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North America
CNBC Economy

Bessent says Treasury buyback operation could be more than $4 billion

Treasury Secretary Scott Bessent told CNBC on Thursday that an accelerated buyback of government debt could be higher than the announced $4 billion. In a live interview, Bessent said his department is going "make a market" in the longer-dated securities where yields have been surging lately. Treasury announced Wednesday that it would be doubling its scheduled $2 billion in buybacks of longer-dated government debt, sending yields sharply lower. "We're going to increase the size of the buyback," he said. "I would note that it could be more than the 4 billion per issue." The remarks caused a brief easing in yields, which had largely reversed the decline following Wednesday's announcement. The 30-year bond most recently was trading around 5.235%. The so-called long bond recently had been trading at levels not seen since prior to the global financial crisis in 2008. The benchmark 10-year yield also briefly pulled back as Bessent spoke but then headed higher, most recently up about 5 basis points to 4.704%. One basis points equals 0.01%. The Treasury chief noted that the level of yields did not factor into the buybacks decision and he wants to see fundamentals control the market. While he said the buybacks could grow, Bessent declined to attach a figure, saying it will depend on market conditions. "We'll see what the conditions are, and you know we will analyze them," he said. "All we're trying to do is get people to focus on the fundamentals and not trade the headlines during a quiet period in a thin market." Bessent acknowledged the pressure at the farther reaches of the curve, saying that the current trading levels didn't reflect current economic conditions. "We have a big toolkit, so we'll see," he said. "Part of it is signaling here and to show that we believe that the yields don't reflect the underlying fundamentals." He also characterized liquidity for the 30-year bond as "very poor," providing another incentive for Treasury to intervene in what normally is a robust market. Multiple factors have combined to push yields higher: Surging debt and deficits in the U.S.; competition from other areas including corporate debt issuance related to artificial intelligence and higher yields from other sovereigns such as Japan, and escalating term premiums, or the extra yield investors demand to hold government debt.

Bessent says Treasury buyback operation could be more than $4 billion
Asia
The Hindu BusinessLine

Hindustan Zinc bags mining lease for rare earth element block in Karnataka

Hindustan Zinc has bagged a mining lease for the 314.21-hectare Gundlupet rare earth element and Yttrium block in Karnataka. | Photo Credit: cueapi Vedanta group firm Hindustan Zinc Ltd (HZL) on Thursday said it has bagged a mining lease for a rare earth element block in Karnataka. The Gundlupet rare earth element (REE) and Yttrium block extends over an area of 314.21 hectares in Chamrajnagar District, Karnataka. “Government of Karnataka has issued a Letter of Intent (LoI), pursuant to Rule 10(2) of the Mineral Auction Rules 2015, in favour of Hindustan Zinc Ltd, the preferred bidder for grant of a mining lease for the Gundlupet REE and Yttrium Block over an extent of 314.21 Hectares situated in Mallayanapur village, Gundlupet Taluka, Chamrajnagar District, Karnataka,” the company said in a stock exchange filing. Rare earth elements are essential to modern technology. From smartphones and electric vehicles to wind turbines, defence systems and advanced electronics, these minerals are the backbone of both civilian and military-industrial capabilities. Hindustan Zinc Chairperson Priya Agarwal Hebbar had earlier said that it is actively exploring opportunities in rare earth elements and seeking global partners for AI- and drone-based exploration of critical minerals. Addressing the shareholders during the 59th Annual General Meeting, Hebbar had said, “Further, we are actively pursuing exploration opportunities in copper, lithium, nickel, cobalt, potash, and rare earth elements, while also looking at neodymium from monazite, antimony, graphite and germanium.” According to Hebbar, the company has evolved from being the country’s largest zinc and silver producer to become a multi-metal, future-enabling enterprise. Last year, the company had bagged a potash block in Rajasthan. The company has also received a letter of intent from the Government of Uttar Pradesh for a Rare Earth Elements block. Hindustan Zinc, the world’s largest integrated zinc producer, is among the top 10 silver producers globally. The company supplies to more than 40 countries and holds a 74 per cent market share in the primary zinc market in India. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Hindustan Zinc bags mining lease for rare earth element block in Karnataka
North America
CNBC Finance

Wells Fargo and Citigroup have room to buy a big bank. These 5 regionals fit the bill

Walk the halls of any major banking conference or listen in on a quarterly earnings call, and one topic keeps coming up: With the window for mergers wide open under the Trump administration, who will take a swing? After years on the sidelines because of regulatory restrictions, large banks can once again contemplate buying other lenders, even a $100 billion-plus-asset regional bank. While JPMorgan Chase and Bank of America are barred from such a deal because they already have more than 10% of national deposits, there are two megabanks that could pursue a large acquisition: Citigroup and Wells Fargo. The nation's third- and fourth-largest banks have enough room under the national deposits cap to pursue a hefty regional bank, according to investment bankers, consultants and investors. "Two years ago, it was impossible for a bank of that size to get approval to acquire almost anything," said Brian Graham, co-founder of advisory firm Klaros. "Now, it's possible they can get a deal done. I'd be shocked if they aren't exploring it." After spending much of the last decade in a penalty box — Citigroup via consent orders and Wells Fargo capped by growth restrictions — both institutions have cleared key regulatory hurdles and are in growth mode. A large acquisition — like the ones that rival JPMorgan pulled off during the crises of 2023 and 2008 — would give Wells Fargo or Citigroup thousands of branches and billions of dollars in deposits. For Citigroup, which has only about 650 U.S. branches, it would offer a much-needed source of cheaper funding. For Wells Fargo, which already has a large branch network, such a transaction would add more scale and cost-cutting opportunities. "There's a massive race for scale, and the shot clock is running," KBW analyst Chris McGratty said about the broad need for industry consolidation. "If you want to do something, this is the time to do it." While there are over 4,200 banks in the U.S., only a handful would make sense as acquisition targets for Wells Fargo or Citigroup. A viable target needs to be large enough to move the needle, but small enough to keep the acquirer comfortably beneath the 10% national deposit cap. On top of that, a complementary branch network, good cultural fit and quality deposits are must-haves, making most deals hard to justify. Run screens on those criteria, and five regional banks emerge as strong contenders for either bank. Fifth Third delivers a commercial and retail engine across the Midwest and a fast-growing Southeastern footprint. Huntington provides a low-cost deposit base alongside a growing branch presence in high-growth markets in Texas and the Carolinas. Citizens offers dense retail and commercial coverage across affluent Mid-Atlantic and New England cities. KeyCorp brings a middle-market commercial business and branches stretching from the Great Lakes to the Pacific Northwest.

Wells Fargo and Citigroup have room to buy a big bank. These 5 regionals fit the bill
North America
CNBC Finance

After 10 years at United, CEO Scott Kirby is thinking big about the future of his airline from JFK to AI

"Everyone thinks I do, but no, I don't," said the United Airlines CEO, whom American Airlines fired 10 years ago, when he was president of that carrier. "I compete aggressively." United announced it had hired him as president on Aug. 29, 2016, a blink after American disclosed his departure. Now, Kirby is running the second-most profitable U.S. airline after Delta Air Lines. And his former employer, American, is a distant third of the big, more-than-century-old, U.S. carriers, though it's working to ramp up revenue through a host of upgrades, including bringing back seatback screens. Kirby floated the idea of megamergers with both Delta and American in the past year, combinations that would bring together some of the biggest airlines in the world. He's so far been rebuffed, and antitrust experts were skeptical about the possibility. He's thinking bigger than he has before as the industry faces ever-higher costs, limited airport infrastructure and a population that's ready to shell out more to fly — often in the expensive seats — to the next "it" destination. CNBC rode with Kirby from the west side of Midtown Manhattan to United's hub at Newark Liberty International Airport in New Jersey earlier this month, where the 59-year-old executive outlined his vision for the carrier before his flight. Kirby said he wants to expand United's footprint at New York's John F. Kennedy International Airport after his airline returns to the congested airport through a partnership with American's former partner, JetBlue Airways, as early as next year. "We got a bunch of irons in the fire to try to find ways to do it," he said, adding that United could at some point acquire slots from carriers that aren't flying profitable routes out of the airport. And while United already holds the crown among U.S. airlines for international flights, which are in high demand among U.S. tourists, he wants to expand the carrier's footprint abroad even more. This week, United is set to announce a host of new international routes, the carrier's annual splash that has previously included new dots on the map like Ulaanbaatar, Mongolia and Bilbao, Spain. United has been touting its international expansion for years, saying its vast network acts as a driver for customer loyalty and sign-ups for lucrative travel rewards credit cards. Its route announcements typically come with much fanfare. Kirby, a three-decade airline executive, is the United States' most outspoken airline CEO. His team knows this, and they've stopped telling him well in advance what will be on tap for the next batch of Instagram-friendly routes. "They no longer tell me in advance because they're afraid I'll spill the beans, which is fair," he said. While Delta has still had a lead on profits, CEO Ed Bastian doesn't want to give up ground to United. It is starting to expand flights over the Pacific, a United stronghold.

After 10 years at United, CEO Scott Kirby is thinking big about the future of his airline from JFK to AI
Asia
The Hindu BusinessLine

Auto sector must prepare for end of EV subsidies, Heavy Industries Secy

Government subsidies for electric vehicles will end in the coming years, while the automobile industry needs to strengthen charging infrastructure and increase investment in R&D, a top official said. Government subsidies for electric vehicles will end in the coming years, and companies need to be prepared for the challenge, a top official said on Thursday. The Indian automobile industry must collaborate to set up charging infrastructure to promote electrification on a larger scale, Kamran Rizvi, Secretary in the Heavy Industries Ministry, said while addressing the annual convention of the Society of Indian Automobile Manufacturers (SIAM) here. He also asked automobile and component makers to spend more on R&D, stressing the need to carry out research and development at a much larger scale. While India has become a champion in electric mobility with the support of the government led by Prime Minister Narendra Modi, he said, “I can lay out some key challenges, which will happen in the next four or five years. The first thing that will happen is that subsidies and government support will come to an end, and in fact, they have come to an end in some sectors”. The electric three-wheeler segment in India currently accounts for 50 per cent of total sales in the segment, which is significantly higher than the target of 10 per cent by 2026, Rizvi pointed out. Two to three years later it could be 75 per cent, he said, adding that two-wheelers are not far behind as 7 per cent of all two-wheelers sold are electric. While cars have also done well at around 4-5 per cent of electric penetration, Rizvi said there is a great opportunity for electric buses, with demand outstripping supply by a huge margin. Drawing auto makers’ attention to charging infrastructure, he said, “SIAM members need to get the act together on electric charging that we have left this charging business to charging companies”. Stating that OEMs need to do more to get charging infrastructure ready across the country, he said, “We have identified 60 high-priority corridors which need to be electrified with certainty”. The ministry has approved Rs 2,000 crore that can be made available to OEMs, he said. “We should do it in the next two to three years so that all the important highways have been saturated.” Asking the auto industry to increase investment in R&D, Rizvi said, “Your balance sheets are very strong. You can afford to spend on research...” R&D would enable the industry to catch up with technology much faster as it would shorten the time for innovation, he said, adding that India needs to become inventors of technology.

Auto sector must prepare for end of EV subsidies, Heavy Industries Secy
Europe
BBC Business

How Dolly Parton's business savvy helped her succeed far beyond the charts

Image source, Getty ImagesByMitchell LabiakBusiness reporterPublished4 hours agoNot many musicians would snub a chance to work with Elvis Presley. But when Dolly Parton did so, it made her millions. In 1974, after writing and recording I Will Always Love You, Parton was asked if Presley could cover the song. She turned him down after his manager demanded half the rights. "Of course, I cried all night about that," she later said of the ordeal in an interview. But she wasn't crying in 1992 when Whitney Houston's power-ballad cover became a hit. Global sales of the song topped 20 million, earning Parton more than $10m in royalties, according to business magazine Forbes. This is the less well-known side of Parton. While country music and films brought her fame, her entrepreneurial zeal brought her fortune. The country icon signed deals, started companies, and invested in ideas that Forbes says built her a net worth of $450m by the time she died. Parton wasn't always wealthy. She grew up in poverty and in her 1971 hit Coat of Many Colours describes how she would wear rags which her "mama" had knitted together to school. In a 2017 BBC interview, she said her father gave her business lessons from early in her career. "My dad wasn't an educated man, he wasn't able to read and write, but my daddy had a great sense of business," she told the BBC's World Service in 2017. "So when I got into the music business, I thought of it as a business. And so I started early on keeping my own songs and my own publishing company." While her publishing company helped build her wealth, Parton had plenty of other business ideas. In 1985, she co-founded a film and TV production company called Sandollar Productions, which helped to make 90s cult thriller Buffy The Vampire Slayer.

How Dolly Parton's business savvy helped her succeed far beyond the charts
Europe
BBC Business

Nvidia revenue doubles on continued AI demand

Image source, Getty ImagesImage caption, Nvidia's business has grown significantly amid the AI boom. Chip giant Nvidia has reported another huge jump in sales as the global push to build artificial intelligence (AI) systems continues at a rapid pace. The company said on Wednesday that it brought in $96bn (£71bn) of revenue during the second quarter, more than double the amount for the same period a year earlier. And it expects revenue of $108bn in the next quarter. "AI has reached its inflection point," CEO Jensen Huang said in prepared remarks, describing the infrastructure buildout as going "at full steam." The revenue figures beat Wall Street's expectations, leading Nvidia shares to rise by 4.7% in after-hours trading. The company's data centre division alone generated $89bn in the period, up by 117% from a year earlier, underscoring just how much of the industry now depends on Nvidia's hardware. Essentially every notable tech company building AI tools and infrastructure, including Amazon, Meta, Google, Microsoft, use Nvidia chips to do so. Matt Britzman, senior equity analyst at Hargreaves Lansdown, called it "another monster set of results," noting that revenue and earnings both topped forecasts. He said the guidance for next quarter "points to revenue comfortably above $110bn." It has become a backer to those that rely on its chips, providing some funding to the likes of OpenAI, Anthropic, and SpaceX to help continue the costly buildout of AI infrastructure. Its financial success and processors are now central the AI boom, powering the data centres used to train and run AI models. Demand for that computing muscle has helped transform Nvidia into the world's most valuable firm, with a market capitalisation of more than $5tn.

Nvidia revenue doubles on continued AI demand
Asia-Pacific
Channel NewsAsia

Malaysia PM Anwar unveils measures to tackle living costs, support local businesses

Malaysian Prime Minister Anwar Ibrahim has been under pressure to tackle higher living costs, even as the country's economy has outperformed most of its regional peers. People walk along a shopping street in Kuala Lumpur on May 28, 2025. (Photo: AFP/Jam Sta Rosa) KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim on Sunday (Aug 30) introduced measures to address rising living costs and support businesses, including restoring higher quotas for subsidised petrol and diesel purchases, as well as more funding for schools and small traders. The measures are expected to take effect on Sep 1, Anwar said in a televised address. Anwar has been under pressure to tackle higher living costs, even as Malaysia's economy has outperformed most of its regional peers. The country's gross domestic product grew 6 per cent in the second quarter this year, surpassing official projections. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Anwar said the government would restore a quota for Malaysian citizens to buy the popular RON95 transport fuel to 300L per month, after reducing it to 200L a month earlier this year amid a surge in global crude oil prices due to the US-Israeli war on Iran. The quota for diesel purchases for certain categories of users would be similarly raised to 400L per month, he said. Anwar said a government artificial intelligence program would be opened to Malaysians aged between 18 and 30 years that would include free access to several key applications including Google's Gemini Enterprise and Wonderclip and MuleRun by China's Alibaba Cloud. He also unveiled increased funding for maintaining schools, improving digital health systems and micro-financing facilities for small businesses. He said the government would raise the revenue threshold exempting companies from implementing e-invoicing to RM3 million a year. Any funds seized or forfeited from anti-corruption legal proceedings would be channelled to government programs, particularly in education and healthcare, he added. Anwar's coalition has faced declining support over what critics have described as a failure to deliver on promised reforms and the mishandling of several high-profile corruption cases. The coalition has been defeated in three successive regional elections in recent months. The state elections are widely seen as an indicator of voter sentiment ahead of a general election that must be held by early 2028. Anwar has said he may call for snap polls if divisions within his administration continue to widen.

Malaysia PM Anwar unveils measures to tackle living costs, support local businesses
North America
CNBC Finance

Walmart hikes full-year outlook, says it will use huge tariff refund to keep prices low

Walmart on Thursday posted quarterly sales that beat Wall Street estimates and raised its outlook for the year, as it saw another strong quarter of e-commerce growth and benefited from tariff refunds. "Our business is strong," CFO John David Rainey told CNBC. "We feel really good about the progress we're making." The retailer said revenue rose 5.9% in its fiscal second quarter as e-commerce sales jumped 23% globally. Walmart also said U.S. comparable sales grew 2.6%, offset in part by a 0.8% headwind in its health and wellness business as price caps on certain drugs took effect. That was less than the 3.5% increase Wall Street expected, according to FactSet. For the third quarter, Walmart said it expects net sales to increase between 3% and 3.75% and adjusted earnings per share to be between 62 cents and 64 cents. The retailer expects net sales to increase 4% and 5% for the year, compared to a previous outlook of between 3.5% and 4.5% growth. Walmart also anticipates adjusted earnings will be between $2.80 and $2.87 per share, compared to the prior guidance of between $2.75 and $2.85 per share. Rainey told CNBC the company was eligible to receive roughly $2.9 billion in tariff refunds, and it has not yet gotten back less than $100 million of that total. Rainey said the company plans to use those funds to lower prices for consumers, and that impact will be seen in the third quarter. He added that Walmart also expects to incur just over $2 billion of "incremental cost headwinds related to higher fuel prices this year." Walmart's efforts to lower prices come as many shoppers have cut back on spending as they feel a strain from high fuel and food costs. The company is typically well positioned to weather pullbacks due to its value reputation and its scale as the largest U.S. retailer. Rainey said Walmart continues to see consumers stretched thin, especially with higher gas prices. It's lowering prices across categories, including beef, he added. "But consumers are still spending, and real wage growth is keeping pace, and so they've been very resilient in this environment," Rainey told CNBC. "But all that said, we would love to be able to bring prices down more and see less pressure on their wallets." For the three-month period ending July 31, Walmart reported net income of $6.37 billion, or 80 cents per share, compared to $7.03 billion, or 88 cents per share, in the year-ago period. Excluding the impact of a loss on investments and including a benefit from what it called a tax matter, Walmart reported adjusted earnings per share of 81 cents. The company's gross profit rate grew to 25.4%, boosted by the tariff refund benefit. Total revenue climbed to $187.94 billion from $177.40 billion in the prior-year period.

Walmart hikes full-year outlook, says it will use huge tariff refund to keep prices low