Noble's EU aluminum chief to leave as metals shake-up widens: sources

Noble Group Ltd's chief aluminum trader in Europe Erik Gundersen will leave the Asian commodities merchant, three sources familiar with the matter said, as the shake-up of its loss-making metals and mining division widens. 

PHOTO: REUTERS

OCT 8, 20157:27 AM

[NEW YORK] Noble Group Ltd's chief aluminum trader in Europe Erik Gundersen will leave the Asian commodities merchant, three sources familiar with the matter said, as the shake-up of its loss-making metals and mining division widens.

The exact timing of his departure is not known, the sources who are not authorized to speak to the press, said.

A spokeswoman for Asia's biggest commodity trader declined to comment. Efforts to reach Gundersen, who is based in London, were unsuccessful.

News of his planned exit comes after two of his US counterparts, Scott Evans and Jeff Romanek, who handled copper, lead and zinc, left the company on Tuesday.

See who is talking about NOBLE GROUP

Last 30 days:

• 268
• 18
• 58

30 days avg

HOT COMPANIES

Tesco +553% messages

• SABMiller +398%
• Diageo +182%
• Experian +107%
• Lloyds Bank +89%
• Royal Mail +65%
• Glencore +60%
• Old Mutual +55%
• Hammerson +36%
• Rio Tinto +33%

• SABMiller +398%
• Diageo +182%
• Experian +107%
• Lloyds Bank +89%
• Royal Mail +65%
• Glencore +60%
• Old Mutual +55%
• Hammerson +36%
• Rio Tinto +33%

The departures come as the company seeks to shore up its balance sheet and reduce its exposure to capital-intensive operations like trading copper, and returns to its historic roots in aluminum and alumina.

The mining and metals segment, which accounted for about 20 per cent of the group's US$18 billion revenue in the second quarter, swung to a loss in the quarter for the first time since 2010 when the company started reporting operating income from supply chains.

It posted an operating loss from supply chains of US$19 million after an unprecedented drop in aluminum premiums. That compared with a profit of US$161 million in the same period last year.

Commodity traders carrying big inventory on behalf of customers have been hit by the collapse in surcharges, which are paid on top of the benchmark London Metal Exchange prices for physical delivery this year.

The company has said it will seek options, including selling core businesses, to boost market confidence after a bruising accounting dispute.

Gundersen has been with Noble for over nine years, joining from Norsk Hydro, the Norwegian aluminum producer, according to his LinkedIn profile.

It is not known what the traders would be doing next.

REUTERS

    
 

Coffee Day eyes US$1b valuation with biggest Indian IPO in 3 yrs

OCT 7, 20157:32 PM

[MUMBAI] India's Coffee Day Enterprises, which runs the nation's biggest coffee chain, said it is eyeing a valuation of as much as 67.5 billion rupees (S$1.46 billion) based on the issue price of its initial public offering next week that will be the biggest in the local market in nearly three years.

Coffee Day, which is selling new shares in the IPO, will dilute as much as 17.55 per cent on a post-issue basis to raise up to 11.5 billion rupees, according to a presentation made at a company news conference on Wednesday.

The company will sell 3.4 billion rupees worth of shares to cornerstone investors ahead of the IPO, managers to the IPO said. It is selling shares in a price range of 316 to 328 rupees in the issue that will open on Oct 14 and close on Oct. 16.

Coffee Day Enterprises, which counts private equity KKR and New Silk Route among its investors, runs the Cafe Coffee Day cafes with more than 1,500 stores in India and 14 overseas.

It also owns about 16 per cent of software services exporter MindTree Ltd and about 53 per cent in Sical Logistics Ltd.

Cafe Coffee Day competes with Starbucks Corp, Whitbread Plc's Costa Coffee, and Barista among others in a primarily tea-drinking country that has in recent years seen a surge in coffee consumption.

REUTERS

    
 

Oil falls after rise in US inventories, production

Oil prices fell on Wednesday after the release of the latest US oil data showed increasing inventories and an unexpected rebound in production.

PHOTO: AFP

OCT 8, 20156:48 AM

[NEW YORK] Oil prices fell on Wednesday after the release of the latest US oil data showed increasing inventories and an unexpected rebound in production.

The Department of Energy's weekly petroleum numbers dented hopes for another drop in US output that could spell a general tightening of global supplies.

New York's benchmark West Texas Intermediate (WTI) for delivery in November fell 72 cents to US$47.81 a barrel on the New York Mercantile Exchange.

Brent North Sea crude for delivery in November, the global benchmark, closed at US$51.33 a barrel in London, down 59 cents from Tuesday's settlement.

WTI, which added more than US$4 in the prior three sessions, had climbed to an intraday high above US$49 on Wednesday before the US government report knocked the wind out of the market.

US crude output, which had fallen by 40,000 barrels per day in the previous week, unexpectedly rose by 76,000 barrels per day in the week to October 2.

Commercial crude inventories jumped by 3.1 million barrels, more than the market estimate of 2.25 million barrels.

That brought inventories to 461.0 million barrels, more than 27 per cent higher than a year ago.

Gasoline inventories grew by nearly two million barrels, exceeding expectations.

Bart Melek of TD Securities said the high level of inventories pressured prices, but the rise in crude production was "the big negative" for the market.

"Our view is the recent rally kind of unwinds," he said.

Wells Fargo analysts said in a research report that "As the slow adjustments in supply and demand in the oil market persist, 2016 is likely to bring more large swings in prices, without much upward price trend."

AFP

   
 

Santander tried to delay news of 'serious' fine: court 

Spanish bank Santander was fined one million euros ($S1.59 million) for breaching laws against money laundering and terrorism financing and tried to delay authorities from reporting the sanction, a court said Wednesday. 

PHOTO: REUTERS

OCT 8, 20157:02 AM

[MADRID] Spanish bank Santander was fined one million euros ($S1.59 million) for breaching laws against money laundering and terrorism financing and tried to delay authorities from reporting the sanction, a court said Wednesday.

Ministers approved the fine for Santander, the eurozone's biggest bank by market capitalisation, in June for "a very serious offence", Spain's Supreme Court said in a written ruling.

It gave no details of the offence but said it breached a "law for the prevention of money laundering and financing of terrorism".

Santander declined to comment on the case when contacted by AFP.

See who is talking about BANCO SANTANDER

Last 30 days:

• 354
• 21
• 227

30 days avg

HOT COMPANIES

Tesco +550% messages

• SABMiller +395%
• Diageo +182%
• Experian +107%
• Lloyds Bank +89%
• Glencore +56%
• Old Mutual +55%
• Royal Mail +47%
• Hammerson +36%
• Wolseley +32%

• SABMiller +395%
• Diageo +182%
• Experian +107%
• Lloyds Bank +89%
• Glencore +56%
• Old Mutual +55%
• Royal Mail +47%
• Hammerson +36%
• Wolseley +32%

In the ruling, dated October 2 and released by the court on Wednesday, judges rejected Santander's request to delay news of the fine being published in Spain's official journal.

The bank argued its image would be irreparably damaged by news of the fine and that there was no need to publish it immediately, the ruling said.

But the court ruled it was in the public interest to inform the markets of the fine on the grounds of banking transparency.

The amount was small compared to fines Santander and other big banks have received in the past, but the reference to a "serious" offence drew media attention.

Thanks to its overseas operations, Santander was relatively unscathed by the crisis that struck Spain's banking sector from 2008.

It saw its quarterly profits surge 17 per cent to 1.7 billion euros in the second quarter of this year.

AFP