Investors Seeking New EM Frontiers Switch Global Risks for Local
The rally in emerging-market local-currency bonds is getting more exotic, as investors seek to shield themselves from US-induced risks by venturing deeper into lesser-known frontier nations.
William Blair has bought bonds in Jamaican dollars, Dominican Republic peso, Pakistani rupee, and Zambian kwacha. Meanwhile, AXA Investment is holding securities in the Kazakh tenge, Ninety One is mulling Ugandan shilling notes, Pinebridge is evaluating Uzbekistani soum bonds, and BlackRock Inc. has added Serbian dinar debt to its portfolio.
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14 minutes ago
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Trump Pledge of Quick China Magnet Flows Has Yet to Materialize
(Bloomberg) -- Almost 10 days since President Donald Trump declared a 'done' trade deal with Beijing, US companies remain largely in the dark on when they'll receive crucial magnets from China — and whether Washington, in turn, will allow a host of other exports to resume. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown While there has been a trickle of required permits, many American firms that need Chinese minerals are still waiting on Beijing's approval for shipments, according to people familiar with the process. China's system is improving but remains cumbersome, they said, contrary to Trump's assurances rare earths would flow 'up front' after a June 11 accord struck in London. The delays are holding an array of American industries hostage to the rocky US-China relationship, as some firms wait for magnets and others face restrictions selling to China. That friction risks derailing a fragile tariff truce clinched by Washington and Beijing in Geneva last month, and triggering fresh rounds of retaliation. Interviews with multiple Western buyers, industry insiders and officials familiar with discussions revealed frustration over vague policies in both countries and lingering confusion about what level of magnet approvals from China would trigger Trump to abandon his tit-for-tat export curbs. 'Even if export approvals accelerate, there are so many unknowns about the licensing regime that it's impossible for companies to have a strong sense of certainty about future supply,' said Christopher Beddor, deputy China research director at Gavekal Research. 'At a minimum, they need to factor in a real possibility that talks could break down again, and exports will be halted.' In response to China's sluggishness on magnets, Trump last month restricted US firms from exporting chip software, jet engines and a key ingredient to make plastic to China until President Xi Jinping restores rare-earth exports. Companies subject to Washington's curbs have halted billions of dollars in planned shipments as they wait for players in unrelated sectors to secure permits from Beijing, which could take weeks or even months to process, given the current pace. Corporate chiefs affected by the export-control spat have sought clarity from the administration on its strategy, according to people familiar with the matter. The Commerce Department — which administers the rules — has offered few details, they added. Oil industry executives have tried to convince Trump officials that blocking exports of ethane — a gas used to make plastics — is contrary to US national security interests, according to people familiar with the deliberations. Business leaders have asked for export restrictions to be removed but that's been unsuccessful so far, the people said. Energy and chemical giant INEOS Group Holdings SA has one tanker full of ethane waiting to go, while Enterprise Products Partners has three to four cargo ships stuck in limbo, according to a person familiar with the matter. That's particularly galling because China has adequate ethane supplies in reserve and can switch to using naphtha from the Middle East and other regions for much of their production, the people said. Representatives from the companies did not respond to requests for comment. Industry figures have consistently told the Trump administration the ethane export restrictions are inflicting more pain on US interests than on China, according to the people. China's Ministry of Commerce, which administers export licenses, hasn't responded to Bloomberg's questions on how many for rare earths have been granted since the London talks. At a regular briefing in Beijing on Thursday, spokesperson He Yadong said Beijing was 'accelerating' its process and had given the go-ahead to a 'certain number of compliant applications.' Access to rare earths is an issue 'that is going to continue to metastasize until there is resolution,' said Adam Johnson, chief executive officer of Principal Mineral, which invests in US mineral supply chains for industrial defense. 'This is just a spigot that can be turned on and off by China.' China only agreed to grant licenses — if at all — for six months, before companies need to reapply for approvals. Firms doing business in the US and China could see recurring interruptions, unless the Commerce Ministry significantly increases its pace of process applications. Adding an extra layer of jeopardy for US companies, Chinese suppliers to America's military-industrial base are unlikely to get any magnet permits. After Trump imposed sky-high tariffs in April, Beijing put samarium — a metal essential for weapons such as guided missiles, smart bombs and fighter jets — on a dual-use list that specifically prohibits its shipment for military use. Denying such permits could cause ties to further spiral if Trump believes those actions violate the agreement, the terms of which were never publicized in writing by either side. That sticking point went unresolved during roughly 20 hours of negotiations last week in the UK capital, people familiar with the details said. Complicating the issue, companies often buy magnets from third-party suppliers, which serve both defense and auto firms, according to a person familiar with the matter. That creates a high burden to prove to Chinese authorities a shipment's final destination is a motor not a missile, the person added. Beijing still hasn't officially spelled out the deal's requirements, nor has Xi publicly signaled his endorsement of it — a step Trump said was necessary. 'The Geneva and London talks made solid progress towards negotiating an eventual comprehensive trade deal with China,' White House spokesman Kush Desai said. 'The administration continues to monitor China's compliance with the agreement reached at Geneva.' China's Commerce Ministry is working to facilitate more approvals even as it asks for reams of information on how the materials will be used, according to people familiar with the process. In some cases, companies have been asked to supply data including detailed product designs, one of the people said. Morris Hammer, who leads the US rare-earth magnet business for South Korean steelmaker Posco Holdings Inc., said Chinese officials have expedited shipments for some major US and European automakers since Trump announced the agreement. China's Advanced Technology & Materials said Wednesday it had obtained permits for some magnet orders, without specifying for which destinations. The company's customers include European aerospace giant Airbus SE, according to data compiled by Bloomberg. Around half of US suppliers to Toyota Motor Corp., for example, have had export licenses granted, the company said – but they're still waiting for those materials to actually be delivered. It's likely some of the delays are transport-related, one of the people said. Even with permits coming online, rare-earth materials are still scarce because overseas shipments were halted for two months starting in April, depleting inventories. Trump's agreement 'will allow for rare earths to flow out of the country for a short period of time, but it's not helping the auto industry because they're still talking shutdowns,' Hammer said. 'Nobody trusts that this thaw is going to last.' For many automakers, the situation remains unpredictable – forcing some to hunt for alternatives to Chinese supplies. Two days after Trump touted a finalized trade accord in London, Ford Motor Co. Chief Executive Officer Jim Farley described a 'day-to-day' dynamic around rare-earths licenses – which have already forced the company to temporarily shutter one plant. General Motors Co. has emphasized it's on firmer footing in the longer term, because it invested in domestic magnet making back in 2021. The automaker has an exclusive deal to get the products from MP Materials Corp. in Texas, with production starting later in the year. It has another deal with eVAC of Germany to get magnets from a South Carolina plant starting in 2026. In the meantime, GM and its suppliers have applied for permits to get magnets from China, a person familiar with the matter said. Scott Keogh, the CEO of Scout Motors — the upstart EV brand of Volkswagen AG — told Bloomberg Television his company is re—engineering brakes and drive units to reduce the need for rare earths. Scout is building a plant in South Carolina to make fully electric and hybrid SUVs as well as trucks starting in 2027. Until the rare-earth supply line is re-opened to Washington's satisfaction, Trump has indicated that the US is likely to keep in place its own export restrictions. Senior US officials have suggested the curbs are about building and using leverage, rather than their official justification: national security. Commerce Secretary Howard Lutnick said the measures were used to 'annoy' China into complying with a deal US negotiators thought they'd already reached. Restrictions on sales to China of electronic design automation software for chipmaking are emblematic of the standoff. Those EDA tools are used to design everything, from the highest-end processors for the likes of Nvidia Corp. and Apple Inc. to simple parts, such as power-regulation components. Fully limiting China's access to the best software, made by a trio of Western firms, has been a longtime priority in some Washington national security circles — and would build on years of US measures targeting China's semiconductor prowess. While some senior Trump officials specifically indicated the administration would relax some semiconductor-related curbs if Beijing relents on rare earths, EDA companies still lack details on when, and whether, their China access will be restored, said industry officials who requested anonymity to speak candidly. Even if that happens, there's worry that heightened geopolitical risks will push Chinese customers to hunt for other suppliers or further develop domestic capabilities. 'The risk is there for the London deal to fall apart,' said Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis. 'Because rare earths is a very granular issue and mistakes can be made.' --With assistance from Jennifer A. Dlouhy, David Welch, Lucille Liu, James Mayger, Jing Li, Joe Ryan and Nicholas Lua. 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Yahoo
22 minutes ago
- Yahoo
Gareth Bale linked to Plymouth Argyle takeover bid by US-based group
Behind the scenes talks are taking place between a US-based private equity group and Plymouth Argyle over a potential takeover of the Home Park club, The Telegraph has reported this afternoon. The Telegraph have also stated former Tottenham Hotspur, Real Madrid and Wales star Gareth Bale has been lined up to front the move, which also includes members of the American-based Storch family. Bale's former Real Madrid team-mate Luka Modric became an investor and owner of another EFL club, Swansea City, in April. Advertisement A story co-written by Tom Morgan and John Percy said: "Bale has no historic connections with Plymouth and his involvement as a co-owner had been unexpected. However, US groups have increasingly looked to partner with famous faces in recent years to add glamour to club purchases beneath England's top tier. READ MORE: Wrexham sign Plymouth Argyle striker Ryan Hardie on three-year contract READ MORE: Plymouth Argyle confirm Austria training camp as part of pre-season "Modric's arrival at Swansea came after the NFL great Tom Brady became a co-owner at Birmingham City. American golfers Jordan Spieth and Justin Thomas also bought shares in Leeds United prior to their return to the Premier League. Advertisement "Several sources close to talks confirm a US private equity group partnering with Bale is currently in talks over a bid for full control at Home Park." Plymouth Live has contacted Argyle this afternoon about The Telegraph's story but they have declined to comment. Argyle majority owner and chairman Simon Hallett has been seeking additional investment into the club for some time and one deal recently through. Hallett told Argyle supporters in a Chairman's Chat column on May 31: "As you know, we have been in talks with a prospective new investor in our club for over a year. Those talks led to an application for approval of that investment being lodged with the EFL in February. Advertisement "Unfortunately, negotiations have taken too long and the key information that both we and the EFL required to complete the deal has not been forthcoming. I no longer believe that news of the new investor is imminent. "As a result, existing shareholders (I, Argyle Green and the Holliday family) will provide the funds to ensure that we stay on course with our plans. "This means making funds available to ensure we have a competitive football budget to aim to return us to the Championship as soon as possible, as well as continued investment in Foulston Park. Our budget next season will be twice that we had the last time we were in League One. "These additional funds equate to the same level of financial support that was written into the investor plan for year one." Advertisement He continued: "I completely understand that this will be very frustrating for fans, as it is extremely frustrating for me and the rest of the Argyle board. I have said constantly that my resources can enable us to be a sustainable Championship club, but that if we wish to aspire beyond that we would need new investment. I can provide some of that new investment, with the Holliday family and Argyle Green's help, but not all. "While progress towards a transaction in its current form looks to have stalled, we will continue to explore alternative routes, including being open to revised terms with other investment groups. It is important that we get the right investor, not the quickest investor, and this may take some time. We are committed to this, but in the meantime, current shareholders can (and will) support the club through its next stage of development." Meanwhile, Sky Sports News reporter Anthony Joseph posted on X (Twitter) later this afternoon: "An American-backed consortium -fronted by former Real Madrid forward Gareth Bale - have held talks with Plymouth Argyle over a possible takeover. It's understood discussions have taken place between the consortium & #PAFC hierarchy, but have not gone any further at this stage." Advertisement Argyle chief executive officer Andrew Parkinson is set to meet the local media later this week at the introductory Press conference for new head coach Tom Cleverley. The topic of Bale's involvement in the reported takeover bid is sure to be asked about then. You can read more of our Argyle stories from Plymouth Live by clicking HERE
Yahoo
23 minutes ago
- Yahoo
Plymouth Argyle takeover report bid involves significant revelation
The headline-grabbing involvement of former Real Madrid star Gareth Bale as part of a takeover bid for Plymouth Argyle was always going to ensure the story attracted maximum attention far and wide. A quiet Monday afternoon in the middle of June, certainly when it came to all things Argyle, suddenly exploded into a social media frenzy after The Telegraph's Tom Morgan and John Percy first reported the details. Advertisement They stated Bale had been 'lined up to front a US-based private equity group's potential takeover', and that talks were taking place behind the scenes 'over a bid for full control at Home Park'. READ MORE: Plymouth Argyle captain Joe Edwards takes big step in coaching ambitions READ MORE: Ryan Hardie says Plymouth Argyle farewell after Wrexham transfer Subsequent reporting by other national media outlets suggested those discussions were at an early stage, while Argyle declined to comment on the story when contacted by Plymouth Live. Given even the possibility of 35-year-old Bale, one of the world's best players of his generation, becoming a co-owner of the Pilgrims it was no surprise that it prompted intense debate and speculation among the Green Army on social media. Advertisement Bale would certainly bring 'star' appeal if the takeover bid ever came to fruition, in the same way as it did for Swansea City in April when their new ownership group included Luka Modric, another Real Madrid icon. However, if you take Bale out of the equation for a moment, the wider point is the news could be of huge significance to the future of Argyle for years to come. What The Telegraph report made clear is that this takeover bid was for 'full control' not a minority ownership. Argyle chairman Simon Hallett has made it clear over recent years he was seeking extra investment into the club from other sources to help push the Pilgrims forward. Back in 2022, a US group of investors under the title Argyle Green bought a 20 per cent stake of the club for £4 million, but by the following July some of the leading figures, including director Michael Mincberg, had their shares bought back by Hallett. Advertisement Last December, at a Plymouth Argyle Cornish Supporters' Association event, Hallett revealed talks with a prospective new investor had been taking place since the end of the 2023/234 season and added he was 'on the verge of being able to come public with something'. That did not happen, though, and Hallett confirmed in a recent Chairman's Chat column on the official club website that it had fallen through. "Unfortunately, negotiations have taken too long and the key information that both we and the EFL required to complete the deal has not been forthcoming. I no longer believe that news of the new investor is imminent," he said. Now, less than three weeks later, takeover talk is on the agenda and it will be fascinating to see where it leads, if anywhere. It has certainly excited a lot of the fanbase based on their social media reactions. Hallett has been looking to find new investors while also wanting to retain a majority control of Argyle with the aim of making sure he is confident whoever comes after him will be fit and responsible custodians of the club. Advertisement It also perhaps explains why it has not been easy to reach a deal which would involve a substantial amount of money being put into Argyle by investors who would ultimately not have the final say on club issues. This latest 'Bale-fronted' bid is different in that respect. It is out in the public that it is for 'full control' which could if it was eventually agreed to end the Argyle stewardship of Hallett, which first began in 2018 when he became the majority shareholder and chairman. Argyle have seen from their recent experience of struggle in the Championship over the last two seasons, which culminated in their relegation last term, that it will take considerable additional investment for them to try to be properly competitive at that level in the future. However, there are plenty of clubs who have been bought by new owners full of promises which have not been delivered and then been left in dire straits. Many Argyle supporters will still remember the club's time in administration in 2011 when it almost went out of existence, and also the long-lasting damage it caused. Advertisement So while excitement and intrigue about the latest takeover talk among the Green Army is entirely understandable, it is crucial that the best interests of Argyle are served by any deal which is struck, whether it involves star names or not. You can read more of our Argyle stories from Plymouth Live by clicking HERE
