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Australian shares fall as miners and banks drag on Mideast tensions
Australian shares dropped on Monday as investors waited for "clearer signs" on the prospects of a permanent ceasefire. By 0021 GMT, the S&P/ASX 200 index had fallen 0.5% to?8,745.80 and was heading for its fifth consecutive session of losses. The benchmark index fell 1.8% in the past week, its biggest weekly drop since mid-March. Donald Trump, the U.S. president, said that Iran can call to negotiate an end of the two-month conflict, and stressed that Tehran will never be able to?acquire a nuclear weapon. This came after Trump, on Saturday, cancelled a planned U.S. ambassador visit?to Islamabad. Financials in the United States fell by 0.6%, with the four largest banks falling between 0.6% to 1% Investors are now looking to the Reserve Bank of Australia's meeting next week for clues on the country's rate trajectory. After the copper price fell on Friday, miners lost 0.3%. Mining giant BHP also dropped 1%. Energy companies lost 1.6%. This was the worst session of a week. Origin Energy, a power producer, fell as much as 4.5% after reporting a quarterly revenue drop of 9%. Gold?stocks rose 0.5% on Friday, bucking the trend of broader losses. Tech stocks gained?0.7% on the Nasdaq record-setting Friday close. Megaport, a network-as -a-service company, announced a contract for a 36-month period worth $25 million. The firm's shares jumped up to 9.5% and topped the subindex. Atlas Arteria shares jumped up to 15.5% in company news after the 'IFM Global Infrastructure Fund' launched a takeover offer, valuing Atlas Arteria at A$6.89 Billion. ($4.92 billion). New Zealand's markets were closed on Monday because of a public holiday.
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IFM Global Infrastructure Fund makes an offer to purchase Atlas Arteria for $4.9 billion.
IFM Global Infrastructure Fund announced a 'takeover offer' on?Monday? for all of the shares that it doesn't currently own in Australia’s Atlas Arteria. The toll road operator is valued at A$6.89billion ($4.92billion). Diamond - Infraco 1, the investment unit of IFM Global Infrastructure Fund, has proposed to purchase all remaining Atlas - Arteria securities for A$4.75 each. Diamond Infraco?1 stated that it currently holds 34.48% of Atlas Arteria Securities, and has limited capacity to acquire additional stakes without?making a buyout offer. The bidder stated that the offer price would be increased to a maximum of A$5.10 per security if Diamond’s relevant interest in Atlas Arteria Securities reaches 45% or more before the closing of the offer.
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Could Asia be the unexpected winner of the fallout after the Iran war? : Raychaudhuri
Asia is the most vulnerable area in the Iran War due to its heavy reliance upon Middle East oil and gas. But it could be the biggest winner as a result of several long-term tendencies this conflict will likely accelerate. These include higher cybersecurity investments, the pivoting away from fossil fuels, and supply chain diversification. Energy-intensive economies in the region, led by China and Japan, South Korea and India, are heavily dependent on Middle Eastern gas and oil. Around 80% of the oil and 90% of the gas that transits through 'the Strait of Hormuz is destined for Asian market. Energy prices in the region have risen sharply since'most vessels' were unable to transit through the Strait of Hormuz. China, with its huge stockpiles of food, has been relatively protected from shortages and rationing in other countries. Even though the crisis has exposed Asia's vulnerability to energy, it could also be speeding up structural changes that are in favour of the region on the long-term. BUILDING ASIAN ARSENAL The war is likely to increase the push for increased defense spending globally, as well as Asia’s drive towards greater self-sufficiency in defence. Asian contractors may have an edge over their Western counterparts due to the region's high-quality semiconductor and manufacturing supply chain. Hanwha Aerospace formerly LIG Nex1, LIG Defense & Aerospace and Hyundai Rotem are three Korean arms manufacturers that have attracted investor interest in the past year because of their high earnings growth expectations and large order backlogs. The growing penetration of European markets could further increase their market dominance. The Iran conflict as well as the Russia-Ukraine War have both highlighted the effectiveness and cost-effectiveness "new" weapons, particularly?drones. According to Technavio, the global military drones market is expected nearly double from $15.3 billion to $29 billion between 2030 and 2025. Technavio predicts a similar growth in the Asia military drone market. This is dominated by Chinese aerospace giants, who are state-backed. By leveraging their scale of production, cost-effectiveness and product range, the region's manufacturers can compete with U.S. and Israeli rivals. CHIPS, CYBER & AI Asia's cyber ambitions are at the center of a global race. They are fueled by rapid digitalization, government-led investments, massive hardware manufacturing capabilities, and artificial intelligence-powered defenses. According to the World Economic Forum (WEF) January survey, geopolitically motivated attacks on corporations are today's biggest risk. The WEF survey reveals that most companies believe AI will have the greatest impact on cybersecurity over the next year. AI appears to be doing exactly that. Anthropic's Mythos, a model?reportedly capable of identifying vulnerabilities in software at scale, illustrates the offensive potential as well as the defensive imperative. In order to remain one step ahead of the AI arms race, the U.S. and other countries may be compelled to increase their domestic manufacturing. The demand for Korean and Taiwanese semi-conductors is likely to continue indefinitely. The Energy Pivot The Iran War may have a positive impact on the energy sector, encouraging more countries to move away from fossil fuels and towards electric vehicles, energy storage, and green energy in general. China's dominance of the EV batteries market will make it a disproportionately large winner. SNE Research reports that Chinese manufacturers are responsible for more than 70% of global batteries installations. Korean companies account for roughly 15%. China dominates the intellectual property sector. According to the China National Intellectual Property Administration, Chinese companies held 18 of 20 top rankings for patents in power battery systems by 2023. China's technological expertise will be crucial for countries looking to develop their low-carbon energy capability. As a response to the Middle East's energy crisis, nuclear energy has also been brought back into the spotlight. This is especially true in Asia. South Korea considers expanding its nuclear capacity and Taiwan is contemplating restarting 2 nuclear reactors. Japan signed a $40 Billion reactor deal with America and a Nuclear Fuel Recycling Agreement with France. This will be a boon for Asia's nuclear power equipment manufacturers. Doosan Enerbility, China's Shanghai Electric and Dongfang Electric as well as India's Larsen and Toubro and Japan’s Mitsubishi Heavy Industries could all benefit. The current energy crisis has also highlighted the dangers of over-reliance upon a single chokepoint. Diversification is now a necessity, not just a goal. The Financial Times reports that there is renewed discussion about the India-Middle-East-Europe Economic Corridor. This project, which has U.S. backing, will link India with Europe by rail and shipping. This buildout could benefit several Asian companies that have a long history and expertise in the Middle East, including Larsen and Toubro of India, PetroChina and Abu Dhabi's NMDC. Several hurdles remain. The Strait of Hormuz could remain closed for a long time, causing a shortage of industrial inputs and energy, which would severely impact Asia's manufacturing capabilities. Reshoring by the West, even if it is gradual, can also reduce Asia's gains. Increasing capital costs - driven by inflationary expectations - could delay both green energy and defense projects. The Middle East conflict may end at some point but its impact on the global policy direction is not likely to. The views expressed are those of Manishi Raymondchaudhuri. He is the founder and CEO Emmer Capital Partners Ltd. and former head of Asia-Pacific Equity Research for BNP Paribas. This column is interesting to you? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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The death toll from the Colombia highway attack has risen to 19.
Authorities reported that the death toll of an explosives attack on a highway in southwest Colombia jumped to 19 on Sunday. The 'government' blamed the bombing on a dissident FARC faction. The explosion on the Pan-American Highway, in the Cajibio Municipality, also injured 38 people including?five children, and destroyed dozens vehicles on the 'road connecting Popayan to Cali. Why it Matters * The attack came just before the presidential elections and was?the most deadly in recent weeks. Military and police officials said that rebels detonated an explosive device placed?on a highway, creating a crater. * Defense Minister Pedro Sanchez has blamed Estado mayor Central, a FARC faction of dissidents that rejected the 2016 peace agreement. Between Friday and Saturday, 26 attacks took place in the Cauca and Valle regions, including two car-bomb?attacks against military installations in Cali, Palmira, and Palmira. * 'Cauca' is a strategic region in terms of cocaine production, trafficking and illegal gold mining. Both are key sources of funding for armed groups. * Former rebel President Gustavo Petro - whose tenure as president is nearing its end - has pursued a policy of "total peace" with the guerrillas, through negotiations and occasional ceasefires. (Reporting and editing by Luis Jaime Acosta)
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Source: Six Swiss International passengers injured in India after flight aborts.
Six passengers were injured in an emergency evacuation after a Swiss International flight from Delhi to Zurich was forced to abort early on Sunday morning. The Economic Times reported that one of the aircraft engines 'failed and caught fire as it was accelerating to take off, prompting crew members to stop the flight and initiate an emergency evacuation. The source said that the injured passengers had been taken to hospital. She was not authorized to speak with media and refused to identify herself. Flightradar24 reports that the aircraft involved was an Airbus A330. Delhi's Indira Ghandi International Airport?said on X earlier that it had declared a state of emergency following the occurrence on flight LX147. The?source said that runway operations have resumed at the airport and that all flights are on time. Delhi Airport, India's busiest airport, has four runways. Swiss International didn't immediately reply to an email seeking a comment. (Reporting from Akanksha Khushi in Bengaluru; Neha Arora, Abhijith Gaapavaram and Christian Schmollinger in New Delhi. Editing by Christian Schmollinger & Edwina Gibbs.
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Local official: Ukrainian drone strikes apartment building in Russian Yekaterinburg
The regional governor announced on Saturday that a Ukrainian drone had struck a multi-storey apartment building in Russia's fourth largest city, Yekaterinburg. This was the first attack in the city since the start of the Russia-Ukraine war. Denis Pasler wrote in the Telegram app that there were no deaths, but minor injuries had been reported and one woman was admitted to hospital. He said that residents of the building were evacuated. "All emergency services work quickly." A video posted on X, a social media site, and confirmed by showed smoke pouring from the top of a high-rise modern building. The building's facade was blackened heavily and several windows were blown. Ukraine has not yet commented. The Yekaterinburg drone incident came after an overnight Russian attack on Ukraine that killed seven people and injured dozens. The city of Yekaterinburg has 1.5 million inhabitants and is situated in the Ural Mountains,?in Sverdlovsk, a region that is home to many defence-related factories. It is located 1,900 km away from Kyiv, the Ukrainian capital. During the Ukraine Conflict, which began in 2022?, Russia bombarded Ukrainian target with artillery and drones. Ukraine?struck deeply inside Russia? with sabotage group and drones. They killed Russian generals while attacking oil refineries, oil pipelines, and oil refineries.
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Source: US considering using Defense Production Act for Spirit Airlines restructuring
Sources say that the administration of U.S. president Donald Trump is looking at using the Defense Production Act as a legal basis to bailout Spirit Airlines. CBS News reported the potential plan for the first time on Friday, citing U.S. officials who were familiar with the discussions. Sources said that the U.S. Government could use Title 3 of the Defense Production Act to invest in industrial capacities to ensure supply chains to support national defense. Kush Desai, White House spokesperson, said that the Trump administration is "continuing to explore possible options" in order to keep the airline?in operation' for both its employees and passengers. He said that reporting on the'mechanism or the structure of financing should be considered as speculation. Defense Production Act (DPA) is a?emergency authority which allows the U.S. Government to force private companies to prioritise federal contracts and increase output of critical goods. The Defense Production Act?allows loans to private companies for national defense purposes. This measure could offer support to the airline. Trump said that his administration is looking to buy the airline at "the right price" on Thursday. He told reporters in the White House that if the price of crude oil drops, he would be able to sell it at a profit. Budget carrier Spirit, based in Florida, is running out of time. Spirit's lawyer said that the budget carrier needs to access its cash or obtain new financing by the end next week. A court hearing has been scheduled for?next Monday as the lawyers of the company and creditors try to reach an agreement on a bankruptcy exit plan. Spirit's outside lawyer said that the Trump administration had made a financial offer to help it exit bankruptcy. This was being reviewed by major creditors. Spirit creditors' lawyer said they reviewed the terms of the government's offer on Thursday. Sources say that the offer includes $500 million of?financing, and a condition for the government to receive warrants equivalent to 90% of Spirit equity. Spirit would be able to exit bankruptcy with the senior debtor in possession financing. This is its second restructuring since 2025. (Reporting and editing by Bhargav Aharya, Chris Reese and Bhargav Shepardson; Kanishka Singh, Christian Martinez and David Shepardson)
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Lavrov, the Russian Foreign Minister, says that US is ignoring international conventions and pursuing its own interest
In an interview broadcast Friday, Russian Foreign Minister Sergei Lavrov said that the United States had abandoned internationally recognised "diplomatic conventions" in pursuit of their own interests, particularly dominating the energy markets. Lavrov said, when he was interviewed by the Russian state television, that Washington's "dealings" with Latin America and Middle East were "returning us to a time where there was no international law." In an interview posted on the Foreign Ministry website, he stated that "the United States has declared that no one is allowed to dictate to them." It only cares about its own wellbeing and is prepared to defend that well-being through any means, including coups, kidnappings, or assassinations against leaders of countries who possess the?natural resources? needed by Americans. "Venezuela and Iran, our American friends do not conceal that it is all about oil." They have "a doctrine of dominance on global energy markets." Lavrov made reference to the 'capture of Venezuelan president Nicolas Maduro' in a U.S. military action in January and the death of Iranian Supreme leader Ayatollah Ayatollah Khamenei by joint U.S. - Israeli airstrikes towards the end of the month. Lavrov claimed that the United States had "cut off' Europe. He urged European states to abandon Nord Stream, a pipeline which carries Russian gas from Russia to Germany. This is not a way to approach international relations. Lavrov denounced 'European policy' as being driven by 'arrogance and disrespect for others. He said that the United States, in seeking to settle the four-year conflict in Ukraine, was also promoting "huge economic opportunities." "At the exact same time, all that I have just described happens in parallel. He said that we are being forced out of all global energy markets. If we are willing to do projects that will benefit both us and the Americans, then it is important that our interests are respected. We have not seen this yet. Rod Nickel, Editor of the Reporting (by Rod Nickel)
WSJ reports that budget airlines are urging the US government to help with a $2.5 billion plan for relief.
The Wall Street Journal reported that a group of U.S. low-cost airlines, including Frontier Airlines and Avelo Airlines, are seeking government assistance worth $2.5 billion to exchange warrants for equity stakes in the companies.
Reports say that the chief executives of low-cost carriers met with Transportation Secretary Sean Duffy, and Federal Aviation Administration Chief Bryan Bedford in Washington on Tuesday. Discussions regarding a possible aid package will continue in coming days.
According to a WSJ report, the budget airline group calculated that they would spend $2.5 billion more on jet fuel this year than they had forecasted earlier, assuming average jet fuel prices remained above $4 per gallon.
Could not verify the report immediately. White House, Frontier and Avelo didn't respond to our request for comments. The pitch highlights one of Washington's unintended consequences: an increase in jet fuel costs that have roughly doubled, squeezed margins, and pushed weaker airlines to the edge. Budget?airlines are requesting the government to provide up to $500 million to save low-cost carrier Spirit Airlines.
The U.S. Treasury was given warrants on major airlines in exchange for $54 billion of aid. It only made $556.7 from the sale of these warrants, and many were of little value. (Reporting and editing by Sumana Aich and Rashmi Nandy in Bengaluru)
(source: Reuters)