Latest News
-
Reliance Jio woos potential investors by selling 8% of stakes individually in the IPO, according to sources
Sources familiar with the situation said that Indian billionaire Mukesh Ambani's Reliance Jio Platforms held discussions with a group of prestigious foreign investors to sell 8% of their individual stakes in the upcoming Mumbai listing for the company that will transform telecoms into artificial intelligence. Ambani’s Jio Platforms is expected to file for approval in Mumbai of its IPO as soon as this week. KKR and Vista Equity Partners are also big investors. Investors include three?Gulf sovereign fund, the Public Investment Fund, Mubadala, and Abu Dhabi Investment Authority. One of two sources who were involved in the IPO said that the stake sale would be "around 8%" for everyone. The discussions were confidential, so the source spoke on condition of anonymity. Reliance or the investors didn't immediately respond to comments. Calculations show that each investor's?sale? of 8% of its holdings is equivalent to about 2.5% Reliance Jio’s total outstanding shares, as planned. Meta selling 8% would be a sale of?0.8% by the US. For example, a tech giant. The final figures could change even though the focus of the discussions has been on each investor selling 8 percent of their holding.
-
Reports of a ceasefire in the Middle East have led to a rise in oil prices and a decline in stock prices
Stocks rose on Wednesday and oil prices fell, on reports that the U.S. is seeking a ceasefire for one month in its war against Iran. A 15-point plan was sent to Iran?for discussion. This raised hopes of a breakthrough which could help restore oil from 'the Gulf. S&P futures increased by 0.7% during the Asia day. European futures grew by 1.2%, and FTSE Futures rose by 0.7%. These modest gains reflect investor caution. Brent crude futures fell 5% to $99 per barrel. Japanese stocks rose by 3% while Australian and South Korean markets rose by 2%. This was a recovery of recent losses, but not the weeks-long declines since the war began. The market is trading headlines right now, said Kerry Craig. He's a global market strategist with J.P. Morgan Asset Management. "There's definitely a positive vibe." There are still questions about what will happen next and if there is a real ceasefire. Donald Trump, the U.S. president, said that the U.S. made progress on Tuesday in negotiating a peace agreement with Iran. He also claimed to have won an important concession. A source confirmed that Washington sent Iran a 15 point settlement proposal. According to Channel 12 in Israel, citing sources, the U.S. wanted a one month ceasefire for the discussion of the 15 point plan. Tehran denies direct talks and on Wednesday, the official IRNA News Agency quoted a spokesperson from the armed forces as saying that the U.S. was "negotiating with themselves". CAUTIOUS OPTIMISM The lack of clarity on when or if oil exports from the Persian Gulf will resume, and signs that oil prices are already causing economic damage, has tempered the markets' response to Trump's concessions. Brent crude oil prices are still up by 35% since war broke out and have reached a level of $100 per barrel. The dollar has only marginally declined this week and was stable in Asia on Wednesday, buying 158.9yen and trading for $1.1594 per Euro. The interest rate markets also expect central bankers to take extreme measures in order to combat inflation. They are predicting a series hikes for Europe, Britain and Australia over the next few months, as well as a halt in any further U.S. rates cuts. In Tokyo, benchmark 10-year Treasury yields decreased by 4.4 basis points and fell to 4.35%. Two-year yields also dropped slightly to 3.87%. Marc Velan is the head of investments for Lucerne Asset Management, a Singapore-based asset management firm. People are reluctant to pursue moves that are solely headline-driven, and which can be reversed?quickly. There are also growing concerns in the credit markets, where there is stress. Ares Management became the latest asset management firm to limit withdrawals from a private debt funds on Tuesday. This spooked investors. The shares of Ares, a company that will manage approximately $623 billion of assets by the year 2025, dropped 1% on Monday. So far in 2018, they are down 36%. (Reporting and editing by Sam Holmes; Tom Westbrook)
-
MORNING BID EUROPE-Deal, or no deal?
Tom Westbrook gives us a look at what the future holds for European and global markets. Donald Trump, U.S. president, told reporters in the White House that "we're currently in negotiations". He boasted about the Iranians making a "tremendous amount of money" concession. However, he did not provide any?further information. He said, "It was an incredibly nice thing they did." Iran has not confirmed the claim, and an official Iranian news agency reported that a spokesperson for the armed forces said that "the U.S. was negotiating with itself". The tone of the speech has caused oil to fall and stocks to rise in the Asia session. However, the gains are not huge. Israel struck Tehran, however, on Wednesday. Semi-official Iranian reports claimed that the strike was in a residential area. Iran, however, has denied being involved in any direct negotiations to stop or pause hostilities. The?New York Times said on Tuesday that Washington had sent Iran a plan of 15 points to end the conflict. Israel's Channel 12, citing three sources, reported that the U.S. wanted a one-month ceasefire in order to discuss the 15 point plan. A source familiar confirmed that the U.S. sent a plan to Iran, but did not provide any further details. The markets are "hesitating" to go too far for a number of reasons. One is that the negotiations may not be substantive or will fail, and another is the fact that the economic damage continues to grow. The growth of the Eurozone private sector has almost stalled in the last month, as inflation expectations have risen and delivery times have risen. This is further evidence that the U.S.-Israeli war on Iran is causing a real drag to the region. As the Mideast oil and natural gas infrastructure has suffered damage, Asian currencies are under pressure. South Korea's National Pension Service is working to increase its strategic hedging rate over the long term in order to "stabilise the fragile won", reported on Wednesday. The report cited sources familiar with the fund's conversations with the central bank and government. Gold has recovered a little with the mood, but is still on track for its biggest monthly fall since 2008. This shows how few investors have been able to hide from the war. Profit-taking after a two-year rocketing rally has knocked down this traditional safe-haven. Cash is the one thing that keeps things moving. U.S. Money Market Funds have increased by about $60 billion since the 28th of February to reach a record $7.86 trillion. The following are key developments that may influence the markets on Wednesday. News from the Middle East Economic indicators: British CPI and German IFO; European consumer confidence Carnival Corp. Earnings
-
Iron ore falls after 3-session rally over Tangshan production curbs
Iron ore futures fell on Wednesday, after a?three-session rally. Fears of production 'cuts' in China’s steelmaking center of Tangshan pushed the price down. However, losses were?limited, as possible supply disruptions in Australia curbed declines. As of 0332 GMT, the?most-traded? May iron ore contract at China's Dalian Commodity Exchange fell by 1.46% to 89.5 yuan (US$117.47) per metric ton. Iron ore benchmark April on the Singapore Exchange fell 1.46%, to $106.1 per ton. According to a WeChat announcement by the local authorities, Tangshan activated an emergency response of 'level two' on March 25 due to heavy air pollution. This stoked concerns about steel production cuts and increased environmental inspections at mills. World Steel Association data released on Tuesday showed that global crude steel production dropped 2.2% from the previous year to 141.8 millions tonnes. In February, output from China -- the world's largest producer and consumer -- dropped 3.6% to 76.1 millions tonnes. Steel prices and margins have been under pressure due to the persistent oversupply of steel in China. Beijing reiterated their commitment to reduce steel production earlier this month. This reinforced expectations that demand would be weaker in the future, leading to a drop in prices. The downside has been curbed by potential supply disruptions, especially in Australia, which is the largest iron ore exporter in the world. According to the Bureau of 'Meteorology' in Australia and a note by ANZ, a cyclone is threatening mining activities off Australia's northeast 'coast' this week. ANZ said that the storm may have impacted open pit mines as well. Coking coal and coke both lost 2.14% and 1.69% respectively. The steel benchmarks at the Shanghai Futures Exchange have mostly declined. Rebar fell by 0.45%, while hot-rolled coils dropped 0.33%. Wire rod also lost 0.39%. Meanwhile, stainless steel rose 0.73%. $1 = 6.8910 Yuan (Reporting and editing by Ruth Chai)
-
Copper rebounds on softer dollar, Middle East de-escalation hopes
Prices of copper rose on Wednesday as a softer dollar and renewed hope for a deescalation of the Middle East conflict boosted?demand prospects. The Shanghai Futures Exchange's most traded copper contract rose by 1.36%, to 95,800 Yuan ($13.916.13) per ton at 0153 GMT. The benchmark three-month copper price on the London Metal Exchange rose 1.49%, to $12281 per tonne. The market sentiment improved significantly after U.S. President Donald Trump stated on Tuesday that Washington was making progress in its negotiations to end the war with Iran and had won an important concession from Tehran. Analysts at Everbright Futures wrote in a report that the expectation of a de-escalation between the U.S. The U.S. and Iran negotiations are still uncertain. The copper prices in Shanghai and London both?lost some ground on Tuesday, as rising energy prices and a protracted Iran war intensified fears?over inflation? and the global economic growth outlook. The base metals complex also received a boost from a softer dollar, which made commodities priced in dollars cheaper for buyers who used other currencies. SHFE aluminium increased by 0.8%. Nickel?and Lead advanced by 0.55%, while tin rose 3.94% and zinc edged upwards 0.13%. Nickel?rose 1.3 %, lead gained 0.61 %, tin grew 3.03 %, zinc jumped 1.13% and aluminium fell 0.51%.
-
Filings show that a Valero refinery explosion and fire were caused by a fluid release.
A release of fluid set off an explosion and ensuing fire ?that forced the temporary shutdown of ?Valero Energy Corp's 380,000-barrel-per-day (bpd) oil refinery ?in ?Port Arthur, Texas, according to a notice the company filed with state pollution regulators on Tuesday. The people reported that no injuries were reported in connection with the explosion of the Unit 243 Diesel Hydrotreater (47 000 bpd) unit. The date for the restart of the refinery has not been announced. Valero filed a notice with the Texas Commission on Environmental Quality on Tuesday night stating that an unpredicted release of fluid from Complex 2 caused a?ignition event and multiple process units upsets. Iran has closed the Strait of Hormuz - a vital waterway for Middle East oil and refined products - in retaliation to U.S. air strikes and Israeli attacks. Donta Miller is the chief deputy of the Jefferson County Sheriff. She said that on Tuesday, there was no proof the explosion, which could be felt up to 11 miles away (18 km), occurred as a result of someone deliberately attempting to damage a refinery. Since Monday, online posts have suggested that the Port Arthur refinery blast was caused by sabotage either by Iranian or Israeli agents. Miller replied, "No we are not looking into it in that way." Sources said that shutting down the refinery would be necessary to put out the fire by cutting off the flammable materials which were feeding it. As firefighters fought the fire, the refinery's water and steam supply was cut off. Diesel hydrotreaters remove sulfur from motor fuels using hydrogen during production in order to comply with U.S. Environmental Rules. The fire was extinguished on Tuesday, and the shelter-in place order issued to west?Port Arthur's residents at 6:20 pm CDT (1120 GMT), on Monday?was lifted just before 6 am CDT, on Tuesday. The TCEQ filed states that the Valero refinery closed its large crude distillation units, gasoline-producing 'fluidic catalytic crackers, diesel-producing 'hydrocrackers, cokers and sulfur re-covery units. Hydrotreaters, reformers, alkylation units, and hydrotreaters. Valero Port Arthur, its largest refinery, is located 86 miles (138 kilometers) east of Houston. (Reporting from Houston by Erwin Seba; Additional reporting in Bengaluru by Ishaan arora and Swati verma; Editing by Susan Fenton and Howard Goller)
-
Oil prices fall on prospects of Middle East ceasefire alleviating supply disruption
Prices of oil?dropped more than 5%?Wednesday? on the prospect that a 'possible? ceasefire would ease supply disruptions in the Middle East region, after reports that the U.S. had sent Iran a plan with 15 points to end their war. Brent crude futures dropped $6.21 or 5.9% to $98.28 per barrel at 0058 GMT after falling to $97.57. U.S. West Texas Intermediate crude futures fell $4.67 or 5.1% to $87.68 per barrel after dropping as low as $86.72. Both benchmarks gained nearly 5% Tuesday before paring their gains in volatile trading after the settlement. Hiroyuki KIKUWA, the chief strategist at Nissan Securities Investment (a unit of Nissan Securities), said that expectations of a 'ceasefire' have increased slightly, and profit-taking has taken over. He added, "But it remains uncertain whether the negotiations will be successful and limit sales." If fighting resumes and Iran attacks?energy installations in neighbouring nations or if the pressure to close Strait of Hormuz increases, oil prices could surge again, he warned. U.S.?President Donald Trump stated on Tuesday that the U.S. is making progress in negotiating an ending to the war with Iran. A source confirmed Washington had sent Iran 15-point proposal for settlement. Israel's Channel 2 reported that the U.S. is seeking a one-month ceasefire in order to discuss the plan. The plan includes dismantling Iran's nuke program, ending support for proxy groups and reopening the Strait of Hormuz. The International Energy Agency called it the largest oil supply disruption ever. The?Prime Minister of Pakistan said on Tuesday that he would be willing to host discussions between the U.S. Iran has denied any negotiations with the U.S. According to a Tuesday note, Iran told the?United Nations Security Council (UNSC) and the International Maritime Organization (IMO) that "non-hostile ships" could transit the Strait of Hormuz if coordinated with Iranian authorities. Sources said Washington is preparing to send more troops into the region. Shipping data show that to offset the disruptions in the Strait of Hormuz, Saudi Arabia's Red Sea Yanbu Port exported oil at a rate of nearly 4 million barrels a day last week. This is compared with exports before war began. (Reporting and editing by Christopher Cushing, Christian Schmollinger and Yuka Obayashi)
-
Philippines: Working with Washington for oil from sanctioned U.S. countries
The Philippines' ambassador to the United States stated that it is working closely with Washington in order to securing waivers and exceptions to allow oil to be purchased from sanctioned U.S. countries. This will 'ensure supply. The Philippines, which is heavily dependent on imported fuels, declared on Tuesday a national energy emergency in order to deal with Middle East War fallout, including oil procurement. In a series of phone messages, Jose Manuel Romualdez said: "We're working with the State Department on getting waivers or exemptions for oil purchases from sanctioned U.S. countries." Romualdez responded that "all options" are being considered when asked if Venezuelan oil and Iranian oil were included in the discussions. When asked what the State Department's response was, the ambassador said: "Work is in progress." The government of the Philippines said that as of March 20, it had enough fuel to last the Philippines for 45 days. It is also purchasing 1 million barrels more oil in order to increase its buffer stock. The government was authorized to buy fuel and petroleum products in order to maintain a timely and sufficient supply. Manila temporarily increased its coal-fired production due to 'energy supply' pressures. The United States granted a 30-day waiver to allow the country to import its first Russian crude in five years this week. Washington also announced a 30-day waiver of sanctions for the purchase of Iranian oil that is already in?sea. The waiver is applicable to oil loaded on any vessel including those under sanctions on or before March 20, and discharged on April 19,
GRAINS-Chicago soyabeans fall in anticipation of Middle East ceasefire
Chicago soybean futures declined on Wednesday. They tracked losses in soyoil due to lower crude oil prices, based on reports that the U.S. was seeking a ceasefire of a month for its war against Iran.
The price of corn and wheat futures also declined.
As of 0325 GMT, the?most active?soybean contracts on the Chicago Board of Trade slipped 0.2% to $11.52-3//4 a bushel. Soyoil dropped 0.8% to 65.21cents per pound. CBOT corn fell 0.7% and wheat dropped 6%, to $4.59-1/2 per bushel.
The oil prices fell more than 5% on Wednesday, as a result of reports that the U.S. had sent Iran a plan in 15 points to end their war.
Brent crude futures were down $6.21 or 5.9% to $98.28 per barrel at 0058 GMT after falling to as low as $97.57. U.S. West Texas Intermediate crude futures fell $4.67 or 5.1% to $87.68 per barrel after dropping as low as $86.72.
The price of grains and oilseeds has tracked crude oil fluctuations during the conflict. This is due to the use corn and soyoil for biofuels, and the interest investors have shown in these crops as a hedge against inflation.
Brazil's soya exports to South America in March dropped by 17.9% compared with the average for the entire month of last year.
During the rally caused by the Iranian Crisis, the wheat export price in?Russia, a major grain supplier, remained at a level that was 'nearly three weeks highsreached. Analysts have raised their March shipment forecasts due to accelerated exports.
The Russian government, which controls up to 40% of global ammonium nitrate trade, announced on Tuesday that it would stop exports for a month, until April 21, in order to ensure a sufficient supply of fertilizer during spring planting season.
From disruptions in Gulf shipping to sharply increased gas prices, the impact of the 'war' on fertilizer markets could have knock-on effects for crop production.
(source: Reuters)