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Ugandan military helicopter crashes in Mogadishu Airport, Somalia
Ugandan military spokeswoman said that a Ugandan helicopter, which was part of the African Union mission to maintain peace in Somalia, crashed on Wednesday at Mogadishu Airport. Felix Kulayigye's spokesperson confirmed that three of the eight people aboard the helicopter survived, but he didn't provide any details about the fate of five others. He said that emergency responders were trying their best to put out a fire on the crash site. In a press release, the African Union Support and Stabilization Mission in Somalia said that "search and Rescue operations are underway to recover the remaining crew and passenger." AUSSOM reported that the helicopter crashed just before landing at Mogadishu International Airport. SONNA, the state-run news outlet in Somalia, reported earlier on Wednesday that a helicopter crashed and was engulfed by flames. Farah Abdulle told reporters that she heard the explosion and saw smoke and fire over a helicopter. "The smoke completely covered the helicopter." AUSSOM is a multinational force that has over 11,000 members in Somalia, helping the military to combat al Shabaab. Al Qaeda's Somalia affiliate has been fighting since nearly 20 years to overthrow the internationally recognized government of Somalia and establish their own rule based strictly on Sharia Law. (Reporting and writing by Elias Biryabarema, Aaron Ross, and Bernadettebaum; Additional reporting by AbdiSheikh and GiuliaParavicini)
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Maersk estimates that effective US tariffs currently average 21%
Maersk, a Danish shipping company, estimates that companies pay an average of 21% in U.S. import duties per container, according to the Danish shipping company on Wednesday. This is less than half what it was before Washington stopped its tariffs. Maersk stated in its regular update on the global market that, at its height, just after President Donald Trump announced tariffs against almost all U.S. Trading Partners, the average effective rate reached 54%. The estimate was based upon the container-weighted average effective tariff rate of the group. The Trump administration is urging more than a dozen of its major trading partners to come to an agreement with it by the July 9 deadline in order to prevent import tariffs from increasing. In April, Trump announced a 90-day suspension of the steep levies that he announced a week before and sent global financial markets into turmoil. Maersk stated that "the whole world is on tariff-watch in July and August when various deadlines of potential trade agreements with the U.S. are about to expire." The report added that "the outcome of these talks will, of course, colour global trade as well as consumer sentiment in months to come." The company reported that it saw a robust growth in container demand during the first half year. The report said that "what happened was not entirely unexpected and customers did advance orders before the tariff announcements." Maersk's large U.S. clients have reduced their import dependence on China over the past few years. It said that many apparel and fashion clients have reached a single-digit China dependence. It added that "other commodities, such as home improvements, have a higher level of Chinese production due to the nature and quality of the product." Reporting by Jacob GronholtPedersen and Louise Rasmussen, Editing by Anna Ringstrom & Emelia SitholeMatarise
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Kenya is looking to privatise assets of the state to attract private sector investments, according to President Ruto
William Ruto, the President of Kenya, said at the London Stock Exchange that Kenya plans to privatise certain state assets through initial public offerings to attract more private sector investments. Ruto stated that the government intends to list the Kenya Pipeline Company this year via an IPO at the Nairobi Securities Exchange. He said: "We are committed in a structured and time-sensitive program that identifies, prepares, and has a pipeline of key assets for the government to be privatised via the stock exchange or enhanced through private sector involvement." Ruto said that a well-functioning capital market at home could reduce the reliance on external borrowing. Kenya is looking for new funding sources after deadly protests across the country last summer forced them to implement austerity measures. They also scrapped planned tax increases worth over 346 billion Kenyan Shillings ($2.68billion). At the Africa Debate, which took place later that day, Ruto stated that, following recent shocks, such as President Donald Trump's decision to eliminate USAID, Kenya is now working on relying on its own resources and private investments rather than "resources over which we have no control." He said Kenya raised $1.3 billion through the securitisation of assets, such as roads. He said: "We will now list some of these bonds on the securities exchange, so that other investors can take a bite out of the cherry." $1 = 128.9500 Kenyan shillings (Reporting and editing by Karin Strohecker, Joe Bavier).
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India's Travel Food Services to IPO $233.5 Million; aims for $1.69 Billion valuation
A newspaper advertisement published on Wednesday showed that Travel Food Services, a restaurant operator at airports, had set a price range of 1,045 to 1,100 rupees as its initial public offering. This follows the blockbuster IPO by HDB Financial Services. Travel Food Services' price range values it at 144.8 billion rupies ($1.69 billion), at the top end. The company plans to raise 20 billion rupies ($233.49m) through a three-day stock sale starting July 7. Kapur Family Trust will be the only shareholder to divest its shares. The Trust did not disclose if it would divest its entire shareholding. Travel Food Services didn't immediately respond to an inquiry for comment. India's IPO is gaining momentum after a sluggish start to the year. This was due to market gyrations caused by global trade concerns and a border dispute in India. HDB Financial Services' IPO of $1.5 billion, which was launched on Wednesday, grew by more than 13 percent. It is India's biggest IPO in 2025. Travel Food Services is a joint-venture between UK-based SSP Group, and India's K-Hospitality. It has an estimated 26% market share in the domestic airport restaurants sector, according to revenue-based figures. According to a CRISIL Report, it operates Wendy's, Subway, and airport lounges. It has a domestic market share of 45%. According to the company's prospectus, revenue from operations increased by nearly 21% to 16.88 billion Rupees in fiscal 2025, while profits grew more than 27%, to 3.8 billion Rupees. Dreamfolks Services, a competitor, is valued at approximately 12.11 billion rupees. According to PRIME Database there are 143 Indian Initial Public Offerings (IPOs) planned, worth up to $26 billion. Regulators approved 73.
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INDIA RUPEE - Rupee slips and volatility expectations are unruffled due to the looming deadline for tariffs
Investors were focused on trade agreements ahead of the July 9 deadline, and so the rupee fell on Wednesday. The rupee closed the day at 85.7025 per dollar, a 0.2% decline. The Malaysian Ringgit fell by 0.7%. The dollar index rose by nearly 0.3%, hovering near the 97 handle. Stronger-than-expected U.S. economic data released on Tuesday offered mild support to the greenback with investors now awaiting a key non-farm payrolls report on Thursday and developments on bilateral trade negotiations. The rupee's implied volatility (a measure of future expectations) was hovering just a little below its average for the past three months, showing that traders have not yet priced in the possibility of large swings in near-term. Donald Trump, the U.S. president, has stated that he is not considering extending deadlines for countries to reach trade agreements but expects a deal with India. ING's note said that while Trump has ruled-out an extension, the markets are wary to take this as a given due to recent reversals. "The prevailing opinion may be that global trade threats peak just before another last-minute respite," ING stated. The rupee is expected to remain largely range-bound in the coming year. It will trail Asian counterparts due to the sustained weakness of the dollar. The rupee will fall 0.1% in three months from its current level to 85.75 dollars. According to the median forecasts of 41 FX analysts, it is expected to trade at 86.13 per dollar in a year and to drop to 85.50 within six months.
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Gulf shares tempered on tariff uncertainties, Fed rate cuts in focus
Investors weighed the uncertainty surrounding U.S. tariffs with a deadline of July fast approaching. Meanwhile, comments from U.S. Federal Reserve Chairman kept hopes alive for a rate reduction. The benchmark Abu Dhabi index dropped 0.2%. This was due to a drop of 1.4% in RAK Properties, and a dip of 0.4% in Aldar Properties. Aldar, the emirate’s top developer, has purchased warehouses and industrial properties in Al Dhafra from Waha Capital. The deal was worth 530 million dirhams. Dubai's benchmark index fell by 0.3%. Union Properties fell 1.8%, and Emirates NBD lost 0.9%. Qatar Gas Transport, the largest lender in the region, fell 1.6%, while Qatar National Bank, the benchmark index for Qatar, dropped 0.3%. Saudi Arabia's benchmark index fell 0.1%. National Shipping Company fell 3.7%, and Saudi Arabian Mining Company declined 1%. Saudi Arabia's largest mining company Ma'aden announced that it has completed the acquisition of all the stakes owned by AWA Saudi and Alcoa Saudi Maaden Aluminium Company. Arabian Drilling, a Saudi oilfield service firm, rose 5.5% on the news that it had secured 1.37 billion Saudi riyals (US$365.33 million) in contract extension for four rigs. Jerome Powell, the chair of the U.S. Federal Reserve, reiterated on Tuesday that it was going to "wait and see" what more information is available before lowering rates. According to CME's FedWatch Tool, market expectations for a cut in July have increased to 21,2% from 18,6% the previous session. Fed decisions can have a major impact on the Gulf's monetary policies, since most of the currencies in the region are pegged to U.S. dollars.
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Data shows that Russian gas exports to Europe fell 18% m/m between June and July.
Calculations showed that the average daily supply of natural gas to Europe by Russian energy giant Gazprom via the TurkStream pipeline dropped by 18.3% from a year earlier in June due to maintenance on the infrastructure. The only remaining transit route for Russian gas into Europe is through Turkey after Ukraine decided not to renew a transit agreement with Moscow that expired in January. According to available data, the total Russian gas exports into Europe between January and June fell from 15.5 billion cubic meters to 8.33 bcm, when excluding supplies via Ukraine. According to calculations based on data provided by the European Gas Transmission Group Entsog, Russian gas exports through the TurkStream pipeline decreased from 46 million cubic metres (mcm) per day per month in May to 37.6 mcm/day in June. This is also down from the 39.5 mcm that was shipped along this route in May 2024. Calculations show that Russian gas supplies via TurkStream to Europe increased by 6.8% during the first half of the year, compared to 7.8 bcm in the same period last year. Gazprom has not responded to a comment request since 2023. Gazprom's data and calculations indicate that Russia will supply 63.8 billion cubic meters of gas by different routes to Europe in 2022. This fell by 55.6% in 2023 to 28,3 bcm, but increased in 2024 to about 32 bcm. In 2018-2019 the Russian gas flow to Europe peaked between 175 and 180 billion cubic meters. (Reporting done by Oksana KOBZEVA. Vladimir Soldatkin wrote the article. Mark Potter (Editing)
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China Communist Party magazine urges crackdown on price wars
A leading publication of the Chinese Communist Party called for an end to unfair competition, which fuels price wars in different industries and reduces profits. It also criticized large companies and local government for their unfair practices. The Qiushi article, published on Tuesday, said that price wars are a "waste of social resources" and can lead to unsustainable debts. This could threaten long-term economic growth. The warning comes as a result of mounting concerns about deflationary forces in the second largest economy in the world. Also, U.S. president Donald Trump's tariffs are threatening global demand on which China heavily relies for its ambitious growth goals. In recent weeks, China has seen an increase in the number of public messages against price wars. Top leaders On Tuesday, the government pledged to tighten regulations against aggressive price cuts and state media carried front-page editorials criticizing what they called a race to bottom. It is fuelling the hopes for new policies. Unprofitable factories Close or improve consumer incomes Analysts warn that Beijing may have difficulty convincing local governments to limit access to credit because of fears about job loss. Fred Neumann is the chief Asia economist for HSBC. He said, "This is at the core of China's economy and we won't see any quick fixes." "But, I think it's encouraging that now we've seen this recognition - that there's such a thing a too much competition and an excessive price war." The Qiushi, written under pseudonyms, article focused on "involutionary competitiveness" in which firms and local governments spend capital to chase after market share despite limited demand, but fail to generate revenue growth. The report highlighted industries like photovoltaics and lithium batteries as well as electric vehicles and ecommerce platforms. Last month, solar manufacturers demanded an end to the price wars. On Tuesday, car dealers in east China complained that some automakers were pressuring them to reduce prices, citing high inventories and financial risks. The Qiushi piece also highlighted problematic corporate behavior, such as compromising product quality in order to reduce costs. This weakens innovation, reduces R&D investments and hurts the interests of consumers. It said that other firms increase their capacity, while delaying payment to suppliers and contractors. This squeezes the entire industrial chain. WARNING TO LOCAL OFFICIALS The magazine has also criticised local officials for not stepping up to the plate enough, stating that regulations haven't kept pace with new business models and industries. The bankruptcy mechanisms are "imperfect" and prevent curbing excessive supply. Some local governments that are focused on short-term economic growth attract investment through "artificially" creating policy havens with preferential taxation, fees, land use and subsidies, as well protectionist measures. Economists warn that China's high level of state-directed investment and low domestic demand due to a weak social safety net, as well as the deep inequalities between rural and urban areas, will make it overly dependent on its exports. This could lead to debt and deflation similar in nature to Japan during the 1990s. The article didn't mention deflation but warned that China could suffer from "development path dependence". It also needed supply-side changes to reduce excess industrial capacities and a strategy for expanding domestic demand. The report warned that the problem is "complex," and it cannot be resolved "overnight, or by a single, decisive action." (Reporting and writing by Joe Cash, with additional reporting from Laurie Chen in Beijing. Writing by Marius Zaharia. Editing by Shri Navaratnam & Christian Schmollinger).
MMC Port is getting closer to launching Malaysia’s largest IPO in the last 13 years
The website of the Securities and Exchange Commission showed that MMC Port Holdings had filed a draft prospectus at the securities regulator on Wednesday. This could have been Malaysia's largest IPO in the last 13 years.
The draft prospectus revealed that MMC Corp., the parent company, which owns MMC Port Holdings at 100%, would sell up to 30% of its stake in the port operator during the initial public offering.
In February, it was reported that MMC Port could earn more than 6 billion Ringgit ($1.43billion) in the second half this year. This information came from two sources who were familiar with the situation.
This would be the largest IPO in Malaysia since IHH Healthcare, a private hospital operator, listed for $2.1 billion in 2012.
According to the draft prospectus, MMC Port will offer up to 4,27 billion shares in its IPO, which includes 3.99 billion for institutional investors, and 286.1 millions for retail investors.
The draft prospectus didn't specify the IPO size nor the launch date. MMC Port didn't immediately respond to an inquiry for comment.
The draft prospectus shows that the net profit fell 9.2% from 701.13 millions ringgit to 636.56 in 2024, but revenue increased nearly 10% to 4,36 billion ringgit.
MMC Port is not expecting any profits from its IPO, but remains confident about the strength of its finances.
The draft prospectus stated that "our board believes our company does not currently require additional equity financing for our business." Reporting by Yantoultra ngi; Editing and proofreading by Muralikumar anantharaman.
(source: Reuters)