Coalition to bail out Arrium
The coalition government is to provide A$49.2 million (US$36 million) to support struggling steelmaker Arrium Ltd, Prime Minister Malcolm Turnbull said yesterday. The funds are to be spent on new machinery at two mines in South Australia state to help Arrium remove waste materials from its iron ore, Turnbull said. The equipment is to enable Arrium to convert low-grade ore stockpiles into export quality and increase the supply of lump ore feed to the Whyalla steelworks, he said. Arrium was placed in administration in April after lenders rejected a A$927 million recapitalization plan. The investment is designed to improve cash flow and profitability, and is to support about 2,700 workers at the steelworks, Turnbull said.
Bond sale raises US$2.5bn
Oman has raised US$2.5 billion in a bond sale arranged by five international banks to help meet its budget deficit resulting from low oil prices, the Ministry of Finance said on Saturday. The ministry, quoted by the Oman News Agency, said the sultanate’s first international bond issue in two decades was oversubscribed by almost three times. The Gulf state sold US$1 billion in bonds to mature in five years at an interest rate of 3.625 percent and a 10-year issue worth US$1.5 billion at 4.75 percent, it said in a statement. Oman is projecting a budget deficit of US$8.6 billion this year.
Kuwait Food Co shares sold
A United Arab Emirates-based investor group, led by Emaar Properties PJSC chairman Mohamed Alabbar, said it agreed to buy Kuwait Food Co shares from its majority stockholder for US$2.36 billion. Adeptio AD Investments SPC Ltd, the group led by Alabbar, is to pay 2.65 Kuwaiti dinars (US$8.78) per share to buy a stake in the company known as Americana from al-Khair National for Stocks and Real Estate Co, the companies said in a statement. Adeptio is to launch a mandatory takeover offer for the remaining shares of Americana at the same price, according to the statement.
US-China talks continue
Bilateral investment talks between the US and China “continue to be productive,” the US Trade Representative’s office said on Friday. A US Trade Representative spokeswoman said US and Chinese negotiators exchanged revised “negative lists” of sectors that would stay off-limits from foreign investment as they try to reach a deal for a bilateral investment treaty. US Secretary of the Treasury Jack Lew on Thursday said that Beijing’s negotiating stance in the bilateral investment treaty talks were “one important barometer” in China’s commitment to reform its economy and open it to foreign competition.
Etracom fined over scheme
Energy regulators fined trading firm Etracom LLC US$2.4 million for engaging in a scheme to rig the California power market. Etracom, a trading company formed in 2008, violated anti-manipulation rules in May 2011 when traders artificially drove down power prices at a point on the grid in eastern central California to reap profits, the Federal Energy Regulatory Commission said on Friday. The agency also directed Etracom to surrender US$315,072 in unjust profits. In April, the agency proposed civil penalties of US$213.6 million against a unit of Total SA amid allegations that two of its traders rigged natural gas markets.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion