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Investors uneasy over AI disruption, but stocks steady
The global stock market stabilised on Monday, following a fall?caused by a variety of factors. These ranged from the uncertainty surrounding President Donald Trump's policy regarding tariffs and geopolitical tensions, to the renewed?concerns about the economic upheaval caused by artificial intelligence. The Supreme Court ruled that Trump's emergency tariffs are illegal?on?Friday. Following this ruling, the President announced a 10% levy across the board, which went into effect on?Tuesday. Trump said that the tariff was 15% but it wasn't clear when or if this would be applied. Trade partners and investors are unaware of the status of many tariff agreements, which could result in billions in refunds for importers. The MSCI All-World Index was unchanged. In Europe, the STOXX 600 climbed 0.2% in order to reach record highs. U.S. Stock Futures rose 0.4%. BEARISH ANALYSIS OF?EFFECTS of AI GETS ATTENTION The Nasdaq Composite fell 1.1% on Monday as concerns about the effects of AI in software and other industries caused the S&P 500 to fall 1%. Citrini Research's bearish analysis of the possible risks for the global economy has further weakened investor sentiment. Tony Sycamore said that the?report "got a lot airplay" according to Tony Sycamore. Tony Sycamore is IG's market analyst in Sydney. It does match up with a lot of fears that are already out there. This article circulated over the weekend and is just one of many recent "think pieces" that discuss the long-term effects of artificial intelligence on employment, growth, and even the existence of humans. In a note he wrote about a similar article, Deutsche Bank Strategist?Jim Reid stated: "The argument relies heavily on narrative and emotions rather than hard facts." It doesn't necessarily mean that it will be wrong in the end, but...the vibes-to substance ratio is undeniably large." Wall Street saw a range of software stocks and payment companies drop on Monday. International Business Machines shares plunged more than 13% in one day, their largest drop since the late 2000s. This was after AI startup Anthropic announced that its Claude Code could be used to update a programming system run by the company. IBM stock rose 0.5% during premarket trading. Many are nervous about the sheer size of corporate borrowings and AI spending, especially given the market weight of the companies that have been at the center of this boom. Despite recent volatility, S&P is still only 2.5% below its record highs. Chris Turner, ING's strategist, said that "none of...this has yet delivered the knockout blow to equity market, where S&P 500 has gyrated within a small 6,775-7000 range since the beginning of the _year". "Tomorrow night's Nvidia announcement might be the next big thing, however." Nvidia is an AI chipmaker that will report earnings on Wednesday after the bell. It accounts for about 8% of S&P 500. FEDEX SUES FOR REFUNDS AFTER U.S. TARIFF RULING Trump warned on Monday that countries should not back out of trade agreements recently negotiated with the U.S. following the Supreme Court's tariffs ruling. He said he would impose higher duties under different trade laws. The new tariffs were based on Section 122 from the Trade Act 'of 1974. This has caused further confusion among markets that are trying to 'come to terms with U.S. protectionism policies. FedEx, a global transportation company, sued on Monday for a refund. The dollar is steady at $1.178 and up 0.8% against the yen. Brent crude was little changed in the commodities market, trading at $71.43 a barrel. Meanwhile, tensions between the U.S.A. and Iran continued to simmer. Gold, the safe-haven, remained volatile and fell 1.25% to $5,166 per ounce. (Additional reporting from Gregor Stuart Hunter, Singapore; Editing and production by Kevin Liffey, Alex Richardson).
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Nippon Steel raises $3.9 billion through Japan's largest convertible bond issue
Nippon Steel decided to increase its convertible bond offering to 600 billion yen, the largest in Japan's corporate histories. The company is seeking to refinance their $15 billion acquisition of U.S. Steel as well as fund business expansion. The company announced on Tuesday it would increase the offering by 50 billion yen in total, in two equal tranches. This was based on the investor demand and the market conditions. It aims to invest 6 trillion dollars yen over the next five-year period, including an investment of $11 billion into U.S. Steel to fund growth. Nippon Steel increased the size of its offer after announcing plans to raise 275 billion each in 2029 and 2030, with zero coupons and stock acquisition rights. The report cited sources to discuss Nippon Steel’s plans to sell convertible bonds, in order to replace the bridge loan that it had taken out to purchase U.S. Steel. Jefferies analysts said in a report that the company chose convertible bonds instead of an equity offering to limit immediate shareholder dilution. They described the bond operation planned as the largest by any Japanese firm. The funding plan is a turning point for Nippon Steel, allowing it to concentrate on growth overseas while maintaining financial discipline. Nippon Steel has increased its forecast of its net loss for the year ending March to 70 billion yen, due to an explosion at a blast furnace and charges related to U.S. Steel's acquisition. The company plans to increase the annual global crude steel production capacity from 82 millions metric tons to 100 million by mid-2030s. $1 = 155.8700 Japanese yen (Reporting and editing by Tom Hogue; Andrei Khalip, Anil D'Silva, and Anil Hogue)
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Study says that the Congo lakes release ancient carbon and raise climate concerns.
Scientists say that two large lakes in the Democratic Republic of Congo are releasing carbon which has been 'locked away' for thousands of yeas in peatlands around them. This could pose a threat to climatic stability. Researchers from the ETH Zurich published their findings in Nature Geoscience. Tropical peatlands play a vital role in climate regulation. Researchers from ETH Zurich have found that the ancient peat deposits in Lakes 'Mai Ndombe' and 'Tumba, which are some 3,000 years old, account for up to 40% of the carbon dioxide emissions. In a press release, Travis Drake, the lead author of the study, said: "We were surprised that ancient carbon was being released through the lake." Matti Barthel, co-author, said that the carbon?reservoir had a leak from which old carbon was escaping. There is no clear way to determine how carbon gets from peatlands to lakes. Researchers believe the phenomenon may worsen due to climate change and changes in land usage, like the conversion of forestland into cropland. This increases the drought conditions. The peat that is formed by the accumulation of dead plants does not decompose when it's flooded with water. However, as soon as the peat dries out, the organisms which 'break down? plant material revive, and the carbon returns to the atmosphere. The Congo Basin's swamps and tropical peatlands cover just 0.3% of Earth's surface but store one-third the world’s carbon. This makes the area a global carbon reservoir. Researchers say that it is 'one of the least studied major forest regions in the world,' and they need to do more research on its changing ecosystems. Clement Bonnerot (reporting, writing, and editing) Alexandra Hudson
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Weisfisch to sell Glencore almost $115 Million of cobalt, according to sources
Glencore agreed to buy nearly 2,000 tons of cobalt from Rami Weisfisch, an industry veteran. The deal is a historic one. Two sources confirmed that the material, which is essential for defense and military gear, will be shipped to the United States to be included in its planned stockpile. The U.S. administration of President Donald Trump is actively seeking out critical materials, including cobalt, to reduce its dependence on China. China is the world's dominant supplier and processor for metals and minerals required by strategic industries. China has used its power to impose quotas, new regulations and ban the export of certain minerals. The sources say that the London-listed miner Glencore had agreed to purchase cobalt over a period of 12 months from Weisfisch in 2026, using a formula based on the prices reported by the price reporting agency "Fastmarkets". Weisfisch & Glencore declined comment. Weissfisch acquires COBALT in 2015 Sources said that the deal marked the end of Weisfisch’s involvement in the cobalt market for the past half century. Weisfisch's cobalt from 2015 is being stored in Europe and?the United States. Sources expect Glencore to'sell cobalt to U.S. as part of Project Vault. This initiative is to stockpile essential minerals backed up by $10 billion seed funding from U.S. Export-Import Bank, and $2 billion private funding. At a briefing held last week, CEO Gary Nagle announced that Glencore would be participating in the project. Weisfisch reached an agreement with Glencore, a Swiss company, after the U.S. Defense Logistics Agency canceled a cobalt tender in October of last year. The original August 19 announcement was amended several times before it was withdrawn. Last year, the DLA said it would still purchase cobalt to be used in the National Defense Stockpile. However, it was reevaluating its strategy and did not have a target date for issuing a new tender. The company was originally looking for?offers only from three companies –?Vale’s Port Colborne, and Long Harbour plants located in Canada; Japan’s Sumitomo metal mining and Glencore’s Nikkelverk operations in Norway. CONGO QUOTAS Prices have risen due to expectations of a stronger cobalt market, as well as?tight supply created by the top producer Democratic Republic of Congo, which suspended exports between mid-February and end-February when it implemented quotas. They are 160% higher than levels in February 2025. Congo's cobalt? is a by-product of copper production and comes as hydroxide, which can be easily converted into cobaltsulphate to produce lithium-ion battery for electric vehicles and portable devices. China, which is the world's largest cobalt processor and has been scrambling for supplies, was most affected by Congo’s export bans and quotas. (Reporting and editing by Pratima Deai, Louise Heavens, Jan Harvey and Veronica Brown)
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Nigeria will start exporting a new crude grade by March and boost output
Cawthorne crude is similar to Bonny Light and valued for its gasoline and diesel yields Cawthorne export via vessel with a capacity of 2.2 million barrels, increasing production Kpler claims that Nigeria's crude oil and condensate production could reach 1.7 million barrels per day. Seher Dareen and Isaac Anyaogu LONDON, FEB 24 - Nigerian state oil firm NNPC plans to export a new sweet, light crude grade named Cawthorne in March. This will add to the recent increase in production from Africa's largest exporter. This launch is part a broader effort by Nigeria to increase production. It has been hampered for years?by unrest, theft of crude oil, and other factors. Two new grades have also been introduced since 2024. Nigeria is one of the countries that are seeking a higher target in the producer group, despite already pumping near its OPEC quota. Cawthorne Crude, which will be exported by the third week of March, according to a reliable source, has an API gravity of 36.4. This makes it comparable to Nigeria's Bonny Light oil, valued for the high yields of both gasoline and diesel. A trader reported that NNPC issued a tender last week for the grade of March 24-25. Analysts at Kpler stated in a report that the grade will be exported via the Floating storage and offloading vessel 'Cawthorne'. This vessel has a capacity to 2.2 million barrels, and aims to increase crude oil -transportation and -production from Oil Mining Lease 18, and the surrounding assets,in the Eastern Niger Delta. Kpler stated that, based on the storage limitations of the vessel, Cawthorne's supply could increase from the current?1.65m barrels per day to 1.7m bpd by the end of the year. Nigeria's OPEC+ oil production quota for crude is 1.5 million?bpd. The country produced 1.48?million bpd during January, according to OPEC data. Obodo 2025, and Utapate 2024 are other grades that Nigeria has introduced in the last few years. Reporting by Seher dareen in London, Issac anyaogu and editing by Alex Lawler & Louise Heavens
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Japan's top business lobby cancels private meeting with activist Fund Elliott
Keidanren has postponed a meeting with activist investor, Elliott Investment Management, scheduled for next month, a spokesman from the lobby group announced?on Tuesday. Last month, it was reported that the meeting planned for March 5 would be an opportunity to have an Elliott portfolio manager responsible for Japanese equity investments outline their investment strategy and how they engage with companies. This would then be followed by a "frank exchange" of views. Keidanren's official declined to elaborate on the reasons for postponing the meeting. Elliott didn't respond to our request for comment. Elliott is a major player in Japan. It has stakes and pushes for change at a number of'major' companies. They are also opposed to Toyota Industries buying out the forklift manufacturer Toyota Industries. The Toyota deal has been hailed as a case study in corporate governance, where the Japanese regulators encourage companies to reduce cross-shareholding arrangements and improve capital efficiency. Elliott criticized the deal for being underpriced, and lacking in transparency. Toyota, a member of the lobby group has extended its tender offer until March 2 due to a lack of shareholder support. Elliott has offered buy shares to investors who have agreed to accept the offer. If successful, this would translate to reduced support for the purchase. The activist investor?has taken stakes?into other companies, such as?Tokyo Gas and Kansai Electrical Power, which are all members of the lobbying group.
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Gulf markets mixed as Saudi Arabia is down on fiscal concerns
On Tuesday, Gulf stock markets showed mixed results, with Saudi Arabia losing ground due to fiscal concerns while Dubai extending gains from the previous session. Saudi Arabia's benchmark index fell 0.6% following a'slight' recovery in the previous session, as the kingdom’s budget deficit increased quarter-on-quarter because of higher expenditures. Saudi Telecom Company fell 1.7%, while Saudi Aramco lost 0.6%. According to trade sources, it was reported that Aramco had sold several shipments ultra-light crude oil from its $100 billion Jafurah plant to U.S. refiners and majors in India before its first export this month. Dubai's main stock index rose by 0.2% after a nearly 2-percent jump the previous session. This was a rally that was boosted by a 1.7% increase in Dubai Islamic Bank, and a 0.6% rise in blue-chip developer Emaar Properties. The Abu Dhabi stock index increased by 0.3% on Monday, adding to the gains of Monday. First Abu Dhabi Bank rose 0.5%. Qatar's stock market index fell 0.4% due to a decline in banking stocks. Qatar National Bank, which is the largest lender in the region, has fallen by more than 0.5 percent, after having its best daily performance since mid-October the previous session. 5C Investment Partners, a U.S. private credit investment company, announced a partnership with Qatar Investment Authority in order to expand its direct lending platform. U.S. president?Donald Trump warned on Monday against countries reneging upon recently negotiated deals with the U.S., after the Supreme Court ruled?down his?emergency tariffs. He said he would impose a significantly higher duty?under alternative trading laws. He announced on Saturday that he will increase the temporary tariff for U.S. Imports from all countries, to?15%, up from the 10% maximum allowed by law. Investors will also be watching the third round of nuclear negotiations between Iran and United States that is scheduled for Geneva on Thursday.
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Ukrainian steelmaker Metinvest explores bond sale as deadline for debt nears
Metinvest, the Ukrainian steel giant, is looking at a new debt issue to cover an upcoming bond payment of?nearly $430 million due in April. It has also been in talks about restructuring. Metinvest is Ukraine's biggest?private company. However, the four years of?punishing war with Russia have?seen?it lose around half of its operations. This includes some of its largest steel and coal plants. It paused discussions with a group bondholders earlier this month about restructuring its debt of $1,25 billion, saying that it would look at "alternative liabilities management transactions". Metinvest CEO Yuriyryzhenkov spoke about the four-year anniversary on Tuesday of the war and its impact. He also discussed the options for the financial situation. He said that the company was considering "many options", particularly after the poultry giant MHP became the first Ukrainian company to issue an international bond since the outbreak of the war in Ukraine 2022. Ryzhenkov said that he was listening to the market and what investors can accept. "We'd be happy to use a 3-year or 5-year bond. It depends on other details such as covenants and?costs of debt. We'll "have to strike a sort of balance." What is an acceptable cost? Metinvest will have to pay about 1-2 percentage points higher than the 10,5% MHP borrowed last month for $450 million spread over three years, according to bankers. Alan Siow, co-head of EM Corporate Debt for Ninety One, said that this would be a very high price, and it wouldn't be sustainable over the long run. It would allow the company to retain market access, and then refinance the debt at a lower rate if the situation improved. Ryzhenkov stated that Metinvest could also consider a private debt agreement, using existing resources or returning to the restructuring options discussed in recent months. Ryzhenkov said there was "leeway" on the amount it would have to borrow if it chose a bond. It must make a $428-million payment by April 23 but it has some cash that could be used. "Depending on market conditions, we could go for $300,000,000 (bonds) or $500, if we have good conversations and the cost is reasonable." A spokesperson from Deutsche Bank, who helped organize a roadshow for Metinvest investors recently, did not immediately respond to a question about the 'potential of a bond sale. Ryzhenkov stated that Metinvest had some time left before a decision was needed and that he took an optimistic outlook. He said: "Either we can find a market solution that will solve everything or we'll reach an agreement with creditors to reprofile our bond."
Investors jittery about AI disruption as stocks dip
The global stock market fell for a second consecutive day on Tuesday. This was due to a variety of factors, including uncertainty about President Donald Trump's policy on tariffs, geopolitical tensions, and a renewed concern over the economic upheaval caused by artificial intelligence.
The president announced that a 10% levy would be applied across the board after the Supreme Court declared Trump's emergency tariffs illegal?on?Friday.
Effect on Tuesday
. Trump said that the tariffs would be 15% but it wasn't clear when or if this would apply.
Trade partners and investors are unaware of the status of many tariff agreements, which could result in billions in refunds for importers.
The MSCI All-World Index eased for the second consecutive day. STOXX 600 in Europe remained steady, but was still within sight of records.
The markets in Asia were boosted by traders returning from holidays from China and Japan. U.S. Stock Futures rose between 0.2-0.3%.
BEARISH ANALYSIS OF AI EFFECTS GETS ATTENTION Monday, the S&P500 fell 1.0%, wiping out the?past weeks gains. Fears over the displacement effect of AI on the software industry and other industries pushed Nasdaq Composite down by 1.1%. Citrini Research's bearish analysis of the possible risks to the global economic system has further weakened investor sentiment.
Tony Sycamore said that the report "got a lot airplay" at IG, a market analyst in Sydney. It does match up with a number of fears that are out there.
Investors have been rattled by the article that circulated over the weekend. It is just one of many recent "think pieces", which discuss the long-term effects of artificial intelligence on employment, global economic growth, and even human existence.
In a note he wrote about a similar article, Jim Reid of Deutsche Bank stated: "The argument relies heavily on narrative and emotions rather than hard proof." It doesn't necessarily mean that it is wrong in the end, but...the vibes-to substance ratio is undeniably large."
Many people are nervous about the sheer size of corporate borrowings and AI spending, especially because of the market weight of the companies that have been at the forefront of this boom. Despite recent volatility, S&P is still only 2.5% below its record highs.
Chris Turner, ING's strategist, said that none of these events has yet?deliver the knock-out punch to equity markets. The S&P 500, for example, has been bouncing around a small range of 6,775-7000 since the beginning of the year. The Nvidia announcement tomorrow evening could be the next big thing.
Nvidia is an AI chip maker that will report earnings on Wednesday after the bell. It accounts for about 8% of S&P 500.
FEDEX SUES FOR A REFUND AFTER U.S. TARIFF RULING After the Supreme Court's ruling on Monday, President Trump warned other countries not to back out of the recently negotiated deals with the U.S., saying he would impose higher duties under different trade laws. The new tariffs were based on Section 122 of the Trade Act of 1975, which caused further confusion among markets that are trying to understand U.S. protectionism. FedEx, a global?transportation firm, sued on Monday for a refund.
The dollar gained a little strength in currencies. It was most noticeable against the Japanese yen which fell after a report by
the Mainichi daily
On Tuesday, it was reported that Prime Minister Sanae Takaichi expressed her concerns about future?rate increases when she met Bank of Japan governor Kazuo Ueda in the last week.
The dollar last rose 0.75% to 155.79 Japanese Yen, and was steady against the Euro at $1.1791.
Brent crude rose 0.1% to $71.57 a barrel on the commodities market as tensions between the United States and China continued to simmer.
U.S. and Iran
Gold, the safest of all precious metals, fell 1.2% to $5,170 per ounce.
Bitcoin dropped 2.2% to $63,172. Ether was down last 2.1% to $1,823. (Editing by Kevin Liffey; Additional reporting by Gregor Stuart Hunter, Singapore)
(source: Reuters)