News You Can Use for Monday
MINING RICH SEAM OF MERGER MANIA
After weeks of speculation, British-based Rio Tinto is to pay $38bn (pounds 19bn) in cash for Alcan, the Canadian producer of aluminium, an essential material used to make aircraft components, soft drink cans and packaging. The deal, which will make Rio the world's largest mining company worth pounds 70bn, is the latest in a series of colossal mergers in the industry.
The value of deals struck so far this year has hit $139bn, according to research firm Dealogic, and could easily top last year's $220.5bn as analysts speculate over further mega mergers.
Uranium Short Sellers Make Record Bets Against Cameco, Market
July 16 (Bloomberg) -- An unprecedented number of short sellers are attempting to exploit the uranium mania that prompted more than 12 mining companies to quintuple their share prices during the past four years. Demand from utilities to fuel nuclear reactors has plunged 72 percent from an April 6 peak, according to TradeTech LLC, which has tracked uranium prices since 1968. In the second week of July, 3.4 million pounds of the metal was available, more than three times the amount purchased by power companies.
PetroChina's Production Climbs 3.7 Percent, Outpacing Exxon Mobil, Shell PetroChina Co., the nation's biggest oil company, increased first-half production 3.7 percent, surpassing growth at Exxon Mobil Corp. and Royal Dutch Shell Plc as China intensifies efforts to meet energy demand.
Yen Is Near Record Low Against Euro as Investors Increase Carry Trades The yen traded near a record low against the euro on speculation investors will keep borrowing the currency to buy higher-yielding assets in so-called carry trades.
U.K. Pound Rises to 26-Year High Versus Dollar on Outlook for Rates The pound rose to a 26-year high against the dollar on speculation the Bank of England will keep raising interest rates while the Federal Reserve stays on hold.
posted by Sean Brodrick @ 6:39 AM
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