Latest News
-
Valterra Platinum Flags' first-half profits fall for South Africa
Valterra Platinum, a South African company, expects to see its first-half profit fall by up to 88% as a result of lower sales and output as well as special costs relating to the demerger with Anglo American Plc Group. Valterra, previously Anglo American Platinum said it expected headline earnings of between 800 million rand to 1.6 billion rand (44.97-$89.94) for the six months ending June 30. This is down from 6.5 billion in the same period the previous year. The company reported that the sales of platinum group metals (PGMs) fell by 25% following heavy rain and flooding at Valterra’s Tumela Mine within its Amandelbult Complex. Demerger costs totaled 1.4 billion rand in the first half. Valterra separated from Anglo Mining in June. It is now listed separately in Johannesburg and London as the global mining company restructures to focus primarily on energy metal copper. Valterra stated that cost savings of approximately 2.1 billion rands helped offset the declines in earnings during the period. The company's refined production guidance for the year of 3,0 million to 3.4 million PGM-ounces remains unchanged. Valterra will announce its half-year results on the 28th of July, its first as an independent company. Reporting by Nelson Banya, Editing by Elaine Hardcastle.
-
Sources say that India will issue climate risk disclosure regulations for banks within the next few months.
Three sources familiar with the situation said that India's central banks is nearing finalising regulations for banks and financial institution to disclose and manage climate change risks. This move is in direct opposition to the actions of several major global banks, including JP Morgan Citibank Morgan Stanley, and HSBC. These banks have scaled back their climate commitments following Donald Trump's re-election as U.S. president, a climate-sceptic. Global efforts to transition to a low carbon economy are centered on gaining a better understanding of the money flowing into green investments. Countries from the UK to Japan have made such disclosures compulsory. Sources said that the Indian central bank norms have been in development since 2022. They are expected to require banks and financial institutions, to disclose regularly climate-related risks within their loan portfolios as well as mitigation strategies and goals. Disclosures will likely be voluntary from the fiscal year of 2027, and mandatory starting in fiscal year 2028. India's fiscal year runs from April to March. Sources said that banks will be required to perform periodic stress tests in order to assess the impact adverse climate events, such as heatwaves, floods and cyclones, have on borrowers and on the economy. This is based on an advisory note, which the central banking institution is likely to release soon. The three sources have requested anonymity because they are not authorized to speak to media. The RBI didn't respond to an email sent by. It has never been reported that the central bank decided to implement new rules. Reserve Bank of India had previously acknowledged climate change as being a major source of financial concern. In February 2024, a draft disclosure framework was released for public feedback. The first source stated that "the central bank's signal based on the recent meetings is the detailed norms have almost been finalised and will be expected very soon." Source: Many banks have already begun collecting data and setting goals to meet disclosure standards. Public documents show that some large banks have invited bids from climate consultants who can help with disclosure. Assessing Borrowers for Climate Risk The RBI has decided to proceed with the climate disclosures required by its banks, shortly after India published a draft framework designed to facilitate a greater flow in resources to climate-friendly industries. India is also preparing to announce a new national target for reducing emissions ahead of the November round of climate talks in Brazil. India, behind China and the United States as the third-largest polluter in the world, aims to reach a net-zero emissions target by the year 2070. According to draft standards, as part of central bank climate disclosure rules banks will have to calculate the gross emissions of their borrowers, and then disclose this information based on asset classes and industries. Financial statements are required to include such disclosures. Separately the central bank also shared with large banks a 52-page note, which a copy has been reviewed. The note prescribes a method to forecast and analyze the impact of adverse weather events, as well as the transition risks, on the ability of borrowers to repay their loans. According to the note, transition risks arise from changes in consumer behaviour, policies and technologies as the world moves toward a low carbon economy. Banks are preparing to reveal climate risk in their loan portfolios but do not expect this disclosure to have an immediate impact on loan pricing. The second source is a banker from a state-owned lending institution. (Reporting and editing by Ira Dugal, Kim Coghill, Ashwin Manikandan)
-
Thames Water crisis prompts UK water reforms
On Monday, Britain will announce measures to fix the broken water sector. Thames Water is on the verge of collapse and needs to "reset" its regulations to avoid nationalisation. The biggest water company in the country has been fighting to survive for 18 months. If the company fails, the government will have to step in and add billions to already stretched public finances. Last year, Britain ordered a review of the privatised water sector in England and Wales. The industry needs massive investments to fix its aging infrastructure and stop sewage spills that angered public. The review is being led by former Bank of England deputy Governor Jon Cunliffe. He has made several recommendations, including a restructuring of regulation to reduce investment risk, combining regulators in order to provide companies with clearer guidance, and new standards for river bathing. In his June interim report, he stated that "water companies need to be more attractive for stable and long-term investors." To attract long-term, committed investors who are willing to invest in the future, we must also lower risks than they currently are. This means, in large part, restoring the confidence of investors and regulators. Thames Water has been offered a rescue package worth approximately 5 billion pounds ($6.7billion) by its creditors. They, along with the company in crisis, are currently in discussions with Ofwat. Ofwat is the financial regulator for the water industry. In return, they are seeking a regulatory reset. This could include flexibility in pollution targets, clemency with penalties, and more time for improvements. Chris Weston, the chief executive of Thames Water, told lawmakers that his company was "extremely under stress and operating in extremely difficult circumstances" following its annual loss of 1.65 billion pounds. Thames Water suffered a major blow in June after U.S. Private Equity firm KKR – its preferred bidder – pulled out of a previous rescue plan. KKR said in a letter to lawmakers published on Tuesday, that regulatory risk was a factor in its decision. It would have not been able "to manage and meet the understanding expectations on the timeline of improvements and risk falling short in front of the public and stakeholder's eyes". Thames Water, with 16 million customers throughout southern England, predicts that it will be facing 1.4 billion pounds of pollution fines and penalties in the next five year. The government is trying to reduce water pollution but it cannot afford to have Thames Water declare bankruptcy. This would put the 17 billion pounds of debt on the government's books at a time that the Finance Minister Rachel Reeves has already come close to violating her fiscal rules. The government has said that it will be keeping a close watch on Thames Water. Steve Reed, the Environment Minister said that his department "stepped up" its preparations for a special administration regime. This is a temporary nationalisation.
-
As prices rise, the discount on ASIA GOLD in India increases.
The gold demand in India was subdued during this week as the near-record high prices discouraged buyers and caused dealers to offer larger discounts to attract them. Meanwhile, rates were also elevated across other major Asian hubs. Indian dealers are offering a discount The discount is now up to $10 per ounce compared to official domestic prices, including 6% import duties and 3% sales taxes. Jewellery stores across the country have seen a decrease in customers. The people aren't quite ready to purchase yet... The people are waiting for prices to drop, said a jeweller in Kolkata. The domestic gold price was around 97.500 rupees per gram on Friday, after reaching an all-time high of 101.078 rupees in the previous month. A Mumbai-based dealer for a private bank said that gold discounts may have increased due to a weakening demand. However, supplies are limited as a result of the sharp drop in imports. India's gold exports fell by 40% in June compared to a year earlier, reaching 21 tons. This was their lowest level for more than two-years, due to a sluggish market. Dealers in China, the top gold consumer in the world, have quoted discounts of up to $10 per ounce on spot prices, down from premiums of between $10 and $25 last week. Due to the summer holidays, I do not see much interest in physical purchases at this time. Peter Fung of Wing Fung Precious Metals, the head of trading, said that you might see a demand increase in October. In Hong Kong, gold Dealers in Singapore sold the product at a premium of $1-$2 Gold sold at a parity with global benchmarks, up to a $2.20 premium. In Japan, bullion The price of the stock fluctuated between $0.50 and $1. Reporting by Brijesh and Anushree Patel in Bengaluru; Rajendra Jadhav, Mumbai; editing by Eileen Soreng
-
Investors suggest alternatives to YPF in dispute between US and Argentina
The U.S. Government sided with Argentina in its effort to temporarily suspend a court order requiring it to turn over its 51 percent stake in the oil and gas company YPF as part of a $16.1-billion judgment won by two investors. In a late-night filing, the U.S. government informed the 2nd U.S. The 2nd U.S. Circuit Court of Appeals stated that it is in the public's interest to resolve the dispute on its merits "free of the rushed compulsion of a non-stayed turnover order, and any negative impact on U.S. Foreign Relations with Argentina." Petersen Energia Inversora, Eton Park Capital Management and other investors urged the Manhattan appeals court, to reject a stay on U.S. district judge Loretta Preska’s June 30, 2013 turnover order, while Argentina appeals. The appeal was likely to fail and Argentina's "strategy" of delaying and obstructing the collection of the $16.1 billion judgement, against which it is also appealing, justifies the turn-over. Investors said that if the court of appeals is not inclined to simply deny the stay, then it should return the matter to Preska so Argentina can propose alternative collaterals or set conditions in order to avoid "irreversible results" during the appeal. The investors' attorneys said that "Plaintiffs do not want to have their shares rendered unrecoverable if Argentina wins on appeal and they are not interested in running an oil firm." They would therefore accept reasonable conditions so the transfer of the shares can be unwound easily if needed. Outside of business hours, Argentina's representatives had no comment to make. Argentina said that it would suffer irreparable damage and its economy might be destabilized if they gave up their stake in YPF - the country's biggest energy company. You have until the 22nd of July to reply to the Investor's filing. Burford Capital, a litigation funding company, represents Petersen and Eton Park. Burford Capital has stated that it expects to receive between 35% and 73% respectively of the damages. The lawsuit arose out of Argentina's decision in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minorities shareholders. Preska will award the $16.1 billion verdict in September 2023. The U.S. Government expressed its position through a proposed friend of the court brief. This echoed a position that it took in November last year during the Biden Administration. Petersen, Eton Park and the U.S. government were said to be against its motion for filing a brief. Reporting by Jonathan Stempel, New York; editing by Raju Gopikrishnan
-
London's unloved shares are attracting foreign investors
The UK stock market is finally reversing its years-long underperformance compared to the rest of Europe. This comes as a result of a UK/U.S. A trade agreement, a softer regulatory environment and cheap stocks are delivering juicy returns which are beginning to attract foreign investors. The FTSE 100 is up nearly 10% in the last year, and has reached record highs, surpassing the STOXX 600 which is up 7.5%. London's blue chip index performed better on a year to date basis than its European counterpart in the last six week, the longest stretch of its kind since the end of 2022 when a weak pound boosted revenues for the export focused FTSE. The financial regulator announced this week that it would roll out new regulations to boost Britain's Capital Markets. Meanwhile, Chancellor Rachel Reeves asked the financial industry for a more positive picture of UK shares to be painted to potential retail investors as she sought new ways to revive an economy in stagnation. Asset managers claim that the UK narrative is changing, and the blue-chip index already looks appealing to foreign investors given the sterling's rally in this year. Justin Onuekwusi is chief investment officer of St. James's Place. He said, "We see signs that big asset allocators are coming back to the UK." He said: "I'm talking about non UK endowments and pension funds as well as asset owners, wealth management firms, who all underweighted the UK after Brexit." The FTSE-100 has risen nearly 18% in dollar terms so far this season, marking the highest dollar-denominated gains since 2009. This compares to a 6% gain year-to-date for the S&P 500 which also reached record highs. The pound is up 7% against the dollar this year as investors flee U.S. assets due to increased policy uncertainty in the U.S. under President Donald Trump. This acts as a drag on FTSE members, 80% whose revenues come from abroad. The index is insulated from the economy's swings by its large defensive companies like AstraZeneca, Tesco, and healthcare. The company also holds growth-sensitive resources such as Anglo American, BP and other companies that can tap into the strength of oil, copper and Gold. Britain is one of few countries that are less concerned about trade uncertainty because a U.S.-UK trade agreement has been signed. The European Union, on the other hand, faces 30% tariffs in the event of a failure to reach an agreement by August 1. 'TEA AND BISCUIT The UK stock market can be a calming cup and biscuits in an uncertain time. "There's nothing fancy, just names that are reliable and do their jobs day after day," AJ Bell Investment Analyst Dan Coatsworth stated. Since years, the valuations of FTSE-100 companies has lagged behind those in Europe. Brexit in 2016 accelerated this trend. Fewer companies listed their shares on the London Stock Exchange and few were used as M&A targets. The UK market has caught up. The FTSE-100 12-month forward P/E ratio is at 12.5, the highest in five years. This compares to 14.11 for STOXX. It's the smallest gap for 18 months. S&P is trading at a premium of nearly 10 points to the FTSE compared to just 2 points a decade ago. The relative poor performance in the UK, compared to the U.S., over the last two years is beginning to reverse. Michael Stiasny said that we're at the beginning of this. He added that the UK equity market had traded at "significant discounts". The pound has reached a high of four years against the dollar but is weaker against the euro. This year's weakness against the euro offers a boost to FTSE exporters. Official data shows that the EU will be Britain's biggest trading partner in 2024. The United States will follow with 22%. Not everything is rosy. The British economy has slowed down, business activity is slowing and employment is declining. Inflation is above the Bank of England target of 2%. Barclays data indicates that UK equity has seen a net outflow in 2025 of $20 billion, though outflows are almost non-existent in the past month. This compares to Europe's $13 billion year-to date inflow and its rapidly slowing inflows. Sebastian Raedler is the head of European Equity Strategy at Bank of America Merrill Lynch. He believes that the FTSE has been performing well because of the currency, and it's in line with Europe. He said that a 2% increase in the FTSE by 2025 compared to the STOXX would be a minor improvement.
-
China's spy agency targets foreign attempts to "steal" rare earths
China's Ministry of State Security said Friday that foreign spy agencies have tried to "steal", rare earths. It also pledged to crackdown on infiltration and espionage targeting its vital mineral sector. The spy agency claimed that foreign intelligence agencies and their agents colluded with domestic lawbreakers to steal rare earth items from China. This posed a serious risk to China's security. The ministry reported that it had discovered attempts by an unknown country to circumvent export restrictions through forging labels, falsifying manifests and transshipping, which involves products being routed via third countries to their final destination. Exclusively this month, it was reported that large amounts of antimony (a metal used to make batteries, chips and fire retardants) appeared to have been shipped into the United States through Thailand and Mexico following China's ban on U.S. exports. In retaliation to U.S. Tariffs, China added several rare-earth magnets and other related products to its export restrictions list early in April. Due to shortages, some automakers outside China were forced to temporarily suspend production. China's rare-earths exports increased 32% from the previous month in June, a sign that the agreements made between Washington and Beijing last month to open up the flow of metals have been successful. Nvidia’s plan to resume sales of its H20 AI chip in China was part the rare earth talks. (Reporting and editing by Kate Mayberry in Beijing)
-
Morning bid Europe-stocks are buoyant, but Japan's vote is a risk
Stella Qiu gives us a look at what the future holds for European and global markets. The share markets continue to defy the laws of gravity. Wall Street closed yet another record-high as investors seized on positive economic signals. This sparked a rally that has continued in Europe and most Asian markets. A new worry has emerged in Japan. An upper house election this Sunday could threaten the majority of Prime minister Shigeru Shiba's ruling alliance. Japanese stocks, bonds and yen are all falling due to the increased political risk. The broadest MSCI index of Asia-Pacific stocks outside Japan reached its highest level since late 2021, but Tokyo's Nikkei fell 0.3%. Meanwhile, the yen is headed for a third straight week of losses. It's down 0.7% at 148.45 to dollar, near a 2-month low. The yields on 10-year JGBs fell 1 basis point on Friday to 1.545%, but are still not far off the 17-year-old high of 1.585% that was reached earlier in this week. The opening of the European stock markets is expected to be higher, with EUROSTOXX futures rising by 0.3%. The Sunday elections in Japan could be the most important upper house elections in many years. They may add to the political instability in a period of rising concerns over fiscal sustainability, uncertainty about interest rates and lack of progress in trade negotiations with the U.S. Japan's core rate of inflation fell in June, but it remained above the central bank target of 2%. This highlights the high cost-of living that is plaguing Ishiba. Investors are also happy about the robust earnings of U.S. corporations and the resilient U.S. economic situation. Wall Street futures have firmed up a bit, while Netflix's results exceeded expectations, partly due to the weaker dollar. This could be good news for export earnings. For the rest of today, the economic and events calendars are mostly empty. Fed Governor Christopher Waller reiterated support for a cut in interest rates at the end this month. He cited mounting risks to the economic. Fed funds futures indicate that there is little chance of any movement on the 30th July, while a rate cut in September is about 60% priced-in. This year, a total easing of 45 basis points is expected. The following are key developments that may influence the markets on Friday. Germany PPI for the month of June The German Finance Minister Lars Klingbeil, and the Bundesbank President Joachim Nagel spoke on the sidelines at the G20 in Durban U.S. University of Michigan consumer Sentiment survey
Dalian iron ore to gain fourth weekly on demand optimism
Dalian iron ore prices rose on Friday, heading for a fourth straight weekly gain as a positive demand outlook and expectations of further support from Beijing lifted market sentiment.
As of 0320 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange rose by 0.7% to reach 787.5 Yuan ($109.67), per metric ton.
This week, the contract gained 3.01%.
The benchmark August Iron Ore at the Singapore Exchange rose 0.57% to $101.4 per ton this week, an increase of 2.19%.
Analysts from ANZ stated that traders are optimistic about improved steel margins after Beijing's signal to reduce overcapacity. Hopes for new stimulus in the property sector have also boosted market sentiment.
ANZ said that lower inventories of both iron ore, and steel, are fueling expectations for restocking to occur in the months to come.
SteelHome, a consultancy, says that total iron ore stockpiles across Chinese ports fell by 0.76% in a week to 130.9 millions tons on July 18. This has further supported prices.
Galaxy Futures, a broker, reported that the current demand for iron is strong, while steel consumption remains high in the manufacturing industry.
Galaxy said that the prices are further supported by expectations of reforms to supply-side policies.
BHP, a mining giant, reported an annual record iron ore output of 290 millions tons. The fourth quarter production was 77.5 million tonnes, exceeding the market's expectations.
Strong retail sales data boosted the dollar.
Dollar-denominated investments become more expensive to holders of other currencies when the greenback is stronger.
Coking coal and coke both rose by 2.55% and 0.8% respectively.
All steel benchmarks at the Shanghai Futures Exchange gained ground. Hot-rolled coils and stainless steel gained 0.24% and 0.88% respectively. ($1 = 7,1807 Chinese yuan). (Reporting and editing by Rashmi Liew)
(source: Reuters)