Industrial Metals Monthly: China Rally Cools As Markets Reassess Stimulus Bets

Economic

Commodity

Summary:

Our monthly report looks at the performance of iron ore, copper, aluminium, and other industrial metals. In this month’s edition, we take a closer look at China’s recent efforts to revive its economic growth and discuss whether it is enough to lift metals demand.

YTD metals performance %

Source: LME, SGX, ING Research

China stimulus sparks metals rally

Late last month, Beijing released a slew of stimulus measures, its largest stimulus package since the Covid-19 pandemic, including interest-rate cuts and targeted support for the property sector, which sparked a rally across industrial metals. Iron ore was the standout surging to a five-month high, while copper reached $10,000/t after Beijing vowed to reach the country’s annual economic goals. The bullish momentum continued over the past week with the metals industry gathering in London for LME Week while Chinese markets were closed for the Golden Week holiday.

Industrial metals rally on China stimulus boost

Source: LME, SGX, ING Research

But post-holiday China briefing disappoints

The rally has now cooled after China’s mainland markets reopened this week after the week-long holiday and the anticipated briefing by China’s top economic planner, the National Development and Reform Commission, mostly disappointed, failing to deliver new pledges to boost government spending.

China, the world’s biggest consumer of metals, has been a drag on metals demand for over two years. A broad economic slowdown and, in particular, the crisis in the property sector has weighed on copper and other industrial metals. We have seen plenty of property support measures this year but so far they have failed to have a meaningful impact on metals demand.

We think that the recent stimulus measures still lack detail, and we struggle to find an additional demand growth driver for industrial metals in the measures announced so far.

Any sustained pick up in metals prices will depend on the strength and the speed of the rollout of the measures. We will look out for any potential investment into new infrastructure projects and into energy transition sectors.

Our China economist believes that last month’s measures are a step in the right direction, especially as multiple measures have been announced together rather than spacing out individual piecemeal measures to a more limited effect. However, he continues to believe that there is still room for further easing in the months ahead, and if we see a large fiscal policy push as well, momentum could recover heading into the fourth quarter.

In terms of the property market, which is crucial for metals demand, our China economist believes two things need to happen. First, we need to see prices stabilise if not recover. Second, we need to see excess housing inventories come down towards historical norms. Until then, the drag on growth will continue.

We believe the continued weakness in the sector remains the main downside risk to our outlook for industrial metals. We believe that until the market sees signs of a sustainable recovery and economic growth in China, we will struggle to see a long-term move higher for industrial metals.

The question for the markets now is whether this is the long-awaited turning point for the world’s largest consumer of metals and whether we will see more supportive policies being rolled out that could have a significant impact on metals demand. We think it might be too soon to tell and we have not changed our forecasts yet.

China new home prices fell in August at the fastest pace since 2014

Source: National Bureau of Statistics, ING Research

Downside risks persist

Although the macro conditions are starting to look brighter, and the Federal Reserve’s long-awaited rate cut has calmed sentiment, uncertainty surrounding the US presidential election is dampening risk appetite.

With geopolitical tensions lingering, a still uncertain recovery path for China's economic recovery, despite the recent stimulus boost, and rising protectionism, we remain cautious in the short-term on the industrial metals outlook.

However, we are more constructive from late 4Q and early 2025. We believe more certainty on US-China policy following the US elections and improving manufacturing sentiment amid central bank easing cycles should provide upside to industrial metals prices in the medium- to long-term.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Cohen

Economic

According to the World Economic Forum, SEs generate a staggering US$2 trillion in revenue and are responsible for creating nearly 200 million jobs.

Even more striking is the fact that half of these enterprises are led by women, underscoring the pivotal role SEs play not only in driving economic growth but also in promoting gender equality and empowering communities across the world.

In Malaysia, the impact of social enterprises is equally vital, especially as we continue to rebuild and recover from the profound effects of the Covid-19 pandemic. The role of SEs in addressing socio-economic challenges has never been more urgent.

Malaysia has taken promising steps in this regard. Over the years, we’ve witnessed the growth of SEs supported by various corporate foundations and partnerships.

Organisations such as Shell Malaysia, Yayasan Hasanah, Yayasan Petronas, Yayasan Maybank and Yayasan Sime Darby, among others, have provided grants, capacity building programmes, and other crucial support to help SEs scale. These efforts have sought to complement government priorities by encouraging innovation and social impact, but much work remains to be done.

The number of social enterprises in Malaysia remains low compared to the sector’s potential. Despite this, we have shining examples like Sols Energy, PichaEats, Masala Wheels, Mereka and Epic Homes — enterprises that have not only demonstrated resilience but also made a tangible impact on the ground.

However, to realise the full potential of social entrepreneurship, there is a need for a more strategic and thoughtful approach to scale SEs across the country.

Efforts are not confined to the central region either. In East Malaysia, initiatives like the Sabah Creative Economy and Innovation Centre (Scenic) and Tabung Ekonomi Gagasan Anak Sarawak (Tegas) have emerged as key players in expanding the SE ecosystem, fostering innovation, and ensuring that the benefits of social entrepreneurship extend to all corners of the country. This is a crucial development—if social enterprises are to drive national transformation, they must be geographically inclusive, ensuring that both Peninsular and East Malaysia can benefit from the movement’s growth.

As Malaysia looks towards the future, Budget 2025 presents a critical opportunity for the government to solidify its commitment to fostering an inclusive and resilient social enterprise movement.

By creating a robust and enabling ecosystem, we can empower SEs to thrive, scale, and deliver sustained social and economic impact.

Policy and regulatory support

An enabling ecosystem begins with the right policies. While steps have been taken to offer accreditation and special financing, a more comprehensive regulatory framework is needed to guide the growth of SEs in Malaysia.

The government might consider establishing clear definitions, legal structures, and frameworks for SEs. This would not only enhance their credibility but also enable them to access resources more efficiently.

A legal definition is critical to ensure that support goes to businesses that are truly mission driven, with profits directed towards beneficiaries. Clear guidelines will not only help differentiate social enterprises from traditional businesses but also encourage and guide more businesses to adopt the SE model.

By providing a structured framework, businesses will be able to see the benefits of incorporating social and environmental missions into their operations, and be better equipped to align with the growing demand for purpose-driven enterprises.

Countries like the UK have led the way in this regard, creating a supportive legal environment for SEs to flourish. In the UK, social enterprises often operate under specific legal frameworks like Community Interest Companies (CICs), which ensure that they adhere to key principles. To qualify, these enterprises must generate at least 50% of their income from trading and reinvest at least 50% of any surplus (profit) back into the business or toward furthering their social or environmental mission.

This structure ensures that SEs remain focused on delivering long-term social impact rather than prioritising profit maximisation.

In Malaysia, social enterprises need similar recognition. By defining what constitutes a social enterprise in clear, legal terms, the government can create a stable foundation upon which SEs can grow.

Additionally, tax incentives for both social enterprises and investors in these businesses can spur greater investment into the sector, catalysing further growth.

Sustainable financing and investment opportunities

A key barrier to the growth of SEs is access to capital. While grants and special financing programmes from institutions like SME Bank and Yayasan Hasanah have been helpful, these efforts need to be scaled up and diversified. In addition to grants, SEs require sustainable financing mechanisms — impact investing, social bonds, and venture philanthropy are examples of innovative financing methods that have taken root globally.

Government-linked investment companies (GLICs) should be encouraged to support social enterprises through their corporate social responsibility (CSR) programmes or foundations, or by incorporating SEs into their investment portfolios.

By backing enterprises that prioritise both profit and purpose, GLICs can play a critical role in driving social and economic impact, fostering a more equitable and inclusive economy in Malaysia.

Human capital development

At the heart of any social enterprise is its people. For SEs to succeed, Malaysia needs to cultivate talents equipped with the skills and knowledge to navigate this complex, hybrid space that merges business acumen with social purpose. This requires a deliberate focus on education, training, and mentorship to empower individuals and ensure the growth and resilience of the sector.

The government, in collaboration with educational institutions and industry stakeholders, should develop targeted programs to build the capacity of future social entrepreneurs.

Offering scholarships, training, and mentorship opportunities specifically tailored for those interested in SEs will be essential in nurturing the next generation of leaders in this space.

Furthermore, partnerships between private sector corporations and social enterprises can provide SEs with the expertise, mentorship, and resources necessary to grow.

Programmes that facilitate secondments or skill-based volunteering can enable corporate employees to transfer their skills to SEs, creating a more dynamic exchange of knowledge and fostering innovation.

Market access and public procurement

Access to markets remains one of the biggest hurdles for social enterprises in the country. SEs are often smaller and have fewer resources, making it challenging to compete with larger, more established companies. The government can play a pivotal role in levelling the playing field by integrating SEs into public procurement processes.

By mandating that a certain percentage of government contracts be allocated to social enterprises, the government can provide SEs with a reliable stream of revenue and the opportunity to scale. This practice is already common in several European countries, where public procurement policies are used as a tool to promote social value creation.

For example, the UK's Public Services (Social Value) Act 2012 requires public authorities to consider the social, economic, and environmental benefits that suppliers can offer when awarding contracts. This allows social enterprises to highlight their contributions to community development, job creation, and environmental sustainability, giving them a competitive edge in the procurement process.

Additionally, public awareness campaigns that encourage consumers to support social enterprises could help create a more socially conscious market, driving demand for products and services that contribute to positive social and environmental outcomes.

Fostering a culture of innovation and social impact

Finally, a thriving social enterprise ecosystem requires a shift in culture—towards one that values innovation, collaboration, and social responsibility. The government, alongside private sector partners and civil society, should work to create platforms that encourage dialogue, experimentation, and collaboration among SEs, corporations and the wider public.

Initiatives such as Shell LiveWIRE Malaysia, Petronas SEEd.Lab, Biji-Biji's Social Enterprise Accelerator Malaysia (SEAM), and the Satu Creative Hasanah Impact Challenge are essential and should be scaled for wider impact. These programmes provide valuable platforms for innovation, mentorship, and collaboration, helping to nurture a culture of social entrepreneurship that can address the country’s most pressing challenges.

In Malaysia’s journey toward becoming a prosperous, inclusive nation, social enterprises are not just participants—they are drivers of change. The movement toward social entrepreneurship reflects the values we hold dear, such as fairness, equity and the belief that economic growth should benefit all members of society.

Through Budget 2025, we have a unique opportunity to lay the foundation for an inclusive, resilient, and impactful social enterprise movement. It is a chance to create a future where businesses don’t just seek profit but purpose—where entrepreneurship is a tool for both economic success and social good.

Source: The edge markets

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Glendon

Economic

Options trading is a popular strategy among investors seeking to hedge their portfolios or enhance potential profits through speculative positions. Central to options trading are the terms puts and calls, which form the foundation of how options work. In this comprehensive guide, we will explain what puts and calls are, how they function, and how traders can use them effectively in 2024 to navigate today’s financial markets.

What Are Puts and Calls?

Options contracts give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price, known as the strike price, before or on a specific date, called the expiration date. There are two main types of options:

Call Options: A call option gives the buyer the right to buy the underlying asset (such as a stock) at the strike price before the expiration date.

Put Options: A put option gives the buyer the right to sell the underlying asset at the strike price before the expiration date.

Both types of options can be used for various purposes, from hedging existing positions to speculating on future price movements.

How Do Call Options Work?

A call option is a bullish instrument. When traders purchase call options, they expect the price of the underlying asset to rise above the strike price before the option’s expiration. Here’s a simple example:

Scenario: A trader buys a call option on a stock with a strike price of $100 and an expiration date one month from now. The premium (price of the option) is $5.

Outcome: If the stock price rises to $110 before the expiration date, the trader can exercise the option, buy the stock at $100, and sell it at the market price of $110, making a $10 profit minus the $5 premium (net profit: $5).If the stock doesn’t rise above the strike price, the option expires worthless, and the trader loses the premium paid.

The goal of buying a call is to benefit from a rising stock price without having to invest in the stock outright. Calls are often used when investors are confident in the upward momentum of a stock but want to limit their risk to the premium paid for the option.

How Do Put Options Work?

A put option is a bearish instrument. Buying a put allows traders to profit from a decline in the price of the underlying asset. Here’s how it works:

Scenario: A trader buys a put option with a strike price of $100 for a premium of $5.

Outcome: If the stock price drops to $90 before the expiration, the trader can sell the stock at the strike price of $100, even though the market price is lower, making a profit of $10 minus the $5 premium (net profit: $5).If the stock price stays above the strike price, the option expires worthless, and the trader loses the premium.

Puts are typically used as protection against falling stock prices. Traders or investors who hold large positions in a stock might buy puts as insurance, limiting their potential losses if the stock drops sharply.

Key Features of Puts and Calls

Strike Price: The price at which the buyer of the option can exercise their right to buy (call) or sell (put) the underlying asset.

Premium: The price paid by the buyer of the option to the seller (also called the writer). The premium is influenced by the current price of the underlying asset, time until expiration, volatility, and other factors.

Expiration Date: The last day on which the option can be exercised.

In-the-Money (ITM): A call is ITM if the current stock price is higher than the strike price, and a put is ITM if the stock price is lower than the strike price.

Out-of-the-Money (OTM): A call is OTM if the stock price is lower than the strike price, and a put is OTM if the stock price is higher than the strike price.

Using Puts and Calls for Hedging

One of the primary uses of options is hedging, where traders protect their portfolios from adverse price movements. Here’s how investors can use puts and calls for hedging purposes:

Protective Puts: If you own a stock and are concerned about a short-term drop in its price, you can buy a put option. This strategy is known as a protective put. If the stock’s price declines, the put option increases in value, offsetting losses in the stock.

Covered Calls: If you hold a stock and believe it will rise only slightly, you can sell call options against it, a strategy called writing covered calls. This generates income from the premium, and if the stock price remains below the strike price, you keep both the stock and the premium.

Using Puts and Calls for Speculation

For speculative purposes, traders often use options to profit from price movements without holding the underlying asset. Here's how this can be done:

Bullish Speculation: Buying a call option is a common strategy when traders believe a stock will rise sharply in the near future. The premium paid is relatively low compared to the potential profits if the stock price surges.

Bearish Speculation: If traders expect a decline in a stock’s price, they can buy a put option. If the stock drops, the put option increases in value, allowing the trader to sell it for a profit or exercise it to sell the stock at a higher strike price.

Risks Involved with Puts and Calls

While puts and calls offer significant opportunities, they are not without risk:

Time Decay: Options lose value as the expiration date approaches, a concept known as time decay. Even if the stock price moves in your favor, the passage of time can erode potential profits.

Volatility Risk: Options are highly sensitive to market volatility. An unexpected decrease in volatility can cause options to lose value, even if the underlying asset’s price moves as expected.

Limited Lifespan: Unlike stocks, which can be held indefinitely, options have a finite life. If an option expires out-of-the-money, it becomes worthless, and the buyer loses the premium.

Real-Life Data: Options Market in 2024

In 2024, options trading remains a popular activity among both institutional and retail investors. According to data from the Options Clearing Corporation (OCC), the volume of traded options has continued to increase, reaching over 9 billion contracts annually. The rise of low-cost brokerage platforms and the democratization of options trading have contributed to this surge.

Most Traded Underlying Assets: Popular stocks like Apple, Tesla, and Amazon continue to dominate options trading, especially during earnings season when volatility spikes.

Volatility Trends: In early 2024, options traders have seen increased volatility due to global economic uncertainties, presenting both opportunities and challenges in options strategies.

Conclusion: Mastering Puts and Calls in 2024

Understanding puts and calls is essential for anyone looking to engage in options trading in 2024. Whether you aim to hedge your portfolio or speculate on market movements, options offer flexibility and leverage that traditional investing methods do not. However, it is crucial to thoroughly understand the risks and to use options with careful planning and strategy.

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Glendon

Economic

The healthcare and pharmaceutical industries are central to the U.S. economy, and special-purpose acquisition companies (SPACs) continue to play a pivotal role in facilitating investment and innovation in these sectors. Drugs Made in America Acquisition Corp. is the latest SPAC to attract attention due to its focus on promoting American-made pharmaceuticals and healthcare products. This article delves into the specifics of the Drugs Made in America Acquisition Corp. initial public offering (IPO), its mission, and the broader implications for the market.

Company Overview

Drugs Made in America Acquisition Corp. (DMAAC) was established with a clear mission: to support the domestic production of pharmaceuticals and healthcare products. The company is a blank check company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, or other business combinations with one or more businesses. The corporation is particularly focused on the biopharmaceutical sector, looking to leverage the growing demand for American-made drugs and healthcare supplies.

In recent years, there has been an increasing push from U.S. lawmakers and policymakers to bolster domestic production in the pharmaceutical industry. The COVID-19 pandemic exposed vulnerabilities in global supply chains, particularly those tied to drug manufacturing. This SPAC seeks to address those issues by channeling investments into U.S.-based pharmaceutical manufacturing and R&D.

IPO Details

The Drugs Made in America Acquisition Corp. IPO is designed to raise capital that will be deployed to facilitate acquisitions or mergers with pharmaceutical companies, particularly those with a domestic manufacturing base. Here are the key details of the IPO:

IPO Date: Expected to launch in Q4 2024, with official filings submitted to the SEC.

Ticker Symbol: The company will trade under the ticker symbol DMAA on the NASDAQ.

Offering Size: The IPO is expected to raise between $150 million to $200 million, providing substantial capital for strategic acquisitions in the biopharmaceutical space.

Price per Share: Each share will be offered at approximately $10, with an additional option for institutional investors to acquire more shares via warrants.

This IPO is considered to be a strategic move aimed at consolidating U.S.-based drug manufacturers or emerging biotech firms that focus on the development of essential medicines within the United States.

Market Context

The pharmaceutical market is evolving rapidly, and the demand for locally sourced drugs has become a significant topic of debate in the U.S. Political pressure to reduce dependence on foreign pharmaceutical imports, particularly from countries like China and India, has been mounting. The U.S. government is encouraging both private and public sectors to prioritize "Made in America" initiatives.

Given the increased public interest in self-reliant healthcare infrastructure, DMAAC is well-positioned to capitalize on market trends that emphasize quality, innovation, and accessibility in American healthcare manufacturing.

U.S. Pharmaceutical Market: The pharmaceutical industry in the U.S. is valued at over $500 billion, making it the largest single market for drugs globally. The push for domestic production has become a focal point in recent years, driven by concerns over quality control and national security.

Biotech Boom: Biotech companies have seen a surge in investor interest, with many looking to capitalize on innovations in treatments such as gene therapies, biologics, and precision medicine. SPACs, like Drugs Made in America Acquisition Corp., are uniquely positioned to bring capital into these emerging areas of healthcare.

Investment Appeal

There are several reasons why the Drugs Made in America Acquisition Corp. IPO could appeal to investors:

Political Momentum: With strong support from policymakers for American-made pharmaceutical products, DMAAC aligns itself with governmental priorities. The U.S. government is exploring incentives to boost domestic manufacturing, which could benefit DMAAC’s long-term strategies.

Public Health Security: As the U.S. strives to reduce its dependency on foreign drugs, DMAAC’s focus on domestic pharmaceutical production addresses the growing need for self-sufficient healthcare infrastructure.

Mergers and Acquisitions: As a SPAC, DMAAC provides investors with an opportunity to get in on the ground floor of mergers or acquisitions involving innovative biopharma companies. SPACs have been increasingly successful in the biotech and healthcare sectors, and DMAAC’s well-defined focus offers the potential for lucrative partnerships.

Growth Potential: The biopharmaceutical sector continues to experience robust growth, driven by advances in treatments and therapies. Investors in this IPO could benefit from the growth of emerging U.S.-based biotech firms and pharmaceutical companies.

Risks Involved

As with any SPAC, there are risks involved in investing in Drugs Made in America Acquisition Corp. The success of the IPO will depend largely on the company's ability to identify and merge with a successful biopharma or healthcare business. The volatility of the biotech market and ongoing regulatory challenges in the U.S. healthcare system also present uncertainties for investors.

Moreover, while the focus on American-made pharmaceuticals is politically favorable, it may limit the scope of opportunities in a globalized pharmaceutical market. Competing against global pharmaceutical giants with established infrastructure may prove challenging for emerging U.S.-based manufacturers.

Conclusion: An Exciting Opportunity in a Critical Sector

The Drugs Made in America Acquisition Corp. IPO presents an intriguing investment opportunity for those looking to support domestic drug production while tapping into the growth of the biotech and healthcare sectors. With an emphasis on bolstering U.S. self-sufficiency in pharmaceuticals, the company aligns well with current market trends and political priorities.

For investors, DMAAC offers the potential for substantial returns, particularly if the SPAC can successfully merge with innovative biopharma companies focused on breakthrough treatments and domestic manufacturing. As always, careful analysis of the market and the company’s future targets is essential before making any investment decisions.

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Glendon

Economic

The financial markets continue to witness the rise of global companies seeking capital to expand their operations, and FBS Global Ltd. is no exception. Known for its prominence in the online trading and financial services industry, FBS Global Ltd. is gearing up for its Initial Public Offering (IPO), a move that could significantly impact the global financial landscape. This article provides an in-depth look at the details surrounding the FBS Global IPO, its business model, market potential, and what investors need to know.

Company Overview: FBS Global Ltd.

FBS Global Ltd. is an international financial services company that primarily offers online trading platforms for retail and institutional traders. Established in 2009, the company has expanded its reach across multiple regions, providing services in Forex (foreign exchange), stocks, indices, commodities, and cryptocurrencies. With millions of clients worldwide, FBS has established itself as a trusted broker known for competitive spreads, robust trading platforms, and high-quality customer service.

FBS operates under several regulatory jurisdictions, ensuring it provides safe and secure trading environments for its users. These jurisdictions include oversight from financial regulatory bodies in Europe, Asia, and other parts of the world. However, its focus on expanding into new markets, particularly in emerging economies, sets the stage for its IPO.

IPO Details

FBS Global Ltd.’s IPO marks a significant step in its strategic growth plan. The company aims to raise capital to fund its expansion, enhance its technology infrastructure, and diversify its product offerings. Here are the essential details of the IPO:

IPO Date: Expected to launch in early 2024, with the official prospectus already filed with financial authorities.

Exchange: FBS Global Ltd. will be listed on the

New York Stock Exchange (NYSE) under the ticker symbol FBSG.

Offering Size: The company is expected to raise between $300 million and $500 million through the offering.

Price per Share: The anticipated price per share will be in the range of $20 to $25, offering significant value to early investors.

Use of Proceeds: The funds raised from the IPO will be used to expand operations in new markets, develop advanced trading platforms, and invest in marketing and customer acquisition efforts.

FBS Global Ltd. intends to leverage the IPO capital to enhance its technology-driven trading solutions, making them more accessible and user-friendly for global traders. The company also plans to introduce new asset classes and trading instruments, expanding beyond traditional Forex and CFDs.

Business Model and Market Position

FBS Global operates on a brokerage model, offering financial products such as Forex, stocks, commodities, and indices through Contracts for Difference (CFDs). The company's primary revenue stream comes from spreads and commissions on trades executed through its platform. With a strong focus on client satisfaction and innovation, FBS Global has maintained a competitive edge by offering cutting-edge trading tools, educational resources, and exceptional customer support.

In addition to providing retail trading services, FBS also caters to institutional clients, offering advanced trading platforms with more sophisticated tools and features. As the company prepares for its IPO, FBS Global is focused on expanding its reach into emerging markets in Africa, Southeast Asia, and the Middle East. These regions have seen a significant rise in retail traders, driven by increased access to financial markets and the growing popularity of online trading.

Market Opportunity

The global financial trading industry is undergoing rapid growth, driven by technological advancements, increasing financial literacy, and broader access to online trading platforms. According to research, the global online trading market is projected to grow at a CAGR of 6.9% between 2021 and 2028, with a valuation exceeding $12 billion by the end of the forecast period.

Several factors contribute to this growth:

Increasing Demand for Online Financial Services: As more people gain access to high-speed internet and financial services in emerging markets, the demand for online trading platforms continues to grow.

Technological Innovations: The integration of artificial intelligence (AI), machine learning, and blockchain technology into trading platforms is transforming the way people trade. These innovations make platforms more user-friendly and efficient, which attracts more traders.

Rise of Cryptocurrencies: With the growing interest in cryptocurrencies and blockchain assets, brokers like FBS have expanded their product offerings to cater to this demand, adding to their client base.

FBS Global Ltd. is well-positioned to capitalize on these market trends. The company's strong brand presence, coupled with its comprehensive suite of trading tools and educational resources, makes it an attractive option for both novice and experienced traders.

Investment Considerations

Investing in the FBS Global Ltd. IPO offers potential opportunities but also comes with certain risks. Here are the key factors investors should consider:

Growth Potential: FBS’s expansion into emerging markets and the development of new asset classes such as cryptocurrencies and commodities position it for significant growth. The IPO proceeds will likely fund these initiatives, offering long-term growth potential.

Regulatory Environment: FBS operates in a highly regulated industry, which can present both opportunities and challenges. Regulatory changes in key markets could impact the company's operations and revenue streams.

Competitive Landscape: FBS competes with other global brokers such as eToro, IG Group, and Plus500. While FBS has a strong market presence, increased competition could affect its ability to attract new customers and retain existing ones.

Market Volatility: The online trading industry is inherently tied to global financial markets. Significant market fluctuations can impact client trading activity, which in turn affects FBS’s revenue.

Conclusion

The FBS Global Ltd. IPO represents an exciting opportunity for investors looking to enter the fast-growing online trading industry. With a well-established reputation, a strong technological foundation, and ambitious plans for expansion, FBS Global Ltd. is poised for further success. However, potential investors should weigh the risks, including regulatory and market volatility, before making an investment decision.

Overall, FBS Global’s entry into the public market signifies its confidence in its business model and its ability to capitalize on the growing demand for online trading platforms worldwide.

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Cohen

Economic

Sanofi SA is in talks to sell a 50% controlling stake in its consumer health unit to Clayton Dubilier & Rice (CD&R), in what is set to be one of the biggest deals this year.

The announcement confirms a report from Bloomberg News that Sanofi is nearing an agreement with CD&R. Financial terms were not disclosed, but people familiar with the matter said earlier that the deal would value the unit at about €15.0 billion (US$16.4 billion or RM70.3 billion).

Sanofi shares slipped as much as 0.6% in early Paris trading. The stock has gained about 12% this year, roughly in line with the rise in Bloomberg’s European pharmaceuticals index.

The deal caps a year-long effort by Sanofi to split off its consumer-health business as the company looks to generate better long-term value for cutting-edge therapies for cancer, rare diseases and other ailments. It follows big pharma peers GSK plc, Novartis AG, Pfizer Inc and Johnson & Johnson, which have made similar moves in recent years.

The Opella unit sells over-the-counter products including Cenovis vitamins, DulcoLax constipation relief and Icy Hot pain relief gel. Sanofi said it would provide updates on the separation when a decision is made.

The aim with the deal is to turn Sanofi, for the first time, into a pure play biopharma company, chief executive officer Paul Hudson has said. Sanofi is working to ramp up its research and development to ensure it can produce the next wave of blockbuster medicines.

CD&R, which raised a record US$26 billion buyout fund last year, saw off interest from rival PAI Partners for the Sanofi unit, the people familiar said.

The US private equity firm, founded in 1978, has been an active investor in France in recent years, teaming with Permira in July in an offer to take cybersecurity company Exclusive Networks SA private. It’s also an investor in Mobilux, one of the largest home equipment retailers in France.

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Justin

Commodity

The Malaysian Palm Oil Board (MPOB) reported that palm oil exports in September 2024 saw a marginal increase of 0.93% to 1.54 million tonnes from 1.53 million tonnes in August 2024.

It said Malaysia’s crude palm oil (CPO) production dropped 3.8%, or 71,926 tonnes, to 1.82 million tonnes in September 2024, from 1.89 million tonnes in August.

Palm kernel output eased by 4.87% month-on-month to 433,785 tonnes in September from 455,976 tonnes previously, MPOB said in its report on the palm oil industry’s performance for September.

The production of crude palm kernel oil output was down by 6.45% to 193,836 tonnes from 207,194 tonnes in August, while palm kernel cake fell by 5.34% to 215,166 tonnes from 227,302 tonnes previously.

In terms of inventory, the agency reported that CPO stocks rose by 10.91% to 1.06 million tonnes against 953,145 tonnes in August.

Processed palm oil stockpiles gained 2.85% to 956,726 tonnes from 930,069 tonnes in the preceding month, while total palm oil stocks climbed 6.93% to 2.01 million tonnes from 1.88 million tonnes in August.

MPOB noted a significant surge in palm kernel oil exports, which jumped 45.06% to 126,446 tonnes in September from August. Palm kernel cake exports bounced 33.99% to 232,944 tonnes in September from August.

However, oleochemical exports declined by 5.72% to 257,825 tonnes from 273,395 tonnes in August, and biodiesel exports fell sharply by 43.95% to 16,793 tonnes from August’s 29,963 tonnes.

MPOB reported that CPO imports remained at zero while palm kernel oil imports slid 20.68% to 10,887 tonnes from August.