2025-08-19 05:39
Aug 19 (Reuters) - China has lifted curbs on the export of rare earth magnets to India, local Indian media reported on Tuesday. Sign up here. https://www.reuters.com/world/china/china-lifts-curbs-export-rare-earth-magnets-india-says-indian-media-2025-08-19/
2025-08-19 05:29
Scheme agreement signing not likely by August 22 Consortium needs more time for approvals Santos defers HY results to August 25 Aug 19 (Reuters) - Santos (STO.AX) , opens new tab said on Tuesday the Abu Dhabi National Oil Company (ADNOC)-led consortium will not be able to finalise its $18.7 billion bid for the Australian gas producer for at least a month, well past the exclusive due diligence deadline. Shares in Santos, Australia's second-largest independent gas producer, fell as much as 3.5% to a more than five-week low of A$7.68 as investors questioned whether the delay could kill the deal. Sign up here. "The market is telling you there's increased risk and uncertainty," said James Hood, Regal Funds Management's senior energy analyst. Santos shares have traded consistently well below the proposed offer of A$8.89 from the consortium led by ADNOC's international investment arm XRG on June 16, which analysts have attributed to scepticism the transaction will proceed. Exclusive talks between Santos and the consortium, which includes Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, were due to finish on Friday. The consortium told Santos it would need at least four more weeks to secure all required approvals for its bid to be formalised. XRG said in a separate statement it would continue its due diligence and progress negotiations to reach a formalised offer. Taking into account net debt, the deal would give Santos an enterprise value of A$36.4 billion, which would make it the largest all-cash corporate buyout in Australian history, according to FactSet data. "This was never going to be an easy transaction to pull off with the confluence of domestic energy security and national interest considerations as well as the multitude of hard to please stakeholders involved," said Kaushal Ramesh, vice president, gas and LNG research at Rystad Energy. The deal requires approval from regulators in Australia, Papua New Guinea, and the U.S. given Santos holds assets in each of those jurisdictions. Approval from Australia's Foreign Investment Review Board could be a major hurdle for the transaction with the government likely to be wary to hand control of key energy assets to Middle Eastern investors, analysts said. "I don't think (the delay) is going to change the overall risk to the takeover, and that's still the Foreign Investment Review Board. I think that's probably the biggest risk to the whole takeover," said Jamie Hannah, deputy investment director at Van Eck, which is a Santos shareholder. Australia's gas market is politically sensitive as the country's competition regulator has warned that the populous eastern states face a shortfall of gas from 2028 without new investment. Santos has long said its long-delayed Narrabri gas project in New South Wales state could help fill the supply gap. Woodside (WDS.AX) , opens new tab and Santos last year scrapped $52 billion merger talks after failing to reach an agreement. Woodside Chief Executive Meg O'Neill said on Tuesday the company was not interested in making a rival bid. If successful, the consortium would gain control of two Australian liquefied natural gas operations - Gladstone LNG and Darwin LNG - as well as stakes in PNG LNG and the undeveloped Papua LNG. Santos' interests in Papua New Guinea are considered its most prized assets. The company is also developing an oil project in Alaska, Pikka, due to start producing in mid-2026. Meanwhile, Santos said it would defer its interim earnings report to August 25 from August 20. https://www.reuters.com/business/energy/australias-santos-flags-delay-finalising-187-billion-adnoc-led-buyout-2025-08-19/
2025-08-19 04:59
SINGAPORE, Aug 19 (Reuters) - The U.S. dollar made tepid gains against its major peers on Tuesday as global markets assessed the outcome of a White House summit with European nations that could determine the next phase of the war in Ukraine. The dollar index rose 0.1% to 98.192 after U.S. President Donald Trump told President Volodymyr Zelenskiy on Monday that the United States would help guarantee Ukraine's security in any deal to end the war with Russia. Sign up here. "At the moment, markets are cautious," said Tina Teng, an independent market analyst in Auckland, as traders weighed the possible implications for global energy markets. "The U.S. dollar is going stronger against other currencies and the risk-on sentiment is still leading markets at the moment," she added, citing stock indexes at record highs. Markets are also looking this week to the Federal Reserve's annual symposium in Jackson Hole for any clues on the likely path of interest rates. Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Many investors are away for summer holidays in the northern hemisphere, while markets will be left with few catalysts amid a thin diary of data releases on Tuesday. The euro held steady at $1.1656 , down 0.04% so far in Asia, shuffling along the midpoint of the trading range it has sat in for the past two weeks. "The dollar is the safe haven of choice when geopolitical risks are increasing," said Bart Wakabayashi, Tokyo branch manager at State Street. If a Ukraine deal is reached that involves European countries taking up the burden, a relief rally could result in outflows from the euro and the British pound, he added. "You would suspect that would flow into the dollar, so we could see dollar strength." Cryptocurrencies were an exception to the sleepy mood in markets, with bitcoin falling 1.3% to notch a third straight day of declines after hitting a record high on Thursday. Ether slumped 2.9%, extending losses for a second day after failing to breach a similar threshold last week. Against the yen, the dollar was 0.1% weaker at 147.770 yen and showing little sign of willingness to exit the trading channel it has sat in all month, after an auction of long-dated Japanese government bonds received weaker demand than seen in July. The yield on the 20-year securities rose 1.5 basis point to 2.59% after the debt sale. Japanese stock markets lost momentum on Tuesday, with the Nikkei 225 (.N225) , opens new tab edging back from record highs seen earlier in the trading session and the Topix (.TOPX) , opens new tab clinging to its early gains. The Australian dollar fetched $0.6489 , easing off gains after Westpac's consumer sentiment data for August rose to a 3-1/2-year high. The Hong Kong dollar , which the city's de facto central bank allows to trade in a tight range of between 7.75 and 7.85 against the greenback, was one of the biggest movers, trading 0.3% stronger at 7.7944 to its U.S. counterpart as interbank rates surged to a three-month high. The kiwi pared earlier gains and was last flat at $0.59245 . Sterling also gave up on earlier signs of life, last trading at $1.3501 , slumping back towards the low end of its range recorded over the past week. https://www.reuters.com/world/middle-east/dollar-firms-markets-digest-ukraine-summit-2025-08-19/
2025-08-19 04:35
A look at the day ahead in European and global markets from Rocky Swift Volodymyr Zelenskiy dressed for success in his latest meeting with U.S. President Donald Trump at the White House. Sign up here. Trump complimented Zelenskiy on his black suit in a briefing punctuated with smiles and laughter. It was a much different scene than their chilly meeting in February, when the Ukrainian president's military-style attire in the Oval Office drew ire. Zelenskiy declared it "the best of our meetings," and Trump said the United States would help guarantee Ukraine's security in any deal to end Russia's hostility there. Whether it was the suit or just growing desperation to end a war that has cast a shadow over the region for more than three years, enthusiasm was contagious. NATO Secretary General Mark Rutte said Trump's meeting with Zelenskiy and other European and NATO partners was very successful. German Chancellor Friedrich Merz said his expectations for the gathering were "exceeded." Even Russia joined in, with special envoy for investment and economic cooperation Kirill Dmitriev calling Monday an "important day of diplomacy." On a largely directionless day in Asian markets, European equity futures traded higher. Pan-region Euro Stoxx 50 futures , German DAX futures , and FTSE contracts were all up about 0.2%. While traders keep one eye on geopolitical developments, the other will be focused on the Federal Reserve's August 21-23 Jackson Hole symposium. Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework at the annual gathering. Money markets reflect an 83.6% chance of a quarter-point rate cut at the Fed's meeting on September 17, according to CME FedWatch. Fed Governor Michelle Bowman, one of two dissenting voices favouring a rate cut at last month's meeting, is due to speak today. Key developments that could influence markets on Tuesday: - Home Depot Q2 results - U.S. housing starts, building permits for July - Canada consumer price index for July - Debt sales: German 5-year notes, British 10-year gilts - Fed Vice Chair Michelle Bowman to speak at the Wyoming Blockchain Symposium 2025 - 1810 GMT. - Riksbank monetary policy meeting https://www.reuters.com/world/china/global-markets-view-europe-2025-08-19/
2025-08-19 04:28
BOJ must gradually raise rates, better to start early, Kono says Weak yen a root cause of painful inflation, must be tackled Japan must reverse weak yen, seek somewhat stronger yen Japan needs new framework replacing 'Abenomics' TOKYO, Aug 19 (Reuters) - Japan must raise interest rates and get its fiscal house in order to strengthen a weak yen that has pushed up inflation and brought pain to households, veteran ruling party lawmaker Taro Kono told Reuters on Tuesday. The Bank of Japan (BOJ) ended a massive, decade-long stimulus programme last year and raised short-term rates to 0.5% in January, on the view that Japan was on the cusp of durably hitting its inflation target of 2%. Sign up here. Kono, a former foreign minister who is touted as being among the candidates to become a future prime minister, said it was undesirable for inflation-adjusted real borrowing costs to stay negative for a long time. "I think it's better to start early," he said in an interview, replying to a question on how soon the central bank should resume interest rate hikes. "It's important to send out a message that Japan will pull out of a situation where real interest rates are negative," he said, stressing the need for the BOJ to keep raising rates gradually. Asked about market expectations for the BOJ to raise rates again by year-end, Kono said, "I won't comment on each move. But I feel like (rate hikes) have already come too late." While consumer inflation has kept above 2% for well over three years, the bank's Governor Kazuo Ueda has stressed the need to tread cautiously on further rate hikes, due to an expected hit to the economy from U.S. tariffs. Critics have blamed the slow pace of BOJ rate hikes for keeping the yen weak and pushing up import costs. Once seen as a boon for Japan's export-heavy economy, the weak yen is now the root cause of crippling inflation that is eroding corporate margins and hurting pensioners, Kono said. The government and the BOJ must agree on a new economic framework that replaces so-called "Abenomics", a mix of massive monetary and fiscal stimulus deployed by former premier Shinzo Abe in 2013 to end deflation, he said. "The BOJ should gradually raise interest rates, while the government should restore fiscal health under a new accord that replaces 'Abenomics'," Kono said. "The best step to combat rising living costs would be to reverse the weak yen and seek a somewhat stronger yen." Kono ran unsuccessfully in last year's race to lead the ruling Liberal Democratic Party (LDP) that was won by incumbent premier Shigeru Ishiba. The LDP's huge loss in last month's upper house election has provoked growing calls within the party for Ishiba to step down, and to hold another race to choose a new leader. Kono declined to comment when asked whether he would run again if the LDP were to hold another leadership race. https://www.reuters.com/business/japan-must-raise-rates-get-fiscal-house-order-says-veteran-lawmaker-kono-2025-08-19/
2025-08-19 02:59
MUMBAI, Aug 19 (Reuters) - The Indian rupee is expected to open little changed on Tuesday, defying the dollar's advance against major peers and Asian currencies, with traders noting the local unit has managed to pause its recent weakening trend. The 1-month non-deliverable forward indicated the rupee will likely open largely unchanged to the U.S. dollar, from 87.35 on Monday. Sign up here. The rupee, which came near slipping past its all-time low of 87.95 two weeks ago, has since managed to crawl back up. Support has come from the Reserve Bank of India's resolve to prevent the local currency from touching another record low, unwinding of long dollar positions, and more recently, India's planned tax cuts and cautious optimism around the Ukraine-Russia conflict. The rupee inched higher last week, posting its first weekly advance in over a month, and inched up 0.2% on Monday. The rupee's slide "has been checked for now" and the "bias is now more neutral", a currency trader at a Mumbai-based bank said. "Near term, it should stay in a tight range unless fresh triggers emerge from the U.S. tariff headlines." DOLLAR CLIMBS The dollar index rose on Monday and inched up slightly on Tuesday while Asian currencies dipped. Investors weighed signs of progress toward halting the Russia-Ukraine conflict and awaited Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday. Ukrainian President Volodymyr Zelenskiy said security guarantees for his country could be finalised within 10 days following talks with U.S. President Donald Trump and European leaders. A peace deal between Russia and Ukraine would boost overall risk appetite, a positive for the rupee. It could benefit the currency more directly by reducing the likelihood that the U.S. would proceed with additional tariffs on India for purchases of Russian oil, which are scheduled to take effect on August 27. KEY INDICATORS: ** One-month non-deliverable rupee forward at 87.46; onshore one-month forward premium at 12 paise ** Dollar index up at 98.21 ** Brent crude futures down 0.4% at $66.3 per barrel ** Ten-year U.S. note yield at 4.34% ** As per NSDL data, foreign investors sold a net $138.1mln worth of Indian shares on August 14 ** NSDL data shows foreign investors bought a net $182.5mln worth of Indian bonds on August 14 https://www.reuters.com/world/india/rupee-shrug-off-dollar-strength-recent-weakening-bias-pause-2025-08-19/
