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Danone recalls batches in Germany of Aptamil Baby Formula, letter shows
A letter sent to a wholesaler on Thursday revealed that Danone has recalled three batches of Aptamil infant formula in Germany. The French food manufacturer is scrambling to quell a panic over toxin contamination, which began with Nestle products. Danone Deutschland, in a letter dated 26 January, asked Alliance Healthcare to remove some batches of Aptamil manufactured between May and 2025. The letter was published by online pharmacy Shop Apotheke. It stated that the wholesaler had little or no stock remaining, given that it received new deliveries. Danone announced on Friday it would be recalling certain baby formula batches from targeted markets. It did not mention which brands, countries, or volume of products were affected. But it stressed that its products are safe, and meet all safety regulations. Danone did not immediately respond to Thursday's?request? for a comment. Nestle announced in January that it would be withdrawing certain batches of infant formulas including SMA, BEBA, and NAN due to possible contamination by a toxin called cereulide, which can cause nausea and vomitus. Since then, the recalls have been expanded to include other French producers Lactalis and Vitagermine. The combined loss could exceed $1 billion. Danone shares have fallen almost 13% over the past two weeks. French investigators are investigating whether there is any link between two infant deaths and the recall of formula products. The German Federal Office for Consumer Protection and Food Safety announced on Thursday that certain batches of Danone product were being withdrawn. An official recall could only be issued when it is known the products have been consumed by consumers. The recalls show how an 'ingredient compromised can spread throughout the highly regulated infant food sector, prompting swift action by regulators and causing market jitters. A supplier detected Cereulide in a product. This?toxin is produced by Bacillus cereus. France's Agriculture Ministry has stated that the product was made in China. The Food Safety Authority of Ireland has also confirmed that cereulide had been detected in arachidonic oil manufactured in China.
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Eskom South Africa increases wage offer during ongoing union negotiations
Eskom, the state-owned South African power utility, has increased its offer of a salary increase to trade unions from 3.5% last year. A?document seen showed that this is still 'well below what unions demand. Eskom's electricity cuts and financial problems have been a drag on Africa’s largest economy for a long time. A sharp improvement in its coal-fired electricity stations allowed Eskom to stop the nationwide "blackouts". Last year, it reported its first profit for the full financial year in eight years. In a second round pay talks, the revised wage offer was made to three major unions that it negotiates salaries with. The document showed that Eskom had proposed the 5.5% wage increase to come into effect on July 1, one day after the expiration of its current three-year wage deal. This offer also includes adjustments for other benefits such as housing. A spokesperson for Eskom confirmed that the utility had offered a 5.5% salary increase. Unions want pay increases of up to 15 percent, which is far higher than South Africa's inflation rate. In December, it was 3.6%. The central bank believes that the rate may have peaked. The National Union of Mineworkers' energy sector coordinator,?Khangela Baloyi said that a third round of wage negotiation is planned for February. Eskom's three year agreement, reached in 2023, saw the salaries of non-managerial staff increase by 7% per annum. Former state monopoly generates the majority of South Africa's power and would like to?agree another multi-year salary deal. Previous wage disputes have led to power blackouts as a result of unions going on strike. The impact of a possible strike on Eskom operations this time around is more difficult to assess, as its recent improvements in its generation fleet mean it has excess capacity. (Reporting and editing by Alexander Winning & Kirby Donovan; Additional reporting by Wendell Roelf)
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Copper prices soar to record highs above $14,000, as investors pile in
The copper price spiked up to $14,000 per metric ton, a new record, on Thursday, as speculators continued their buying spree. They were encouraged by the expectation of high demand, and backed by a weaker dollar and geopolitical worries. Copper spiked with 'the biggest one-day increase in over 15 years, then lost most of its gains. Other metals also surged, before sliding into the negative. Benchmark three-month Copper on the London Metal Exchange rose 11%, reaching an all-time record high of $14,527.50 per metric ton. By 1700 GMT it had fallen to $13,612.50, which was a gain of 4%. Bulls, mostly in speculative funds ignored warnings from analysts that high prices could chill physical demand among industrial consumers, and were not supported by current supply/demand principles, creating a quandary for investors. In a note, Neil Welsh of Britannia Global Markets stated that "Copper's biggest one-day increase in years was driven by intense speculative trades by bulls in China." Investors are dumping base metals in anticipation of stronger U.S. economic growth and more global spending on data centers, robotics, and power infrastructure. Copper is used for power and construction, but inventories monitored by the global exchange are high, particularly in the U.S. After setting a new record, the most active copper contract at the Shanghai Futures Exchange ended daytime trading 6.7% lower, at 109.110 yuan (15,708.77 dollars) per ton. The gains were made despite a weak physical demand in China, the largest consumer market. The Yangshan Copper Premium The Chinese demand for copper fell to $20 per ton on Tuesday, the lowest level since July 2024. It was $55 in December. Traders said that copper is also on the rise due to an interest in hard assets. This has led to gold and silver reaching record highs partly because of geopolitical tensions. A weaker dollar index also supported metals. The index was near multi-year lows and made commodities priced in U.S. dollars cheaper for buyers who used other currencies. The erratic trading of other LME metals was also a factor. LME surged to another record high?of $59 040 a ton despite weak fundamentals and then fell 2.5% to $54,540. LME aluminium rose 3% to $3356 per ton, its highest level since April 2022. Then it fell 1.1%, to $3222. Zinc rose 1.4% to $3.412 per ton, after reaching its highest level since August 2022. Lead fell 0.3% to $2,000 and nickel rose 0.5% to $18,355, down from the intraday high of 19150.
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ArcelorMittal claims $2 billion against Italy over steel plant dispute
ArcelorMittal is a multinational steelmaker that was the former owner Acciaierie d'Italia, an Italian steel company. On Thursday, it announced that it filed a 1.8 billion euro claim ($2.2 billion) against the Italian Government over losses?linked with its investment in ADI's factories. This filing is a 'tit-fortat' move after Italy's state appointed administrators of ADI (formerly known as ILVA) sought around 8 billion euros in damages from ArcelorMittal alleging it mismanaged ADI’s steelworks. Early in 2024, the government assumed control of ADI after ArcelorMittal. ADI has struggled to maintain its production due to high energy costs and low demand. In the government's ?case, Luxembourg-headquartered ArcelorMittal said in a statement on Thursday that ADI's government-appointed commissioners had served it ?with a summons to appear before a Milan court. It rejected all accusations, including that it had pursued a'strategic approach of running down the 'plants, destroying ADI’s business, and extracting profit from Italy. ArcelorMittal announced that it had invested around 2 billion euros to "turn around a structurally-challenged business." Much of this money was dedicated to meeting the environmental standards set forth by the government. It claimed that the government had made "omissions" and "illegitimate legislative intervention" which affected the terms?under which it purchased the plants, and caused the company to lose its investment. In December, sources close to the issue said that 'Italy selected U.S. Investment Fund Flacks as the exclusive buyer for ADI. The?government tried before to sell ADI’s steelworks to a consortium of Azeri companies Baku Steel, and Azerbaijan?Business?Development?Fund but could not reach an agreement. ILVA Taranto?steel was once Europe's biggest steel plant, but it has been hampered since 2012 by judicial investigation and asset seizure?related to its environmental impact. The future of ADI has become a key political issue for Italian Prime Minister Giorgia Melons, since a shutdown could have significant effects on the manufacturing sector in Italy.
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Dow forecasts weak revenues amid slow demand, and will cut 4,500 jobs
Dow will cut 4,500 jobs or 13% of its total workforce as part of a massive restructuring designed to boost profitability by at least $ 2 billion. However, the company's first-quarter revenues are expected to be below expectations due to persistently low demand. In the morning of Thursday, shares of the company dropped 5.8%. On a call after earnings, executives said that the job cuts would also reduce the roles and resources of third parties. The company is using automation and AI in order to improve efficiency and lower costs. Chemical producers around the world are reevaluating their strategies due to stagnant demand in Europe, rising production costs, and changing regulatory requirements. Dow has also been reevaluating its ownership of non-core assets throughout its global portfolio. This includes power and steam production, pipelines, and other assets. Jim Fitterling, CEO of Fitterling Corporation, said that the company will deliver the remaining $500 million in savings from the $1 billion cost-saving program by the end the year. Dow, which employs 34,600 workers and operates manufacturing sites across?29 countries, anticipates incurring $1.1 to $1.5 billion of one-time costs associated with the restructuring in 2026 and 2027. The company has not specified which sites or business units will be affected by the planned job cuts. DOWNBEAT EXPECTATIONS OF REVENUE According to data compiled and analyzed by LSEG, the company predicted first-quarter sales of $9.4billion, which is below analysts' averaging estimate of $10.33billion. Dow said that modest seasonal improvements in demand and the benefits of cost control during the quarter may be offset by planned maintenance and continued downward pressure on the market, particularly for the construction and building industry. The Michigan-based company reported a smaller-than-expected adjusted loss of 34 cents per share, compared with analysts' average estimate of a loss of 46 cents. (Reporting and editing by Sriraj Kalluvila in Bengaluru)
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Sibanye Stillwater wants to reduce its $2.2 billion debt in half by 2028
Sibanye Stillwater, a diversified'miner, said on Thursday that it aims to reduce its gross debt by 50% in the next two to three years. In a recent strategy update, the company said it also aimed to save 3 billion rands ($190.10 millions) annually by 2027. This is mainly due to an estimated 2,5% increase in production and a decrease in overheads. CFO Charl Ketter said that Sibanye will "aggressively" target debt reduction during a strategy update. Kayter said that Sibanye would refinance $500 million of a $675-million bond maturing in November 2026. Sibanye is now under the leadership of Richard Stewart, who replaced Neal Froneman, who had been CEO since October 2025. The company has seen a rise in gold and platinum prices, as well as a recovery in PGM prices. On Thursday, the spot gold price rose to a record high of $5,600 per ounce, mainly due to safe-haven purchases and weakening economic indicators in the United States. Platinum rose 1.4%, to $2,735.15 per ounce. It had previously reached a record-high of $2,918.80 an ounce on Monday. Sibanye intends to make a decision on its Burnstone Gold project in the first half 2026. The company had stopped work on Burnstone project in 2021 to conserve cash before a fall in PGM prices. But now, as bullion price continue to rise to record highs, it is advancing the project. Stewart said that Sibanye would now focus on organic growth. The company began in '2013 with three South African gold mines spun off by Gold Fields. It grew quickly through acquisitions, diversification, and PGMs. He said that the immediate focus of his strategy was to unlock the potential within our existing resources.
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Caterpillar sees a huge boost in AI sales as tariffs drag
Caterpillar’s fourth-quarter performance reflected the global economy. Sales were boosted by a surge in artificial intelligence spending, even though the equipment giant warned investors that they would be hit with tariffs of up to $2 billion over the next year. The largest construction equipment company in the world reported that quarterly sales of its power and energy division, which manufactures generators, increased by more than 20%. Caterpillar, along with other industrial giants, has relied on AI in order to boost investor sentiment. Its shares have gained 60% in the past year, which is roughly four times as much as the S&P500. The AI boom has surpassed Caterpillar’s mainstay construction division as the largest Caterpillar business segment by sales. On a recent earnings call, CEO Joe Creed stated that "prime power" systems are in high demand. These large generators provide constant, round-the-clock energy. Data-centers need more on-site electricity to keep up with their rapid growth. Caterpillar shares, which are widely considered a bellwether of the global industrial economy, rose by about 4.4% at the start of trading. TARIFF HEADWINDS The company estimated tariff-related costs to be $2.6 billion by 2026. It said that the absolute value of tariffs in place last year was $1.8 Billion. Last year, President Donald Trump's tariffs were a major factor in the price hikes and forecasts of industrial firms. Although many U.S. companies have told investors that tariffs this year are "manageable", early earnings season commentary indicates profit margins under pressure. "Better-than-expected sales ?across business segments were hindered by tariff headwinds, limiting the margin expansion for the quarter," said Jefferies analyst Stephen Volkmann. Volkmann said that he expected the headwinds will persist until 2026. Caterpillar has outlined two scenarios for the annual operating profit margin. This is a continuation of a trend that was seen last year. The company's target operating profit margin will be at the lower end of its range if tariffs are included. Caterpillar announced a revised operating profit margin of 15% to 19% by 2024. This will increase to 21% to 25 % by 2030 depending on sales levels. It earned adjusted profit per share at $5.16, up from $5.14 in the same quarter last year. Revenue increased to $19.1 billion, up from $16.2 billion. According to LSEG data, analysts had on average expected the company would report a profit per share of $4.68 and revenue of $17.86 Billion. Wall Street anticipates that the construction segment will return to growth by 2026. This is due to stronger dealer orders and stabilised non-residential building activity.
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Tesla to spend $20 billion on capital expenditures in a bid to move beyond human-driven vehicles
Tesla plans to double its capital expenditures to an all-time high of $20 billion this year, but only a small portion of that will be spent on the company's traditional business of selling cars to humans. According to comments made by executives on Wednesday's earnings conference, the company, which lost last year's global EV sales crown in China to BYD's BYD, will instead invest in yet-unproven businesses such as fully autonomous cars and humanoid robotics. Elon Musk, Tesla's CEO, announced that the company would stop producing its Model X SUVs and Model S sedans. Instead, it will use the space in its California factory for its Optimus robots. Musk also said in a separate post on his social networking site X that the robots would be produced in a higher volume at?Tesla’s Texas Gigafactory. He said, "This will be a big capex-year." "We are making huge investments for a future that will be epic." Vaibhav Tania, chief financial officer, said that the majority of the'record' investment would be used to build production lines for the Cybercab - a fully-autonomous vehicle without a wheel or pedals -, the Tesla semi-truck (long-promised), Optimus robots, and plants for lithium and battery production. Tesla's sales are still largely reliant upon human-driven EVs, but it is valued far higher than any other automaker. This puts it in a league with major tech firms. Investors' belief that Musk can deliver on his lofty promises to deliver robotaxis and robotoid robots, backed up by the company’s investment in AI, is a major factor. Microsoft, Alphabet, and Meta Platforms (parent company of Facebook) are also planning to increase capital expenditures this year. These companies will invest heavily in data centers and hardware in order to support AI models and customer demand. Scott Acheychek is the chief operating officer at REX Financial. REX Financial manages ETFs that have exposure to Tesla. He argues that Tesla's automobile business is?no more the main focus. He said that the "bigger story" is "the business model transition underway", as Tesla focuses more on autonomous driving. Tesla shares fell 1% at the opening of trading on Thursday. 'NECESSARY SPENDING' Andrew Rocco is a stock strategist for Zacks Investment Research. He said that he viewed $20 billion in spending as "necessary." Musk said that the spending plan gives him confidence in Musk's "sometimes erratic timelines." The $20 billion capital expenditure is significantly higher than the $11.3 billion recorded in 2024, which was the previous record. Taneja stated on the call that Tesla had more than $44 Billion in cash and investments that it could use to fund its investments. He said that this year's spending would not be the last. The company may look to pay for investments by borrowing more money or using other methods. Musk claimed that Tesla's spending on certain projects was not done for fun but "out of desperate need". Can other people please, for God's sake, in the name and spirit of all that is sacred, build this stuff? Musk was referring to the spending on cathode- and lithium-refining. "It is very difficult to build these things."
Microsoft falls, and oil prices rise on Iran-related fears
Oil prices rose on U.S. - Iran tensions, as global shares fell on Thursday. On Wall 'Street in the U.S. Stocks were down in the opening stages of trading. Microsoft shares fell more than 11%, which put the company on course for its largest daily percentage decline since March 2020. Investors were unnerved after the record expenditure on artificial intelligence in the last quarter. Meta Platforms' quarterly results showed a gain of over 8%, but this was overshadowed by the drop in Microsoft shares. This shows that investors are willingly to overlook massive AI expenditures as long as they are accompanied with strong growth. Tesla, a fellow "Magnificent 7" member, slid nearly 2% following its earnings report. Apple will post its results after the closing bell.
Adam Turnquist is the chief technical strategist at?LPL Financial, based in Charlotte, North Carolina.
The Dow Jones Industrial Average dropped 69.72, or 0.15 %, to 48.945.88. The S&P 500 fell 53.52, or 0.77 %, to 6,924.51 while the Nasdaq Composite lost 379.35, or 1.59% to 23,478.10. The MSCI index of global stocks fell 5.18 points or 0.49% to 1,046.49. This was its first decline in six sessions.
The dollar index (which measures the greenback versus a basket currencies) rose 0.36%, its second daily gain after a recent bout with weakness. Meanwhile, the euro fell 0.22% to $1.1926. The dollar's strength was boosted by the Federal Reserve's decision to keep interest rates unchanged on Wednesday. Chair Jerome Powell cited a strong economy, and lower risks of inflation and unemployment, which indicated that the central bank would have plenty of time to cut rates. The U.S. economy reported on Thursday that initial weekly jobless claims had fallen, which indicated that layoffs were still low. However, soft hiring kept consumers pessimistic regarding the labor market. U.S. crude oil prices rose by 2.67%, to $64.90 per barrel. Brent was up to $70.31 a barrel, up 2.79 percent on the day, after rising more than 5%.
Geopolitical tensions kept upward pressure on the gold price, which reached a record $5,594.82 per ounce. This was its ninth consecutive record high. Gold spot prices fell 4.13% to $5,176.45 per ounce, despite the gains.
(source: Reuters)