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Japan's SMBC will take 20% of India's Yes Bank
SumitomoMitsui Banking Corp. (SMBC), a Japanese lender, has signed a definitive deal to acquire a 20% stake of Indian private lender Yes Bank. This is the largest cross border merger and acquisition in India's finance sector. Sumitomo Mitsui Financial Group released a statement saying that the total value of this deal is 134.8 billion yen ($1.58 billion), which includes SMBC purchasing shares from eight current shareholders. SMBC is a subsidiary of Sumitomo Mitsui Financial Group, and the second largest bank in Japan. Cross-border banking deals are rare in Indian banks due to restrictions on ownership, capital requirements and the state's dominance of the sector. The last major deal was a takeover by Singapore's DBS Group of the troubled Lakshmi Vilas Bank in 2020. SMBC’s purchase of a stake in Yes Bank will make the bank the largest shareholder. It is also the latest overseas acquisition of a Japanese financial organization as it looks to find new growth sources after years of low interest rates and a shrinking population at home. Nomura, the investment bank, acquired Macquarie Group’s U.S. public asset management business and its European counterpart for $1.8 billion last month. In December of 2012 Nippon Life Insurance became a fully-owned subsidiary of Bermuda-based Resolution Life for approximately $8.2 billion. Yes Bank announced in a filing to the stock exchange that SMBC would acquire a stake of 13.19% from State Bank of India (also its largest shareholder) and an aggregate of 6,81% from Axis Bank Bandhan Bank Federal Bank HDFC Bank ICICI Bank IDFC First Bank Limited Kotak Mahindra Bank. SBI owns a 24 percent stake in Yes Bank as a result the restructuring led by the regulator in March 2020. Together, ICICI Bank (ICICI Bank), HDFC Bank (HDFC Bank), Kotak Mahindra Bank (Kotak Mahindra Bank), Axis Bank, and Life Insurance Corporation of India hold 11.34% of Yes Bank. Yes Bank stated that the transaction is subjected to approvals by the Reserve Bank of India (RBI), Competition Commission of India (CCI) and the shareholders of the Bank. Prashant Kumar, CEO of SMBC, said that the investment was "a pivotal step for our next phase in growth". Yes Bank reported that JPMorgan and Jefferies were the financial advisors for SMBC. This week, it was reported that SMBC had reached an agreement with Yes Bank on the acquisition of a stake. The central bank had also verbally approved this deal. The shares of Yes Bank have gained nearly 10% this year. $1 = 85.3990 Indian rupees (Reporting and editing by David Goodwin and David Evans in Tokyo and Siddhi Nyak in Mumbai)
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UK's National Statistician Resigns Due to Ill Health
The British Statistics Authority announced on Friday that Ian Diamond had resigned due to health problems. Emma Rourke will take his place until longer-term arrangements are made. Diamond stated in a press release that he had made the difficult decision to step down from the position of national statistician due to his ongoing health problems. He felt that now was the time for someone else to take over the mantle. Diamond's resignation is at a challenging time for the Office for National Statistics. The Office has been criticized for its poor quality labour market statistics, which provide crucial information for policymakers in the government and Bank of England. Last month, the UK's statistic regulator stated that other countries did not have the same problem. It also told the ONS to concentrate its limited resources on numbers of the highest importance. The ONS has been the subject of a government inquiry. (Reporting and writing by William James; editing by Andy Bruce, Kate Holton, and Sam Tabahriti)
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China launches campaign against critical mineral smuggling
China launched a special crackdown on the smuggling strategic minerals. Beijing is seeking to enforce its export restrictions on metals used for industries from defence to clean power. According to a Friday statement by the Ministry of Commerce, since China has imposed export controls on metals like gallium, germanium and antimony as well as tungsten, some overseas companies have "colluded" with domestic lawbreakers to avoid the restrictions. The campaign was announced during a conference held in Shenzhen. It urges departments of the government to focus on typical evasion techniques such as false reporting and concealment, smuggling and trans-shipment via third countries. In March, Hong Kong authorities seized an antimony cargo under an ordinance which can be applied to exports of controlled items that do not have a license. The seizure was not explained. Last year, China exported 3.9 millions kg of antimony, both wrought and unwrought. However, since September 2009 when export controls were implemented the shipments have almost completely stopped. According to Chinese customs, as of early April the only export had been a 20,000 kg cargo sent to Japan in January. (Reporting and editing by Beijing Newsroom)
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Sibanye increases Finland lithium project estimate to $880 Million
Sibanye Stillwater announced on Friday that it has increased the estimated cost of its Keliber Lithium project in Finland to 783 millions euros ($880,000,000), mainly because of additional regulatory requirements and a change to the scope. The Johannesburg-based firm owns 79.8% the Keliber Project, which will produce at least 15,000 metric tonnes of battery-grade Lithium annually for 16 years starting in 2026. Sibanye stated in an update that the revised total capital for development or construction of the project up to the hot commissioning phase of the refinery has increased from 783 million to 116 million euro. Sibanye said that a total of 508 millions of euros would have been spent by the end March 2025 on the project. The Keliber project's capital expenditure forecast has been raised to 300 million Euros from 215 millions euros. Sibanye announced in August that it had obtained 500 million Euros of debt financing, partially funded by the European Investment Bank to bring the Keliber Project into production starting 2026. Sibanye stated that construction of the project was "well advanced" and the refinery would be operational in the first quarter 2026. Sibanye has recently expanded its portfolio, adding metals like lithium to the mix. These metals are crucial in developing clean energy technologies, as part of a global push to combat climate change.
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Iron ore prices rangebound due to slow demand and ahead Sino-US trade talks
Investors weighed the prospects of an easing in Sino-U.S. tensions with the seasonal weakness in demand from China, which is the top consumer. The September contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.57% lower, at 696 Yuan ($96.06), a metric tonne. This marks a 1.2% drop this week. As of 0740 GMT the benchmark June iron ore traded on Singapore Exchange was 0.65% higher at $97.15 per ton, bringing its overall increase this week to 1.5%. The United States announced details of a new trading agreement with Britain. President Donald Trump predicted that the punitive U.S. Tariffs of 145% on Beijing would also likely be reduced, the latest indication of a softer tone between the superpowers. Analysts and traders remained cautious ahead of the Sino - U.S. discussions scheduled for this weekend. Analysts said that while near-term ore consumption remained strong, signs of a weakening steel downstream consumption threatened to limit any potential upside. A survey by Mysteel revealed that the average daily hot metal production - which is typically used to gauge demand for iron ore - increased 0.1% week-on-week, reaching 2.46 million tonnes on May 8. This was the highest level since October 2023. Imports of iron ore from China rose by 9.8% between March and April, reaching their highest level since December. Improved margins encouraged mills book more seaborne shipments. Coking coal and coke, which are used to make steel, also lost ground. They fell by 1.79% and 2.0%, respectively. The benchmark steel prices on the Shanghai Futures Exchange have fallen. Rebar fell 1.63%, while hot-rolled coils dropped 1.34%. Wire rod fell 2.1%, and stainless steel edged down 0.16%. ($1 = 7.2451 Chinese Yuan) (Reporting and editing by Sherry Jackson, Lewis Jackson and Amy Lv)
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Nippon Steel reports a 43% drop in profit and says it will cooperate with the review of US Steel's bid
Nippon Steel forecasted a 43% drop in net profit in the current fiscal year due to a worsening business climate and increased tariffs. It also said that authorities in the U.S. are still reviewing the bid it made to purchase U.S. Steel. The largest Japanese steelmaker, Japan's largest steelmaker, estimated its profit for the fiscal year ending March at more than 200 billion yen (about $1.4 billion). This is a 36% decrease on the previous year's 350.2 billion yen, but still higher than the average analyst estimate of 334.3 billion yen compiled by LSEG. In a recent earnings report, Nippon Steel said that the trend of tariffs in the United States is unpredictable and the indirect impact it may have on the company could be huge. It said that the direct impact of this is unlikely to be significant, as small-volume exports are difficult to substitute. The $15 billion offer by Nippon Steel for U.S. Steel that was rejected by the former U.S. president Joe Biden is being reviewed. Nippon Steel announced on Friday that both parties are "taking all necessary steps" to close the transaction, but there is no guarantee. Donald Trump, the U.S. president who assumed office for a second time on 20 January, began his tenure by saying that he "wouldn’t mind" Nippon Steel buying a minority stake of U.S. Steel. This scenario would require a major overhaul of the deal structures. Trump instructed the Committee on Foreign Investment in the United States to review the foreign investment to assess the risk to national security. Nippon Steel "fully cooperates with the review process in order to obtain approvals," said the Japanese steelmaker on Friday. Speaking to reporters Friday, Vice Chairman Takahiro Muri said that he expected CFIUS would make a recommendation to Trump on the deal by May 21, and that the president will decide whether or not to approve the deal by June 5.
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China opens gold ore blending business at Yantai
China, which is the largest consumer of gold in the world, has blended for the first-time different gold-containing ores, according to Xinhua, a state news outlet. This was done as part of an effort to guarantee a stable supply of gold and reduce costs for refiners. In the Pilot Free-Trade Zone, the "bonded gold blending", also known as bonded logistics, is the mixing of ore containing gold under different customs code in a physical manner. Qingdao Customs announced in an April 30 statement that on April 27, 279 tons of gold concentrates were mixed with 28 tons of precious metal ore containing gold. The blended products then went to domestic refiners of gold. Ma Hongwei of Yantai Port's production business department was quoted in a statement as saying that the mixing of gold-containing ore at home would reduce logistics costs more than 30%. A source familiar with this situation revealed that blending gold ore and concentrates in China was previously prohibited and that imports were required to meet certain standards. Gold is in the spotlight this year with its record-breaking price rise, fueled by a growing demand for safe havens amid rising uncertainty fueled by U.S. president Donald Trump's tariff increases. This week, it was reported that China's central banks has approved the purchase of foreign currency by certain commercial banks in order to pay for imports of gold under newly increased quotas. Official data released by the People's Bank of China on Wednesday showed that the central bank of China added gold to its reserve in April, for the sixth consecutive month. The first quarter of 2018 saw a 35.1% increase in gold-containing ore imports via Yantai, with 158,000 metric tonnes. This represents more than 20% the total country's imports. The "bonded-gold-blending" will increase imports of ore containing gold in Yantai by at least 5%.
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China's steel exports in the first four months of 2018 are at a record high, despite tariff tensions
China's exports of steel in April exceeded 10 million metric tonnes for the second consecutive month, bringing the total over the first four-month period to a new record high. This was largely due to the fact that shipments were made ahead of the hefty tariffs announced by U.S. president Donald Trump. Customs data released on Friday showed that the world's biggest steel exporter and producer shipped 10,46 million tons last month. Exports were up 13.5% from the same period in 2024, despite being largely unchanged since March. Exports between January and April increased by 8.2% compared to the previous year, reaching a record high of 37.89 millions tons. "Steel Exports in April were a little higher than we expected, but still maintained positive annual growth. This was supported by the sustained front-loading of orders observed," Jiang Mengtian said, an analyst based in Shanghai at Horizon Insights. Jiang predicted that May shipments would slow down as tariffs and trade protectionionism began to bite. Washington's tariffs are threatening the transshipment business, in which third countries resell Chinese Steel to the U.S. Meanwhile, China's biggest steel customers, like South Korea and Vietnam, have also imposed duty to prevent steel from being rerouted or dumped on their markets. Eight analysts and traders said earlier this week that second-quarter exports could fall as much as five percent from the first quarter. IRON ORE Imports of iron ore from China in April rose by 9.8% compared to March, reaching their highest level since December. Improved margins prompted mills to book additional seaborne cargoes. Last month, the world's biggest iron ore consumer imported 103.14 millions tons of this key ingredient for steelmaking. This is up from a low of 93.97 in March. The volume of last month was 1.3% more than the 101.82 millions tons in April 2024. Pei Hao is an analyst with international brokerage Freight Investor Services. The data revealed that China's imports of iron ore fell 5.5% in the first four month of this year compared to the same period last year. They reached 388.36 millions tons. (Reporting and editing by Amy Lv, Lewis Jackson)
Gold soaring past $3,200 as dollar falls, gold flows
Gold broke the $3,200/oz key level for the very first time on Friday to reach a new high. This was fueled by the weakening dollar and the escalating global trade war, which sent investors running towards safe-haven assets.
As of 0230 GMT, spot gold was up 1.3% to $3,216.48 per ounce. Bullion reached a record high of $3,219.73 in the early session, up over 5% on the week.
U.S. Gold Futures rose 1.9% to $3236.00.
The rapid depreciation of the U.S. Dollar seems to be driving gold's recovery at this time. This seems to be a reflection of an ongoing exodus away from USD-based assets. Stocks and bonds are falling amid uncertainty over tariff policies, said Ilya Spirak, global macro head at Tastylive.
Dollars dropped, lowering the price of greenback bullion for foreign buyers.
Major stock indexes fell as well after U.S. president Donald Trump increased tariffs on Chinese goods to 145%. However, he paused for 90 days on tariffs previously announced against dozens of other countries.
China has matched each of Trump's increases in tariffs with its own, causing fears that Beijing may push tariffs against the U.S. above the current 84%.
"$3,500 will be the next number that people are looking at." Kyle Rodda, Capital.com financial analyst, said that he believes we will not reach our goal immediately or without any bumps.
The metal's rise this year was also fueled by central bank demand and expectations of rate cuts from the Federal Reserve. Geopolitical unrest in the Middle East, Europe and the Middle East, as well as increased flows into exchange-traded gold funds, were also factors.
Data showed that U.S. consumer price fell in unexpectedly, but inflation risks are on the rise.
The traders now bet on the Fed cutting rates again in June, and most likely by an entire percentage point before the end of 2025.
Platinum fell 0.4%, to $934.20. Spot silver declined 0.2%. Palladium increased 0.7% to $914.70. (Reporting and editing by Sumana Nandy, Sherry Jacob Phillips and Anushree mukherjee from Bengaluru)
(source: Reuters)