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Bloomberg News: US exempts Rosneft Germany indefinitely from Russia sanctions
Bloomberg News reported on Wednesday that the U.S. Government will exempt Rosneft's German unit from sanctions indefinitely. A person familiar with this matter was quoted as saying so. Could not verify immediately the report. The German economy ministry didn't immediately respond to an 'ask for comment'. Germany placed local units of Rosneft, a Russian oil company, under trusteeship by 2022 following Moscow's invasion of Ukraine. This broke Berlin's decades long energy relations with Russia. Assets include a'stake' in the PCK Schwedt refinery, which is a major supplier of fuel for the capital area. Bloomberg News reported that the U.S. Treasury’s Office of Foreign Assets Control was expected to make a decision by Friday. However, this timing may change. The extension of the current U.S. sanction waiver would reduce the risk of disruptions in German?refining?operations, at a time the Middle East conflict is escalating and causing global energy markets to be uneasy. Reports in 'October' stated that Washington had written assurances to the effect that Rosneft-owned?Germany operations would be exempted from new U.S. sanctions on energy. Reporting by Anna Peverieri, Barcelona. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
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Vopak delays investments in South African LNG Project to 2028
A senior executive at Vopak, the Dutch tank storage and terminal operator, said that it had pushed back a decision on a final investment (FID) for South Africa's 1st liquefied gas terminal until 2028. A court order in September halted Eskom's plans to build a gas-powered 3,000 megawatt plant at Richards Bay. This slowed down the progress. Oliver Naidu told a conference on energy that he was 'waiting to see how Eskom would proceed and just extended our pre FEED study. He said that the company expects to be ready to make a final decision by the first quarter 2028. Estimated cost of the two-phase project: $1 billion. VOPAK IN CONSORTIUM PICKED TO BUILD, RUN THE PROJECT Vopak has been selected as a member of the consortium formed by Transnet Pipelines in 2024 to build and operate?the Zululand energy terminal at Richards Bay Port for a period of 25 years. Naidu stated that they expect to sign preliminary agreements in the next few months with Eskom and possibly U.S. oil major Exxon Mobil for LNG use and distribution. He said that Exxon was one of his strongest potential customers. ExxonMobil is a global supplier of LNG. They have identified South Africa as their top priority market. The company did not respond immediately to a comment request. Transnet National Ports Authority has previously stated that the Zululand Energy Terminal, located along 'South Africa's East Coast, would initially import 2 million mtpa of LNG before ramping it up to 5 mtpa by 2027. Reporting by Wendell Roelf, Editing by Sfundo parakozov and Bernadettebaum
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During talks, the foreign minister of Hungary hopes that Russia will release two ethnic Hungarian prisoner of war
Peter Szijjarto, Hungary's foreign minister, said that he hopes Russia will free two ethnic Hungarian war prisoners during his talks with Vladimir Putin in Moscow. Szijjarto traveled to Moscow one day after Hungary's prime minister Viktor Orban had a telephone call with Putin. They discussed the Middle East situation, Ukraine and whether crude oil and natural gases were available for Hungary. Orban's Government has made Russia's War on Ukraine a major topic in his campaign for the 12th April parliamentary elections, increasing tensions between Budapest & Kyiv. Szijjarto? said in a Facebook broadcast from Moscow that two ethnic Hungarian prisoner of war? have recently asked Hungary for assistance. Szijjarto stated, "I hope after our 'talks that more people will fly home on the plane as opposed to those who came this way." Ukraine is home for around 150,000 ethnic Hungarians. Most of them live in Transcarpathia. Orban's government has been at odds with Kyiv over the language rights of ethnic Hungarians for many years. Orban's government also accused Kyiv of conscripting ethnic Hungarians who Budapest claimed should not have been called into service. Last Friday, the Foreign Minister summoned Kyiv’s?ambassador in Budapest to protest against the conscription. Orban, the Hungarian prime minister,'maintained a warm relationship with Moscow after the beginning of the conflict in Ukraine and is unwilling to give up its purchases from Russia of oil and gas, which led to tensions between the EU and Hungary. Hungary announced last month that it would 'block' the next EU package of sanctions against Russia, as well as a 90-billion euro (105-billion dollar) EU loan to Ukraine for its defense against Russia until the Druzhba Pipeline resumes shipments.
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Official from the OECD says that inflation is the biggest threat to debt markets, which are facing a 'big test'.
A senior OECD official said that inflation is the biggest?risk to global bond markets. This comes as energy prices have risen following?the U.S. and Israeli air war against Iran. Carmine Di Noia, OECD director of financial affairs and enterprise affairs, said in an interview before the release of Wednesday's annual debt reports by the Paris-based organization that "Now we 'are having another huge stress test." Investors are worried about inflation and higher energy costs, as oil prices have increased by 16% in the last week. Di Noia said that if this happens, the higher bond yields will "put even more pressure" on the debt markets, given financing needs remain high and borrowing costs are still high. SHORTER MATURITIES RAISES RISK OF REFINANCING The OECD anticipates that governments and businesses will borrow $29 trillion in this year. This is up from $25 trillion last year. Di Noia stated that they have reduced the maturity of the new debts they sell, and higher yields may reinforce this dynamic. He noted that the conflict had stoked unrest at a moment when investors on bond markets were changing. The OECD has warned that price-sensitive investors, such as hedge funds, are taking a 'larger role' in the markets. According to the OECD, the share of corporate bonds maturing within 10 years or less has reached its lowest level since 2009 and is expected to be the lowest ever in 2025. This increases the risk of refinancing. At a record $13.5 billion, it reached 80% for OECD nations in 2025. As more debt is due earlier and yields rise, debt costs will increase faster. The emerging markets are especially vulnerable, as over a third (35%) of their debt is due to mature in the next 3 years. The rate increases to combat inflation after the pandemic pushed up government interest rates and raised yields on bonds. The OECD stated that by 2024, these had already surpassed defence spending. AI DEBT COULD transform the corporate bond market The OECD stated that the soaring borrowing by AI firms as they race to expand their data centres and processor requirements may make corporate bonds more "equity like". The report stated that nine major hyperscalers will need to finance $4.1 trillion in capital expenditures until 2030. If the nine companies were to fund half of this on the bond market, they would be responsible for 15 percent of global corporate issuance. Amazon, Alphabet, Google, Meta, and Microsoft are among them. Di Noia stated that the convergence of the two markets could make it more difficult for investors to hedge their risk and diversify their investments, as the nine make up 12%?of the global stock market capitalisation. AI infrastructure could also require an additional investment of $5 trillion by 2030. This is likely to increase borrowing in sectors such as real estate, energy, and IT hardware. The OECD has warned that this raises questions about the market's ability to absorb a new supply in the same magnitude. This is especially true given the fact that sovereign borrowing continues to grow and the changing nature of investors. (Reporting and editing by Dhara Raasinghe, Emelia Sithole Matarise and Yoruk Bahceli)
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MORNING BID AMERICAS-Seoul-sapping selloff
By Mike Dolan March 4th - Mike Dolan, Editor at Large, Finance and Markets, explains what matters today in U.S. markets. The Middle East crisis has shocked Asia's stock market on Wednesday. South Korea's Kospi plunged 12%, its worst ever day. Japan's Nikkei index and Taiwan's benchmark both lost about 4%. The Korean won has hit its weakest level in 17 years. Seoul and other Asian centres were forced to suspend their trading due to the scale of the selling. Below, I'll go into more detail. Check out my column about why gold has lost some of its "safe-haven" shine this week. Listen to the Morning Bid podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. SEOUL-SAPPING SELLOFF The conflict has caused a rise in prices and uncertainty about the supply of energy products to Asia's major manufacturing economies. There were some signs that the markets are easing up as investors wait for further developments. The U.S. Brent crude oil price and the global Brent crude were both up another 3%, but remained below Tuesday's highs of 8 months and 19 months. Europe's stock prices popped up 0.5%, in what appeared to be a pause following two days of heavy trading. U.S. futures for stocks were also marginally higher. The dollar's increase has largely flattened, despite the fact that government bond yields continue to rise. The dollar's rise was mostly flattened out, even though government bond yields continued to climb. The President announced plans to provide insurance for shipping and possibly naval support to help energy supply companies exit an effectively shut Gulf. These moves may have a marginal impact, but it could take time. The world markets are now thinking in terms of weeks, not days, when they ask about the end of this energy blockade. Conflict in Iran and the surrounding region cannot be predicted. After the death of Ayatollah Khamenei, many are now focused on who will be the next Supreme Leader. A New York Times article that claimed Tehran officials made a secret approach to Washington on the weekend to find a solution to the conflict gave some investors hope. Investors who believe that the Gulf tensions will ease soon are wrong. There is plenty to worry about. One of the biggest concerns is about private credit funds like Blackstone and BlackRock. The ADP private sector jobs survey and ISM service sector survey are both scheduled to be released today. It is possible to 'pay more attention' to the former, given that Friday will bring out a?big U.S. Payrolls Report. Chart of the Day The European gas price has risen this week due to the disruption of energy supplies in the Middle East, and Qatar specifically. It is now at its highest level in three years - nearly 20% more than it was this time last. Gas storage levels in Europe are well below the five-year average as the Iran conflict unfolds. The EU told its member states on Wednesday that it did not expect any immediate impact to the supply of natural gas. Watch today's events * U.S., February ADP employment figures (8.15 AM EST), S&P Global/ISM Services?PMIs (9.45-10.30 AM EST). * U.S. Federal Reserve issues latest Beige Book * U.S.? corporate earnings: Broadcom Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and to integrity, independence, freedom from bias, and impartiality.
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South African financiers create $122 million Water Conservation Bond
South African financiers have prepared a bond of 2 billion rands ($122 million) to fund water conservation initiatives dedicated to the restoration of?strategic catchments. The five-year bond, backed by Rand Merchant Bank and Development Bank of Southern Africa (DBSA), aims to finance eco restoration. This includes removing invasive plants from catchment areas and rehabilitating them to improve water security. The outcome-based facility will link returns with measurable environmental improvements. "The facility...will support the conservation?of?water catchments to ensure that these areas are healthy," Mookho Mathaba said, climate finance specialist with DBSA. This initiative is a reflection of the growing involvement of the private sector as South Africa struggles with its constrained finances and water challenges. According to a DBSA report, investments in the 'water sector' will need to total 256 billion rand per year through 2050. This leaves a funding gap of 91 billion rand every year. This?deal focuses on nature-based solutions, while traditional bonds focus on infrastructure such as dams and pipes. RMB confirmed that it was involved, but said details were confidential. If the bond is successful, it will be in line with wider?efforts?to tap debt markets?for sustainable infrastructure financing,?helping?to address South Africa's increasing water shortages. $1 = 16.3292 Rand (Reporting and editing by Sfundo parakozov and Alexander Winning).
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Wood Group fined $17 Million by Britain for incorrect results
The Financial Conduct Authority of Britain fined Wood Group nearly 17?million pounds ($17.39 million) on Wednesday for publishing incorrect information in its financial reports for 2022 and 2023, as well as the first half 2024. Financial watchdog stated that following the poor performance?of certain projects, the company’s accounting judgements were inappropriately affected by a desire to maintain previous financial results. Wood Group's issues became apparent in November 2024. By April 2025, the share price plummeted by 85%. The following month, shares were suspended. Later in the year, Wood Group agreed to be taken over by Dubai-based Sidara for $292 million. Sidara, after a regulatory investigation in August 2025 had lowered its bid for Wood Group and made the 'completion of the deal conditional on the British company publishing their delayed 2024 results. Wood 'Group has met all the regulatory requirements for the transaction earlier this week and expects the transaction to be closed on March 10.
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TSX futures are rising as Middle East crises boost oil and gold prices
Futures tracking Canada’s main stock index rose Wednesday as rising tensions in the Middle East drove up oil prices for a fourth consecutive day while demand for safe-haven gold boosted the price of the futures. As of 5:20 a.m., March futures for the?S&P/TSX 'composite index? were up 0.36%. ET. As the conflict enters its fifth day, it has shocked investors around the world. Goldman Sachs CEO David Solomon stated that it would take two weeks for the markets to digest the effects of the war in Iran. Oil prices rose?but a little slower than previous sessions, as traders considered the possibility of a Middle East supply disruption. On Tuesday, President Donald Trump stated that the U.S. Navy would be able to begin escorting oil tankers through Strait of Hormuz. Mark Carney, the Canadian Prime Minister, said on Wednesday that the current conflict is a "failure of the international system" and that the U.S. did not consult its allies prior to striking Iran. Brent crude futures rose 3%, while U.S. West Texas intermediate crude crude gained 2.8%. Investors rushed to buy the safe-haven gold, which gained over 2%. Silver prices rose by 5.4%, and copper prices also firmed. Toronto's benchmark stock index fell 2.2% on February 2, logging its biggest drop in three weeks. Fears of inflation due to the prolonged Middle East crisis led to a "broad-based" decline, with miners leading the way. On Tuesday, a Brazilian court halted a transfer of mineral rights for a gold asset?sale?from Equinox Gold?to Chinese metal -miner CMOC. CLICK CODES TO GET CANADIAN MARKETS NEWS TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian Markets Directory (Reporting and Editing by Shreya Biwas; Utkarsh T. Hathi)
Asian petchem makers face naphtha disruption as Iran conflict widens
The Middle East supply chain is buckling under the U.S. - Iran conflict. Tanker traffic in the Strait of Hormuz has been halted and buyers are bracing themselves for delays and increased costs.
Two sources familiar with the situation said that Chandra Asri, an Indonesian company, declared force majeure for all contracts on Tuesday, while Maruzen Petrochemical, a Japanese company, and Mitsui Chemical of Japan cancelled the second half April import tenders.
Both Japanese companies declined comment.
Asia imports Middle East naphtha in the amount of 4 million metric tonnes (36 million barrels). Naphtha, a raw material used to make petrochemicals for consumer products such as paints and plastics, is a source of Middle East naphtha.
"Delays due to rerouting and increased security protocols are impacting voyages within and outside of the immediate conflict zones, complicating trade and further tightening logistical flows. This adds uncertainty to cargo scheduling and delivery deadlines," said Vasudev Baligopal, global director of petrochemicals trading at brokerage Marex.
Some assets in Asia-Pacific are taking a more conservative stance towards future production. If disruptions continue, this precautionary approach may have an impact on operating rates.
NAPHTHA MARGIN IS NOW AT A?4 YEAR HIGH
The benchmark?naphtha refinery margin was impacted by the disruption
The South Korean industry ministry stated on Tuesday that its petrochemical manufacturers are worried about supply disruptions if the Iran crisis continues. It is Asia's largest importer of Middle East Naphtha and 54% of the country's supply comes via the Strait of Hormuz. Lotte Chemicals, GS Caltex and LG Chem are among the buyers.
South Korean industry sources said that these?firms would need to decide within the next two week whether they will source alternative regions, such as the U.S., or South Asia or reduce output.
Another source said that Korean refineries, which supply naphtha for petrochemical companies, maintain crude oil stock to sustain?operations? for at least a month.
Sources declined to name themselves as they weren't authorised to talk to the media.
An executive from a global trading firm said that getting U.S. products will take an extra three weeks for shipping, which is very expensive.
ALTERNATIVE SUPPLIES
An Indian exporter stated that India would need to ensure sufficient crude supply to continue exporting naphtha.
The South Asian nation's thin reserves make it a major oil importer that is most susceptible to crude supply shocks, if the Middle East war leads to a prolonged disruption of shipments.
Two Singapore-based traders have said that some Asian buyers could turn to Russian naphtha if the situation becomes dire.
(source: Reuters)