Latest news with #Fitch
Yahoo
17 minutes ago
- Business
- Yahoo
Trump's plan to hike steel tariffs to have 'minor' impact on India, says minister
By Neha Arora NEW DELHI (Reuters) -India estimates a "minor impact" from U.S. President Donald Trump's plan to increase tariffs on steel and aluminium products as the South Asian country exports low volumes to Washington, the federal steel minister said on Monday. Trump said last week he intends to increase tariffs on imported steel and aluminium to 50% from 25% currently, spurring declines on Monday in steelmakers' stocks in South Korea and Vietnam - major Asian exporters to the U.S. Roughly a quarter of all steel used in the U.S. is imported, the bulk of it from neighbours Mexico and Canada or close allies in Asia and Europe such as Japan, South Korea and Germany. India ranks much lower. "Minor impact will be there... We are not exporting (to the U.S.) in a big way," steel minister HD Kumaraswamy told reporters at a press briefing in New Delhi. However, ratings agency Fitch said in March that Indian steelmakers and steel prices could be hit if countries with higher exposure to the U.S. redirect their shipments to New Delhi in search of more lenient markets for the alloy.
The Hindu
an hour ago
- Business
- The Hindu
Trump's steel tariff plan to have 'minor' impact on India: Minister
India estimates a 'minor impact' from U.S. President Donald Trump's plan to increase tariffs on steel and aluminium products as the South Asian country exports low volumes to Washington, the Union Steel Minister said on Monday (June 2, 2025). Mr. Trump said last week he intends to increase tariffs on imported steel and aluminium to 50% from 25% currently, spurring declines on Monday in steelmakers' stocks in South Korea and Vietnam - major Asian exporters to the U.S. Roughly a quarter of all steel used in the U.S. is imported, the bulk of it from neighbours Mexico and Canada or close allies in Asia and Europe such as Japan, South Korea and Germany. India ranks much lower. 'Minor impact will be there... We are not exporting (to the U.S.) in a big way,' Steel Minister H.D. Kumaraswamy told reporters at a press briefing in New Delhi. However, ratings agency Fitch said in March that Indian steelmakers and steel prices could be hit if countries with higher exposure to the U.S. redirect their shipments to New Delhi in search of more lenient markets for the alloy.
Muscat Daily
18 hours ago
- Business
- Muscat Daily
GCC bank consolidation may accelerate amid lower oil prices
Muscat – Consolidation among GCC banks may gather pace if lower oil prices increase competitive pressure in the region, according to Fitch Ratings. Fitch said that persistently low oil prices and subdued global demand may place strain on the operating environments of GCC banks, potentially leading to weaker profitability and acting as a catalyst for mergers and acquisitions (M&A), as institutions look to diversify revenues and achieve greater scale. 'Smaller banks may become targets due to their weaker franchises, and often higher funding costs and thinner capital buffers,' Fitch stated in a note. The rating agency observed that most banking sectors in the GCC are 'overbanked'-characterised by a high number of banks relative to the population size, with over 150 institutions operating across the region, including 75 domestic commercial banks. 'Many GCC banks have shareholders in common, which could help to bring about M&A in some cases. However, many of the common shareholders are not sufficiently large to wield significant influence,' Fitch said. It said Bahrain appears to be the market most ripe for consolidation, according to the agency, as it is particularly overbanked and has generally weaker profitability and growth prospects in its banking sector. 'Oman and Kuwait are also overbanked, with modest banking sector profitability. However, consolidation pressures in Kuwait may ease if economic reforms result in stronger growth and improved profitability prospects, and Oman's banking sector could expand given its relatively low ratio of banking sector assets to GDP.' In the UAE, Fitch said that some smaller banks with weaker franchises and limited revenue generation may require strategic mergers to remain viable, particularly if profitability is squeezed over an extended period. Nevertheless, robust growth prospects may reduce the need for such action in the near term. Fitch believes consolidation is likely to be less pronounced in Qatar and Saudi Arabia. Qatar does have a large number of banks relative to its population, but strong profitability lessens the pressure to merge in order to diversify revenues. Saudi Arabia, meanwhile, is the only GCC country that does not appear overbanked, thanks to its significantly larger population, lower banking system assets-to-GDP ratio and solid growth outlook. Banking sector M&A in the GCC has primarily been driven by a desire to enhance shareholder value by strengthening market positions and achieving economies of scale. This trend has resulted in the formation of dominant players such as First Abu Dhabi Bank and Saudi National Bank, according to Fitch. 'We expect digital banking and new digital entrants to be an increasingly significant driver of consolidation in the region, with banks seeking technological partnerships to improve competitiveness. The expansion of open banking is also likely to influence M&A strategies, fostering joint ventures between tech companies, telecoms firms and banks,' Fitch added. The agency also noted that Islamic banks based in the GCC have become more active in M&A in a bid to strengthen their positions, as seen in Dubai Islamic Bank's acquisition of Noor. 'The UAE's ambitious domestic Islamic finance strategy may lead to further M&A involving Islamic banks. Emirates NBD and Abu Dhabi Commercial Bank have acquired domestic Islamic subsidiaries, which should support growth in financing and deposits. In Oman, banks such as Oman Arab Bank and Sohar International Bank have completed or are pursuing acquisitions of Islamic banks to cement their market presence,' Fitch said.
Business Recorder
2 days ago
- Business
- Business Recorder
CA balance incorporated: PKR kept artificially undervalued at 282.2 vs $1: Tola
LAHORE: The value of the rupee (PKR) is 249.2/USD after incorporating the Current Account balance of the Jul-April period of FY25, said Tola Associates in its latest economic outlook. The report has pointed out that the PKR value has been kept artificially undervalued at PKR 282.2/USD as the present value of PKR is 249.9/USD. Tola Associates have also drawn a graph depicting four scenarios: (a) First scenario provides PKR valuation as of June 30, 2024; (b) Second scenario illustrates the valuation of PKR valuation based on the actual CAD, ie, $665 million in FY24; (c) The third scenario provides PKR value based on the government's CAD projection of 0.9% of GDP; (d) and the last scenario is calculating the PKR value based on the adjusted CA projection of the government adjusted for the Jul-April FY25). Fitch forecasts Pakistan rupee at 285 against US dollar by June, 295 by FY26 end It further said that a 10-rupee depreciation results in a 2% increase in inflation, and vice versa. In the inter-bank market, the value of the national currency stands at PKR 282.2/USD as of 29th May 2025. Over the past week, the USD to PKR parity rate has shown a slight declining trend, whereby the PKR has devalued. It said the export-led growth has three vectors including the agricultural sector, the manufacturing sector and the IT industry. Along with this, public financial management has an important role to play which involves expenditure control and revenue enhancement. Pakistan's economic outlook reflects cautious optimism as inflation experienced a remarkable decline, dropping to 0.3% in Apri12025. Over the past year, inflation fell dramatically from 29.7% in November 2023 to 11.2% by May 2024 and reached just 0.7% in March 2025, a record drop within a single year. However, the inflation outlook remains vulnerable to several risks, including additional fiscal measures to address revenue shortfalls, a potential resurgence in food inflation, and rising global commodity prices. Despite these challenges and the anticipated phasing out of the favorable base effect, the Monetary Policy Committee assessed that the current monetary policy stance is appropriate for stabilizing inflation within the target range. Copyright Business Recorder, 2025
Reuters
3 days ago
- Business
- Reuters
Moody's maintains 'Ca' rating on Ukraine as effects of war continue
May 30 (Reuters) - Credit ratings agency Moody's affirmed Ukraine's 'Ca' rating on Friday, citing the long-lasting impact of the war with Russia on its economy and finances, as well as uncertainties over peace negotiations with Moscow. "Growth prospects remain subdued as challenging security conditions, labour shortages and attacks on energy infrastructure continue," Moody's said, maintaining its outlook for Ukraine at stable. The ratings agency on its website, opens new tab defines 'Ca' rating obligations as "highly speculative and are likely in, or very near, default, with some prospect of recovery in principal and interest". On Friday, Ukraine's finance ministry said it would not be paying more than half a billion dollars due to holders of its GDP warrants, marking the first payment default since it created the instruments. Kyiv also resisted U.S. and Russian pressure to commit to attending another round of peace talks on June 2, saying it first needed to see Russian proposals. Ukraine's economy cratered after Russia's full-scale invasion in 2022, falling close to 30%. Although it staged modest growth in 2023 and 2024, its gross domestic product (GDP) remains below the pre-war level as it extensively restructures its debt. Moody's forecast Ukraine's GDP growth to slow to 2.5% in 2025 from 2.9% in 2024, adding that it expects economic growth to remain "subdued" in 2026 and 2027. Rival ratings agency Fitch last week affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default", as the nation continues to navigate diplomatic tensions and a significant erosion of its finances.
