International News 07 February 2025
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The planned merger of Japanese automotive giants Nissan and Honda is cancelled! Here's why
Merger talks between Japanese automakers Nissan and Honda have officially been halted after discussions reached an impasse. In December, the companies had agreed to explore creating the world's third-largest automaker through integration under a holding company. However, subsequent differences of opinion, particularly regarding Honda's proposal to make Nissan a subsidiary, ultimately led to Nissan withdrawing from the talks. This decision was conveyed to Honda by Nissan CEO Makoto Uchida during a meeting with Honda CEO Toshihiro Mibe. The official announcement of the withdrawal from the memorandum of understanding (MOU) is expected at Nissan's upcoming board of directors meeting. The objective of the talks was to enhance the companies' competitiveness in the highly competitive automotive industry.
Gold Prices Near Record Highs, Trade Concerns Boost Gold Demand
The price of gold has increased, approaching previous record highs, due to the escalating tensions in the China-US trade war, which has led to an increase in demand for safe haven assets. Spot gold prices stabilised at $2,870.16 per ounce, just below the all-time high of $2,882.16 reached in the previous session. Conversely, US gold futures experienced a slight decline, reaching $2,888.30. Analysts believe that investors are keen to seize this opportunity and are placing positions to take advantage of the positive results. The market is poised for further growth, with the potential to reach the $3,000 level. However, market consolidation may occur pending clarity on trade relations or an easing of trade tensions. China recently lodged a formal protest with the World Trade Organization against the new US tariffs on Chinese imports, further escalating the trade war.
China Delays 600,000 Tonnes of Wheat Imports, What Happened?
China has postponed the import of approximately 600,000 metric tonnes of Australian wheat, due to abundant domestic supplies reducing demand. This delay in wheat imports from the world's largest buyer may exert pressure on benchmark Chicago wheat prices. China, which accounted for 6% of global wheat imports in the year ending June 2024, has ample supplies following successful corn and wheat harvests. With prices declining, China aims to support local prices and has delayed the introduction of new wheat imports until at least April. It is reported that Chinese buyers are attempting to resell some of the shipments, including four carrying approximately 240,000 metric tonnes, in Southeast Asia.