GLNCY Glencore Plc (PK)

MARKET MOVEMENTS:

--Brent crude oil fell 1.9% to $73.41 a barrel

--European natural gas prices fell 8.5% to EUR29.33 a megawatt hour

--Gold futures edged up 0.1% to $1,980.00 a troy ounce

--LME three-month copper futures edged down 0.3% to $8,318 a metric ton.

--Wheat futures rose 0.5% to $6.33 a bushel

TOP STORY:

Glencore Approaches Teck Over Its Coal Business

Swiss mining and trading giant Glencore has approached Canadian miner Teck Resources over buying its coal assets, the companies said, providing an alternative to Glencore's original proposal for a full-blown merger between the two miners.

Glencore's original merger offer is still on the table, but the company has indicated to Teck that it would also be willing to buy just the coal business--which it had previously valued at more than $8 billion--if that is the only asset up for sale.

The Wall Street Journal previously reported Glencore's approach.

Glencore previously said it could revise its roughly $23 billion bid for the whole company if Teck were to engage on a potential transaction. So far, though, Teck has rejected that proposal. Teck said in its statement that it is engaging with Glencore about its proposal, which it called "preliminary in detail, conditional and non-binding."

OTHER STORIES:

Iberdrola to Build Renewable Energy Network Co-Financed by European Investment Bank

Iberdrola will build a network of 22 renewable-energy plants in Europe after signing a 1 billion euro ($1.07 billion) loan with the European Investment Bank.

The Spanish energy company on Monday said the loan will co-finance the construction of 19 solar power plants and three onshore wind farms in Spain, Portugal and Germany. The projects will have a total installed capacity of 2.2 gigawatts.

MARKET TALKS:

Government Investments Could Prop Up Frontier Lithium's Competitiveness -- Market Talk

0654 ET - There are a few catalysts that can help Frontier Lithium on its way to developing a top tier lithium project in Canada, Wayne Lam of RBC says in a note. As provincial governments step up their investments in the surrounding areas, like in northern Ontario and Quebec, this could give a boost to lithium developers like Frontier Lithium develop and compete on a larger scale. Lam sees "potential upside via government assistance with infrastructure and/or construction in order to maintain competitiveness vs funding commitments undertaken in the US via the Inflation Reduction Act." (adriano.marchese@wsj.com)

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Land Mines, Dam Flooding To Have Lasting Impact on Ukraine Agriculture

0908 GMT - Land mines across Ukraine and the recent flooding of the southeastern region from the explosion of the Kakhovka dam are likely to have a lasting impact on the country's agricultural output, according to Taras Kachka, Ukraine's Deputy Minister for Economic Development. For agriculture there was a long-term cost of the war and land was being "contaminated", he said speaking at the International Grains Council Conference in London. He said 100,000 hectares was likely contaminated by mines, and that Ukraine was working to ensure the land would not be affected by toxins released by those mines. The flooding would also likely have contaminated the land with garbage, but it would take time to see the long-term impact of this, he added. (yusuf.khan@wsj.com)

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Goldman Sachs Trims Oil Forecasts Despite Saudi Cut

0840 GMT - Goldman Sachs cuts its oil prices forecasts after crude has shrugged at a planned production cut from Saudi Arabia. The bank now believes oil prices will end the year at $86 a barrel, down from its earlier forecast of $95 a barrel. For 2023, Goldman forecasts an average price of $82 a barrel, compared to its prior $88 a barrel forecast. Stronger-than-expected supplies are the biggest reason for the change and explain why oil prices have tumbled in recent months, the bank says. It increases its 2024 supply forecasts for Russia, Iran and Venezuela. The Saudi plan to slash output by 1 million barrels a day from July will only partly offset that increased supply, Goldman says in a note. (william.horner@wsj.com)

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Powell's Comments Seen Key for Gold Prices

0809 GMT - Metals prices are subdued ahead of a busy week of macroeconomic data. Gold futures edge down 0.1% to $1,974.80 a troy ounce while three-month copper prices on the LME decline 0.3% to $8,317 a metric ton. U.S. inflation data Tuesday and the Federal Reserve's meeting Wednesday will be key for metals, particularly gold. The Fed is broadly expected to keep rates unchanged for the time being as it waits to see how inflation develops. "Gold traders will be reading between the lines, and looking for any signal from Powell that the U.S. is heading for a recession or that core inflation remains sticky," says Stuart O'Reilly, an analyst at the Royal Mint. (william.horner@wsj.com)

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Oil Slips as Investors Await US Rate Decision

0758 GMT - Oil prices slip as investors eye an important week for the U.S. economy. Brent crude oil is down 1.3% at $73.82 a barrel while WTI declines 1.4% to $69.20 a barrel. Analysts say concerns about the economic outlook are driving oil prices lower and that investors are, for now, ignoring signs of a sharply tightening oil market. Oil prices are caught between "bearish asset allocators who point to monetary contraction and bullish oil speculators expecting lower inventories," Bank of America says in a note. As a result, U.S. inflation figures on Tuesday and a meeting of the Federal Reserve on Wednesday will be key for the direction oil takes. (william.horner@wsj.com)

(END) Dow Jones Newswires

June 12, 2023 07:24 ET (11:24 GMT)

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