Oil Ends 2025 with Deep Losses as Oversupply and Geopolitical Turmoil Offset Early Price Gains

An electronic trading board at Hana Bank headquarters in central Seoul shows the benchmark KOSPI closing at 4,214.17 points on Tuesday, the last trading day of 2025. Yonhap

A greater number of Korean companies will be required to provide regulatory filings in English starting next year, offering enhanced transparency and wider market access to foreign investors, while the recently legislated "yellow envelope" pro-labor law will take effect, expanding labor-related liabilities of companies, officials noted Wednesday.

According to the Financial Services Commission, the scope of firms subject to mandatory English regulatory disclosures will be widened from companies listed on the Korea Composite Stock Price Index (KOSPI) with assets of 10 trillion won ($6.94 billion) or more to those with assets of a minimum of 2 trillion won.

The new disclosure requirement will take effect May 1.

The move is aimed at improving transparency and accessibility for overseas investors amid efforts to enhance the competitiveness of the local capital market, according to officials.

Another major change is the enactment of the yellow envelope law, scheduled to take effect in March.

The revision to the Labor Union Act is primarily designed to guarantee the bargaining rights of indirectly employed workers of subcontractors. It also prohibits companies from filing lawsuits for damages or provisional seizures against unionized workers, which many argue businesses have used to suppress strikes.

The labor reform measure is expected to increase compliance burdens for large conglomerates and foreign firms that rely heavily on subcontracting structures.

The country's minimum wage will increase 2.9 percent to 10,320 won per hour in 2026, lifting minimum monthly labor costs to 2.15 million won.

The government will also expand tax incentives for reshoring Korean firms and extend eligibility to companies that complete the downsizing of overseas operations within four years after newly establishing or expanding domestic facilities.

Foreign companies operating liaison offices in Korea will face stricter compliance requirements as well, as a newly introduced rule allows authorities to impose fines of up to 10 million won on foreign corporations that fail to submit necessary liaison office status reports or submit false information.

Source: Koreatimes

China has bought at least 8 million tons of US soybeans this year, according to people familiar with the matter, putting the world's top importer on track to meet a pledge it made two months ago as part of an apparent trade truce with Washington.

State-owned buyers have continued to book US cargoes into late December, the people said, asking not to be named as they are not authorized to discuss the purchases. That extends a buying spree that began in October and maintains a pace that has reassured American exporters, otherwise wary that Beijing's commitment might slip amid limited visibility and unclear deadlines.

The shipments booked so far are mostly for loading between December and March, the people said.

The White House said immediately after talks between President Donald Trump and Chinese counterpart Xi Jinping that China had pledged to buy at least 12 million tons of US soybeans by the end of this year. US officials later clarified the deadline was in fact the end of February. Beijing has not confirmed the commitment, but the Chinese government has moved to reduce tariffs on the crop and lifted import bans on three American exporters.

The return of Chinese buyers is welcome news for US exporters, and a reminder that buying patterns can change fast — but it is not yet a full reset. Even as Beijing takes US shipments, state-owned firms have bought large quantities of beans from Brazil and Argentina, the people said. Commercial buyers in particular have stayed on the sidelines when it comes to US purchases.

Almost 80% of Brazil's soy went to China in 2025, with exports through November climbing 16% compared to the previous year. That trade continued in December, even in a period when sales are seasonally weaker, and Brazil's upcoming harvest is forecast to be a record.

"We cannot confirm from China's side that anything beyond the 12 million tons has been pledged," said Ben Buckner, grains and dairy analyst at AgResource Co. The brokerage wrote in a note this week that China was seeking shipments and could reach a "soft target" of 10 million tons in 2025, with an additional 2 million tons in January.

Without a formal deal confirmed by both sides, traders say uncertainty over future sales is reinforcing pressure on soybean prices. Futures in Chicago are down nearly 7% in December, on track for the worst monthly performance since July 2024.

Matt Bennett, an Illinois corn and soy farmer, said many farmers have been "pleasantly surprised" with the steady flow of purchases from China so far, but added there has been frustration with the direction of soybean prices.

"From our vantage point, once you quantify that they're going to buy 12 million tons, you need something in excess of that to get everyone excited," Bennett, co-founder of farm advisory AgMarket.Net, said in a phone interview.

Trump earlier this month announced $12 billion in relief for US farmers, but growers are still waiting for the administration to provide details on how much they will get in payments promised by February.

Source: Bloomberg Europe

The Philippines Coast Guard said it deployed an aircraft on Tuesday to challenge a Chinese research ship that serves as a base for submersible vessels after it was spotted about 19 nautical miles off the coast of the northern Cagayan province.

The pilot issued multiple radio challenges to the CRV Tan Suo Er Hao seeking to confirm whether it was conducting marine research without Manila's consent, which would violate Philippine and international law, but received no response, the Philippine Coast Guard (PCG) said in a statement.

The 87.25‑metre deep‑sea research vessel, which left China's Hainan province earlier this month and entered the western part of the Philippine Exclusive Economic Zone, was then monitored heading east about 55.8 nautical miles off Santa Ana, Cagayan, the PCG said.

Cagayan, the northernmost province of Luzon near Taiwan, hosts one of nine military bases accessible to U.S. forces under the Enhanced Defense Cooperation Agreement (EDCA).

On Tuesday, China staged war games around Taiwan, firing rockets into surrounding waters and simulating strikes and blockades in drills dubbed "Justice Mission 2025," launched days after Washington announced a record $11.1 billion arms package for Taipei.

The PCG said the Chinese research vessel was detected through Canada's satellite-based Dark Vessel Detection system.

The Chinese Embassy in Manila did not immediately respond to a request for comment.

Source: Reuters

[Quick Facts]

[News Details]

[Today's Focus]

Indian sovereign bonds eligible for inclusion in global indexes are on track for a record monthly outflow, as a weaker rupee and signs the central bank is nearing the end of its interest-rate cut cycle weigh on sentiment.

Global funds have sold 143 billion rupees ($1.6 billion) of bonds so far in December, according to Clearing Corporation of India data. That marks the biggest outflow since the so-called Fully Accessible Route — a framework under which select government bonds have no foreign investment restrictions - was created in 2020. Outflows may continue in the coming months, Standard Chartered Plc said.

The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners. For a euro-based investor, the rupee's total return has been "a whopping negative 10%" this year, while Hungary's forint and the Mexican peso have posted double-digit returns, according to Gama Asset Management SA.

"Foreign investors have been reallocating their emerging-market local bond investments to countries with higher yields and greater potential for currency appreciation," said Rajeev De Mello, global macro portfolio manager at Gama Asset. Including carry, the rupee is the worst-performing major EM currency in 2025, he added.

The outflows are pressuring Indian bonds, which are on track for their biggest monthly decline in four months in December, weighed by heavy debt issuance from states. The selloff has pushed up government borrowing costs even as India faces the harshest US tariffs in Asia. Expectations for deeper interest-rate cuts are also fading after the central bank signaled higher inflation next year.

The rupee, Asia's worst performer this year, weakened past the closely watched 91-per-dollar mark to an all-time low in December before recovering on central bank interventions.

Year-end profit-taking also drove some foreign selling as investors trimmed bond holdings and entered interest-rate derivative trades after a jump in swap rates, said Vikas Jain, head of India fixed income, currencies and commodities trading at Bank of America Corp.

Still, developments next year have the potential to shift momentum back in favor of the Indian securities. Should a long-awaited US trade deal come together, it may revive foreign interest in local bonds, as lower tariffs would ease pressure on the rupee. Analysts at Australia and New Zealand Banking Group see scope for the currency to strengthen as much as 1.5% to 88.5 per dollar if an accord is reached.

The prospect of more global bond-index compilers including the securities next year may spur foreign demand for Indian debt, traders said. "India may also get included in the Bloomberg global index next year, which should help bring in more real-money flows," Jain said. India's index-eligible bonds are already part of JPMorgan Chase & Co.'s widely followed emerging market gauge.

Source: Bloomberg Europe

Many people leave the UK to build a life overseas, to find opportunities, or to reduce their tax bill. Tax is rarely the only reason, but it is often part of the decision, particularly for those moving to the UAE. If you are making the move, planning before you go can help you avoid expensive surprises.

An important point is getting your UK tax residence position right. Becoming a non-UK tax resident can reduce your exposure to UK tax, but you need to know the date non-residence starts and how much time you can still spend in the UK each year without becoming UK resident again.

Many people assume that leaving the UK automatically makes them non-resident straight away. That is not always true. The rules sit within the UK Statutory Residence Test, which explains how residence is worked out based on time spent in the UK and your connections to the UK.

Once you know the likely date you become non-UK resident, you can focus on the areas that tend to matter most.

First, individual savings accounts (ISAs). If you are non-UK resident, you cannot contribute to UK ISAs, so it can be sensible to use the current tax year's ISA allowance before leaving. For families, junior ISAs are different. You can usually continue contributing while overseas, as long as the junior ISA was opened while the child was UK resident.

Pensions are another big planning point. While UK resident, you can contribute up to £60,000 ($81,100) a year to a UK pension tax-efficiently, and you may be able to add more using carry forward of unused allowances. Once non-UK resident, you can still contribute to a pension you already have, but tax-efficient contributions are capped at £3,600 a year, including basic rate tax relief, and only for the first five years of non-residency.

Inheritance tax planning is easy to overlook during a move. You can use the annual gifting exemption of £3,000, and if you did not use it last year, you can carry it forward, allowing a £6,000 tax-free gift. There is also the small gifts allowance of £250 per person each year, plus certain wedding gifts. Used consistently, these can reduce the value of your estate over time.

It is also worth reviewing investments before you leave. UK residents have a £3,000 annual capital gains tax exemption, and it is use it or lose it. Selling investments to use the exemption and reinvesting can reset the base cost. If you are married, transferring assets between spouses can help share gains and may allow both spouses to use their £3,000 CGT exemption.

After you move, the UK tax picture changes, but it does not disappear. In general, once you are non-UK resident, you escape UK tax on overseas income, although UK source income can still be taxed.

You also need to understand the temporary non-residence rules. If you return to UK tax residence within five complete tax years, certain capital gains, certain pension withdrawals, and receipts from some other types of investment income that arose while you were overseas can be taxed in the year you return.

UK property needs special care. Gains on UK land and property are taxed no matter how long you have lived overseas. Non-residents are generally taxed only on gains arising since April 2015, as the property can be rebased to its April 2015 value. This can reduce CGT where most growth happened before 2015. However, if you return within the temporary non-residence period, the benefit of that April 2015 rebasing can be lost, increasing the CGT bill.

Finally, do not ignore the year you leave. Bonuses, deferred pay, or the end of employment can make the final UK tax year unusually expensive. In some cases, UK tax-efficient investments such as enterprise investment scheme (EIS) or seed enterprise investment scheme (SEIS) can help, offering income tax relief of between 30 per cent and 50 per cent of the amount invested. These investments can be made while UAE resident and, subject to conditions, relief can be carried back to reduce income tax paid in the final year of UK residence.

Keep inheritance tax in mind, too. IHT can apply to worldwide assets if you are considered a long-term UK resident, which you typically are if you have lived outside the UK for less than 10 tax years.

Peter Webb is head of tax and Christopher Davies is head of financial planning at Metis, a DIFC-based wealth adviser

Source: THENATIONALNEWS