Latest News
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Germany allocates five billion Euros to encourage heavy industry to reduce CO2
The German economy ministry announced on Tuesday that it would provide up to $5.85 billion this year to help major factories reduce their carbon emissions through the use of cleaner technology. Carbon contracts for Difference (CCfDs) covering 15 years will be used to cover extra costs for low-emission production in industries such as steel, cement and chemicals. The goal is to keep these factories in Germany, and help them meet climate goals instead of moving production to countries that have weaker environmental regulations. The government has loosened up some conditions after a first bidding round that took place in 2024. The government has loosened some conditions after a 'first bidding round in 2024. The program's final target is to reduce emissions by 85%. This is slightly lower than the previous goal of 90%. The new rules?allow for funding of technologies that capture CO2, particularly in industries such as cement and certain chemical production. The projects that are purely aimed at generating cleaner industrial heat can also be eligible. The government has clarified rules regarding cancellations and delays to reduce risk for businesses. The ministry stated that only factories covered by the EU emissions trading system are eligible to apply. Bids must be submitted before September 7, 2026.
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Sources say that Arcelor and Adani are among the firms that will be setting up treasury functions in India's GIFT City.
Three sources claim that Gautam Adani’s firm, Bharti Airtel (the telecom operator), Genpact, a U.S. based company, and ZF Friedrichshafen, the auto parts giant, are all setting up treasury in India’s tax-neutral finance zones. Public filings indicate that they are set to join ArcelorMittal - the second largest steelmaker in the world - which has obtained regulatory licenses for two treasury centers. Modi's government is promoting the Gujarat International Finance Tec-City (GIFT City) as a rival to Singapore and Dubai as a centre of finance. The government increased the tax holidays for companies operating in the city to 20 years, and relaxed regulations. Two of the three sources who declined to be identified as they were not authorised by the media to speak, said that seventeen corporate treasuries will likely begin operating in GIFT City within the next three month. Singapore and the Netherlands have been traditional locations for corporate treasury operations. Global treasury centers are hubs for multinational companies to manage their cash, liquidity, funding, foreign exchange, and financial risks. The three?sources' said that firms are setting up treasury centers in GIFT City because of the lower tax rates on dividends?and the ability to send excess cash overseas. They also like the fact that they can hold assets in dollars, as the rupee is weakening. India hopes that by moving this activity to GIFT City it will be able to maintain control over global financial flows related to its companies. "Treasury centres at GIFT City are ?allowing firms to pool cash and borrow at a group level with greater flexibility and improving access to funds generated by their Indian businesses," said Suresh Swamy, a senior partner at PricewaterhouseCoopers. In response to a question, a ZF Friedrichshafen spokesperson responded in an email that the company is looking into a GIFT City setup and has not yet applied for a license. No response to email queries sent to other companies mentioned in the article. Names of companies planning to establish operations in GIFT City? have not been reported previously. Dipesh Shah is an executive director of the International Financial Services Centre Authority (GIFT City), a regulator. He said that "the growth of treasury centers at GIFT represents a structural change in how India-linked corporations manage global 'capital. He refused to comment on the specific companies that set up treasury functions at the tax hub. REGULATORY PUSH Sources said that activity has increased'sharply' since January. Seven companies have'secured regulatory licences, and another 17 are at various stages of approval. According to two sources, a large part of the recent increase is due to the regulatory changes that will be implemented in April 2025. The?interest of foreign multinational companies was beyond our expectations," stated a senior regulatory officer at GIFT City, who?requested anonymousness as they were not authorised by the media to speak. Sources said that a key change was made to allow banks to pay interest for current account balances. This practice is not permitted by the Reserve Bank of India (RBI) for onshore lenders. Two of the sources claimed that only one foreign bank had started this practice so far. Sources say that ArcelorMittal, an early entrant, plans to pool cash for its India entities through GIFT City. This is similar to the activities it performs via its treasury center in Paris via an entity named ArcelorMittal Treasury. Reporting by Jaspreet K. Kalra and Jayshree Upadhyay in Mumbai, Editing by Ira Dugal and Thomas Derpinghaus
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Gold recovers from a five-week low, but inflation worries cap gains
Gold prices rose on Tuesday after a five-week low was reached in the previous session. However, gains were modest as high crude oil prices kept inflation concerns alive and clouded U.S. rate outlook. After a drop of more than 2% on Monday, spot gold was up 0.5% at $4,543.87 an ounce as of 0757 GMT. U.S. Gold Futures for?June Delivery were up 0.5% to $4,554.10. Ilya Spivak is the head of global macro at Tastylive. He said that prices seem to have digested a little after the return of a 'war' trade across the markets on Monday. The dollar and Treasury "yields" rose as the crude oil rebound fueled inflation fears. Spivak noted that this weighed against gold, which is non-interest bearing and anti-fiat. Brent crude hovered at $113 per barrel, as the U.S. continued to negotiate a truce with Iran while exchanging blows in the Strait of Hormuz. The U.S. Military said Monday that it destroyed six Iranian small vessels and intercepted Iranian drones and cruise missiles, as Tehran tried to thwart the new U.S. Naval effort to open up shipping through the Strait of Hormuz. Dollar-priced materials become more expensive to holders of currencies other than the U.S. dollar. Higher crude oil prices can also stoke the inflation and increase the probability of higher interest rates. Gold is considered an inflation hedge, but high interest rates can make other assets more appealing, which reduces its appeal. Markets now see a 37% chance of an increase by March 2027 compared to 27% for a reduction one week ago. Investors are now awaiting a number of important U.S. statistics this week, such as the ADP employment report and the April payrolls data. Silver spot was up 0.8% to $73.29 an ounce. Platinum gained 1.7% at $1,978.77 and palladium increased 1.1% to 1,496.25. (Reporting and editing by Rashmi aich, Subhranshu Sahu, and Louise Heavens in Bengaluru)
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As the Iran War disrupts supply chain, German companies abroad become more pessimistic
A survey on Tuesday showed that German companies operating abroad are more 'pessimistic' about their prospects. Nearly one-third of respondents expect economic conditions to worsen as the Iran War exposes vulnerabilities in global supply chains. In a survey conducted by the German Chambers of Industry and Commerce (DIHK) of 4,500 companies, 32% of respondents expected that the situation in their foreign locations would worsen?in 12 months. This is an 8-point increase from the last AHK World Business Outlook Survey conducted before U.S. and Israeli?airstrikes against Iran at the end February sparked a Middle Eastern war. According to the survey, the?disruption' of energy markets, supply chains and fuel prices, as well as volatile demand, are all affecting international business. "This is not just an economic slowdown." Volker Treier is the head of DIHK's foreign trade. Despite the darker outlook, assessments of conditions are not worsening overall. Nearly 40% of respondents rate their situation as good and nearly 50% as satisfactory. The authors of the survey said that the geographical impact on German companies with international locations of their dependence on imports of oil and gas from the 'Gulf region' varies. The majority of companies in Asia-Pacific, including China, and the closest to the conflict zones, are sceptical regarding the future. The outlook for firms operating in China, America and South America's Mercosur region is relatively optimistic. (Reporting and editing by Barbara Lewis, Miranda Murray, Christian Kraemer)
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Gold recovers from a five-week low, but inflation worries cap gains
Gold prices rose from the 'five-week low' they hit the previous day, but gains were modest as high crude oil prices kept inflation concerns alive and clouded U.S. rate outlooks. After a drop of more than 2% on Monday, spot gold was up 0.5% at $4,543.33 an ounce as of 0615 GMT. U.S. Gold?futures delivered in June rose 0.4% to $4,553.10. Ilya Spirak, the head of global macro at Tastylive, said that prices seem to have digested a little after the return of "war trade" across markets on Monday. Gains were however capped by the fact that Treasury "yields" and the dollar rose as the rebound in crude oil stoked inflation concerns. Spivak stated that this weighed against gold, which is non-interest bearing and anti-fiat. Brent crude was hovering?above $113 per barrel, as the U.S. continued to negotiate a truce with Iran while exchanging blows in the Strait of Hormuz. U.S. Military said Monday that it destroyed six Iranian small vessels and intercepted Iranian drones and cruise missiles, as Tehran tried to thwart the new U.S. Naval effort?to open up shipping through Strait of Hormuz. Dollar-priced materials become more expensive to holders of currencies other than the U.S. dollar. While higher crude oil prices can increase inflation, they also increase the probability of higher interest rates. Gold is considered a hedge against inflation, but high interest rates can make other assets that yield more attractive. This reduces its appeal. Markets now see a 37% probability of an increase by March 2027 compared to 27% a week ago. Investors are now awaiting a number of important?U.S. This week's data includes job openings, the ADP employment report and the April payrolls. Silver spot was up 0.4%, at $73 an ounce. Platinum gained 1.4%, to $1971.86, while palladium was up 1.1%, to $1495.43. (Reporting and editing by Rashmi aich and Subhranshu Sahu in Bengaluru.
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Palm oil prices rise on Malaysian biodiesel optimism
The price of Malaysian palm oil futures rose for the second consecutive session on Tuesday as investors became more optimistic about Malaysia's plans to produce biodiesel. By midday, the benchmark palm 'oil contract on the Bursa Derivatives Exchange for July 'delivery' had gained 42 ringgit (0.91%) to $4,664 ringgit (1,177.18 USD per metric ton). Malaysia will start producing biodiesel in June with a blend of 15% palm oil, called B15. This will help to lower diesel prices, said the country's vice prime minister on Monday. Paramalingam Supramaniam is the director of brokerage Pelindung Bestari. He believes that for a successful B15 biodiesel to be implemented in Malaysia, it would take close to 1,5 million metric tonnes of crude palm oil per year. Supramaniam said that traders will also be waiting for the full-month production numbers for April from the Malaysian Palm Oil Association, which are expected to provide a good indication of the output trends in the second quarter. The Chicago Board of Trade reported a 0.33% decline in soyoil. The Dalian Commodity Exchange will resume trading after the holiday on May 6. Palm oil follows the price movement of rival edible oils as it competes to gain a share in the global vegetable oils markets. Oil prices fell by more than 1% following a 6% increase in the previous session, based on signs that the U.S. Navy was loosening Iran’s grip on the Strait of Hormuz. Palm oil is less attractive as a biodiesel feedstock due to weaker crude oil futures. The ringgit (the currency used to trade palm oil) fell 0.3% against the US dollar, making it slightly cheaper for those who hold foreign currencies. Technical analyst Wang Tao believes that palm oil could extend its?gains to a range between?4,693 and 4,713 per metric ton. This is due to a wave c.
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Oil prices remain high despite the US-Iran hostilities
The yen was also a focus for traders after it briefly jumped in the previous session, fueling speculation of another 'round' of intervention from Tokyo. The yen was also in traders' sights after it briefly rose during the previous session. This sparked speculation about another round of intervention by Tokyo. The EUROSTOXX50 futures fell 0.3%, FTSE futures dropped 1% and DAX futures declined 0.4%. In Asia, MSCI’s broadest Asia-Pacific share index outside Japan fell 0.6% on thin trade. Markets in Japan and South Korea were closed for holidays. Hong Kong's Hang Seng Index dropped more than 1%, while China's CSI300 Blue-chip Index was barely changed. On Monday, the U.S. launched new attacks on the Gulf as it fought for control of the Strait of Hormuz through dueling maritime blockades. This came shortly after U.S. president Donald Trump launched a new initiative to move stranded ships and tankers through this vital energy-trade chokepoint. Maersk reported that the Alliance Fairfax, an American-flagged vessel carrier operated by Farrell Lines, "exited" the Gulf on Monday via the Strait of Hormuz, accompanied by U.S. Military assets. The renewed hostilities still jolted the markets and served to remind us that the Middle East war is far from over. "We began yesterday with high expectations that operation?Project Freedom? would be a success, on the ground. That it was being marketed as a more humanitarian effort," said Tony Sycamore. But, as we saw, they didn't take that bait at any rate. This really indicates that the stalemate is still in place. It's been an extremely shaky beginning." Brent crude futures dropped 1.3% to $112.93 per barrel while U.S. Crude fell 2.3% to $100 per barrel. Both had risen in the previous session due to increased concerns about supply disruption. Investors were also preparing for this week's earnings reports, including those from Advanced Micro Devices, Pfizer, and others. S&P Global Market Intelligence data shows that 83% of S&P500 companies have already reported and have beaten their EPS estimates. 78.2% have also beaten their revenue estimates. Nasdaq Futures climbed 0.26%, and S&P500 futures were up by 0.17% after both indexes had ended lower overnight. Jeff Buchbinder is the chief equity strategist of LPL Financial. He said that AI-driven expenditures will continue to drive earnings growth in the S&P 500, with the technology sector leading the way. YEN INTERVENTION WORT After Monday's brief surge, the yen has been stable at 157.26 to the dollar. The Japanese currency reached an intraday high of 155.69. Satsuki Katayama, the Japanese Finance Minister, spoke out on Monday against speculative foreign exchange trading. Market participants are on high alert for further intervention. Abbas Keshvani is Asia Macro Strategist for RBC Capital Markets. He said that authorities may intervene again, if the dollar/yen keeps testing 160, which they have historically protected. In 2022, Tokyo fired "three volleys" of intervention within a few week. He said: "We believe that the intervention will only act as a cap on USD/JPY and not as a catalyst for a protracted yen strength." The Australian dollar, which is traded in other currencies, was last 0.08% down at $0.7162 after the Reserve Bank of Australia raised rates on Tuesday for the third time this calendar year, a move that was widely anticipated. Meanwhile, the U.S. Dollar? firmed up on demand for safe havens. A slew of data, including Friday's nonfarm employment report for April, could influence the Federal Reserve's policy outlook. The U.S. economy is expected to have gained 62,000 jobs after March's 178,000-strong gain. However, problems with seasonal adjustments create a lot of uncertainty. The markets currently expect that the Fed will leave its interest rate policy on hold for the rest of this year due to the inflationary pressures from the global energy crisis. Spot gold, meanwhile, rose by 0.3%, to $4,533.68 per ounce. This is well within the ranges of recent trading. (Reporting and editing by Christopher Cushing, Muralikumar Aantharaman, and Rae Wee)
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Nine workers die in Colombia coal mine explosion
The national mining agency announced on Monday that a coal mine explosion had killed nine workers and injured six others in Colombia's Cundinamarca Province. This comes several weeks after the agency issued recommendations to reduce the risk of the site. The explosion occurred in the La Ciscuda mine, operated by Carbonera Los Pinos. The company was unable to be reached immediately for comment. The mining agency stated that the accident appeared to be caused due to a buildup of gasses. It also said that during a visit on the 9th April, it identified methane and other gases that could be dangerous. The ANM said in a statement that coal deposits could contain concentrations of coal dust and methane. Six workers survived and were treated at a regional hospital. The majority of serious accidents occur at coal and gold mines that are illegal, informal or do not have proper safety measures. Reporting by Nelson Bocanegra, Writing by Daina Bet Solomon, Editing by Christian Schmollinger & Lincoln Feast.
Private equity MBK, Young Poong launch $1.5 bln tender offer for Korea Zinc shares
Private equity fund MBK Partners and South Korean zinc producer Young Poong introduced a 2 trillion won ($ 1.5 billion) tender offer for shares in Korea Zinc, which the target called a hostile. takeover attempt.
The tender offer will look for to purchase in between 1.44 million and. 3.02 million Korea Zinc shares, or between a 6.98% to 14.61%. stake at 660,000 won per share, according to regulative filings. on Friday.
The shares were 556,000 won per share as of Thursday's. close.
Shares in Korea Zinc leapt 19.8% on Friday to trade. slightly above the tender deal rate as of 0327 GMT, while. Young Poong shares rose by the everyday limit of 30%.
Young Poong is already Korea Zinc's largest investor,. with a 25.4% stake as of end-June. If the tender offer is. effective, MBK Partners and Young Poong combined will manage a. 40% stake in the firm.
MBK Partners said in a declaration it plans to become the. largest investor in Korea Zinc, partly by working out a call. choice to purchase some Korea Zinc shares already owned by Young. Poong and associated entities.
The tender offer was intended to maximise shareholder worth. by consolidating management rights, enhancing governance, and. boosting corporate value, MBK and Young Poong stated in a filing.
MBK Partners said Korea Zinc, as a company, should remain. neutral when there is a conflict in between shareholders, and included. that its board was failing to operate typically.
Korea Zinc said in a separate regulatory filing the deal. was a hostile, predatory M&An effort to wrest management. manage away from management that has preserved the firm's No. 1 market share in non-ferrous metal production.
It also kept in mind a series of current safely-related deaths at. Young Poong's Seokpo smelter that led to its CEO's arrest,. saying Young Poong was trying to take over Korea Zinc with a. personal equity firm's aid after stopping working in its own business.
Young Poong declined remark.
Korea Zinc's shares had increased 12% year-to-date as of. Thursday's close compared with a 42% depression in Young Poong's. shares this year.
(source: Reuters)