2024-11-21 07:03

Nov 21 (Reuters) - Australia's Resolute Mining (RSG.AX) , opens new tab said on Thursday its CEO Terence Holohan and two other employees, who were detained by the Mali government earlier this month, have been released from the country. Resolute's CEO and two executives were detained in Mali's capital Bamako to hold discussions with mining and tax authorities regarding general activities related to the company's business practices, it said earlier this month. The miner had also agreed to pay $160 million to the Mali government earlier this week to help resolve the tax dispute. Resolute said Holohan and the other two employees were released from the Economic and Financial Centre of Bamako, and "all three employees are safe and well and have departed the country", according to its statement. Sign up here. https://www.reuters.com/markets/commodities/resolute-minings-ceo-staff-released-by-mali-government-2024-11-21/

2024-11-21 06:56

Arrest warrants issued for Adani and nephew Adani Group firms' shares and bonds tumble Adani Green Energy bond deal pulled, bond prices fall Kenya cancels major airport project slated for Adani Indictment follows short-seller Hindenburg allegations last year NEW DELHI, Nov 21 (Reuters) - Indian billionaire Gautam Adani has been indicted for fraud by U.S. prosecutors and arrest warrants issued for him and his nephew for their alleged roles in a $265 million scheme to bribe Indian officials to secure power-supply deals. The crisis is the second in two years to hit the ports-to-power conglomerate founded by Adani, 62, one of the world's richest people. The fallout was felt immediately, as billions of dollars were wiped off the market value of Adani Group companies and Kenya's president canceled a massive airport project with the group. Adani Group said in a statement that the allegations made by the U.S. Department of Justice and U.S. Securities and Exchange Commission (SEC) in a parallel civil case were "baseless and denied," adding it would seek "all possible legal recourse." U.S. authorities said on Wednesday that eight people, including Adani and his nephew Sagar, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and to develop India's largest solar power plant project. It is unclear whether Gautam or Sagar Adani will appear in court, as they could try to get the indictment dismissed without appearing in the United States. Gautam Adani's whereabouts are unclear, and none of the defendants are in custody, a spokesperson for U.S. Attorney Breon Peace in Brooklyn said. Kenyan President William Ruto said on Thursday he ordered the cancellation of a procurement process that was expected to hand control of the country's main airport to Adani Group in a deal worth nearly $2 billion. Following the news, Adani Green Energy (ADNA.NS) , opens new tab, the company at the center of the case, canceled a scheduled $600 million U.S. bond sale. White House spokesperson Karine Jean-Pierre played down any impact from the case on U.S.-India relations, saying the countries would "continue to navigate this issue, as we have with other with other issues that may have come up." Rick Rossow, head of the India program at the Center for Strategic and International Studies in Washington, however, said the indictment added a "chill" to relations. "The positive side of the ledger still probably outweighs the negative, but this will feed into a continued sentiment in India that the United States will employ dirty tricks to slow India’s rise as a global power," Rossow said. SOLAR POWER PLANT U.S. authorities said the Adanis and Adani Green Energy's former CEO Vneet Jaain had raised more than $3 billion in loans and bonds by hiding their corruption from lenders and investors. U.S. law bars foreign companies which raise money from U.S. investors from paying bribes overseas to win business. It is also against U.S. law to raise money from investors on the basis of false statements. According to prosecutors, Adani Green Energy raised money from U.S. investors and submitted financial documents falsely stating it had not paid any government officials to secure an improper advantage. Gautam Adani is worth $69.8 billion, according to Forbes magazine, making him India's second-richest person after Mukesh Ambani. Sagar Adani is an executive director at Adani Green Energy and oversees its "strategic and financial matters." Gautam Adani, Sagar Adani and Jaain did not respond to Reuters requests for comment. Each was charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy, and the Adanis were also charged in the SEC civil case. "Gautam and Sagar Adani were engaged in the bribery scheme during a September 2021 note offering by Adani Green that raised $750 million, including approximately $175 million from U.S. investors," the SEC said , opens new tab. "The Adani Green offering materials included statements about its anti-corruption and anti-bribery efforts that were materially false or misleading in light of Gautam and Sagar Adani's conduct," it added. Another company allegedly involved in the scheme, Azure Power, was delisted from the New York Stock Exchange last November. Adani Group shares were hit hard in January 2023 after short-seller Hindenburg Research issued a report that accused it of improperly using offshore tax havens, which Adani Group denied. Following Wednesday's indictment, Hindenburg said in a statement that "since releasing our January 2023 report identifying Adani as the largest corporate con in history, we have never wavered in our view, nor has Adani ever refuted our findings." The group's market value had been $235 billion before Hindenburg's report sparked an approximately $150 billion meltdown. ADANI GROUP SAYS IT COMPLIES WITH LAWS Arrest warrants have been issued in the United States for Gautam and Sagar Adani and U.S. prosecutors plan to hand those warrants to foreign law enforcement, U.S. court records show. The defendants may seek to dismiss the indictment without appearing in person or being extradited pursuant to India's treaty with the United States. Prosecutors would oppose such a move, and a judge would review the merits before a possible trial. Prosecutors could also add more charges later, or defendants could plead guilty to some but not all charges they face. In a statement, the Adani Group said: "The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. "We assure our stakeholders, partners and employees that we are a law-abiding organization, fully compliant with all laws," it added. SHARES, BONDS SLUMP Adani Group companies collectively lost about $27 billion in value in Thursday's trade in India, reducing their combined market capitalization to about $142 billion. Shares in Adani Green Energy plunged 19% and stocks for many other firms in the conglomerate, including flagship Adani Enterprises (ADEL.NS) , opens new tab, lost more than 10%. Adani dollar bonds slumped, with prices down between 3-5c on bonds for Adani Ports and Special Economic Zone . Indian authorities, including the Securities and Exchange Board of India (SEBI) did not respond to requests for comment. An SEBI probe in the wake of the Hindenburg report is ongoing. Azure said it had been cooperating with U.S. authorities, and people named by them left the company more than a year ago. Indian opposition parties that have long complained that Adani and his conglomerate have been treated favorably by Prime Minister Narendra Modi's government called for an investigation into allegations of wrongdoing. Modi and Adani, both from the western state of Gujarat, have denied impropriety. Sign up here. https://www.reuters.com/business/energy/indias-adani-green-energy-withdraws-planned-dollar-bond-sale-sources-say-2024-11-21/

2024-11-21 06:47

US initial jobless claims rise less than expected Bitcoin continues climb toward $100,000 Safe-haven yen strengthens on Ukraine conflict, Ueda comments NEW YORK, Nov 21 (Reuters) - The dollar rose to a 13-month high in choppy trading on Thursday as investors assessed the latest labor market data and comments from Federal Reserve officials for the path of interest rates, while bitcoin continued its march toward the $100,000 level. Weekly initial jobless claims dropped 6,000 to a seasonally adjusted 213,000, a seven-month low, and below the 220,000 estimate of economists polled by Reuters, indicating job growth rebounded after being disrupted by hurricanes and labor strikes last month. However, the report also indicated labor market slack as it is taking longer for the unemployed to find new jobs, as unemployment rolls grew to their highest levels in three years, giving the Fed cushion to cut rates again in December. Bitcoin continued its recent rally that has seen the cryptocurrency surge more than 40% since the U.S. election on expectations President-elect Donald Trump will loosen the regulatory environment for cryptocurrencies. Bitcoin gained 4.23% to $98,458 after reaching a record high of $99,057. The Securities and Exchange Commission said Chair Gary Gensler, who challenged the crypto industry, will step down on Jan. 20. Recent comments from Fed officials, including Chair Jerome Powell, have indicated the central bank may take a slower course in its rate cut path, while concerns that Trump's policies could reignite inflation have helped push the dollar to a high of 107.15, its highest level since Oct. 4, 2023. The dollar index , which measures the greenback against a basket of currencies, rose 0.39% to 107.03, with the euro down 0.64% at $1.0476 after falling to $1.0461, its lowest in 13 months. "One could argue that the market is now pretty hawkishly priced, kind of the other side of the boat again, so it's starting to look a little bit aggressive in some of the Fed pricing and probably in the Bank of England as well, but at the same time they are kind of talking very hawkishly lately," said Brad Bechtel, global head of FX at Jefferies in New York. "We're just going to kind of chop around, there's a lot embedded in the dollar price at current levels so I definitely wouldn't be chasing it." European Central Bank chief economist Philip Lane said global economic output would suffer a "sizeable" loss if trade became more fragmented and an immediate boost to inflation would only fade over a few years. Expectations for the path of rate cuts have been scaled back recently. Markets are pricing in a 55.9% chance of a 25-basis-point cut at the Fed's December meeting, down from 72.2% a week ago, according to CME's FedWatch Tool , opens new tab. Federal Reserve Bank of New York President John Williams told Barron's in an interview published on Thursday he sees inflation cooling and interest rates falling further while Federal Reserve Bank of Richmond President Tom Barkin said in an interview with the Financial Times the U.S. is more vulnerable to inflationary shocks than in the past. In addition, Chicago Federal Reserve President Austan Goolsbee reiterated his support for further interest rate cuts and receptiveness to doing them more slowly. Safe-haven currencies such as the Japanese yen and Swiss franc briefly strengthened on the latest potential signs of the conflict between Ukraine and Russia escalating before reversing course. Against the Japanese yen , the dollar weakened 0.56% to 154.56 after dropping as much as 0.98%, and against the Swiss franc , the dollar gained 0.29% to 0.887 after falling as much as 0.21% on the session. Bank of Japan Governor Kazuo Ueda said on Thursday the central bank would "seriously" take into account foreign exchange rate moves in compiling its economic and price forecasts. Sign up here. https://www.reuters.com/markets/currencies/dollar-pulls-ahead-markets-focus-trump-policies-fed-outlook-2024-11-21/

2024-11-21 06:45

Cambodia plans canal costing nearly 4% of GDP Cambodian govt has announced varying levels of Chinese support China expressed misgivings, put no money on table, sources say Chinese public investment in Cambodia is plunging, tourism down China says it has 'ironclad' friendship with Cambodia PHNOM PENH, Nov 21 (Reuters) - At a ceremony in August, Cambodia's leader Hun Manet knelt to receive blessings from saffron-robed monks as fireworks and balloons heralded the breaking of ground for a canal he hopes will transform his country's economic fortunes. Addressing hundreds of people waving the Cambodian flag, Hun Manet said China would contribute 49% to the funding of the Funan Techo Canal that will link the Mekong River to the Gulf of Thailand and reduce Cambodia's shipping reliance on its neighbour Vietnam. Cambodia's government estimates the strategic infrastructure project will cost $1.7 billion, nearly 4% of Cambodia's annual gross domestic product. But months later, China's financial contribution remains in doubt. Four people directly involved in the investment plans or briefed about them told Reuters Beijing has expressed misgivings about the project and has not made definitive commitments on its funding. "It is normal business practice for Chinese companies to assist Cambodia in exploring the construction of comprehensive water conservancy projects in accordance with market principles," China's foreign ministry said in an emailed statement to Reuters when asked about the canal. The Chinese ministry did not answer a direct question about the funding but said the two countries were "ironclad friends," a comment echoed by Hun Manet in late October. Cambodia's government declined requests for interviews, and its press officers did not reply in recent weeks to requests for comments about the canal's funding. After Reuters published this article, Cambodia's ministry for public works said late on Friday that the story and other media accounts of implementation problems with the canal were "not true" and were "without clear basis". "The working group on the project has been actively progressing by cooperating with national and international institutions, contrary to what is stated in the news," the ministry said in a statement. It did not mention China or say anything about funding for the project. The ministry and a government spokesperson did not immediately respond on Saturday to Reuters requests for clarification. China's lack of clear commitment could jeopardise the entire plan, given uncertainty over the project's costs, its environmental impact and financial viability, experts, officials and diplomats say. It also underscores how Beijing is drastically downsizing its overseas investments as its domestic economy struggles, even in countries it considers strategic partners, such as Cambodia. Once a prime example for Western-backed "nation-building" after the long civil war that followed the fall of the Khmer Rouge regime, Cambodia has in recent times been widely seen by diplomats and foreign policy experts as a Chinese client state, owing to Beijing more than one-third of its total state debt. But Chinese investment in the Southeast Asian nation is now plunging, after a series of unsuccessful infrastructure projects, amid concerns over criminal gangs targeting Chinese nationals, and dropping tourist numbers. DIFFERING NARRATIVES The 180-km (112-mile) canal would greatly expand an existing waterway and divert water from the fragile rice-growing Mekong Delta to the Gulf of Thailand, cutting Cambodian shipping through Vietnamese ports. In the months after the Cambodian government signed an "investment framework agreement" in October 2023 with China Road and Bridge Corporation (CRBC), a state-owned construction company, Cambodian officials went public about China's financial involvement. The text of the deal is not public. In an interview with Reuters in May, the minister in charge of the project, Deputy Prime Minister Sun Chanthol, said CRBC would develop the canal and "totally" cover its costs, getting a multi-decade concession in return. But at the August groundbreaking, the prime minister put CRBC's share in the project at 49%, with the remainder covered by Cambodian companies. The same day, his father and Cambodia's decades-long leader Hun Sen posted a statement on Facebook calling on Japan to invest in the canal. China's official Xinhua News Agency did not mention any Chinese involvement in its report about the groundbreaking. A few days later, a communications officer for Sun Chanthol told Reuters that ownership for the canal's section to be developed together with CRBC remained "to be determined". When asked about Cambodian assertions that CRBC would have a 49% stake, an official for the company told Reuters in mid-October the figures circulating publicly were not definitive. "It's very complicated," said the official, who did not elaborate. CRBC and its parent company did not reply to requests for comment. One person directly involved in the investment plans told Reuters in early November there was no Chinese money on the table at that stage, confirming the account from another official. A source from one of the Cambodian investors in the project said it would not be a surprise if China did not invest in the canal at all. A fourth official briefed on the matter said China earlier this year had privately criticised Cambodian officials for announcing Chinese funding for the project that had not been decided. They all declined to be named because of the issue's sensitivity. More than three months after groundbreaking, the site of the ceremony on the bank of the Mekong laid abandoned, a Reuters reporter observed. CHINA INVESTMENT DOWN Dithering over the canal comes as Chinese official development assistance to Cambodia, including infrastructure funding, is falling. China's disbursements to Cambodia are projected to drop to $35 million in 2026 from more than $420 million in 2021. There have been no new Chinese loans in the first half of this year, down from $567 million in 2022 and $302 million last year, according to Cambodian official data. Chinese funding for overseas projects is also falling elsewhere, but in Cambodia the impact "could be very pronounced," said Grace Stanhope of the Lowy Institute, a Sydney-based think tank. China is still building roads and other infrastructure but has pulled out from the construction of the new Phnom Penh airport, where it had initially committed $1.1 billion. That disengagement came as an expressway built by CRBC connecting Phnom Penh to the coastal city of Sihanoukville remained under-utilised by Cambodian motorists and truck drivers who to avoid tolls prefer the crowded but free old road, a Reuters reporter observed, confirming accounts from multiple Cambodia-based officials. Another recently completed Chinese-backed airport at Siem Reap to serve the UNESCO world heritage site of Angkor Wat "is very quiet," said Ou Virak, head of Cambodian think tank Future Forum, noting investors may face losses. Chinese private investment remains high, but multiple Phnom Penh-based diplomats and financial experts point to once large inflows of Chinese informal funds destined to the gambling industry and real estate sector having dried up. Chinese tourism, once a major source of income for Cambodia, has also struggled to recover from the COVID pandemic. That has coincided with a prolonged Chinese campaign warning tourists of risks linked to an online scams industry in Cambodia. As relations between China and Cambodia evolve, the canal project's fate and its sustainability remain uncertain. "With so many unknowns, it's no surprise to me that investors are getting cold feet on this project and have yet to show up with their money in hand," said Brian Eyler, an expert on the Mekong region at U.S.-based think tank Stimson Center. Sign up here. https://www.reuters.com/world/asia-pacific/cambodias-flagship-canal-hot-water-china-funding-dries-up-2024-11-21/

2024-11-21 06:39

BOJ will set policy 'meeting by meeting,' Ueda says BOJ will scrutinise data available up till Dec meeting Ueda says too hard to predict impact of Trump policies TOKYO, Nov 21 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will "seriously" take into account foreign exchange-rate moves in compiling its economic and price forecasts. On monetary policy, Ueda reiterated that the BOJ will reach a decision "meeting by meeting" on the basis of information that becomes available. There is still a month to go until the BOJ's next policy meeting in December, he noted, adding that there will be more information to digest by then. The weak yen - which had pushed up import costs and inflation - was among the factors that led to the BOJ's decision to raise interest rates in July. "We do seriously take into account exchange-rate movements in forming our economic and inflation outlook including the question of what's causing the exchange-rate changes that are taking place at the moment," Ueda said at an Europlace Financial Forum in Tokyo, when asked about the impact of currency moves. Ueda did not make remarks on monetary policy in a prepared speech delivered at the forum, which focused on how technological innovation could create financial system risks. The dollar fell 0.47% to 154.65 yen and the yield on the 5-year Japanese government bond (JGB) rose 4 basis points to 0.75%, the highest since June 2009, after Ueda's remarks as markets interpreted them as signalling the chance of a rate hike next month. The dollar's recent rally, caused in part by market expectations that U.S. President-elect Donald Trump's proposed inflationary policies could prevent the Federal Reserve from cutting rates too much, has pressured the yen lower. Ueda said it was too hard to predict how Trump's policies could affect Japan's economy. "As soon as the new administration announces new set of policies, we would like to incorporate into our economic outlook," Ueda said. The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view Japan was on the cusp of durably achieving its 2% inflation target. Ueda has signalled the bank's readiness to raise rates again if the economy and prices move in line with its forecast. A Reuters poll conducted on Oct. 3-11 showed a slim majority of economists projecting the BOJ to forgo raising rates this year, although nearly 90% expect rates to increase by March. Sign up here. https://www.reuters.com/technology/artificial-intelligence/bojs-ueda-warns-ai-could-bring-new-financial-stability-risks-2024-11-21/

2024-11-21 06:38

Nov 21 (Reuters) - French infrastructure and technology company Technip Energies (TE.PA) , opens new tab set out its short-term and medium-term targets at its Capital Market Day event on Thursday, unveiling its strategy for the next four years. The company, which specialises in technology for the energy sector, expects Project Delivery revenue of between 5.0 billion and 5.4 billion euros ($5.27 billion and $5.69 billion) in 2025, with a core profit (EBITDA) margin of around 8%. For its Technology, Product & Services segment, it targets 2025 EBITDA margin of 13.5% on revenue of 2.0-2.2 billion euros. The 2025 growth expectations for both segments are underpinned by backlog strength and a set of commercial opportunities, the management said during a press call. Technip Energies' shares, which had gained 18% since it reported its last quarterly results, were down 2% by 1056 GMT. "The recent outperformance since third quarter results and lack of a firm buyback commitment ... have led to the somewhat weak performance in the shares this morning," BNP Paribas analyst Daniel Thomson said. The company said its commercial pipeline of more than 75 billion euros through to the end of 2026 was "well balanced by market and geography". It also outlined its 2028 goals. In the PD segment, it guides for an EBITDA margin of 8.5% on revenue of more than 6.0 billion euros. In the TPS segment, it sees a margin of 14.5% and revenue of 2.6 billion. Asked about the United States and the posture of President-elect Donald Trump towards the green energy transition, CEO Arnaud Pieton defined the U.S. as a "pro-business" country. "I do not think the United States will allow itself to fall behind in the race for energy transition, nor will it let China gain an advantage or a lead that cannot be overcome. Therefore, I anticipate that the future administration will want to stay competitive in this arena," Pieton said. During his campaign, Trump vowed to reverse dozens of environmental policies deemed onerous by oil and gas drillers. Technip Energies forecast a cumulative free cash flow of 2.2-2.6 billion euros for 2024-2028 and said it planned to pay out between 25% and 35% of its free cash flow as dividends, excluding working capital. ($1 = 0.9490 euro) Sign up here. https://www.reuters.com/business/energy/technip-energies-unveils-2025-2028-outlook-2024-11-21/