29/05/2025

BIZ & FINANCE THURSDAY | MAY 29, 2025

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US will have golden share in Nippon Steel deal

Robinhood rolls out desktop trading in UK LONDON: US-based online brokerage Robinhood said yesterday it was expanding its desktop platform into the UK to extend its reach among retail investors looking for more sophisticated trading tools. The launch comes months after the company first unveiled the product for its US customers. Retail investors are increasingly viewing trading as an alternative career path to build wealth and strengthen their financial health, rather than just a hobby. To cater to their evolving needs, firms such as Robinhood are rolling out additional features typically reserved for more advanced traders. Desktop trading platforms allow users to tailor their workspace more effectively than mobile apps. Traders can monitor multiple charts simultaneously and execute trades faster. Robinhood’s desktop platform, called “Robinhood Legend”, was launched in the US in October. The company, which is aiming to become a broader part of its customers’ finances, also launched wealth management and private banking services in March. The expansion could help insulate the company from the cyclical nature of its core trading business. “Retail customers are a lot more engaged in the market, a lot more thoughtful about what they’re invested in, more interested in the news and movements and passionate about the names they hold,” Jordan Sinclair, head of Robinhood UK, said in an interview. Many of the traders have come to realise that trading offers a far more efficient path to achieving financial goals than simply parking money in low-interest accounts, he added. – Reuters Trump Media to raise US$2.5b for ‘bitcoin treasury’ WASHINGTON: US President Donald Trump’s social media company announced on Tuesday its plans to raise about US$2.5 billion (RM10.6 billion) with an eye to creating a “bitcoin treasury” and said cryptocurrency will be a key part of its assets. Trump Media & Technology Group, which operates the Truth Social site, said in a statement that it has entered into subscription deals with around 50 institutional investors. Under these agreements, the company agreed to issue and sell about US$1.5 billion in common stock and US$1 billion in convertible senior secured notes, in a private placement offering. The offering is anticipated to close on or about May 29, the company said. “We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” said Trump Media CEO Devin Nunes. He added that the investment will “help defend our Ccmpany against harassment and discrimination by financial institutions”. The firm also said it aims to expand its reach “throughout the America First economy”, adding that Crypto.com and Anchorage Digital will provide custody for its bitcoin treasury. Trump has vowed to make the United States the “crypto capital of the world”. Trump’s newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his eldest sons. – AFP

Japan’s top steelmaker has since December 2023 sought to seal a US$14.9 billion bid to acquire US Steel at US$55 a share. Three sources told Reuters that the price has not been changed. Both Trump and former president Joe Biden expressed opposition to the tie-up, arguing US Steel should remain American-owned as they sought to woo voters in Pennsylvania ahead of the November presidential election. Biden formally blocked it in January on national security grounds, prompting a lawsuit by the companies that alleged the review process had been unfair. The Biden White House disputed that view. Trump launched a fresh CFIUS review of the deal in April. On Friday he appeared to finally give it his blessing in a social media post, noting that the “planned partnership” would create “at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy”. The post sent US Steel’s share price up over 20%. But on Sunday, Trump cast doubt over that interpretation, noting in remarks to reporters that: “It’s an investment and it’s a partial ownership, but it will be controlled by the USA.”– Reuters

But the plan has not been finalised, said one of the sources, who declined to be identified as the matter is private. But on Tuesday, investors appeared confident the deal would soon close, with US Steel shares trading up 1.6% to US$52.84 a share, close to their highest point since the deal was announced. President Donald Trump was expected to address the deal in a rally at a US Steel plant in Pennsylvania this week. In response to questions about the deal, White House spokesperson Kush Desai said: “The president looks forward to returning to Pittsburgh ... on Friday to celebrate American Steel and American jobs.” Nippon Steel declined to comment and US Steel did not respond to a request for comment. In an NSA term sheet proposed to CFIUS in September 2024, Nippon Steel pledged that a majority of US Steel’s board members will be American, and that three of them – known as the “independent US directors” will be approved by CFIUS. “US Steel may reduce production capacity if and only if it is approved by a majority of the independent US directors,” the term sheet states, adding that core US managers will be US citizens.

WASHINGTON: The US government will have veto power over key decisions relating to US Steel , as part of a deal with Nippon Steel that would approve the Japanese firm’s bid for the well-known American steel company, a lawmaker said on Tuesday. The details are laid out in what is called a national security agreement (NSA) the companies will sign with the American government, said Republican Senator David McCormick of Pennsylvania, where US Steel is headquartered. “It’ll be a US CEO, a US majority board and then there will be a golden share, which will essentially require US government approval of a number of the board members, and that will allow the United States to ensure production levels aren’t cut and things like that,” he told CNBC in an interview after Nikkei reported that a golden share was under consideration. It was not immediately clear if McCormick was announcing a new part of the deal beyond prior pledges made by the firms to the Committee on Foreign Investment in the US, which reviews foreign investments for national security risks and has reviewed Nippon Steel’s bid for US Steel twice. Two sources familiar with the matter told Reuters that the idea of a golden share, which gives veto rights on key o Washington must okay US Steel output cut, some board members

company decisions, is among options that Nippon Steel is considering.

A US Steel-owned plant in Braddock, Pennsylvania. – REUTERSPIC

British grocery inflation hits highest level in 15 months, says Kantar LONDON: British grocery price inflation jumped to 4.1% for the four weeks to May 18, its highest level since February last year, adding to pressure on consumers already facing higher household bills, data from market researcher Kantar showed yesterday. The figure compared to grocery price inflation of 3.8% in Kantar’s report last month. Grocery sales in the period rose 4.4% year-on-year. “Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more,” said Fraser McKevitt, head of retail and consumer insight at Kantar. Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in dog food, cat food and household paper products. UK retailers have warned that employer tax rises imposed in the Labour government’s first budget, together with another rise in the national minimum wage and a new packaging levy, will be inflationary. Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5% this year. – Reuters