Lingering uncertainty around Indonesia’s commodity export rules means traders are holding up some shipments just as radical changes come into effect, adding to strains on Southeast Asia’s largest economy. President Prabowo Subianto sowed confusion in one of the country’s largest sectors late last month with the surprise announcement that the country would take control of shipments of key raw mater...
Lingering uncertainty around Indonesia’s commodity export rules means traders are holding up some shipments just as radical changes come into effect, adding to strains on Southeast Asia’s largest economy. President Prabowo Subianto sowed confusion in one of the country’s largest sectors late last month with the surprise announcement that the country would take control of shipments of key raw materials, including coal and palm oil — a sweeping move for the world’s top exporter of both products. From Monday, exporters are required to report sales documents to the state firm that will have oversight. So far, that has involved ticking a declaration box in the trade ministry’s system confirming their willingness to submit the forms, according to industry sources, who requested anonymity as they were not authorized to speak to the media. But all those interviewed by Bloomberg were still seeking details on the wider policy, including the full slate of affected products — palm oil, for one, is exported in a wide variety of forms. “Details on the mechanism are still unclear and we haven’t received the regulation yet,” said Eddy Martono , chairman of the Indonesian Palm Oil Association , known as Gapki. Trade Minister Budi Santoso said shortly after the policy was announced that technical regulations would soon be issued , although detail has yet to be made public. Indonesia is facing severe investor pressure as questions have grown around governance and its economic outlook under Prabowo. The stock benchmark is close to a five-year low and its currency has tumbled, ranking as Asia’s worst performer this year. Newly formed state-owned company PT Danantara Sumberdaya Indonesia — which sits under sovereign wealth fund Danantara — will manage shipments of the key commodities, the government has said. As of Monday, coal, palm oil and ferroalloy producers are required to start submitting export documents to the firm, and it will start controlling specific export activities as soon...
Just last week, Anthropic announced that it had raised $65 billion in a Series H funding round that valued the company at $965 billion -- making it the world's most valuable start-up. Now, the company's recent confidential S-1 filing is perhaps the clearest signal yet that participants in the artificial intelligence (AI) gold rush are marching toward the public markets. SpaceX's initial public off...
Just last week, Anthropic announced that it had raised $65 billion in a Series H funding round that valued the company at $965 billion -- making it the world's most valuable start-up. Now, the company's recent confidential S-1 filing is perhaps the clearest signal yet that participants in the artificial intelligence (AI) gold rush are marching toward the public markets. SpaceX's initial public offering will take place later this month, and AI chipmaker Cerebras (NASDAQ: CBRS) listed a couple of weeks ago. With all of this action underway, smart investors need to weigh the extraordinary promises being made against the sobering lessons from how the hottest IPOs have performed in recent years. Image source: Getty Images. Continue reading
Stocks looked set to slide again on Thursday after chip maker Broadcom’s third-quarter revenue guidance failed to wow Wall Street, reigniting some worries about how fast AI demand will accelerate. Futures tracking the S&P 500 declined 0.3%, and contracts tied to the tech-heavy Nasdaq 100 fell 1.1%. Dow Jones Industrial Average futures bucked the trend by climbing 234 points, or 0.5%.
Stocks looked set to slide again on Thursday after chip maker Broadcom’s third-quarter revenue guidance failed to wow Wall Street, reigniting some worries about how fast AI demand will accelerate. Futures tracking the S&P 500 declined 0.3%, and contracts tied to the tech-heavy Nasdaq 100 fell 1.1%. Dow Jones Industrial Average futures bucked the trend by climbing 234 points, or 0.5%.
India’s government is weighing spending cuts across parts of the budget as higher oil prices inflate subsidy bills and threaten to derail its fiscal consolidation plans, according to officials familiar with the matter. The options have been reviewed in meetings with Finance Minister Nirmala Sitharaman over the past month, although no decision has yet been made, the officials said, asking not to be...
India’s government is weighing spending cuts across parts of the budget as higher oil prices inflate subsidy bills and threaten to derail its fiscal consolidation plans, according to officials familiar with the matter. The options have been reviewed in meetings with Finance Minister Nirmala Sitharaman over the past month, although no decision has yet been made, the officials said, asking not to be identified because the discussions are private. There’s little appetite to reduce the budget on capital expenditure or defense, they said. Officials are instead reviewing other areas where spending could be trimmed, such as allocations for water resources and loans to states. A spokesperson for India’s Finance Ministry didn’t respond to a request for comment. Prime Minister Narendra Modi ’s government is facing mounting economic challenges as the Middle East conflict drags on. Oil import bills have surged, the currency has plunged to a record low, and inflation threatens to exceed the central bank’s 4% target. Economists warn that elevated oil prices could jeopardize the government’s goal of narrowing the fiscal deficit to 4.3% of gross domestic product in the year ending March 2027, potentially resulting in the first fiscal slippage since the pandemic. Data last week showed the fiscal deficit nearly doubled from a year earlier to 3.6 trillion rupees ($37.8 billion) in April, the first month of the financial year, as spending far outpaced revenue receipts. A widening budget deficit would require the government to raise revenue elsewhere or borrow more. The government is wary of increasing borrowing beyond budgeted levels because additional debt issuance could push bond yields higher, officials familiar with the matter said. India has budgeted 1.71 trillion rupees for fertilizer subsidies this fiscal year, but officials estimate the bill could almost double if global energy prices remain elevated. At the same time, a smaller-than-expected dividend payout from the central ba...