07/01/2026

BIZ & FINANCE WEDNESDAY | JAN 7, 2026

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BlueScope Steel evaluates A$13.2 billion takeover offer

Equities extend global rally amid optimistic outlook, oil dips HONG KONG: Asian markets rallied yesterday, tracking the year’s first record on Wall Street as investors racked up AI-linked tech bets, while oil prices steadied after whipsawing following the ouster of Venezuelan president Nicolas Maduro. Attention is also turning back to US monetary policy and the release of key data this week that could play a role in Federal Reserve interest rate decision-making ahead of its next meeting at the end of the month. Traders essentially ignored the noise of the surprise US raid on Caracas on Saturday that saw Maduro and his wife spirited away to New York to face drug charges. While there is still some nervousness about stretched valuations in the tech sector, analysts remain optimistic about the outlook for equities this year, with artificial intelligence still the main game in town. “Global equities are likely to keep looking through the geopolitical shock unless it threatens the broader supply chain or tightens financial conditions, because geopolitics has become a persistent feature rather than a surprise,” Charu Chanana, chief investment strategist at Saxo Markets, wrote in a commentary. “Equities can continue grinding higher if earnings expectations, liquidity, and rate expectations remain supportive, especially in tech.” That mood was reflected on Wall Street, where the Dow ended at a new record on Monday, boosted by a rally in tech giants including Amazon and Meta as well as energy giants. The S&P 500 and Nasdaq also rose, helped by data showing US manu facturing activity contracted for a 10th straight month in December, giving the Fed fresh room to cut rates. The figures come ahead of jobs data due over the next couple of days, which could give it more justification to ease. Yesterday, Hong Kong, Tokyo, Shanghai, Taipei, Singapore and Jakarta all piled on more than 1%, while there were also healthy gains in Manila and Wellington. Mumbai, Sydney and Bangkok fell. Seoul, which soared more than 3% on Monday, also rose more than 1% to top 4,500 points for the first time. South Korean car giant Hyundai jumped more than 4% having earlier added more than 8% – after it unveiled a prototype of its humanoid robot called Atlas at the Consumer Electronics Show in Las Vegas. The firm said the AI-powered device would start working at a US plant by 2028. Sydney also dipped despite Australia’s BlueScope Steel rocketing more than 20% after saying it is evaluating an A$13.2 billion joint takeover bid by a US rival and a diversified local firm. Oil prices slipped, having risen 1.7% on Monday as the impact of developments in Venezuela were being weighed. While the country sits on about a fifth of the world’s oil reserves, adding to an existing supply glut, observers pointed out that a quick ramp-up of output would be hamstrung by several issues including its creaking infrastructure, low prices and political uncertainty. – AFP

SYDNEY: Australia’s BlueScope Steel says it is evaluating a A$13.2 billion (RM36 billion) joint takeover bid by a US rival and a diversified local firm. BlueScope Steel, which has more than 16,500 employees worldwide, said it was the fourth attempt by US based Steel Dynamics to snap up its American steel-making operations. In the latest bid, Steel Dynamics has teamed up with Australian industry, energy and media company SGH to buy and split up the steelmaker, the companies said. Under the proposal, SGH would acquire all shares in Melbourne based BlueScope. SGH would then Italy, Pirelli explore new ways to end Sinochem role: FT report LONDON: Tyremaker Pirelli and Italy’s government are exploring new ways to end Chinese state owned Sinochem’s involvement in the Milan-based company amid US pressure, the Financial Times reported yesterday. Pirelli’s Italian investor Cam fina had earlier complained that Sinochem’s presence was hin dering the tyremaker’s expansion plans in the US, as Washington tightens restrictions on Chinese technology in the automotive sector. Sinochem is Pirelli’s largest investor with a stake of about 34.1%, according to LSEG data. Rome is now mulling a fresh intervention as Washington’s ban on Chinese-backed hardware and software that interact with US cars comes into effect in March, the report added, citing people familiar with the discussions. Reuters could not imme diately verify the FT report. Pirelli declined to comment on the matter. Sinochem and the Italian government did not respond to Reuters’ requests for comment. In recent months, US officials have pressured Italy to curb Sinochem’s influence, while Pirelli has offered several proposals to the Chinese shareholder, in cluding a stake sale, though Sinochem did not immediately engage, the report added. Sinochem last month ap pointed BNP Paribas as advisers to explore sale options, according to the FT report. Sources close to the matter told Reuters last year that Sinochem was open to bids for its Pirelli stake if the offer came with a premium. – Reuters

o SGH, Steel Dynamics propose A$30 per share cash, plan to split company’s Australian and US assets

end 21% higher at A$29.54 yesterday against a slightly weaker broader market, just below the A$30 indicated offer price, suggesting optimism a deal would materialise. SGH shares were up 5.4%. The offer was welcomed by analysts, some of whom said the price would have to be increased. “I see the SGH-led proposal as opportunistic but potentially value unlocking for shareholders, albeit highly conditional and execution heavy,” said Mark Gardner, CEO of MPC Markets, an investment firm. “For employees and suppliers, there’s inevitable uncertainty,” he added. – AFP, Reuters

Indiana-based Steel Dynamics has assets some 90km from BlueScope’s plant in Ohio. The deal would be “highly complementary to our existing operations and further expands our capabilities domestically”, said Steel Dynamics CEO and chair Mark Millett. Shares of BlueScope surged to

sell the North American operations to Steel Dynamics while retaining the rest of BlueScope’s global steel making business for itself. SGH and Steel Dynamics said they plan to break up the Australian steelmaker along geographic lines – SGH would take the Australian operations and Steel Dynamics would get the North American unit.

Intel launches Panther Lake, its next-generation AI chip for laptops PROTOTYPE EV ... Sony Honda Mobility CEO Yasuhide Mizuno speaking beside the Afeela Prototype 2026 at the CES trade show in Las Vegas on Monday. Mizuno said the company, an electric vehicle joint venture between Sony Group and Honda Motor, aims to deliver a new model based on the Afeela prototype to US customers as early as 2028. The company expects deliveries of the Afeela 1, the company’s first EV which was introduced last year, to customers in California to begin late this year. – REUTERSPIC

LAS VEGAS: Intel launched Panther Lake, its new artificial intelligence (AI) chip for laptops, on Monday at the CES trade show here, as the company seeks to reassure investors about the first product made using its next-generation manufacturing process called 18A. Jim Johnson, senior vice president and general manager of Intel’s PC group, offered technical details about the company’s first line of Panther Lake chips known as Intel Core Ultra Series 3. The chips feature a new transistor design and a way to deliver power to the chip due to the company’s 18A manufacturing process. At the event, Intel CEO Lip-Bu Tan said the company made good on its promise to ship its first products with the 18A manufacturing process

Johnson said. Handheld PCs designed by a range of suppliers have grown in popularity in recent years. Intel has struggled with the yield, or the number of good chips per silicon wafer, for the Panther Lake processors, Reuters reported last year. Intel executives have said its yields are improving monthly and will pave the way for the launch this year. The CEO of AI chip leader Nvidia, Jensen Huang, also spoke at CES on Monday. He said the company’s next generation of chips was in “full production”, and they could deliver five times the AI computing of the company’s previous chips when serving up chatbots and other AI apps. – Reuters

in 2025, referring to the Panther Lake chips. Intel’s prior-generation Lunar Lake chips were largely made by TSMC. The stakes for Intel are high – the company is making its first high volume product with 18A, and hopes to reclaim market share it has lost to Advanced Micro Devices .Johnson said the company has created a separate graphics chiplet – a mini chip stitched together with other mini-chips to form a complete processor. On Monday, Intel said the Intel Core Ultra Series 3 chips would deliver 60% better performance than the prior-generation Lunar Lake Series 2. Intel plans to launch a platform for handheld video games based on the Panther Lake designs this year,

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