2025-09-18 06:03

Anglo American and Glencore each own 44% of Collahuasi copper mine Teck's Quebrada Blanca faces cost overruns, waste issues Copper miners are seeking collaboration to offset lower ore grades SANTIAGO, Sept 18 (Reuters) - The proposed Anglo American-Teck merger has revived long-standing ambitions to share infrastructure at two major mines in northern Chile, but analysts say the plan could face hurdles to gain buy-in from Swiss miner and trader Glencore. Glencore (GLEN.L) , opens new tab is an equal partner with London-listed Anglo (AAL.L) , opens new tab at Collahuasi, one of the world's largest copper deposits that sits about 10 kilometers (6.21 miles) from Canadian miner Teck's (TECKb.TO) , opens new tab flagship Quebrada Blanca mine. Sign up here. Investors see combining operations at the two sites as a linchpin to the Anglo-Teck merger, one of the biggest deals in mining history that would catapult two medium-sized mining firms into the top tier of global copper producers just ahead of an expected boom in demand. Yet the companies will face questions about how such a fusion would work in practice, because of issues critical to Glencore such as valuation, supply agreements, profit sharing and governance structure, as well as how to manage mining waste problems at Quebrada Blanca and find cost savings from two separate sets of infrastructure. "The potential for synergies is tremendous, but they're not easy at all. They're different operating styles, different management approaches — they're different beasts," said Jorge Cantallopts, head of Chile's Center for Copper and Mining Studies (CESCO). Glencore's support for a tie-up between the two Chilean mines hinges on the valuation of Quebrada Blanca, a source familiar with the matter said. The Keevil family, which controls Teck's class A shares, backed the merger, believing Teck lacked the resources to invest further in the costlier-than-expected project, the source added. The Keevil family did not immediately respond to a request for comment. Teck, when consulted by Reuters, said it is working on operational issues at Quebrada Blanca. Quebrada Blanca has had cost overruns and serious problems with mining waste at its expansion project launched in 2023 known as QB2, forcing it to lower production guidance and defer decisions on growth plans. Some analysts cautioned output could suffer into 2026. Glencore declined to comment. Collahuasi, which operates as an independent unit, said it would not comment because the merger announcement came from one of its shareholders. NEW COLLABORATIONS Anglo and Teck plan to construct a conveyor belt between the two mines to feed Collahuasi's high-quality ore for processing at Quebrada Blanca, but have not detailed if they would merge the mines into an independent business unit. Anglo CEO Duncan Wanblad pointed out that Glencore has previously called for sharing operations between Quebrada Blanca and Collahuasi. "Glencore has been for a long time very interested in getting the adjacency benefits out of Quebrada Blanca," he told journalists last week, adding that the company had not yet discussed the merger with Glencore but he expected the plan would appeal to all shareholders. In announcing the tie-up, Anglo and Teck said "synergies" from Quebrada Blanca and Collahuasi would save $800 million a year and boost annual production by 175,000 metric tons. Glencore and Anglo each own 44% of Collahuasi, alongside a consortium led by Japan's Mitsui. Teck's minority partners at Quebrada Blanca are Chilean state-run copper producer Codelco and a partnership between Sumitomo Metal Mining and Sumitomo Corp of Japan. Codelco did not immediately respond to a request for comment, and Mitsui declined to comment. Both Sumitomo companies said they are monitoring the potential merger. A former Collahuasi CEO said a mine-sharing scheme never previously came to fruition because each company wanted to maintain its autonomy and the timing was never right. "Anglo and Teck are presenting this as part of the deal, but they can't do that if Glencore and Mitsui don't agree," the executive noted. Copper miners are increasingly exploring collaboration to compensate for declining ore grades and to dodge the lengthy permitting processes and hefty investments required for new mines. Anglo on Tuesday announced a finalized agreement to share operations at its Los Bronces mine in central Chile with Codelco's neighboring Andina, a plan that the companies said will boost output by 120,000 metric tons of copper a year and reduce costs by about 15% per ton. https://www.reuters.com/world/americas/anglo-teck-merger-unlock-chile-mine-synergies-if-glencore-signs-off-2025-09-18/

2025-09-18 06:01

Incoming Finance Minister and central bank chief discussed currency stabalisation Exports and tourism seen at risk from strong baht BANGKOK, Sept 18 (Reuters) - The Thai government will work with the central bank to manage the baht currency after it rose to its strongest levels in four years, and will monitor capital inflows and gold trading for any irregularities, the incoming finance minister said on Thursday. Ekniti Nitithanprapas told reporters that he discussed stabilising the baht with Vitai Ratanakorn, who takes over as Bank of Thailand Governor on October 1. Sign up here. Ekniti also said that any unusual capital inflows or gold trading would be investigated, although his deputy Vorapak Tanyawong acknowledged the baht could rise further due to foreign buying of bonds and stocks. Following the comments the baht softened to 31.88 per dollar from Wednesday's close of 31.73, but was still up about 8% this year, the second-largest gain amongst Asian currencies behind only the Taiwan dollar. The currency's strength relative to regional peers is seen as a threat to exports and tourism, both key drivers of Southeast Asia's second-largest economy. Earlier this week the central bank said it was considering a tax on gold trading along with other measures to restrain the baht's strength. In the January to July period, Thailand's gold shipments surged 82% year-on-year to $7.6 billion, with unusually large export volumes worth $2.1 billion to Cambodia alone. https://www.reuters.com/world/asia-pacific/thai-government-says-will-work-with-central-bank-tackle-bahts-strength-2025-09-18/

2025-09-18 05:38

Sept 18 (Reuters) - Asian bonds attracted their first monthly foreign inflow in three months in August, as expectations of U.S. Federal Reserve rate cuts to support a cooling labour market boosted demand for higher-yielding emerging markets. Non-native investors bought Asian bonds worth a net $311 million last month, their first monthly net purchase since May, data from regulatory authorities and bond market associations in India, Indonesia, Thailand, Malaysia and South Korea showed. Sign up here. The Fed cut interest rates on Wednesday for the first time since December, citing rising risks to the labor market, and signaled further reductions ahead as unemployment edges higher, work hours shrink, and other signs of weakness emerge. "We expect a cumulative rate cut of 125bp, taking the Fed funds rate to 3.25% by March 2026," said Khoon Goh, head of Asia research at ANZ. "A more accommodative US monetary policy stance should support Asia ex-China currencies and asset markets," Goh said. Investors bought Indian bonds of $773 million and Malaysian debt instruments of $721 million last month, snapping a two-month selling trend in both these markets. South Korean, Indonesian and Thai bonds, however, saw foreign outflows of $447 million, $400 million and $337 million, respectively, last month. https://www.reuters.com/world/china/foreigners-snap-up-asian-bonds-august-after-two-month-hiatus-2025-09-18/

2025-09-18 05:34

12 analysts' median forecast is for BI's benchmark of 4% in 2026 Governor Warjiyo sounded more dovish, economist says Deeper cut for overnight rate is first since 2016 Rupiah down 0.5% by midday break JAKARTA, Sept 18 (Reuters) - Several economists said on Thursday that they expected more aggressive easing by Indonesia's central bank after this week's surprise rate cut, with many noting the governor's determination to boost growth in Southeast Asia's biggest economy. All 31 economists polled by Reuters had expected Bank Indonesia to stand pat, but the central bank on Wednesday cut its benchmark rate again (IDCBRR=ECI) , opens new tab by 25 basis points to 4.75%, against the backdrop of growing investor concerns about the country's fiscal discipline and the bank's independence. Sign up here. The rupiah fell 0.5% against the U.S. dollar by midday break on Thursday, responding to BI's unexpected move as well as the Federal Reserve's rate cut. The stock index (.JKSE) , opens new tab hit a fresh all-time high on positive growth prospects. BI has now reduced its main interest rate by 150 bps in an easing cycle that started in September 2024 and has also included liquidity loosening and government bond purchases in the secondary market. Twelve economists said they now expect more cuts in light of Wednesday's easing, many of them adding new trims into their outlook, taking the median forecast to 4% by 2026. Before BI's decision, a bigger pool of 21 economists surveyed by Reuters had expected a terminal rate of 4.50% by next year. "Governor Perry Warjiyo sounded notably more dovish than previous meetings, stating that (commercial) bank interest rates need to go down 'immediately', adding that BI continues looking for room to further lower interest rates," Maybank's Brian Lee said. Maybank now expects BI to slash its benchmark rate by another 125 bps by 2026, bringing it to 3.50%, compared to its previous forecast of 4%. Lee also underlined Warjiyo's comments about BI working together with the government to support economic growth, following its agreement to help fund some government programmes. Barclays' economist Brian Tan predicts BI will bring down the benchmark to 4.25% this year, with even more cuts likely due to BI's "all out pro-growth" stance. Barclays' previous forecast was a terminal rate of 4.75%. Part of Wednesday's surprise was BI's decision to cut the deposit facility rate (IDCBID=ECI) , opens new tab even deeper by 50 bps to 3.75%, while also cutting the lending facility rate (IDCBIL=ECI) , opens new tab by 25 bps to 5.50%. Both rates serve as the floor and ceiling of overnight interbank money market rates. This marked the first time since 2016 that BI will manage what economists called an "asymmetric corridor" for money market rates. Citi Research's analyst Helmi Arman said the decision is likely linked to the government's policy to move more than $12 billion of its funds from BI to state banks, adding liquidity into the banking system. Citi kept its outlook for BI's terminal rate at 4.25%, but brought forward its expectations of the timing to the fourth quarter. It had previously expected BI to spread out the cuts until the first quarter of 2026. (This story has been corrected to change Maybank's previous rate forecast to 4%, not 4.25%, in paragraph 8) https://www.reuters.com/world/asia-pacific/market-expecting-more-easing-after-surprise-indonesia-central-bank-cut-2025-09-18/

2025-09-18 05:31

MUMBAI, Sept 18 (Reuters) - The Indian rupee slipped on Wednesday, pressured by a firmer dollar and higher U.S. Treasury yields after the Federal Reserve's widely expected 25 basis points cut left investors parsing mixed signals from its projections and commentary. The rupee was down 0.3% at 88.0650 against the U.S. dollar, in line with weakness among regional peers and halting a four day streak of gains. Sign up here. The dollar was up 0.2% at 97.2 against a basket of major currencies even though it had hit a 3-1/2-year low in the immediate aftermath of the Fed's policy announcement. The U.S. central bank expectedly cut interest rates by 25 basis points on Wednesday but Fed Chair Powell characterised action as a risk-management cut which splintered from the dovish tilt expressed in policymakers' dot-plot interest rate projections. While analysts at ANZ characterised the Fed Chair's press conference remarks "as balanced and restrained, and not at all dovish," their counterparts at Goldman Sachs noted that " many hints at today’s meeting pointed to today’s cut being the first of a series of consecutive cuts." For the rupee, the differing interpretations sparked a slip below the 88/USD mark, a day after the local currency touched its strongest level since late-August. Traders pointed to broad-based dollar buying interest from both local and foreign banks which exerted pressure on the rupee on Wednesday. India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab were upp about 0.4% each while the yield on the benchmark 10-year bond ticked up 3 bps to 6.50%. Elsewhere, the Bank of England is expected to keep policy rates unchanged on Thursday and the decision precedes a no change in benchmark rates expected from the Bank of Japan on Friday. https://www.reuters.com/world/india/rupee-dips-below-88usd-investors-get-mixed-signals-fed-cut-2025-09-18/

2025-09-18 05:31

Fed's guidance leads to dollar's initial plunge, then rebound Fed Chair Powell describes rate cut as risk-management measure NZ dollar slides after sharp GDP slowdown fuels rate cut bets BoE expected to refrain from raising rates amid heated inflation TOKYO, Sept 18 (Reuters) - The U.S. dollar ticked higher on Thursday following its plunge to a 3-1/2-year low and then forceful rebound as traders grappled with the ramifications of the Federal Reserve's measured stance on further interest rate cuts. New Zealand's dollar tumbled after data showed the country's economy shrank far more than expected in the second quarter, fuelling bets of steeper rate cuts this year. The Aussie dollar also weakened after the Australian employment unexpectedly declined in August. Sign up here. The Fed reduced rates by a quarter point on Wednesday, as expected, and indicated it will steadily lower borrowing costs for the rest of this year. Fed Chair Jerome Powell characterised the day's policy action as a risk-management cut in response to the weakening labour market, but said the central bank does not need to rush easing. The dollar dropped to the lowest since February 2022 at 96.224 against a basket of major peers immediately after the rate decision, but sprang back vigorously to be as much as 0.44% higher on the day at 97.074. It continued that climb on Thursday to stand at 97.163. The Fed's closely watched dot plot of policy expectations predicted a median 50 basis points of additional cuts over the remaining two policy meetings of this year, but only one additional reduction in 2026. "The revised forecasts highlighted the degree of uncertainty that remains over the outlook," said Elliot Clarke, head of international economics at Westpac. "The timing and scale of the forecast rate cuts also point to lingering risks for inflation." The euro slipped 0.2% to $1.1791, after a round trip to the highest since June 2021 at $1.19185 on Wednesday in a knee-jerk reaction to the Fed announcement. Sterling eased 0.2% to $1.3604 after briefly leaping to the highest since July 2 at $1.3726 in the prior session. The Bank of England announces its own policy decision later on Thursday, and is widely anticipated to keep rates at 4%. Official figures on Wednesday showed British inflation at an annual 3.8% in August, reinforcing market expectations that further rate cuts are unlikely to be imminent. Economists polled by Reuters earlier this month expect one more rate cut by the end of the year. YEN SLIPS AHEAD OF BOJ RATE DECISION The dollar advanced 0.2% to 147.245 yen in the latest session, after weakening as much as 0.67% to the lowest since July 7 at 145.495 yen overnight before slingshotting back. The Bank of Japan is widely expected to refrain from hiking rates on Friday, although markets price in a quarter-point increase by end-March, with about 50% odds of it happening within this year. The spotlight is on an October 4 vote where the ruling Liberal Democratic Party will elect a new leader to replace outgoing Prime Minister Shigeru Ishiba, who is stepping down following a bruising defeat in upper house elections. New Zealand's dollar weakened 0.9% to $0.5909, the lowest level since September 8. Data on Thursday showed gross domestic product (GDP) fell 0.9% in the second quarter from the prior quarter, worse than analysts' and the Reserve Bank of New Zealand's forecasts of a 0.3% fall. Westpac changed its call for the RBNZ's meeting next month to a half-point cut from a quarter-point reduction. The Aussie dollar declined 0.4% to $0.6628 after official figures showed net employment fell by 5,400 in August on a month-on-month basis, compared with market forecasts of a 21,500 gain. The greenback added 0.1% to C$1.3790 after the Bank of Canada on Wednesday cut rates by a quarter point to a three-year low, as expected, citing a weak jobs market and less concern about underlying pressures on inflation. https://www.reuters.com/world/middle-east/dollar-firms-after-post-fed-rollercoaster-ride-nz-dollar-sinks-2025-09-17/