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Spain removes the remains of 11th-century kings as wildfires rage
The Spanish authorities removed Thursday the remains of three kings that ruled Aragon in the 11th century. Mar Vaquero, the vice-president of the Northeastern Region, stated that the remains of the deceased were taken to the provincial museum in Huesca located 80 km south of the monastery for protection until the conditions improved. Vaquero, a reporter, said that authorities launched a rescue effort after the wildfire, which had been burning since Monday, began moving towards the monastery of San Juan de la Pena, a 10th-century structure, late on Thursday. The team of emergency military personnel managed to get into the monastery located in the mountains and remove the 'ceremonial clothing' belonging to a '18th century count who was buried there. However, the close proximity to the fires forced the team to flee. The team returned to the site a second time with police officers and heritage officials. They removed the remains of three of the first kings of Aragon, who ruled from 1035 to 1104, as well as a few?historical pictures. Vaquero praised bravery and the team that rescued the victims. The 'wildfire' intensified on Thursday morning, fueled by high temperatures and strong wind. The fire has destroyed more than 9,000 hectares, forcing the evacuation of 16 towns. However, the monastery was unharmed as of Friday morning. A?much bigger wildfire in southern Spain also worsened on Thursday. The fire has burned over 31,000 hectares of land in Huelva province and forced 700 people to evacuate.
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James Hardie, a fibre cement manufacturer, faces a second class action in Australia over financial forecasts
James Hardie Industries announced on Friday that it would defend itself against a second shareholder class action lawsuit, which alleged the fibre cement manufacturer had violated Australian law in relation to financial predictions made last year. The Dublin-based firm said that the class action was filed on behalf of?investors who purchased securities from May 21 to?August 19,2025. It follows a similar class suit brought by a different set of shareholders back in June. The class action filed by shareholders on Friday alleges that the company violated certain provisions of Australia's corporate laws, consumer laws and regulatory laws. James Hardie stated that it expects a low-single-digit growth of total adjusted operating profits in 2026. The company said it will defend itself and is complying with its disclosure obligations. The company did not give any further information?on the allegations related to the forecast. James Hardie increased its 'annual earnings forecast last week. It cited benefits from its AZEK acquisition as well as manufacturing efficiencies and the demand for its legacy 'fiber cement business. After the upgrade, its Australia-listed'shares' closed at a near-year-high.
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Oil rally eclipsed by benign US inflation as stocks near record highs
The global?stocks were hovering around record highs Friday. They are set to make a third consecutive weekly gain, after benign inflation figures tempered expectations of a 'U.S. Rate hikes are expected to take place next month despite the faltering of talks to end the Middle East war. The price of oil and gas was still on track for a large weekly gain, as the impasse in the peace talks continued, while the U.S. threatened a stepped-up economic pressure against Iran, which included extending the naval blockade. Investors are not showing any signs of panic. This week, short-dated bond rates have increased, but modestly. Meanwhile, several market-based inflation expectations measures have continued their downward trend. Gold, which is hurt by rising interest rates, has reached two-month highs. Investors are less worried about AI spending now that strong earnings have been reported. GEOPOLITICAL UNCERTAINTY REMAINS The MSCI All-World index, which has been up for the third week in a row, was just below records highs. In?Europe the STOXX 600 index was slightly lower than the previous day as gains in capital-intensive stocks such as carmakers and defence were more than offset by losses in the technology sector. The markets end the week on a good note with a relatively low level of event risk in both the corporate and economic calendar. It's Friday and, as is typical, geopolitical risk, or at the very least, bombastic rhetoric between the U.S. "At the moment, geopolitical uncertainties remain the only major macro-roadblock to a market that is experiencing strong tailwinds due to earnings and the monetary policy outlook." Brent crude futures rose by 1.7%, to $88.5 per barrel. This is expected to lead to a weekly gain of 6%. European natural gas futures are set for an increase of 10%, and U.S. Gas futures for a rise of 3.5%. The VIX volatility index - which many see as the "fear index" of the market - was on track for its fourth consecutive weekly decline, the longest stretch of this kind since May 2025. This reflects the decreasing level of concern among equity investors. A measure of bond market volatilty is also heading for a second successive weekly drop. John Sidawi is a senior portfolio manager at Federated Hermes for fixed income. He said that a puzzling aspect of the?markets over recent months was the growing disconnect between asset price volatility and geopolitical uncertainties. For now, the markets seem to be willing to accept a considerable amount of uncertainty before demanding higher premiums. This equilibrium is not likely to last forever," Sidawi stated. "A meaningful escalation of conflict?or a path towards resolution could finally force the investors to come off the sidelines and trigger a larger volatility reaction than current market pricing?implies." YEN STUCK IN INTERVENTION LOOP After a report suggesting that the Bank of Japan may raise interest rates as early as September, three sources who are familiar with the policymakers' thoughts said the yen was stronger, and the dollar fell 0.2% to 159.18. The traders believe that the 160-level is still within reach, and could spark another round of yen purchases from Tokyo after last month's joint?intervention? with the U.S. failed to boost the Japanese currency. Padhraic G Garvey, ING's head of global rates, debt and strategy, explained that the yen is weak because of "a Bank of Japan that is uber-cautious and whose policy rate remains too low". Garvey said that a rate hike would help to ease the tension. The sooner the rate increase is implemented, the better. While that might be seen as a negative for the economy it is also a decision. Do you think it's important to protect the yen or not? Gold was down by 0.1% to $4,346 an ounce but still on track for its largest monthly gain since Feb. Central banks and investors have both pumped cash into the markets as expectations of the Fed raising rates aggressively has faded. (Ankur Banerjee contributed additional reporting from Singapore; Sonali Paul, Alex Richardson and Alex Richardson edited the article.)
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Sources: China's state iron ore purchaser has a supply agreement with Anglo American
Three sources familiar with the matter said that the Chinese state iron ore purchaser reached an agreement in April with 'Anglo American over an annual supply contract for the key ingredient used to make steel. China Mineral 'Resources Group' (CMRG) was established in 2022 in order to gain more power on the iron ore markets where China is a dominant buyer. They have increased their efforts to get better terms for Chinese Steelmakers who are struggling with dwindling margins and dwindling demand. Bloomberg broke the news on Friday. Sources said that CMRG, under the?agreement which was not previously reported, became exclusive agent for iron ore in?China from Anglo American Kumba in South Africa, starting in April. Two of the three said that it was a deal for 'around 10 million metric tons' to be delivered to CMRG member steel mills. One of them stated that the contract would last until March 2027. All sources declined to give their names as they weren't authorised to talk to media. Kumba's iron-ore sales amounted to 18.6 million tons during the first six months of this year. China accounted for 54%. Ebrahim dadoo, Anglo American’s global head 'of sales & trading', stated on a earnings call on the 28th of July that not all 54%?went CMRG without providing any further details. CMRG didn't immediately respond to a comment request. Anglo American declined comment. In April, CMRG and BHP Group reached a?supply?agreement, which ended a?month-long dispute in which Chinese steelmakers were prohibited from purchasing certain BHP iron ore products. Reporting by Nelson Banya and staff. Mark Potter edited the article.
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France evacuates 525 people as a new wildfire strikes pine forests in the southwest
French authorities evacuated 525 residents from the village of Luglon, after a wildfire broke in the southwestern Landes region. This is not far from an area that was already 'devastated' by major fires this summer. Gilles Clavreul, regional official, told reporters that the fire has now spread within two kilometers of Luglon's centre. The Landes region is covered in pine trees that? become highly flammable after drying. Clavreul stated that the situation was unfavorable, and the fire continued to rage. He added that 500 firefighters were fighting the flames, and six aircraft had been dispatched to help. Closed roads to the north and south have been closed. Clavreul has not commented on the origins of the fire. Luglon lies about 100 km (62 mi) south of Arcachon Bay. Two?major fires in the area destroyed over 50,000 hectares (124,000 acre), forcing 220,000 people to evacuate their homes by the end of July. French media reported Friday that a 15 year old had been arrested for a July fire that occurred near Bordeaux Airport, in the same area, and that resulted in two firefighters' deaths. Sud Ouest, a local newspaper, reported that the youth who was?placed in judicial investigation' threw a cigarette ash which allegedly ignited the fire. The Bordeaux prosecutor did not immediately respond to an inquiry for comment. French Interior Ministry?said that 474?people were arrested on suspicion of intentionally starting a fire. Out of the total, 183 are under 18. According to the Ministry, 70% of those detained have been'suspected of arson. This summer, the south-west of France has been blasted by heatwaves. Temperatures are expected to soar as high as 36 degrees Celsius (97 degrees Fahrenheit), on Friday afternoon. The area burned so far in this year is greater than the previous record-breaking year of 2022. Reporting by Stephanie Lecocq, Additional reporting by Gus Trompiz, Writing by Inti landauro and Jean Stephane Brosse and Editing by Clarence Fernandez & Edwina Gibbs
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Wildfires in western Germany force Germany to evacuate 2,000 people
Local authorities reported that 2,000 people were forced to evacuate their homes on Friday in western Germany after a wildfire near the Belgian border spread into a village. Residents in the village of Gey were asked to evacuate their homes at 4:00 am (0200 GMT), and to go to a help centre that was set up in a nearby village. The?instruction was to only carry essential items, such as identification documents and medicines. Mona Neubaur posted on X that "this forest fire threatens to strike the local community very hard." WDR reported that Mayor Stephan Cranen stated?that despite the fact that the evacuation was complete, the situation still remained critical. The flames are now about 300 metres away from the village. Cranen said that one of the wildfires which are still out of control has spread overnight towards an old munitions depot near the town of Dueren. Firefighters were quoted as saying that there was unexploded World war two munitions in the forest surrounding the town of Dueren because of the hilly terrain. Two German army tanks cleared access routes to the difficult-to-reach forest area, allowing firefighters to reach 300 hectares (740 acre) of?fire. There are large swathes in Germany that are battling dry conditions with high fire risks. Reporting by Friederike Hiene in Berlin and Andi KRANZ in Huertgenwald. Editing by Clarence Fernandez, Sharon Singleton and Sharon Singleton.
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After rally, copper prices fall as demand concerns dominate the conversation
Copper prices fell on Friday but have remained higher so far this week, as analysts wondered if global demand would be able to keep up with the recent price rally. Benchmark three-month copper on the London Metal Exchange fell 0.34% to $14,100.5 per metric ton at 0715 GMT. The red metal will likely gain 0.3% this week. This is the longest weekly streak it has had since 2020, when it gained 5.49%. The Shanghai Futures Exchange's most traded copper contract fell?0.12% to 107 690 yuan (15,970.64) per ton. The economic activity could be boosted by the fact that inflationary pressures are easing and concerns about interest rate hikes are receding. Fastmarkets analyst Andy Farida stated that "demand for base metals appears resilient but it's questionable whether?it will be able to maintain the same strong momentum, given how rapidly asset prices have accelerated and wage growth has been somewhat subdued." According to the CME's FedWatch, interest-rate traders have reduced the probability of the Federal Reserve raising rates during its September meeting from 44% on Friday. The LME's aluminium prices fell by 0.75%, and are expected to finish the week 1.19% lower. The price of the light metal fell by 1.14% on the SHFE. The Middle East's supply recovery prospects eased some of the expected tightness. Norsk Hydro said that the Alunorte refinery in Brazil has started to increase its alumina output after temporarily reducing it. Among LME metals, zinc dipped 0.33%, ?lead dipped 0.24%, nickel lost 0.36% ?and tin dipped 0.07%. The SHFE showed that?zinc fell 0.19%; lead dropped 0.88%; nickel declined 1.32%, and tin barely changed, only increasing by 0.04%.
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U.S. TerraPower and South Korea's SK Innovation Sign preliminary agreement on global SMR Projects
The Industry Ministry in Seoul announced that TerraPower and South Korea’s SK Innovation had signed a preliminary agreement on small modular reactors. This will allow the SK Group affiliate to participate in TerraPower's domestic and international projects. According to the ministry, Bill Gates and Chey Tae Won, Chairman of SK Group, signed the agreement at a Seoul meeting with Industry Minister Kim Jung Kwan. According to the ministry, the deal allows SK Innovation (the parent company of South 'Korea's biggest oil refiner) to participate in developing 'TerraPower's SMR project in the United States as well as overseas. The ministry did not disclose the financial terms of any investment or its scope. TerraPower is a company backed by Gates that has developed its sodium-cooled Natrium project in Kemmerer Wyoming. The company has received a permit for construction from the U.S. Nuclear Regulatory Commission and plans to begin commercial operations in 2031. South Korea's?Doosan?Energy said on Friday that it had won a deal with TerraPower for the manufacture of key components, including the reactor vessel, internal structures, and support structures. The?ministry stated that South Korean companies such as SK and HD Hyundai made financial investments?in TerraPower, and also seek roles?in the equipment supply, operation and construction of its U.S. projects and overseas. According to the ministry, global interest in SMRs is increasing due to growing electricity demand from AI infrastructure and data centres. This creates opportunities for Korean suppliers who want access to emerging overseas supply chains. (Reporting and editing by Ed Davies.)
Raychaudhuri: The South Korean stock market is cheaper because of the war in Iran, not weaker.
South Korea's stock market has become Asia's most volatile due to the Iran war. Fears of massive value destruction are probably unfounded, but the panic is real. The benchmark KOSPI index dropped over 18% in the two days following the start of the conflict on February 28. This was its worst ever daily drop. The next day, it recovered almost 10%. The market has been struggling with volatility for more than three weeks.
The 'KOSPI' is partly to blame for its own success. It had risen sharply in the year before the conflict began, and was up more than 100 percent over the previous year. Investors faced with uncertainty and the need for cash often sold their investments.
It is not surprising that the most liquid Korean shares in technology, chemicals, industrials and consumer discretionary stocks were the hardest hit. Conflict also weakened the outlook of some Korean companies, particularly after Iran closed the Strait of Hormuz. This narrow waterway was once used by roughly 20% of world energy to travel.
Korea International Trade Association shows that 70% of the crude oil and 30% of the gas Korea will receive in 2025 from the Middle East transited through the Strait. According to the International Energy Agency, Korea's energy mix is heavily skewed towards fossil fuels. 37% of its oil, 22% of coal, and 20% of natural gas are derived from Middle East.
On Tuesday, South Korean President Lee Jae Myung?called on a nationwide campaign to save energy. He asked the top 50 oil-consuming companies to reduce their use.
It is difficult to ignore the broad risk. A prolonged disruption in energy would increase the cost of inputs, fuel inflation, and squeeze margins for corporations. Since the start of the war, the Korean won has weakened sharply, adding to the pressure. This could trigger capital outflows.
Even with all the risks, some of the strengths that propelled Korean stocks before the war are still intact and may reappear in the minds of investors once the conflict is over.
Earnings boom endures
The outlook for earnings of Korean stocks remains positive despite wartime concerns.
Korea's consensus earnings per share (EPS) estimate has risen the most among the major Asian markets in the past year. These have risen despite the Middle East conflict. This shows that analysts are still bullish about the main drivers for profit growth despite concerns over energy shortages.
The majority of upgrades have been driven by the technology sector, primarily semiconductors. This is because the artificial intelligence revolution has not slowed down. Utility companies, energy and financial sectors have all made significant contributions, as well as?defence-exporters. The geopolitical conflicts should continue to be a support for the latter.
It is even more striking that, after a 40% rise in Korean stocks since late October, KOSPI's price-to earnings (P/E), based on FactSet estimates, has declined by 28%.
The forecasts for earnings-per-share have increased by 80% while the share price has lagged. This results in a market which looks cheaper based on future earnings, even after a good run. This dispels the myth that Korean stocks have become more costly since last year's rally. They haven't.
UNPACKING MISTAKES A second myth about Korean stocks that is often heard is that the market has become "crowded." Samsung Electronics, SK Hynix and other major players in the global market for memory did seem overbought up until the recent market selloff. However, the broader stock market tells a very different story. From November to March 25, foreign investors sold $36 billion in Korean stocks, with the sales starting long before the conflict. Since January 2020, foreigners sold $48 billion worth of Korean stocks, leaving them with a negative net asset value.
Thirdly, a third misconception is that investing in Korea means betting on the giant semiconductor companies.
Even though AI infrastructure hardware remains the clear leader, Korean prowess has also been well established in defence, shipbuilding and heavy engineering as well as automobiles, cosmetics retail, ecommerce, entertainment, and base metals. FactSet consensus predicts that most of these sectors will grow their earnings by over 20% in the next two-year period.
In many cases they are also attractively priced, with P/E multipliers that are significantly lower than the forecasted?earnings increase.
One caveat is in order. If war-related disruptions continue, energy-intensive sectors such as chemicals and heavy engineering could see their earnings decline.
GOVERNANCE & VOLATILITY The strong performance of Korea's equity market over the last year was also boosted by the corporate governance reforms, notably Seoul's Value Up programme, which aims to?boost shareholders rights. The government will need to reduce retail speculation to bring down volatility. While the progress made on this front is positive, it may be necessary to curtail corporate governance reform. Retail traders make up about a third of the daily turnover at Korea Exchange and use derivatives that are leveraged, which magnifies swings both ways. Regulators are taking steps to curb speculative trading and controversial practices such as illegal short-selling. The recent rise in technology stocks where leveraged positions were the most intense, however, indicates that more needs to be done.
The war's course is uncertain. A prolonged energy shock may have a negative impact on Korea's economy. When 'zooming in' on Korean equities current fundamentals, and foreign ownership's low exposure, there are plenty of reasons to believe that the war could be just a pause in Korea rally.
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(source: Reuters)