Asia / Pacific

Donald Trump's decision imposing a partial Venezuelan blockade marks a dramatic increase in U.S. political pressure on Venezuelan President Nicolas Maduro. But it could also undermine a key U.S. goal: deterring an eventual Chinese naval encirclement. The U.S. President on Tuesday ordered a "total and complete blockade" against all sanctioned oil tanks entering or leaving Venezuela. This was a move to choke off the main source of revenue for the Maduro regime. The action immediately raised questions about its legal status under international law. Military planners in the Indo-Pacific have feared for years that China could use a blockade of...

Pirelli, a tiremaker, said that on Thursday the majority of holders of the 500 million euro bond due to expire this month have chosen to convert the bond into new shares in the company. This has diluted the stakes owned by existing investors. Pirelli announced that bond holders had chosen to convert their bonds into shares at a price of 5.8493 euros per share, which was announced in June. Pirelli said that to meet the conversion, it would issue around 84.88 millions new shares, which will dilution its shareholder's?holdings. Sinochem, the largest shareholder in Pirelli, is expected to reduce its...

The Russian Foreign Ministry said Thursday that they hoped the U.S. President Donald Trump administration didn't make a fatal mistake over Venezuela. They also said that Moscow was concerned about U.S. actions that threaten international navigation. Trump ordered on Tuesday a "blockade", of all oil tankers sanctioned by Washington, that enter and leave Venezuela. Washington was trying to increase pressure against Nicolas Maduro’s government. After the U.S. seize a sanctioned oil tanker off the coasts of Venezuela, last week. Loaded vessels with?millions barrels of crude oil chose to stay in Venezuelan waters than risk being seized. In a press release,...

Australian shares recovered early losses and closed little?changed? on Thursday. Gains in heavily-weighted miners offset?a??drop? in top oil & gas producer Woodside Energy, after its CEO announced a surprising move to lead BP. After a three-day decline, the S&P/ASX 200 Index fell up to 0.4% and closed unchanged at 8,588.20. The main index, however, was on track to end its last full trading week in 2025, with a 1.3% drop, as sticky inflation and strong economic growth shattered expectations of future interest rate reductions. The markets now expect the central bank to make its next move upwards in the second...

The European Parliament approved Wednesday the plan to phase out Russian imports of gas by the end of 2027. This is the last legal hurdle that needs to be cleared before the ban can become law. The EU has agreed to legislation that will cut ties with Russia, Europe's former largest gas supplier. They had vowed to do this after Moscow's full-scale invasion in Ukraine 2022. The vote was 500 for, 120 against, and 32 abstained. The EU Ministers will still need to formally?approve the ban, which is expected in early?2019. Officials expect that countries will?approve the deal without any...

Three people with knowledge of the matter claim that Saudi Arabia's?Midad Energy?is one of the top contenders for the international assets of Russian?oil giant?Lukoil, taking advantage deep political ties between Moscow and Washington. Sources have confirmed that the assets, which are valued at around $22 billion, include oilfields, refineries, and thousands of fuel station worldwide. About a dozen investors have made bids for these assets, including U.S. major oil companies Exxon Mobil, Chevron, and private equity firm Carlyle. Lukoil wants to sell off its foreign operations, which were crippled by the U.S. sanctions that were imposed on October to pressure...

The central bank reported that Azerbaijan, a country heavily dependent on oil, saw its current-account surplus drop to $3.0 Billion, or 5.4% of gross domestic product (GDP), from $4.0 Billion in the same period last year. The bank stated that the fall in oil prices was the main reason for the decline in current account surplus. The oil and gas sector surplus decreased by 3.7% on an annual basis to $10.7 billion. Meanwhile, the non-oil & gas sector deficit increased by 7.5% to $7.7 Billion. The southern Caucasus' exports are largely based on oil and gas, which accounts for around...

South African miners have increased thermal coal exports after Colombia, the top supplier, banned shipments to Israel in August. Data from Kpler LSEG, and DBX Commodities revealed this. Colombia and South Africa are among Israel's loudest critics. The South American nation issued a presidential decree that enacted the export ban, after accusing Israel for killing tens-of-thousands in Gaza, including children. South Africa accused Israel of genocide before the International Court of Justice. Israel's Prime Minster Benjamin Netanyahu rejected this claim. Data from Kpler shows that Colombian coal exports into Israel fell to zero during the three-month period ending November after...

Four people familiar with the matter said that the U.S. Treasury rejected an 'offer' from a group headed by U.S. Bank Xtellus Partners to buy foreign assets of Russian Oil Company Lukoil. Xtellus was in a race with Exxon Mobil, Chevron and Abu Dhabi Group International Holding Company. MOL from Hungary and the U.S. Private Equity firm Carlyle are also still involved. The U.S. Treasury declined comment. Lukoil was willing to sell its assets in October after the U.S. sanctioned it and Kremlin controlled rival Rosneft to encourage Russia to reach a peace deal with Ukraine. Over a dozen companies...

Three people familiar with the matter said that the U.S. Treasury 'has rejected the offer of a group led U.S. -based Xtellus Partners to purchase the foreign assets owned by Russian oil.company Lukoil. Xtellus was competing with U.S. oil giants Exxon Mobil, Chevron and Abu Dhabi Group International Holding Company. Hungary's MOL, and U.S. Private Equity firm Carlyle are also still in the race. The U.S. Treasury declined comment. Lukoil was willing to sell its assets after the U.S. sanctioned it in October, along with the Kremlin controlled rival Rosneft to try to?push Russia towards a peaceful deal with Ukraine....

Holders of Pirelli's 500 million euro (582 million dollar)?bond? will decide on Monday if they want to convert the bond into shares. This could dilute the stakes that the existing investors hold in the group, who are fighting over the Italian tiremaker's governance. Sinochem, the Chinese state-owned company, and Marco Tronchetti Provera, an Italian businessman, both owning Camfin, have been at odds with each other in recent years. Camfin has complained that Sinochem's share is preventing the group from expanding into America. The tiremaker issued a five-year, no-coupon convertible bond at the end 2020. The bond is due to expire...

The British Financial Reporting Council announced on Monday that it has opened an investigation into Ernst & Young’s audit of Shell’s 2024 financial reports for possible violations of audit partner rotation regulations. Shell announced in July that it would update the 2023 and 2024 annual reports, due to EY not complying with the U.S. Securities and Exchange Commission’s audit partner rotation rules. The financial statements, however, would remain unchanged. U.S. SEC regulations require 'lead and review audit partners' to rotate every five years, with a cooling-off period of five years. 'Other key partners must rotate every seven?years after a two-year...

The U.S. government body that oversees the fund announced on Thursday that the Ukraine-U.S. Reconstruction Fund, created as part of a minerals 'deal' signed by the two countries in April, has approved its asset policies and is ready to review its first investment opportunities starting in 2026. In a press release, the Development Finance Corporation (DFC), said that the fund's 2nd meeting "reached the final consensus needed to bring the fund into full operational status". The DFC stated that potential deals could focus on energy and minerals development, as well as maritime infrastructure. Kyiv, under pressure from Donald Trump for...

Gold prices held firm on 'Thursday', reversing earlier losses, as U.S. inflation figures were softer than expected, confirming expectations for Federal Reserve rate reductions in 2026. As of 1424 GMT, spot gold was down by 0.1% to $4,333.57 per ounce. U.S. Gold Futures were also down 0.2% at $4,366.80. Data showed that U.S. consumer price index rose 2.7% on an annual basis in November. This was below the 3.1% rise forecast by economists?surveyed. After the data, futures on the federal fund rate increased the probability that the Federal Reserve would lower interest rates during its meeting in January. David Meger...

A finance ministry official announced?on Friday that Indonesia would issue investment instruments to earn from exporting natural resources. The goal is to ensure exporters follow the rules and keep the foreign currency earnings in the country. The 'new'regulation is intended to increase U.S. Dollar liquidity onshore and stabilize the rupiah rate. It will require that natural resource exporters retain all their foreign currency earnings starting January 1st in state banks for a minimum of a year, and restrict their use. Febrio Kacaribu is a senior official in the Finance Ministry. He told a news conference that new FX bonds will...

Silver hovered at record highs, despite a weaker dollar. Investors remained cautious ahead of U.S. inflation figures that could influence the Federal Reserve’s policy. As of 1023 GMT, spot gold was down 0.4% at $4,324.47 per ounce. U.S. Gold Futures were also down 0.4% at $4,355.70. Dollar index rose after reaching a high of?nearly a week on Wednesday. This made greenback-priced gold more expensive for foreign buyers. Spot silver dropped?0.4%, to $66.02 per ounce. It had previously reached a record-high of $66.88. The slightly stronger 'dollar is a headwind to both gold and silver )... Some cautious investors prefer to...

Iron ore futures continued to rise on Thursday. This was due to improved steel margins, and expectations of feedstock replenishment by steel mills in China, the top consumer. The largest iron ore contract on China's Dalian Commodity Exchange rose for the third consecutive session, ending daytime trading up 1.63% to 777.5 Yuan ($110.43), its highest level since December 8. As of 0722 GMT, the benchmark January iron ore traded on the Singapore Exchange had risen 0.87%. It was now trading at $104.55 per ton. The price of iron ore reached its highest level since November 27, at $104.6, earlier in...

Silver prices reached a new record of $66 per ounce on Wednesday. Meanwhile, gold prices firmed up as the U.S. Federal Reserve raised expectations of rate cuts after signs of an unsteady labor market. Spot silver increased by about 4%, to $66.3 per ounce. It had previously reached a session high of $66.51. Edward Meir, a Marex analyst, said that "silver is pulling up gold with it... There is some money moving out of gold into silver and platinum and palladium." "$70/oz" (for silver) seems to be the next logical goal in the short term. After rising by over 1%...

Silver prices briefly surpassed $66 per ounce on Wednesday to reach a new record high, while gold prices firmed as the Federal Reserve of the United States lowered rates after signs of a weaker job market and as tensions between Venezuela and the U.S. escalated. Spot silver increased 2.8%, to $65.55 per ounce. It had previously reached a session high of $66.52. Edward Meir, a Marex analyst, said: "Silver has pulled gold up with it. There is money moving out of gold into silver and platinum. "$70/oz" (for silver) seems to be the logical next target for the short term."...

Copper prices increased on Wednesday as persistent fears about possible shortages prompted speculators to buy. The benchmark three-month copper price on the London Metal Exchange gained?1.2%, to $11,721.50 per metric ton at 1110 GMT after losing 0.5% on Tuesday. LME copper prices have risen by 33% in the past year, and in recent weeks they've reached record highs. This is largely due to fears that mine disruptions will lead to a deficit in supply next year. Ewa Manthey, commodities strategist at ING, said that the copper market is still fundamentally tight. The risks are further disruptions of mines, and stronger...

The price of iron ore futures rose to a new high on Wednesday. This was due to the accelerated buying in the spot market, as steelmakers from the top consumer -China began stocking up feedstocks for consumption over the Lunar New Year holidays in February. The daytime trading price of the most traded iron ore contract at China's Dalian Commodity Exchange was 768 yuan (109.02 dollars) per metric ton. This is its highest level since December 11. As of 0751 GMT the benchmark January iron ore was up by 0.98%?at $103.55 per ton. This is the highest price since December...

The price of platinum futures at China's Guangzhou Futures Exchange increased for the fourth consecutive session, reaching a price ceiling on Wednesday. This was fueled by a growing demand for the precious metal after the record-breaking performance?of silver and gold. Platinum contracts for delivery in August, June, October, and December all reached the maximum. The June contract, the most active contract since its inception, soared 7% to $527.55 ($74.88), the highest price per gram. Palladium futures also surged, with the June contract, the most active, hitting the price ceiling with a 7% increase to 455,15 yuan a gram. This is...

South Korea's Industry Minister said on Wednesday that Korea Zinc’s plan to build a U.S. Smelter will help develop supply chains for essential minerals. Seoul may also discuss the possibility of receiving support from an U.S. Investment Fund. Korea Zinc announced on Monday a plan for a critical minerals refinery worth $7,4 billion in Tennessee. The project will be financed primarily by Washington. Kim Jung-kwan, Industry Minister, said at a 'press conference that he viewed the decision as a positive one for Korea Zinc despite its financial burden. Kim stated that "we concluded that those plans from Korea Zinc?will help...

Copper prices rose on Wednesday. The latest US labour market data revealed a rebound of?job creation but a higher unemployment rate in November. As of 0330 GMT, the most traded?copper contracts on the Shanghai Futures Exchange increased?0.30%, to?92550 yuan (about $13,139.40) per ton. The benchmark copper for three months on the London Metal Exchange rose 0.97%, to $11,704 per ton. Data showed that the U.S. job growth recovered in November despite unemployment being at a record high. Copper prices, on the other hand, have remained above $11,600 per ton. This is due to?supply concerns and prospects of a boom in...