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Ampol shares reach a 2-year high after refining margins triple
Ampol, an Australian company, said that its Lytton refinery's margins more than tripled in the 2nd quarter. This was boosted by the surging oil prices linked to the Middle East war, which pushed the shares of the company to their highest levels in over two years. Ampol reported that the prolonged closure of Strait of Hormuz has tightened crude supply to Asian refiners. This has reduced refinery activity, and driven up refined fuel margins because of product shortages. Ampol stated that it was in a good position to handle any conflict as they had secured supplies for the majority of the quarter. The top fuel retailer in the country reported a 255% increase in its Lytton refinery margins for the second quarter, from $8.71 per barrel a year earlier to $30.93. The total volume of group sales fell from 6,304 million litres to 6,176 millions litres. Mark Elzayed said that the earnings strength was driven primarily by exceptional refining profit margins, rather than a broad-based growth in volume. Elzayed warned that a sustained easing of tensions in the Strait of Hormuz area could lower geopolitical risks and reduce refining margins to longer-term averages, posing a risk to Lytton’s refining earnings. The shares of the company rose 0.6% at 0418 GMT, after gaining as much as 3.4% in the previous session. Ampol announced that its Lytton Refinery will be closed between August and October to perform maintenance. It expects this to result in a reduction of annual production of about 300 million litres. The company will'manage reductions through its diversified sources of supply, import infrastructure and trading capabilities. Elzayed stated that the company's first-half earnings should be sufficient to allow it to fund the Lytton Refinery turnaround with internal cash flow. Fuel retailer reported that its first-half RCOP EBIT was A$1.35billion ($965m) on a non-audited basis. This is more than tripled from the year before.
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Asian stocks falter after a deep crash, and the Fed leaves markets in the dark about interest rates
Asian stocks were volatile on Thursday, after a week filled with?market turmoil sparked by AI fears. A divided Federal Reserve remained steadfast on interest rates and left the bond markets unsure of their next move. Brent 'futures' fell below $90 a barrel after a day of turbulence sparked by AI jitters. The Federal Reserve, divided, remained steadfast on rates and left bond markets uncertain about the next move. Investors were confused by the Fed's split decision on whether it would raise rates to combat inflation. The yields on U.S. Treasuries with longer maturities rose to their highest level in 19 years. Nasdaq Futures rose by 0.4%, while European Futures indicated a muted opening. Investors will focus on the Bank of England's policy announcement, which is expected to remain unchanged. MSCI's broadest Asia-Pacific share index outside Japan fell 0.6% last after swinging between gains and losses throughout the session. Japan's Nikkei index was up 0.24%, but is still on track for a weekly drop of 4%. Asian chipmakers were the focus of attention in the past week, after a brutal selloff on South Korean stocks wiped out more than $2 trillion from the market value. This heightened investor concern over the return on AI investments. Vasu Menon is the managing director for investment strategy at OCBC. He said that the markets will remain volatile in the short term due to the uncertainty surrounding U.S. policy and the steepening curve of Treasury yields. VOLATILE KOSPI - SHOWING NO SIGN OF EASING? The KOSPI fell 1% during choppy trades, and was on course for a weekly drop of 15%. This selloff prompted Finance Minister Koo Yon-cheol?to apologize for the introduction of single-stock leveraged exchange-traded funds, which led?authorities?to unveil measures to stabilize the market. Gina Kim is the portfolio manager of emerging market equity at Nordea Asset Management, Singapore. She said: "Given the fact that the fundamental thesis has not changed, it does seem like there's a panicky, irrational element to the current sales." Samsung Electronics, which posted a 250-fold increase in chip profits to ease some nervousness, said that it expects the chip shortages will worsen and continue into 2028. The earnings reports of Microsoft and Meta, two megacaps in the AI race, showed starkly different fortunes. Microsoft's shares rose after it assured investors that they would continue to generate cash until fiscal 2027, despite its heavy spending. Meta's share price fell, however, following a 91% decline in free cash flow for the second quarter. The earnings from Apple and Amazon on Thursday will give more clarity about the sustainability of the AI market. FED LOOK TO MARKETS AS CUES Kevin Warsh, Fed chair, spoke at a media conference after the meeting. He promised to control inflation. However, he did not give any indications of what steps the central banks might take. Warsh pointed out that bond yields have risen significantly since the Fed’s last policy meeting. This reflects market expectations for higher interest rates. He welcomed the move while stressing it didn't oblige the Fed to confirm those expectations through policy actions. Blerina Uruci, T. Rowe Price's chief U.S. economics officer said: "To me, this is a sign that the market has already done the Fed’s job." Warsh's hawkish tones?will ultimately not be enough?to ensure price stability. The market will soon learn that Warsh, the FOMC and their lack of forward guidance will not deliver a policy outcome simply because the market priced it. The confusion caused the yields of 30-year U.S. Bonds to fall from their peak in June 2007 (5.2273%) late in New York Trading. Fed funds futures now indicate that there is a 60% probability the Fed will?raise rates at its September meeting and have 33 basis points of tightening already priced in. Kerry Craig, global asset manager at J.P. Morgan Asset Management and J.P. Morgan Asset Management's strategist for global markets, said that the Fed will continue to be questioned about its credibility. The gap between the Fed’s words and actions could pose a problem for market pricing. A new chair is faced with a divided committee, and a bond markets that are beginning to doubt the central bank's determination. (Reporting and editing by Ankur Banerjee, Rae Wee and Lincoln Feast in Singapore.
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Wall Street Journal, July 30,
These are the most popular stories in the Wall Street Journal. The?Wall Street Journal has not?verified these stories or?cannot vouch?for?their accuracy. American?forces?launched strikes against Iran Wednesday night in response to Iran's missile attack on U.S. troops in Jordan. The Pentagon has allocated a total of?more that $120 billion to contractors for the production of Patriot missiles and submarines. Lockheed Martin's contract with Patriot is now worth nearly $59 billion. The Energy Department’s Paducah facility in western Kentucky will be home to a?$100 billion AI data center. Grant Thornton Advisors, a provider of tax and advisory services, has agreed to take CBIZ private for more than $3 billion in cash. -Johnson & Johnson has reached a strategic deal with Sail Biomedicines in order to advance 'its immune-mediated diseases program. They were granted a 'exclusive?option to purchase Sail for $2.58billion. The Justice Department filed a lawsuit against a U.S. judge, Zahid Quraishi, to force the state of New Jersey to release its voter lists without redactions. Starbucks is accelerating U.S. service times by increasing cafe 'labor' and using an algorithm for calculating?orders. U.S. store staffing levels are nearly 100%, with 98% of the scheduled shifts being filled. (Compiled by Bengaluru Newsroom)
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ArcelorMittal's earnings are up as European safeguards pay off
?ArcelorMittal, the world's second-largest steelmaker, reported slightly stronger-than-expected ?core earnings on ?Thursday, ?saying its European ?business is gathering momentum thanks to the EU's safeguards. The Luxembourg-based firm posted core earnings for the second quarter of $2,06 billion. This was higher than the $2.01billion expected by analysts surveyed by?LSEG. Steelmakers in Europe have recently benefitted from a recent protectionist drive. The EU is trying to protect their local production from cheaper Asian imports by imposing a carbon tax on imports that are high-emission. The company believes that the new safeguards are going to support a higher capacity utilization in Europe and restore profitability. Aditya Mittal, CEO of the company, said that the company expects to see higher shipments both in the third quarter and second half of the year. ArcelorMittal reported that it had increased its 'crude steel production' in Europe by about 11% in comparison to the first quarter. This was mainly due to the re-starting of production facilities in Spain and the restarting of a blast furnace in Poland in response the improving demand. Reporting by Javi Larranaga, Gdansk; editing by Milla Nissi-Prussak
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Heidelberg Materials lowers profit forecast due to higher energy costs
Heidelberg Materials said that it expects the war in Iran to further increase energy costs for this year. The German cement manufacturer also lowered its profit forecasts for 2026. The group stated that inflation and high financing costs would continue to have a negative impact on global residential construction. High energy costs were also cited as a major factor. Even though CEO Dominik von Achten highlighted "a?environment which remains geopolitically & economically'very challenging", he said that there were still first signs of a visible demand recovery in the core markets. Heidelberg Materials expects to see its operating profit drop from EUR3.40 to EUR3.65 billion (USD3.89 to $4.18) to EUR3,40 to EUR3.65 billion. This is a decrease from the previous range between EUR3.40 and EUR3.75 billion. According to an?evaluation provided by the company the operating profit of the group is expected to be EUR3.51 billion. This would represent a 4% growth year-on-year. $1 = 0.8733 Euros (Reporting and Editing by Ludwig Burger).
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Gold falls as Treasury yields rise and offset the focus on Warsh’s inflation message
Gold prices fell on Thursday due to higher U.S. Treasury yields. Markets also assessed Kevin Warsh's comments on the Federal Reserve's efforts to combat inflation following its decision this week not change interest rates. As of 0445 GMT spot gold was down by 0.4%, at $4,048.39 an ounce. It had risen as high as 2% the previous session. U.S. Gold futures for August delivery rose 0.3% to $4.045.70. The yields on the benchmark U.S. Treasury 10-year note increased, increasing 'the opportunity cost' of holding gold. Soni Kumari, an ANZ analyst, said that "yields are a product of rate expectations." If the market believes that inflation fears will lead to higher rates, then yields will rise. This will put pressure on gold. The Federal Reserve, divided on its policy direction, left interest rates unchanged Wednesday. Warsh reiterated the central bank's commitment?to?bringing inflation under?control. This uncertainty about the next move of the Federal Reserve has left markets in a state of uncertainty. Gold is seen as a hedge against inflation, but it loses appeal in an environment with high interest rates as a non yielding asset. According to CME Group’s FedWatch tool, the markets still price in a 65% probability of a rate increase in September. This is down from 81% just before?the policy announcement. Investors also await the U.S. The Personal Consumption Expenditure data (PCE), due at 1230 GMT. The U.S. conducted fresh strikes on Iran's?geopolitical side? on Wednesday. The military said that the war, which has been raging for five months, was intensifying. It had already spread beyond its main fronts and into other countries in the area. Oil prices?lost some of their gains as oil tankers?continued their journey out of the Middle East on Thursday. Analysts at TD Securities wrote in a report that the yellow metal was likely to drift?back?towards $3,900 an ounce because oil is still?under pressure?to move even higher 'throughout the summer. Spot silver dropped 0.6%, to $57.30 an ounce. Platinum fell 1.1%, to $1.593.77. Palladium increased 0.6% to $1253.25.
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Morning bid Europe-Bond markets do the Fed's job
Ankur Banerjee gives a look at what the markets will be like in Europe and globally. A divided Federal Reserve and a confusing message by Chair Kevin 'Warsh about where rates are heading has left the bond market scratching their heads and'somehow in control, in an 'odd reversal which raises questions regarding the credibility of the central bank. As expected, the U.S. Central Bank did nothing, but three dissenters highlighted the growing divide between policymakers about the next steps to combat inflation, which remains above the Fed’s target of 2 percent. Warsh pledged to contain inflation, but did not give any indications of what steps the central banks might take. He noted that bond yields have risen significantly since the Fed’s last policy meeting and reflect market expectations for higher interest rates. He praised the rise in short-term bonds yields while stressing it didn't oblige the Fed with policy actions to validate these expectations. It is not good for a central bank to talk about its independence and then do nothing. Ed Yardeni, a Wall Street veteran, said that "talking hawkish and not acting in this way reduces the Fed’s credibility." "We conclude that in order to reduce long-term interest rates, the Fed must raise short-term rate." Bond investors changed the dynamic on Thursday as the Treasury curve steepened. The yield on inflation-sensitive U.S. 30-year bonds has reached its highest level in 19 years. Fears about the AI market kept sentiment fragile. However, the selloff on Friday was not as steep as it had been earlier in the week. The earnings from Microsoft and Samsung helped to'soothe nerves, but the?huge decline in Meta cash flows highlighted that these firms are struggling to make money on their massive investments. The Bank of England will announce its policy in the European 'hours. It is likely that the central bank will keep interest rates unchanged as it considers the impact of Iran 'war, which has shut the Strait of Hormuz since last May and increased inflation pressures. The following are the key developments that may influence markets on Thursday. Economic events: Bank of England decision on policy, Q2 GDP, and July sentiment data in the euro zone. July inflation for Germany. (By Ankur Bhanerjee, Singapore)
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Oil prices fall as markets watch for clues about Gulf supplies
The oil prices lost some of their gains on Thursday despite the escalating attacks across the Gulf. Investors' attention shifted to the supply flow through the major chokepoints within the region. Brent futures dropped 96 cents or 1.06% to $89.78 per barrel as of 0418 GMT. U.S. West Texas Intermediate (WTI), crude oil, fell 64 cents or 0.76% to $83.82 per barrel. Brent and WTI both rose by 6.56% during the previous session, one of the biggest spikes in the Iran War. This was after the pause of hostilities that occurred on Tuesday following a 5% drop. The prices of gasoline and diesel rose after U.S. president Donald Trump warned on Wednesday that he would hit Iran "very, very hard"? following an Iranian missile strike on Tuesday against a U.S. military base in Jordan. In retaliation to drone attacks launched by Iraq against?Saudi oil sites, the U.S., Saudi Arabia and other countries attacked paramilitary groups in Iraq backed by Iran. This was the first time Saudi Arabia had publicly joined U.S. aerial strikes. U.S. Central Command reported that the U.S. carried out attacks against Iran for two hours on Wednesday. This?ended the lull of U.S. attacks on Iran which began at the weekend. "Trump's hit hard' rhetoric caused the price spike instantly but it looks like the market has fully priced in (that) and is considering the TACO possibility right now," Lin Ye, vice-president of commodity markets for oil at Rystad, said. She was referring to Trump Always Chickens out. Ye said that the market follows a pattern. Geopolitical headlines trigger rapid price spikes. However, these gains are usually short-lived because actual supply flows and simultaneous diplomatic efforts determine how long they persist. The price of crude oil is being controlled as it continues to flow from the Gulf region, despite the Strait of Hormuz almost shutting down. Iran shut down the waterway - through which a fifth or more of the global oil and natural gas flowed before - after the U.S. vs. Israel 'war' began on February 28. Rystad Energy estimates that about 13 million barrels of oil per day from the Gulf still reach markets. Even after the Iran-aligned Houthis of?Yemen imposed a Naval Blockade on Saudi Arabia on the Red Sea, July?20 disrupting shipping through the Bab el-Mandeb strait. Some cargoes have still flown to the markets, especially on tankers connected with China. While overall volumes have been reduced, oil continues to leak out through a variety of channels. Additional workarounds are also being explored. In a note, IG analyst Tony Sycamore stated that the 'longer this situation continues, the more these alternate routes and methods will erode Iran’s leverage over Strait of Hormuz. Reporting by Mohi N. Narayan and Colleen H. Howe, Beijing. Editing by Lincoln Feast & Christian Schmollinger.
Inuit pride fuels Greenland independence spirit after Trump interest
In a small workshop in Nuuk, the capital of Greenland, goldsmith Nadja Kreutzmann polishes stones and metals mined on this vast island rich in minerals. Her jewellery is decorated with Inuit symbols for life and survival. Indigenous identity in Greenland is resurging ahead of the March 11 general elections called by U.S. president Donald Trump after he said he wanted Greenland to be his.
Trump's interest in Greenland has shaken up the status quo. This, coupled with growing Inuit pride has led to some locals viewing the vote as an historic opportunity to free Greenland of Danish influence.
Greenland is an autonomous territory in the Kingdom of Denmark. It has only 57,000 inhabitants spread over an area three times larger than Texas. A referendum can be held to decide whether Greenland will become independent.
Greenland is dependent on Denmark for more than half of its budget. The main parties all support independence, but differ in how and when this could be achieved. Over the last month, new accusations of historical wrongdoings regarding the exploitation and exploitation of Greenland's mineral wealth have galvanized factions seeking a quicker track.
In the 1950s the Danish authorities began a program of forced relocation of Inuit into larger towns. This resulted in the marginalization of indigenous practices and languages, which accounted for almost 90% of population.
In recent years, the Inuit cultural revival in Greenland has exploded as awareness of colonial repression grows. A new embrace of traditional body and face tattoos is a visible demonstration.
"For many, many years it was an embarrassment for people to be Greenlandic. They would suppress their Greenlandic culture, and try to become more Danish, both in appearance and way of life," said Kreutzmann. Her European surname, Inuit lines tattooed on her arms, reflect her own mixed heritage.
"We were told we had to act more Danish and speak Danish if we wanted something," she said at Nuuk. There, wooden houses painted in primary colors contrast with the snow that covers the town, as well as the white-blue, icebergs floating in the bay.
Speaking Greenlandic and looking Greenlandic are now being celebrated, as is Greenland's rich cultural heritage. Kreutzmann has created earrings that look like the scales of capelin fish, which is a vital but small part of the Arctic eco-system and Inuit diet.
Greenland's own Prime minister and other institutions have been in place since 1979. However, strategic decisions like foreign affairs, monetary policies and defence are still under Danish control. The four-year term of the current parliament ends in April.
Political analysts say it's not clear if voters will support the left-wing coalition again. Election polls are few and far between. Greenland, on the other hand, is concerned about foreign interference. In response to Trump’s remarks, the government banned overseas donations in the campaign.
In order to write this article, I spoke with more than a dozen Greenlanders. All of them said that they were in favour of independence from Denmark and America.
Many wanted Greenland's foreign affairs to be decided by it, but warned against taking rash actions in light of Trump’s remarks. They feared that Greenland would become worse off if it sought independence too soon from Copenhagen. Independence for Greenland would allow for greater U.S. influence on the island, which is seen as crucial for U.S. national security. This comes at a time where the Arctic region, dominated by Russia and China, has become a geopolitical hotspot.
Trump cites China's and Russia's Arctic presence as reasons for his interest Greenland. The United States had previously offered to purchase Greenland from Denmark for $100 million in 1946 after World War Two. Recent polls showed that nearly half of Greenlanders viewed Trump's interest in Greenland as a threat.
Kim Kleist Eriksen is an artist that carves walrus bones and tusks into intricate sculptures based on traditional Greenlandic stories and symbols. He said Trump's proposal had attracted positive attention, but he was still offended by it.
"At first I thought it was just a joke. But he was serious. Eriksen's 40-year-old work is sold both locally and internationally. "I was disgusted."
Eriksen wants to preserve a Greenlandic tradition, when hunters would use walrus tusks or bones to create hunting tools, amulets or toys.
Eriksen said, "I can create art from the stories I heard as a kid and turn them into carvings." It helps me to understand myself and my culture better.
MISSIONARY KING
Qupanuk Olsen is one person who hopes to capitalize on Trump's interests. He's a mining engineer and social media influencer turned candidate for Naleraq. Naleraq is the main pro-independence party in Greenland, and the largest opposition force currently in the Inatsisartut Parliament.
Olsen said that after Trump's remarks, she found her calling in politics.
She said, "Every Greenlander needs to now have an opinion." "We have to decide if we want to remain under Denmark or become independent.
Olsen spoke with Greenlanders by Nuuk’s colonial harbour. The scene included a wooden church painted red and a statue of Hans Egede. Hans Egede was a missionary who had been sent by the Danish King in the 18th Century. He is a symbol of colonialism and the loss of Inuit values for many Greenlanders.
"I believe that the statue will disappear in the near future, and be replaced by either a Greenlander or Inuit myth representing our culture or identity," said Olsen. He gave up Christianity for Inuit religious practices.
Her party is of the opinion that U.S. interests strengthen Greenland's negotiating position with Denmark in regards to secession. The party wants to put a deal reached with Copenhagen up for a vote in the four-year period before the next elections. Three candidates said they wanted an agreement on defence with the United States.
Liv Aurora Jensen was a more cautious candidate. She is a member of the Inuit Ataqatigiit, a party that governs on the left.
"We must choose wisely because we want to remain a part Denmark and work towards our independence. Jensen added that we must also work with our neighbours Canada and the United States.
United Airlines will begin direct flights to Nuuk from New York in June.
Trump mentioned Greenland again on Tuesday. He promised mutual prosperity, and struck a more conciliatory note than his previous comments which refused to rule out a military action in order to acquire the island. "We support your right of choice and if that is what you want, we will welcome you to the United States of America," he told the U.S. Congress during a speech.
HISTORICAL MISCONDUCT The relationship between Greenland, Denmark and Greenland has been strained in the last decade due to revelations about historical misconduct committed by Danish authorities. This includes removal of Inuit girls and women from their families as well as forced contraception.
In a documentary that was released in February, it was alleged the Danish government and companies made money from a large mine of cryolite in Greenland in the period 1853 to 1987 without any benefit for locals. The mine produced the rare mineral cryolite, which is used to produce aluminium.
In response to an email question, the Danish Finance Ministry stated that Denmark would examine the profit claims made in the movie as part of a historical investigation into relations with Greenland. The ministry stated that it did not revise the numbers in the film.
Greenland's Prime Minister Mute Ede said at the premiere of the film that it challenged the idea that Denmark was a "good colonizer" or that Greenland deserved to be grateful for money received from Copenhagen.
He said, "The Danes must look themselves straight in the face."
Local media and social media have been dominated by discussions about Denmark since the screening.
It definitely helps us towards independence, because Greenlanders now are more frustrated. The film has made them realize we're worth more than they thought.
The goldsmith Kreutzmann has used cryolite pieces in her work. They were collected by a friend on the abandoned mining site by the Danes.
"For those of us who live up here, nature has always represented a common resource, a shared asset. Kreutzmann explained that they were able "to go out, take what we need but not too much".
RARE EARTH
Greenland is a country that has a lot of deposits of rare earths, uranium and lithium. This is why global powers are interested in the island. It is largely covered by a huge ice sheet and has very few roads. The ruling party Inuit Ataqatigiit was re-elected in 2021 after promising to stop a mine project linked to China, which is one of the largest rare-earth deposits on the planet. This was due to concerns over uranium contamination of marine life, which is key to fishing - the mainstay of the country's economy and culture.
Kvanefjeld is still opposed by the party that supports mining and tourism in order to reduce Denmark's dependence and fishing. The project could be revived if the government changes at the next election.
A White House official was asked for comment and said that Greenland has "ample" rare earth minerals which will power the U.S.'s next generation economy.
Thomas Emanuel Dans was a U.S. Arctic Commissioner during Trump's initial presidency. He said that Greenland is at the heart of a geopolitical Arctic Game between China, Russia, and the United States because its raw materials are there and it's located in the Arctic.
We're beyond the point of oblique discussions and conversations about what needs to be done. "This is the time to act," Dans said.
"If they wish to achieve independence, this must be achieved within the framework of reality," stated Dans. It's about finding a new agreement. (Reporting from Jacob GronholtPedersen, Nuuk; Additional Reporting by Trevor Hunnicutt in Washington; Editing and rewriting by Frank Jack Daniel).
(source: Reuters)