Today’s briefing highlights key developments in energy and materials markets.
CRH and the S&P 500: The proposed $25.6bn acquisition of Interpublic Group (IPG US) by Omnicom Group (OMC US) is expected to close by September 11, though the timetable could be extended if the deal is delayed. Market watchers see CRH plc (CRH US) as the leading candidate to replace IPG in the S&P 500, with Cheniere Energy (LNG US) as a secondary option. CRH regained eligibility after reporting positive quarterly results in August.
Copper outlook
This note follows up on our piece from 10 days ago forecasting a short-term move above USD 10,000/ton. Copper is trading above USD 9,800/ton and looks positioned to test USD 10,000/ton, supported by the prospect of rate cuts and ongoing supply deficits, although high exchange inventories may limit upside. Our preferred exposures remain Southern Copper (SCCO US) and Antofagasta PLC (ANTO LN). A restart of the Cobre Panama mine — while unlikely — would be a positive catalyst for First Quantum Minerals (FM CN).
Iron ore and Fenix Resources
Benchmark pricing adjustments will lower the Platts reference grade from 62% to 61% effec...