2025-08-21 18:23
BERLIN/FRANKFURT, Aug 21 (Reuters) - Berlin is considering extending its trusteeship over the German assets of Russian oil producer Rosneft (ROSN.MM) , opens new tab for a sixth time, two people familiar with the matter said, as efforts to sell the business drag on. The repeated trusteeship renewals raise pressure on Berlin to come up with a better legal structure for Rosneft's activities in Germany. Sign up here. The situation is emblematic of the challenges Berlin faces in dealing with Russian assets in Germany at a time when efforts to end the war in Ukraine are picking up pace. Rosneft's German assets, including stakes in the Schwedt, MiRo and Bayernoil refineries, were put under government trusteeship in September 2022 in the wake of Russia's full-scale invasion of Ukraine, which sparked an energy crisis due to the collapse of Europe's relations with key supplier Russia. So far, Berlin has shied away from nationalising Rosneft's activities, opting instead to maintain de facto control over them via a trusteeship that still leaves legal ownership in Russian hands. The trusteeship, which has to be renewed every six months, currently runs until September 10 and is being enacted by the German network regulator, the Bundesnetzagentur, on behalf of the economy ministry. A formal decision about the trusteeship extension is still outstanding, the sources said. Rosneft, Russia's biggest oil producer, has sought to sell its German businesses, including a 54.17% stake in the PCK Schwedt refinery, but talks with potential suitors, including Qatar, have proven unsuccessful so far. The first source said talks between Rosneft and Qatar were ongoing. Rosneft also owns a 24% stake in the MiRo and a 28.57% stake in the Bayernoil refineries. The economy ministry said that Berlin was examining various options regarding the group's German assets. "Ensuring security of supply remains the primary goal," a spokesperson for the ministry said, adding that Berlin was not part of the sales negotiations and could not provide information about it. The Qatar Investment Authority and Rosneft did not respond to requests for comment. Gazprom Germania, now operating under the name Sefe, was nationalised by Berlin in 2022 after the group's former Russian parent ditched the division, which is a vital part of Germany's gas supply. "The federal government is locked into its own strategy. For the (conservatives) Christian Democrats, expropriating companies would be against their campaigns ... it would be a major step with a very high threshold," the first source said. https://www.reuters.com/business/energy/berlin-weighs-trusteeship-extension-rosnefts-german-assets-sources-say-2025-08-21/
2025-08-21 16:47
WARSAW, Aug 21 (Reuters) - Poland plans to increase the corporate income tax rate paid by banks to 30% in 2026, from the current 19%, to finance increased defence spending, Deputy Finance Minister Jaroslaw Neneman was quoted as saying by the state-controlled news agency PAP. The measure is intended to help finance Poland's defence needs, he said, adding the rate would be lowered to 26% in 2027 and further to 23% in subsequent years. Sign up here. Poland has been ramping up defence spending since the start of the war in neighbouring Ukraine and plans to allocate 5% of gross domestic product to its armed forces in 2026. The Finance Ministry said in a statement that it also plans a gradual reduction in the banking tax. The tax is paid by financial institutions and depends on their assets. "The Finance Ministry estimates that these changes will result in an increase in corporate income tax revenues by approximately 6.5 billion zlotys in 2026," the ministry said in a statement. "In total, over the next 10 years, the proposed solutions are expected to generate over 20 billion zlotys for the budget, representing a significant contribution from the banking sector to financing state budget expenditures...," it added. ($1 = 3.6692 zlotys) https://www.reuters.com/sustainability/boards-policy-regulation/poland-plans-increase-corporate-income-tax-banks-2025-08-21/
2025-08-21 15:56
LONDON, Aug 21 (Reuters) - The BlackRock Investment Institute believes investors should bulk up their exposure to hedge funds, the company said on Thursday. The research arm of the asset manager suggests investors dedicate up to 5% more of their portfolios from their current levels to hedge fund investments, the highest the institute has ever recommended. Sign up here. Investors might take money from holdings in developed market government bonds and instead use this money for less risky hedge funds, it said in a note. Allocators comfortable with a bit more risk could take money from the stocks portions of their portfolios and instead redirect that money at higher risk hedge funds. The asset manager side of BlackRock, which also acts as a middleman for investors wanting to spend money on hedge funds, oversees $76 billion in hedge fund assets including direct hedge fund investments and hedge fund-related businesses, the company website says. U.S. President Trump in August signed a White House order directing regulators to expand access to alternative investments to 401k retirement portfolios, like hedge funds, adding a new layer of risk open to ordinary investors. BlackRock, which lobbied the Trump administration to expand asset options, plans to launch its own retirement fund that includes private equity and private credit assets next year. The broader hedge fund universe returned 1.1% in July and returns are up 5.2% so far in the year to July 31, figures from PivotalPath showed. Hedge funds are up roughly 8% over the past five years on an annualised basis. The S&P 500 and Nasdaq stock indexes have both risen roughly 9-10% this year (.SPX) , opens new tab, (.IXIC) , opens new tab. JPMorgan's global government bond fund was up around 2% as of July 31, it says on the bank's website. (This story has been corrected to say BlackRock recommends dedicating up to an additional 5% of portfolios to hedge fund investments from current levels, not recommends dedicating up to 5% of their portfolios to hedge funds, in paragraph 2) https://www.reuters.com/sustainability/boards-policy-regulation/blackrock-research-arm-bigs-up-hedge-funds-investors-2025-08-21/
2025-08-21 15:42
LONDON, Aug 21 (Reuters) - Hedge funds and speculators picked WH Smith (SMWH.L) , opens new tab as their top target for short selling in July, before the British travel retailer announced an accounting error on Thursday that sent its shares tumbling more than 45%. WH Smith lowered its annual profit outlook on Thursday after a review revealed earnings had been overstated in its North America division. Sign up here. Speculators in July picked WH Smith as their top target among UK and European small-cap stocks for bets on a share price drop, a research report from Hazeltree also on Thursday showed. Hedge funds that had to disclose such bets in August to the UK regulator's public filings because of their size included Citadel Advisors and Man Group (EMG.L) , opens new tab. Analysts have cut target prices for WH Smith's stock and have pointed to how mounting debt has weighed on the company's cash reserves, compounding pressures from global economic uncertainty affecting the travel sector. A financial review identified an overstatement of around 30 million pounds ($40 million) in expected headline trading profit, WH Smith said, mainly due to supplier income in North America being booked too early. WH Smith, which in June sold its UK high street business to become purely a travel retailer, has been rapidly expanding in North America, which contributed about 20% of group revenue in fiscal 2024. The retailer said it now expects group pre-tax profit for the year ending August 31 to be around 110 million pounds, compared to analysts' estimates of 156.9 million pounds, according to LSEG data. Entertainment ticket sales companies, luxury drinks companies and semi-conductor manufacturers saw large portions of their stocks borrowed for the purpose of shorting, Hazeltree's Shortside Crowdedness Report showed. It gathers data from 700 asset managers, covering 15,000 stocks globally. Citadel and Man Group declined to comment. WH Smith did not immediately respond. https://www.reuters.com/sustainability/boards-policy-regulation/hedge-funds-picked-wh-smith-top-short-before-share-slump-hazeltree-data-shows-2025-08-21/
2025-08-21 15:27
Risk appetite dampens ahead of Jackson Hole remarks Spot gold prices fall as dollar gains Euro zone business activity expanded in August, PMIs show NEW YORK/PARIS, Aug 21 (Reuters) - Global equities fell on Thursday on investor jitters around the Federal Reserve's three-day annual Jackson Hole symposium, as gold prices eased under pressure from a stronger U.S. dollar. The symposium started on Thursday, with traders awaiting Fed Chair Jerome Powell's speech on Friday for hints about the likelihood of a September U.S. rate cut. Sign up here. U.S. Treasury yields climbed. Oil futures advanced, bolstered by signs of strong U.S. demand and uncertainty over efforts to end the war in Ukraine. The U.S. dollar rose 0.43% against a basket of other currencies . The MSCI World Equity Index (.MIWD00000PUS) , opens new tab fell 0.38%. "Jitters over what's going to transpire tomorrow at Jackson Hole are certainly weighing on risk appetite a little bit with chair Powell's speech," said Adam Turnquist, chief technical strategist for LPL Financial. On Wall Street, the Dow Jones Industrial Average (.DJI) , opens new tab 0.34% to 44,785.50, the S&P 500 (.SPX) , opens new tab lost 0.40% to 6,370.17 and the Nasdaq Composite (.IXIC) , opens new tab retreated 0.34% to 21,100.31. Big-box retailer Walmart's (WMT.N) , opens new tab quarterly results dampened sentiment. Traders had ramped up bets for a September cut following a surprisingly weak payrolls report at the start of this month, and were further encouraged after consumer price data showed limited upward pressure from tariffs. But they lowered their expectations slightly following the release of minutes from the Fed's July meeting. By Thursday, markets were pricing in a 70.4% chance of a September rate cut, compared to 83% on Wednesday, according to LSEG data . The pan-European STOXX 600 (.STOXX) , opens new tab closed flat, and major bourses were mixed. The European Union said it would strive to ensure lower U.S. tariffs apply to its car exports retroactively, as the EU and U.S. detailed commitments made in a deal reached last month. Analysts attributed a pullback in tech stocks this week to concerns that AI investments were not delivering returns. Euro zone business activity accelerated in August, PMI data showed, with Germany registering its fastest growth since March and France's downturn easing. Stocks had been near recent highs during Asian trading, and Australia's benchmark (.AXJO) , opens new tab hit a new record. The 10-year U.S. Treasury yield added 3.2 basis points to 4.328%. The euro was down 0.4% at $1.1604. U.S. President Donald Trump intensified his effort to influence the Fed on Wednesday, calling on Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia. Cook said she had "no intention of being bullied to step down" from her position at the central bank. Deutsche Bank analysts in a research note attributed a rise in gold overnight to renewed concerns about the Fed's independence. "The news was a reminder of the lingering concerns over future Fed independence and risks of fiscal dominance, though the extent of the market reaction was fairly modest," Deutsche Bank said. State Street Markets' Tim Graf said that although central bank independence was considered "sacrosanct" by markets, it was not yet problematic. "Markets quite rightly look through this, price maybe a little bit of risk premium for sure, but it's not something that I think really upsets the apple cart too much," he said. Spot gold prices fell 0.25% to $3,338.51. U.S. gold futures settled 0.2% lower at $3,386.50. Elsewhere in commodities, Brent oil futures finished up 1.24% at $67.67 per barrel and U.S. crude settled up 1.29% to $63.52. https://www.reuters.com/world/china/global-markets-update-6-graphic-2025-08-21/
2025-08-21 12:58
Israel calls up 60,000 reservists amid Gaza City offensive plans Hamas accepts ceasefire proposal; Israel yet to respond Thousands of Palestinians flee intensified shelling in Gaza City CAIRO/JERUSALEM, Aug 21 (Reuters) - The Israeli military maintained its pressure on Gaza City with heavy bombardments overnight, residents said, ahead of a Thursday meeting between Prime Minister Benjamin Netanyahu and his ministers on plans to seize the enclave's largest city. The military a day earlier called up 60,000 reservists in a sign that the government was pressing ahead with the plan, despite international condemnation. However, one military official said that most reservists would not serve in combat and that the strategy to take Gaza City had not yet been finalised. Sign up here. Calling up tens of thousands of reservists is also likely to take weeks, giving time for mediators to attempt to bridge gaps over a new temporary ceasefire proposal that Hamas has accepted, but the Israeli government is yet to officially respond to. The proposal calls for a 60-day ceasefire and the release of 10 living hostages being held in Gaza by Hamas militants and of 18 bodies. In turn, Israel would release about 200 long-serving Palestinian prisoners held by Israel. The Israeli government has restated that all of the remaining 50 hostages held by militants in Gaza must be released at once. Israeli officials believe that around 20 of them are still alive. In a sign of growing despair at conditions in Gaza, residents staged a rare show of protest against the war on Thursday. Carrying banners reading "Save Gaza, enough" and "Gaza is dying by the killing, hunger and oppression," hundreds of people rallied in Gaza City in a march organised by several civil unions. “This is for a clear message: words are finished, and the time has come for action to stop the military operations, to stop the genocide against our people and to stop the massacres taking place daily," said Palestinian journalist Tawfik Abu Jarad during the protest. GAZA CITY SEIZURE Netanyahu is scheduled to meet with some cabinet ministers on Thursday to discuss his plan to seize Gaza City, according to Haaretz and other Israeli media, without giving more details. The plan was approved this month by the security cabinet, which he chairs, even though many of Israel's closest allies have urged the government to reconsider. Netanyahu is under pressure from some far-right members of his coalition to reject a temporary ceasefire and instead to continue the war and pursue the annexation of the territory. In Gaza City, thousands of Palestinians have left their homes as Israeli forces have escalated shelling on the Sabra and Tuffah neighbourhoods. Some families have left for shelters along the coast, while others have moved to central and southern parts of the enclave, according to residents there. "We are facing a bitter-bitter situation, to die at home or leave and die somewhere else, as long as this war continues, survival is uncertain," said Rabah Abu Elias, 67, a father of seven. "In the news, they speak about a possible truce, on the ground, we only hear explosions and see deaths. To leave Gaza City or not isn't an easy decision to make," he told Reuters by phone. Israeli tanks have been edging closer to densely populated Gaza City over the past ten days. Israeli officials have said evacuation notices would be issued to Palestinians there before the military moves in. Later on Thursday, Israeli military spokesperson Avichay Adraee wrote on X that the military had started making what he said were initial warning calls to medical and international organisations operating in Gaza's north, telling them that Gaza City residents should start to prepare to move out of the city and towards the south. Adraee shared a recording of what he said was an Israeli officer telling a Gazan health ministry official that hospitals in southern Gaza should also prepare to receive patients from medical facilities in the north, who will be forced to evacuate. Reuters couldn't independently verify the authenticity of the call, although the Israeli military has in the past contacted officials and civilians in Gaza to warn them to relocate. Two more people have died of starvation and malnutrition in Gaza in the past 24 hours, the territory's health ministry said on Thursday. The new deaths raised the number of Palestinians who have died from such causes to 271, including 112 children, since the war began. Israel disputes malnutrition and starvation figures posted by the Gaza health ministry. https://www.reuters.com/world/middle-east/israel-maintains-military-pressure-gaza-city-ahead-planned-offensive-2025-08-21/
