2025-09-18 00:52

Third deal collapse in 7 years raises concern, analysts say Santos says it was willing to finalise deal with ADNOC's XRG Investors expect to reap benefits from two Santos projects Santos shares slide to three-month low SYDNEY, Sept 18 (Reuters) - Australian gas producer Santos' (STO.AX) , opens new tab shares fell nearly 14% on Thursday after a consortium led by Abu Dhabi National Oil Company scrapped its $18.7 billion bid for the company, saying commercial terms could not be agreed. While analysts raised concern about a third failed takeover bid for Santos in seven years, investors shrugged it off, saying the company was set to benefit from two projects due to start producing soon in Australia and Alaska. Sign up here. "They should just get on with managing the business and hopefully the cash flows will come through and be reflected in the share price over time," said Andy Forster, a portfolio manager at Argo Investments, a top 10-shareholder in Santos. XRG, ADNOC's overseas unit, baulked at proceeding with a deal after it was revealed capital gains tax payments were due soon on Santos' assets in Papua New Guinea, according to a person familiar with the matter. Santos had expected XRG to make the payments, worth several hundred million dollars, which the consortium objected to, said the person who could not be named as they were not permitted to speak to media. XRG declined to comment, and Santos said it would not make any comment beyond its statement released early on Thursday. Santos, Australia's second-largest gas producer, said in the statement it told the XRG consortium on Monday it was willing to finalise a deal at $5.626 a share. The original offer in June was made at $5.76 a share, worth A$8.89 at the time, but adjusted for Santos' recent dividend payment. Taking into account net debt, the deal valued Santos at about A$36.4 billion ($24.2 billion), which would have made it Australia's largest ever all-cash corporate buyout, according to FactSet data. Santos shares dropped to A$6.61 in early trading Thursday, their lowest price since June 10, and were heading for their worst day in more than five years. The benchmark S&P/ASX200 was down 0.64%. INVESTORS SANGUINE FOR NOW The decline brings Santos back to its trading levels before the bid emerged in June, with the fall blamed on the deal not going ahead, the takeover premium being removed and arbitrage funds selling the stock. "We're not entirely unhappy with this development," said Romano Sala Tenna, a portfolio manager at Katana Asset Management, which holds Santos shares. "I don't think it should push ahead with breaking up its core assets as it's entering a really nice phase. It's done the heavy lifting of developing these assets and shareholders will want to start to reap the fruits of that work," he said, referring to Santos' Barossa gas project off northwestern Australia and its Pikka oil project in Alaska. The question, he said, was what Santos would do next on projects it has put on the backburner, including its Narrabri gas project and El Dorado oil and gas project, both in Australia. XRG pulled the offer on Wednesday and said "a combination of factors, when considered collectively, have impacted the Consortium's assessment of its indicative offer." The deal's collapse will now put pressure on Santos' board. "Another failed transaction creates doubt in the market. It's unlikely Santos remains in its current form in time with investors and management looking for alternative ways to create value," said Adam Martin, an analyst at E&P. Santos previously rejected a $10.8 billion offer from private equity-backed Harbour Energy in 2018 and walked away from talks with its bigger Australian rival Woodside Energy (WDS.AX) , opens new tab, to create a possible A$80 billion oil and gas giant. "Santos has a clear strategy, strong leadership and high-quality growth opportunities across our global portfolio. The board is confident these strengths will deliver long-term value for shareholders," Santos Chair Keith Spence said in the statement. Jarden, the investment bank, on Thursday downgraded its rating on Santos from overweight to underweight and cut Santos' 12-month price target by 16% from A$8.40 to A$7.05 per share. ($1 = 1.5035 Australian dollars) https://www.reuters.com/business/energy/santos-stock-slumps-187-billion-adnoc-led-deal-collapses-2025-09-17/

2025-09-18 00:48

SEC commissioners vote to open crypto ETF floodgates Listing standards approval is latest push by crypto-friendly Trump administration Trading could begin in host of new products in October Sept 17 (Reuters) - The Securities and Exchange Commission voted on Wednesday to approve proposed rule changes by three national securities exchanges, enabling them to adopt generic listing standards for new cryptocurrency and other spot commodity exchange-traded products. The commission vote removes the last remaining hurdle to dozens of new spot ETFs tied to cryptocurrencies ranging from solana to dogecoin. In July, the SEC issued an order spelling out the details of the listing standards, which specify the criteria an asset manager and the exchanges -- the NYSE, Nasdaq and Cboe Global Markets -- must meet in order for a new spot crypto ETF to be approved without a lengthy, customized regulatory review. It is the latest step taken by the administration of President Donald Trump to bring crypto assets into the mainstream. Sign up here. Until now, the SEC has handled every spot crypto ETF filing on a case-by-case basis, and required two separate filings, one from the exchange that plans to list the product and one from the asset manager, to receive approval from different divisions. The new process will cut the maximum time from filing to launch to 75 days from 240 days, or longer still. "This is a watershed moment in America’s regulatory approach to digital assets, overturning more than a decade of precedent since the first bitcoin ETF filing in 2013," said Teddy Fusaro, president of Bitwise Asset Management. In a press release, SEC Chair Paul Atkins described the approval by commission members as a way to foster innovation and reduce barriers to digital asset products. The first ETFs likely to launch under the new rules are those tracking solana and XRP. Asset managers began filing these with the SEC more than a year ago, but regulators have yet to approve spot crypto ETFs other than those tracking bitcoin and ethereum. Even then, the debut of the bitcoin ETFs in January 2024 came only after years of struggle and a legal battle. Under the administration of former President Joe Biden, the SEC had moved slowly to consider spot crypto ETFs. In contrast, the Trump administration aligned itself firmly with the crypto community, pledging to take a more favorable view of digital assets. "The gates are open but there’s still a lot of work to be done," said Steve McClurg, CEO of Canary Capital, which has multiple products waiting for approval. Speaking on Monday, ahead of the SEC ruling, he said that even after the commission vote, "marketing plans, legal filings, work with service providers all have to be addressed, based on the new roadmap." The generic listing standards offer a few pathways for asset managers to seek spot ETF approval. Steve Feinour, a partner at Stradley Ronon who has worked on some of the pending applications, said he expects most will turn to the provision allowing expedited approvals for crypto ETFs that have had futures contracts regulated by the Commodity Futures Trading Commission in existence for at least six months. He expects the first products could debut as soon as October. "Not every token is going to currently qualify, but (the SEC approval) will open up the floodgates," Feinour said. https://www.reuters.com/sustainability/boards-policy-regulation/sec-paves-way-crypto-spot-etfs-with-new-listing-rules-2025-09-18/

2025-09-18 00:15

SAO PAULO, Sept 17 (Reuters) - Brazilian meatpacker JBS (Z98.F) , opens new tab is prepared for a likely shift in the country's cattle cycle that could lead to reduced availability of animals for slaughter next year, an executive said on Wednesday. WHY IT'S IMPORTANT JBS is the world's largest meat producer and Brazil, the No. 1 beef exporter. A decrease in cattle supply in the South American country would come at a time when other meat producing nations, including the United States, face similar shortages. Sign up here. KEY QUOTES "The imminence of the cattle cycle shift brings challenges. We are preparing through partnerships, contracts, and close relationships with ranchers to preserve our volumes,” Eduardo Pedroso, Executive Director of Origination at Friboi JBS, told reporters at an event in Sao Paulo. "With crop-livestock integration, tech adoption, earlier slaughter age, and productivity gains, cycle impacts can be softened. That’s what we expect," he added. CONTEXT Brazil has experienced a significant increase in cattle slaughter over the past 24 months due to oversupply, which allowed for higher processing rates in the country’s meat industry. However, signs now point to reduced supply next year. According to consultancy Datagro, cattle slaughter in the country is expected to drop over 9% in 2026 from this year, reaching 37.1 million animals, after estimated jumps of more than 16% between 2023 and 2024 and 3% from 2024 to 2025. https://www.reuters.com/world/americas/top-global-meatpacker-jbs-prepares-drop-cattle-slaughter-2026-2025-09-18/

2025-09-17 23:50

SAO PAULO, Sept 17 (Reuters) - Brazil's beef exports to the United States are seen falling further in September from the previous months, the head of local beef lobby Abiec said on Wednesday, in a move linked to higher tariffs imposed by President Donald Trump on goods from Brazil. Roberto Perosa said that beef exports to the U.S. should fall to about 7,000 metric tons in September, from around 9,000 tons in August and 30,000 tons per month in the period preceding the tariffs, which came into force in August. Sign up here. WHY IT'S IMPORTANT The U.S. used to be the second-largest buyer of beef from Brazil, the world's largest exporter, only behind China. That changed last month, when Mexico took over the position after Trump imposed a 50% levy on U.S. imports of several Brazilian goods. The fresh duties added to a 26.4% import tax faced by Brazilian beef that was shipped outside a previously established quota. KEY QUOTES "The loss of our second-largest market makes a difference," Perosa said at an event hosted by consultancy firm Datagro. "But surprisingly, even with the 76.4% tariff, there are still exports to the U.S. because of the competitiveness we have gained." https://www.reuters.com/world/china/brazils-beef-exports-us-fall-further-september-after-tariffs-industry-group-says-2025-09-17/

2025-09-17 23:50

Fed's rate cut leads to dollar's initial plunge, then rebound Fed Chair Powell describes rate cut as risk-management measure BoE expected to keep rates steady amid stable inflation TOKYO, Sept 18 (Reuters) - The U.S. dollar was steady early 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 rhetoric on further interest rate cuts. 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, initially sending the dollar plunging. Sign up here. However, Fed Chair Powell characterised the day's policy action as a risk-management cut in response to the weakening labour market, but the central bank does not need to rush easing. 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 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 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. The euro was steady at $1.1818 early on Thursday, after a round trip to the highest since June 2021 at $1.19185 in a knee-jerk reaction to the Fed announcement. Sterling was flat at $1.3626 after briefly leaping to the highest since July 2 at $1.3726 on Wednesday. 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, in line with a Reuters poll, reinforcing market expectations that further rate cuts are unlikely soon. Economists polled by Reuters earlier this month expect one more rate cut by the end of the year. The dollar edged down 0.08% to 146.815 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 0.49% to a one-week low of $0.5935 after data showed the country's economy shrank more than expected in the second quarter. The Aussie dollar was steady at $0.6655 ahead of the release of jobs data later in the day. The greenback was steady at C$1.3772 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-steady-after-rebound-3-12-year-low-post-fed-rollercoaster-ride-2025-09-17/

2025-09-17 23:17

HONG KONG, Oct 30 (Reuters) - Hong Kong's de-facto central bank on Thursday lowered its base interest rate by 25 basis points to 4.25%, tracking a cut by the U.S. Federal Reserve. It was the second easing by the Hong Kong Monetary Authority (HKMA) this year since a 25 basis point cut in September. The rate is charged via the overnight discount window. Sign up here. The Federal Reserve cut interest rates by a quarter of a percentage point to lower the policy rate to a range of 3.75%-4.00% overnight. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. https://www.reuters.com/world/asia-pacific/hong-kong-central-bank-cuts-interest-rate-tracking-fed-move-2025-10-29/