Latest News
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Cyprus Energy Minister: UAE's TAQA may invest in an electricity project
George Papanastasiou said that the Cyprus Energy Minister is interested in a project to connect international electricity. The Great Sea Interconnector cable (GSI) will connect transmission networks in Europe with Cyprus, a project worth 1.9 billion euro ($2.12 billion), then extend to Israel. Papanastasiou, speaking in the capital of the United Arab Emirates, also stated that the Abu Dhabi National Oil Company could invest in an Exclusive Economic Zone (EEZ), referring a sea zone where Cyprus has rights to commercial activities. They are looking for assets that are ready to be deployed. We haven't ruled out the possibility of a new round of licensing to expand into exploration," said the minister on the sidelines Investopia. The minister confirmed in November that ADNOC had been in discussions to invest in Cyprus’s new natural gas sector. Reporting by Federico Maccioni, Abinaya VIjayaraghavan and Tala Ramadan; Writing by Tala RAMADEN Editing by Tomasz JANowski and Rachna UPAL
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Sources say HSBC is cutting the number of staff at China Pinnacle by 900.
Two sources claim that HSBC has reduced the number of employees at Pinnacle, its China digital wealth unit, by almost half or 900 people. This is a dramatic reversal from the bank's original plans for the unit, as part of their expansion plans in the country. Pinnacle, launched in 2020, sells fund and insurance products via a digital platform. According to calculations based off of company disclosures and official business records, it employed around 2,100 people in two of its major units at the end of last June. This reversal highlights the challenges that the Asia-focused banks face to boost profitability and growth in China, at a moment when they are cutting costs to increase returns. In October, it was reported that Pinnacle, Europe's biggest lender by assets in the previous year began investigating staff compensation structures. It also investigated whether suppliers had inflated expenses. This led to a dramatic increase in costs which outpaced Pinnacle's revenue. Two sources who are directly involved in the matter, but refused to identify themselves due to its sensitivity, confirmed that the staff reductions include layoffs, attrition, and transfers to different units within the bank group. Georges Elhedery has been appointed as the new CEO of the London-based bank. He has begun a massive restructuring, which includes job cuts. The aim is to cut costs over time and increase profits. Sources claim that Pinnacle has lost more than 500 insurance agents in the last seven months. This is a significant drop from the 1,700 insurance agents who left in June. The reason for this, they said, was because its insurance brokerage unit ceased renewing contracts following the launch of a review. They added that the banking group would soon begin laying off 100 employees at its Pinnacle fintech division, while another 300 will be transferred to other businesses, including the retail bank. This leaves only a handful of staff in the 400-person unit. Sources said that final discussion will be held on the numbers. HSBC did not directly comment on the changes in staff. The bank, which earns the majority of its revenues in Asia, counts China as a key market. It said that the bank's long-term commitment to mainland China, as a market of priority, has not changed. A spokesperson for the bank said that it will continue to invest globally in private banking, asset management, and insurance in mainland China. Pinnacle was part of HSBC’s commitment to invest $6 billion in Asia by 2021. Its digital focus allowed it to reach beyond its physical branches in China. The bank initially aimed to employ 3,000 wealth managers by 2025 in China. The reversal of HSBC's digital-wealth business ambitions in China highlights the challenges that foreign financial institutions in China face. After the business failed to take off, U.S. Fund Manager Vanguard had to terminate the partnership in 2023 and leave the market. (Reporting from Hong Kong by Selena Li, with additional reporting from Engen Tham in Shanghai. Editing by Sumeet Chatterjee & Stephen Coates).
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Exports of Russian naphtha to Asia drop to a 1-year low and margins are supported
The flow of Russian naphtha to Asia fell to an all-time low in February after new drone attacks on Russian refinery infrastructure. This led to higher prices in the East for the raw plastic material. Naphtha can be used as a feedstock to produce petrochemicals, which are then used in the production of plastic bottles, electric vehicle components and consumer products. Since Washington announced tougher sanctions against entities in the Russian oil business, Asian refiners have seen their profits from making naphtha increase by around 40%. Industry sources have said that the risk of Russian supplies could complicate a global naphtha market already complex. Since 2022, when Europe banned Moscow’s oil products imports due to the Ukraine conflict, Russia has moved most of its exports from Europe to Asia. The preliminary data from LSEG/Kpler ship tracking showed that Russian naphtha exported to Asia in February fell to a record low of 480,000-580,000 tonnes. This trend is likely to continue until the end of May or early June, when supplies will improve after Russian refineries return from their seasonal maintenance. The data shows that the major buyers of Russian naphtha are companies in China, India and Taiwan. FGE analyst Yew Jiing Seah stated that the decline in exports was likely due to increased drone attacks by Ukraine on Russian refineries late in January and early in February. The Volgograd refinery, which produces 340,000 barrels per day, was also attacked as were the Ryazan refinery with 378,000 barrels per day and the Ilsky refinery at 134,000. Traders in Russia said that some cargoes of January loadings were moved to February due to stormy weather at Black Sea ports. This contributed to the reduced exports. The traders said that Trump's new sanctions may cause some delays in March loadings. The Red Sea and Strait of Hormuz tensions in the past two years have forced many shipments via east of Suez, to reroute through Africa. This has increased costs and reduced the discount on Russian Naphtha. A Singapore-based trader of naphtha said that Asia's margins for naphtha have also increased due to concerns about disruptions in the supply of Iranian condensate as a result Trump's new sanctions. Condensate, an ultra-light oil, is typically processed in splitters to make naphtha. Profit margins in the refining industry Naphtha prices rose to $120 per ton compared to Brent crude on Thursday. They were $85.60 before the announcement of sanctions. A petrochemical dealer in India said that the current strength of naphtha margins was due to Russian supply risks, but Asia's demand remained subdued as a result of maintenance at crackers in India. The traders refused to name themselves as they weren't authorized to speak with the media. Analysts said that exporters from Africa and the Middle East will likely increase shipments to the east, taking advantage of the shortfall in naphtha supplies. According to Kpler, the share of Algerian Naphtha that has arrived in Asia this month is already 28% or 282,000 tonnes higher than it was in January.
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Terrafame, a manufacturer of battery chemicals, raises $105 Million to fund investments
Terrafame, a Finnish manufacturer of battery chemicals, announced on Thursday that it had raised 100 million Euros ($104.72 millions) in equity and shareholder loan and extended the maturity of its credit and bank facilities. Terrafame saw declining sales and a negative cash flow during the last quarter due to a decline in the demand for battery powered vehicles in Europe. Last year, Terrafame announced layoffs. In a press release, the company said that the cash raised by its principal owners, Finnish Minerals Group, and the Galena Funds managed by commodities trading giant Trafigura will be used to fund the investment program of the company over the next several years. Separately the Finnish government announced Thursday that 30 million euros had been injected into the state-owned Finnish Minerals Group. This will allow the company to boost the finances of Terrafame, where it has a 56.1% share. Terrafame is a Finnish company that operates a multimetal mine in Sotkamo, central Finland. Finnish Minerals Group will invest 50 million euros in equity and Trafigura Fund will provide a shareholder loan of 50 million euros. Bank loans and credit lines of 315 millions euros have been extended for one year, until late 2028. It added that the funds would finance significant ongoing investments and ensure the continued operation of the company for many years to come. In a statement, Terrafame's Chief Financial Officer Ville Sirvio stated that "these arrangements demonstrate our owners and Nordic banks long-term commitment and confidence in our company despite external challenges we've faced."
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Stocks hold steady after Nvidia's lackluster performance; Tariffs rattle Europe
The European stock markets fell on Thursday after U.S. president Donald Trump threatened to impose tariffs of 25% on imports coming from the EU. However, stocks around the world remained largely stable as Nvidia's earnings did not reveal any major surprises. Trump caused confusion on Wednesday by announcing that the duties would go into effect on April 2 - a month later than originally planned. A White House official said that the March 4, 2014 deadline for levies was still in effect, "as of now", causing further confusion about U.S. Trade Policy. Trump has also proposed a "reciprocal tariff" of 25% on European cars and goods. The STOXX 600 index fell 0.6% while the euro lost 0.1%, but it remained within its range of trading during the last week. Michael Brown, Senior Research Strategist at Pepperstone, said: "We are almost in a position where there is too much news, leaving traders paralysed. They don't know which to focus on and, especially with Trump, they do not know what is a negotiation gambit or a serious policy proposition." It makes sense to reduce the risk in assets that are more volatile, especially if you're a high-risk investor. U.S. Nasdaq Futures were 0.6% higher while S&P500 futures were 0.5% higher. Investors weighed the prospects for tariffs, the economy and Trump's presidency. The U.S. Dollar firmed up and Treasury yields increased. The yields on two-year Treasury bills in the United States rose to 4,1% after Wednesday's drop to their lowest level since November 1, at 4.065%. The 10-year yield increased to 4.2924%, from a Wednesday low of 4.245%. US GROWTH JITTERS Dollar has been under pressure over the past few weeks as Treasury yields fell. This is due to a combination of weak economic indicators and growth concerns resulting from Trump's proposed tariffs. The Federal Reserve is expected to reduce interest rates by two quarter points this year. The first reduction will likely occur in July. The markets will be looking for signs of a slowdown in the U.S. economy and durable goods orders on Thursday, while the Fed’s preferred inflation indicator, the Personal Consumption Expenditure Index (PCE), is due on Friday. Shoki Omori is the chief global desk analyst at Mizuho Securities. The U.S. Dollar Index, which measures currency against six major competitors, increased 0.17% to reach 106.64. This is a continuation of the climb since a 2-1/2-month low was reached earlier this week. Nvidia's shares fell 1.1% before the market opened on Thursday, following a 1.5% drop after the bell. The heavyweight U.S. chips maker and artificial intelligence pioneer provided a positive growth forecast for the quarter after the closing bell. Investors are used to the company's big beats. After a 12% drop in the first three days this week, cryptocurrency bitcoin has risen to $85,988. In a client note, Standard Chartered's global head of digital asset research, Geoff Kendrick warned clients not to buy the dip yet. He said, "Stay Patient." "These losses are rarely good and I think that the biggest capitulation will still be coming." Gold, the safe-haven asset, has slipped back to $2.879 an ounce under pressure from a stronger dollar and higher yields.
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Gold drops over 1% when dollar firms, inflation data is in focus
The gold price fell by over 1% on Thursday to its lowest point in more than one week, as the U.S. Dollar firmed. Investors were awaiting a key inflation report that could provide clues about the Federal Reserve’s monetary policies. Gold spot fell by 1.2%, to $2,880.79 per ounce at 0910 GMT. This is the lowest price since February 17. Prices reached a record high of $2,956.15 Monday, driven largely by the safe-haven flow. U.S. Gold Futures fell 0.7% to $2.909.30. Dollar index increased by 0.2%, moving further away from recent 11-week-lows. This makes greenback-priced gold more expensive for holders of other currencies. Donald Trump, the U.S. president, raised hopes that a month-long delay would be granted on new steep tariffs imposed on imports coming from Mexico and Canada. He said they could go into effect as early as April 2 and suggested a "reciprocal tariff" of 25% on European cars and goods. This uncertainty "sent Investors rushing to the Dollar's embrace and enforcing new pressure on Gold, which was experiencing profit-taking after record highs," Lukman Otunuga said, senior research analyst of FXTM. Investors will also be looking for clues about the U.S. monetary policies, as several officials are scheduled to speak in the afternoon and the Personal Consumption Expenditures Index (PCE) is due on Friday. According to a poll, the consensus was that a PCE index monthly of 0.3% would remain unchanged since December 2024. The markets expect at least two Fed rate cuts in 2019. About 55 basis points are priced into 2025. "Any major changes in these (rate bets) could cause a spike in volatility for the metal with zero yield." Geopolitical risks and Trump's tariff drama may keep gold bulls interested in the market, Otunuga stated. (Reporting by Anjana Anil and Sarah Qureshi in Bengaluru; Editing by Shilpa Majumdar) Spot silver fell 0.7% to $31.62 per ounce. Platinum rose 0.2% to $867.30, while palladium gained 0.1% to $927.50. (Reporting by Anjana Anil and Sarah Qureshi in Bengaluru; Editing by Shilpi Majumdar)
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Ministry says China's lithium carbonate production in 2024 will increase by 45%, to 670,000 tonnes.
According to a Thursday release by the Ministry of Industry and Information Technology, China's production of battery-grade lithium was up 45% in 2018 from 2023. On Thursday, the most actively traded contract for lithium carbonate on the Guangzhou Futures Exchange was 76140 yuan per ton, an increase of 0.1% compared with Wednesday. Companies around the world have been forced to close mines due to a drop in lithium prices, which peaked in November 2022, at almost 600,000 yuan a ton. Market participants believe that the closures will result in a demand surge this year, as China's policy to increase sales of electric vehicles is intensified. China will double its EV subsidies by July 2024. More than 5 million vehicles sold up to mid-December have benefited from these incentives. Antaike's commodity data provider, China, predicts that the global lithium glut will shrink by half, to 80,000 tonnes equivalent of lithium (LCE) a year in 2025, from 150,000 tons last year. MIIT reports that China's lithium hydroxide production will reach 360,000 tons by 2024. This represents a 26% annual increase.
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Tin production may resume in Myanmar's Wa State after a three-week slump
On Thursday, tin futures prices dropped to their lowest level in over three weeks. Analysts attributed the drop to a renewed expectation that shipments from Myanmar's Wa State could resume. The most active April contract at the Shanghai Futures Exchange ended daytime trading at 254,010 Yuan ($34.940) per metric ton after hitting the lowest price since February 5, at 253,220 Yuan per ton. The metal used in semiconductors had increased by 9.5% since the start of the year, reaching a record high of 267.900 yuan per ton on 24 February, due to declining stocks and a tight supply. Uncertainty about the return of supply was also heightened by the risk that conflict in Myanmar would intensify. On Wednesday, a notice circulated on Chinese social media purporting to come from the Wa State Industrial Minerals Management Bureau. It outlined the process for obtaining permits for mining and exploration. Mines in Wa provide 70% of Myanmar's tin, which is the third largest producer on the planet and the dominant supplier to China. The document's authenticity could not be independently verified. The Wa militia of Myanmar did not respond when asked for a comment. The notice stated that "that indicates that tin-ore production is expected to resume in Myanmar, which will greatly alleviate the tight supply," analysts from GF Futures wrote in a report. First Futures analysts expect the tin ore to slowly increase by the end the second quarter. If the resumption of production goes smoothly, 10,000 tons will be added in 2025. In August 2023, the militia affiliated with Myanmar's ethnic Wa minorities suspended all mining in areas they control to protect remaining mining resources. Customs data revealed that China's imports from Myanmar of tin-ore more than halved in the past year. Yunnan Tin shares, the world's largest refined tin manufacturer, dropped by 2.8%.
Swiss stocks: Factors to be on the lookout for February 27
Here are the key factors that could affect Swiss stocks Thursday:
CLARIANT AG
TotalEnergie has been accused of violating the 2020 Competition Law. The company says it denies these allegations.
MEYER BURGER TECHNOLOGY AGR
The bondholders have approved the changes to the convertible bonds that mature in 2027 or 2029, to inject new capital into business.
FEINTOOL HOLDINGS AG
The company did not provide any guidance for the year 2025. It cited continued low visibility in Europe.
KUDELSKI - The company plans to eliminate 160 jobs as part of its restructuring in 2025.
BUSINESS STATEMENTS
SULZER AG: The company reported sales of 3.53 billion Swiss Francs for the full year.
BOSSARD Holding AG - The company reported a full year EBIT totalling 100.1 million Swiss Francs.
BACHEM HOLDING AG: The company reported a group total sales of 605.3 millions Swiss Francs for the full year.
BYSTRONIC - The company anticipates a slight decline in sales and a loss of operating income for 2025.
SWISS RE AG
Q4 results due.
ANALYSTS VIEWS
ALCON AG - JP MORGAN RAISES TARGET PRICE TO CHF 94.7 FROM CHF 79.6
SIKA AG - JP MORGAN RAISES TARGET PRICE TO CHF 209 FROM CHF 200
ECONOMY
Swiss Q4 GDP is due at 8am GMT. Seen +0.2% Q/Q, +1.6% Year-on-Year
Swiss Q4 GDP SA & Sports final QQ due by 0800 GMT. Reporting by Zurich and Gdansk Newsrooms
(source: Reuters)