2025-12-04 07:03

Rolls up three existing timber funds 73% of investors stick with new perpetual fund Aims to generate cash yield of at least 8% LONDON, Dec 4 (Reuters) - Investor Stafford Capital Partners has consolidated assets from three timber funds into a new $1.2 billion fund, retaining nearly three-quarters of existing investors amid strong institutional demand for the assets. The Stafford International Timberland Continuation Fund will operate as a perpetual fund and include 74 assets from across Stafford International Timberland (SIT) funds VI, VII and VIII, it said in a statement. Sign up here. Continuation funds allow managers to keep assets beyond the original fund's life - typically to maintain exposure to strong performers or avoid selling at unfavourable prices. About 73% of SIT investors rolled over their investment, with fresh capital accounting for 27%. The biggest backer is a group of UK Local Government Pension Funds, which collectively make up 54% of the fund. "The establishment of the Continuation Fund follows closely behind our $1 billion close of SIT X, our tenth core timberland fund," said Stafford Chief Executive Angus Whiteley, referring to the March fundraising. "We believe this further signals the growing momentum and institutional interest in timberland as a strategic asset class." The fund's assets, built up between 2011 and 2018, cover 6.3 million acres of commercial timberland from across the United States, New Zealand, Australia and Latin America, the firm said. It plans no new acquisitions to the fund and instead will gradually sell down about 28% of the fund, aiming to generate a cash yield of more than 8% over the next decade. https://www.reuters.com/sustainability/climate-energy/stafford-capital-launches-12-billion-timber-fund-targets-8-yield-2025-12-04/

2025-12-04 07:01

MOSCOW, Dec 4 (Reuters) - Dmitry Medvedev, the deputy chairman of Russia's Security Council, said on Thursday that if the European Union takes frozen Russian assets, then it may be considered by Moscow as tantamount to an act justifying war. "If the crazy European Union does, after all, try to steal Russian assets frozen in Belgium under the guise of a so-called ‘reparations loan’, Russia may well view this move as tantamount to a casus belli with all the relevant implications for Brussels and individual EU countries," Medvedev said. Sign up here. The European Commission proposed on Wednesday an unprecedented use of frozen Russian assets or international borrowing to raise 90 billion euros ($105 billion) for Ukraine to cover its struggling military and basic services. https://www.reuters.com/world/europe/russias-medvedev-says-eu-seizure-frozen-assets-could-be-tantamount-justification-2025-12-04/

2025-12-04 06:56

Divestments to help miner generate $5 billion to $10 billion Miner sees $650 mln in productivity benefits in first 3 months Miner in active talks with Chinalco over stake LONDON, Dec 4 (Reuters) - Rio Tinto (RIO.AX) , opens new tab, (RIO.L) , opens new tab CEO Simon Trott outlined a plan on Thursday to generate $5 billion to $10 billion through divestments and productivity growth, as he moves to simplify the structure of the world's largest iron ore miner. Investors had been waiting for the details since Rio Tinto announced in August it would streamline its business to three core units from four and focus on profitable assets. Assets up for sale include Rio's titanium and borates businesses. Sign up here. Rio Tinto joins global peers in efforts to become leaner and more focused by selling non-core assets, cutting jobs, and tightening capital to boost investor appeal amid shifting commodity cycles and pressure for higher returns. MINER IDENTIFIED GLOBAL ASSETS THROUGH REVIEW The Anglo-Australian miner identified some global assets it does not need to own following a thorough review, Trott told media on a telephone call on the company's strategy day. "We'll proceed and test the market for (titanium and borates) assets, together with some of the other measures across our footprint: things like land, infrastructure, processing assets, and mining assets ... so we're reaching up to $10 billion," he said. Talking to shareholders in London on Thursday, Trott added the miner is working with its main shareholder, Aluminium Corporation of China Limited (Chinalco), to resolve governance constraints limiting its ability to buy back shares. Rio Tinto said it is also exploring commercial partnership options for some of these assets and plans to cut unit costs by 4% from 2024 to 2030. It announced $650 million in annualised productivity gains and cost savings, with $370 million already realised and the rest to be delivered in the first quarter. The figure included headcount reductions, Trott added, but declined to specify the number of jobs to be cut. The company's shares opened up more than 2% in London following his remarks, before clawing back gains, with some analysts expecting more. "Headline cost out of $650 million [is] a little disappointing," said Glyn Lawcock, an analyst at Barrenjoey. However, analysts at Citi were more optimistic, saying "Rio ... has laid out an attractive vision for the company, with positive guidance commentary for 2025 & 2026, reiterating the solid volume growth outlook by 2030 and capex normalization." Earnings could be boosted by as much as half by the end of the decade, Rio added, thanks to capital discipline, rising prices for its commodities and 20% growth in copper production. UPS FORECASTS FOR COPPER OUTPUT The miner also raised its 2025 copper production forecast, citing stepped up operations at its Oyu Tolgoi project in Mongolia. Rio said it now expects copper production this year to range between 860,000 metric tons and 875,000 tons on a consolidated basis, up from its previous forecast of 780,000 tons to 850,000 tons. In 2026, it expects copper production between 800,000 tons and 870,000. Rio earns profits primarily from iron ore but it is shifting focus towards copper, aiming to produce 1 million tons of the metal annually by 2030. Copper prices stand at records, and the commodity is expected to be in high demand as the world adopts greener forms of energy. Rio said it remains on track to boost copper output at Oyu Tolgoi by more than 50% this year and by about 15% in 2026. https://www.reuters.com/world/asia-pacific/rio-tinto-lifts-2025-copper-production-forecast-2025-12-04/

2025-12-04 06:53

Fed expected to cut rates amid weak economic data US dollar index is set to snap nine-session losing streak Japanese stocks lead gains, Nikkei up 2% NEW YORK/LONDON, Dec 4 (Reuters) - Global shares and the dollar on Thursday were mostly higher as traders await a Fed interest rate cut. U.S. stocks finished mostly higher in a choppy trading session, with the benchmark S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab gaining while the Dow (.DJI) , opens new tab ended slightly lower. Consumer staples, healthcare, and materials stocks suffered the most losses, while industrials, technology and communications services drove gains. Sign up here. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.07%, the S&P 500 (.SPX) , opens new tab rose 0.11% and the Nasdaq Composite (.IXIC) , opens new tab gained 0.22%. In Europe, the STOXX 600 (.STOXX) , opens new tab was up 0.45% and still headed for a modest weekly gain. London's FTSE 100 index (.FTSE) , opens new tab was up 0.19% while Germany's DAX (DAX.O) , opens new tab gained 0.32%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.24%. Japanese stocks rallied sharply after an auction of government bonds drew strong demand from investors, which helped set the tone for the broader equity market. The Nikkei (.N225) , opens new tab rose 2.33%. "After a 5% pullback in late November, stocks have rebounded and are now trading at the pre-pullback levels and near all-time highs," said Michael Farr, chief executive of investment advisory firm Farr, Miller & Washington in Washington. Data on Thursday appeared to assuage concerns of a sharp deterioration in U.S. labor market conditions. The number of Americans filing new applications for unemployment benefits fell to a more than three-year low of 191,000 last week. That came after U.S. private payrolls data posted its biggest drop in more than two-and-a-half years, and following a survey of the services sector that showed activity held steady in November while hiring slowed. "If they cut rates by a quarter of a point and then take a pause - which every Fed speaker has indicated, markets might be disappointed in the messaging. If they don't cut and say we're going to wait until the next meeting, markets will be disappointed there too," Farr said. Fed funds futures are pricing a near 90% chance of a quarter-point cut at the end of the Fed's next meeting on December 10, compared with an 83.4% chance a week ago, according to the CME Group's FedWatch tool. The dollar index , which tracks the U.S. currency's performance against six others, was up slightly by 0.17% on the day, easing earlier losses and poised to end nine straight sessions of declines. Oil prices rose, with Brent crude futures adding 0.94% to settle at $63.26 while U.S. crude futures gained, settling up 1.22% at $59.67. US 10-YEAR TREASURY BOND YIELD UP The yield on the U.S. 10-year Treasury bond was last up 4.2 basis points at 4.1%. The Financial Times reported on Wednesday that bond investors had expressed concerns to the U.S. Treasury that Kevin Hassett, a candidate to replace Jerome Powell as Fed chair next year, could aggressively cut interest rates to align with President Donald Trump's preferences. "I think there's purposeful timing by the Trump administration to announce the president's selection of a new Fed chairman that will be seen - correctly or not - as being more dovish around this meeting to appear as an antidote to the messaging," Farr said. In Japan, the government's debt sale drew the strongest demand in more than six years, which helped soothe investor nerves about the country's long-term finances that have stoked similar worries about other economies. The dollar was last down 0.08% at 155.11 against the yen , which is heading for its largest weekly gain against the U.S. currency in over two months. The yen got another boost from a Reuters report that the Bank of Japan is likely to raise interest rates in December with the government expected to tolerate such a decision, citing three government sources familiar with the deliberations. Meanwhile, the yuan softened a touch, leaving the dollar up 0.21% at 7.071 yuan in offshore trading in Hong Kong . The Chinese currency hit its strongest level against the dollar in more than a year on Wednesday. Precious metals cooled after a recent hot streak. Gold was flat at $4,208.66 an ounce, while silver fell 2.32% to $57.12 an ounce, after hitting a record high of $58.98 on Tuesday. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-12-04/

2025-12-04 06:42

US weekly jobless claims drop to over 3-year low Gold will not retest the old highs, analyst says US private payrolls fell by 32,000, jobs data showed Dec 4 (Reuters) - Gold prices were largely unchanged on Thursday, as rising U.S. Treasury yields offset support from a weaker dollar, while markets awaited Friday's U.S. inflation data for clues on the Federal Reserve's policy outlook ahead of its December meeting. Spot gold was up 0.1% at $4,210.49 per ounce by 1833 GMT. U.S. gold futures for February settled 0.2% higher at $4,243.00 per ounce. Sign up here. "Higher yields are keeping a bit of a cap on the upside (for gold), and providing some support is the general dollar index," said Marex analyst Edward Meir. Benchmark 10-year U.S. Treasury yields rose, while the U.S. dollar index (.DXY) , opens new tab hit a one-month low, making gold more affordable for overseas buyers. Data on Thursday showed new U.S. unemployment benefit claims dropped to 191,000 last week, the lowest level in over three years and well below economists' expectations of 220,000. Meanwhile, Wednesday's ADP report indicated U.S. private payrolls declined by 32,000 in November, marking the steepest drop in more than two and a half years. A majority of over 100 economists polled by Reuters forecast the Federal Reserve will reduce its key interest rate by 25 basis points at its December 9-10 policy meeting, as the central bank seeks to support a cooling labor market. Lower interest rates typically benefit non-yielding assets like gold. Investors are now eyeing the September Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred inflation gauge, due on Friday. "Markets aren't going to do very much between now and next week and as far as gold is concerned, probably we will be stuck in a relatively uneventful trading range for a while," said Meir, adding gold will not retest the old highs of nearly $4,400 this year. Meanwhile, silver fell 2.6% to $56.96 after touching a record high of $58.98 on Wednesday. The metal is up about 97.3% this year, supported by a structural supply deficit, concerns around market liquidity and its inclusion in the U.S. critical minerals list. Platinum lost 1.7% to $1,642.67, while palladium slid 1.4% to $1,440.57. https://www.reuters.com/world/india/gold-slips-investors-turn-cautious-ahead-fed-meeting-pce-data-focus-2025-12-04/

2025-12-04 06:39

RBI intervenes to curb volatility, not defend specific rupee levels, sources say Rupee hits record low of 90.42, down 5.5% this year Foreign investors sold $17 billion in Indian stocks this year MUMBAI, Dec 4 (Reuters) - India's central bank will tolerate a weaker rupee as the country's external sector confronts multiple headwinds including a wider trade gap and stalling of dollar inflows into the world's fifth-largest economy, three sources familiar with the central bank's thinking told Reuters. The Reserve Bank of India (RBI), which had supported the rupee through aggressive interventions via dollar sales until last month, has allowed the rupee to fall 1.3% in the last seven trading sessions to a record low of 90.42 per dollar. Sign up here. The rupee, down 5.5% on year, is Asia's worst performing currency. By signaling tolerance for a weaker rupee, the central bank is indicating that it will intervene mostly to curb sharp volatility or on any signs of a speculative build-up but not defend any specific level on the rupee, the sources said. "It doesn't make sense to spend reserves when fundamentally everything is against the currency," said one of the sources, who commented on condition of anonymity as they were not authorised to speak to the media. The RBI did not immediately respond to an email seeking comment. "As and when fundamentals and real dollar demand dictate, the central bank does let the rupee move more than it normally would," the second source said. India is one of the worst-hit markets in terms of outflows, with foreign investors selling stocks amounting to $17 billion so far this year. At the same time, foreign direct investment, trade, and offshore fundraising flows have slowed down. While the currency's fall below the psychologically important 90 per dollar mark has garnered attention and could embolden speculators, the central bank can step in to stamp those out as needed, a third source said. INVESTORS ON GUARD A weaker currency provides more policy flexibility to the central bank, but it could also diminish the appeal of Indian assets for overseas investors. "A weakening Indian rupee is definitely a negative when it comes to investing in Indian equities and it is one reason why we are only neutral weight in India versus our benchmark," said Sam Kongrad, an investment manager for Asian equities at Jupiter Asset Management. MSCI's India equities index has risen 7% this year, but currency weakness has trimmed its dollar returns (.dMIIN00000PUS) , opens new tab to under 2% — well below the roughly 80% and 30% gains posted by South Korea and Hong Kong, respectively. "A resolution to the tariff situation with the U.S. can’t come soon enough and foreign flows from a potential global index inclusion will be very much needed," said Kenneth Akintewe, head of Asian sovereign debt at Aberdeen Investments. Over the long term, though, investors reckon sustained momentum in India's blockbuster economic growth could help offset the currency's fall by boosting company earnings. India's GDP grew 8.2% in the July-September quarter even as the rupee languished at a record low, underscoring a divergence between the strong domestic economy and weak external demand. "I'm not losing sleep over it," India's Chief Economic Advisor V Anantha Nageswaran said on Wednesday, referring to the rupee's fall. The rupee's weakness has had no impact on inflation, he added, expecting the currency to recover in 2026. https://www.reuters.com/world/india/india-central-bank-tolerate-weaker-rupee-inflows-dry-up-sources-say-2025-12-04/