Diamond News Archives

Deutsche Bank has had to pay the highest financing rates on the euro debt market for a leading international bank this year, in a further sign of the German lender’s uphill struggle to reduce its funding costs.

The bank raised eyebrows last week when it sold a total of €3.6bn in euro-denominated debt, paying 180 basis points (1.8 percentage points) over the benchmark for a two-year bond, a steep rate for short-term funding.

It also paid 230basis points over the benchmark on a seven-year bond, a higher rate than domestic Spanish lender CaixaBank, which recently raised five-year bonds at 225 basis points, according to capital markets news service IFR.

“Deutsche has to pay significantly higher risk premiums than almost all other large European banks...[the] high spreads express severe doubts, mainly triggered by its poor revenue,” sai0d Michael Hünseler, head of credit portfolio management at Assenagon.

For decades, cheap financing had been the cornerstone of Deutsche’s competitive advantage, with its perception as a “de facto” extension of the German state guaranteeing rock-bottom funding costs that helped it break into the top ranks of global investment banking.

However, post-crisis regulations to protect taxpayers from “too big to fail” lenders have eliminated this edge and more recent capital rule changes now require even senior bondholders to take losses if a bank fails, further pushing up costs.High interest rate payments could price Deutsche out of transactions with some of its most important institutional and corporate clients, analysts say, exacerbating market share declines in key businesses.

The financing cost rises were another headwind for Deutsche, said Barclays analyst Amit Goel in a report, adding that in an “adverse scenario” for funding, the bank could face a 35 per cent hit to its pre-tax profit, significantly...

(IDEX Online) – A gang of thieves suspected of carrying out a diamond theft during the International Diamond Week at the Israel Diamond Exchange (IDE) at the end of January, were arrested a few hours after the theft, the IDE said in a statement. <?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

The arrests took place after the IDE’s security team quickly alerted the police and supplied a picture of one of the suspects.

The gang of nine, who are suspected of stealing a suitcase containing diamonds worth tens of thousands of dollars from the IDE trading floor, were arrested the same day at the Israel-Egypt border by Israel Police and Border Control, before they were able to leave the country.

IDE President Yoram Dvash said, "The rapid arrest of the suspects was facilitated by our immediate cooperation with the Israel Police and security forces. The security system of the Israel Diamond Exchange is one of the best in the world. We will continue to do everything necessary to maintain the security and property of IDE members and buyers within the diamond complex.”

IDE’s security system detected the disappearance of a diamond case at IDWI, and within minutes details and CCTV footage were transferred to the police, which immediately opened an investigation.

IDWI, the largest annual event of the diamond industry, was held on the trading floor of the Ramat Gan exchange from January 28 to 30, 2019. Over 350 buyers from around the world participated in the exhibition - an all-time high in a diamond exhibition in Israel. During the event IDE opened a first-of-its-kind live auction center....

The Minerals Council of Australia published a report titled The Next Frontier: Australian Mining Policy Priorities where it asks the government to advanced a revived tax reform that removes barriers that hinder the growth of the country’s mining sector.

According to the Council, such reform would encourage additional investment in capital and technology.

“Australia should have strong tax integrity rules that are consistent with OECD best practice. The treatment of debt to fund investment in Australia should be aligned with OECD measures and should not affect legitimate debt, which is critical for Australia as a capital-importing economy,” the report reads.

The industry group also called on the Parliament to ensure tax settings are competitive and to retain the Fuel Tax Credit scheme so that companies operating in remote areas are not penalised for off-road diesel use.

In the document, the MCA urges authorities to modernise Australia’s workplace rules, which would imply removing duplication and red tape to allow local firms to stay ahead of the pack globally. In the organization’s view, there is unnecessary overlap in the requirements put forward by federal and state governments and this causes delays on projects and impacts the workforce.

“Flexibility and choice in employment arrangements will ensure that Australia’s highly paid, highly skilled mining workforce will be able to make the most of opportunities created by technology and new ways of working,” the report states.

The Minerals Council of Australia said it fears that jobs and the sustainability of regional and remote communities will be at risk if legislation related to the workplace is kept the way it is right now.

The post Minerals Council of Australia calls for tax, workplace law reform appeared first on MINING.com...

(IDEX Online) – India is seeking the extradition of Indian diamantaire and jeweler Mehul Choksi from Antigua. <?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

Choksi is a main defendant in one of India’s largest bank fraud cases who fled India before the accusations surfaced last year and since acquired an Antigua and Barbuda passport.

Choksi, however, an Indian official told Reuters, is still an Indian citizen and therefore the Indian government is pushing for his extradition.

Choksi is one of the key actors accused of defrauding Punjab National Bank of $2 billion. The Reuters report said that “bringing Choksi back to India would be a boon for Prime Minister Narendra Modi as he tries to bolster his anti-corruption credentials ahead of a general election due by May.”

Choksi and his nephew Nirav Modi, a renowned diamond trader and retail jeweler are both accused of colluding with a number of bankers to getting credit from overseas banks by means of duplicitous guarantees. Both Choksi and Modi have fled the country and acquired additional passports.

The Indian government is also in pursuit of Jatin Mehta, the owner of Winsome Diamonds and Jewellery Ltd., with accusations of alleged fraud at his firm.

India has filed a requested for extradition with St. Kitts and Nevis, where Mehta is said to be residing, according to the report....