News Wrap

IN THIS morning’s News Wrap: Local resources sector hot zone for Asia-Pacific mergers; resources demand from India, Brazil to pick up slack from China; and HSBC cuts 2013 gold price outlook.

Staff Reporter

Local resources sector hot zone for Asia-Pacific mergers

Research from Mergermarket shows that Australasia’s energy, mining and utilities sector will be one of the hottest areas for mergers and acquisitions in the Asia-Pacific region in 2013, according to the Australian Financial Review.

The sector ranked second in Mergermarket’s “heat chart” of predicted deal flow, based on data collected about companies rumoured to be for sale, or officially up for sale.

Greater China’s industrial and chemicals sector was ranked the most likely to attract M&A activity. Its technology, media and telecommunications sector was third.

Resources demand from India, Brazil to pick up slack from China

The global head of accountancy firm KPMG says a second wave of raw materials demand from India and Brazil will support the domestic economy towards the end of the decade after an expected slowing of demand from China, which has already been flagged by big miners BHP Billiton and Rio Tinto, according to The Australian.

KPMG global chairman Michael Andrew, the first head of any of the big four accounting firms to be based in Asia, said growth from countries such as India and Brazil – which has long been tipped, but has never really fired – was starting to appear.

HSBC cuts 2013 gold price outlook

Major bullion bank HSBC Holdings Plc cut its 2013 average gold price after factoring in a 2012 year-end price of $US1675 an ounce, according to the Australian Financial Review.

The bank cut its 2013 price forecast to $US1760 an ounce from $US1850. It kept its 2014 gold forecast at $US1775 and introduced a 2015 forecast of $US1675 an ounce.

Macro fund liquidation and uncertainty over the impact of the US fiscal cliff led traditional gold investors to shift out of bullion and move to the "sidelines" in late 2012, HSBC analyst James Steel said in a note to clients.

loader