2025-05-13 09:04

Financier says at least 90 days of uncertainty in prospect Investors are hoarding capital while worries persist U.S. deficits will attract greater scrutiny RIYADH, May 13 (Reuters) - BlackRock CEO (BLK.N) , opens new tab Larry Fink says tens of trillions of dollars of financial firepower is sitting idle in cash amid trade war worries and uncertainty over the United States economy, whose deficits are beginning to spook investors. "There is 12 trillion euros sitting in bank accounts in Europe. In the United States, there's $11 trillion sitting in money markets funds. When there is uncertainty, you are going to keep more and more money in cash and that is what we witnessed," Fink told delegates at the Saudi-US Investment Forum in Riyadh on Tuesday. Sign up here. The veteran financier, who runs the world's largest asset manager, made the comments shortly after U.S. President Donald Trump arrived in Saudi Arabia to kick off a four-day tour of the Gulf region. Besides the kingdom, Trump will be taking in Qatar and the United Arab Emirates, with the spotlight on economic deals as well as various security crises ranging from war in Gaza to the threat of escalation over Iran's nuclear program. Fink said many global investors were still overweight on the U.S. despite market ructions caused by Trump's proposed revamp of global trade ties. A "modest reallocation" away from U.S. assets had benefited Europe and stoked increasing investor interest in the Gulf region, India and Japan, he said. But continued confidence was not guaranteed, with another 90 days of volatility in prospect following Trump's latest trade tariff hiatus with rival economic superpower China. "I think we are going to be in a period of uncertainty and we are going to start focusing on the role of deficits, which are not part of any conversations," he told the event, which was also attended by U.S. Treasury Secretary Scott Bessent and Saudi Finance Minister Mohammed Al Jadaan and Investment Minister Khalid al-Falih. "Let's be clear, the U.S. deficits are an issue ... the US economy needs a 3% growth rate to overcome its deficits and I do believe what President Trump is trying to do is consistent with what the kingdom has been trying to do, they are trying to create more public-private investing," Fink said. He also praised Saudi Arabia's Vision 2030 economic transformation program on Tuesday, saying the kingdom was building a diversified economy that had potential to become a 21st century global leader. Amid lower oil prices and rising costs, some of the kingdom's lofty ambitions for Vision 2030, including a futuristic city in the desert, have been scaled back to prioritise projects essential to hosting global sporting events over the next decade. Stephen Schwarzman, CEO of private equity firm Blackstone (BX.N) , opens new tab, alluded to some of the teething problems seen in the Crown Prince Mohammed Bin Salman's program, but urged the country to remain on track. "You are going to accomplish a lot of these things but like all great visions some of them wont happen and you can't get discouraged because that is nature of major change," he said at the event. https://www.reuters.com/business/finance/blackrocks-fink-sees-trillions-dollars-idle-volatility-persists-2025-05-13/

2025-05-13 08:45

May 13 (Reuters) - Asian equities are attracting foreign investments so far in May, marking a sharp reversal from outflows in the first four months of the year, as optimism over progress in trade talks has eased fears of U.S. tariffs fuelling a global economic slowdown. Foreign investors have purchased approximately $6.22 billion worth of equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines so far this month through May 12, according to LSEG data. Sign up here. Leading the rebound, Taiwan has attracted a net $4.43 billion in foreign inflows, ending a four-month streak of outflows, while Indian equities have also seen a substantial $1.68 billion in foreign investment. Regional stock markets suffered around $54.33 billion in foreign outflows during the first four months of the year, the largest exodus for the period since at least 2010. After a turbulent start to the year due to concern about U.S. President Donald Trump's trade policies, Asian equities have staged a strong recovery. The MSCI Asia-Pacific Index has surged 18% since April 7, driven by a 90-day halt on higher U.S. tariffs and progress in trade negotiations. The U.S. and China agreed to temporarily reduce steep reciprocal tariffs and cooperate to prevent further disruption to the global economy, with the U.S. lowering levies on Chinese imports to 30% from 145% and China cutting duties to 10% from 125% for 90 days. However, some analysts caution that uncertainty persists, as trade negotiations are expected to be prolonged and it remains too early to determine whether the tariff reductions will be permanent. "News flow around trade deals has increased, stress measures have moderated from recent extremes, the dollar has weakened, and portfolio flows show tentative signs of re-risking," Goldman Sachs said in a note. But it noted that the combination of subdued company earnings growth and complacent valuations indicates a potential for near-term market pullbacks. https://www.reuters.com/world/china/foreign-investors-return-asian-equities-may-reversing-prolonged-outflows-2025-05-13/

2025-05-13 07:43

RABAT, May 13 (Reuters) - The French Development Agency (AFD) said it would invest 150 million euros ($167 million) in Western Sahara in 2025-2026, following Paris' recognition of Morocco's sovereignty over the disputed desert territory. The long-frozen conflict, dating back to 1975, pits Morocco, which considers the territory as its own, against the Algeria-backed Polisario front, which seeks an independent state called the Sahrawi Republic in Western Sahara. Sign up here. The investment was announced on Monday following a visit to the Moroccan capital Rabat and to Western Sahara by AFD chief Remy Rioux, who met members of the cabinet and local officials, AFD said in a statement. The funds will be directed at environmental and water supply projects among other social and economic development programmes, it said. French President Emmanuel Macron has backed Morocco's sovereignty over the North African territory and supported its autonomy plan as the only solution to the conflict. He paid a visit to Rabat in October during which deals worth over $10 billion were signed. France said it will also open a cultural centre and a consular service to process visa applications from the territory. Relations between France and Algeria worsened after Macron's support for Rabat's position on Western Sahara. Since 2020, Morocco has won backing from the U.S. and the territory's former colonial power Spain, as well as Israel and more than two dozen African and Arab nations. The UN Security Council has been calling in recent resolutions on the parties to negotiate a "political" and "mutually acceptable" solution to the conflict. The Polisario withdrew from a U.N.-brokered truce but the conflict remains of low intensity. https://www.reuters.com/world/africa/french-development-agency-invest-morocco-ruled-western-sahara-2025-05-13/

2025-05-13 07:24

Qinghai Salt Lake Industry aims to control Highfield Resources with a $300 million investment Deal includes potash projects in Canada and Spain Qinghai and Minmetals are developing a lithium-potassium hub in China May 12 (Reuters) - A unit of state-owned China Minmetals plans to invest $300 million to take control of Highfield Resources (HFR.AX) , opens new tab, Yankuang Energy (600188.SS) , opens new tab said on Monday, as part of Minmetals' push into potash projects in Canada and Spain. In September, Australian potash miner Highfield said it would raise $220 million from Yankuang Energy and other parties, making the Chinese coal miner its majority shareholder. Sign up here. However, if the deal with Minmetals-owned Qinghai Salt Lake Industry (000792.SZ) , opens new tab goes through, Qinghai will become Highfield's largest shareholder. The deal will give Qinghai access to Yankuang's Yancoal Canada operations, including its Southey potash project, alongside Highfields' construction-ready Muga Project in Spain. Highfield Resources has signed letter of intent with Qinghai Salt Lake Industry, giving Qinghai the exclusive right to conduct due diligence until June 30, the company said in a statement on Tuesday. Potash is a critical component in agricultural fertilisers, essential for food production. Qinghai, which controls the most potassium and lithium resources in China, will now conduct due diligence and audit the transaction, according to a filing with the Shenzhen stock exchange. Qinghai and Minmetals, traditionally known for their mining operations focused on metals like copper and zinc, are jointly developing a 10 billion yuan ($1.39 billion) lithium and potassium production hub in northwestern China. In April, Yankuang had secured approval , opens new tab from Australia's Foreign Investment Review Board for its investment in Highfield. If a binding agreement is reached, Qinghai would also need to meet this requirement, alongside approvals from Spanish and Canadian foreign investment authorities for the deal. ($1 = 7.2022 Chinese yuan renminbi) https://www.reuters.com/business/energy/china-minmetals-unit-seeks-take-control-australias-highfield-resources-yankuang-2025-05-12/

2025-05-13 07:20

LONDON, May 13 (Reuters) - Global asset managers held their biggest underweight position in the dollar in 19 years in May, as President Donald Trump's chaotic trade policy cut investor appetite for U.S. assets, Bank of America's global fund manager survey (FMS) showed on Tuesday. The United States and China have agreed to a 90-day trade truce, after weekend talks in Geneva to break the deadlock between the world's two largest economies. Reciprocal tariffs have been slashed temporarily and, with them, the immediate threat to the global economy. Sign up here. "Pre-Geneva, investor sentiment glum, especially on U.S. assets. May FMS (was) not as bearish as April FMS, but bearish enough to suggest pain trade modestly higher given positive US-China trade war ceasefire prevents recession/credit event," BofA said. Fund managers cut their cash levels to 4.5% from 4.8%, often a sign of confidence, but held the largest underweight position in the U.S. dollar since May 2006, the bank said. Bank of America said 75% of the survey was conducted before the Geneva negotiations. The poll asks 208 panellists with $522 billion in assets under management. A quarter of respondents expect a hard landing for the economy, but this was down from nearly 50% in April's survey, while a soft landing - one where the economy gently slows without a recession - is now the central scenario, according to 61% of those polled. https://www.reuters.com/business/fund-managers-most-underweight-us-dollar-since-2006-bofa-says-2025-05-13/

2025-05-13 06:54

Shipping sector seeks to curb emissions Maersk, Lego and Novo Nordisk to be e-methanol customers Cost is one of the biggest challenges of greener shipping fuel COPENHAGEN, May 13 (Reuters) - The world's first commercial-scale e-methanol plant began operations in Denmark on Tuesday, with shipping giant Maersk (MAERSKb.CO) , opens new tab set to buy part of the production as a low-emission fuel for its fleet of container ships. The shipping sector is under pressure to find new sources of fuel after a majority of countries gave their backing to measures to help meet the International Maritime Organization's targets towards eliminating carbon emissions by 2050. Sign up here. So far zero-emission shipping fuels, such as green ammonia and e-methanol, which are produced using renewable energy, have tended to be more expensive than conventional fuel largely because they are not produced at scale. "We expect that we will have a price parity with fossil methanol around 2035," Knud Erik Andersen, CEO of Denmark's European Energy, told Reuters. Located in Kasso in southern Denmark, the new plant, which has cost an estimated 150 million euros ($167 million), will produce 42,000 metric tons, or 53 million litres, of e-methanol per year, its joint owners Denmark's European Energy and Japan's Mitsui (8031.T) , opens new tab said. Maersk will be a major customer of the Kasso plant. It operates 13 dual-fuel methanol container vessels that can be powered with fuel oil and with e-methanol and has ordered another 13 of the vessels. It said, the plant's annual production is enough to power one large 16,000 container vessel sailing between Asia and Europe. For the smaller Laura Maersk, the world's first dual-fuel container ship, with a capacity of more than 2,100 twenty-foot equivalent units, requires only 3,600 tons of fuel per year. The Laura Maersk was scheduled to fuel near Kasso on Tuesday. Traditional methanol is typically produced from natural gas and coal. The Kasso plant will make e-methanol using renewable energy and CO2 captured from biogas plants and waste incineration. Maersk said one of the biggest challenges of switching to sustainable fuel was cost, and it is researching green fuel technologies and more efficient shipping to make the process cheaper. European Energy CEO Andersen said the company has plans to expand the Kasso facility as well as a pipeline of similar plants in Europe, Australia, Brazil and the United States. In addition to its use in shipping, e-methanol can replace fossil methanol in plastic production, meaning it can supply other Danish companies. Drugmaker Novo Nordisk (NOVOb.CO) , opens new tab and toymaker Lego will use e-methanol from the plant for making injection pens and plastic elements, respectively. Excess heat generated from the e-methanol production will be used to heat 3,300 households in the local area. ($1 = 0.9004 euros) https://www.reuters.com/sustainability/climate-energy/worlds-first-commercial-scale-e-methanol-plant-opens-denmark-2025-05-13/