Kayakers try to block the departure of the Shell Oil “Polar Pioneer” rig platform to be used in offshore drilling operations in Alaska as it moved from Elliott Bay in Seattle, Washington. Shell yesterday scrapped its controversial offshore exploration in Alaska after failing to find sufficient quantities of oil and gas, and also cited high costs and challenging regulation.

AFP
London


European equities sank yesterday as more disappointing Chinese data and downbeat analyst comment weighed on the mining sector, with London-listed Glencore hit the hardest.
London’s benchmark FTSE 100 index ended the day down 2.46% to 5,958.86 points compared with Friday’s close.
In the eurozone, Frankfurt’s DAX 30 finished 2.12% lower at 9,483.55 points and the Paris CAC 40 plunged 2.76% to 4,357.05.
In foreign exchange activity, the euro edged up to $1.1235 from $1.1202 late on Friday in New York.
Europe’s markets sank as data showed China’s crucial industrial companies saw profits fall 8.8% in August—hit by last month’s shock yuan devaluation, weak demand and plunging share prices.
The result is the latest evidence of China’s economic slowdown, after news last week that a gauge of factory activity in September had hit its lowest point in six-and-a-half years.
The “dire factory profit figure from China seems to have spooked investors,” said Spreadex analyst Connor Campbell, saying the upshot was steep drops on Europe’s three main stock exchanges, and further declines in previously depressed commodity prices.
In recent weeks and months, slowing growth in China has fuelled turmoil across world markets as the country is a key driver of the global economy.
US investors also took fright at the Chinese data as Wall Street shares fell yesterday, with the Dow Jones Industrial Average falling 1.34% to 16,096.80 points near mid-day trade in New York.
The broad-based S&P 500 lost 1.71% to 1,898.31 points, while the tech-rich Nasdaq Composite Index dropped 2.01% to 4,592.51.
The main victim in yesterday’s European slide was mining giant Glencore, whose share price collapsed by nearly a third in London after a dire broker warning.
Glencore shares closed down 29.42% to 68.62 pence, hammered after online brokerage Investec warned about the impact of low commodity prices on the group as China’s economic slowdown weighs on demand for raw materials.
“The challenging environment for mining companies leads us to the question of how much value will be left for equity holders if commodity prices do not improve,” Investec said in a research note to clients. “If major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate.”
Earlier this month, Glencore had raised $2.5bn via a shares sale as part of its vast debt slashing plan.
In London trade, Anglo American stock dived 10.09% to close at 552.70 pence.
On the upside in London, shares in brewer SABMiller jumped 1.30% to 3,634.50 pence on reports that Belgian-Brazilian giant AB InBev was set to launch a formal takeover bid.
London-listed Royal Dutch Shell meanwhile saw its shares drop to 1,508.50 pence after the Anglo-Dutch energy giant halted its exploration in Alaska.
Shell said in a statement that its Burger J well in the Chukchi Sea, off the northwest coast of Alaska, had failed to find sufficient amounts of oil and gas.
The group began drilling there in July, two months after US President Barack Obama approved its Arctic drilling, despite fervent opposition from environmentalists.
Shell, which is also slashing its headcount by 6,500 this year owing to sliding oil prices, described its decision to pull out of Alaska as “disappointing” and warned it would take a major financial hit.