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India's JSW Steel exceeds profit expectations for the first quarter as margins increase
India's JSW Steel announced a higher-than-expected increase in its first-quarter profits on Friday. Lower raw material costs, and firmer domestic prices of steel helped to boost margins. Its consolidated profit net more than doubled to 21,84 billion rupees (253.52 millions) for the quarter ended June 30. This is above analysts' estimates of 20,39 billion rupees. The domestic steel prices remain below the levels of a year ago, but have improved from quarter to quarter after a temporary safeguard duty of 12% was imposed by the government in April in order to stop a flood in cheap imports - primarily from China. Analysts expected that the move would lift local prices, and help margins in light of weak global demand. Iron ore and coal prices, which are essential raw materials to steel producers, have also fallen, helping boost profits. JSW's expenses totaled 403.25 billion rupees in 2013, a 3.3% drop. This was largely due to a decrease in the price of raw materials, which usually accounts for over half of JSW's expenses. The operating profit margins before interest, tax, depreciation, and amortization (EBITDA), which are the company's earnings before interest, tax, depreciation, and amortization, have improved from 12.83% to 17.56%. The company said that it also expects to spend 200 billion rupees on capital expenditures for the fiscal year 2026. JSW Steel's operating revenue remained largely flat at 431.47 bn rupees as lower steel prices year-on-year offset a 9% increase in sales volume. LSEG data shows that analysts had predicted a revenue of 425.07 bn rupees for the quarter. The first-quarter crude steel production of the company was 14% more than a year ago. JSW Steel shares closed at the same level as before the release of quarterly results. ($1 = 86.1475 Indian rupees) (Reporting by Anuran Sadhu in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair)
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Officials say Vale Indonesia will seek financing of up to $1.2 Billion in 2026-2027.
Andaru Adi, the head of corporate finances and investor relations at Vale Indonesia, announced on Friday that it plans to raise between $1 billion to $1.2 billion to fund its mines and smelters projects over the period 2026-2027. He said that the first round of funding, which is estimated to be around $500 million in the early part of 2026, would likely come in the form bank loans. The company could also tap the bond market by 2027. This external funding will go towards funding our projects. He told reporters that "we are now developing three mines...we also are building HPAL Smelters with partners." Vale Indonesia has begun developing nickel mines on the island of Sulawesi. Nickel, one of Indonesia’s most prized metals, is used in electric vehicle batteries. Andaru stated that the mine at Bahodopi would begin operations this year. The mine at Pomalaa, on the other hand, will start in 2019. It is also working on facilities to develop a process called high-pressure acid laaching (HPAL), in partnership with Ford, China's Zhejiang Cobalt, and GEM Battery Materials. (Reporting and writing by Fransiska Nanangoy, Editing by David Stanway; Stanley Widianto)
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South Korea is hit by torrential rain for the third consecutive day, and thousands of people seek shelter.
On Friday, heavy rains continued to pelt South Korea in a torrential downpour that killed at least four and forced thousands to flee their homes. Property and infrastructure were also damaged. The weather service warned of possible landslides, flooding and landslides in the western and southern parts of the country. The Interior and Safety Ministry reported that more than 5,000 people had been evacuated, but as of 11 am (0200 GMT) the number of people sheltering in the buildings was down to 3,297. The ministry reported that in the 24 hour period leading up to Friday morning, Gwangju and other southern areas received rain totaling more than 400 millimetres. The downpour that fell in Gwangju on Thursday was the most torrential rain to fall there for 86-years. The ministry reported that four people died and two others were missing in the recent rains. The ministry said that two people were trapped in their cars on flooded streets and another person died in a basement submerged in floodwater in central South Chungcheong Province. Fire agency officials reported that a driver died after a 10-metre high (33 ft.) roadside wall fell on top of his moving vehicle in Osan on Wednesday, about 44 kilometers (27 miles south of Seoul). The President Lee Jae Myung called for the government to play a greater role in disaster response and prevention. He said that although natural disasters can be difficult to predict, there are ways to prepare and alert the public. He said that he saw cases of casualties occurring because of a lackluster response to a situation when it was predictable.
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Japan's reality check on Couche-Tard’s grand retail dreams
Alimentation Couche-Tard, which owns Circle-K, pulled out of its $46 billion offer for Seven & i after a year-long pursuit. The Japanese consumers have emotional ties with the rice ball seller. After a year-long pursuit the Canadian company that owns Circle-K withdrew their bid after a "calculated campaign of obfuscation" and "delay" by Seven-Eleven and lack of engagement from its founding Ito Family. Couche-Tard announced the proposal for Seven & i in August of last year. Shareholders were pressing Seven & i to increase returns by selling assets and focusing its core convenience store business. Michael Causton, consultant at JapanConsuming, said that "ACT bid just at the right time...when Seven was at its lowest point." It was quickly raised whether fresh food sold by Seven-Eleven would be affected. The possibility of a takeover sparked concern about the operator's fresh food. The convenience stores in Japan are a valuable resource during natural disasters. However, the massive global presence of Seven-Eleven made it a target. Seven & i, in an attempt to avoid a hostile takeover, changed the category of national security it reported to "core" (essential) in September. This move raised questions about whether this was a defensive maneuver. Three sources with knowledge of the situation said that Seven & i stressed its importance in Japan's economic safety to the government. Seven & i refused to comment. Seven & i revealed plans to sell assets in the same month that Seven & i raised its proposal price. The Japanese company also announced plans for its North America division to be listed. Lorraine Tan, a Morningstar analyst, said that the incident had prompted management to be more proactive. The company expressed concern about regulatory hurdles in a possible deal. Travis Lundy is an analyst at Smartkarma who said that Couche-Tard wanted to work out all the details. Negotiations that are protracted Couche-Tard’s approach seemed to gain momentum when, in February, an attempt by Ito founder family to purchase Seven & i failed after they were unable to secure financing. After initially giving little explanation as to why the deal was pursued, Couche-Tard made a public push in March for the combination, highlighting its financial credentials. The Canadian retailer was facing growing challenges, including a lacklustre level of retail spending in the U.S. Its stock price dropped between the end last year and the close on Wednesday. Tatsunori Kawasi, Chief Strategist at Mitsubishi UFJ eSmart Securities, said: "Couche-Tard might have realised the costs cannot justify the risks including extended negotiations and uncertain prospects for business." After withdrawing the offer, its shares rose 8%. Takahiro Kasahaya is an analyst with UBS. He said, "Continuing further...would ultimately be a missed opportunity for its growth." Analysts also wonder how Seven & i - famed for their ready meals - will continue to grow. Natsuko Doug, an analyst with Macquarie Capital downgraded Seven & i from outperform to neutral on Thursday. She cited unclear benefits of the planned listing for the North America Business. In a letter, she said: "Full recuperation is still a long way off." Tom Leske of Churchill Capital said that the planned listing was "something they didn't really want to do, but were willing to do in order to get rid Couche-Tard." Seven & i has been a leader in the Japanese retail market for decades. This is a tough market that many foreign companies have struggled to enter. "Seven will give competitors a tough time when it gets its ducks in order," said JapanConsuming Causton. (Reporting from Anton Bridge, Makiko Yamzaki, Ritsuko Shiimizu, and Mariko Katsuura in Tokyo, and Scott Murdoch, in Sydney. Writing by Sam Nussey, Editing by Saad Saeed.
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Sources say that China quietly announces 2025 rare Earth quotas
Sources with knowledge of the issue said that China quietly announced its first 2025 quotas for rare earth mining and melting without the usual public announcement. This is another sign that Beijing tightens its control over this crucial sector. As a barometer of global supply, the quotas serve as a constant reminder of how much rare earths is available. Rare earths are a grouping of 17 elements that are used in electric cars, robots, and missiles. China is the largest producer in the world of these minerals. The government usually issues them twice a years to state-owned firms, but this year they were delayed. Sources said that the government only released the first set for the year last month without making the usual public announcement. One of the sources claimed the companies had been told to keep the numbers confidential for security purposes. This is the first time that these details have been reported. The sources did NOT give the quota volume. China has become more sensitive to rare earths, and is willing to assert its control of the supply in its trade talks with the U.S. Beijing added several elements and magnets related to them to its export restrictions list as a retaliation to the U.S. Tariff hikes. This cut off supply, forcing some automakers to temporarily shut down production. The Ministry of Industry and Information Technology of China issued its first set of quotas on its website in the first quarter of each year. The Ministry didn't immediately respond to a fax request for comment about why the information hadn't been made public. China released two mining quotas last year for 270 000 metric tons. The annual growth rate of the supply is expected to slow down to 5.9% in 2023 from 21.4%. In 2024, the smelting quota was divided into two lots, with a total of 254,000 tons. This is an increase of 4.2% over 2023. Beijing used the quotas, which were first introduced in 2006 and the consolidation of corporations to control the industry. Beijing has reduced the number of state-owned companies eligible for quotas. Last year, only China Rare Earth Group, and China Northern Rare Earth Group, High-Tech, were eligible, compared to six before. According to two sources with knowledge of the issue, the quotas have been delayed partly due to a proposal made in February that included imported ore as part of the quotas. This proposal sparked the opposition of companies who rely on imports, and were worried they might lose access to feedstock. Reporting by Staff; Editing by Lewis Jackson & Christian Schmollinger
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Private equity firm CAPZA purchases minority stake in DI Environnement
Private equity firm CAPZA announced on Friday it had agreed to purchase a minority share in DI Environnement. The French company specializes in environmental cleanup services, such as removing harmful material. Why it's important The acquisition of CAPZA highlights the potential for growth in the sector, as businesses strive to create buildings that are more energy efficient and governments work towards a cleaner environment. Precedence Research, a consultancy firm, predicts that global environmental consulting services will grow to $92,85 billion by 2034. This is up from $46,67 billion in 2025. KEY QUOTES "We're pleased to welcome CAPZA on board as our next chapter in growth begins. CAPZA will help us accelerate our growth and consolidate the market with its deep expertise and track record. Together, we're confident that our combined expertise will enable us to achieve sustainable growth and consolidate our position as France's leading player in depollution services," said DI Environnement Chief Executive Officer Hugo Rosati. By the Numbers DI Environnement generated revenues in 2024 of 110 million Euros ($128 million). CAPZA, which is a part of AXA IM Alts, has assets worth around 9,1 billion euros (10.6 billion dollars) according to its website.
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Reliance acquires Kelvinator, a home appliance maker from Sweden's Electrolux
Reliance Industries announced on Friday that its retail arm had purchased the Kelvinator Brand in India from Sweden’s Electrolux. The Mukesh Ambani led group is now a stronger player in the rapidly growing consumer durables market. Reliance Retail is expanding its private-label product portfolio, as well as its footprint, in the home appliances and electronics segment, which has seen a boom due to urbanisation and rising incomes. Reliance Digital operates stores that sell everything from washing machines to refrigerators and washing machines, as well as smartphones and laptops. Since 2019, the company has sold Kelvinator refrigerators, air conditioning units and washing machines under a licensing agreement with Electrolux. This is primarily done through smaller appliance retailers. In India, Kelvinator gained prominence during the 1970s and 1980s as its refrigerators marketed with the tagline "the Coolest One" became a symbol for aspirational life among the middle class. The brand suffered a loss of ground in the 1990s after global competitors began flooding the market, and consumer preferences started to shift. Electrolux, which did not reveal financial details about the deal, said that in its Friday quarterly earnings report it had booked a profit of 180 million Swedish crowns (about $18.5 million) on the sale of the brand. According to an EY report, India's consumer products market grew the fastest among major economies in June 2024 and could double to 3 trillion Rupees ($34.8billion) by 2029. Reliance Retail's initial public offering is not expected to happen before 2027 or even 2028, according to a report published earlier this month. Sources told the news agency in November that the company planned to solve operational issues before going public.
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Polish companies are worried about the worsening conditions in Q2 according to central bank
The central bank reported that Polish companies were concerned about the business environment in the second quarter. They cited the rising cost of raw materials and other supplies as the main obstacle to growth. In a Friday survey on the business climate in the quarter of April-June, the National Bank of Poland reported that the impact of these factors had clearly decreased, as well as the impact of other obstacles such as changing regulation, high taxes, fees and labour costs. The negative impact of low demand or declining demand has not changed. The central bank stated that uncertainty, partly related to geopolitical conditions, had become a major barrier. Companies reported that price pressures had significantly weakened, despite their concern about the overall outlook. The number of companies that raised their prices dropped, which resulted in the lowest price pressure index in five years. The report also showed that Polish companies reported a decrease in wage pressures. In fact, the percentage of firms reporting its intensification fell to the lowest since the end 2020. The report showed that both quarterly and annually, the number of companies who plan to continue existing investments has increased while the number of new investment initiators has decreased. The public sector showed a greater level of optimism about investment, while the private sector was slightly less optimistic. The central bank reported that "the plans of foreign firms were particularly pessimistic," with plans to decrease rather than increase investments in the next quarter. Reporting by Pawel Flikiewicz, Editing by Kim Coghill
Stocks reach record highs, and gilt yields soar on uncertainty about the Finance Minister
Global stocks rose on Wednesday, after U.S. labor data revealed a surprising soft reading. Meanwhile, British government bond yields soared amid growing speculation over the future of Britain's finance Minister.
ADP's National Employment Report shows that private payrolls fell by 33,000 last month, after a downwardly-revised 29,000 job increase in May. This is well below the 95,000 jobs expected by economists surveyed by.
The data is released ahead of the government's payroll report on Thursday, but there is very little correlation between them. On Thursday, we will also see the weekly initial claims for unemployment. The market's expectations of a rate cut in July by the U.S. Federal Reserve increased to 27% following the release, from just under 20% the previous session, according CME's FedWatch Tool.
"You throw it into the 'doesn’t look good' section and then look forward to tomorrow, which will arguably be much more significant," said Jim Baird. Chief investment officer at Plante Moran Financial Advisors, Southfield, Michigan. The S&P 500, Nasdaq, and Dow Jones all rose on Wall Street. This was partly due to a rebound in Tesla stock after it dropped by 5.3% Tuesday. Tesla shares rose 4.7% last after the electric carmaker announced its quarterly deliveries.
The Dow Jones Industrial Average dropped 56.43 points or 0.13% to 44,438.51, while the S&P 500 climbed 19.17 points or 0.31% to 6,217.23; and the Nasdaq Composite jumped 163.36 points or 0.81% to 20,365.78. The MSCI index of global stocks rose 2.62 points or 0.29% to 920.02, after reaching an intraday high of 920.24. Meanwhile, the pan-European STOXX 600 closed with a 0.18% gain, boosted by renewable energy stocks and luxury stocks.
The yields on longer-dated U.S. Treasury notes rose. The benchmark 10-year U.S. note was up 4.9 basis point at 4.298%. British government bond rates surged at one point, jumping almost 23 basis points. This was the highest since October 2022. The jump came after Finance Minister Rachel Reeves, who appeared visibly upset in parliament a day after the Government dramatically scaled back its plans to reduce benefits, spoke out.
The yield of the 10-year Government Bond, or gilt was up 16.8 basis point at 4.621%.
The pound fell 0.84%, to $1.3628. It had dropped as high as 1.35%. This was the biggest percentage decline since June 17.
The dollar index (which measures the greenback versus a basket) rose by 0.19% at 96.82, and was on course to end a nine-day decline streak.
On Wednesday, President Donald Trump announced on social media that the U.S. had reached a deal with Vietnam. He said previously that he would not consider extending the deadline to negotiate trade agreements, even though negotiations with Japan, his top trading partner, had failed to progress. However, he still expected to reach a deal with India.
Baird said that the announcement of a Vietnam-U.S. Trade Deal "clearly alleviates a piece of the puzzle of uncertainty around trade. Not only because of its direct impact but also as an indication that more is to come in the next week or two, which will all help to relieve what has been causing uncertainty over the past three months." Investors also watched for progress on Trump's massive spending and tax bill, which is expected add $3.3 trillion to national debt and cut taxes. Republicans in the House of Representatives have scheduled a procedural voting on the bill, which could reveal if the party has the support it needs to pass the bill out of Congress. U.S. crude rose 3.09% to $67.38 a barrel while Brent soared to $69.10 a barrel, an increase of 2.98% in one day. This was due to Iran suspending its cooperation with the U.N. Nuclear Watchdog.
(source: Reuters)