Glencore’s Unforgettable Week Ends  Right Back Where It Started
World Economy

Glencore’s Unforgettable Week Ends Right Back Where It Started

One of the biggest weeks in Glencore Plc’s history will be recorded as one that looked ordinary, according to Bloomberg.
The shares ended with a 2.3% loss for the week, a tiny move for the company that’s lost $44 billion in market value this year. The stock endured record swings, plummeting 29% on Monday only to claw back most of the decline as Glencore worked to soothe investor concerns about the company’s solvency.
While questions remain about how Glencore can be profitable if commodity prices continue tumbling, the frantic worries over whether it will collapse under a $30 billion debt pile seem to have eased. The company released a statement on Tuesday saying its business is “robust” and it has secure access to funding. Analysts including Citigroup Inc. called the stock selloff unjustified and recommended buying the shares.
“It was a massive move on Monday, but Glencore has proved that it is bigger than that,” Rene Hochreiter, an analyst at Noah Capital Markets (Pty) Ltd., said by phone from Cape Town on Friday. “It has huge assets under its control. It is doing all the right things, and doing so much faster than other mining companies.”
Glencore is in the middle of a restructuring to withstand lower commodity prices and bolster its finances. It has stopped paying a dividend, sold $2.5 billion in new shares and is in the process of selling assets, such as a stake in its agriculture unit and future gold and silver production, according to people familiar with the matter. The stock climbed on Friday after Bloomberg News reported Singapore’s sovereign wealth fund, Mitsui & Co. and at least one Canadian pension fund have expressed interest in buying a minority stake in the agriculture business, said two people familiar with the conversations who asked to not be identified because the matter is confidential.
As Glencore’s stock started rebounding, Chief Executive Officer Ivan Glasenberg told staff that the company “will emerge even stronger” and its plan to curb debt is sufficient, according to a Sept. 29 memo e-mailed to staff and seen by Bloomberg News.
“We are materially cash-generative at current spot commodity prices,” Glasenberg wrote in the memo.

Short URL : https://goo.gl/4lN8RV
  1. https://goo.gl/XvLbOS
  • https://goo.gl/p1d0Z4
  • https://goo.gl/IzeRYy
  • https://goo.gl/G2hwPN
  • https://goo.gl/bhZHBe

You can also read ...

India Launches 888 Anti-Dumping Probes
The Indian government has initiated as many as 214 anti-...
Federal Reserve Board Chairman Jerome Powell speaks during a hearing before the Senate Banking, Housing and Urban Affairs Committee.
US Federal Reserve Chairman Jerome Powell said protectionism...
Fitch Retains Philippine  Debt Rating
Global debt watcher Fitch Ratings kept the Philippines’...
Shifting transactions from cash to digital payments holds great promise for  individuals, businesses and governments.
More than 23% of the world's economy operates out of sight of...
UN to Help Rebuild Gaza Economy, Create Jobs
Against the backdrop of rapidly rising tension, violence,...
EU to Fine Google $5 Billion
Google will be fined about €4.3 billion ($5 billion) by the...
Lloyds Loses Mortgage Market Share
Lloyds lost market share in UK mortgages last year as Royal...
The warnings come amid a period of financial uncertainty for the world.
US officials who helped the country survive the 2008 financial...