech companies would be very disruptive to major institutions, potentially even be able to take significant market share," said Joanne Hannaford, who leads technology strategy at Deutsche Bank's corporate bank. "In fact that hasn't actually materialised." ($1 = 0.7821 pounds) Sign up here. https://www.reuters.com/technology/europes-fintech-funding-slowdown-dampens-mood-amsterdam-event-2024-06-05/

2024-06-05 10:53

June 5 (Reuters) - Chemours (CC.N) New Tab, opens new tab on Wednesday named Shane Hostetter as its new chief financial officer, weeks after the exit of CFO Jonathan Lock after the chemical firm revised certain past financial results following an internal review. Hostetter was earlier the CFO of Quaker Chemical (KWR.N) New Tab, opens new tab, an industrial process fluids firm. He takes over on July 1 from interim finance chief Matt Abbott. Earlier this year, the internal review showed manipulation by some of its senior management to meet free cash flow targets tied to their incentives, resulting in its top three executives, including Lock and CEO Mark Newman, being placed on administrative leave. Sign up here. https://www.reuters.com/markets/commodities/chemours-names-shane-hostetter-cfo-2024-06-05/

2024-06-05 10:49

BEIJING, June 5 (Reuters) - Scenic park operators in China's Henan province were forced to acknowledge that the country's highest waterfall got a helping hand from a pipe due to a lack of rainfall. Video from a Douyin user, or the Chinese version of Tiktok and reported by media New Tab, opens new tab, showed a tourist revealing a large pipe burrowed at the top Yuntai Falls - the country's steepest and a popular attraction inside the Yuntai Mountain scenic area. The video, which has been shared 48,000 times, unleashed a torrent of social media comments, forcing park officials on Tuesday to release a letter that blamed seasonal factors and admitting to a "small enhancement during the dry season." The move was meant to "enrich the visiting experience" and make the "trip worthwhile" for those "who have travelled a long way," operators wrote on their Weibo social media account. Chinese netizens jumped on the pipe disclosure. "The main thing is that the water pipe is so crudely installed, others at least disguise it in a superior way," wrote a user on Weibo, China's popular social media platform. "The move does not respect the laws of nature nor the visitors," wrote another netizen. The waterfall is described by the scenic park officials as the highest in Asia with a 314-metre vertical drop. In 2023, the Yuntai Mountain scenic area attracted over seven million visits, according to local tourism authorities. Some took a more conciliatory view on the use of the pipe, with one user saying "that it is better than seeing no water at all," and another musing, "it is a good faith effort for the scenic area to maintain the landscape during dry periods." Sign up here. https://www.reuters.com/world/china/highest-waterfall-china-gets-little-help-pipe-officials-say-2024-06-05/

2024-06-05 10:33

NEW DELHI, June 5 (Reuters) - India's ministry of steel is against limiting imports of low ash metallurgical coke, a steelmaking ingredient, according to a source familiar with the matter and a government note, in a potential blow for local producers of the raw material. After complaints from local producers about rising imports since 2019/20, India's Directorate General of Trade Remedies (DGTR), which comes under the trade ministry, in April backed capping imports of low ash metallurgical coke at 2.85 million metric tons for one year. The final decision will be made by the commerce ministry, which did not immediately respond to an email seeking comment. The steel ministry is against curbing imports of the raw material because of strong domestic demand and concerns about the quality of local production, according to the source and note reviewed by Reuters. China, Indonesia and Poland are the top suppliers of metallurgical coke to India. Imports of low ash metallurgical coke by India, the world's second-biggest crude steel producer, have surged more than 61% over the past four years. "The domestic merchant producers of coke are not fully capable of meeting the demand of met (metallurgical) coke of the country ... particularly on quality grounds," Nagendra Nath Sinha, the ministry of steel's top civil servant, said in a letter to the trade ministry. "The acceptance of DGTR's recommendations will cause disruption in the supply chain, the production and the supplies to the downstream customers of steel industry," Sinha said in the letter dated May 29. Import restrictions could raise costs and hurt smaller steel producers, the letter added. The ministry of steel did not respond to a Reuters email seeking comment. Steel producers oppose import curbs on low ash metallurgical coke because they would push up steel prices, said a senior executive at a big steel mill. He didn't wish to be named as he is not authorised to talk to the media. Import restrictions would also jack up prices of coking coal, used to make metallurgical coke, he said. Sign up here. https://www.reuters.com/markets/commodities/indias-steel-ministry-against-import-curbs-key-raw-material-2024-06-05/