2024-08-20 07:00

Yacht sank after violent storm early Monday Fifteen survived disaster, one body found; six missing Divers searching wreck, but operation is complicated Tech entrepreneur Mike Lynch and daughter among missing PALERMO, Sicily, Aug 20 (Reuters) - Divers scoured the wreck of a luxury yacht off Sicily's coast on Tuesday to find six missing people, including British tech entrepreneur Mike Lynch and a Morgan Stanley executive, following an intense storm that sank the vessel on Monday. The British-flagged Bayesian, a 56-metre-long (184-ft) superyacht, was carrying 22 people and anchored off the port of Porticello when it was hit by the fierce, pre-dawn storm. Fifteen people escaped before it capsized and the body of one person who died was swiftly recovered. That left six passengers unaccounted for - Lynch and his 18-year-old daughter, Morgan Stanley International (MS.N) , opens new tab non-executive chairman Jonathan Bloomer, Clifford Chance lawyer Chris Morvillo, and their two wives. "The fear is that the bodies got trapped inside the vessel," which was lying 49 metres (160 feet) deep, Salvatore Cocina, head of civil protection in Sicily, told Reuters. This meant time beneath the waves was a limiting factor for the divers. "The biggest difficulty we have is due to the depth, which does not allow long times of intervention," fire department diver Marco Tilotta told reporters. "We plan ... to search centimetre by centimetre." Tilotta said the vessel appeared to be intact and was lying on its right side. Divers had not ascertained whether the 72-metre-long mast had snapped somewhere along its length. LYNCH TRIAL Lynch, 59, is one of the UK's best-known tech entrepreneurs. He built the country's largest software firm, Autonomy, from his ground-breaking research at Cambridge University and became known as Britain's Bill Gates. He sold the firm to HP for $11 billion in 2011, after which the deal spectacularly unravelled with the U.S. tech giant accusing him of fraud, resulting in a lengthy trial. Lynch was eventually acquitted by a jury in San Francisco in June. Morvillo represented Lynch in the case, while Bloomer had appeared as a character witness on his behalf. In an apparent extraordinary coincidence, Stephen Chamberlain, Mike Lynch's co-defendant in the trial, died after a road accident in Britain over the weekend, his lawyer said on Monday. The Bayesian was owned by Lynch's wife, who survived the disaster, and other guests on the yacht included Lynch's colleagues. The only body so far retrieved was that of the onboard chef Ricardo Thomas, an Antiguan citizen. The British government's Marine Accident Investigation Branch said it sent four of its inspectors to Sicily to conduct a "preliminary assessment." 'DIDN'T SEE IT COMING' One expert at the scene of the disaster who declined to be named said an early focus of the official investigation would be whether the yacht's crew had closed access hatches into the vessel before the storm struck. Investigators would look at whether appropriate measures had been taken, given the forecasts for bad weather overnight. "We didn't see it coming," the captain of the yacht, James Catfield, said of the storm, according to la Repubblica news website on Monday. Storms and heavy rains have ravaged Italy in recent days, after weeks of scorching heat warmed the sea temperature to record highs, raising the risk of extreme weather conditions, experts said. "The sea surface temperature around Sicily was around 30 degrees Celsius (86 Fahrenheit), which is almost 3 degrees more than normal," said meteorologist Luca Mercalli. "We can't say that this is all due to global warming but we can say that it has an amplifying effect," he told Reuters. (This story has been refiled to change Morgan Stanley official's title from 'chief' to 'chairman' in the headline, and to add 'non-executive' to his title in paragraph 3) Sign up here. https://www.reuters.com/world/europe/after-yacht-sinks-off-sicily-search-continues-six-missing-2024-08-20/

2024-08-20 06:57

MELBOURNE, Aug 20 (Reuters) - First-round bids for Anglo American's (AAL.L) , opens new tab Australian metallurgical coal mines are due by Sept. 9, two sources said on Tuesday, as CEO Duncan Wanblad takes initial steps to simplify the company after rejecting a takeover offer from BHP (BHP.AX) , opens new tab. Anglo's mines for the steel-making ingredient include Grosvenor and Moranbah North as well as three smaller mines all in Queensland state, a package that broker Jefferies valued at $4.5 billion before a fire at Grosvenor in June. The mine remains shut and is unlikely to reopen before 2026, analysts say. Wanblad is embarking on a strategy to shore up the miner with a focus centred on copper after rebuffing BHP's $49 billion takeover offer earlier in the year. Anglo, which declined to comment, said last month it expected to reach a deal for the coal assets by early 2025. Its restructuring plan also includes divesting its De Beers diamond assets and its nickel mines, as well as the demerger of its South African platinum unit. Standard Chartered has been appointed to run the nickel sale, according to one of the sources, who was not authorised to speak publicly about the matter. Standard Chartered did not immediately reply to an emailed request for comment. POTENTIAL BUYERS Glencore (GLEN.L) , opens new tab, already a major supplier of Australian coal, is expected to make a bid for the assets, given its favourable view on the commodity and its strong balance sheet, according to analysts. The London-listed miner opted this month to keep its coal business, having considered spinning it off, as it completed its buyout of Teck Resources' (TECKb.TO) , opens new tab Canadian coking coal assets. A Glencore spokesperson declined to comment. Indonesian buyers are also expected to make an appearance. A consortium including Golden Energy and Resources (GEAR), backed by Indonesia's Widjaja family and Australian privately owned company M Resources is considering making a bid, a source familiar with the matter told Reuters. Indonesia's Delta Dunia Group (DOID.JK) , opens new tab, which runs its Buma coal mining services business in Australia, said last month it planned to grow through acquisitions. Delta Dunia Group Director Iwan Fuad Salim told Reuters this month the company would continue to "look at opportunities when they arise as part of our growth strategy," but declined to elaborate further. Yancoal (YAL.AX) , opens new tab, which operates several coal mines in Australia, "continues to look for high quality acquisition opportunities," it said in an earnings report on Monday. A spokesperson did not immediately return an emailed request for comment. Sign up here. https://www.reuters.com/markets/commodities/initial-bids-anglos-australian-coal-mines-due-sept-9-sources-say-2024-08-20/

2024-08-20 06:52

MUMBAI, Aug 20 (Reuters) - The Indian rupee rose slightly on Tuesday but continued to underperform its Asian peers which have rallied to multi-month highs in anticipation of a U.S. rate cut next month. The rupee is the worst performing Asian currency so far this month, down 0.2% against the dollar, while its peers have risen as much as 4%. On Tuesday, the rupee was at 83.83 as of 10:45 a.m. IST, up slightly from its close at 83.87 in the previous session. The Indian currency had slipped to a record low of 83.9725 earlier this month. Outflows from equities and dollar demand from importers, alongside unwinding of carry trades earlier in the month, have kept a lid on gains in the rupee even as its peers have risen. Overseas investors have pulled out about $2.5 billion from Indian shares in August, according to stock depository data. The rupee "faces persistent challenges — a widening trade deficit, ongoing foreign outflows, and relentless demand for USD from importers," Amit Pabari, managing director at FX advisory firm CR Forex in Mumbai said. But "with the Reserve Bank of India (RBI) firmly in control, the rupee is likely to remain within a narrow range", Pabari said. Routine interventions by the RBI helped the rupee hold above the psychologically-important 84 handle last week. On Tuesday, the dollar index was at 101.9, hovering close to its lowest in seven months, ahead of remarks from Federal Reserve policymakers this week, including Chair Jerome Powell on Friday. The remarks will influence expectations of the extent and pace of rate cuts by the Fed. Interest rate futures are currently pricing in about 93 basis points of U.S. rate cuts over 2024. Sign up here. https://www.reuters.com/markets/currencies/rupee-worst-asia-performer-over-august-despite-mild-rise-2024-08-20/

2024-08-20 06:45

Units could be sold or closed Chemicals business hit by depressed prices Aug 20 (Reuters) - Sasol (SOLJ.J) , opens new tab will take "decisive action" following a review of its underperforming chemicals units, CEO Simon Baloyi said on Tuesday after the South African petrochemicals company announced a $3 billion asset writedown due to depressed prices. Sasol's shares were down 6.3% at 1120 GMT after it posted a 27.3 billion rand ($1.54 billion) loss before interest and tax in the year to June 30, from profit of 21.5 billion rand the previous year. "We're going to look at our global international chemicals portfolio," Baloyi told analysts. "We're going to go through asset by asset and we're going to take decisive actions on underperforming assets." Sasol CFO Hanre Rossouw said the ongoing asset review was "not a disposal programme as we previously had when we were in financial distress". While some assets could be sold, others could be "repaired, optimised or closed", Rossouw told Reuters. Sasol could also consider selling its 50% stake in the Lake Charles chemicals complex in Louisiana, U.S "but at the right time", Baloyi said. Sasol, which produces chemicals and liquid fuels from coal and gas, jointly owns the business with LyondellBasell (LYB.N) , opens new tab. "If you look at where we are right now in the cycle it won’t be attractive. We don’t think it will help us generate any value for shareholders," Baloyi said. The chemicals segment contributed 35% to Sasol's adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the financial year, down from 37% previously. Sasol did not declare a final dividend, leaving the interim 2 rand per share declared at half-year as the full-year payout for the 2024 financial year. The company has changed its dividend policy, which was previously based on 2.5-2.8 times core headline earnings per share, to 30% of free cash flow generated, provided that net debt is below $4 billion on a sustained basis. "The disconnect between headline earnings and cashflow generation, as well as elevated leverage levels, has necessitated a revision to the company's dividend policy," Sasol said in a statement. Net debt for 2024 stood at $4.1 billion, just above the dividend trigger level. ($1 = 17.7820 rand) Sign up here. https://www.reuters.com/markets/commodities/sasol-profit-plunges-66-weak-chemical-prices-skips-final-dividend-2024-08-20/

2024-08-20 06:15

BHP struck quick pay deal to defuse union strike at Escondida Prolonged strike in 2017 influenced decision, analysts say Escondida payout could loom over other labor contract talks SANTIAGO, Aug 20 (Reuters) - Mining giant BHP's (BHP.AX) , opens new tab quick fix to a recent six-day strike at its huge Escondida copper mine in Chile could set the tone for upcoming negotiations elsewhere, with workers emboldened by high copper prices to push for a larger share of the profits. Members of Escondida's powerful Union No. 1 signed a sweetened deal on Sunday after walking off the job a week ago when contract talks collapsed, demanding better pay and benefits at the world's biggest copper mine. With a preliminary deal in hand already on Friday, a union lawyer had termed the agreement its "greatest recent victory." It gave each worker a bonus and interest-free loan of about $34,000, compared with BHP's original offer of some $28,900. The quick turnaround contrasts with a 2017 walkout that dragged on for a month and a half, severely hitting BHP's production, boosting global copper prices and even denting Chile's GDP, heavily reliant on the red metal. That was a scenario BHP wanted to avoid, particularly given strong current demand and global copper prices, analysts and other experts said. Demand for the metal is expected to shoot up, driven by the rise of electric vehicles and artificial intelligence technologies. "The specter of the 44-day strike in 2017 created constant fear throughout the negotiations," said Andres Gonzalez, an analyst at mining consultancy Plusmining. "BHP wanted to avoid something similar, which pushed them to seek an agreement." The two sides were also not so far apart when the strike started, he noted, making a middle ground easier to achieve. The union's position also appeared to be buoyed by the public perception of BHP having capital to spare. The miner is among the world's biggest, turning out more than a million metric tons of copper a year at Escondida alone. It recently sought (AAL.L) , opens new tab in a $49 billion deal before scrapping the offer. "Its current image is that of a company that has capital available to acquire assets or even invest in mergers ... so the union was going to insist on achieving its goals," said Cristian Cifuentes, an analyst at Chilean think tank Cesco. Despite occasional strikes, Chile's mining industry largely manages to renew workers' collective contracts without conflict and even in advance, avoiding the risk of disrupting production. Escondida is unique due to its large size and powerful union, which represents 2,400 people, almost all in key operational roles. The union has frequently clashed with BHP. 'PROFITS HAVE TO BE PAID TO WORKERS' Analysts are now watching whether Escondida will set a precedent, but say other mines in Chile are not necessarily in similar situations, such as those that are smaller or grappling with problems in production and costs. State-run copper giant Codelco, fighting to revive production from a 25-year low, is due for pay negotiations at its Ministro Hales mine in September, followed by the El Teniente and Gabriela Mistral mines in October. At each site, the unions represent a substantial part of the overall workforce. Of particular note is El Teniente, one of Codelco's biggest mines, a complex that represented more than a quarter of company copper production last year. El Teniente workers are represented by five separate unions, but those combined represent more than 80% of total workers, or 3,200 people. "What is worrying is how the unions at El Teniente will react," Cifuentes said. Workers from one of three unions at Lundin Mining's (LUN.TO) , opens new tab Caserones copper mine in Chile also went on strike one day before the Escondida strike and remain so. "The price of copper has been quite favorable in recent months... Those profits have to be paid to the workers," said Marco Garcia, president of the striking Caserones union, though he admitted the Escondida union had more "productive pressure." "We know that the next three years will be quite profitable for Caserones in the production of copper," he added. "That's what leads us to our position and to be able to demand higher wages for the members of our union." The Caserones management is due to negotiate with other unions at the site later this year. The head of Chilean mining association SONAMI, Jorge Riesco, cautioned that it is necessary to strike a balance between worker pay and industry competitiveness. "It is legitimate for workers to aspire to better working conditions, but it is important that they also consider other aspects," he said. "Issues of labor productivity and industry competitiveness should also be on the table." Sign up here. https://www.reuters.com/markets/commodities/bhps-quick-strike-fix-sets-tone-labor-talks-amid-copper-rally-2024-08-20/

2024-08-20 06:09

LITTLETON, Colorado, Aug 20 (Reuters) - Electricity generation from solar farms is growing faster in Central and Eastern Europe than in any other European region, vastly exceeding the growth rates seen in both wealthier and sunnier parts of the continent. Through the first seven months of 2024, utility-run solar output in the five largest solar producers in Central/Eastern Europe - Austria, Bulgaria, Hungary, Romania and Poland - jumped by 55% from the same months in 2023, data from Ember shows. That's over twice the growth rate for Europe as a whole, and sharply exceeds the paces posted by the five largest solar generators in Western Europe, Southern Europe and Northern Europe over the same period. Central and Eastern Europe's top five solar producers have also expanded solar generation capacity faster than regional peers since 2019, paving the way to continued solar output growth in one of Europe's most heavily industrialized areas. DRIVING FORCES Poland and Hungary are by far the most important drivers of utility-scale solar growth in Central/Eastern Europe. Through the first seven months of the year, solar-powered electricity generation in Poland was 11.3 Terawatt hours (TWh) and was 5.8 TWh in Hungary. Those output figures were up 33.3% and 47.7%, respectively, from the same periods in 2023, according to Ember, and rank among the fastest growth rates in all of Europe. In absolute generation terms, those output figures also rank highly among European peers. Indeed, the five largest solar producers in the Central/Eastern European region boosted collective solar-generated electricity by just 10% less so far this year than the five largest solar producers in Western Europe - Belgium, France, Germany, The Netherlands and Switzerland. The ability of nations across Central/Eastern Europe to compete with wealthier economies in Western Europe in terms of solar growth underscores how affordable solar installations have become relative to other forms of electricity generation. The rapid growth in solar generation in Central/Eastern Europe also reflects supportive clean energy policies across the region, which has historically been one of Europe's heaviest coal-burning regions. Both Poland and Hungary - the region's two largest solar producers - have targeted net zero carbon emissions in power generation by mid-century, and plan aggressive further expansions in clean energy generation. CLIMBING THE GENERATION RANKS In absolute generation terms, the five largest solar producers in Central/Eastern Europe still rank a distant third in the region behind the five largest solar producers in Western and Southern Europe. Through the first seven months of 2024, Western Europe's largest solar producers generated 83.53 TWh of electricity, while Southern Europe's five largest solar producers - Greece, Italy, Portugal, Spain and Turkey - generated 76.12 TWh, Ember data shows. The 25.2 TWh of solar electricity generated by Central and Europe's five largest solar producers looks small comparatively. However, over the past three years the Central/Eastern European region has boosted solar generation by roughly 49% a year, which dwarfs the 19% annual growth pace for Europe as a whole, the 16% pace of Western Europe, and the 21% for Southern Europe. If those growth rates were sustained for the rest of this decade, the generation total by the five largest Central and Eastern solar producers would surpass that of their peers in Western Europe in 2029 and those of Southern Europe in 2030. FURTHER GAINS The largest solar producers in Central/Eastern Europe already produce 76% more solar electricity than their peers in Northern Europe (Denmark, Finland, Lithuania, Sweden and the United Kingdom), and look primed for further aggressive solar growth across the region. Operations at the 60 megawatt (MW) capacity Tapolca solar farm in western Hungary began in late July, and will supply roughly enough electricity for 30,000 households annually, according to developer Enlight. And in Poland, a new 40 MW project developed by Lightsource BP commenced operations last month. The region's largest project, however, is the 400 MW farm in Apriltsi, Bulgaria, which boasts over 800,000 photovoltaic panels and is designed to supply electricity not just to Bulgarian customers but across Eastern Europe. And beyond being one of the biggest solar parks in Europe, the Apriltsi project is also significant for the height of its panels, which at 2.2 meters (7.2 feet) allow for the land below to be used for agriculture purposes. Further so-called agrivoltaic projects are being trialled in Turkey and Poland, and look set to yield additional clean electricity generation with only limited impact the region's farmland. And given the strong local policy support for traditional solar already in place, the successful deployment of more agrisolar projects could help the Central/Eastern Europe region gather even more solar generation momentum in the years ahead. Sign up here. https://www.reuters.com/business/energy/poland-hungary-become-key-new-drivers-europes-solar-growth-maguire-2024-08-20/