Latest News
-
Infestations in two states of Malaysia have affected palm oil production
A minister revealed that palm oil plantations have been infested in two states of Malaysia, the second largest producer in the world. The country is recovering from flooding which has disrupted its production. Plantation and Commodities minister Johari Abdul-Ghani stated in a Wednesday parliamentary response, which was then published on Thursday, that leaf-eating pests have been reported to be attacking in Peninsular Malaysia. Johor, Perak and Perak account for 1.01 million of the 5.61 million acres of oil palm plantations. In recent months, floods have affected the country's output. The result is that it has hit a six-month low. Perak is experiencing an increase in oil palm crop threats. He said that to address the situation, a budget of 5 million Ringgit ($1.13million) was requested in order to intensify control efforts against this increasingly widespread outbreak. He added that the Malaysian Palm Oil Board is taking steps to control the infestation, including spraying biopesticides and planting beneficial plants. Reporting by Ashley Tang, Editing by Sonia Cheema. $1 = 4.4220 ringgit
-
Trump tariffs on Mexican fuel oil will send it to Asia and Europe in March
Analysts and trade sources said that Mexican fuel oil cargoes will be heading to Asia and Europe in this month due to higher prices. Traders also plan on diversifying after U.S. president Donald Trump imposed import tariffs this week. Pemex, the state energy company in Mexico, usually sells its heavy crude oil and high-sulfur fuel oil to U.S. Gulf Coast refining plants for processing. However, a 25 percent tariff imposed by Washington on Mexican products on Tuesday has caused cargoes to be diverted. Data from shipping analysts Kpler and Vortexa and trade sources show that Mexico's HSFO exports to Asia and Europe will increase in March. This is the first time in at least five months. Kpler data from this week showed that two Mexican fuel oil cargoes, totaling 145,000 metric tonnes, or 920.750 barrels, will land in Singapore by late March. Meanwhile, Europe is expected to receive four shipments totaling 188,000 tons this month. The sources in the trade said that strong HSFO prices have drawn Mexican supplies. The spot prices of Singapore 380cst HSFO, the benchmark for the region, have risen in recent sessions. Meanwhile, refiners' profit margins on producing this fuel reached a rare premium last month. "Europe is the more natural outlet for Mexican oil." A fuel oil trader in Asia said that with the current strength of Singapore, perhaps more (oil can) flow here. HSFO is blended with marine fuel in bunker hubs like Singapore and Rotterdam. Pemex and its trading arm did not immediately respond to a comment request. "We could see fuel oil cargoes diverted to the U.S. East Coast and possibly increase European arrivals this month from Mexico," said Vortexa Analyst Xavier Tang. He added that the tariffs would likely displace a significant portion of U.S. HSFO imported from Mexico. Kpler data shows that the next Mexican fuel oil cargo to be shipped into the U.S. will be transported by Constellation, a tanker of Panamax size, and is expected to discharge in Houston on Friday. Traders said that the volume of goods diverted from Asia to Europe will depend on Washington's tariff adjustments or suspensions, and on emission tax in Europe. Another Asia-based fuel oil dealer said that if the U.S. tariff on imports remains at 25%, cargoes will likely head east. An European trader stated that traders would also take into account the EU emissions trading systems (ETS) tax in calculating arbitrage to Rotterdam. The trader said that "ETS prices are low, but if they rise, it will become more important in arbitrage calculations." A source at PMI Comercio Internacional (Pemex's international trading arm) said that it would be easier to sell HSFO in Asia than Europe. They declined to name the sources as they were not authorized to speak with media.
-
Investors see the beginning of a tectonic move away from US markets
The global money flows are being upended by a historic trade war, the proposed European fiscal bazooka of $1.2 trillion and China's rise as the leader in the tech race. This could be a turning point, with investor capital moving away from the United States. China released more stimulus on Tuesday and pledged to make greater efforts in order to mitigate the impact of a escalating U.S. Trade War. The likely next German government had agreed to the largest overhaul of fiscal policy since the reunification. German bonds plunged in the biggest sell-off in decades on Wednesday as the 30-year yields jumped by a quarter percentage point. The selloff continued on Thursday. The U.S. trade war, which began this week, is hurting the mood both inside and outside of the world's largest economy. Investors have bet heavily on the "U.S. exceptionalism" for the past three years. The country has been ahead of other countries in terms of economic growth, stock market prices, artificial intelligent and many other areas. Tim Graf, State Street Global Markets' head of macro strategy in EMEA, said: "The U.S. has changed, and the world is now saying that we must adapt, as the U.S. no longer is a reliable trade partner. We have to look after our own defence needs." A rare divergence on global stock markets has been fueled by the change in sentiment. The S&P 500 index has fallen 1.8% in the past year. However, European shares have risen almost 9% to a new record high. Tech stocks in Hong Kong are up nearly 30%. The euro has soared above $1.07 for the first time in four months, and many banks have backed away from their calls to drop it to parity with the dollar. According to weekly data released by the Commodity Futures Trading Commission, investors have cut their bullish dollar bets in half since the inauguration of U.S. president Donald Trump in January. Dario Perkins is the managing director of global macro for TS Lombard. The aggressiveness and threat of tariffs by Trump has forced other countries to spend even more. In his first 44 working days, Trump has completely rewritten the playbook of foreign relations that had been in place since 1945. He's also launched a trade war with his largest trading partners, and forced European leaders into a radical rethinking of how they fund security. The U.S. economic growth is slowing down due to tariffs and trade uncertainties. Companies that are more susceptible to slower growth have started to show cracks. In the past month, an index of U.S. bank stocks has dropped 8% while its European counterpart has increased 15%. Investors are diversifying away from the U.S. markets by pouring money into Europe. Spending Big The dollar looks less attractive as Europe and China are poised to spend large amounts. "We were long the dollar versus the euro, and we closed this position more than a week back. Mark Dowding is chief investment officer of RBC's BlueBay Fixed Income team. The behaviour of Trump has reduced the appeal of U.S. assets generally. The government has taken several steps to encourage spending at home after investors sold Chinese assets in the past year. As the economy slowed, and wealthy consumers closed their wallets, it took several measures to encourage domestic consumption. Many still saw China as an uninvestable country in the absence a jumbo-stimulus plan, as tensions from a real estate bubble burst that affected both companies and homeowners remained. Lipper data shows that the almost uninterrupted outflows of China-focused funds following Trump's victory in November have reversed to some $3 billion in early February. Megacap tech stocks are a major draw for the U.S. Stock Market. Nvidia has been a leader in the AI investment revolution, and is one of the most valuable companies on the planet. It was not until late January that a low-cost Chinese AI model, previously unknown, made a serious impact on the AI arms race. DeepSeek's appearance has not only challenged assumptions about AI costs and efficiency, but also revealed how far behind Western companies China was. Hong Kong tech stocks are up 24% since January 27. A basket of U.S. megacaps is down 12%. Yang Tingwu is vice general manager at asset manager Tongheng Investment. He said that China's stock markets are already immune to increased U.S. Tariffs, as the growing strength of China is supporting domestic assets. Yang stated that "China's technological clout has expanded if you look at TikTok or Xiaohongshu, as well as DeepSeek." In response to the imminent sale of TikTok U.S. operations, American users are rapidly migrating to Xiaohongshu. For some, the dollar's appeal will last over time due to a resilient U.S. economic climate and higher interest rates. Nate Thooft is the CIO of Multi-Asset Solutions & Global Equities for Manulife Investment Management. He said: "I think there's a change in play. We view it as a tactic versus a major secular shift." Recently, he upgraded his maximum underweight position on European stocks to neutral.
-
Dalian iron ore drops as tariff woes overshadow Beijing's stimulus promises
Iron ore futures fell on Thursday, as reports of steel production reductions and trade concerns outweighed the additional stimuli measures designed to boost Chinese consumption. The May contract for the most traded iron ore on China's Dalian Commodity Exchange closed at 773 Yuan ($106.78), a decrease of 0.45%. As of 0708 GMT, the benchmark April iron ore traded on Singapore Exchange was up 0.49% to $100.25 per ton. Analysts at ANZ said that a trade war could be a problem for the market as a decline in export-driven Chinese demand would hurt demand for iron ore. China released more fiscal stimuli on Wednesday. It promised to increase efforts to support the consumption and soften the impact of a escalating US-China trade war. Washington has added 20% to existing tariffs on Chinese goods. The latest 10% increase was implemented on Tuesday and prompted Beijing's response. Some economists are not impressed by the policy measures taken to increase household demand, despite Beijing's renewed focus on consumption. Hexun Futures, a broker, said that the daily average molten output in China is expected to rise to 2.329 millions tons in March. The demand for steelmaking materials has also recovered, he added. Hexun stated that the news of a reduction in steel production intensified downward pressure on prices. China will restructure the giant steel industry by cutting output, despite not announcing any targets in its latest intervention to reduce overcapacity. Coking coal and coke, which are used in the steelmaking process, have both fallen by 0.42% and 0.58 percent, respectively. The Shanghai Futures Exchange also saw gains in other steel benchmarks. The rebar price rose by 0.4%. Hot-rolled coils were up 0.35%, stainless steel climbed 1.28% and wire rod was up 0.09%. $1 = 7.2390 Chinese Yuan (Reporting and editing by Sherry Phillips, Eileen Soreng and Michele Pek)
-
Japan's Seven & i announces restructuring, names Dacus as new CEO
Seven & i Holdings announced a new CEO and plans for a restructure of its business after a $47 billion takeover bid from a foreign company. The company announced that Stephen Dacus, a lead outside director, will succeed Ryuichi isaka as CEO, putting a first-time foreign executive at the helm of Seven & i. A press conference will be held by the company at 5 pm (0800 GMT) to discuss this plan. Seven & i, which has faced investor criticism for its capital allocation over the past few years, received a buyout bid from Circle-K operator Alimentation Couche-Tard in August. The offer was eventually raised to $47 Billion, a premium of 35% to its current market value. A group led by the founding Ito family of Seven & i made its own buyout proposal, and management at the company said that they could chart their own path to recovery. Dacus has led a committee that reviews takeover bids. He previously held executive positions with Walmart and Fast Retailing. Ito family group was unable to secure funding of $58 billion for their bid, which led to the cancellation of the deal in late November. Reporting by Ritsuko Shimimizu and Rocky Swift, Editing by Neil Fullick & Muralikumar Aantharaman
-
Russell: China's modest stimulus does not have a big impact on commodities.
Beijing has largely promised to continue the mild stimulus policy seen last year. The news that the United States and Canada have agreed to a 5% economic growth goal and promised to increase consumption as well as deal with any negative effects of the trade war, were positive. The parliament meeting of this week was also far short of any sort of announcements of stimuli that could have given commodity markets confidence that China, as the largest buyer of natural resources in the world, will see a meaningful increase in imports by 2025. What's likely to happen is that the same trends as in 2024 will continue, with some commodities performing better than others, but overall, the story remains one of modest growth. Data from the first half of this year suggests that China's imports are continuing on their recent path. LSEG Oil Research estimates that China's crude oil imports in February were 10.75 million barrels a day (bpd), up from the January figure of 10.1 million bpd but down from customs figures of 11.04 millions bpd. The government has encouraged consumers to switch to new energy vehicles, which can be either hybrids or full-electric vehicles. The subsidy program for switching to NEVs as well as more efficient appliances in the home was expanded this year. This means that NEVs will continue to grow rapidly, and now account for more than half of all new car sales. The news isn't good for those who hoped that the increased focus on consumer spending would lead to a stronger demand for steel. In a draft report by the state planner, China revealed for the first time in the last five years a plan to reduce crude steel production in 2025. The report did not specify the steel production target, but it is likely to be less than 1 billion tons. This is the level at which China's output has fluctuated around since 2019. China's imports will be affected if steel production drops from the 1,005 billion tons in 2024. These are the two main raw materials. COAL, IRON ORE China imports a small percentage of the global seaborne ore. However, they are expected to grow in 2025. Kpler estimates that February arrivals will be 83.92 millions tons, the lowest total since April 2019. This is down from 104.34 in January. Imports may have been affected by the Lunar New Year holidays in February, but adding them to Kpler's estimate for January gives an average daily of 3,19 million tons over the first two month of the year. This is down from the 3.39 million tons of 2024. Kpler estimates that China's seaborne coal imports have fallen to 29.82 millions tons in 2025. This is the lowest level since February 2024, and is down from 35.9 millions tons in January. It is likely that the decline in coal imports reflects lower domestic fuel prices which have led to a rise in inventories, and a reduction of demand for imported fuel. The announcements made by China this week were positive for commodities, especially those that are associated with energy transition. In a Wednesday statement, the National Development and Reform Commission announced that China would develop new offshore wind farm and accelerate construction of "new energy bases" in the western desert areas of the country. China's continued focus on renewable energy is good for its demand for metals like copper, aluminum and silver which are used in the manufacturing of solar panels. The Shanghai exchange's copper contracts rose as early as Thursday morning, rising as much as 1.1%, to 77990 yuan (10,757) per ton. They are now up by 5.2% from the end of the last year. Aluminium futures also gained 0.5%. The ongoing commitment to build renewable energy capacity in China and increase the share of NEVs is a reason for some optimism. However, the residential real estate sector continues to be a source of concern. The potential impact of trade wars launched by Donald Trump's administration, which could slow down global growth and increase inflation, is a greater concern. These are the views of the columnist, who is also an author. (Editing by Stephen Coates).
-
LME copper reaches near 3-week high due to dollar drop and China stimulus expectations
London copper prices reached a three-week high in London on Thursday. This was boosted by the sharp drop of the dollar, and expectations that China will provide more stimulus to boost economic growth. The price of three-month copper at the London Metal Exchange was up 0.3% to $9,610.5 per metric tonne by 0443 GMT. This is its highest level since February 14. The Shanghai Futures Exchange's most active copper contract jumped by 1.8%, to 78470 yuan (10,830.47) per ton. This is the highest level in over two weeks. Market participants expect more stimulus measures to be taken by the Chinese government in order to boost consumption and reduce the impact of a escalating US-China trade war. Daniel Hynes is a senior commodity analyst at ANZ Bank. He said that the prospects of more China stimulus measures boosted base metals in Asian trade. Dollar index fell to its lowest level in four months on Thursday. This made commodities priced in greenbacks cheaper for buyers who hold other currencies. The European defence spending measures also boost (metals's) growth outlook, while simultaneously lowering the U.S. Dollar," said Kyle Rodda. He is a senior financial market analyst at Capital.com. Rodda said that the Trump administration's move to reduce some tariffs has raised hopes for a world free of the worst effects of a global trade war. The White House announced on Wednesday that President Donald Trump would exempt U.S. automakers from 25% tariffs against Canada and Mexico during the first month, as long as they adhere to existing free-trade rules. SHFE aluminium gained 1.5%, to 20,920 Yuan per ton. Zinc gained 1.7%, to 24,040 Yuan. Nickel gained 0.4%, to 128,620 Yuan. Lead advanced by 0.5%, to 17,415 Yan, and tin gained 0.5%, to 258,110 Yuan. LME aluminium rose 1.1% to $2688 per ton. Zinc jumped 0.6% to 2,897. Lead rose 0.1% at $2,036, Nickel climbed 0.4% at $15,970. Tin advanced 0.6% at $31,900. ($1 = 7.2453 Yuan) (Reporting and editing by Rashmi aich and Sonia Cheema in Bengaluru)
-
Investors see the beginning of a tectonic move away from US markets
The global money flows are being upended by a historic trade war, the proposed European fiscal bazooka of $1.2 trillion and China's rise as the leader in the tech race. This could be a turning point, with investor capital moving away from the United States. China released more stimulus on Tuesday and pledged to make greater efforts in order to mitigate the impact of a escalating U.S. Trade War. The likely next German government had agreed to the largest overhaul of fiscal policy since the reunification. The U.S. trade war, which began this week, is hurting the mood both inside and outside of the world's largest economy. Investors have bet heavily on the "U.S. exceptionalism" for the past three years. The country has been ahead of other countries in terms of economic growth, stock market prices, artificial intelligent and many other areas. Tim Graf, State Street Global Markets' head of macro strategy in EMEA, said: "The U.S. has changed, and the world is now saying that we must adapt, as the U.S. no longer is a reliable trade partner. We have to look after our own defence needs." A rare divergence on global stock markets has been fueled by the change in sentiment. The S&P 500 index has fallen 1.8% in the past year. However, European shares have risen almost 9% to a new record high. Tech stocks in Hong Kong are up nearly 30%. The euro has soared above $1.07 for the first time in four months, and many banks have backed away from their calls to drop it to parity with the dollar. According to weekly data released by the Commodity Futures Trading Commission, investors have cut their bullish dollar bets in half since the inauguration of U.S. president Donald Trump in January. Dario Perkins is the managing director of global macro for TS Lombard. The aggressiveness and threat of tariffs by Trump has forced other countries to spend even more. In his first 44 working days, Trump has completely rewritten the playbook of foreign relations that had been in place since 1945. He's also launched a trade war with his largest trading partners, and forced European leaders into a radical rethinking of how they fund security. The U.S. economic growth is slowing down due to tariffs and trade uncertainties. Companies that are more susceptible to a slower rate of growth are beginning to show cracks. In the past month, an index of U.S. bank stocks has dropped 8% while its European counterpart has increased 15%. Investors are diversifying away from the U.S. markets by pouring money into Europe. Spending Big The dollar looks less attractive as Europe and China are poised to spend large amounts. "We were long the dollar versus the euro, and we closed this position more than a week back. Mark Dowding is chief investment officer of RBC's BlueBay Fixed Income team. The behaviour of Trump has reduced the appeal for U.S. investments in general. The government has taken several steps to encourage spending at home after investors sold Chinese assets in the past year. As the economy slowed, and wealthy consumers closed their wallets, it took action to stimulate domestic spending. Many still saw China as an uninvestable country in the absence a jumbo-stimulus plan, as tensions from the real estate bubble burst that hit companies and homeowners lingered. Lipper data shows that the almost uninterrupted outflows of China-focused funds following Trump's victory in the November election reversed themselves in early February. Lipper data indicates that about $3 billion has been redirected since then. Megacap tech stocks are a major draw for the U.S. Stock Market. Nvidia has been a leader in the AI investment revolution, and is one of the most valuable companies on the planet. It was not until late January that a low-cost Chinese AI model, previously unknown, made a serious impact on the AI arms race. DeepSeek's appearance has not only challenged assumptions about AI costs and efficiency, but also revealed how far behind Western companies China was. Hong Kong tech stocks are up 24% since January 27. A basket of U.S. megacaps is down 12%. Yang Tingwu is vice general manager at asset manager Tongheng Investment. He said that China's stock markets are already immune to increased U.S. Tariffs, as the growing strength of China is supporting domestic assets. Yang stated that "China's technological clout has expanded if you look at TikTok or Xiaohongshu, as well as DeepSeek." In response to the imminent sale of rival social media platform RedNote, American users are moving rapidly to Xiaohongshu. TikTok's U.S. operations. For some, the dollar's appeal will last over time due to a resilient U.S. economic climate and higher interest rates. Nate Thooft is the CIO of Multi-Asset Solutions & Global Equities for Manulife Investment Management. He said: "I think there's a change in play. We view it as a tactic versus a major secular shift." Recently, he upgraded his maximum underweight position on European stocks to neutral.
Japan's Seven & i is expected to announce a new CEO and restructuring plan
Seven & i Holdings is the Japanese operator of 7-Eleven, a global convenience store chain. It will announce a new leadership on Thursday, and plans to restructure the business in response to a $47 billion takeover bid from a foreign company.
Sources have confirmed that Stephen Dacus, the lead outside director, will succeed Ryuichi isaka as the chief executive of Seven & i. This is the first time a foreigner has been in charge at the Japanese retail conglomerate.
Sources said that Seven & i will announce its leadership change and plans, including the sale to Bain Capital of non-core assets, at a board meeting.
Investors have been criticizing the company's capital allocation over many years. In August, it received a purchase offer from Circle-K operator Alimentation Couche-Tard, which was eventually raised to $47 Billion, or a premium of 35% to its current market value.
This sparked a tug-of-war amongst Canada's Couche-Tard and the founding Ito family of Seven & i, as well as company management, who thought they could chart their own path to recovery.
Dacus has led a committee that has been evaluating the takeover offers. Dacus previously held executive positions with Walmart and Fast Retailing. Ito family group was unable to secure funding of $58 billion for their bid, which led to the cancellation of the deal.
The Nikkei published a report on Monday that Paul Yonamine will replace Dacus as the head of the Special Committee.
The shares of Seven & i fell on Tuesday after a report that the Japanese company was considering the Couche-Tard bid, but the Japanese firm said they were still evaluating it.
Bloomberg News, citing sources familiar with the situation on Wednesday, reported that Seven & i will likely sell its non-core businesses to Bain Capital at a price of more than 700 billion yen (about $4.75 billion).
Isaka joined 7-Eleven in 1980 and became its president in 2016. His reign was criticised by foreign investors. ValueAct Capital tried to remove him from office in 2023 because it believed his strategy was flawed.
Artisan Partners, based in the United States, has urged Artisan to adopt a competitive bid process for takeover offers.
Isaka announced an independent turnaround plan for October. It aims to double its sales to 30 trillion Japanese yen in 2030, by expanding overseas and focusing more on fresh food offerings.
It would be the largest foreign takeover ever of a Japanese firm if Couche-Tard were to succeed in acquiring control of Seven & i.
Seven & i, a Japanese media company, was classified in September as "core" for Japan's national defense. However, the Finance Ministry said that it would not create obstacles to a takeover. ($1 = 149.9500 yen). (Reporting and editing by Ritsuko Shimizu and Rocky Swift)
(source: Reuters)