Latest News
-
Neste, a biofuel manufacturer, expects a limited impact of tariffs. However, the supply glut is still weighing on them.
Neste, a Finnish biofuel producer and oil refiner, expects U.S. Tariffs to have only a small direct impact on their business. However, they warned about the oversupply of renewable fuels and market volatility. Heikki malinen, Neste's Chief Executive Officer said that "we expect European policymakers will safeguard an equal playing field and the competitiveness of European Industrial Companies." The Finnish group warned that it would continue to face challenges in the future due to the excess supply of renewable fuels, the weak global economy and the low demand for these fuels. Neste, a company that has a joint-venture with Marathon Petroleum California, said the U.S. was still incredibly important to the business. Malinen stated that the removal of Blender's tax credit (BTC) led the company, however, to optimize its Singapore shipments. BTC was an initiative to provide clean fuel tax credit that the Biden administration proposed, but then scrapped. The company's comparable earnings before interest taxes, depreciation, and amortization (EBITDA), which were 210 million euro ($239.15 millions) a year ago, fell by 62%. Malinen described the performance as "unsatisfactory". According to a consensus provided by the company, analysts had predicted a median of 211.7 million euro. Neste's margin on renewable products fell to $310 a tonne during the quarter, down from $526 a tonne at the beginning of 2024. This was better than the average expectation of $250 per tonne. While the company still expects to see its margins improve by 2025, the company warned about the impact of oil price fluctuations amid geopolitical unrest. Before April is a month of celebrations. The group has reduced 510 positions worldwide, resulting in an annual saving of 65 million euros. Neste shares rose more than 10% at Helsinki's 0725 GMT. ($1 = 0.8781 euro) (Reporting and editing by Andrew Heavens; Kirsten Donovan, Kate Mayberry and Boleslaw LaSocki)
-
Dalian iron ore prices rise on strong Chinese demand
Dalian iron ore prices rose on Tuesday, supported in part by the near-term demand from China's top consumer, but gains were restricted by contradictory statements made by Washington and Beijing regarding trade negotiations. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 709 yuan (US$97.49). As of 0701 GMT, the benchmark May iron ore traded on Singapore Exchange fell 0.11% to $98,3 per ton. Mysteel, a consultancy, reported that the price of imported iron ore in China's port gained some ground on 28 April as downstream replenishing demands persist ahead of five-day Labour Day holidays. Everbright Futures, a broker, reported that hot metal production, which is typically used to gauge demand for iron ore, has increased from 2.4435 to 2.4435 millions tons in a month, an increase of 42,300 tonns. This represents 156,300 tonns year-onyear. ANZ reported that despite the uncertainty created by the U.S. trade war, the Chinese market is still under pressure to reduce its iron ore inventory. Donald Trump, the U.S. president, insisted that there had been progress made with China and that he had spoken to President Xi Jinping. Beijing denies that trade talks have taken place. A poll on Tuesday showed that China's factory activities likely decreased in April as Trump's "Liberation Day package" of tariffs put an abrupt halt to the two-month recovery. Fortescue, an Australian miner, reported higher third-quarter iron-ore shipments. Mysteel, in a separate statement, said that the total volume of iron-ore shipped from Australia and Brazil grew by 13.2% over the past week to 27.6 millions tons. Coking coal and coke, which are both steelmaking ingredients, were down by 2.36% and 1.02 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange were flat. Hot-rolled coils and rebar fell by around 1.26% and 1.2% respectively, while wire rod and stainless steel gained 0.4% and 0.16% respectively.
-
AstraZeneca may be subject to further import tax penalties from China
AstraZeneca said on Tuesday that it could face a fine up to $8,000,000 for suspected unpaid import tax in China. The drugmaker is working to boost its business in China, its second largest market, after scandals such as the arrest of the company's China president last summer. AstraZeneca, despite having a robust pipeline, is facing headwinds from its two largest markets: the United States and China. These include scandals in China and possible U.S. Tariffs on pharmaceuticals, as well as a trade conflict between Beijing and Washington. AstraZeneca reported that authorities in Shenzen had informed it that the unpaid amount suspected was $1.6 million. A fine between one and five times this amount could be imposed if found guilty. The company stated that "to the best AstraZeneca knows" the importation tax referred to in the opinion related to Enhertu, its breast cancer drug. AstraZeneca's core profit for the quarter ended March 31 was $2.49, beating analyst expectations. However, total revenue of $13.59bn missed analysts' estimates. In February, the company said that it could be fined up to $4.5million in China for suspected unpaid import duties, relating to cancer drugs Imfinzi, and Imjudo. It added that this probe could extend to Enhertu. AstraZeneca said on Tuesday that authorities had informed it that there was no "illegal profit" for AstraZeneca based on a separate allegation of personal information breach.
-
The SSAB steel company's operating profit plunged 57% due to weak market conditions
The weak market and lower prices in North America have impacted the operating profit of Swedish steelmaker SSAB by 57%. The operating profit fell to 1,35 billion Swedish crowns (140.29 millions) from 3,16 billion crowns in the quarter January-March, compared with 3.16 billion crowns one year ago. The European steel industry is now facing increased import duties from the United States, in addition to being under pressure by cheap Chinese steel and rising energy costs. SSAB which has steel businesses in both Europe and America, stated in a press release that the tariffs imposed by President Donald Trump on the United States did not affect its business in the last quarter. This is because it benefits from the fact that the production facilities are located near major customers in both Europe and the U.S. The company stated that the outlook for the steel divisions in the second quarter was "more uncertain than normal" due to the tariffs. This quarter, the specialized high-strength producer of steels expects its Special Steels Europe and Americas divisions will ship "somewhat more" than they did in the last. It warned that prices will vary between the three divisions - from "stable", for Special Steels, to "somewhat more" in Europe and "significantly more" in Americas. SSAB stated that raw material costs would be "stable" for Special Steels, European and Americas units. However, they will be "somewhat higher", in the Americas unit. $1 = 9.6232 Swedish Crowns (Reporting and editing by Rashmi D'Souza and Savio d'Souza in Gdansk)
-
Aluminum producer Norsk Hydro's core profit misses the forecast and cuts extrusions expectations
Norsk Hydro, a Norwegian aluminium manufacturer, reported a 76% increase in its first-quarter profit, mainly due to higher metal prices. It also reported that it had slightly missed estimates. However, the company cut its outlook for the extrusion segment because of weaker downstream demand. Due to increased uncertainty, the company has revised its 2025 adjusted annual earnings before interest taxes, depreciation, and amortization (EBITDA), from 4.5 to 5.5 billion Norwegian crowns to approximately 4.5 billion Norwegian Crowns ($433.97 millions). Hydro said that if the global metals research company CRU's demand growth forecasts are delayed further, Hydro estimates adjusted EBITDA to be between 3.5 billion and 4.0 billion Crowns. During the quarter of January-March, the downstream aluminium market faced headwinds due to weak demand in Europe and North America and reduced recycling margins. EBITDA adjusted rose from 5.41 billion crowns to 9.52 billion crowns between January and March, compared with 5.41 billion crowns the previous year. According to a consensus compiled by the company, analysts expected a core profit to be reported of 9.86 billion Crowns. The U.S. return to tariffs on aluminum has disrupted trade flows, pushed physical market prices to new highs and increased cost pressures. The new levies of 25% have made it more expensive to import foreign metal. As the U.S. is heavily dependent on imports - Canada alone supplies over two thirds of the country's aluminium - the new levies are making it more costly to bring in foreign material. Hydro CEO Eivind Kallevik stated in a press release that the conflict over trade is unlikely to have a direct impact on the company. "We closely monitor the situation and are ready to adapt to changes in the market, especially if reduced confidence among consumers leads to greater economic uncertainty." Barriers in the West, which have lifted regional premiums to curb low-cost competition and helped companies like Hydro to temporarily benefit from record-breaking aluminium production by Chinese smelters. Hydro stated that it was focused on optimizing the North American value chain and securing European access for its Norwegian operations. ($1 = 10.3693 Norwegian crowns)
-
Dollar steadies as US auto tariffs are lifted, but stocks fall
The dollar and stocks both edged up on Tuesday, as the Trump administration softened some tariffs in response to automakers' pressure. This comes ahead of an important week for economic data. Officials said that the U.S. will take steps to reduce the impact on domestically produced cars of foreign parts, and prevent tariffs on imported cars from piling up. The European and S&P500 futures both rose by 0.1%. However, the gains were not significant as China's levies remain high. The Asia session was slowed by a public holiday in Japan. However, the U.S. Dollar rose broadly, even against the Canadian dollar which fell a bit. Mark Carney's Liberals won Monday's elections in Canada, but they fell short of a majority government. The dollar is still struggling to recover from its recent losses, despite some rollbacks on Trump's tariffs. The euro is on track to have its biggest monthly gain against the dollar since nearly three years. Meanwhile, the greenback has seen the most significant drop in the Swiss franc in the past decade, with a 6.7% decline. The markets were affected overnight by the statement made by U.S. Treasury Sec. Scott Bessent to CNBC that it was up to China to "de-escalate" its tariffs. There are also growing concerns about permanent damage to supply chains if there is no breakthrough. China has made some concessions, but has not yet introduced any stimulus measures. They are hoping that Washington will blink first. Hong Kong's Hang Seng index rose 0.3% during afternoon trading, while the blue-chip index on mainland China fell 0.2%. J.P. Morgan analysts stated in a report that the first-quarter U.S. jobs and GDP figures for April are expected to be boosted by purchases made in advance to avoid new taxes. However, a decline in China shipments indicates a reckoning could be coming soon. The analysts warned that "the clock is ticking" on the hard data resilience. They highlighted a 42% drop in China's shipments to the U.S. from peak to trough in the last 10 days. This, if it continues, would have a ripple effect throughout supply chains. "A worrying decoupling between U.S. and China trade appears to be underway. We expect the damage will increase in coming weeks and month." In addition to the U.S., Europe will be reporting inflation data starting with Spain and Belgium on Tuesday. They will also report major corporate earnings. BP, Adidas Coca-Cola General Motors, Visa and Coca-Cola are all due to release their earnings reports on Tuesday, while Apple, Microsoft Amazon, Meta Platforms, and Meta Platforms will report at the end of this week. Gold fell 1%, to $3305 per ounce. Brent crude fell 1% to $65.21 per barrel. Treasuries were not traded in Asia, leaving benchmark 10-year yields unchanged at 4,206%. Futures prices remained largely stable.
-
Volvo Cars will cut costs by $1.9 billion as earnings fall
Volvo Cars, a Swedish automaker, announced cost reductions of 18 billion Swedish crowns (1.8 billion dollars) on Tuesday after its operating profit dropped sharply amid the difficult automotive market conditions. The operating profit of the company, owned by China's Geely in majority, was 1.9 billion Swedish Crowns from January to March, compared with 4.7 billion crowns the previous year. The company announced that the cost reductions, which are part of its new "cost-and-cash action plan", include layoffs, and a greater decrease in investment than previously expected. It also said it had withdrawn the financial guidance for the following two years. In recent months, the company's shares have fallen to record lows as it struggles with rising tariff pressures and the slowdown of electric vehicle demand. Volvo made an announcement in a first indication that it was taking action to remedy the situation. Unexpectedly, This month, CEO Jim Rowan was fired. Bring back Former CEO Hakan Samuelsson and, a few days later, also replacing Its CFO. Samuelsson, in a Tuesday statement, said that given the turmoil in the market we needed to improve our cash generation and reduce our costs. He added: "While there is still a lot of work to be done, we are focusing on three key areas going forward: profitability, electrification, and regionalisation." ($1 = 9,6177 Swedish Crowns) (Reporting and editing by Terje Solsvik, Marie Mannes)
-
Finland supports EU goal of reducing emissions by 90% by 2040
Finland's State Secretary for Climate said that the EU should aim to reduce net greenhouse gas emissions by 90% in the EU by 2040. This comes as the governments prepare for the next EU climate goal. The EU member states are waiting for a proposal by the European Commission on the bloc's climate goal 2040. The Commission was planning to propose a 90 percent reduction in net emissions last month. However, it delayed its proposal due to pushback from countries and legislators who are worried about the impact of the goal on struggling European industries. Mika Nykanen, in an interview about the 90% commitment that the EU's independent advisors had also recommended previously, said: "We think it is a good goal." "We need a solid, attractive investment environment in Europe. If we change our big targets or policies, this will create uncertainty for investors and businesses." The EU's environment ministers will meet in Warsaw, Poland on Tuesday. Although the 2040 goal is not part of the official agenda for their meeting, Ministers are expected discuss it informally. Italy, Denmark, the Netherlands, and Slovenia are among the governments that oppose the 90% goal. As a result of the opposition, the Commission has begun to look at ways that it can soften its 90% target, as previously reported. This includes counting international carbon credits toward the target. This could weaken efforts to reduce CO2 from domestic industries. The new German government backed this idea in a statement made earlier this month. However, it said that credits should only cover three percentage points towards the 90% target. A government source stated that France would be interested in the idea, provided there were safeguards to guarantee any international carbon credit delivered real emission reductions in other nations. Nykanen stated that Finland had not suggested such flexibility, but he could understand the concerns of the poorer EU nations or those who are struggling to switch over to cleaner energy about their contribution at the national level to the EU's goal. He said that there would be "difficult negotiations" on how to divide this share. Every country is concerned and has fears. Wopke hoekstra, the EU's climate commissioner, has stated that he will now propose the climate target for 2040 before summer. The EU has already made a legally-binding commitment to reduce its net greenhouse gas emission by 55% from 1990 levels by 2030 and eliminate them by the year 2050. (Reporting and editing by Lincoln Feast; Additional reporting by Anne Kauranen)
Australian young voters put aside their disillusionment in order to keep right-wingers out
Jessica Louise Smith, a student at an Australian university, says she'll vote in the general election on Saturday with one goal: to avoid the "worst" possible outcome of a conservative government.
After seeing Donald Trump's disruption in the United States, the 19-year old said that the prospect of the conservative opposition leader Peter Dutton becoming the next Prime Minister was "very scary".
She said, "I don't feel as if I am as focused on genuine politics in Australia than I am just avoiding the worst option."
Smith will cast his vote at an election on 3 May alongside millions of Millennials, Generation Z and other voters. These four groups make up almost half of the 18 million Australians who are enrolled in Australia's compulsory voting system. They outnumber the influential Baby Boomer group.
Social media, podcasts, and memes have been used by the Liberal-National Coalition and Anthony Albanese’s Labor Party to announce housing and student loan policies.
Young voters who grew up in a world of global pandemics, economic turmoil and climate crises, expressed their disillusionment and dissatisfaction with the inaction by both major parties on issues that directly affected them.
Darcy Palmer (18) said that many people of his age feel compelled to support Labor "just to make sure Dutton does not get in", even though Australia has preferential voting, which allows voters to rank the choices.
According to a recent survey by political consultancy Redbridge Group, Labor has a 60% lead over the conservative Liberal Party among Millennials.
Kos Samaras, Redbridge's director of communications and marketing, said that this group is also the most likely to "give their first preference to minor parties or independents" in a Financial Review op-ed.
Jasmine Al-Rawi is an architecture student who has recently become a citizen after moving from New Zealand. She would like to see the climate change and pressures on cost of living addressed more.
The 22-year old said, "Both major political parties have ruled for the wealthy. I don't think that the Labor Party has done anything for ordinary people ever since they were elected."
"I don't think the Labor Party is any better than Peter Dutton, but I also think that there are no positive arguments for them."
According to the Australian Election Study, the trend of two major parties losing their support among younger voters has increased in recent years.
During Australia’s last election, in 2022 26% of Gen Z voters and 18% Millennials voted Greens. The party is focused on the environment. The study found that support for major parties, and in particular the conservative coalition, fell to its lowest level ever.
Ava Cavalerie Johnson (18) said that she hoped the youth vote would shift Australia's Parliament further to the left, but warned against generalising the group.
There are still many conservative political beliefs. She said: "I think there will be more of a shift to the left but not a complete one." (Reporting and editing by Cordelia Chen in Sydney, and Christine Hsu in Sydney)
(source: Reuters)