Rio Tinto launches Pilbara JV, Tullow Oil H1 profits surge

London pre-open

The FTSE 100 was being called to open 58.7 points lower ahead of the bell on Wednesday after closing out the previous session 1.17% lower at 7,385.86.

Stocks to watch

Mining giant Rio Tinto has formed a joint venture with China Baowu Steel Group to develop the Western Range iron ore project in Western Australia's Pilbara region.

Rio Tinto, which will take up a controlling 54% stake in the project, will invest $1.3bn to develop the mine, with Baowu putting in an additional $700.0m. Construction was forecast to begin in early 2023, while first production from the site was projected to take place in 2025.

Exploration and production firm Tullow Oil said on Wednesday that sales revenues and gross profits had grown in the six months ended 30 June as the group's turnaround gained momentum throughout the period.

Tullow Oil said interim sales revenues had risen from $727.0m to $846.0m, while gross profits almost doubled from $321.0m to $620.0m, and pre-tax profits shot up from $93.0m to $264.0m.

Newspaper round-up

US freight railroad workers are close to striking over claims that grueling schedules and poor working conditions have been driving employees out of the industry over the past several years. Heated negotiations over a new union contract between railroad corporations and 150,000-member-strong labor unions have been ongoing for nearly three years. A "cooling off" period imposed by the Biden administration after it issued recommendations to settle the dispute ends on Friday. If no deal is reached, unions are threatening industrial action – the first since 1992 – and workers say they will quit an industry already facing staff shortages. – Guardian

The Worcester owners have confirmed they have reached an agreement for the sale of the club in a move that looks set to save the Warriors from financial disaster if it proves successful. As reported by the Guardian on Monday, a deal has been agreed with an unidentified buyer, giving rise to optimism that Worcester's burgeoning debts of £25.0m – including the £6.0m owed to HMRC by 6 October – will betaken on and the club can avoid going into administration, which would, in turn, lead to relegation. – Guardian

Deloitte is creating at least 1,000 new jobs outside of London as it joins a rush of City firms expanding beyond the capital. The Big Four firm will add the new roles in Northern Ireland, Scotland, Wales, and the north of England over the next five years in a boost for the country's regional economies. – Telegraph

Liz Truss is being urged to relax the limits on earthquakes caused by fracking as part of plans to kickstart an energy revolution. The Prime Minister is already poised to end the moratorium on fracking within days in a bid to make Britain energy independent by 2040. But companies say this alone will not be enough to unlock Britain's potentially vast shale gas reserves. The Telegraph understands fracking businesses are lobbying for the limits on seismic activity to be substantially increased to help kickstart the industry. – Telegraph

The FBI informed Twitter of at least one Chinese agent working at the company, US senator Chuck Grassley told a Senate hearing yesterday where a whistleblower testified, raising new concerns about foreign meddling at the influential social media platform. Peiter "Mudge" Zatko, a former hacker who served as Twitter’s head of security until he was fired last year, said some Twitter employees were concerned that the Chinese government would be able to collect data on the company's users. – The Times

Drew Nelson, the former owner of Newport Wafer Fab, is reportedly close to a deal with a private equity firm to buy back Britain's biggest semiconductor manufacturer, if the government decides to unwind its purchase by the Chinese-owned business Nexperia. The investor, Palladian Investment Partners, also considered teaming up with Nelson to rescue the business last year but this was rejected by Nexperia, a key customer, shareholder and board member, because it said the terms were too punitive. – The Times

US close

Wall Street stocks tumbled on Tuesday, registering their worst session in more than two years after August's CPI reading came in hotter than expected.

At the close, the Dow Jones Industrial Average was down 3.94% at 31,104.97, while the S&P 500 lost 4.32% to 3,932.69, and the Nasdaq Composite saw out the session 5.16% weaker at 11,633.57.

Reporting by Iain Gilbert at Sharecast.com