分类： business

India’s equity markets are expected to open with minimal changes on Friday, signaling a pause after three consecutive days of gains. The recent rally was fueled by U.S. policy easing and advancements in trade negotiations between New Delhi and Washington. As of 07:52 a.m. IST, Gift Nifty futures were trading at 25,466 points, suggesting the benchmark Nifty 50 (.NSEI) would open close to its 10-week high of 25,423.6 reached on Thursday. Over the past three sessions, the Nifty 50 index climbed 1.4%, while the BSE Sensex (.BSESN) surged 1.5%, driven by U.S. rate cuts and optimism surrounding India-U.S. trade talks. India’s chief economic advisor, V. Anantha Nageswaran, hinted on Thursday that the U.S. might soon eliminate punitive tariffs on Indian imports and reduce reciprocal tariffs to 10%-15% from the current 25%. Foreign portfolio investors (FPIs) also contributed to the market’s upward trajectory, purchasing shares worth 3.67 billion rupees ($41.6 million) on Thursday, marking their fifth buying session in the last eight. In corporate news, Adani group companies are in the spotlight after India’s market regulator dismissed allegations of stock manipulation by U.S. short-seller Hindenburg Research. Additionally, mining firm Vedanta (VDAN.NS) has been named the ‘preferred bidder’ for a manganese block in Andhra Pradesh.

In a revealing turn of events, internal documents from LG Energy Solution have shed light on the company’s strategies to circumvent U.S. visa restrictions, a practice that predates the recent immigration crackdown under the Trump administration. The South Korean battery giant has been advising its employees and subcontractors to utilize the Electronic System for Travel Authorization (ESTA) visa waiver program, bypassing the more stringent B-1 business visa application process, which has seen high rejection rates. This approach, detailed in August 2023 guidelines, was implemented to facilitate short-term assignments in the U.S., particularly for high-tech plant operations. However, the reliance on ESTA has come under scrutiny following the detention of over 300 Korean workers, including 250 LG employees and contractors, in what has been described as the largest immigration raid by the U.S. Department of Homeland Security. The incident, which occurred at LG’s car battery venture with Hyundai Motor near Savannah, Georgia, has sparked significant concern in South Korea, a key U.S. ally and investor. The Trump administration has indicated a willingness to revise visa policies to accommodate South Korean investment, but the widespread use of ESTA waivers highlights the challenges faced by South Korean companies in navigating U.S. immigration enforcement. LG has since updated its guidelines, recommending appropriate visas for longer assignments and advocating for clearer interpretations of visa regulations to ensure smoother business operations.

In a recent statement, Kevin Gallagher, CEO of Santos Ltd, expressed openness to potential takeover offers for the Australian gas producer. Gallagher emphasized his commitment to remaining in his role as long as he retains the confidence of shareholders and the board. This announcement follows the collapse of an $18.7 billion acquisition bid by a consortium led by Abu Dhabi National Oil Company (ADNOC) on Wednesday. The deal fell through due to disagreements over commercial terms, particularly concerning capital gains tax liabilities on Santos’ assets in Papua New Guinea, which were revealed to be imminent. A source close to the matter indicated that XRG, ADNOC’s overseas unit, hesitated to proceed under these financial conditions. The news highlights the ongoing strategic considerations within Santos as it navigates the complex energy market.

Zijin Gold International, a subsidiary of China’s Zijin Mining, is set to launch a landmark initial public offering (IPO) in Hong Kong, aiming to raise HK$24.98 billion ($3.21 billion). This marks the largest IPO in the city this year, according to the company’s prospectus released on Friday. The offering involves the sale of 349 million shares at HK$71.59 each, with trading scheduled to begin on September 29. The IPO will value Zijin Gold at $24.1 billion. The move comes amid a strong performance in the gold market, which has surged nearly 39% this year, benefiting from low-interest rates and global uncertainty. Zijin Gold’s IPO surpasses the recent $1.2 billion offering by Chinese automaker Chery, solidifying its position as the largest in Hong Kong for 2025. The company plans to use the proceeds over the next five years to upgrade and construct existing mines, enhancing its production capabilities. Cornerstone investors, including Singapore’s GIC and private equity firm Hillhouse, have already committed $1.6 billion to the offering. Asset managers BlackRock and Schroders are also participating, each purchasing $120 million worth of shares. Morgan Stanley and CITIC Securities are acting as joint sponsors for the IPO. The spin-off and independent listing of Zijin Gold International are expected to broaden the company’s financing channels and improve overall efficiency.

Japan’s core consumer price index (CPI) increased by 2.7% year-on-year in August, according to data released on Friday. This figure, which aligns with market forecasts, represents the slowest pace of growth in nine months, offering a slight reprieve to households grappling with rising living costs. The core CPI excludes volatile fresh food but includes fuel costs. Additionally, an index that strips away both fresh food and fuel costs, closely monitored by the Bank of Japan (BOJ) as a more accurate measure of underlying price trends, rose by 3.3% in August, slightly down from 3.4% in July. These data points will be critical for the BOJ as it concludes its two-day policy meeting on Friday, where it is widely anticipated to maintain interest rates at 0.5%. The BOJ, which ended a decade-long radical stimulus program last year and raised short-term interest rates in January, has been cautious about further rate hikes due to uncertainties surrounding the impact of U.S. tariffs on Japan’s economy. Despite consumer inflation exceeding the BOJ’s 2% target for over three years, Governor Kazuo Ueda has emphasized the need for prudence in monetary policy adjustments. The BOJ’s July forecasts suggest that price pressures from rising rice and import costs will ease, giving way to more sustainable price increases driven by robust consumption and wage growth.

FedEx Corporation (FDX.N) has demonstrated resilience in the face of shifting trade policies, reporting better-than-expected quarterly profits and revenue despite significant headwinds. The Memphis-based logistics giant saw its shares surge by 5.5% in extended trading on Thursday, defying Wall Street’s expectations of a decline. This performance was bolstered by robust domestic delivery growth and aggressive cost-cutting initiatives, which helped offset a 3% drop in international export volumes. The U.S. government’s decision to end the ‘de minimis’ exemption for low-value shipments from China and Hong Kong, effective May 2, 2024, has been a major challenge. This policy change alone reduced FedEx’s first-quarter revenue by $150 million, with similar impacts anticipated in subsequent quarters. Chief Customer Officer Brie Carere highlighted that trade policies, including the de minimis exemption’s termination, represent a $1 billion revenue ‘headwind’ for the fiscal year. Despite these pressures, FedEx achieved a 4% increase in overall average daily package volume, driven by a 5% rise in domestic deliveries. The company’s operating margin also improved to 6%, up from 5.2% in the previous quarter, reflecting the success of its $1 billion cost-saving plan. FedEx reported an adjusted profit of $912 million, or $3.83 per share, for the quarter ending August 31, surpassing analysts’ estimates of $3.59 per share. Quarterly revenue reached $22.24 billion, exceeding the projected $21.66 billion. Looking ahead, FedEx forecasts full-year adjusted earnings between $17.20 and $19.00 per share, slightly below the midpoint of analysts’ average estimate of $18.21. The company remains committed to its strategic initiatives, including $500 million in share repurchases and the planned spin-off of its freight segment by June 2026.

SoftBank Group Corp is undergoing a significant transformation as it reallocates resources to prioritize founder Masayoshi Son’s ambitious artificial intelligence (AI) initiatives. The company has announced plans to lay off nearly 20% of its Vision Fund team globally, marking the third round of layoffs since 2022. This strategic pivot comes despite the fund’s recent strong quarterly performance, driven by gains in public holdings such as Nvidia and Coupang. The Vision Fund currently employs over 300 people worldwide. The restructuring signals a departure from a diversified startup investment portfolio to a more concentrated focus on AI-driven ventures. Son’s strategy includes high-risk, high-reward investments in AI infrastructure, such as the proposed $500 billion Stargate project, which aims to establish a vast network of U.S. data centers in collaboration with OpenAI. A Vision Fund spokesperson confirmed the layoffs, emphasizing the organization’s commitment to bold, high-conviction investments in AI and breakthrough technologies. This shift represents a return to Son’s hallmark approach of making massive, concentrated bets, moving away from the sprawling venture capital model that characterized the Vision Fund’s earlier phase. SoftBank’s recent investments include a $9.7 billion stake in OpenAI through Vision Fund 2, which manages approximately $65.8 billion in total. Additionally, the company is focusing on building an AI ecosystem by acquiring chip firms like Graphcore and Ampere Computing and taking stakes in Intel and Nvidia. Despite the capital-intensive nature of this strategy, execution risks remain, as evidenced by delays in the Stargate project and a similar joint venture with OpenAI in Japan. SoftBank CFO Yoshimitsu Goto assured stakeholders that the company maintains a robust cash reserve of 4 trillion yen ($27 billion), underscoring its financial stability during this transition.

New Zealand’s Reserve Bank (RBNZ) is poised for a significant leadership transition as Finance Minister Nicola Willis prepares to announce a new governor in the coming weeks. This decision comes at a critical juncture for the central bank, which has been grappling with economic instability, reputational damage, and political scrutiny. Interim Governor Christian Hawkesby, who has expressed his desire to retain the position, has emphasized the bank’s commitment to stabilizing inflation and fostering a resilient financial system. However, the RBNZ faces mounting challenges, including a weak economy, high unemployment, and public dissatisfaction with its handling of inflation and interest rates. The departure of former Governor Adrian Orr and Chairman Neil Quigley has further exacerbated the bank’s struggles, leaving it in need of strong leadership to restore public trust and independence. Potential candidates for the role include John McDermott, former RBNZ chief economist, and Dominick Stephens, Treasury’s chief economist, both of whom have declined to comment on their interest. The new governor will inherit the daunting task of navigating economic recovery while defending the bank’s autonomy from an increasingly vocal government. Experts suggest that an external candidate might be better positioned to implement necessary reforms and rebuild confidence in the institution.