Latest News
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JSW expands its paint business with AkzoNobel India $1.6 billion deal
JSW Paints is buying the Indian division of Dutch paint maker AkzoNobel in a deal worth about 1.4 billion euro ($1.64 billion), excluding debt. The acquisition will expand its paints range amid increasing competition in India. The deal is made amid increasing challenges for Indian paint manufacturers, including volatile costs of raw materials, increased competition after Grasim Industries entered the market, and a weakening in urban spending. Data sourced from Dealogic, and seen by revealed that the transaction could be India's largest paint deal ever. After the announcement of the deal on Friday, shares of Akzo Nobel India rose more than 11%. However, they are still down around 1.4% for this year. Akzo Nobel (the maker of Dulux Paint) announced last year that it would review its South Asia operations in order to reduce costs and increase its core coatings business. The Dutch parent company, which is the fourth-largest in the world in terms of market capitalisation, behind PPG, Nippon Paint, and Sherwin-Williams will retain its Indian research and development centres and industrial coatings businesses. JSW Paints will purchase a 74.76% share in AkzoNobel India, a $23 billion company, for 89.86 Billion Rupees ($1.05 Billion) and make an open offer to the approximately 25% of public shareholders. Amit Purohit is senior vice president of Elara Capital. He says that while this acquisition presents JSW Paints with a significant opportunity to scale up, the near-term challenges in integrating could present an opportunity for existing players to improve their market position within the luxury segment. The deal is expected to close by the fourth quarter 2025, and Akzo Nobel will likely earn 900 million euro in net proceeds.
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Dollar struggles due to Fed concerns; Asia shares reach three-year high
Asia shares reached their highest level in over three years on Friday, as they followed a Wall Street rally. However, the U.S. Dollar struggled due to concerns about the Federal Reserve’s independence and the expectation of early rate cuts. The stock indexes around the world are expected to close the week in a positive manner, as worries over tensions in the Middle East along with uncertainty about tariffs and trade agreements have been put on hold for the time being. Early in the session MSCI's broadest Asia-Pacific share index outside Japan reached its highest level since Nov 2021, while the gauge for stocks around the world hit another record high. The DAX and EUROSTOXX50 futures both rose more than 0.5% while the FTSE Futures were barely changed. S&P 500 and Nasdaq Futures both gained 0.1%. The news that Washington and Beijing had reached an agreement on how to expedite the shipment of rare earths to the United States was one reason for the positive mood. U.S. Treasury secretary Scott Bessent said also on Thursday that after Washington reached an accord with the Group of Seven industrialized countries, he asked Republicans to remove Section 899 of their tax and spending bills. When that provision was adopted by the House, it made some investors nervous, particularly foreign investors. If that provision is removed, it will ease one of the fears of foreign investors, said Khoon Gh, ANZ's head of Asia Research. The positive developments that have been made in the market over the past few months are all contributing to this buoyant mood. Nikkei, the Japanese stock exchange, rose 1.4% to surpass the 40,000-mark for the first five-month period. Hong Kong stocks and mainland China's shares traded slightly lower. However, the CSI 300 was on course for a 2.6% weekly gain, the biggest since November 2024. FED CUTS COMING The Wall Street Journal reported on Friday that U.S. president Donald Trump was considering the possibility of announcing the replacement of Fed chair Jerome Powell by September or Oct. The dollar was further weakened as traders worried about the erosion of Fed's independence, and began to price in additional rate cuts for this year. The dollar was near its lowest level in three-and-a half years on Friday, and it was heading for a weekly loss of 1.4%. This would be the largest drop since over a month. The greenback has already fallen more than 10% for the year. If it continues to fall in the coming days, this will be the biggest half-year drop since the beginning of the free-floating currency era in the early 1970s. The euro, against a weaker US dollar, was at its highest level in more than three years. It stood at $1.1688. Last time, the pound bought $1.3725. "Trump's wish to'shadow,' the Fed by using a designated successor for Chair Jay Powell, isn't a great way to promote perceptions of autonomy and integrity in U.S. Policymaking, and, by extension that of reserve currency status of U.S. Dollar," said Thierry Witzman, global FX rates and FX strategist at Macquarie Group. The Fed's bets on a Fed cut have been strengthened by a series of U.S. data that were weaker than expected. Attention is now focused on the release of Friday's core PCE Price Index, the U.S. Central Bank's preferred inflation measure. The yields on U.S. Treasury bonds were unchanged in Asia, after a previous session that saw them fall. The two-year yield was at 3.7418% while the benchmark 10-year rate was at 4.2573%. Oil prices are set to decline by a week's end, as the ceasefire between Israel and Iran continues. This has eased concerns about Middle East supply. Brent crude futures rose 0.58% to $68.12 per barrel, while U.S. Crude rose 0.6% at $65.63 a barrel on Friday. However, both are headed for a drop of more than 10% in the coming week. Spot gold dropped 1% to $3.294.50 per ounce.
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The biggest weekly drop in oil prices since two years is expected as the war premium disappears
The oil price fell to its lowest weekly level since March 2023, Friday, due to the lack of supply disruption caused by the Iran-Israel conflict. Brent crude futures gained 35 cents or 0.52% to $68.08 a barge by 0429 GMT, while U.S. West Texas intermediate crude rose 40 cents or 0.61% to $65.64. Both contracts are now on track for a weekly decline of around 12%. The benchmarks have now returned to the level they were before Israel began the conflict on June 13 by firing missiles against Iranian military and nucleonic targets. Prices reached a five-month-high after the U.S. launched an attack on Iranian nuclear sites over the weekend. However, prices plummeted to their lowest level in more than a week when U.S. president Donald Trump announced a ceasefire between Iran and Israel. Traders and analysts say they do not see any material impact of the oil crisis at this time. Macquarie analysts said in a Thursday research note that, "absent the threat of significant disruption to supply, we still see oil as fundamentally undersupplied. Our 2025 balances indicate a surplus of approximately 2.1 million barrels a day (bpd)." Analysts expect WTI to be around $67 per barrel this year and about $60 next year. After factoring in the geopolitical premium, each forecast is raised by $2. Prices rose slightly in the second half of the week, as U.S. data revealed that crude oil and fuel stocks had fallen a week before. Demand and refining activities were also on the rise. The market is beginning to realize that crude oil stocks are extremely low, said Phil Flynn. Senior analyst at Price Futures Group. A Wall Street Journal article stating that Trump intended to select the next Federal Reserve Chief earlier than usual also supported prices. This fueled new bets that the U.S. would cut interest rates, which is what typically boosts demand for oil. Reporting by Siyi Liu and Nicole Jao, both in Singapore; editing by Tom Hogue and Christopher Cushing
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Sources say that Antofagasta's copper smelters have won a better than expected $0 TC/RC contract from China.
Four sources familiar with the matter said that Antofagasta, a Chilean miner, had agreed to a new record-low processing fee for copper concentrates. The fees will be $0 per ton of copper concentrate and $0 cents per pound. The low prices reflect the shortage of copper concentrate and are compared to the benchmarks for 2025, which were $21.25 per ton and 2.125cents per pound as agreed by the Chilean company with Chinese smelters. Two analysts and one smelter who spoke on the condition of anonymity said that it was "better than anticipated". Antofagasta didn't immediately respond to an outside office hour request for comment. Spot charges hover around $43 - meaning smelters will have to pay the copper miner for processing their concentrate. The contracts will still result in smelter losses, especially for China, which is the largest refiner and consumer of copper. These fees are the main source of income. Analysts, smelters, and traders all said that the new low would eventually force some smelters into cutting production. This year, the shortage of concentrates has increased as more smelter capacities are coming on line in China.
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The Financial Times reports that Britain's Centrica will take a 15% stake in the Sizewell C nuclear plant.
The Financial Times, citing sources familiar with the talks, reported that British Gas' owner Centrica was set to acquire a 15% stake at the Sizewell C nuclear plant in southeast England. The report stated that all sides were eager to make a final decision about the project's investment before the British Parliament recess, which begins on July 21. Could not confirm immediately the report. The government announced earlier this month that it would invest an additional 14.2 billion pounds (19.25 billion dollars) in the construction of the Sizewell C Nuclear Plant, bringing its total investment to 17.8 billion pounds. Britain wants to replace its aging nuclear fleet with new plants in order to improve its energy security and reach its climate goals, as well as create new jobs. The Financial Times reported that Canada's Brookfield Asset Management was still in discussions about investing in Sizewell C, and may be willing to take a bigger stake than Centrica. Sizewell C was initially being developed by France’s EDF and China’s General Nuclear Power Group, but the government purchased the Chinese firm’s stake in 2022 due to security concerns. EDF reported its financial results in February that the UK government held 83.8% of the company and EDF 16.2%. EDF's share is expected to decline following Britain's investment this month. Outside of regular business hours, Centrica Sizewell C or Brookfield Asset Management didn't immediately respond to requests for comments.
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Andy Home: The extended export ban on cobalt does not resolve the Congo's Cobalt Dilemma
The Democratic Republic of Congo extended its export ban for cobalt three months, as the world’s largest producer of battery metals tries to turn its power of supply into pricing power. The price response has been muted this time after a sharp rally in February when the original ban was announced. A certain extension was expected. It is clear that the physical supply chain is so backed up with inventory, Congo has not been able to deter buyers. Investors are not buying into a market turnaround imminent. Cobalt Holdings pulled out of its London Stock Exchange initial public offering earlier this month, which was to list an investment vehicle that would hold physical cobalt. Congo's dilemma with cobalt is to limit the supply of this metal, which is mined from copper and is an even greater revenue earner for this resource-rich nation. It would be better to concentrate on its own role within the supply chain. INVENTORY CUSHION The full impact of February's export ban has been delayed because it takes 90 days to ship Congo’s intermediate cobalt products to China for refinement. China's imports Congolese Cobalt were strong at more than 50,000 metric tonnes in both March & April. The Chinese supply chain remains bloated due to years of consecutive market surplus. Benchmark Mineral Intelligence, a consultancy, estimates that cobalt stocks outside Congo were equivalent to 8-10 month's global consumption during the second quarter of 2018. BMI estimates that cobalt hydroxide in China won't be physically depleted until the end of the year, despite the extended export controls imposed by the world’s largest producer. Oversupply is a result of the shift in Chinese electric vehicle manufacturers' away from cobalt-based chemistry. According to an analysis of the Cobalt Institute by Shanghai Metal Market, the country's cobalt consumption by the battery sector decreased last year. Since DRC only stopped exports, not production of intermediate cobalt is also accumulating in Congo. BY-PRODUCT BLUES Cobalt is a by-product, so Congo can't easily follow Indonesia, who has begun using mine quotas in order to limit the production of nickel, despite its inflated price. Mining restrictions on Congo’s cobalt producers will have a direct impact on the production of copper. Copper is in high demand at this time. London Metal Exchange Copper Price is at a high of close to $9900 per ton due to tight markets for raw materials and refined metal. Chinese operators, like CMOC Group in Congo, are motivated to continue digging up as much copper as possible. Cobalt is also free. Congo is the world’s largest cobalt producer and CMOC the largest producing company. No good options? The government is considering an export quota because it has limited options to force companies like CMOC and Glencore to reduce cobalt production without sacrificing copper revenues. However, enforcing export quotas instead of the blanket ban would be difficult to implement and wouldn't address the stockpiles that are accumulating. A policy change could lead to a flood of Congolese cobalt, which would have a significant impact on the price. The Congolese Government is preparing for a long-term standoff with the market of cobalt and isn't even sure what price it targets. It is possible that if it sets its sights too high, it could accelerate the loss of cobalt’s market share in the battery industry. INDONESIAN LESSON Congo has learned that controlling the supply of cobalt and controlling the market price are very different things. This is especially true when the opposite end of the supply chain in China is thousands of miles from the Congo. One of the best ways to counter this is by linking exports with commitments to increase downstream processing capacity. Indonesia has used this linkage successfully in the nickel and copper sector, where this year two new smelters will be launched as a result ever-tighter controls on exports of copper concentrat. Congo's dominant position in the supply chain will allow it to decide where it is located within the supply chain, even though it may struggle to control the price of cobalt. This will not alone solve the overproduction of copper, but would result in more revenue per pound of metal extracted from the rich mineral resources of the country. These are the opinions of the columnist, who is also an author. (Editing by Barbara Lewis).
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ASIA GOLD - India demand is muted, despite a price correction. However, buying in China and Singapore has picked up.
The demand for gold in India was subdued despite the price correction this week, as buyers waited for a larger drop. Meanwhile, in China and Singapore, the demand for gold increased. This week, Indian dealers offered a discount Discounts of up $18 per ounce on official domestic prices, including 6% import duties and 3% sales taxes, compared to last week's up to $27. Retail buyers have not changed their buying habits despite the price correction. It is a traditionally low-demand season, and buyers are looking for an even bigger price drop," said a jeweller in Kolkata. The domestic gold price was around 96.100 rupees for 10 grams of the metal on Friday, after reaching an all-time peak of 101.078 rupees in early this month. A Mumbai-based bullion seller with a private banking firm said that jewellers were not buying as much gold from banks, because retail customers were trading in old jewellery for brand new pieces, which satisfied a large part of demand. As of 0425 GMT spot gold was trading at $3,294.19, down from levels around $3,450 the previous week. Dealers in China, the world's largest gold consumer, charged premiums between $12 and $14 per ounce above the global benchmark spot prices. This is higher than the $10 premium last week. Peter Fung, the head of trading at Wing Fung Precious Metals, said that people are still interested to buy gold as a "safe haven". He added that a drop below $3,300 might attract more attention as investors appear ready to purchase on any weakness. In Hong Kong, gold In Singapore, the price was $2.00 higher than in Singapore. Gold traded at par price or a premium of $2.20. Brian Lan, managing Director at GoldSilver Central said: "We have seen more retail purchases... Wholesalers are also covering short-coverage because prices dropped quite a lot from last week." In Japan, bullion The premium was $0.5 flat. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy)
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Iron ore to gain weekly on declining inventories
The prices of Dalian Iron Ore Futures rose on Friday, and were set for a week-long gain due to falling inventories of iron ore and rebar. This was outweighing Taiwan's anti-dumping duties. The price of the most traded September iron ore contract at China's Dalian Commodity Exchange ended morning trading 1.85% higher, at 715.5 Yuan ($99.78). This week, the contract has gained 4.67%. As of 0414 GMT the benchmark July iron ore traded on Singapore Exchange was $11.6 per ton, up 1.01% this week. Analysts at ANZ said that falling iron ore inventories were a positive factor, protecting iron ore prices from a downward trend. SteelHome data shows that the total stockpiles in China of iron ore fell by 0.74% on a weekly basis to 133.6 millions tons at the end of June. Mysteel data shows that finished steel inventories held in China by traders continue to decline from June 20 through to 26. This is the seventh consecutive week of a decrease. Mysteel said that the rate of fall was slower than the previous week, and this could be due to an increase in production at mills domestically. The U.S. Dollar fell to a near 3-1/2-year low amid concerns about the erosion of central bank independence. This was sparked by the possibility of Jerome Powell being replaced as the U.S. Federal Reserve chair before his term is up. Dollar-denominated investments are cheaper for holders of currencies other than the greenback. Taiwan will impose anti-dumping tariffs as high as 20,15% on Chinese hot-rolled steel beginning July 3. Coking coal and coke, which are used in steelmaking, rose by 3.16% and 1.7% respectively. The benchmark steel prices on the Shanghai Futures Exchange have largely gained ground. Rebar, hot-rolled coil and wire rod all gained 0.78%. Stainless steel dropped 0.16%. ($1 = 7,1708 Chinese yuan). (Reporting and editing by Harikrishnan Nair; Reporting by Lucas Liew)
Wall Street stocks rise on Nvidia and trade hopes
Investors awaited more clarity about Washington's tariff plans as they awaited potential negotiations between the United States with its trading partners. The White House announced on Monday that President Donald Trump will be speaking with Chinese leader Xi Jinping this week. This comes after Trump had accused China of breaking a Geneva accord to reduce tariffs and trade barriers. Beijing has said that it will protect its interests, and that this accusation is unfounded. According to a draft of a letter sent to the negotiating partners, the Trump administration is asking countries to submit their best offers on trade negotiations before Wednesday. Officials are trying to speed up talks with multiple partners in order to meet a deadline they set themselves.
"The most important thing for investors is that the administration wasn't going to impose those much-larger-than-expected tariffs and just leave them on, which would have almost certainly led to a recession," said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
The fact that the U.S. has so many trading partners, including China, Japan, UK, EU, etc., makes investors more optimistic about the possibility of avoiding a recession. Investors are feeling more confident that we won't be in a recession."
In May, Trump's trade policies were softer, which allowed risky assets to recover. The benchmark S&P500 and the tech-heavy Nasdaq posted their largest monthly percentage gains since November 2023.
The preliminary data shows that the S&P 500 rose 34.59 points or 0.58% to 5,970.53 while the Nasdaq Composite increased 157.54 or 0.82% to 19,400.15. The Dow Jones Industrial Average gained 219.19 points or 0.52% to 42,524.67. Nvidia's gains boosted the information technology sector. Broadcom, a chipmaker, hit a new record high following the announcement that it had begun shipping its latest networking chips designed to speed up AI.
"Commentary about Trump and Xi speaking started yesterday, and chips will likely be a topic of discussion,"
Angelo Zino is a senior equity researcher at CFRA Research. "Given that Nivdia has been essentially locked out of China for the past few years, any discussion will tend to favor Nivdia or chips over anything else."
The U.S. Labor Department reported that job openings increased, but layoffs increased, indicating a slower labor market due to tariffs impacting the economy outlook.
Orders for Factory Products
The April drop was sharp, as the initial boost from purchasing ahead of tariffs faded. Census Bureau data from the Commerce Department showed a drop of 3.7% after a jump unrevised by 3.4% in March.
The release of the monthly jobs data will provide more information on how trade uncertainty affects the largest economy in the world.
The day will be filled with speeches by central bank officials including Lisa Cook, President of the Fed Board, Chicago Fed Austan Goolsbee, and Dallas President Lorie Logan. Kenvue shares fell, leading the declines in the benchmark S&P Index. The company, which produces consumer health products said at a Deutsche Bank Conference that retailers in China and the U.S. are destocking their products because of uncertainty about tariffs.
Dollar General's shares surged after the discount retailer exceeded its quarterly sales expectations. JPMorgan upgraded the image-sharing platform Pinterest to overweight after it was rated neutral.
Reddit shares fell on Tuesday after the social network platform was unavailable for more than 29,000 users, according to Downdetector.com. Reporting by Kanchana Chkravarty, Sukriti Gupta and Saeed Azhar from Bengaluru; editing by Devika Syamnath & Aurora Ellis
(source: Reuters)