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Microsoft will keep its shareholder rights until 2027 even as SEC oversight is reduced
Microsoft will continue to consider shareholder proposals until 'next year. This is at the request of a 'activist who wants to protect investor rights in light of a controversial Securities and Exchange Commission rule proposal that was proposed last week. Microsoft has reached an agreement with conservative activist Paul Chesser. The agreement, which was seen by, will allow investors to continue to use the existing thresholds to submit resolutions to be voted on, while the SEC is considering changes that, according to critics, would exclude individual investors, religious organizations, unions, and others, who have been able to voice their opinions through the shareholder proposal processes for decades. The agreement is only for a year but it could be used to counteract efforts made by the regulatory agency in order to transfer power from investors to corporate executives. Chesser hopes Microsoft's corporate governance model will be adopted by other companies to give mom-and pop investors a voice. "Microsoft?put in writing the fact that the smallest, long-term shareholders of the company would still be able to have their voices heard next year no matter what SEC did," said?Chesser at the National Legal and Policy Center. He said that every company who claims to value their shareholders should be questioned about why they won't do so. Microsoft's spokesperson stated in an emailed statement: "With the Securities and Exchange Commission having announced that its shareholder proposal regulatory structure is being reviewed, we have agreed to maintain the eligibility thresholds as they are for one year. This will provide Microsoft and its shareholders with a clear and predictible process for the next voting cycle." In recent years, shareholder resolutions have been a major focus at many shareholder meetings. However, support for these resolutions has decreased from the largest fund companies. Early EXAMPLE Microsoft's annual meeting will be held on December 8, and has traditionally been the first of the year's proxy cycle, which runs from June 30 to July 31. This is done in order to bring attention?to the company governance procedures. SEC chair Paul Atkins, a Trump appointee, proposed last week to 'end the agency’s oversight of the resolutions processes and move that function to state officials. Activists saw this as a change which would reduce their influence. This move is part of the Republican-dominated SEC's broader effort to shift power from investors towards managers. According to the agreement between Chesser &?Microsoft seen by, Microsoft will continue to apply its previous eligibility requirements to investors who wish to submit resolutions to a vote. Chesser’s group is negotiating similar resolutions with Procter and?Gamble, Oracle and could submit more. P&G has set the date for its?annual meeting on October 13th. In its proxy statement of August 28, the company recommended voting against the proposal. Among other things, it called it premature because the SEC had not yet proposed their rulemaking. A P&G spokesperson declined to comment. Oracle's AGM is yet to be set. A representative didn't immediately answer questions.
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Trump backs a ban on the export of diesel
On Tuesday, President Donald Trump?said that he supported the idea of a 'ban on diesel exports. Some US?politicians have called for a 'ban on the export of diesel as a way to tame the rising cost of energy. The price of diesel has risen to record levels in Europe and America as the wars in Iran, Ukraine and Russia have sharply reduced exports by some of the largest producers such as Russia and Saudi Arabia. "I said let's send the diesel out. We make a great deal of diesel... I've asked for it. I've asked for it among my people," Trump said to?reporters before a meeting with Ukrainian president?Volodymyr Zelenskiy. Speaking at the same event, US Treasury Secretary Scott Bessent said that the administration was looking into whether or not a complete ban is feasible. Several Republican Senate candidates who are in the most competitive races for the mid-term elections on November 3, this week, called for the administration to implement an export ban to reduce the high cost of goods for Americans. Trump said he and Zelenskiy will discuss the Ukrainian attacks on Russian refinery sites. It is a serious blow to the Russians. "It's a serious hit to the price of diesel," Trump said. He also told reporters that the two leaders will discuss?working on a'solution' to end Russia's conflict in Ukraine. Trump stated, "I believe it will happen."
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France increases targeted fuel price reductions, according to Finance Minister
The French government will provide targeted energy relief to those who are most affected by rising fuel prices. Finance Minister Roland Lescure announced new measures on Tuesday that would help families cope with the spike in fuel costs caused by the Middle East conflict. Fuel prices have been rising and prompted protests from fishermen. There are now calls for larger demonstrations to increase pressure on the government about living costs in advance of the upcoming presidential election. Lescure said at a press conference that "we are aware of the difficult situation for our citizens,?especially those who drive every day to work, and especially those with the lowest incomes." Home care workers and independent nurses, particularly in rural areas will have access to this?programme. The latest package will double the amount of aid available to commuters with low incomes and high mileage, increasing it from 3 million people to 5.5 millions. The government has also extended its support to the end of December, for those sectors that are most affected by rising fuel prices. These include fishing, agriculture and construction. Some fishermen who blocked Mediterranean ports to protest fuel prices will receive assistance covering up to 70%. They can also access zero-interest loans. The emergency energy relief spending, combined with the rising borrowing costs, has led to a sudden deterioration of France's already stressed public finances. This pushes its target for deficit reduction out of reach. David Amiel, Minister of Budget, said that the new measures would cost EUR450m, which brings?the total to date up to EUR1.4bn. Lescure stated that there was no concern at this time about fuel supply over the next 2 months. However, the situation should be closely monitored.
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IMF warns Algerian FX reserves may fall by 61% in 2031
The International Monetary Fund announced on Tuesday that Algeria's foreign currency reserves will?fall sharply? over the next six-year period, from $51 billion in?2025 down to $19.8 billion by 2031. However, higher hydrocarbon revenue could offer an opportunity to rebuild buffers. IMF predicts that reserves will drop to $46.5 billion by 2026. They are expected to fall further in the following years: $27.8 in 2029; $23.5 in 2030; and $19.8 in 2031. The report said that a larger current account deficit in 2025 caused by higher imports and lower hydrocarbon exports had contributed to the decrease in Algeria's reserves of foreign currency. The IMF predicts GDP growth of 3.8% by 2026, after 3.9% growth in 2025. Growth will then slow to 3.1% in 2020, 3.0% growth in 2028, and 2.9% growth in 2030 and 2031. It said that 'Algeria can use higher hydrocarbon revenue to rebuild fiscal and?external?buffers. But it recommended a gradual fiscal -consolidation. The report also called for the continuation of?reforms in order to diversify and strengthen the private sector-led economy.
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Oil drops below $100, Nasdaq records record high.
Tuesday, the Nasdaq's tech-heavy index hit an intraday high for the first time since?June. Meanwhile, oil prices fell to their lowest levels in two weeks as signs of a?improvement?in supply?in the Middle East. The tech stocks have regained the spotlight, as AI demand shows no signs of slowing down and corporate earnings remain resilient. Ulrike Hoffmann Burchardi is the CIO Americas at UBS and global head of Equities. She said: "We continue to maintain a positive outlook on AI, supported by increasing adoption and monetization as well as rising capital spending." The Nasdaq Composite increased 0.40% to 27,231.59, while the S&P 500 remained roughly flat and Dow Jones Industrial Average dropped 0.40%. The MSCI index of global stocks rose by 0.92 points or 0.08% to 1,153.33. The pan-European STOXX 600 rose by 0.2%. The fall in oil prices has heightened risk appetite. A senior Iranian official said on Tuesday that Tehran could reopen Strait of Hormuz in seven days, if the United States eases their military pressure and lifts the blockade of Iranian ports. Three sources informed on the issue also said that Saudi Arabia had restarted its East-West Pipeline, and that it could resume exports from the Red Sea Port of Yanbu on Tuesday. Brent crude fell to $99.92 a barrel, down by 0.43% for the day. U.S. Crude was down 0.47% on Monday. TRUMP-XI METING IS AWAITED Investors are watching the meeting between US president Donald Trump and Chinese president Xi Jinping this week for any signs that they can stop a further deterioration of relations. Xi arrived in Washington for the first in over a decade on Wednesday, boosting optimism about the extension of a trade truce and possible cooperation in AI. The big question for markets is what will happen after the one-year truce ends in November. While the tone of the market remains positive, there hasn't been an agreement reached yet, according to Jim Reid, a Deutsche Bank strategist. RATE INCREASES ARE ON THE WAY German and US bond yields dropped in tandem with oil. Investors are pricing in a second round of rate hikes by major central banks. This could limit the fall in debt yields. The 10-year Treasury yields in the US fell 0.17 basis points to 4.961% on Monday. The dollar rose 0.17% against the euro, to $1.1441. It was also down?0.03% on the Japanese yen at 157.33. Investors were disappointed by the Bank of Japan's decision to raise rates, which was a 31-year record. However, two dissenting votes as well as a lack of explicit guidance on hawkish policy left the yen vulnerable. Matthew Ryan, Ebury's head of market strategy, said that FX intervention is a blunt tool for stabilizing currencies. Without a forceful response from the Japanese authorities, it will be hard to stop the selling off in the yen. The Federal Reserve on the other hand, increased rates last week, and warned that its fight against inflation is not over.
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Moroccan central bank sets benchmark interest rate at 2.5%
The?central?bank of Morocco kept its?interest rates at 2.25%, saying that current borrowing costs were?in line with the inflation outlook despite increased global economic uncertainty. The bank stated in a statement following its quarterly board that inflation will average 0.7% by 2026 after a fall in food prices. Next year it is expected to rise to 1.5%. Bank of America expects the energy bill for 'Morocco to increase by 28.4%, to 138 billion dirhams (about $14.5 billion), due to disrupted markets caused by the Middle East war. The impact of energy costs on inflation will remain "limited", the report said. It cited subsidies for public transportation, cooking gas, and electricity. The bank stated that Morocco's current account deficit will increase to 4,6% of GDP from 2,4% last year. The deficit would be reduced by increased exports of fertiliser and automobiles, as well as an increase in tourism revenues. The central bank of Morocco said that the country's foreign exchange reserves will grow to $54 billion by 2027. This is enough to cover 5.5 months worth of imports.
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Data shows that India's Russian crude oil imports declined in August and then again in September.
Data from trade sources revealed that the share of oil imported by India from Russia fell in August. Meanwhile, supplies from the Middle East increased, as Abu Dhabi National Oil Co sold oil from this region outside of the Strait of Hormuz. ADNOC, the state-owned oil company of the United Arab Emirates, has boosted its shipping operations. It now transports oil from its fields in the Strait of Hormuz to storage and export terminals in Fujairah (Fujairah) and Sohar (Sohar), where it is sold. ADNOC also buys oil from other producers, such as Iraq, to resell. The data showed that India's Russian imports dropped by 16.5% from the previous month in August to 2.1 million barrels of oil per day. Russia was India's largest oil supplier. The UAE, Venezuela and Venezuela were the next two. Data showed that the world's third largest oil importer increased its?purchases of Iraqi crude oil by about a quarter, to around?171,000 barrels per day. Imports from the UAE dropped 5.4% in July to 620,000 bpd. Saudi Arabian crude oil, offered from ports outside of the Strait, grew 1.5% to reach 328,000 bpd. India increased its purchases of Russian crude oil following tensions between the United States and Iran that led to a?blockade? of the Strait of Hormuz. According to preliminary data, India's Russian crude oil imports fell to 1.9 millions bpd during September. Indian refiners are looking at spot markets to secure supplies for October and November, as they worry that if U.S. president Donald 'Trump' decides to impose a tariff of up to 100% on countries purchasing Russian oil, it may be necessary to reduce their purchases. New Delhi is currently negotiating a deal with Washington and has stated that it remains "firmly committed" in ensuring energy security for its people. It will continue to purchase supplies from a variety of sellers depending on the market dynamics. The data shows that India's total oil imports dropped 8.8% to 4,44 million bpd in August.
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Sources: Congo to centralise mining investment agency as part of US deal
Four sources have confirmed that the Democratic Republic of Congo has been preparing to create a "one-stop" agency for major mining investment as part of its reforms related to its partnership with US minerals. The aim is to reduce red tape and to attract more Western capital to a sector dominated largely by Chinese companies. Congo is the second largest copper and cobalt producer in the world. It is the center of the 'competition between global powers to supply critical minerals essential for the energy transition and advanced manufacture. China, the US and the European Union all signed mineral agreements with Kinshasa in order to gain access to the vast resources. The US deal has already helped to boost Congolese sales of copper in the US and Europe. One-stop agency According to two government officials, one diplomat, and one mining analyst, the?planned agency will be open to Chinese investors and other foreign firms as well as US and European companies. They declined to name the sources because they weren't authorised to speak in public. The Congo's Mines and Finance Ministries did not respond to comments. According to government sources and an analyst, the reform led by the Finance and Economy Ministries would centralise the company registration, licensing and taxation processes for major mining investment, and reduce approval times that currently can take several months. An official in the government said that the agency will initially focus on joint venture projects valued at more than $1 billion and operating?under special tax regimes. He cited the Chinese-controlled Sicomines Copper and Cobalt Venture as an example. The official added that the?legislation creating the agency is still pending promulgation. Eric Ndeh of the civil society group Afrewatch, said that "the one-stop shop" is meant to cut through bureaucratic silos which have long complicated mining investments in Congo. Ndeh said that the agency should be operational by this year. Congo has said that its goal of attracting more Western investment was not to replace China, but to diversify funding sources and export markets. Ndeh stated that "the paradox is that the US-DRC mineral partnership, which was partly responsible for the reform, could make it easier to do business for Chinese investors as well as European and American ones,"
McGeever: It's time to reconsider the asset of a "safe haven"
The Iran War and the 'global energy shock' it unleashed could have put an end to the idea that there is a safe-haven investment for everyone.
It's not a novel concept given the poor performance of U.S. Treasuries after Russia invaded Ukraine in 2004. The extraordinary fall in gold prices'since the U.S. and Israeli strike on Iran on 28 February' has brought it into the spotlight.
In times of economic, geopolitical or financial instability, investors flock to assets like Treasuries. The dollar, Swiss Franc and especially gold. These are the assets that will most likely serve as a safe haven in times of crisis.
Gold has been a safe haven for non-financial assets, especially in times of inflation. Gold has not only performed poorly in the current crisis, but it is also one of the most underperforming assets.
It has lag behind high-yielding credit, emerging markets stocks, and frontier market stocks. Silver was the only asset that has performed better than it, and this is because of a speculative boom.
Gold has fallen 17% in March so far, and is on course to have its worst month since 1982. This is astonishing in a month marked by the worst Middle East conflict, biggest global energy crisis, accelerating inflation, and $6 trillion worth of global stock value being wiped out.
Around the middle of 2012, gold began to be untethered by whatever economic fundamentals were underlying it. Retail investors, momentum traders, and machines chased gold higher as central bank demand cooled. It culminated in a January high of $5 595 per ounce. This "fear of losing out" (FOMO), euphoria soon turned into widespread liquidation and drowned out any "FTQ", or flight to quality, demand sparked by this crisis.
PLENTY OF REASONS TO SELL, FEW TO BUY
The dollar and U.S. Treasuries are not much better.
The dollar has risen but only by less than 2 percent. The Federal Reserve is not the only major central bank that will likely tighten its policy this year.
Analysts at Deutsche Bank note that many central banks from Asia and the Middle East will likely look to reduce their FX reserves to cover their increased import costs, to prevent their currencies weakening excessively, and to cushion any inflation shock.
This will cap dollar and could be a greater drag on U.S. Treasuries. This may have already begun. The amount of Treasuries that are held by the New York Fed for global central banks fell by around $75 billion over the past four weeks.
Analysts at Deutsche Bank estimate that this is equivalent to around $60 billion in sales by the official foreign sector. This would be the second-largest net sale since the COVID-19 Pandemic. It's true that the Treasuries Market is the most liquid market in the world. But it is no longer considered the safest.
The Swiss franc, and the Japanese yen are both affected by domestic problems. Both currencies have historically enjoyed current-account deficits and low rates of inflation.
The Swiss National Bank has stated that it is more willing to intervene on the foreign exchange markets due to currency appreciation. The yen is already at multi-decade lows and doesn't hold much appeal, given that Japan imports most of its energy.
Investors need to be flexible and more creative in the current turmoil. Trading strategies are often more effective than buying safe-haven assets. The response to each crisis depends on its origin, for example, buying energy stocks during an energy crisis, or buying defense stocks during a conflict.
Cash is the one asset that seems to always do well during a crisis or even an inflationary supply shock. U.S. Money Market Funds have grown by about $60 billion since the 28th of February to a record $7.86 trillion. You shouldn't bet against the total exceeding $8 trillion within weeks.
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(source: Reuters)