2025-05-29 07:57
TOKYO, May 29 (Reuters) - Sony's (6758.T) , opens new tab CEO said on Thursday the spin-off of the financial services arm will secure that business its own fundraising capabilities. "It is significant that, through the spin-off, Sony (Financial Group) will secure its own fundraising capabilities while continuing to use the Sony brand and collaborate with Sony Group," Sony CEO Hiroki Totoki said at an investor day. Sign up here. Sony plans to distribute just over 80% of its shares to Sony Financial Group, which includes banking and insurance, to shareholders through dividends in kind. It is the first partial spin-off by a company in Japan with a direct listing - the first in Japan in more than two decades - set for September 29. The business plans to repurchase shares totaling some 100 billion yen through to March 2027. Its origins date back to the late 1970s, when Sony co-founder Akio Morita moved to set up a life insurance business selling to consumers. In more recent years Sony sold off struggling hardware operations and focused on entertainment such as the PlayStation games business. More than 60% of the conglomerate's profit came from its entertainment businesses last year. https://www.reuters.com/business/sony-says-financial-arm-spin-off-will-secure-fundraising-capabilities-2025-05-29/
2025-05-29 07:29
MUMBAI, May 29 (Reuters) - India is likely to produce a record 117.5 million metric tons of wheat in the year ending June 2025, the farm ministry said, above its March forecast of 115.4 million tons, as higher prices prompted farmers to expand the area planted with high-yielding seed varieties. India, the world's biggest wheat producer after China, produced 113.3 million tons of wheat in 2024, the farm ministry said in a statement issued late on Wednesday. Sign up here. However, a leading industry body said the crop was nearly 6.25% lower than the government's estimate. The country's rice production in 2025 is also set to climb to a record high, with the ministry estimating it at 149 million metric tons, up from last year's 137.8 million tons. Record production of wheat and rice will lift the country's total food grains production to 354 million tons from last year's 332.3 million tons. A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year, contrary to market talk that it would need overseas supplies, and a potential drag on global prices. India is the world's biggest exporter of rice and higher production will help New Delhi to increase shipments. https://www.reuters.com/world/china/india-wheat-rice-production-rise-record-high-government-says-2025-05-29/
2025-05-29 07:13
May 29 (Reuters) - Governments in Asia and Europe are raising far less debt in U.S. dollars than usual, preferring to issue at home as they avoid exposure to rising U.S. yields, currency volatility and broader concerns about U.S. government finances. According to Dealogic data, issuance of dollar bonds by non-U.S. sovereigns dropped 19% to $86.2 billion in the first five months of this year compared with the same period last year, marking the first decline in three years. Sign up here. The January-May dollar bond issuance by the governments of Canada and Saudi Arabia fell 31% and 29% to $10.9 billion and $11.9 billion, respectively, while issuance by Israel and Poland declined 37% and 31% to $4.9 billion and $5.4 billion. At the same time, Dealogic data showed global sovereigns’ local currency bond issuance had climbed to a five-year high of $326 billion so far this year. This drop in dollar bond issuance comes at a time when global investors are pulling back from U.S. assets, partly in response to tariffs and as they question U.S. financial dominance and safety. Johnny Chen, portfolio manager at William Blair’s emerging markets debt team, said the rise in local currency issuance is largely driven by falling domestic interest rates as inflationary pressures ebb, noting that India, Indonesia and Thailand have all cut their benchmark interest rates this year. "In India’s case, the local currency debt market has also matured further with the inclusion of Indian local currency debt in global bond indices. This development has likely expanded the investor base, prompting more local currency issuance in 2025," he said. Brazil is considering issuing its first sovereign bonds in yuan, two government sources said, after President Luiz Inacio Lula da Silva's visit to Beijing concluded with a wave of Chinese investment announcements and a currency swap agreement. Brazil’s sovereign U.S. dollar bond issuance has dropped 44% to $2.4 billion this year, data showed. Saudi Arabia raised 2.25 billion euros ($2.36 billion) through a euro-denominated bond sale, including its first tranche of so-called green bonds, as part of its global medium-term note program, aligning with its strategy to diversify away from dollar-linked financing. "The challenge with the onshore local currency is that those issuances tend to be much smaller, they're less liquid," said Kenneth Orchard, head of international fixed income at T. Rowe Price, based in London. "But we think over time there are going to be more international investors in those markets." https://www.reuters.com/sustainability/sustainable-finance-reporting/global-government-issuance-us-dollar-debt-tumbling-2025-data-shows-2025-05-29/
2025-05-29 06:56
TOKYO, May 29 (Reuters) - Japan's Kyushu Electric Power (9508.T) , opens new tab said on Thursday it will sign a 20-year purchase contract with U.S. energy firm Energy Transfer (ET.N) , opens new tab to buy up to 1 million metric tons of liquefied natural gas a year from its Lake Charles LNG project. It marks the Japanese utility's first long-term LNG purchase deal from the United States and is expected to diversify the company's procurement sources and contribute to stable supply, the company said in a statement. Sign up here. A company spokesperson declined to disclose the contract's terms or the timing of the signing, but said that imports are expected to start in 2030, if the project proceeds as planned. Although Kyushu Electric had also considered investing in the Lake Charles project, the spokesperson said it ultimately decided against it, citing a "lower priority compared to other internal investment opportunities". The contract is on free-on-board (FOB) terms with no destination restrictions, allowing the utility to procure LNG flexibly in response to fluctuations in electricity supply and demand, such as adjusting receipt timing at its discretion or selling to other companies when demand is low. Earlier this month, Energy Transfer said it was nearing a go-ahead on its Lake Charles LNG project after an unnamed Japanese company agreed to buy 1 million metric tonnes of LNG from the proposed export facility. Energy Transfer said at that time it had 10.5 MTPA of its targeted 16.5 MTPA in committed LNG sales and that it was confident it could reach a final investment decision by the end of the year. U.S. President Donald Trump has pushed allies like Japan and South Korea to buy U.S. oil and gas while threatening tariffs on their exports. When asked whether Kyushu Electric had received a request from the Japanese government to purchase U.S. LNG, the company spokesperson said it had not. https://www.reuters.com/business/energy/kyushu-electric-sign-20-year-deal-buy-lng-us-lake-charles-project-2025-05-29/
2025-05-29 06:38
Oil volatile after earlier gains on US court blocking Trump's tariffs OPEC+ could hike oil output for July, say sources and analyst US crude, gasoline and distillate inventories fall, EIA says NEW YORK, May 29 (Reuters) - Oil prices fell over 1% on Thursday, retreating from earlier gains, as investors weighed the potential effects of a U.S. court ruling that blocked the most sweeping of President Donald Trump's tariffs. The market also watched for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Sign up here. Brent crude futures settled down 75 cents, or 1.2%, to $64.15 a barrel. U.S. West Texas Intermediate crude fell 90 cents, or 1.5%, to $60.94 a barrel. Prices had earlier risen after a U.S. court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminium using a different statute. Futures steadily retreated throughout the session, however, as senior Trump administration officials downplayed the impact of the ruling and insisted there are other legal avenues to employ. "The initial market reaction to the U.S. trade court's Trump reciprocal tariffs dissipated appreciably as the session progressed," Jim Ritterbusch of U.S. energy consultancy Ritterbusch and Associates said in a note. "One interpretation of this response could be that not much has changed and that the uncertainty surrounding the Trump tariffs from day one will continue as the tariffs work their way through the court system and several sectoral tariffs such as autos and auto parts remain intact." Weighing on oil futures on Thursday, IEA Executive Director Fatih Birol said in an interview with Bloomberg that demand for oil was considerably weak in China and developments in Russia and Iran were "question marks" for oil prices. The U.S. and Iran are holding talks meant to rein in Iranian nuclear activities that have rapidly accelerated since Trump pulled Washington out of a 2015 deal between Iran and major powers that strictly limited those activities. "We've seen a lot of back and forth concerns about the Iran situation, whether we’re getting closer to a conflict or a peace deal," said Phil Flynn, senior analyst with Price Futures Group. "We’re moving technically and emotionally right now in a lot of these markets." OPEC+ IN FOCUS On the oil supply front, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July. "We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share," ING analysts said in a note. However, there are also concerns about potential new sanctions on Russian crude. Adding to supply risks, Chevron (CVX.N) , opens new tab has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March. Venezuela in April cancelled cargoes scheduled to Chevron, citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 bpd of Venezuelan oil, or over a third of the country's total, before that. "From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply," Mukesh Sahdev, global head of commodity markets at Rystad Energy, said in a note, expecting demand growth to outpace supply growth by 600,000 to 700,000 bpd. Oil futures on Thursday pared some losses after Energy Information Administration data showed U.S. crude inventories posted a surprise draw in the latest week, falling by 2.8 million barrels to 440.4 million barrels. Analysts had expected a 118,000-barrel rise. In Canada, a wildfire in the province of Alberta has forced residents of a small town to evacuate and prompted a temporary shutdown of some oil and gas production, which could reduce supply. https://www.reuters.com/business/energy/oil-prices-climb-us-court-blocks-trump-tariffs-2025-05-29/
2025-05-29 06:33
US weekly jobless claims rise more than expected Trump tariff push given new twist by court setback US PCE due on Friday May 29 (Reuters) - Gold prices rose in volatile trading on Thursday, aided by softer jobs data, while market participants also digested a court ruling that blocked most of U.S. President Donald Trump's tariffs. Spot gold reversed course to rise 0.9% to $3,318.69 an ounce, as of 02:35 p.m. ET (1835 GMT), after hitting its lowest since May 20 earlier in the session. Sign up here. U.S. gold futures were settled 0.6% higher at $3,343.90. Data showed that the number of Americans filing new applications for unemployment benefits increased more than expected last week. "Gold is rallying on a jump in weekly initial jobless claims which could be a harbinger of a weakening labor market, which would get the Federal Reserve to cut (interest rates) more quickly," said Tai Wong, an independent metals trader. According to released minutes of the Federal Reserve's May 6-7 session, Fed officials acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment, an outlook buttressed by Fed staff projections of increased risks of a recession. Bullion is viewed as a hedge against uncertainty and inflation, and it tends to perform well in low-interest-rate environments, as it does not generate interest. Market focus is also on the U.S. Personal Consumption Expenditures data due Friday, which will be closely analysed for signals on future U.S. monetary policy. "Equally impressive is gold's sharp recovery overnight, (with the market) deciding that Trump will ultimately prevail against the trade court's ruling," Wong added. A U.S. trade court ruling that blocked most of Trump's tariffs and found he had overstepped his authority triggered some relief on financial markets, while adding to the uncertainties weighing on the global economy. His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues. Spot silver rose 0.8% to $33.27 an ounce, platinum was up 0.2% at $1,076.90 and palladium firmed 1.1% to $973.05. https://www.reuters.com/world/india/gold-hits-over-one-week-low-after-us-court-blocks-trumps-tariffs-2025-05-29/
