2025-12-09 19:44

LONDON, Dec 9 (Reuters) - Shareholders of Anglo American (AAL.L) , opens new tab and Teck Resources (TECKb.TO) , opens new tab on Tuesday approved a previously announced merger, the companies said, paving the way for the creation of a copper heavyweight and leaving regulatory approvals as the final hurdle. More than 99.17% of votes cast by the London-listed miner's shareholders were in favour, Anglo said in a release. A simple majority was required for the motion to pass. Sign up here. Teck's shareholders also cleared their two-thirds approval threshold. The new company, Anglo-Teck, will be headquartered in Vancouver, with its primary listing in London. Teck and Anglo American first announced plans in September for a $53 billion all-stock, nil-premium merger that would create the world's fifth-largest copper producer. Both companies have undergone significant restructuring in recent years, driven in part by previous takeover attempts. Copper, a key metal for the power and construction industries, is poised to benefit from surging demand driven by electric vehicles and artificial intelligence. Miners have rushed to develop new projects amid a wave of takeover activity, though no major deal has yet been completed. One key hurdle for the deal had been the risk of an interloper: the world's largest listed miner, BHP (BHP.AX) , opens new tab, made a renewed approach for Anglo in November, while activist investors have been pushing Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab to pursue Teck. The combined entity is projected to produce more than 1.2 million metric tons of copper annually. The tie-up is also expected to generate $800 million in annual cost savings and efficiency gains by the fourth year after completion, the companies said. Shares of Teck were down 0.8% following the shareholder vote. Anglo's shares closed down 0.5% in London. The next step for both companies is to secure regulatory approvals in Canada, China and other key jurisdictions. The review process is expected to focus on competition and national interest considerations, particularly given copper's designation as a critical mineral. https://www.reuters.com/legal/transactional/anglo-american-shareholders-approve-merger-with-teck-resources-2025-12-09/

2025-12-09 19:31

TORONTO, Dec 9 (Reuters) - Shareholders of Canadian miner Teck Resources (TECKb.TO) , opens new tab on Tuesday voted in favor of the merger with Anglo American (AAL.L) , opens new tab, paving the way for both companies to move to the next step of seeking approvals from regulators across the world, including Canada. Teck and Anglo American announced in September that they were merging in an all-stock $53 billion deal to create the fifth-largest copper miner in the world. Sign up here. The combined entity, to be known as Anglo-Teck, would be headquartered in Vancouver, Canada, with a listing on the London Stock Exchange. The Anglo-Teck portfolio will produce more than 1.2 million tonnes of copper annually, the companies had said. Demand for copper has surged as major AI players look for steady sources of electricity to power a data center boom, putting global miners in the spotlight and spurring consolidation in the industry. The two companies operate adjacent copper mines in Chile — Quebrada Blanca and Collahuasi — which are expected to deliver further operational benefits. Quebrada Blanca is Teck's flagship mine, but a tailings issue related to the disposal of mine waste has caused it to miss production forecast, dragging down the company's shares. For both Teck and Anglo, the merger is a defense against hostile acquisition offers from other mining giants such as BHP and Glencore. Analysts say the deal has, for now, put on hold any possibility of interlopers who could break the deal. However, the merger also opens the door for other miners to set out on mega acquisitions in the sector. https://www.reuters.com/business/teck-resources-shareholders-approve-merger-with-anglo-american-2025-12-09/

2025-12-09 19:03

Government borrowing primary driver, fiscal stimulus packages to increase debt Emerging markets face $8 trillion redemptions, mature markets $16 trillion refinancing US Supreme Court decision on tariffs could increase fiscal pressure NEW YORK, Dec 9 (Reuters) - Developed markets led a borrowing push that lifted global debt to near $346 trillion at the end of the third quarter, while a pending ruling on the legality of U.S. tariffs could force even more U.S. issuance, a banking trade group said. The Institute of International Finance said total debt reached $345.7 trillion by the end of September, equivalent to about 310% of global GDP, a relatively steady ratio since mid-2022. A softer U.S. greenback helped inflate the value of most local-currency liabilities when translated into dollar terms. Sign up here. "Most of the overall rise came from mature markets, where debt accumulation has accelerated rapidly this year as key central banks ease policy," said the report co-authored by Emre Tiftik, director of sustainability research at the IIF. CHINA AND US DELIVER LARGEST INCREASES Through September, debt increased by $26.4 trillion this year - some $675 billion per week. Last quarter, China and the United States again delivered the largest increases in government debt, followed by France, Italy and Brazil, according to the IIF. Mature markets' outstanding debt rose to a record $230.6 trillion, while emerging markets also hit a record above $115 trillion. Russia, Korea, Poland and Mexico posted some of the largest increases. A newly highlighted risk comes from the pending U.S. Supreme Court decision on the legality of tariffs imposed by the Trump administration earlier this year. The IIF warned that an adverse ruling could materially increase fiscal pressure on the U.S., likely pushing the Treasury to borrow even more. Government borrowing remained the primary driver of the global increase. "With budget deficits still elevated - and the impact of large fiscal stimulus packages set to kick off in 2026 in Japan, the U.S., Germany, and China - sovereigns are likely to continue adding to their debt burdens and interest expenses,” according to the IIF. EM EUROBOND ISSUANCE REACHED RECORD HIGH On the market side, emerging market sovereigns have leaned more heavily on international markets this year. EM eurobond issuance has reached a record high in 2025, aided by the weaker dollar and continued policy easing by major central banks. EM sovereign issuance this year stood at $255.7 billion at the start of December according to a JPMorgan tally, making 2025 the highest annual gross issuance, with EM investment grade taking $182.1 billion of the total. The Wall Street bank considers this year a "one-off", however, and expects next year to show a dip in issuance. Despite the large issuance, access remains sharply limited, especially for countries emerging from debt restructurings, the report noted. Corporate debt is also rising. Non-financial corporate liabilities are now approaching $100 trillion, the report said, with borrowing accelerating in AI-linked and clean energy sectors. U.S. AI-related bond issuance hit a record in 2025, and new debt has continued to flow, prompting some concerns in the U.S. corporate bond market. Global household debt rose to nearly $64 trillion, but its debt-to-GDP ratio fell to 57%, its lowest since 2015, as households slowed borrowing amid heightened uncertainty and persistent cost-of-living pressures. Looking ahead, emerging markets face nearly $8 trillion in bond and loan redemptions in 2026, while mature markets are set to refinance over $16 trillion, raising the risk of funding strains if global conditions tighten, said the IIF. https://www.reuters.com/world/americas/mature-markets-push-global-debt-record-near-346-trillion-says-iif-2025-12-09/

2025-12-09 18:38

CHICAGO, Dec 9 (Reuters) - The U.S. Department of Agriculture left its U.S. soybean export forecast unchanged in a monthly report on Tuesday as sales resumed to China, which for months shunned purchases because of its trade war with Washington. The USDA pegged soybean exports in the 2025/26 season that ends on August 31 at a 13-year low of 1.635 billion bushels, down 13% from the prior year. Ending stocks were unchanged from a month earlier at 290 million bushels. Sign up here. The world's biggest soy importer resumed buying U.S. soy after a meeting between Presidents Xi Jinping and Donald Trump in late October, where the White House said China agreed to buy 12 million metric tons from the current crop. Some of the nearly 2.9 million metric tons in confirmed sales to date have already started to ship. The purchases, however, were well below levels that China has imported from the U.S. in recent years, and that loss of demand has pressured soybean prices and cost U.S. farmers billions of dollars in lost sales. FURTHER CUTS TO THE OUTLOOK ARE POSSIBLE Total soybean sales to all destinations through early November were down nearly 40% from the same period a year earlier, according to USDA data, suggesting further cuts to the outlook are likely. "Maybe the USDA is just leaving the door open for China to buy more or for the rest of world to somehow make up the difference," said Ted Seifried, chief strategist at Zaner Group. The White House on Monday made public a $12 billion aid package for American farmers hurt by its trade policies. Corn exports have been robust, and the USDA on Tuesday raised its U.S. corn export forecast as sales of the grain to global buyers have been stronger than anticipated. U.S. corn exports were seen at a record 3.200 billion bushels, up from 3.075 billion a month earlier, while end-of-season supplies were estimated at 2.029 billion bushels, down from the USDA's prior-month forecast of 2.154 billion. Benchmark Chicago Board of Trade soybean futures extended declines after the USDA report, trading at the lowest since October 30, while corn futures firmed. (This story has been refiled to add a dropped word in analyst's quote in paragraph 6) https://www.reuters.com/sustainability/climate-energy/usda-leaves-us-soybean-export-outlook-unchanged-after-china-sales-resume-2025-12-09/

2025-12-09 18:13

WASHINGTON, Dec 9 (Reuters) - Banks will be allowed to act as intermediaries on crypto transactions, a national U.S. bank regulator said on Tuesday, in the latest step by the Trump administration to narrow the gap between the traditional financial sector and crypto activities. The Office of the Comptroller of the Currency issued new guidance saying that banks can engage in what are known as "riskless principal" transactions that involve crypto assets and would not receive scrutiny from the regulator. Sign up here. In such transactions, banks effectively act as brokers, buying assets from one counterparty while simultaneously entering into a transaction to sell those assets to another counterparty. The bank does not hold on to any crypto assets in inventory as part of the process, except in rare circumstances, the OCC said. U.S. President Donald Trump has taken a welcoming approach to the crypto sector, rewriting rules and removing guardrails, while his family engages in crypto ventures. Critics say such changes have made the traditional financial sector and the loosely-regulated and volatile world of cryptocurrencies more interconnected, potentially creating systemic risks. U.S. bank regulators have already withdrawn numerous restrictions on crypto activities by banks established under President Joe Biden. In March, the OCC approved some crypto activities by banks, and scrapped earlier guidance telling firms to seek advance approval from watchdogs before diving into the sector. https://www.reuters.com/sustainability/boards-policy-regulation/us-bank-regulator-says-banks-can-act-crypto-intermediaries-2025-12-09/

2025-12-09 17:48

Investors expect Fed rate cut this week, but with dissents Unanimous Fed policy decisions will be rare in 2026, analysts say Politicization of US central bank is a risk but not yet priced in LONDON, Dec 9 (Reuters) - What is expected to be one of the most ructious Federal Reserve policy meetings in years this week could well prove to be the road test for financial markets on how U.S. monetary policy debates will shape up in 2026. Heading into the two-day meeting that began on Tuesday, markets are pricing in an almost certain chance of an interest rate cut by the U.S. central bank's policy-setting Federal Open Market Committee, even though the group is the most divided it has been in years. Sign up here. The weeks leading up to the meeting have been stressful for investors, with little data to parse during a record 43-day U.S. government shutdown, conflicting messages from Fed officials and the unrelenting push from President Donald Trump's administration for lower rates. Expectations that the Fed will reduce its benchmark overnight interest rate by a quarter of a percentage point to the 3.50-3.75% range have climbed to 87% from 30% in the past three weeks, spurred largely by New York Fed President John Williams' recent support for an insurance rate cut. Investment banks Morgan Stanley, J.P. Morgan and BofA reacted by changing their calls to a cut at the December 9-10 meeting. Yet, analysts expect as many as five of the 12 voting members of the FOMC will have divergent views, reinforcing the refrain in markets that the Fed is turning more political. The policy committee has not had three or more dissents at a meeting since 2019, and that has happened just nine times since 1990. Analysts now expect such dissent will persist. "The more dissent that you see, and the more open it is, the more it does call into question about how willing the Fed is to become more politicized," said Sally Greig, head of global bonds at Scottish long-only investment manager Baillie Gifford. "It raises questions about how willing they are to keep life a little bit easier for them by erring on the side of being a bit too dovish rather than a bit too hawkish, how concerned they are for their own jobs." Trump's appointees to the Fed's seven-member Board of Governors have been dovish. His economic adviser Kevin Hassett, a top candidate to succeed Fed Chair Jerome Powell next year, has called for lower rates. Fed Governor Stephen Miran, another Trump economic adviser who was appointed in September to fill an unexpected board vacancy, has been pushing for oversized rate cuts. Other FOMC members such as Kansas City Fed President Jeffrey Schmid, St. Louis Fed President Alberto Musalem and Fed Vice Chair Philip Jefferson, however, have been equally vocal about their preference to keep rates steady. When Williams, normally a more neutral voice, was explicitly dovish about a December rate cut within weeks of Powell saying in October that a December cut was far from certain, more investors got twitchy about political pressure. FOCUS ON POWELL'S SUCCESSOR Even if the Fed cuts rates this week and signals it will hold them steady in January, "the market may not give that signal credence, given the 180-degree turnaround from the hawkish signals at the October meeting and minutes," Standard Chartered Bank analysts Steve Englander and John Davies wrote this week. Traders pointed to rising volatility priced into short-term interest rate options and steepening long-term yields as a sign of such concern. "There's more sensitivity now and people are having to decide whose comments you place weight on," a bond trader in London said. Yet, barely 75 basis points of Fed easing is expected by the end of next year, according to rates futures markets. Fabio Bassi, head of cross-asset strategy at J.P. Morgan, says investors should not focus only on the December meeting. "Powell's Fed, which is in charge now, is not leaning towards very aggressive action, they are delivering insurance cuts." Trump, however, seems bent on lower borrowing costs ahead of the U.S. midterm elections late next year. The Republican president, who has voiced repeated displeasure with Powell's stewardship of the Fed, said support for immediately cutting rates would be a requirement for anyone he chose to lead the central bank, according to a Politico interview published on Tuesday. The Fed cut rates at its September and October meetings. Trump's attempt to fire Fed Governor Lisa Cook, who was appointed by former President Joe Biden, and recent comments by Treasury Secretary Scott Bessent about possible changes to how the Fed's regional bank presidents are hired are also fueling more concerns about politicization of the central bank. But how far that political pressure will influence the Fed isn't clear. "I understand why people are talking about it, but I don't think it would be justified for it to be in the price at the moment, given what we know," said James Athey, fixed income fund manager at London-based investment group Marlborough. "I think it's a risk. It's not a reality." Tim Winstone, head of investment grade credit at Janus Henderson Investors, said some clients are rethinking options when allocating the marginal dollar and investing less in the U.S. "It's people just acknowledging that the risks to what the United States historically stood for are higher. And the evolving political landscape and the impact that has on the Fed is certainly a factor." https://www.reuters.com/business/investors-warm-up-long-spell-discordant-fed-2025-12-09/