East Asia

Kenya and two Chinese firms began construction on a $1.5billion highway expansion in East Africa Friday. This marked Beijing's return after years of absence to major infrastructure developments. The partners will finance the project in two phases using a combination of debt and equity, a model which is becoming more popular after China's traditional loan model raised concerns about borrowers' debt loads. Kenya chose to use the public-private model for funding the highway because it would have taken "a lifetime" to secure normal budgetary allocations, said President William Ruto. The next option, borrowing, was also unaffordable, given the debt load...

The Italian court ruled plans for the largest suspension bridge in the world between Italy's mainland and Sicily's island would violate EU environmental and procurement rules. However, the government has said that it will not abandon the flagship project. The government of Prime Minister Giorgia Melons says that the 3,666 metre bridge planned over the Strait of Messina, which is longer than the one in Turkey, will bring prosperity to the traditionally poorer areas and aid the movement of NATO troops. In a 33-page decision published late Thursday, the Court of Auditors stated that the government had failed to justify...

Kenya and two Chinese firms will begin construction on a $1.5billion highway expansion in East Africa this Friday. This marks Beijing's return after years of absence to major infrastructure developments. The partners will finance the project in two phases using a combination of debt and equity. This model is becoming more popular after China's traditional loan model raised concerns about borrowers' debt loads. Kefa SEDA, Director General of Public-Private Partnerships at Kenya's Finance Ministry told the official launch that "we don't have the room to borrow more money." The project will upgrade a vital transport corridor connecting Kenya's port city...

BlackRock and MSC’s bid to buy most of CK Hutchison’s global port operations is facing a major obstacle in Europe. EU antitrust regulators are set to investigate the Spanish part of the deal. CK Hutchison, owned by Hong Kong tycoon Li Kashing, wants to sell 80% of its stake in the $22.8billion ports business. This includes 43 ports in 23 different countries. It is a politically sensitive transaction that has become entangled in tensions between China and the United States. BlackRock and MSC could be asked to make concessions in exchange for the clearance of the Spanish deal, as a...

Lawyers for commodity trader Trafigura accused Indian businessman Prateek gupta of siphoning funds from an alleged metals fraud worth $600 million to prop up their struggling business empire. Trafigura, a Geneva-based company, sued Gupta more than two years ago. It claimed that he was behind a scam where he and his firms agreed to deliver pure nickel but instead delivered scrap steel or other metals. Gupta claims that Trafigura employees designed the scheme at the heart of the case. Trafigura, however, has denied this claim repeatedly. Gupta admitted on the second day of his testimony in the long-running trial at...

The major Gulf stock markets were mixed early on Tuesday, after the Federal Reserve's dovish remarks revived hopes of a U.S. interest rate cut in December. Fed Governor Christopher Waller stated on Monday that the labor markets have softened enough to justify a rate cut of 25 basis points at the December meeting. However, any further easing depends on the release of economic data which was delayed due to the government shutdown. His comments follow New York Fed president John Williams' Friday comment that interest rates will likely decline "in a near-term." According to the CME FedWatch tool, investors now...

U.S. president Donald Trump has targeted China as his top economic rival with a cascade on tariffs that are worth billions of dollar. He is trying to reduce a trade surplus, bring back lost manufacturing and cripple fentanyl traffic. In reverse chronological order, here are the key events of this year in U.S. China trade war: November 24 - Chinese president Xi Jinping makes a surprise call to his U.S. counterpart, just weeks after their meeting in South Korea at the end of October. Xi told Trump that their countries must maintain momentum and "enlarge the list for cooperation and...

According to LSEG and two industry sources, Russia's Black Sea Port of Tuapse resumed exports of oil products last week, after a suspension for two weeks due to drone attacks by Ukraine. The local refinery also re-started processing crude oil. According to sources and data from ship tracking, the Gambia flagged tanker Sandhya departed Tuapse with 30,000 metric tonnes of gasoil on November 17, and was heading towards the Suez Canal. On November 18, the Satna, a tanker with the Malawi flag, loaded around 30,000 tonnes of gasoil. The traders claimed that the fuel stored in tanks on these two...

In a London court on Monday, Trafigura’s former chief nickel trader denied accusations by Indian businessman Prateek gupta that he was involved in a $600-million fraud to exchange expensive metals with cheap or worthless ones. Trafigura, a Geneva-based company, sued Gupta more than two years ago. It claimed that he was responsible for a fraud where he and his firms agreed to deliver high-quality nickel 99.8% pure but instead delivered scrap or steel. Gupta based in Dubai has denied that Trafigura employees devised the plan, creating a complex merry go round of transactions which would appear to boost its status...

A senior government official announced that Tanzania would begin construction on a new port located in the eastern part of the country by December. This will end a decade-long delay caused by government objections over the contract terms initially agreed upon with foreign developers. Bagamoyo Port, a large-scale initiative of a special economic zone, involving industrial parks, rail and road connections, is located approximately 75 km north of Dar es Salaam, the commercial capital. Gerson Msigwa told reporters that on Sunday, the port would have 28 berths, but initially, construction will begin on 14. He said that construction machinery would...

China's private REIT market, which is still in its infancy, has emerged as an oasis of hope for developers who are strapped for cash. This year, the pipeline for fundraising reached a record $12 billion, driven by investor demand for higher returns. The private REIT market has experienced rapid growth since its launch in 2023. This market is restricted to professionals only. Developers are attracted to the faster and more relaxed approval processes compared to public REITs, and its potential for revitalising income generating assets in spite of the property sector's slump. Analysts said that while public REITs tend to...

China signed an agreement worth $1.4 billion with Tanzania and Zambia on Thursday for the modernisation of the TAZARA rail linking landlocked Zambia to Indian Ocean. China financed the railway in the 1970s for copper exports and fuel imported through Tanzania. It remains a vital trade route, and is widely viewed as a counter to the U.S.-EU-backed Lobito Corridor – a route that runs from Angola to Zambia and the Democratic Republic of Congo. The agreement was signed by Chinese Premier Li Qiang during his first visit to Zambia in 28 years. At a time when Africa’s second largest producer...

A notice published by the London Metal Exchange on Friday revealed that Henry Bath & Son, a warehouse operator in Hong Kong has been the latest company to register a facility at the London Metal Exchange. According to the LME's notice, the warehouse is located in Hong Kong’s New Territories in the Kwai-Chung district. It can store nickel, lead and zinc, as well as copper, aluminum and aluminium alloy. The LME approved the first Hong Kong warehouses in January of this year. Its aim is to provide a gateway into mainland China, which is the largest metals consumer in the...

Indian businessman Prateek gupta was accused of orchestrating a $600m metals fraud by commodity group Trafigura. He told a court in India on Friday that he didn't know who within his companies had allegedly made fake documents for selling the same cargo to multiple customers. The long-running trial concluded on Friday with the testimony. It will resume again on December 10, for closing arguments. Trafigura, a Geneva-based company, sued Gupta in more than two years. It claimed that he had orchestrated a ruse where he and his firms agreed to deliver pure nickel instead of steel or scrap. Trafigura's lawyers...

Lawyers at Trafigura said that Prateek Gupta’s claims that the group devised a secret plan to exchange expensive nickel for low value metals are full of contradictions. The Indian businessman was giving evidence in an ongoing fraud case. Trafigura, a Swiss commodity trader, sued Gupta two years ago. It claimed that he was behind a scam where he and his firms agreed to deliver pure nickel but instead delivered scrap steel or other metals. Gupta countered by claiming that Trafigura staff themselves designed the scheme at the heart of the case. Trafigura, however, has denied this claim repeatedly. Gupta, who...

Lawyers for Trafigura accused Prateek gupta, an Indian businessman who gave his first testimony on Wednesday, of a long history of fraud. Gupta admitted that he was under investigation for fraud in India but denied these allegations when he appeared in the High Court of London. Trafigura, a Swiss company, sued Gupta two years ago. It claimed that he was behind a scam where he and his firms agreed to deliver pure nickel but instead delivered scrap steel or other metals. Nathan Pillow, a Trafigura lawyer, cited two more fraud cases in which low-value metals were substituted with nickel. Gupta...

China Gas Holdings, a privately-controlled city gas distributor, has hired an ex-senior trader of the Chinese utility GCL Group as its head of global natural gas sales. Xiong Xin was the head of gas trading for GCL New Energy Holdings (a unit of GCL Holdings), a solar power company, until early 2024. He joined China Gas in Oct. Xiong has nearly a decade's worth of experience in trading at the state oil giant CNOOC, and privately owned Chinese gas company ENN, before he joined GCL. He now heads China Gas’ growing liquefied gas trading business, as well as liquefied petrol...

Investors cited concerns over Prime Minister Sanae Takayichi's plans to spend. The yield on the 20-year JGB rose by up to 2 basis points to 2,695%. And for the 30-year JGB, it rose by 2 bps to 3,195%. These are their highest levels since October. Takaichi announced this week that she would set a new fiscal goal extending over several years in order to allow for more flexibility with spending. This is a way to water down Japan's commitment towards fiscal consolidation. Takashi Fujiwara is the chief fund manager of Resona Asset Management’s fixed income division. The increase in yields...

The London Metal Exchange said Thursday that it intends to set permanent rules imposing restrictions on members who have large positions in contracts near them due to low inventory levels. Hong Kong Exchanges and Clearing Ltd., the world's largest and oldest market for industrial metals which is owned, placed temporary restrictions on June following a spike in premiums for copper contracts near by. LME stated that these measures were implemented in response to a low-stock situation combined with large positions in nearby dates. This had led the LME Special Committee to instruct market participants to reduce their large on-exchange position....

ANE (Cayman), a Chinese-based transport and delivery services company, said Tuesday that a consortium including its largest shareholder Centurium Capital and Temasek, had offered to buy it out. The deal valued the group at HK$14.33bn ($1.84bn). Shareholders can choose between a cash payment of HK$12.18 for each ANE share, an alternative share, or a mix of both. The cash consideration represents a premium to the last closing price of the company on October 24, which was 29.6%. Centurium Capital owns around 24.32% ANE shares. Temasek, True Light and other investors do not hold any ANE shares. ANE had earlier this...

United Parcel Service on Tuesday forecast revenue for the fourth quarter above Wall Street estimates, relying on price increases to offset a soft demand from business-to-business in the U.S. The company estimated revenue at about $24 billion. According to LSEG data, analysts' average quarterly revenue was $23.8 billion. In premarket trading, shares of the company rose 12%. The largest parcel delivery company in the world reported a net profit of $1.48billion, or 1.74 cents per share for the three-month period ended September 30. This compares to $1.50billion, or 1.76 cents per share a year ago. UPS and FedEx have seen...

ANE (Cayman), said that it received on Friday a conditional offer from a consortium, including Centurium and Temasek, for a potential take-private transaction which could lead to the delisting of ANE from Hong Kong Stock Exchange. In a filing to the stock exchange, the Chinese transport and delivery company stated that an indicative proposal had been submitted on 17 September. It involved Centurium Capital which owns approximately 24,422% of ANE shares and entities related to Temasek, True Light Capital and other companies. After trading was resumed after the announcement on September 18, shares in ANE fell 12%. According to the...

Wall Street fell on Thursday as signs of weakness among regional banks frightened investors who were already on edge due to the U.S. - China trade tensions. Zions Bancorporation shares fell after the regional lender disclosed an unexpected loss in two loans made to its California division. This added to investor anxiety about hidden credit pressure as lenders navigate economic uncertainty while interest rates are still relatively high. Western Alliance's slump also fueled concerns about regional banks after it announced it had initiated a lawsuit for fraud against one of their borrowers. Investors were watching the S&P 500, which recently...

Transnet's CEO announced on Thursday that a South African court had ordered China's CRRC E-Loco, which has been in a long-running dispute with Transnet, to release locomotive parts it had refused to provide. This decision is a boost to the plans of Transnet to improve its performance. Both parties are involved in a legal battle after Transnet halted 1,064 locomotives supplied by four original equipment manufacturers, including CRRC E-Loco. Transnet claimed that contracts for 2014 worth $54.4 billion rand (3.18 billion dollars) were illegally awarded by previous company leadership. Transnet reported that in 2023 161 locomotives provided by CRRC E-Loco...