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Austria's OMV quarterly profits jump 65% due to price increases
Austrian oil and gas company OMV reported a record?quarterly profit on Friday, surpassing estimates. Price?hikes?across-the-board more than offset sales impact from the Middle East conflict. Oil companies have benefited as a result of the increased volatility in energy markets, as the U.S./Israeli conflict against Iran has caused sharp fluctuations in crude oil and gas prices. OMV's operating profits jumped by 65% year-on-year, to EUR1.71bn ($1.97bn), exceeding analysts' expectations. The company has confirmed that it expects the Brent price to range between $85-$95 per barrel for the entire year, "subject to the resumption of shipping through the Strait of Hormuz". Brent futures were $87.43 per barrel on Friday. Early?July saw the company report an average crude price of $97.80 per barrel for the period April to June, up more than 50% from the last quarter of the previous year. The chemicals division of the Vienna-based company beat analyst expectations by reporting an operating profit adjusted to EUR429m, which is more than twice what it was a year earlier and 22% above analyst estimates from Vara Research. The company attributes the increase to higher prices of olefins, polyolefins, and a larger contribution from its Borouge stake. Chemicals are used in gas and water pipes, auto parts, medical syringes and other products. Morgan Stanley analysts see OMV entering into a "cyclical phase" after the creation of Borouge International in the first half of this year, and the incoming CEO Emma Delaney's taking over the reins starting September. Management can then refocus their strategy to areas like?adding to the company’s?upstream?portfolio. Petrom, OMV’s Romanian listed?subsidiary, reported an operating result slightly better than expected, beating the consensus by about 2%. This was boosted by higher gas and oil prices.
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Couche-Tard buys Poland's Zabka in largest-ever deal for $8.7 billion
Alimentation Couche-Tard, a Canadian retailer, announced on Friday that it plans to 'buy' Poland's Zabka at a cost of 'about $8.7billion. This will be its largest acquisition. It will also expand its presence in Central & Eastern Europe. Last year the company abandoned a bid worth $46billion for Japan's Seven & I. Couche-Tard announced that it has secured commitments from investors including CVC Capital and Partners Group, to tender their shares. This gives it the backing of investors who represent about 57% Zabka's capital. The company has launched a voluntary tender offer for 32 zlotys a share. This is a premium by about 9.4% over?Zabka?s previous closing price. It values the Polish convenience store operator at about 32.6 billion Zlotys (8.72 billion $). In a statement released jointly, Couche-Tard stated that the acquisition would create a significant platform for Central and Eastern Europe. It also identified annual synergies in excess of $250 million over the next three years. The transaction is expected to be completed by December 2026. Couche-Tard said it would delist Zabka once it acquired at least 95% shares of the company. The purchase follows Couche-Tard’s unsuccessful pursuit of 7-Eleven owners Seven & I. Last year, the Canadian retailer gave up on that pursuit after claiming that the Japanese group failed to engage constructively in a takeover offer. Seven & I also explored the possibility of acquiring a share in Zabka this month, but failed to reach an agreement over terms. Zabka operates approximately?13,000 shops across Poland and Romania.
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Former AC Milan and Italy defender Baresi died at age 66
Franco Baresi was a former AC Milan and Italy defender who died on Friday at the age 66. He is regarded as one of "the most recognisable" players from the "golden era" of Italian football in the 1980s and 90s. The entire 'history' of AC Milan has been shattered by Franco Baresi's death. "His example and integrity will forever be etched in the Club's DNA just like his iconic number six shirt," the club stated on social media site X. Baresi’s former club where he was honorary vice-president said last year that he underwent surgery to remove a nodule from the lungs and had been prescribed recovery treatment by an oncologist. Baresi appeared alongside Giuseppe Bergomi (former Inter Milan and Italy defender) at the opening ceremony of the Milano Cortina Winter Games in February. Baresi, who spent the entirety of his 20-year career at AC Milan, is considered an icon. He won six Serie 'A titles, three European top trophies and captained the team for fifteen seasons before retiring in 1997. Milan retired the number six shirt at the end of his playing career. He was the first player to do so in the history of the club. Part of 'The Invincibles' Baresi played in the Italy team that won the World Cup in 1982 and led the team into the final of the 1994 World Cup, where they lost to Brazil on a razor-thin margin after a penalty shootout. Baresi, however, was not among the players to score. After a knee operation, he famously played the entire 120 minutes of football just 25 days later. He was loyal to Milan from the beginning of his career. In the early 1980s, he stayed at the club despite two relegations to Serie B and helped them return to the 'top flight. Baresi, the captain of the Serie A club and the Italian national team for 81 years, was the cornerstone for Milan's defences during this period. Baresi re-defined the sweeper position in an era that was dominated by physical defenders. He combined defensive authority with his ability to launch attacks deep. He was the captain of a celebrated Milan defence featuring Paolo Maldini and Alessandro 'Costacurta. Mauro Tassotti also played in the backline. The high defensive line, offside trap and the offside trap were the foundations for the club's 58 match unbeaten streak in Serie A, earning Fabio Capello’s side the nickname “Gli Invincibili” (The Invincibles).
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Clariant exceeds expectations for core profits driven by Care Chemicals unit
Clariant, a Swiss manufacturer of specialty chemicals, reported an adjusted core profit higher than expected in the second quarter. The company cited a'strong performance' from its Care Chemicals unit during a volatile business environment. Clariant's adjusted earnings, before interest, tax, depreciation, and amortization, rose 1.5% compared to a year earlier, reaching 171.1 million Swiss Francs ($211.99 millions). This was higher than the 152 million Swiss Francs forecast by analysts in a poll provided by the company. In a press release, CEO Conrad Keijzer stated that "the Middle East conflict is continuing to have a significant impact on our Catalysts business." Clariant had stated in May that conflict in the Middle East - a highly lucrative market for Clariant - weighed heavily on the demand for catalysts and increased production costs. The increased 'economic uncertainty' has also impacted the willingness of customers to invest in chemicals around the world. Clariant has raised its target for cost-cutting, now aiming to achieve an annual "savings" run-rate of $100 million instead of the 80 million previously announced. Clariant expects to achieve savings of 90?francs before the end of 2026 after booking 24?million francs as'second-quarter restructuring charges. The company achieved its sales targets and profit margin for the entire year.
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Holcim upgrades full-year guidance after Q2 profit beat
Holcim's?second-quarter sales and earnings were better than expected on Friday, as the building materials manufacturer upgraded its outlook for the full year. The Swiss company reported that it was seeing an increase in demand for its low-carbon cement products and recycled demolition and construction materials. All of these factors boost profits. Holcim also saw a rise in sales in Germany and Switzerland as well as in Spain, Eastern Europe and Mexico. Demand for housing and infrastructure in Mexico, Peru, and Central America was also strong. Holcim's sales grew 6.4% in the second quarter to $4.41 billion Swiss Francs ($5.46 billion), exceeding expectations of 4.27 billion Swiss Francs, according to a consensus within the company. Recurring Operating Profit (EBIT), which is a measure of recurring profit, rose by 13.1% to 1.01 billion Francs. This was higher than the forecasted 958 million Francs. In a press release, CEO Miljan Gutovic said that "building?on our results?and on our resilient and proven model across all economic and market conditions we upgraded our guidance for the full year 2026." Holcim is a manufacturer of cement, roofing and walling products. It now expects to achieve a 5% growth in organic sales by 2026. This will be adjusted for currency effects and acquisition effects. It expects its recurring EBIT to increase by 10 percent over its previous guidance, which was for an increase between 8% and 10%. The results were in contrast to those of rival Heidelberg Materials, who on Thursday cut its profit forecast for 2026, citing inflation and high financing costs as factors that would continue to impact global residential construction. Energy costs are also a major factor. $1 = 0.8070 Swiss Francs (Reporting and Editing by Miranda Murray, Mrigank Dhaniwala).
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Gold on the verge of ending a four-month losing streak
Investors weighed Middle East developments and their impact on U.S. interest rate outlook as they weighed the gold price on Friday. As of 0504 GMT spot gold dropped 0.5%, to $4,076.53 an ounce. However, it was on track for a 0.7% weekly increase. Prices rose by about 1.8% in the last month. U.S. Gold Futures for August Delivery fell 0.5% to $4.079.60. "Gold has a slight negative bias today due to profit-taking, and a moderate bounce in the U.S. Dollar, after the metal's gains and the corresponding drop in the greenback yesterday," said Tim Waterer, chief analyst at KCM Trade. The dollar rose by 0.3% after a 2.4% drop on Thursday, its largest single-day decline since January 2023. The dollar is stronger, making dollar-denominated goods more expensive to overseas buyers. Gold has had a better month than usual. Waterer stated that the metal has found a sort of cushion around the $4,000 mark, which has drawn buyers during dips. Kevin Warsh, Fed Chair, gave no indication of the next move the central bank will make at its Wednesday policy meeting. According to CME Group’s FedWatch tool, the markets are pricing in a 63 percent chance of a September rate hike. Gold is often viewed as a hedge to inflation. However, higher interest rates can dampen its appeal because they increase the opportunity costs of holding this non-yielding asset. A drone strike in the Middle East that ignited fires on two vessels of gas in Egypt's Mediterranean Port of Damietta, has created a new danger for shipping through the Suez Canal. The canal is one of the few major export routes left to Saudi Arabian oil amid the growing U.S.Iran conflict. Analysts at BCA Research wrote in a report that "over the long term, the Hormuz Crisis will fade, but geopolitical... Spot silver dropped 0.5% to $58,70 an ounce. Palladium and platinum both fell by 0.2%, to $1.301.50. However, they are still on track for a gain in the month. (Reporting and editing by Mrigank Dahniwala in Bengaluru)
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Copper firms set to gain monthly profit on the back of soft dollar
The copper price rose on Friday, and was set to gain a month-long increase as the market absorbed a lower dollar and continued supply pressure. Benchmark three-month?copper?on London Metal Exchange?was flat at $13,804.5 per?metric?ton?by 0300 GMT and was on course for a 3.25 % gain for the entire month. The most traded copper contract at the Shanghai Futures Exchange increased 0.71%, to 105.510 yuan (15,635.74) per ton. This is a 2.75 percent increase since the beginning of the month. Overnight, the?dollar fell making commodities cheaper for buyers who use other currencies. Copper prices have been supported by the falling stocks, concern about supply and a good demand from China this month. Stocks of red metal at LME-registered storage facilities On Thursday, there were 255.400 tons, down by?21.38% from July. Over 60% of remaining stocks are under?cancelled?warrants, which means they're?eligible for removal. Copper has been moving into the U.S., putting pressure on the stock market ahead of possible tariffs. The Chinese demand for copper was also boosted due to a shortage of scrap metal, which forced some scrap buyers to purchase refined metal. The Yangshan Copper Premium The gauge of the physical demand for metals was $112 per ton. This is down from the monthly high but still up by 57.75%. Aluminium slipped 0.03% on the LME, while the SHFE grew 0.21%. The metal was on course to finish the month higher but it remained below its May highs, after a short-lived Middle-East peace detente in June wiped out war risk premium. Stocks of light metals in LME registered warehouses The lowest levels in the last century. Nickel ticked up 0.12% and tin 0.42%. Nickel gained 0.45%, tin 1.72%, and lead fell 1.24%.
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Sources say that India's Adani Energy is planning to sell another tranche of shares by the beginning of next fiscal year.
Two sources familiar with the issue said that India's Adani Energy Solutions could launch a second share sale to institutional investors in early fiscal next year after raising 35?billion rupies (about $367m) this week. In the last eight-month period, companies belonging to Gautam Adani’s ports-to power conglomerate raised $4.75 billion through rights issues and QIPs to fund expansions and reduce debt. Adani 'Enterprises', the group flagship, raised $2.8 billion in a rights issue and $1.58 billion by way of a QIP. Adani Power, another group company, is planning to raise $1.57 billion through a QIP. This is the largest capital raise by the group since 2023, when a short-seller's allegations roiled the shares. Adani Energy Solutions shareholder approval has been granted to raise up to 100 billion rupees in shares through one or more tranches. Sources said that if the market conditions are still favorable, the company could opt to pay the remaining amount in the next tranche. One source said that after such a positive response, the company might tap into the QIP market again towards the end of the current financial year or the beginning of next fiscal year. India's fiscal years runs from April to March. Sources requested anonymity because they are not authorized to speak to the media. Adani Energy Solution did not respond to an email seeking a comment. According to a statement from the company, mutual funds and insurance companies bought the most shares of Adani Energy Solutions in the fund-raising this week. The firm received offers that were three times the target. The shares of this firm, the largest private power transmission company in India?, have increased by more than 60% in the first half of 2026.
Product streams at risk should Trump spark tit-for-tat trade war: Russell
Much of the dispute surrounding the ramifications of a possible 2nd U.S. presidential term for Republican Donald Trump has focused on what may take place to the U.S. and international economies.
Trump's plan to impose tariffs of 10% on virtually all imports into the United States, and as much as 50% on those from leading trading partner China, have actually raised the spectre of greater inflation and rates of interest, and a less competitive market.
However for products, the larger danger of a Trump return to the White House is the reaction the remainder of the world is likely to have to the imposition of U.S. trade tariffs.
Political leaders across the globe will be unable to sit idly by if Trump locations barriers on their exports to the United States.
Any unilateral action by Trump is hence most likely to be met by retaliation from U.S. trading partners, even if they are erstwhile political allies, such as countries in Europe and some in Asia, such as Japan, South Korea and even India.
If it's inescapable that U.S. trading partners react to Trump's proposed actions by putting tariffs on imports from the United States, the primary concern is then what type will they take?
While major U.S. exporting business such as plane maker Boeing will have cause for concern, a far easier target for retaliation is likely to be U.S. commodity exports.
The United States is the world's biggest exporter of liquefied natural gas (LNG), and ranks fourth globally for exports of petroleum and all grades of coal.
A major buyer of U.S. products is China. If Trump were to enforce tariffs of 50% on its exports, Beijing could efficiently restriction all product imports from the United States, either formally or informally.
U.S. exports of crude oil to China were 10 million barrels in July, according to product analysts Kpler, and that figure is expected to rise to 16.58 million barrels in August, which would be the most because April 2023.
For the first eight months of this year U.S. unrefined exports to China are tracking at about 309,000 barrels daily (bpd),. which represents just about 3% of China's total imports, however. represent about 7.5% of total U.S. deliveries.
Simply put, it would likely be fairly easy for China to. stop buying U.S. crude and discover alternative providers, such as. Angola and Brazil.
But how simple would it be for U.S. oil manufacturers to change. the loss of Chinese purchasers?
Much will depend upon whether other countries place tariffs on. U.S. commodity exports.
Envision if the European Union, Japan and South Korea all put. a 10% tariff on U.S. crude in retaliation for Trump putting a. comparable impost on their exports to the United States.
The European Union, Japan and South Korea usually account. for about 60% of U.S. crude exports.
By putting tariffs on U.S. crude, LNG and coal, the rest of. the world could keep U.S. energy exports in the market, however. force U.S. companies to either deal discount rates to keep their. prices competitive or lower output.
United States LNG EXPOSED
U.S. LNG exporters might be more vulnerable than crude. producers, given they have no alternative markets aside from. exports.
For China, changing U.S. LNG would be more tough than. changing U.S. crude, but still most likely doable, provided the relatively. little proportion of U.S. LNG in its total imports.
In July, China's imports of U.S. LNG were 670,000 metric. tons, or about 10.5% of the monthly overall of 6.39 million.
For the United States, exports to China represent just about. 8% of its overall LNG shipments. However if Japan and South Korea are. added in too, then exports to the 3 main Asian buyers. increase to about a quarter of the total, based upon U.S. deliveries in. June of this year.
If tariffs were put on U.S. LNG by the North Asian. importers, it would put pressure on U.S. business to lower. costs to compensate.
U.S. coal exports have actually balanced about 7.5 million loads a. month for the first seven months of the year, however there is no. dominant buyer. Rather there is a broad range of importers that. all purchase reasonably small volumes.
This suggests that buyers of U.S. coal could probably find. alternative providers for the small volumes involved, but U.S. exporters may have a hard time to discover brand-new markets must a bulk of. its existing purchasers impose retaliatory tariffs.
In general, the photo that emerges is one of significant. vulnerability for U.S. energy exporters if we do see another. trade war, provided how countries might respond to the tariffs. presently being proposed by the previous president's camp.
Naturally, Trump still has to overcome most likely Democratic. prospect and existing vice president, Kamala Harris, in the. November election, and after that in fact follow through on what is. likely to be a widely-criticised trade policy.
However the risk stays significant. In 2022, Russia's invasion. of Ukraine showed us what can occur when a political occasion. roils energy markets.
If Trump is elected and does start a trade war, the. disruption may not be quite on that scale. However product flows -. and hence a large part of the global economy - might be affected. if the marketplace has to adjust to an unpredictable political dynamic. when again.
The opinions revealed here are those of the author, a columnist. .
(source: Reuters)