Anglo American Sells Australian Coal Assets for $3.8bn
Anglo American has finalised a $3.8 billion deal with Peabody Energy, selling its steelmaking coal mines in Australia. This marks the first step in Anglo’s broader plan to divest four major business units. The company aims to focus on copper, premium iron ore, and crop nutrients, said CEO Duncan Wanblad. The restructuring follows a rejected £39 billion hostile takeover attempt by BHP earlier this year. This month, Anglo also sold another Australian coal asset in a $1.1 billion deal. These moves signify Anglo’s strategy to streamline operations and strengthen its presence in high-value commodities.
Chinese Markets Lag After US Treasury Nomination
Chinese and Hong Kong stock markets dipped on Monday, trailing other Asia-Pacific equities. The CSI 300 fell 1.1%, and the Hang Seng index dropped 0.4%, following US President-elect Trump’s nomination of Scott Bessent as Treasury Secretary. Bessent is seen as a pragmatic choice who advocates for gradual tariff implementation. Meanwhile, India’s Nifty 50 and Korea’s Kospi gained 1.5% and 1.3%, respectively. Currency markets reacted positively, with the pound and euro strengthening against the US dollar. Notably, shares in Taiwan Semiconductor Manufacturing Co declined after Nvidia’s slump last week.
Adani Group Confirms Liquidity Amid Debt Concerns
Adani Group announced it has sufficient cash to cover debt payments over the next year. The statement follows US legal charges against founder Gautam Adani. Adani also reported $10 billion in half-year earnings and is on track to reach $12 billion for the financial year. Despite this, shares of the group’s listed companies fell sharply last week. The company emphasised that its portfolio firms have ample liquidity to meet debt obligations, showcasing resilience in a challenging financial environment. This update aims to reassure investors amid the ongoing legal and market turbulence.
Global Currencies Rally Against US Dollar
Currencies strengthened against the US dollar after Scott Bessent was nominated as Treasury Secretary. Known for advocating gradual tariff policies, Bessent is viewed as a steady choice for overseeing US economic strategies. The yen gained 0.7%, reaching ¥153.7 per dollar, while the euro and pound rose by 0.6% and 0.5%, respectively. The US dollar index dropped 0.7%, and 10-year Treasury yields declined slightly. Analysts see this currency rally as a sign of optimism surrounding Bessent’s balanced approach, despite broader economic uncertainty linked to the incoming administration.
Asian Chipmakers Gain Despite Nvidia Decline
Asian chipmakers saw gains on Monday, bucking the trend of a 3% fall in Nvidia shares last week. Taiwan Semiconductor Manufacturing Company rose 0.5%, SK Hynix added 0.9%, and Samsung Electronics gained 2.5%. Korea’s Kospi index led regional gains, climbing 1.5%, with LG Energy Solution and Young Poong Group surging 4.8% and 12.8%, respectively. However, bitcoin and gold prices fell by 1.8% and 0.4%, while the US dollar weakened against major currencies. This highlights the tech sector’s resilience despite global market fluctuations.
Source: (FT.com)
