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2025-05-13 12:16

NEW DELHI, May 13 (Reuters) - India has approved three Russian insurers, including a unit of top lender Sberbank (SBER.MM) , opens new tab, to provide marine cover to ships arriving at Indian ports, a government notification shows, helping Moscow maintain oil supplies to a key market. India is the top buyer of Russian seaborne oil after China since Western nations shunned purchases and imposed sanctions on Moscow for its military action in Ukraine. Sign up here. With the granting of the permits to Sberbank Insurance, Ugoria Insurance Group and ASTK Insurance Company, India now recognises eight Russian entities that are eligible to provide protection and indemnity (P&I) coverage for ships. The permits for Sberbank Insurance, Ugoria and ASTK are valid until February 20, 2026, the order showed. Reuters last month reported that the three entities were seeking approval from the Indian shipping regulator to provide P&I cover. Insurance is essential for maritime transport, particularly oil cargoes that require the highest safety standards due to the risk of spills. Russian entities are not a part of the International Group of P&I Clubs, which provides liability cover for personal injury or environmental clean-up claims for the majority of the world's tankers. Growing scrutiny of Russia's oil supply chain by the United States and the European Union, including compliance with a price cap set by the Group of Seven democracies for the use of Western ships and insurance, has made it increasingly difficult for Moscow to export its oil. To navigate the restriction, Indian refiners buy Russian oil on delivered basis, with sellers providing vessels and insurance. India's oil secretary said in February that it only wanted to buy Russian oil supplied by companies and ships that have not been subject to U.S. sanctions. https://www.reuters.com/world/india/india-approves-more-russian-insurers-provide-marine-cover-2025-05-13/

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2025-05-13 12:08

LONDON, May 13 (Reuters) - Bank of England Governor Andrew Bailey and British finance minister Rachel Reeves have raised the prospect of the BoE making money from its new system for providing reserves to banks after racking up huge losses from its bond-buying programme. The BoE has increasingly used its repo facilities as it sells down the holdings of government bonds that it began to buy as a stimulus measure during the global financial crisis of 2008-09 and which it continued to use until 2022. Sign up here. The long-run cost of the bond purchase programme could be around 120 billion pounds , opens new tab ($158.51 billion) as rising interest rates push down the value of the bonds. The government foots the bill for losses incurred by the BoE. In an exchange of letters published on Tuesday, Bailey and Reeves said the new, repo-based system was likely to prove less damaging for the public finances. "Dependent on the evolution of demand for reserves and the design of the Bank's repo facilities, the transition to repo is expected to generate income for the Bank and broader public sector," Reeves said in her letter to Bailey. The BoE governor said he expected the change to be profitable for the central bank. "As banks will be paying for the reserves they demand in this framework, we expect that our operations will generate positive income in the future," he said. ($1 = 0.7571 pounds) https://www.reuters.com/world/uk/uks-reeves-bailey-hope-repo-system-will-make-money-boe-2025-05-13/

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2025-05-13 12:02

ABIDJAN, May 13 (Reuters) - Ghana should be able to reduce its debt of $2.5 billion owed to independent power producers and gas suppliers by the end of the year, President John Dramani Mahama said on Tuesday. Last year, the West African country reached an agreement with independent power producers to restructure legacy debt of around $1 billion as part of efforts to deal with its overall debt burden. Sign up here. But arrears to service providers have continued to pose a challenge to Ghana's economy since Mahama was sworn in for a second term as president in January. "I'm sure by next year, our partners would be happy because we would have dealt appropriately with the debt overhang," Mahama told a forum in Ivory Coast. He said that state-owned utility ECG was inefficient in collecting revenue and was experiencing losses of about 40%. To be able to pay for electricity, Mahama said he was bringing the private sector into the billing process. "People are queuing up, I said they should wait. We're going to do expressions of interest," Mahama said when asked about interest from private investors. The cabinet will decide whether Ghana should have one or multiple partners working on the billing, he said, adding that there must be local participation. Mahama also said companies should take advantage of oil and gas extraction before the world transitions to renewable energy. "Oil is in transition and so everybody who has any assets should be pumping like there's no tomorrow ... I would lay a red carpet to anybody who wants to drill and pump oil to do so," he said. https://www.reuters.com/world/africa/ghana-aims-reduce-25-billion-debt-owed-power-producers-by-year-end-2025-05-13/

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2025-05-13 11:58

Reuters poll graphic on U.S. Treasuries safe haven status BENGALURU, May 13 (Reuters) - Concerns for the safe haven status of U.S. Treasuries are rising with benchmark 10-year yields expected to drift sideways over the coming year, pinned between trade war-driven recession and inflation, according to a Reuters poll of bond strategists. Since U.S. President Donald Trump’s April 2 reciprocal tariff announcement, the 10-year Treasury yield has whipsawed in a 75-basis-point range, plunging to a six-month low and then rebounding to a two-month high within a week, driving a key bond volatility index (.MOVE) , opens new tab to an 18-month high. Sign up here. Battered investor sentiment has only partially recovered since an earlier 90-day tariff reprieve and a U.S.-China trade truce announced on Monday. Interest rate futures are now pricing two Federal Reserve rate cuts this year compared to three just a few days ago. Over 54% of bond strategists, 19 of 35, in a May 8-13 Reuters survey said they were concerned about the traditional safe haven status of U.S. Treasuries, which provide the benchmark for pricing in global capital markets. That was up from about 47% in an April poll, and in line with the over-55% of FX strategists who expressed similar worries about the U.S. dollar a week ago. "I believe the appeal of Treasuries as a safe haven has eroded due to two key factors: the potential for a significant increase in supply and the (Trump) administration’s tariff policies," said Jabaz Mathai, head of G10 rates and FX at Citi. "Right now, tariffs are the dominant driver, but as we move through the rest of the year, fiscal policy will also come into play," he said. "If the administration manages to push through tax cuts — and not just extensions of the 2017 cuts, but also other promises like eliminating taxes on Social Security benefits, tips and possibly lowering corporate taxes — that could further unsettle investors." U.S. debt currently stands at $36.2 trillion, according to the Treasury Department. "Investors are more worried now about the long-term fiscal situation. It doesn't look like they have a plan to pay what they owe or at least keep the fiscal deficit from increasing," said Lars Mouland, chief rates strategist at Nordea. Despite contracting last quarter on a record-high trade deficit driven by businesses scrambling to get ahead of tariff hikes, the world's largest economy is chugging along, leaving policymakers in no hurry to ease rates, recent official data suggest. But sagging investor and consumer sentiment has markets betting on an economic slowdown. Asked which would have the bigger impact on their yield forecasts, a near-60% majority - 19 of 33 fixed-income strategists, chose recession risks over higher inflation. "As we expect the Fed to hold rates steady until December in our baseline forecast, we are clearly biased for the Fed choosing to fight the inflation side of its mandate," said Steven Zeng, senior U.S. rates strategist at Deutsche Bank. "But in the context of our 10-year yield forecast, whether or not the U.S. enters into recession this year will have the bigger impact." Median forecasts from over 50 analysts in the survey showed the U.S. 10-year yield, currently 4.46%, would decline to 4.26% in three months, tread sideways to 4.27% at end-October and to 4.25% in a year. "The U.S. administration is realizing the economic harm high tariffs can cause, and it appears they're probably more sensitive to bond yields than equity markets," said Citi's Mathai. "So it would seem logical we are past the peak in tariffs and the downside to the economy will probably be less severe than we thought in the beginning of April." Mathai added: "We might be stuck in a range over the next few months, but by the time we turn the corner into 2026, bond yields will likely be lower than they are now." The interest rate-sensitive U.S. 2-year yield was forecast to decline more sharply, by 30 bps to a median 3.69% in six months and to 3.50% in a year. https://www.reuters.com/markets/us/safe-haven-concerns-mount-us-treasuries-face-twin-recession-inflation-risks-2025-05-13/

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2025-05-13 11:47

IQE considers dual sourcing to mitigate tariff impact CEO Meier discusses potential US production move CEO says a full sale of Taiwan ops makes timing sense May 13 (Reuters) - Apple supplier IQE (IQE.L) , opens new tab is looking at moving some production to the United States, expanding its supplier base, and sharing tariff costs with customers as it guards against potential U.S. duties on the chips sector, its new CEO told Reuters on Tuesday. U.S. President Donald Trump said last month he was considering tariffs on semiconductor chips, starting at "25% or higher", but did not specify when these could come into effect. Sign up here. Jutta Meier, who was confirmed as CEO on Tuesday, said that IQE, which supplies the compound semiconductor wafer products used in the iPhone's facial recognition sensor, was constantly talking to customers to find ways to mitigate tariff risks. "The other thing is we need to look at alternative sourcing activities, moving some of our production inside of the U.S. and ensuring that there's production there, but obviously that will take investment, that really takes time to do that," she added in an interview. For instance, the Cardiff-based company is looking at gallium supplies from outside of China as part of its strategy to ensure it is not reliant on any single supplier, Meier said. Trump has announced a swathe of tariffs on global trading partners as well as sectors such as autos, and steel and aluminium. Some broader tariffs have been delayed while countries try to negotiate a deal with the U.S. administration. There is "currently no direct impact" from the implementation of U.S. tariffs, said IQE, which has manufacturing sites in the U.S., Britain and Taiwan. DIVERSIFICATION STRATEGY IQE has said it could sell its Taiwan business as part of a strategic review to cut debt and boost growth, having previously considered an IPO of the operation. "(A) full sale ... makes sense from a timing perspective and also from the valuation that we will get for the remaining company, and we can definitely use the proceeds much quicker for our growth and diversification strategy," said Meier. IQE expects 2025 revenue to be within market expectations of between 115.1 million and 123 million pounds ($151.9 million-162.5 million), according to a company-provided consensus. It reported 118 million pounds in revenue for 2024. Shares in the company were up 4.6% in afternoon trading. ($1 = 0.7578 pounds) https://www.reuters.com/technology/uk-chip-supplier-iqe-sees-fy25-revenue-within-market-view-2025-05-13/

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2025-05-13 11:33

Raising tops original target of $1.5 billion Funds to be invested in oil and gas assets with steady output Largest energy income fund ever raised by Kayne Anderson May 13 (Reuters) - Kayne Anderson has closed its third energy income fund with $2.25 billion of total capital committed, the investment firm said, far exceeding an initial target as investors show renewed appetite for oil and gas assets. The fund, Kayne Private Energy Income Fund III, will invest in high-quality private companies focused on producing oil and natural gas from wells that generate stable cash flows, according to a statement seen by Reuters. Sign up here. This type of production suits income-focused strategies, where investors are regularly paid out a portion of an investment's earnings, on top of the traditional private equity return generated by assets appreciating in value. Mark Teshoian, co-head of Kayne Energy Private Equity, said the success of the third fundraise, which initially targeted $1.5 billion, validates the income strategy the firm has pursued over the last decade. Investor interest in oil and gas-focused private equity has been returning, after a period earlier this decade where it fell out of favor. Strong returns from the industry have helped drive the attraction, while regulatory pushback on environmental issues that previously dampened interest have ebbed away under the Trump administration. A recent clutch of private equity funds have been raised by firms, such as Kayne Anderson, that have strong track records in oil and gas. The net internal rate of return (IRR) of Kayne's first two income funds, and associated co-investments, was around 24.4%, according to a person familiar with the matter. IRR is a key metric which helps judge profitability within private equity. Danny Weingeist, who also leads Kayne Energy Private Equity, said both new and existing investors contributed to the third fund. Including co-investments and associated funds, the recent fundraising efforts secured more than $2.8 billion. The third fund has already begun deploying capital: South Wind Exploration & Production received $400 million of equity capital, according to an April 29 statement. The management team of South Wind previously ran Flywheel Energy, a Kayne Anderson-backed energy producer until it was sold last year. Teshoian said Kayne's income strategy was well-suited to periods of market volatility, and today's environment provided a compelling entry point for new investments. U.S. crude prices touched a four-year low last week amid concerns over increased supply from the OPEC+ cartel, and sluggish global growth stemming from U.S. President Donald Trump's trade war. While such conditions have led executives of large publicly-listed shale producers to cut spending and output targets, the types of oil and gas wells favored by income strategies are less impacted as they are focused on milking existing production. https://www.reuters.com/business/energy/kayne-anderson-raises-225-billion-third-energy-income-fund-2025-05-13/

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