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India's TVS Motor beats its quarterly profit forecast and seeks alternative rare-earth materials
TVS Motors, India's largest electric two-wheeler manufacturer by sales, beat its quarterly profit expectations on Thursday due to strong local sales and exports. It also said that it would seek alternatives for rare-earth magnetic materials in light of China’s export ban. The company that also produces three-wheelers had previously flagged challenges with securing magnets which are crucial for electric motors. China, which is the largest producer of rare earth magnets in the world, implemented export restrictions in April. Some shipments have resumed to the U.S., Europe and other countries. However, Indian companies are still waiting for Beijing's approval. TVS will be looking for "HRA-free", cerite-based and magnet-free alternatives, which don't include heavy rare-earth elements, as well as alternative countries, said K N Radhakrishnan, the chief executive of TVS, in a conference call following its earnings. Mahindra said it would use alternatives like light rare earths and ferrites. TVS Motors' overall two-wheeler sale rose by 17%, to 1.2 million units, in the quarter that ended June 30. This was largely due to a growing share of premium models such as the Apache Series, which accounts for about 25% of the total revenue. Exports, which account for nearly a quarter of the company's total revenue, increased by 39%. Jupiter's scooter maker's profits jumped by 34.9% compared to a year ago, reaching 7.79 billion rupees (88.92 millions dollars) in the second quarter. This was higher than analysts' estimates of 7.63 billion, according to data compiled and analyzed by LSEG. The revenue from operations increased by 20.4%, to 100.81 milliards of rupees. This is higher than analysts' estimates of 99.36 trillion rupees. Analysts say TVS is moving towards a "richer mix of products," with high-margin models like bikes and scooters with high engine capacities gaining ground over entry-level versions. This change helped to boost its core earnings, as the operating EBITDA increased from 11.5% in the previous year to 12.5% during the first quarter.
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ICE, the parent company of NYSE, beats expectations as volatility fuels record revenues
Intercontinental Exchange (parent of the New York Stock Exchange) beat its second-quarter profit expectations on Thursday as increased volatility led to record revenue. During periods of volatility, exchanges flourish as investors rebalance their portfolios in order to take advantage of opportunities and mitigate risks. This increases trading volume. The sweeping tariffs of U.S. president Donald Trump sparked volatility in April. Meanwhile, tensions in the Middle East increased in June. The volatility index (a barometer of market uncertainty, and Wall Street’s most watched gauge of investor anxiety) spiked in April to record highs before easing off as the markets calmed down due to optimism about potential trade deals. Total net revenue grew 10% in the third quarter to $2.54 billion, with a 27% increase in revenue from energy-related products. According to estimates compiled and analyzed by LSEG, ICE's adjusted earnings per share were $1.81, a record, exceeding Wall Street expectations ($1.77). Energy trading volumes have been supported by OPEC+ policy changes and shifting commitments in the U.S. ICE's average daily volume of energy (ADV), which includes Brent, gasoil and natural gas, as well as other crude and refined product segments, grew by 27%, reaching a record quarterly. The volatility in the oil and gas market led traders and investors, to purchase and sell more futures, options, and credits tied to Brent crude and U.S. Natural gas as well as European gas. New markets for carbon credits and renewable credits also added to activity. ICE's listing business saw a 1% increase in revenue for the quarter, primarily due to large offerings like stablecoin issuer Circle. The U.S. IPO Market saw a significant increase in activity in the second quarter after a brief lull during April. Companies that had delayed their listings due to tariff tensions accelerated their listings. The increase in IPOs is good for exchanges that charge fees to list stocks.
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Thermax, India's largest manufacturer of thermal insulation, beats profit forecasts on the back of strong orders and lower costs
Thermax, an Indian engineering company, reported on Thursday a profit that was higher than expected for the quarter ending June. This was boosted by a robust order increase and lower costs of raw materials and components. According to LSEG, the net profit for the quarter ending June 30 was 1.52 billion rupees (17.4 million dollars), up 32% on an annual basis. This beat analysts' expectations of 1.34 billion rupees. The total revenue fell by 1.6%, to 21.5 billion rupees. This was partly due to customer delays and execution issues. The cost of raw materials fell by 11.4%, which helped boost profitability. Bookings rose 7%, to 27,48 billion rupees. The company provides boilers and chillers, as well as water treatment and pollution controls infrastructure. The sector leader and bigger rival Larsen & Toubro posted a 30 percent increase in consolidated profits after taxes on Tuesday. India's clean energy and industrial engineering sector benefits from a growing government investment, infrastructure development, and a demand for green technologies. Analysts said that firms such as Thermax and L&T are benefiting from this trend, despite input cost volatility and supply snags. Thermax shares closed higher than 2.7% on Thursday, ahead of results. However, the stock has fallen 2.5% in the past year.
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After tariff shock, India's apparel and jewellery industries fear for US orders
Industry executives say that India's apparel exporters and jewellers are preparing for a decline in orders and the potential of job cuts after U.S. president Donald Trump announced on Friday a 25% tariff against Indian imports. They said that several garment exporters who had hoped to reach a bilateral deal with the United States and were prepared for an increase in orders from U.S. retail outlets such as Walmart and Costco have now stopped their expansion plans while they wait for the result of negotiations. Welspun Living and Gokaldas Exports are among the key garment exporters that make up to 70% of their sales in America. The higher tariffs may cause orders to be diverted to Vietnam which has a 20% lower U.S. duty. India's biggest market for clothing and jewellery is the United States, which will account for nearly $22 billion worth of exports by 2024. India holds a 5.8% market share in the U.S. clothing market, trailing only China, Vietnam, and Bangladesh. "We were preparing for expansion and expecting 10%-15% of tariffs under the U.S. agreement," said Gautam Nir, director at Matrix Design and Industries Pvt Ltd., a subsidiary from India's biggest garment exporter Gokaldas Exports. Gokaldas U.S. customers include GAP and Walmart. Nair stated that Trump's announcement of tariffs was a surprise, and the 25% duty, if implemented, would severely impact India's exports. He added that India's clothing sector faces higher costs already than its leading competitors Bangladesh or Vietnam. "IMMENSE PRESSURE" In Tirupur a textile hub of southern India, exporters are relying on bilateral trade agreements to end the uncertainty. Both countries continue to hold talks in an effort to reach an agreement. Cotton Blossom India's Naveen Michael, who is the executive director, said that if U.S. businesses decline, factories would start stealing each other's clients. Cotton Blossom India supplies Walmart and Bass Pro Shops. India's jewellery and gems sector is also under pressure, as it relies heavily on U.S. customers. The 2024/25 fiscal-year saw the lowest exports of polished and cut diamonds in almost two decades due to weak demand from China and the United States. Nearly a third of India's annual gem and jewellery exports to the U.S. totals $28.5 billion. Kirit Bhansali is the chair of the Gem & Jewellery Export Promotion Council. Exporters urge the government to restore stability in the U.S. before September so that they can ramp up their seasonal production. Without a deal on trade, the exports of jewellery in Surat, India’s diamond polishing hub, will not recover. We'll have to reduce production and job numbers.
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US futures gain on earnings, but yen reverts post-BOJ gains
U.S. Futures outperformed other markets on Thursday as traders considered a range of economic indicators, including central bank rate decisions and inflation data, in addition to last-minute talks about a trade agreement ahead of U.S. president Donald Trump's deadline of August 1. Next, we will look at the U.S. PCE Inflation data, which is the Federal Reserve's preferred measure. This data will be analyzed for any signs of Trump's policy on inflation. Jerome Powell, the Fed's chair, said that it would be necessary to wait until more data is available before making any further moves. Further information Trump's criticism on Thursday. U.S. stock futures traded sharply higher on Thursday ahead of this data, helped by Microsoft's and Meta Platforms' better-than expected results after the bell Wednesday. Dan Coatsworth is an investment analyst with AJ Bell. He said that Microsoft and Meta have achieved earnings that most companies only dream about. "They have smashed the market expectations by a mile and made investors scream in joy." Nasdaq Futures rose 1.25% and S&P500 futures increased by 0.9%. In Europe, earnings were also a focus. The region's banks rose by 0.75% after positive results came from France's Societe-Generale. Defence names rose by 2.9% due to a surge at Rolls-Royce. However, the broad Stoxx 600 benchmark was flat. Miners were weighed down after U.S. Comex September copper futures fell 22% to $4.37 per lb. This was the largest fall in history after Trump announced that the U.S. will impose a tariff of 50% on copper wire and pipes, but this did not meet expectations of broad restrictions. Chinese stocks have also fallen after official PMI gauges revealed weaker economic activity than expected in July. China's blue-chip CSI 300 index ended 1.8% down, its largest single day decline since April 7. Hong Kong's stock index also closed 1.6% down. BOJ FOCUS In Asia, the Bank of Japan had a lot to digest earlier in the day. It held its interest rates at the same level and raised its inflation forecast. This was accompanied by cautious optimism about Japan's economy. The yields on Japan's short-dated bonds rose at one time to their highest level since early April. However, they have now fallen back to the lowest levels seen since early April after the BOJ policy statement caused market participants to lower expectations of any future rate hikes. The Nikkei closed just under 1% higher. As traders reduced their bets about rate cuts by the European Central Bank, short-dated bond rates rose. Investors in Asia considered whether Trump's announcement of a 25% duty on India, made in the middle trade negotiations, should be taken serious. The benchmark Nifty 50 index in India is just barely in positive territory, after recovering earlier losses. The Korean won rose 0.3% following Trump's announcement that the U.S. will impose a 15% tariff for imports from South Korea. In return, South Korea would invest $350 billion into U.S. projects as well as purchase $100 billion of U.S. products in energy. The announcement is part of a series that was rushed to be made before the deadline of Friday, April 2, in order to avoid Trump's "Liberation Day", a tariff-blitz. Brent crude futures, which expire Thursday, fell 40 cents, to $72.86 per barrel. U.S. West Texas Intermediate Crude for September CLc1 dropped 33 cents to reach $69.66. On Wednesday, both benchmarks posted gains of 1%. (Reporting and additional reporting by Ankur B. Banerjee. Nell Mackenzie, Gregor Stuart Hunter. Jamie Freed and Mark Potter edited by Mark Heinrich.
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Exelon's profit beats expectations in the second quarter on higher rates
Exelon, a U.S. utility company, narrowly surpassed Wall Street expectations for its second-quarter profits on Thursday. This was largely due to higher rates of electric and gas distribution in PECO. Electric utilities are receiving massive requests for additional power as Big Tech searches the country for suitable locations for AI data centers. The U.S. Energy Information Administration predicts that domestic power consumption will reach new records in 2025-2026. The S&P Index tracking utilities increased 3.5% during the quarter ending June 30. Exelon's overall revenue for the second quarter was $5.43 billion. This compares to an average analyst estimate of $5.38billion, according LSEG data. The earnings at PECO, Pennsylvania's largest natural gas and electric energy company, increased by 51%, to $136 millions, in the quarter reported. The earnings of its Commonwealth Edison unit, the largest electric utility company in Illinois, dropped 15.6% to $228 millions. Exelon provides service to more than 10 million customers via six transmission and distribution utilities that are fully regulated. The company confirmed its adjusted full-year profit forecast for 2025 of $2.64 per share to $2.74. Analysts had expected $2.69 per stock. (Reporting by Pranav Mathur and Katha Kalia in Bengaluru; Editing by Shreya Biswas and Shailesh Kuber) (Reporting and editing by Shreya Biwas and Shailesh Kuber in Bengaluru, and Pranav Mathur in Bengaluru)
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China's iron ore exports continue to rise as storm clouds gather, Russell
Iron ore is the best performing commodity this year, with a price of over $100 per metric ton. This is despite signs that China's steel industry has been slowing down. The Singapore Exchange's most traded iron ore contract ended Wednesday at $101.71 per ton, down from $102.74 at its previous close. The rolling front-month contracts have traded within a narrow range this year. A high of $107.81 per ton was reached on February 12, and a low $93.35 per ton was achieved on July 1. This stability is due to the fact that China imports 75% of all seaborne volumes. China's imports in the first six months of this year were 592.2 millions tons, down by 3% compared to the same period last year. The June arrivals reached 105.95 millions tons, which is the highest level since December of last year. Kpler, a commodity analyst, estimates 101.32 millions tons for China's imports in July. Iron ore imports from China have been relatively resilient, and this has helped to keep prices around $100 so far in the year. Market participants are now asking themselves if they can maintain this level in light of the signals coming from other iron ore and metal sectors. China, which is responsible for producing just over half the world's total steel, saw its output fall 9.2% from June 2024 to 83.18 millions tons. The first half of 2025 saw a 3% decline in production, to 514.83 millions tons. The outlook for the second part of the year also isn't very rosy, especially if the annual steel production stays around the informal goal of 1 billion tonnes, as it has been for the last five years. China's output of steel is unlikely to grow in the second half this year compared to the first. It may even decline, particularly if exports fall as importers impose higher duties on Chinese products. EXPORTS SLIPPERY Exports of steel product fell 8.5% in June compared to May. However, a good start to the year saw shipments rise 9.2% to 58.15 millions tons. The second half of the year is likely to see a decline in China's exports, which will put further pressure on this sector. Iron ore is becoming increasingly unattractive as China struggles to stabilize its economy and manufacturers are faced with uncertainty due to U.S. Tariffs and fierce domestic competition. SteelHome consultants SteelHome monitor port stockpiles to see if there is any room for iron ore inventory to grow. The week ending July 25 saw a drop of 131.05 millions tons compared to 151.8 millions the previous week. Kpler data shows that iron ore imports outside China are also weak. They dropped to 136.56 millions tons in July, their lowest level since April. Kpler predicts that Europe's seaborne imports of iron ore will fall to 6,53 million tonnes in July, marking the third consecutive monthly decline. Japan is the second largest iron ore buyer in the world. Arrivals are expected to reach a record high of 7,73 million tons for July, a three-month-high. According to Kpler, South Korea is expected to import 4,71 million tons of soybeans in July. This is the lowest since February 2017. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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PBF Energy partially restarts Martinez refinery, posts smaller-than-expected quarterly loss
PBF Energy announced on Thursday that its Martinez refinery is partially operational. The remaining units will run at reduced capacity while repairs are completed. A full restart of all the remaining units is planned for the end of 2025. A fire had broken out at the 156,400-barrel-per-day (bpd) Martinez refinery on February 1, which had impacted operations. The company announced that the refinery had begun to produce limited quantities of jet fuel, gasoline and intermediates. PBF Energy anticipates that the total throughput will be between 85,000 and 105,000 bpd during the limited period of operations. The company also reported smaller-than-estimated loss for the second quarter, as margins recovered. The top U.S. refining companies were expected to report higher profits in the third quarter of this year, rebounding from losses the previous quarter as diesel margins increased earnings. Valero Energy and Phillips 66, two of the largest rivals in the US, exceeded Wall Street expectations on account of higher refining margins. PBF Energy’s consolidated gross refinery margin, excluding items of special interest, was $8.38 per barrel in the second quarter. This compares to $8.12 per barrel a year earlier. The company's crude and feedstocks output fell from 921 300 bpd to 839 100 bpd in the quarter reported, compared with 921 300 bpd one year ago. The current quarter is expected to have a total throughput between 865,000 and 915,000 BPD. PBF lost $1.03 on an adjusted basis per share in the second quarter. This compares to estimates of a loss of $1.10 per share. (Reporting by Arunima Kumar in Bengaluru; Editing by Shreya Biswas)
US reverses key climate findings, creating uncertainty for businesses
Lawyers and trade groups say that the Trump administration's plan to undo U.S. Climate Regulation is a way for them to save money, but this could backfire and force automakers, utilities and manufacturers to face a future filled with regulatory uncertainty and litigation risks.
The Republican administration of President Donald Trump announced Tuesday that it would rescind a long-held finding that greenhouse gases endanger the health of humans, thus removing the legal basis for U.S. regulations on greenhouse gas emissions.
Environmental Protection Agency Administrator Lee Zeldin stated that the move would save companies up to $52 billion on environmental compliance costs. The move would eliminate limits on greenhouse gases pollution from vehicle exhaust pipes, power plants and smokestacks.
Lawyers said that companies who have already made significant investments to reduce emissions in order to meet government standards, as well as the demands of many shareholders, worry the proposal could lead them into a regulatory and judicial void.
Meghan Greenfield, a partner at Jenner & Block, and former EPA Counsel, who represents clients in the auto sector, said: "Industries with GHG standards established by EPA are long-time compliers and do not want them stripped away." The stability of the regulatory framework is important to industry as a base.
Zach Pilchen said that if the endangerment determination is repealed, companies will be required to adhere to a patchwork state law on climate change, rather than a single federal standard.
Camille Pannu is an associate professor of law at Columbia University. She said, "I believe that the administration has overlooked the fact that most industries have already retrofitted themselves for regulation." "The industry did want deregulation but perhaps not through this mechanism."
Sources from the former Trump administration said that during Trump's first tenure, the EPA declined to accept the endangerment findings because of the strong opposition from the industry and the risk involved in undermining federal authorities on this matter.
Three sources within the auto industry privately stated that the EPA’s proposal to repeal vehicle efficiency standards was much broader than expected. The proposal also eliminates air conditioning standards and requirements for battery monitoring.
Albert Gore is the executive director of Zero Emission Transportation Association. He said that the EPA's action to reverse a long-established law comes at a time when "clean" vehicle sales are steadily increasing and driving a boom in U.S. battery manufacturing and vehicle manufacturing.
According to Environmental Defense Fund, over the past decade manufacturers have invested $197.6 Billion in U.S. EV manufacturing and battery production facilities.
Gore stated that "taking backward steps, adding regulatory uncertainty, will harm consumers, unsettle markets, and complicate business decisions for automakers."
LUKEWARM REACTION
The industry groups' reactions to the EPA announcement have been reserved, with most saying that they will review the proposal in the coming weeks and provide comments.
Edison Electric Institute (EII), the main lobbying group for the electric utility sector, has said that it supports the EPA in establishing clear, consistent regulations to encourage infrastructure and investment.
EEI spokesman Jeremy Ortiz said: "It's essential that EPA uses its authority to create flexible regulations that take into account impacts on reliability and customer costs."
Around a quarter (25%) of U.S. greenhouse gases are emitted by the power industry. Over the past decade, this sector has reduced its carbon emissions steadily by replacing coal-fired generation with natural gas and solar.
EEI had sided in favor of the EPA (then part of the former president Joe Biden administration) in a Supreme Court case from 2022 in which West Virginia questioned the agency's power to regulate power stations.
In its brief, it stated that "Violating this authority could upset that predictability and consistency and potentially expose individual GHG emitters the idiosyncratic wishes of individual district courts judges."
The Alliance for Automotive Innovation is a group of auto industry professionals that welcomed the deregulation of tailpipes and said they were digesting a broader proposal for the repeal of the endangerment findings. Both the American Trucking Associations and the American Petroleum Institute praised the proposed repeal of vehicle exhaust rules.
The U.S. Chamber of Commerce also opposed repealing the law because of its effect on members.
Marty Durbin said Tuesday that the Chamber's Energy Institute, the Chamber's president, was reviewing the proposal and consulting with its members to provide constructive feedback.
(source: Reuters)