Kia ora and welcome to your Monday summary of international business and political news from the weekend.
First up, US President Donald Trump said negotiators will head to Pakistan this week for the next round of peace talks with Iran. Trump also claimed that Iran had violated a ceasefire, CNBC reported.
“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran. NO MORE MR. NICE GUY!”
Iran said the Strait of Hormuz was closed again, a day after its foreign minister said the passage had reopened to commercial traffic. Iranian gunboats fired at two Indian-flagged ships in the waterway before it closed, the ABC reported.
The BBC said reports emerged of vessels in or near the strait, including a tanker, that were targeted by Iran on Saturday local time.
The Islamic Revolution Guard Corps blamed a continuing US blockade for its decision. It said a number of vessels had initially passed through the strait under its management since Friday night.
The US, meanwhile, confirmed it was keeping in place its blockade of Iran's ports until a final deal gets agreed between Washington and Tehran. But Iran said it had not agreed to participate in a second round of talks with the US, Al Jazeera reported.
Trump said a peace deal “will happen one way or another – the nice way or the hard way” as he renewed his threat to “blow up” Iran.
Salt Funds Management economist Bevan Graham said oil prices were unlikely to head back to pre-war levels anytime soon.
“For investors, that uncertainty should not only be viewed as a threat. Periods like this often create opportunities. Markets can overreact in the short term, underreact to longer-term changes, and misprice quality businesses along the way.
“The bottom line is that while the immediate panic may have faded, the story isn’t over. The outlook still carries risks, but it also carries opportunity for disciplined investors prepared to stay diversified, stay patient and stay alert to the risks.”
Salt Funds Management economist Bevan Graham.
To politics, an exit poll in Bulgaria suggested the centre-left Progressive Bulgaria coalition led by ex-president Rumen Radev could be the winner of the country’s parliamentary election, Reuters and CNBC reported.
The exit poll also predicted that voter turnout stood at 43.4%, and six parties could pass the 4% threshold to enter a fragmented parliament. The election on Sunday was Bulgaria’s eighth in five years.
It followed the resignation of a conservative-led government amid nationwide protests that called for an end to widespread corruption.
In business news, a federal judge in California blocked a television merger in the United States as Nexstar attempted a takeover of rival owner Tegna, CNN said.
US District Judge Troy Nunley said the merger could violate antitrust laws. Nexstar argued the deal was a “pro-competitive transaction” that would make local stations stronger and support investment in local journalism.
To Egypt, where the Talaat Moustafa Group planned to build a new mixed-use city east of Cairo. The project, called The Spine, is to be developed in partnership with the National Bank of Egypt, with paid-up capital of US$1.3 billion, Reuters and CNBC reported.
The project combined residential, commercial, hospitality, retail, entertainment, and public green space within a single continuous urban environment. The overall investment is equivalent to about 1% of Egypt’s GDP.
The project is expected to create more than 55,000 direct jobs and hundreds of thousands of indirect roles.
