Latest News
-
Sabanci, a Turkish company, leaves Akcansa Cimento & CarrefourSA
Sabanci Holding, a Turkish conglomerate, announced that it would sell the remaining shares of cement maker Akcansa Cimento and exit retailer CarrefourSA. Analysts say the conglomerate is looking to streamline operations by selling assets with low margins of profit. According to a Monday filing, Heidelberg Materials purchased Sabanci's 39.72% share in Akcansa. The deal valued the company at $1.1billion on an enterprise-value basis. The transaction value wasn't disclosed. The deal will see Heidelberg Materials double its stake in?Akcansa from 69.44% to 79.44%. Akcansa has three cement plants and 26 ready-mixed?plants. It also operates five aggregate quarries, and five terminals for cement in five ports located along the Marmara Sea, Aegean Sea and Black Sea coasts of Turkey. Heidelberg Materials stated that the strategic advantages of Turkey's geographical position are linked to the future demand for infrastructure and reconstruction in the neighboring regions. This includes the Middle East and Black Sea. In the morning, Akcansa Cimento's shares rose more than 2% while Sabanci's fell 2%. Sabanci announced after the market closed on Friday it was leaving CarrefourSA. This is a Turkish grocery chain that it co-founded with France’s Carrefour. Yeni Magazacilik owned by the Aydin Family will purchase Sabanci's 57.12% share as well as Carrefour Nederland's 32.16% stake. The financial terms were not disclosed. CarrefourSA shares have fallen by more than 9%. Yeni Magazacilik owns A101, a discount retailer. (Reporting and editing by Daren Butler, Edwina Gibbs, and Mirac Eren dereli)
-
Gold drops on stronger dollar amid renewed US/Iran tensions
As the dollar strengthened, gold prices fell, and oil prices rose, as news spread that 'the Strait of Hormuz was closed again. This sparked inflation fears. As of 0730 GMT spot gold was down 0.7% to $4,792.89 an ounce after reaching its lowest level since April 13 earlier in session. U.S. Gold Futures for June Delivery fell by 1.4% to $4.812.20. Ilya 'Spivak is the head of global macro at Tastylive. He said that gold prices were lower today after the U.S. - Iran war ceasefire, which markets celebrated last Monday, appeared to have broken down. "This has brought back the familiar 'war-trade' dynamics that we have seen since the start of the conflict. Crude oil prices rose, which led to an increase in inflation expectations and a rise in both yields as well as the U.S. dollar. dollar." Dollar?index increased, making greenback priced bullion more costly for holders of other currencies. Benchmark yields on 10-year U.S. Treasury bonds increased by 0.6%. Stock markets shook and oil prices spiked, as tensions in the Middle East pushed shipping into the Gulf to the bare minimum. The U.S. seized a cargo ship from Iran that was trying to circumvent its blockade, and Iran has said that it will retaliate. This raises the possibility that even the two-day ceasefire that is supposed to be in place between the two nations may not last. Tehran has said that it will not take part in the second round of talks which the U.S. hoped to start before Tuesday's ceasefire. Prices of gold have dropped?about 8 percent since U.S. and Israeli strikes against Iran were launched in late February. This is due to fears that higher energy costs could cause inflation and raise global interest rates. Gold is considered a hedge against inflation, but higher interest rates reduce demand for this non-yielding investment. Gold demand at one of India's key buying festivals was muted on Sunday as record prices curbed jewelry purchases. This offset a modest increase in investment demand. (Reporting by Noel John in Bengaluru; Editing by Subhranshu Sahu, Mrigank Dhaniwala and Janane Venkatraman) (Reporting and editing by Subhranshu Dhaniwala, Mrigank Dahniwala, and Janane Vekatraman in Bengaluru)
-
Russia values its seized stake in UGC gold producer at $1.9 billion before the auction in May
The Russian Property Agency said that it valued a 67.2% stake in the gold producer UGC for 140.4 billion roubles (1.85 billion), ahead of the auction to sell this stake. This will take place at the beginning of May. A Russian court ruled in July 2025 that the majority share owned by Konstantin Strukov, an entrepreneur, should be transferred to state. This was a part of a broader pattern of nationalisations by Russian companies, and Western firms leaving Russia. Last year, the Moscow law firm NSP estimated that the authorities had confiscated assets worth $50 billion since Ukraine's conflict began. Last October, the central bank stated that the state violated the rights of minority shareholders by failing to make an offer after the seizure as required by law. After the sale, the new owner is expected to make a buyout offer. The auction was originally scheduled to take place last year, but was postponed as the gold price rose and the state sought a higher price. The stake is worth $1.6 billion at current market prices.
-
Gold drops on stronger dollar amid renewed US/Iran tensions
The dollar strengthened on Monday, and gold prices fell. Meanwhile, news that the "Strait of Hormuz" is once again closed pushed up oil prices, reigniting inflation concerns. As of 0537 GMT spot gold was down by 0.7% to $4,794.21 an ounce after reaching its lowest level since April 13 during the earlier session. U.S. Gold Futures for June Delivery fell 1.3% to $ 4,813.70. Ilya Spivak is the head of global macro at Tastylive. He said that gold prices were lower today because the U.S. - Iran war ceasefire, which markets celebrated last Friday, appeared to have broken down. "This has brought back the familiar 'war-trade' dynamics that we have seen since the start of the conflict. Crude oil prices rose, which led to an increase in inflation expectations and a rise in both yields and U.S. dollar. dollar." Dollar?index increased, making bullion priced in greenbacks more expensive for holders of other currencies. Benchmark 10-year U.S. Treasury yields increased 0.6%. Stock markets wobbled and oil prices spiked, as tensions in the Middle East pushed shipping into the Gulf to the bare minimum. The U.S. seized a cargo ship from Iran that was trying to circumvent its blockade, and Iran has said that it will retaliate. This raises the possibility that even the two-day ceasefire that is supposed to be in place between the two nations may not last. Tehran has said that it will not take part in the second round of talks the U.S. hoped to start before the ceasefire ends on Tuesday. Since the U.S. launched its strikes against Iran in late Feburary, gold prices have fallen about 8%. This is due to fears that higher energy costs could stoke inflation. Gold is a good inflation hedge but higher interest rates will reduce demand for this non-yielding investment. Gold demand at one of India's most important buying festivals was muted on Sunday, as record prices slowed jewellery purchases, which offset a modest increase in investment demand. Silver spot fell 1.3%, to $79.75 an ounce. Platinum dropped 0.8%, to $2,086.90. Palladium was 0.4% lower, at $1,553. (Reporting and editing by Subhranshu sahu, Mrigank dhaniwala; Noel John from Bengaluru)
-
Oil prices soar, while stocks sway as the Mideast ceasefire hangs on a thread
Stock futures and oil prices fell Monday, as rising tensions in the Middle East slowed shipping into and out of Gulf. However, traders held out hope for a solution and Asia's equity markets soared to record highs. Brent crude futures rose?about 6 percent to $95.36 per barrel. S&P 500 Futures dropped around 0.6%, and European Futures fell by 1.2%. Equity benchmarks in Seoul and Taipei, as well as Tokyo, shrugged off the risks and advanced, with Taiwan shares reaching a new record high, and the others not far behind. Iran has reinstated its de facto closing of the Strait of Hormuz despite Kpler data showing that over 20 vessels with oil products, metals and gas, as well as fertiliser, passed through the Strait on Saturday. This was the busiest?day?for this chokepoint since March 1. The Iran war ceasefire, which was supposed to last until Tuesday, is now in doubt, after the U.S. seizes an Iranian cargo ship, and the top military command in Tehran vows to retaliate. Damien Boey is a portfolio strategist with Wilson Asset Management, Sydney. "But, I think, in the end, both sides are looking to make a deal. That's why,?the markets are optimistic and not selling too much." Hong Kong's Hang Seng rose by 0.7%. Japan's Nikkei gained 0.8%. South Korea's KOSPI? rose by 1%. National Australia Bank (Australia's largest lender to business) was one of the markets that sounded the most cautious on Monday. It announced a $500-million impairment charge, citing the expectation that the war will increase bad debts. NAB shares fell 3.6%. Keir starmer, British prime minister, is scheduled to speak in Parliament on Monday. He will be facing calls for resignation due to his handling of Peter Mandelson's appointment as U.S. Ambassador despite the fact that he failed the vetting procedure. Question Peace Talks; Focus on Hormuz Iran's state news agency reported that it rejected new peace negotiations with the United States on Sunday. This came after Donald Trump, president of the United States, said he would send envoys to Pakistan for talks and launch new attacks on Iran if they did not accept his terms. "Our base-case (AKA guess), is still a resolution of the war. Paul Chew, Singapore's Phillip Securities head of research in a client note said that Trump was still focused on the November midterm elections. Bonds that had rallied on the Friday have retreated. The yield on benchmark 10-year Treasuries has risen 2.2 basis points, to 4.266%. German and French bond contracts fell. The dollar, which has been?sold' for most of the last two weeks, is now steady at $1.1760 to the euro and 158.8 Japanese yen. Wall Street indexes reached record highs Friday on the back of expectations for robust first-quarter results, with most of them coming this week. The week will also bring British inflation figures, U.S. Retail Sales and European Purchasing Managers' Index. However, the markets will focus on Gulf Shipping. Bob Savage is the head of BNY's markets macro strategy. He said that "the?critical barometer of risk" can be reduced to one single data point, which is the number of ships passing through the Strait of Hormuz. The immediate focus of the talks is oil and other shortages that are driving inflation.
-
FT reports that Germany will begin the privatization of its Gazprom division.
In a Monday interview with the Financial Times, the chief executive of Germany's Gazprom unit said that the country would begin the privatization process after Russia invaded Ukraine in 2022. The FT reported that the division, Securing Energy For Europe (SEFE), intends to raise 1,5 billion euros to 2 billion euros ($1.76 billion to $2.35 billion) via a capital rise to finance its expansion of infrastructure assets. SEFE (formerly Gazprom Germany) was nationalized in Berlin by 2022, after the former Russian parent of the group abandoned the division. This is an important part of Germany’s gas supply. The company operates 4,200 km (2,610 mi) or 10% of Germany's gas?network?system. According to EU rules, the German state must reduce its stake by no more than 25 plus one share before 2028. Egbert Laege, CEO of the company, told the FT the Iran War had given momentum to privatization plans. He also said that Middle East gas supplies were constrained and the need for reliable suppliers was highlighted. Laege said that Germany plans to dilute its SEFE stake after the initial capital increase, possibly via a second sale or an IPO. He said that given the short period of time we've been operating in, the IPO might be a little difficult for us. But in the end it's up to the market and the government.
-
Markets are light on volume but high on hope
Tom Westbrook gives us a look at what the European and global markets will be like today. The markets chose to ignore the weekend headlines and the threat of a wider Mideast conflict re-igniting,?and traded thinly on the hope of a deal that would?get? ships moving through the Strait of Hormuz. S&P 500 futures fell. The 0.6% decline - at Asia's noon - was due to tiny volumes, and it was a modest retreat from the record highs of Friday. The majority of Asian markets rose. European futures fell 1.1%. Oil futures are now around 5-6 % higher than their opening levels, but still a little shy of $100 per barrel. The U.S. announced that it had seized a cargo ship from Iran which tried to circumvent its blockade. Iran has vowed retaliation. Iran has also announced that it will not take part in the second round of talks, which the U.S. hoped to start before Tuesday's?ceasefire expires. European allies are concerned that an inexperienced U.S. negotiation team is pushing a headline-grabbing agreement with Iran, which could lead to larger problems later. Mark Carney, Canada's prime minister, said that close ties with the United States used to be a strength. But now they are a weakness. Although Iran had said that the strait was closed again, the markets were encouraged by the data from Kpler, which showed that more than 20 ships transited the strait on Saturday, the busiest since March 1. The?picture was also re-evolving around earnings, data and other market drivers. Keir starmer, the British premier, will be addressing parliament in London on Monday. He is facing calls for resignation over his handling of Peter Mandelson's appointment as U.S. Ambassador, whose ties with a convicted sex offender Jeffrey Epstein resulted in his dismissal last September. Market developments on Monday that may have a significant impact U.S.-Iran Relations Starmer's parliamentary address - Canada CPI
-
Is it time for us to give up on the hope that the Strait of Hormuz might open soon? Russell
The global oil market has been predicting that the closure of the Strait of Hormuz, which was a result of Israel and the U.S. attacking Iran in early February, would be temporary. This will also affect the supply of crude oil and refined products. This expectation is reflected in the price of crude oil futures. Although they have increased sharply since February 28, the prices are still far below the highs achieved in the aftermath of Russia's invasion in Ukraine in 2022. The paper 'crude market' has essentially believed U.S. president Donald Trump since the bombing began that the conflict would be short and Iran would accept U.S. conditions for a peace agreement. The reality is not what's being said on social media, and the more the Strait of Hormuz stays closed, the worse the energy crisis becomes, particularly in Asia. Brent crude futures dropped 9.1% to $90.38 per barrel on April 17, following Trump's claim that the Strait of Hormuz is fully open. They jumped 6.9% to $96.59 in the early Asian trading on Monday when it became apparent that the waterway remained closed. Trump's April 17 social media post that the Strait of Hormuz was "fully opened and ready for passage" prompted the latest optimism. Trump's claim was backed even by some Iranian officials. However, the optimism was short-lived, as the Islamic Revolutionary guards Corps moved to keep it closed due to Trump's decision of maintaining a U.S. Naval Blockade against Iranian ports. The market should ask itself several questions about the current state of affairs. What does this mean? Does it mean that the United States has effectively closed the Strait of Hormuz? Would it reopen if Trump lifted the blockade on Iranian ports? Is there enough trust between warring parties to accept the principle that the Strait should be opened to all? Iran's leaders are willing to negotiate, but will they do so with an administration that is known for abandoning agreements and has a history of doing so? These are all valid points of debate. However, what really matters is the fact that the strait remains closed and that the threat of an attack will likely keep it so for the hundreds of vessels that wait either side. SUPPLY STRESS During the?meantime, crude oil and refined products supply chains are more stressed. This is especially true in Asia which was the final destination of about 80% of the shipments that went through the Strait of Hormuz before the conflict. The crude futures market has largely been driven by the daily news and the underlying belief that the conflict would be short-lived. However, the physical oil and refinery products have shown a more serious supply issue in the near term. Singapore, the Asian trading center, has seen extreme levels of refined products. Jet fuel is also at an all-time high. The price of a barrel ended at $204.13 on April 17. This was more than twice the close of $93.45 on February 27, just one day before the start date of the war. Gasoil (the building block of diesel) ended the day at $145.27 per barrel on 17th April, up 59% from when the conflict began, but down from the $199.89 record set on 30th March. The biggest problem for Asia, however, is that the worst is yet to come as crude shipments in the region are falling sharply. According to Kpler, data from commodity analysts, Asia's seaborne oil imports were estimated at 20,62 million barrels a day (bpd), down from 22,36 million bpd a month earlier. The average of 26.76 millions bpd for the three months before the attack on Iran is now only about 26.2 million bpd in March and April. This is a particularly worrying situation for countries which are important refining and fuel exporting centres in the region. Singapore's crude oil imports will be?388,000 per day in April. This is down from?715,000 per day in March and?980,000 bpd?in January. South Korea's crude oil imports were estimated at 1,68 million barrels per day (bpd) in April. This is down from 2,24 million in March and 2,74 million in January. Japan's imports in April are expected to drop to 921,000 bpd from 1.63m bpd and 2.16m bpd?in March. India is the only country that has bucked this trend. Kpler estimates April imports at 4,67 million bpd. This is up from March's 4.45 million, but still below January's 5,15 million. India was able to secure Russian crude oil to offset the loss in barrels from the Middle East. 1.64 million bpd arrived in April, compared to 1.06 million in February. The problem with Asia's crude oil is that it's under pressure and that's why refineries will likely have to reduce their processing rates in the coming weeks. The real impact of Trump's war will only be felt when supply of refined products is more restricted. How long can the crude oil paper market maintain its hope that the conflict is going to end soon when reality appears to be moving in the opposite direction? You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
VEGOILS-Palm oil rises to track greater rival softs and crude
Malaysian palm oil futures rose over 1% on Wednesday to track competing edible oils and petroleum higher.
The benchmark palm oil agreement for August delivery on the Bursa Malaysia Derivatives Exchange rose 45 ringgit, or 1.14% to 3,976 ringgit ($ 843.62) a metric heap since 0249 GMT.
It dipped 0.15% during overnight trade.
FUNDAMENTALS
* Dalian's most active soyoil agreement edged up 0.05%, while its palm oil contract increased 0.73%. Soyoil prices on the Chicago Board of Trade gained 0.62%.
* China is importing record high soybeans from South America after the bumper harvests in Brazil and Argentina, LSEG stated in a farming report published on Wednesday.
* Grain trade association Coceral cut its rapeseed crop forecast to 19.4 million lots from 20.2 million in its previous projection and 21.4 million in 2023.
* France's farm ministry projected the winter rapeseed crop at 4.2 million lots for this year's harvest, down 1.2% from 2023.
* Palm oil is impacted by price motions in related oils as they contend for a share in the global vegetable oils market.
* Oil rates ticked higher on Wednesday on upbeat worldwide demand views from the U.S. Energy Info Administration and OPEC.
* More powerful crude oil futures make palm a more attractive alternative for biodiesel feedstock.
* The Malaysian ringgit, palm's currency of trade, strengthened 0.08% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
MARKET NEWS
* Asian shares were controlled on Wednesday as China's. inflation stayed soft, while the dollar held firm into a. high-stakes U.S. inflation report and Federal Reserve policy. meeting that will set the near-term course for interest rates.
DATA/EVENTS (GMT)
0130 China PPI, CPI YY May
0600 Germany HICP Final YY May
0600 UK GDP Est 3M/3M April
0600 UK GDP Price Quote MM, YY April
0600 UK Services MM, YY April
0600 UK Production Output MM April
1230 US Core CPI MM, SA; YY, NSA May
1230 US CPI MM, SA; YY, NSA May
1230 US CPI Wage Earner May
1800 US Federal Free market Committee announces
its choice on rate of interest followed by statement.
(source: Reuters)