International News 13 March 2025
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Temasek takes stake in Haldiram, Indian snack maker
Singapore's Temasek has acquired a 10% stake in India's Haldiram snacks business for approximately $1 billion. This deal, which was signed after extensive negotiations, is seen as a strategic move by Temasek to expand its presence in the Indian consumer sector. Temasek has not made any official comments regarding the signing. Haldiram's, known for its restaurant operations, holds a significant share of India's savoury snacks market, estimated to be worth $6.2 billion. The acquisition of Haldiram's by Temasek reflects the attractiveness of the snacks business to foreign investors.
New US tariffs cast shadow on markets, copper prices rise, US aluminium jumps
Copper prices increased due to a weakened US dollar and a decrease in available stocks on the London Metal Exchange (LME). However, concerns regarding the US import tariff policy continued to impact the market. The three-month contract on the LME saw copper prices rise by 1.2% to reach US$9,641 per tonne. The metal had previously experienced a drop due to market sell-offs. The focus currently remains on the potential effects of import tariffs on copper and other metals, with concerns about the slowing global growth and persistent inflation. The upcoming US consumer price index data will be important in understanding the impact of tariffs. Market analysts suggest that the demand for copper and other industrial metals may weaken due to the slowing US growth and struggling Chinese economy, which is the largest consumer of metals.
Fitch Ratings Projects Indonesia's Debt Ratio to Rise to 40.4% of GDP in 2025
Fitch Ratings predicts that Indonesia's government debt ratio will reach 40.4% of GDP in 2025, an increase from the previous projection of 39.6% in January. This is also higher than the government's target of 39.15% for the same year. The increase in debt ratio is attributed to the need for a larger budget to support President Prabowo Subianto's government program, including increased social spending and infrastructure investment. Despite the increase, Indonesia's debt ratio is still considered relatively moderate compared to other countries in the BBB category. Fitch also projects the fiscal deficit to rise to 2.5% of GDP in 2025, up from 2.3% in 2024. The widening of the fiscal deficit is a result of the government's loss of additional revenue due to the cancellation of the planned VAT rate hike.