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IG Prime reports that investors are looking to switch hedge fund managers, citing performance, risk and size.
In a report released on Thursday, IG Prime said that about a quarter (25%) of investors surveyed were looking to switch hedge funds where they invest their money. They cited reasons such as risk, performance, and size. According to PivotalPath, a hedge fund research company, volatility in the financial markets boosted the performance of hedge funds globally in 2024. Returns averaged around 11% in the year. PivotalPath reported that hedge funds had returned 1.3% year-to date in 2025 as of the end of February. The IG Prime report 'The State of the Hedge Fund Industry" showed that 76% of 51 institutional clients surveyed said they will keep their hedge fund, but 24% would switch. The report stated that investors who wanted to move were unhappy with their hedge fund's performance and worried about the way they managed risk. Investors also worry about the size. Two fifths of respondents said they'd look for a smaller, more capable hedge fund manager. A quarter would go with a larger but less experienced one. The majority of respondents said that they are interested in hedge fund trading stocks. Over a third of respondents said they prefer multi-strategy funds that have multiple trading strategies all under one roof. The report said that only 8% of respondents were interested in commodity funds or those who trade derivatives on the basis of market volatility. Reporting by Nell Mackenzie, Editing by Dhara Raasinghe and Elaine Hardcastle
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UK lifts sanctions against Syria's central bank and petroleum companies
The British government unfroze assets belonging to the central bank of Syria and 23 other entities, including banks and oil firms. This is a reversal of sanctions that were imposed under Bashar al Assad's presidency. After more than 13 years in civil war, insurgents led by Hayat Tahrir Al-Sham ousted Assad from his position as president last December, the West has rethought its approach towards Syria. The British Government website posted a notice stating that entities such as the Central Bank, the Commercial Bank of Syria, and the Agricultural Cooperative Bank were delisted and no longer subject to a asset freeze. Syrian Petroleum Company (SPC), Syria Trading Oil Company SYTROL and Overseas Petroleum Trading are also delisted. Ahmed al-Sharaa, the Interim President of Syria, has repeatedly called for the lifting Western sanctions that were imposed during the civil conflict to isolate Assad. Last month, European Union member countries A range of sanctions are suspended Syria: The British Foreign Office did not provide a reason why the sanctions were lifted and did not respond immediately to a comment request. An official from the Syrian government's media did not respond immediately to a comment request. In February, (Reporting by Muvija M in London and Timour Azhari in Beirut Writing by Sam Tabahriti Editing by William James and Peter Graff) Reporting by Muvija in London, and Timour in Beirut. Writing by Sam Tabahriti. Editing by William James & Peter Graff.
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French battery maker ACC welcomes EU support for the auto sector but fears that it is too late
The French battery manufacturer Automotive Cells Company announced on Thursday that they welcomed the support of the European Union in the auto industry, but also expressed concern that the support would be too late. The European Commission released an action plan on Wednesday for the automotive industry to help them reach the target of zero carbon emissions for any cars or vans sold within the region by the year 2035. The money included 1.8 billion Euros ($1.94 billion), which was allocated to secure the supply chain for raw materials used in batteries. ACC, owned jointly by Stellantis Mercedes and TotalEnergies said in a LinkedIn post that it was pleased with the support of a "medium term action plan" for Europe's industrial sector to close the gap against Asian producers. We fear that the urgency we are experiencing is not being taken into consideration. "To benefit from it we will need to have survived until then," the statement added. ACC's battery production plans have been drastically slowed down due to the uncertainty surrounding electric vehicle demand in Europe, and the emergence more affordable battery chemistries. The group planned nine production blocks for 2030 across France, Germany, and Italy. This was backed up by an investment of 7.3 billion euro. The German and Italian projects were put on hold and now only one French block is producing batteries for Stellantis. A second will start by the end of this year. Reporting by Gilles Guillaume, Writing by Makini Patton and Dominique Patton; Editing by Dominique Vidalon and Kirsten Donovan
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Russell: China's modest stimulus does not have a big impact on commodities.
China has largely promised to continue the mild stimulus policy of last year, despite hopes that China's annual parliament meeting would bring a significant economic boost and boost commodities. The announcement of a 5% economic growth goal and the promise to increase consumption and combat any negative effects of the trade war with the United States was encouraging. The parliament meeting of this week was also far short of any sort of announcements of stimuli that could have given commodity markets confidence that China, as the largest buyer of natural resources in the world, will see a meaningful increase in imports by 2025. What's likely to happen is that the same trends as in 2024 will continue, with some commodities performing better than others, but overall, the story remains one of modest growth. Data from the first half of this year suggests that China's imports are continuing on their recent path. LSEG Oil Research estimates that China's crude oil imports in February were 10.75 million barrels a day (bpd), up from January's 10.1 mbpd but down from the 2024 customs figure of 11,04 mbpd. The government has encouraged consumers to switch to new energy vehicles, which can be either hybrids or full-electric vehicles. The subsidy program for switching to NEVs as well as more efficient appliances in the home was expanded this year. This means that NEVs will continue to grow rapidly, and now account for more than half of all new car sales. The news isn't good for those who hoped that the increased focus on consumer spending would lead to a stronger demand for steel. In a draft report by the state planner, China revealed for the first time in the last five years a plan to reduce crude steel production in 2025. The report did not specify the steel output target, but it is likely to be less than 1 billion tons. This is the level at which China's production of steel has fluctuated around since 2019. China's imports will be affected if steel production drops from the 1,005 billion tons in 2024. These are the two main raw materials. COAL, IRON ORE China imports around 75% of the seaborne iron ore in the world, but they are not off to a good start by 2025. Kpler estimates that February arrivals will be 83.92 millions tons, the lowest total since April 2019. This is down from 104.34 in January. Imports may have been affected by the Lunar New Year holidays in February, but adding them to Kpler's estimate for January gives an average daily of 3,19 million tons over the first two month of the year. This is down from the 3.39 million tons of 2024. Kpler estimates that China's seaborne coal imports have fallen to 29.82 millions tons in 2025. This is the lowest level since February 2024, and is down from 35.9 million tons in January. It is likely that the decline in coal imports reflects lower domestic fuel prices which have led to a rise in inventories, and a reduction of demand for imported fuel. The announcements made by China this week were positive for commodities, especially those that are associated with energy transition. In a Wednesday statement, the National Development and Reform Commission announced that China would develop new offshore wind farm and accelerate construction of "new energy bases" in the western desert areas of the country. China's continued focus on renewable energy is good for its demand for metals like copper, aluminum and silver which are used in the manufacturing of solar panels. The Shanghai exchange's copper contracts rose as early as Thursday morning, rising as much as 1.1 percent to 77.990 yuan (10,757) per ton. They are now up by 5.2% from the end of the last year. Aluminium futures were only up 0.5%. The ongoing commitment to build renewable energy capacity in China and increase the share of NEVs is a reason for some optimism. However, the residential real estate sector continues to be a source of concern. The potential impact of trade wars launched by Donald Trump's administration, which could slow down global growth and increase inflation, is a greater concern. These are the views of the columnist, who is also an author. (Editing by Stephen Coates).
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The bond market continues to sell off after the German pledge of massive spending
The world financial markets were still in a readjustment phase Thursday, after U.S. president Donald Trump's shakeup in the transatlantic relationship prompted a half-a trillion-euro shift to German defense and infrastructure expenditures. In about an hour, the European Central Bank is preparing to lower its interest rates once more. This would normally be enough to distract traders. It was only one factor among many. A global bond market sale is still underway a day after Germany's 10-year Bund yield, a major driver for borrowing costs worldwide, saw its largest rise since the 1990s. Bund yields are up 7 basis points to 2.85% after reaching as high as 2.929% Wednesday. The euro rested at a 4-month-high versus an deflated US dollar, while European stocks took a break after a 10% rise this year. Jim Reid of Deutsche Bank said that the Bund yield spike on Wednesday was the largest move since German unification. This is a seismic change of epic proportions, and only nimble and fast-money investors have responded thus far. Overnight, the global implications became apparent. The yield on Japan's 10-year bond, another important driver of borrowing costs worldwide, has reached a 16-year high. In early U.S. trade, the yield on U.S. Treasury notes was also rising despite bets that more Federal Reserve rate reductions would follow recent patchy U.S. data. The focus remained on global trade after the United States imposed 25% tariffs on imports of goods from Mexico and Canada on Tuesday, along with new duties on Chinese products. White House said Wednesday that Mexican and Canadian automakers will be exempted for one month from their respective countries' tariffs as long as they comply with existing free-trade rules. Wall Street futures predicted that the S&P 500 index would fall again when trading resumes. The S&P 500 index has been in the red this year after a difficult run that saw it fall eight times in the last ten sessions. MSCI's broadest Asia-Pacific share index outside Japan closed at 1.25% higher, while Tokyo's Nikkei ended 0.8% higher. China's blue chip index grew another 1.4%, while Hong Kong's Hang Seng Index soared over 3%. It reached its highest level in three years. This is a significant world market-topping surge of 20% by 2025. RESPONSE OF THE ECB At 1315 GMT, the ECB was expected to cut interest rates. This is due to the massive rearmament in Germany and Europe. After President Donald Trump suspended military aid to Kyiv earlier this week, European leaders held an emergency meeting on support for Ukraine in Brussels. The euro was unchanged at $1.08 and just shy of the four-month high it reached in early Asian trading. The euro is set to rise by more than 4% in the coming week, which would be its best performance since March 2009. Julien Lafargue is the chief market strategist of Barclays Private Bank. He said that this (ECB meeting) could be very exciting given the current circumstances. Lafargue stated that the bank is close to reaching the "neutral" interest rate level after its recent cuts. Christine Lagarde, however, will be asked how the ECB plans to respond to Europe's increased defence spending. Gold prices in commodities were slightly lower, at $2,904 an ounce, as traders awaited the U.S. Non-Farm Payrolls Report on Friday to get hints on the Federal Reserve’s policy direction. After a week of tumbling, oil prices are now trying to recover. This is due to a large increase in U.S. crude stockpiles, OPEC+'s plans to boost output, and U.S. Tariffs on important oil supplies. Brent futures hovered at $69.7 per barrel, close to the over three-year-low touched on Wednesday.
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China's MMG suspended its production at a new Congo cobalt mine late last year
The company's annual report stated that Chinese state-controlled mining firm MMG Ltd put its Kinsevere Cobalt Project in the Democratic Republic of Congo under care and maintenance due to the unfavourable market conditions for cobalt in December. MMG approved a 2022 extension of the mine's life and added cobalt production to its current copper production. MMG reported that the extension project was finished in September of last year but that the cobalt facility was shut down in December. It said that "a flexible cobalt strategy will be implemented moving forward, adapting cobalt prices to market conditions and cobalt content varying across different mineral sectors," By late 2024 the price of cobalt had fallen by over two-thirds compared to its peak in 2022. This was due to a combination a massive surge in supply and a slowing down of demand. Last month, the Democratic Republic of Congo (DRC), the world's largest producer of cobalt temporarily halted exports of the metal to alleviate a global oversupply. In 2022, the miner stated that the now mothballed project would have increased annual cobalt output at Kinsevere from 4,000 to 6,000 tonnes. MMG, which is owned by China Minmetals and has a major stake in the company, sold 1,617 metric tonnes of cobalt during last year. The most actively traded March electrolytic contract at China's Wuxi Stainless Steel Exchange rose by 7.45% to its highest since May 2024. Reporting by Amy Lv in Beijing and Lewis Jackson; Editing and proofreading by Pratima Dewasi and Jan Harvey
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Trump's Canada Oil Tariff speaks of US vulnerability
Canadian oil imports are subject to a 10% tariff - less than other imports Canada provides 50% of US crude oil imports Canadian crude discount widens Ron Bousso LONDON, 6 March - The U.S. president Donald Trump gave Canadian energy an modest break when he announced tariffs against Canadian and Mexican imports. This shows that "Tariff Man", will engage in realistic politics with regards to oil and natural gas. The Republican President said Monday that all Canadian and Mexican imports would be subjected to a 25% duty, with the exception of Canadian energy which will only receive a 10% tariff. The energy interdependence between Canada and the United States is reflected in the lower tariffs on Canadian gas and oil. Canada, which is the fourth-largest crude oil producer in the world, depends on the United States for 90% of its imports. Canada also supplies half of U.S. imports of crude oil, and will supply 4 million barrels of crude per day by 2024. This is around one fifth of the consumption in America, the largest oil consumer in world. The majority of Canadian crude oil is transported via pipelines to refineries in the U.S. Midwest, which are landlocked. The U.S. refineries rely on Canadian crude for 70% of their supply and are designed to process the grade of feedstock they require, so it is not easy to replace Canadian crude. RAPID ADJUSTMENT Canadian oil producers, on the other hand, have adapted quickly to Trump's changes by lowering their crude prices sold to the United States in an effort to retain their customers. Western Canada Select (WCS), a heavy crude oil from Western Canada, has been discounted to West Texas Intermediate (WTI), the benchmark North American futures contract. The discount has increased over the past week by approximately $2.50 a barrel to $14.25. The price of Mars sour, an alternative Gulf of Mexico crude to Canadian and Mexico grades has also more than doubled to $2.35 per barrel since February 25, up from $1.85. If tariffs continue, refiners say that gasoline prices will rise in certain U.S. areas, especially in the Midwest. Canada can bypass the United States by using the Trans Mountain pipeline, which runs from Alberta up to the coast of British Columbia and was recently expanded. The oil can then be loaded on tankers and shipped overseas. The capacity of seaborne exports, however, is limited. To date the United States was the primary destination for exports to the port of Vancouver. Data from analytics firm Kpler shows that exports from the port to its southern neighbour are expected to double from February to 309,000 BPD in March. This is a sign traders have booked extra volumes to prepare for the tariffs Trump had warned about weeks ago. How long the tariffs are in place will have a major impact on the market. Canadian producers may be forced to reduce output if the negotiations drag on. In the short term, however, 10% tariffs will not cause significant disruptions, since producers, refiners, and consumers are likely to absorb any additional costs. The question is whether Trump will be able to stomach the political fallout that could result if tariffs are maintained and energy prices rise. The author is a columnist at. Want my weekly column, plus additional energy insights and trending articles delivered to your inbox? Subscribe to my Power Up Newsletter here.
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ADNOC's agreements with European companies
ADNOC (Abu Dhabi National Oil Co.), a state-owned company, has pursued a number of mergers and acquisitions with European companies with the aim of diversifying and developing its renewable energy and chemicals operations. ADNOC has been involved in the following deals and discussions: COVESTRO ADNOC announced on October 1 that it had agreed to purchase German chemicals manufacturer Covestro for $14.7 billion. This is one of the largest foreign takeovers in the Gulf, and is intended to reduce the country's heavy reliance on oil during the energy transition. ADNOC will merge with OMV its polyolefin business to create a chemical powerhouse, they announced on 4 March after almost two years of negotiation. Borouge Group International will also purchase Nova Chemicals Corp. from the sovereign wealth fund Mubadala in Abu Dhabi for $13.4 billion including debt. FERTIGLOBE ADNOC has agreed to buy the entire stake of European chemical company OCI in Fertiglobe, which produces ammonia and is urea. The deal will be completed in December 2023. ADNOC will become its largest shareholder. (1 euro = 0.9259 dollars) (Reporting and editing by Milli Nissi, Tristan Veyet in Gdansk)
Harbour Energy announces annual loss and urges UK windfall tax reform before 2030
Linda Cook, Harbour Energy's CEO, warned that if the UK's windfall taxes were not repealed by 2030 it would cause irreversible harm to the oil and gas industry in Britain. This was after the company's 2024 earnings saw a spike due to a tax increase.
Harbour, Britain's largest North Sea oil and natural gas producer, has reported a $93 million loss for 2024 compared to a $45 million profit in 2023. Its tax bill is more than doubled, from $571 millions a year earlier, to $1.31 million.
LSEG data shows that the pre-tax profit for 2017 was $1.22billion, which is below analysts' estimates of $2.03billion.
Harbour's shares fell 14% to 184p by 1021 GMT.
North Sea producers claim that the UK Energy Profit Levy, first introduced in 2022 after a spike in energy prices due to Russia's invasion in Ukraine, has hurt profits and created uncertainty for investments.
Since the EPL was introduced, we have had an effective tax rate higher than 100% every year. Cook told a press conference that the EPL does not only tax windfall profits but all our profit.
Britain announced on Wednesday that it plans to revamp the windfall tax system on oil and gas companies once the current levies expire in 2030. It also pledged to turn the North Sea into an energy hub.
In October, the government increased the tax from 35% to 38%, bringing the headline rate for the sector up to 78%, making it one of the highest rates in the world.
The government is asking for feedback from industry and other stakeholders until 28 May on possible policy options, including taxing "excess revenues". The consultation did not include any specific price thresholds.
Cook stated, "We are eager to engage. Our message will be to work with Treasury to create a fair and stabile fiscal regime. We hope to have this in place by 2030."
Harbour has said that despite the difficult environment, it does not plan to move its listing from Britain over to the United States.
The group's revenues in 2024 will be around $6.22 Billion, up from $3.75 Billion the previous year. This is primarily due to higher production and post-hedging realized European natural gas prices. (Reporting and editing by Arunima in Bengaluru. Sumana and Emelia Sithole Matarise).
(source: Reuters)