Latest News
-
FT reports that KKR is looking to sell a data center cooling company for a multi-billion dollar price.
The Financial Times reported that U.S. 'private equity' firm KKR was working with 'advisers' on a sale of data -center company CoolIT Systems at a price which could exceed $3 billion. The report stated that a potential sale of CoolIT was still in its preliminary stages and that there were no guarantees that a transaction would occur. It also noted that several buyers had been identified as potential bidders. KKR and CoolIT Systems?did not immediately respond?to requests for comments outside of regular business hours. Could not verify the report immediately. The power required to run high-powered AI systems and cloud servers that crunch data is enormous. This generates a lot of heat, which traditional air cooling systems can't cool properly. Global demand for data centers is causing a surge of deals in the industry, as companies rush to increase capacity and meet the surge in cooling and power needs. According to the website, CoolIT is a specialist in developing, manufacturing and designing 'liquid cooling technologies' for AI and computing systems. KKR acquired it in 2023.
-
Japan legislator: Tokyo has told the national oil reserve to prepare for release in response to Iran crisis
On Sunday, a senior Japanese member of parliament said that the government had 'instructed' a storage facility for the national oil reserves to prepare for a potential release of crude as the Iran Crisis?has reduced supply from the Middle East. Around 95% of Japan's crude oil is sourced from the Middle East, with approximately 70% of that being shipped through Strait of Hormuz. This has effectively been closed since U.S., Israeli and Iranian attacks on Iran. Akira Nagatsuma is a member of Centrist Reform Alliance, an opposition party. He told Akira Nagatsuma that a?official with the Japan Organization for Metals and Energy Security at the Shibushi National Oil?Storage Base said they had received the directive on Friday from the Agency for Natural Resources and Energy. Nagatsuma stated that details such as the timing for the release are still unclear. It wasn't immediately clear if other storage bases had received the same instructions. A spokesman for ANRE (under the Ministry of Economy Trade and Industry) declined to comment. Shibushi was not available to comment immediately, and JOGMEC couldn't be reached after office hours. Shibushi, in southern Japan, is where Japan's strategic oil reserves are located. Japan has emergency oil reserves that are equivalent to 254 days of domestic consumption. These include government stockpiles and private sector inventories as well as joint reserves with oil producing countries. Tokyo's last oil withdrawal from its reserves was in 2022, as part of a coordinated release led by the International Energy Agency (IEA), following?Russian invasion of Ukraine. Ryosei Acazawa, the Industry Minister, said in an early statement last week that the Ministry would not be releasing oil reserves. However, it would closely monitor the crude oil supply, working with the IEA. Kyodo News Agency reported on Friday that the Japanese government may use a part of its oil reserves to combat the Iran crisis, which has disrupted energy supplies worldwide. This could be done in coordination with other nations or on its own.
-
Saudi index continues to rise as Iran approves a pause in Gulf attacks
The majority of 'Gulf' stock markets were up in the early trade on Sunday. The Saudi index was up for a fifth consecutive session after the?Iranian?temporary governing council agreed to stop attacks on neighboring nations, unless they originated on their own territory. Saudi Arabia told Tehran it supports a diplomatic solution to Iran's conflict with the U.S. but that continued attacks against the kingdom and its energy sector may push Riyadh into a similar response, according to sources. Saudi Arabia's benchmark.TASI index rose 2%. All of its constituents posted?gains led by energy and material stocks. Brent oil prices surged on Friday, with Brent trading above $90 per barrel as a result of the continuing disruptions in global oil supply due to the U.S./Israeli war against Iran. Saudi Aramco grew by 4%, while Yanbu National Petrochemical jumped by 10%. The Qatari benchmark index.QSI rose by 0.1%. Mesaieed Petrochemical Holding gained 5.3%, and Ooredoo?added 2.1%. The.MSX30 index in Muscat rose?1.4%, while the.BAX index in Bahrain grew?0.2%. Kuwait's index,.BKP, fell 0.5% with the majority of stocks falling. Kuwait Petroleum Corporation has cut oil production and declared force majeure on Saturday, as the U.S. Iran war continues to block shipments from the Middle East. (Reporting and editing by Bernadette B. Baum, Helen Popper, and Md. Hussain from Bengaluru)
-
Trump says he doesn't need Britain's help to win the Iran war
Donald Trump stated on Saturday that Britain was "seriously considering" sending two aircraft carriers to the Middle East. He added, however, that the United States would not be sending any. The United States does not need these aircraft carriers to win the war against Iran in the latest conflict between military allies. Trump has repeatedly criticized British Prime Minister Keir starmer, suggesting that he "ruined" the historically close relationship between the two countries after London refused to allow the U.S. The initial use of British base to attack Iran was criticised by Trump. Trump wrote on?Truth Social that he would "remember" the British lack of support during the conflict?with Iran. Trump said, "The United Kingdom is seriously considering sending two aircraft carriers into the Middle East, perhaps the Greatest Ally of all." We don't have to worry about them anymore, but we'll remember. We don't want people who join Wars after they've already won! The British Ministry of Defence announced on Saturday that it was preparing Prince of Wales aircraft carrier for a possible deployment. A British official confirmed that no decision had been made about the deployment of the aircraft carrier in the Middle East. Starmer has defended Starmer's decision to not allow U.S. forces to use British bases in order support initial strikes on Iran, saying he needed to be satisfied that any military action was legal and well planned. Starmer has defended his decision not to allow?U.S. forces to use British base to support initial attacks on Iran. He later granted U.S. troops permission to use British base for defensive strikes against what he called?Iranian?missiles in storage or?launchers. Starmer criticised Trump's desire to purchase Greenland earlier this year and called his remarks that European troops avoided the frontline of combat in Afghanistan "truly appalling."
-
Security sources claim that Katyusha missiles are being fired at the US Embassy in Baghdad.
Security sources and witnesses reported that sirens were heard as Katyusha missiles struck the U.S. Embassy in Baghdad. It was not immediately clear if the rockets had caused any casualties or damage. This was the first attack on the embassy in over two years. The last recorded attack?was late 2023 when seven mortar rounds fell in the compound amid a wave attacks by Iran-aligned militas against U.S. assets in Iraq and Syria because Washington supported Israel's war in Gaza against Hamas. Around 9 pm, explosions were heard in the central Baghdad area near the embassy. Witnesses said that sirens sounded at 1800 GMT, warning people to seek cover. According to a senior Iraqi official, the C-RAM defense system was responsible for bringing down one of the missiles. No rockets landed in the embassy. The official claimed that there were no American injuries. The attack shows that Iran-aligned Iraqi militas, who had vowed to retaliate against the death of Iran's supreme leader -- have now widened their target beyond U.S. Military bases in Iraqi Kurdistan as well as U.S. Energy interests. They have also targeted the U.S. embassy. Iraqi Prime Minister Mohammed Shia al-Sudani has ordered his security forces to find those responsible for the projectiles. He called them "rogue groups" that operate outside of the law and do not represent the Iraqi public, according to a press release from his office. Reporting by Ahmed Rasheed. Editing by Timothy Heritage & Diane Craft.
-
Kuwait reduces oil production to prevent tensions with Iran, KPC reports
Kuwait Petroleum Corporation announced on Saturday that the country has reduced crude oil production as a precautionary measure due to the ongoing attacks from 'Iran' against the country, and the closure of the Strait of Hormuz. These cuts will cause another disruption to the global energy market due to the U.S./Israeli war against?Iran. Oil and gas storage facilities in the Middle East Gulf are rapidly filling up. The Iraqi oil fields have already reduced production, and Qatar has declared force majeure for its massive volumes of gas exports. Next is likely the United Arab Emirates. Kuwait's reducing its output was in response to "Iranian threats against safe passage of vessels through the Strait of Hormuz", and as part of "risk management and continuity of business strategy," KPC stated in a press release. The national oil company didn't say how much it reduced its output. Kuwait produced approximately 2.6 million barrels of crude oil per day in February. KPC stated that the?adjustment is strictly precautionary, and will be reviewed as conditions change. It remains ready to resume production once conditions permit. The U.S. and Israeli 'war on Iran' has spilled a little beyond Iran's borders. Tehran responded by attacking Israel and Gulf Arab states - hosting U.S. military bases. And - Israel launched new attacks - in Lebanon, after Iran-aligned Hezbollah fired over the border.
-
Four people are killed and more than a dozen injured by tornadoes in rural Michigan
Local authorities reported that tornadoes and storms in southern Michigan killed or injured at least 'four' people on Friday. Multiple homes were destroyed and a large number of residents lost power. Videos on social media, claiming to come from Three Rivers and Union City, showed massive whirlwinds that tore roofs off of buildings and lifted debris into the sky. Local media footage showed cars and buildings smashed, as well as poles, trees, and road signs that had been blown. The sheriff's department of Branch County reported three fatalities and 12 injuries in the area where Union City is situated. According to local authorities, one person died and several others were injured in?Cass County. According to a Cass County website, "multiple large structures including homes and pole barns sustained damage ranging from structural impacts to total destruction." Local officials reported that hundreds of people were affected by power outages. We have many utility poles that are down, transformers that are damaged, and long power lines lying on the ground. According to a post on Union City's official Facebook page, the?northside of Union Lake sustained most of the damage. Two miles of power lines were brought down there alone. Michigan Governor Gretchen Whitmer announced that she had activated a State Emergency Operations Center? to monitor the situation. The state is prepared to meet any requests for resources that may arise. Yet, we haven't received any. Clayton Cummins is a spokesperson from Michigan emergency services and the police. He said that it sounds 'like' local response has been able to deal with 'what's a been a very destructive afternoon and evening in Southwest Michigan. (Reporting and editing by Donna Bryson, Tom Hogue, and Maria Tsvetkova)
-
Pakistani convicts of plotting to murder Trump in response to death of Iran commander
The Department of Justice reported that a Pakistani man had been convicted of plotting to kill President Donald Trump, and other prominent U.S. officials two years ago on the orders of Iran. Asif Merchant has been accused of 'trying to recruit people in the U.S. for a plan that targets Trump and others as retaliation against Washington's killing in 2020 of Iranian military chief Qassem Solimani, during Trump's first term. Federal prosecutors have said that the plot included targets such as then-President Joe Biden, and Nikki Haley who was running against Trump in 2016 for the Republican Presidential nomination. The DOJ released a statement that said Merchant had been convicted by Iranian authorities of "murdering for hire" and of attempting to commit an act of terror transcending national borders. Brooklyn, a borough in New York City, was the site of a trial that began last week. Days before, Trump had ordered an attack on Iran, which Israel carried out, and has now escalated into the biggest war in the region in years. Merchant testified that he joined the plot with Iran’s elite Islamic Revolutionary Guards Corps, but he only did it to protect his family. Merchant claimed that he had never been ordered to kill anyone in particular, but his Iranian handler mentioned three individuals during conversations in Tehran. The law enforcement agency foiled the plot 'before an attack took place. Merchant's contact in April 2024 who was supposed to assist with the plot, reported Merchant's activities and became an informant. Merchant was arrested in 2024 and pleaded guilty. The Revolutionary guards?play a central role in Iran with their combination of economic and military power, and an intelligence system. Tehran has denied allegations that it 'targeted Trump or other U.S. official. According to Iran's U.N. Ambassador, U.S. and Israeli strikes since Saturday have killed and injured at least 1,332 Iranians. Many Iranian leaders, including the Supreme Leader Ayatollah Ayatollah Khamenei have been killed. The U.S. Military has said that six of their service members have been killed in an attack on a Kuwaiti facility, while Israeli statistics show that at least ten civilians were killed throughout Israel. (Reporting and editing by William Mallard in Washington)
QUOTES - Asia stock crash deepens, as markets prepare for energy shock
Investors sold off their chipmaker positions on Wednesday due to fears that the Middle East war will cause an oil shock, which would increase inflation and delay interest rate cuts.
The broadest MSCI index of Asia-Pacific stocks outside Japan dropped 4.2%. Seoul's steep falls triggered a circuit breaker as the KOSPI fell more than 11%. The two-day loss was 17%. Japan's Nikkei dropped 4.3%, while Taiwan's benchmark fell 3.6%.
COMMENTS:
TARECK HORCHANI is the head of prime brokerage at Maybank Securities in Singapore.
We are seeing foreign outflows driving the move, especially in large-cap tech stocks that have led the rally year-to date. Korea was one of the world's strongest markets, with a peak of nearly 50%, thanks to the AI and memory cycles. Positioning was therefore crowded. This looks more like an unwinding of positions and a risk reduction than a fundamental decline in earnings. Global funds tend to quickly de-risk the index heavyweights when oil prices spike and FX volatility increases, especially in oil-importing countries like Korea and Japan. This is where the selling has concentrated: Samsung SK Hynix, and other large-cap stocks.
"There's also a macro-overlay." Oil prices are rising, raising concerns about inflation. This could delay Fed easing. High-beta technology and cyclical stocks will be hit disproportionately. Yes, there is some profit-taking going on, but this is more of a global risk off move than an investor permanently moving into cash. "Importantly domestic institutional accounts are selectively adding, and we're seeing rotation towards defensives and defense-related names, rather than indiscriminately selling across all sectors."
CHRISTOPHER FORBES, HEAD, ASIA AND THE MIDDLE EST, CMC MARS:
The Kospi's 15% collapse in two days is a textbook example of momentum unwinding, not a structural break ..... When U.S. and Israeli operations virtually closed the Strait of Hormuz there were no diversified offers to absorb the selling. The order book disappeared. In two sessions, foreign investors pulled in over US$7 Billion.
The record short book of hedge funds is the biggest catalyst for an upside. According to Goldman's Prime Brokerage, shorts outnumbered longs by two-to one in early February. If tensions are eased quickly, then a violent squeeze may follow. Samsung and SK Hynix are healthy businesses."
RUPAL AGARWAL is the Asia Quant Strategist at BERNSTEIN.
The impact on Asian markets was greater because Asian economies were more vulnerable to the Strait of Hormuz closing and because momentum trends in Asia, such as Korea, were extremely sharp during the lead-up to war.
For markets to find a bottom, we will need to see signs of de-escalation or status quo on the front lines. This could then shift the focus to fundamentals. It's hard to predict geopolitical events, but the extreme positioning on the way up would make it take some time before things normalized.
RADHIKA RAO SENIOR ECONOMIST DBS BANK SINGAPORE: Amongst ASEAN-6 nations, the net oil balance is most negative in Thailand, Malaysia and Vietnam (as % GDP), and the price pressures are most material in Thailand and Philippines. Thailand and Singapore, despite being less strategically important, are the top LNG consumers in the region. However, they have a diverse mix of suppliers, particularly in Singapore. "Much the region is likely to be watching developments in the Middle East closely. THB, MYR and SGD have all fallen more than 1% in the past week, and regional currencies could underperform as long as the U.S. Dollar remains strong. The regional central banks will not act on their policy preemptively, but rather prefer to remain on hold while keeping a close eye on the domestic currency and bond yields."
SHINGO IDE IS THE CHIEF EQUITY STRATEGIST AT NLI RESEARCH INSITUTE, TOKYO
The market has been inflated by narratives such as Takaichi's policies and expectations of double-digit profits next fiscal year. Both of these pillars, however, are "wobbling". It's not the time to talk about investing based on 'Takaichi Policies'. You will run out of cash if you focus on measures to combat higher oil prices and crude prices.
"And corporate profits, too. If high oil prices continue, profits will be squeezed. The premises on which we have been relying no longer hold. In this light, I would not call the 54,000 yen "oversold".
"I don?t think it just keeps falling forever. It will find a level that it stabilizes at--but we can't tell you if this is 54,000, 52,00, 50,000 or some other level on Korea's KOSPI.
Investors in a wide range of industries were looking for an opportunity to profit. There was no clear trigger to a major downturn and this backdrop continued. "Suddenly, the profit-taking has exploded." Reporting by Rae Wee in Singapore, Tom Westbrook in Tokyo, Roushni Nai in Bengaluru, and Kate Mayberry in Bengaluru.
(source: Reuters)