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Elliott, a fund that advocates for corporate governance, is invited to Japan's top business lobby by the Japan Business Lobby
Keidanren Japan's largest business lobby has invited Elliott Investment Management, an activist investor, to a private meeting on March 5, to discuss corporate governance issues. This was revealed in a notice to member firms. Elliott has recently been active in Japan, taking stakes in large companies like Toyota Industries, Tokyo Gas and Kansai Electrical Power. They are all members of the lobbying group. This rare meeting highlights the growing influence of shareholder activist in Japan. Keidanren is a corporate pillar that seeks to have a direct dialogue with the most powerful hedge fund in the world. A portfolio manager for Elliott's Japanese equity investments is expected to present the fund's approach to engagement and investment strategy, followed by a "frank exchange of opinions," according to the report. Keidanren's notice stated that it was important to "deepen our understanding" of activist investors and their investment policies. Keidanren confirmed that the meeting was planned in response to an inquiry for details, but refused to provide any further information. Elliott was not immediately available for comment. Recent governance reforms, regulatory demands for better capital efficiency and undervaluation of the stock market have increased its appeal. IR Japan reports that 75 activist firms will be operating in Japan by 2025. This figure has steadily increased from?10 back in 2015. By 2025, the amount of investment by activist firms in Japanese stocks will reach 13 trillion yen (84 billion dollars), as they target more large blue-chip companies, including many Keidanren members. Keidanren is concerned that the focus of some shareholders on short-term profit could discourage long-term investment in growth and lead to uniform demands which do not reflect the specific conditions of a company. Keidanren, in its policy proposals submitted to the government last December, said that companies should distribute value to a wide range of stakeholders including employees, partners, and local communities rather than only shareholders. The government plans to revise corporate governance code in this year. $1 = 154.7600 yen (Reporting and editing by Clarence Fernandez; Makiko Yamazaki)
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Copper continues to decline after reaching a record high, as investors switch to risk-off positions
Copper prices continued to fall on Monday, for the second consecutive session. Investors were in a risk-off mood after Kevin Warsh was?nominated as the new Fed Chair. Demand also remained low?as China prepared to celebrate the Lunar New Year. As of 0330 GMT, the?most active copper contract at the Shanghai Futures Exchange fell 7.60%, to 100,110 Yuan ($14401.00) per metric ton. The benchmark copper for three months on the London Metal Exchange fell 2.73% to $12,798 per ton. After hitting record highs in both Shanghai and London on Thursday, copper is now taking a hit. This was due to speculative buying sprees. The decline is part a wider sell-off of metals, led by gold and silver as investors unwind after a record-setting rally in speculative markets. This comes as U.S. president Donald Trump nominated Kevin Warsh on Friday as the next Chair of the Federal Reserve. A former Fed Governor seen as less likely to push for 'aggressive rates cuts. After Warsh's nomination, the U.S. Dollar has stabilized and consolidated gains. The dollar's rise makes commodities priced in greenbacks less affordable to investors who use other currencies. Copper, along with other industrial metals is also under pressure due to the weakening demand in the lead-up to the Lunar New Year holidays starting on February 15 in China's top consumer market. Yangshan Copper Premium After a drop in copper prices, the metric for Chinese consumers' appetite?for imported material rose to $27 per ton, though it is still low when compared to its previous high of $40. Tin led the way in the sale of other base metals. The most traded contract in 'Shanghai hit its limit to fall by 11%, to a price of?392,650 per ton. Benchmark London Tin dropped 6.93%, to $48,355 per ton. Tin's Drop is Squeezing Out Previous Bubbles,? Traders said. Other metals on SHFE fell by 6.64% in aluminium, 5.64% in zinc, 1.61% in lead, and 8.09% for nickel. Aluminium fell by 2.40% on the LME, while zinc dropped by 2.88%. Lead also declined, while nickel fell by 3.92%.
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China steel mills restock after a rise in stocks, iron ore prices fall
Iron ore futures fell on Monday, as Chinese inventories increased and steel mills finished restocking. Meanwhile, feedstock demand is expected to remain slow ahead of the Lunar 'New 'Year. As of 0257 GMT, the?most-traded contract for May iron ore on China's Dalian Commodity Exchange fell by 0.63% to $788 yuan (US$113.37) per metric ton. The benchmark March ore traded on the Singapore Exchange fell 0.42% to $103.35 per ton. Steelhome, a consultancy firm, released data on January 30, showing that iron?ore stocks at major Chinese ports increased by 1.16% in a week. A note from the Shanghai Metals Market stated that 80% of the surveyed steel mills had finished restocking and that inventories of finished steel products were also accumulating. This indicates a weakening of iron ore demand. The note stated that due to environmental protection restrictions, Hebei blast furnaces may reduce hot metal production. A note from Mysteel stated that the end-user demand for products and transactions will be slow in the run up to Chinese Lunar New Year. The note said that the support for steel prices will depend on how quickly activity can be resumed after the holiday, and the accumulated inventory can ingested. An official survey released on Saturday showed that China's factory production?fell in January due to weak domestic demand at the beginning of the year. A private sector survey published on Monday showed contrasting results. It claimed that factory activity increased in January as export orders recovered and output growth was accelerated. Coking coal and coke, which are both steelmaking ingredients, have also lost ground. The benchmarks for steel on the Shanghai Futures Exchange fell. Rebar fell by 1.24%, while hot-rolled coils dropped by 0.91%. Wire rod also lost 4.57%, and stainless steel was down 0.37%.
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Sources say that the US is pitching Venezuelan crude oil to India, as Russia's oil imports are slowing.
Three sources with knowledge of the situation have confirmed that the United States has informed Delhi that it can resume these 'purchases' soon to help replace Russian oil imports. India promised to cut its Russian crude oil purchases following Washington's tariff hikes on this activity. India is also on track to reduce its Russian oil imports in the coming months by several hundred thousands barrels per day, according to sources who declined to identify themselves. In March 2025, President Donald Trump imposed a 25% tariff on countries that bought Venezuelan oil. His administration also intensified its campaign against Venezuelan president Nicolas Maduro who was captured by U.S. troops on January 3. Washington has since then?begun to direct the Caracas Government and plans on controlling Venezuela's Oil Industry indefinitely. Washington is also trying to reduce Russian oil revenues which are funding the Ukraine war. Sources did not specify whether Venezuelan oil will be sold by Vitol or Trafigura, or directly by Venezuelan state oil company PDVSA. The White House as well as the U.S. Treasury Department refused to comment. The Indian oil minister and the foreign ministry did not reply to emails asking for comment. India has become a major purchaser of Russian oil since the 2022 invasion of Ukraine by Russia triggered Western sanctions which drove its price down. Last week, Indian Oil Minister Hardeep Singh Puri said that India is diversifying their crude sources as Russian oil imports decline. Two sources claim that India is planning to reduce its Russian oil imports below 1 million barrels of oil per day in the near future. One of these two sources stated that they are expected to decline to around 1 million bpd by February, and to 800,000 in March. Second of two sources, said that these imports will eventually decline to around 500,000-600,000.?bpd. This would help the nation to clinch a deal with the United States. In August, U.S. Tariffs on Indian Goods reached 50% as Washington added an additional 25% tariff for purchases of Russian Oil. Indian refiners were forced to import more oil from other countries due to the Western sanctions. Trade sources reported that India's Russian oil 'imports' fell to the lowest level for two years in December. This boosted OPEC share of Indian imports by 11 months. Indian refiners are buying more oil in Middle Eastern, African and South American nations to compensate for the drop in Russian oil exports. Hindustan Petroleum and the private refiners HPCL and Mittal Energy Ltd. have stopped purchasing Russian oil. Reliance Industries will begin buying up to 150,000 barrels per day of Russian oil in February, according to a source within the company. Officials at the India Energy Week this week stated that Indian Oil Corp. and Bharat Petrol Corp. have also slowed their purchases of Russian crude oil. (Reporting and editing by Richard Valdmanis, Cynthia Osterman and Nidhi verma)
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Capstone Copper, a Canadian company, restarts Chile's Mantoverde Mine while the strike continues
Capstone Copper Corp. resumed its operations at the Mantoverde Copper and Gold Mine in northern Chile despite a strike by a union that represents nearly 22%. In a filing to the Australian stock exchange dated 1 February, the company reiterated that it expected to continue operating at a level of 50% to 75% normal production throughout this strike. The shares of Capstone Australia listed depositary receipts fell as much as 4.5 percent to A$15.810 per day, their lowest levels since January 23. The decision to resume operations was made following a Chilean Court ruling that authorized the removal of striking workers last week from a desalination plant, which supplies water to the mine. This is a vital resource for the day-today operations. Strike began In January, after the negotiations with Union No. 2 of Mantoverde broke down. The latest offer of payment from the company was rejected by the unionized workers, leading to the current impasse. Capstone stated that it is open to dialogue with the union in order to resolve the dispute. Union No. Union No. The union is leading the strike. The main conflict is centered on Mantoverde’s desalination facility on the coast, about 40 km (25 miles), from the mine. The company reported on January 18 that individuals had entered the desalination plant, interfering in the electrical system of the?plant and causing a disruption in the water supply. The mine was forced to use its own reserves and halt certain operations, including the sulphide-processing. It warned that further closures may occur if this situation persists. Chile is the world's largest copper producer. Grabber Santiago has been forced to consider "unprecedented" water rationing due to the deepening droughts. Water shortages are intensifying tensions between miners, who traditionally depend on water sources from the continent like rivers, lakes and reservoirs. Mantoverde will produce 62,308 tonnes of copper concentrate in 2025 and 32,807 tonnes of copper cathodes. This is about 0.4% global production. Capstone holds 70% of Mantoverde and Mitsubishi Materials the other 30%. (Reporting and editing by Diane Craft, Chris Reese and Kumar Tanishk from Bengaluru)
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Washington scolds Cuba for booing US diplomats
On Sunday, the United States accused Cuba of interfering in the work of their top diplomat at Havana after small groups of Cubans laughed at him outside the capital during meetings with residents and church representatives. On social media, the State Department accused Cuba of using "failed intimidation techniques" and demanded that Havana cease "sending individuals who interfere with diplomatic work of the United States." Charge d'Affaires Mike Hammer. The tension between the two long-time enemies has increased after U.S. president Donald Trump declared Cuba an "unusual and extraordinary threat" against the national security of the United States and announced he would impose a?tariff on any country supplying oil to the communist Caribbean island. Trump said on Sunday that Cuba was "a failing nation", but added, "I think we are going to make a bargain with Cuba." Hammer is a career diplomat, who arrived in Cuba late in 2024. He has travelled the island extensively to "meet" with Catholic Church representatives, political dissidents and other people. The Cuban government accuses Hammer of trying to foment unrest. He posted a video on Saturday describing an alleged incident of harassment after a meeting with church leaders in the area. Hammer, in a video posted on social media, said: "When I left my parish, some communists shouted at me obscenities, probably frustrated by the poor state of the revolution." Then, several videos were released showing groups of people taunting Hammer with cries of?Assassin! "Imperialist" and "Assassin!" Cuban government has not made any comment on the videos. Cuba's Foreign Ministry complained last year to Hammer over his "interventionist" behavior. They claimed he had incited Cubans into committing crimes and attacking the state. The U.S. Embassy, which produces the videos, has denied these charges and said Hammer is simply doing his job. Embassy, the company that produces these videos, denies those allegations and claims Hammer is just doing his job. Since Fidel Castro’s 1959 revolution the two neighboring countries had been at odds. But a crippling economy crisis on the island, and increased pressure from the Trump Administration have brought the conflict to an end. (Additional reporting from Trevor Hunnicutt, Palm Beach, Florida. Editing by Cynthia Osterman.)
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Two things OPEC+ cannot control. Russell: Trump and China imports
Two factors are largely outside the control of OPEC+, and are likely to influence the price of crude in the coming 'weeks. First, whether U.S. president Donald Trump decides to launch a shooting conflict with Iran and whether both sides will be able?to keep oil cargoes flowing and production infrastructure intact. Second, China, which is the world's largest crude importer, will decide whether to ease back on recent imports, given the 16% increase in Brent futures benchmark in January. It was only logical that the eight members with production quotas of OPEC+, given the uncertainty currently gripping the crude oil market, would not make any changes to their policy of production at their Sunday meeting. Eight OPEC+ member countries, who pump around half of the world's crude oil, increased production quotas from April to December 2025 by approximately 2.9 million barrels a day, or roughly 3% global demand. Then, they froze planned increases from January to March 2026 due to seasonal lower consumption. The exporter group is gaining ground in some respects. Prices are rising, but not to the point that they will cause concern about inflation or a slowdown in economic growth for importing countries. Brent crude oil ended the day at $70.69 per barrel, just shy from the six-month peak of $71.89 set the previous day. Media and analyst commentary has also been dominated by the narrative of an oil glut in the market. Instead, the focus is on the reshaping the Venezuelan oil flows after the U.S.-led intervention which led to the capture of President Nicolas Maduro as well as current tensions between Iran and Venezuela. The Iranian situation poses the greatest challenge to OPEC+, since it is not in their interest to see a 'prolonged conflict in the Middle East. Saudi Arabia and other OPEC+ countries can lobby Washington but Trump will likely make his own calculations to determine if he can attack Iran, achieve the goals he wants, and keep oil prices low enough at home to avoid anger from the public and inflation. The risk premium on crude oil will likely remain for the time being until the United States has decided what they are going to do and the possible consequences. CHINA IMPORTS China could reduce its crude imports as a result of the price increase in January. China's arrivals in December reached a record 13,18 million barrels a day (bpd). They are expected to remain robust in January. According to commodity analysts Kpler, seaborne arrivals were 10.4 million, which would need to be increased by about 1 million barrels a day of pipeline imports, for a total of 11.4 million. Brent oil fell to a low of $58.72 per barrel in December 2016, a drop of seven months. China is likely to reduce imports in order to meet its consumption and will not add crude oil to its strategic reserves. China does not disclose flows into or out of strategic and commercial stockpiles. However, it imports far more crude oil than it processes. Add imports and domestic production and subtract refinery processing to calculate China's excess crude. This means that China's surplus crude in 2025 was 1,13 million bpd. While not all this was added to the inventories, this is an indication?that China took advantage of low oil price to absorb much of the anticipated supply surplus. In the past, sharp increases in crude oil prices led to lower imports from China. If this trend continues, it is likely that by April and late March, fewer tankers would arrive at Chinese ports. If China reduces imports by 1 million bpd or more, this would lead to a return of the supply glut talk points. This is especially true if the outcome between the United States, Iran, and other countries does not affect crude shipments, infrastructure, and so on. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Portugal announces $3 billion package for rebuilding after Hurricane Kristin
Luis Montenegro, Portugal's Prime Minister, said that the government of Portugal approved a package of 2.5 billion euros ($3.0 billion), which includes loans and incentives to help people and businesses recover from the destruction caused by Storm Kristin. Authorities said that Storm Kristin, which swept across central mainland Portugal on Wednesday morning, caused damage to homes, factories, infrastructure and even killed six people. Montenegro announced that Banco de Fomento, the country's public bank, will launch a loan program of 1 billion euros to rebuild storm-damaged factory buildings not insured and a 500 million euro financing scheme for them. Montenegro said the public bank Banco?de Fomento will launch a 1?billion euro loan programme to rebuild uninsured storm-damaged factories and?a 500 million euro financing scheme for them to help with their immediate cash flow needs. The remaining 1 billion euro in aid is divided into two categories: a line of financing to help rebuild primary homes that are not insured, covering up to 10,000 euros for each house; and social'security' subsidies to individuals who face?hardships or income losses, up to 537 euro per month per person, or 1,075 euro per family. He stated that due to the "current extraordinary circumstances", all construction work would be exempted from licenses and approvals prior to urban planning, environmental, and administrative approvals. He said, "We will mobilise all of our resources to manage the emergency in a responsible manner, but with hope...once more, we will rebuild Portugal," at a recent press conference. Montenegro announced that the government extended the "states of calamity", declared in 60 hard-hit municipalities, until February 8 amid forecasts for more heavy rains and flooding, despite winds expected to ease. The state of calamity, Portugal's highest civil protection alert for major disasters, allows authorities to mobilize emergency and armed services and to fast-track procurement and limit access to the affected areas without restricting constitutional rights. The companies reported that nearly 180,000 households remained without power on Sunday as the grid operator REN, and distributor E-Redes, scrambled for power restoration. ($1 = 0.8444 euros) (Reporting and editing by Hugh Lawson; Sergio Goncalves)
New green steel firms could enjoy benefits as EU carbon tariffs loom
On Thailand's eastern coast, strategies are underway to develop an electric arc heater that will provide green steel to Europe and benefit from controversial brand-new guidelines that will require buyers to pay tariffs on highcarbon imports.
Federal governments and market associations in Asia have lobbied ferociously against Europe's Carbon Border Change Mechanism ( CBAM) and it could cast a shadow over COP29 environment talks in Baku, Azerbaijan, next week, with China and others calling for an end to green trade barriers.
CBAM was created to stop European companies averting carbon compliance expenses by sourcing commodities from regions with laxer ecological rules. Officially released in 2023 as part of the European Green Deal, it will force importers to purchase credits to cover the emissions of the steel, aluminium, cement, electricity and chemicals they buy from outside the EU.
From 2026, CBAM will start imposing levies on steel production, a sector responsible for around 7% of worldwide carbon dioxide emissions, and the levies will be completely phased in by 2034.
But while CBAM might price some makers out of Europe, it will make cleaner however more expensive innovations more competitive and open the market for companies like Meranti Green Steel, which is constructing the Thai plant.
We see (CBAM) as an opportunity, Meranti's president Sebastian Langendorf told Reuters. We do think that brand-new, focused green steel gamers have an advantage: we have no CO2 tradition.
The EU imported 16 million tons of finished steel products from Asia in 2023, with mills from South Korea, Japan, Taiwan, China, India and Turkey competing in a highly price-sensitive market.
CBAM has helped turn low-carbon production into a market. differentiator, said Antonio Della Pelle, senior operations. manager at the World Bank's International Finance Corporation,. which is investing $60 million in a green steel plant in. Indonesia.
TWO-TIER MARKET
Singapore-headquartered Meranti is investing $2 billion in a. 2.5 million metric ton-per-annum electric arc heater in the. Thai city of Rayong that will begin producing greener steel in. 2028.
As much as 70% of its products will be exported to Europe in the. initially stage, and it has actually currently signed 6 EU-focused offtake. agreements, Langendorf stated.
Emissions at the plant are expected to stand at around 600. kg per ton of steel, considerably lower than the 2,000 kg from. coal-fired blast heating systems. Utilizing current carbon prices, that. might represent a 100 euro ($ 107.80) distinction per lots of steel. in the CBAM levy.
Meranti anticipates to take advantage of a European green steel. supply space most likely to surpass 20 million lots by 2030-- in addition to. a green premium as high as $300 per ton - with increasing carbon. costs forcing old European blast heating systems to close.
Developed gamers are likewise ramping up their green steel. abilities, including Indian steelmaker JSW, which. is preparing a 4 million ton per year plant at Salav on the. country's western coast.
Clearly the CBAM and carbon tax guidelines that are. coming somewhere else are accelerating our choices, said Prabodha. Acharya, JSW's chief sustainability officer.
As soon as CBAM tariffs hit their optimum in 2034, JSW intends to. produce all its exports to the EU in heating systems powered by. renewables and using recycled scrap as feedstock, he stated.
However unlike Meranti, just a small proportion of JSW's overall. output will be produced by lower-emission plants, and critics. alert CBAM is developing a two-tier market enabling giant mills. to produce green steel for Europe and filthy steel for everyone. else.
Advocates of CBAM argued that as well as tackling carbon. leak, it would also help motivate the decarbonisation of. industries abroad, but under a two-tier market, companies might video game. the system, developing only a minimal amount of green capacity. simply to serve Europe.
The two-tier loophole would narrow once CBAM-type regimes. are introduced elsewhere. Britain is currently set to implement. its own carbon tariff system in 2027, and Australia, Canada. and the United States are considering comparable relocations.
The EU has actually also assured to assess the effect and extent of. such resource shuffling in a review of CBAM to be delivered to. the European parliament before January 2028.
TAKING ACTION
Though nations continue to grumble about CBAM, they are. also acting to minimise its impact and even gain from. it.
According to a Reuters analysis of Global Energy Display. ( GEM) data, China now has 18 electric arc furnaces (EAFs) under. construction, with overall extra capability of 18 million heaps. A lot of are replacing higher-carbon plants, including blast. furnaces. 2 will be powered totally by solar panels.
By contrast, South Korea is constructing one, and Japan none,. which might discuss why steelmakers from the two nations have. been more vocal in their opposition to CBAM, according to. InfluenceMap, an organisation that tracks lobbying activity.
Although it opposes CBAM, China has acted to assist. firms abide by the scheme's disclosure requirements. The. expansion of its carbon market to include steel and other. products, a surge in sustainable capability, in addition to skyrocketing. scrap recycling rates, could likewise help reduce China's direct exposure.
With around a quarter of its steel exports now going to. Europe, India is also building 6 new EAFs with more than 6. million lots of capacity, according to GEM data.
In a sign that Indian businesses are pertaining to terms with. CBAM, the Associated Chambers of Commerce and Industry of India. stated in August that it was an opportunity to develop stronger. climate policies and guarantee long-lasting competitiveness.
We understand that taxes on carbon will increase, Europe. may be the maximum however there will be taxes everywhere -. tomorrow, in Australia, the UK, Canada, India, stated JSW's. Acharya. We accept that it is a reality..
(source: Reuters)