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Wildfires in Greece ease as people return home to their destroyed homes
Wildfires in Greece?were easing on Tuesday?though hundreds were on alert for?persistent?flare-ups?northwest of Athens. Rugged hills and canyons hindered efforts to contain a fire that destroyed homes, scorched farmland, and charred olive groves. Three fronts, west of Athens and in the Gulf of Corinth were fought by local crews with support from water-bombing planes and reinforcements coming from Romania and France. Officials said that the Aegean sea's strong?dry wind, also known as meltemi had complicated their efforts. Water bombers were sometimes unable to operate. Ioannis Artopoios, deputy spokesperson for the fire brigade, told public broadcaster ERT that "we are talking about a situation where we did not have a plane at our disposal?for 30 hours in a row. This caused us a great deal of difficulty." Vivi Gialia (45) surveyed the charred remains of her parents' house and the ravaged landscape where she spent her childhood summers in Porto Germeno. She said, "It feels like my heart was torn apart." This summer, Europe was ravaged by fires after a record-breaking period of heatwaves. Many scientists believe that climate change is to blame for the wildfires. France and Spain were particularly hard-hit, though huge fires in those countries died down at the weekend. Greece, which is a fire hotspot known for its mild summers, has been a major fire-prone country. After a midair collision with another helicopter whose crew of two survived, two crew members from a firefighting chopper died near the seaside village of?Psatha on Sunday, approximately 40 km (25miles) away from Athens. The U.S. Federal Aviation Administration is investigating the circumstances of this crash, which involved U.S. registered Bell helicopters. In Porto Germeno small?religious steles, which are common in Greek homes, were still visible on the side of the road or at the front entrance of a destroyed house. In one house, a woman tried to sweep up broken tiles from a 'darkened' room. Her steel front door was blackened by the fire. "It was beautiful,?we spent the summers here." Gialia complained that "we have spent happy moments here and now there is nothing left". She criticized what she called the slow response of firefighters.
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South Korean stocks finish higher as leveraged ETF trades abate
South Korean shares ended higher on Tuesday, after a volatile session. Regulations have impacted the trading of leveraged ETFs in a market that has been roiled by wild swings over AI fears in recent weeks. The benchmark KOSPI ended 1.6% higher, at 6,358.95, after swinging from a gain or loss of 2% to 3%. The trading volume was below the average for the last 30 days, indicating a low level of participation by investors compared to the recent frenzy among retail investors to lock-in profits from the AI boom. According to LSEG, the daily trading volume of KODEX SK Hynix leveraged single-stock ETF, which is one of the most popular with retail investors, has plummeted from 270 million to?around 50 millions shares. The drop in activity was a result of new regulations aimed at curbing speculation and debt-fuelled ETF investments. Finance Minister Koo Yon-cheol has said he will work to reduce volatility and 'would quickly implement measures announced recently to curb the usage of single-stock leveraged ETFs. Goldman analysts said in a report that the leveraged ETF overhang had reduced significantly. They added that assets under management of these ETFs were down by more than half as of mid-June from their peak. Han Ji-young, an analyst at Kiwoom Securities, said: "We need more time before we can make any assessments but it appears to have contributed in some way to a reduction in daily volatility on the KOSPI Market." This week, volatility has been lower than in July when the Kospi fell more than 5% on seven occasions and surged 18% Friday for its largest one-day increase. Samsung Electronics, a memory chip maker, rose by 0.2% on 'Tuesday. Meanwhile rival SK Hynix rose by 0.6%. The data released earlier that day revealed that cheaper crude oil had helped to lower inflation in July. It was the lowest level for three months. The central bank has set a medium-term rate target of 2%. This means that bets for an increase in August rates are still on the table. The markets are pricing in a 70 percent chance of an increase later this month. On the KOSPI, Hyundai Motor fell 0.1% while its sister company?Kia Corp remained unchanged. POSCO Holdings gained?3.1% while Samsung BioLogics rose 3% The foreigners sold shares valued at around 370.6 billion Won ($258,42 million). The dollar was down to $1,432.9 on the settlement platform onshore. $1 = 1,434.1000 Won (Reporting and editing by Subhranshu and Rashmi Sahu in Bengaluru)
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Oil prices remain stable as inventories at the LME and Shanghai fall
The copper price rose on Tuesday as a result of falling inventories. Oil prices also remained stable, despite conflicting statements from the U.S.A. and Iran that 'clouded the prospects for a diplomatic solution to the long-running war. As of 0700 GMT the benchmark 'three-month copper' on the London Metal Exchange was up by 0.69% at $13,952 per metric ton. The most traded copper contract on Shanghai Futures Exchange rose by 0.86% and closed daytime trading for 106,650 Yuan ($15794.62) per ton. Copper stocks at LME registered warehouses As of Friday, inventories had fallen to 244,025 tonnes from about 400,000 tons back in April. The?SHFE tracks inventories The number of tons has dropped from 430,000 to 69,300 since March. These declines have led to a tightening of the?immediately-available supply outside of the United States. By contrast, COMEX copper inventories On August 3, the number of short tons reached 717,314 - a steady increase from 340,000 at the end of last year. In a recent note, Chinese broker Jinrui Futures stated that weekly copper imports into the U.S. were at a high level. The broker said downstream consumption in China is also weakening due to the higher prices. The oil prices stabilized following a steep drop in the previous session. This was despite President Donald Trump's claim that talks with Iran are underway. Brent crude futures increased by more than 1% Tuesday. This is after the crude oil price dropped 7% to a 3-week low on Monday. Trump stated on Monday that Iran has "last chance" at an agreement. Iran's Foreign Ministry denied that meetings or talks were being held. Copper is vulnerable to the risks of energy supply and transport costs because of the disruption of shipping through Strait of Hormuz. Nickel recovered after a day of losses. The benchmark nickel contract traded on the 'LME closed 1.55% higher, while the most active nickel contract traded on the Shanghai exchange closed 1.41% better. The market is waiting on clearer direction from the Indonesian government regarding the new nickel mining quotas. Aluminium, zinc, and lead all rose in price on the LME. Tin gained 0.54%. On the SHFE, aluminium gained 0.95%. Zinc dropped by 0.20%. Lead ticked higher at 0.06%. Tin gained 0.74%.
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Odisha warns steelmakers and iron ore miners about grade manipulation
Odisha, India's largest iron ore producer, has warned that it will take a stern stance against steelmakers and miner over allegations of grade manipulation. India, which is the second largest crude steel producer in the world after China, will produce between 340 and 345 million metric tonnes of iron ore in 2026-2027. This represents an increase from the 316 million metric tons produced a year ago. A disruption in supplies from Odisha, a resource-rich state, could sabotage those production targets. According to a government document reviewed on July 6, inspections "revealed consistent grade manipulation" by lessees, which included major steel producers. This resulted in a "substantial reduction" of state revenue. In the letter dated July 6, companies such as JSW Steel, Tata Steel and state-run Steel Authority of India were named. Also, Jindal Steel, ArcelorMittal Nippon Steel India, Jindal Steel, and Tata Steel are also mentioned. Tata Steel's spokesperson denied that there were any differences, saying the company pays "royalties" as per norms, and that its iron ore is of the highest quality. JSW declined comment. SAIL and Jindal Steel didn't respond to emails asking for comment. Odisha’s Directorate of Mines and Geology did not reply to any requests for comments. According to the July 13 meeting minutes, and a reliable source who is familiar with this matter, government officials met last month with executives from steel and mining companies and associations to discuss their findings. The meeting minutes stated that "Any deliberate grade manipulating, misdeclaration, or suppression of minerals value affecting the government revenue will be taken very seriously and dealt with'strictly. According to minutes, the steel and mines department of Odisha instructed lessees to revise their mining plans and to seek approval from Indian Bureau of Mines when actual ore grades do not match the?approved grades. Analysts claim that stricter inspections have already affected the availability of lower-grade ore. BigMint reported that the Odisha authorities have intensified their inspections in recent months, resulting in a decrease of offers for lower grade ore on the merchant market. B.K. said that since Odisha was the biggest producer of iron ore, the issue could have an impact on the availability of iron ore across the country if it escalated. Bhatia is a mining expert, and a former director general of Federation of Indian Mineral Industries. Industry representatives have disputed the allegations of the?state. The industry has expressed concern that the grades extracted are determined by the geology, and that this is not in anyone's hands," said a representative of the industry. They declined to be named because they weren't authorised to address the media. Reporting by Neha Arora, New Delhi, and Jatindra dash, Bhubaneswar. Additional reporting by Arpan chaturvedi, New Delhi. Editing by Mayank Bhardwaj & Saad Sayeed.
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Hugo Boss Q2 EBIT tops forecasts, confirms 2026 outlook
German fashion group Hugo Boss announced its operating profit for the second quarter ahead of expectations and maintained its outlook for the full year despite a subdued demand from consumers. In a poll conducted by the company, earnings before interest and tax (EBIT), which were 81 million euros in 2014, fell to 59 million euros. This was higher than analysts' average predictions of 52 million euro. The currency-adjusted sale fell by 9%, to 905 millions euros. This was slightly lower than analysts' expectations, which were 907 million euro, as strategic realignment and a weak consumer background continued to weigh on the demand. Hugo Boss stated that macroeconomic uncertainty and political tensions were a major headwind in the third quarter, especially for Europe, the Middle East?and Africa (EMEA). The company stated that "lower store traffic in the Middle East due to geopolitical events added further pressure on regional performance." Hugo Boss' Chief Executive, Daniel Grieder, said that the company was encouraged by its progress in the first half despite macroeconomic and geopolitical uncertainties. He said that the group had made progress in executing its Claim 5 strategy aimed at increasing profitability and operational efficiency. The company has confirmed its full-year forecast for 2026.
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Asia stocks struggle for direction, oil moves higher
Asian markets were volatile on Tuesday as investors assessed whether the strong earnings of U.S. corporations would help AI-related stocks to rise in the region. Oil prices also rose after the attacks on shipping along the Strait of Hormuz. MSCI's broadest Asia-Pacific share index outside Japan fell 0.1% as volatile South Korean stocks fluctuated between gains and losses. The last gain was 1.2%. Japan's Nikkei225 slid 0.2% higher, while S&P500 e-minis futures were up 0.3%. Societe Generale's analysts stated in a report that "the AI trade has matured". Investors are increasingly focused on?the sustainability? of margins after 2026, they stated. They cited falling expectations for South Korean tech stocks which have been the focus of recent volatility. The Dow Jones Industrial Average closed at a record level overnight after data showed that U.S. Manufacturing Activity increased to its highest level in over four years. LSEG data shows that 84% of S&P500 companies have beaten their earnings estimates for the second quarter. Eastspring Investments analysts including Chief Investment Officer Vis Nayar wrote in a note that earnings announcements by Big Tech companies show "the AI capital expenditure boom remains intact". Brent crude rose 1.6% to $85.12 per barrel in Asian trading after hitting a three-week high on Monday, when U.S. president Donald Trump announced that he would not launch a new attack against Iran out of goodwill for peace talks. Tehran, however, has denied any talks are underway. The dollar rose 0.3% to 157.62 Japanese yen after a coordinated intervention by U.S. authorities and Japanese authorities last week. The yen is still about 4% higher against the dollar compared to the levels of a week earlier that prompted the official support. This was the first U.S. intervention on the Japanese foreign exchange markets in 15 years. The auction of '10-year Japanese government bonds' on Tuesday also attracted a lower demand than previous sales of sovereign debt. This prompted a new bout of anxiety. The yield on these notes increased by 3 basis points, to 2.85%. The yield on the U.S. Treasury 10-year bond increased 1.2 basis points to 4.694%. The U.S. dollar index, which measures greenback strength against a basket six currencies, traded at 100.01, near its lowest level in the last two months. The market continues to imply that the September Federal Reserve meeting will result in a rise in interest rates. FedWatch, a tool of the CME Group, shows that Fed funds futures price a 65% implied probability for a 25 basis-point increase at the next two-day U.S. Central Bank meeting ending September 16. Bitcoin was unchanged at $63,776.56 while ether fell 0.3% to $1862.40. (Reporting and editing by Gregor Stuart Hunter, Shri Navaratnam, and Jamie Freed).
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Aramco reports a 44% increase in net profits as the Iran war increases oil prices
Aramco, the Saudi oil giant, reported a 44% rise in its second-quarter net profit on Tuesday. It reaped higher prices for crude 'oil', refined products and chemicals, while being forced to reroute shipment to avoid war-torn Strait of Hormuz. The top oil exporter in the world posted a net profit of 32,69 billion dollars for the three-month period ending June 30 compared to $22,67 billion dollars a year ago. Amin Nasser, CEO of Aramco, said that despite the disruption in supply through the Strait of Hormuz we were able to continue our business by leveraging our diverse asset base, multi-decade plans, and Aramco’s export terminals. Aramco said it maintained a rate of supply reliability of 98.4% in the third quarter, despite the continued geopolitical uncertainties in the region. Since the U.S.-Israeli War with Iran, the company has increased exports via the East-West Pipeline into the Red Sea Port?of Yanbu. Nasser described the route as a 'critical lifeline'. The alternative route to the Red Sea and Saudi export terminals are also now under threat. In July, Iran's Houthi forces announced that they would blockade Saudi Arabian oil in the Red Sea. This extended the disruption to a second major waterway, and pushed oil prices up. (Reporting and writing by Maha El-Dahan; editing by Tom Hogue, Sonali Paul, and Tala Ramadan)
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Mike Dolan: The bond market is afraid of the US economy because it has been overstimulated.
The U.S. economic engine is gaining steam despite erratic politics, global conflict and booming business investment. It could overheat. Step back from the daily noise, and it's clear that fiscal generosity, loose financial conditions and booming business investments, as well as near-zero real interest rates, are all fueling the economic engine. It would be remarkable if inflation returned to target without tightening fiscal or monetary policies. It also explains the stock market's refusal to retreat despite wild swings in single stocks, recent hedge fund stress and gnawing doubts over whether this is the peak of the AI wave. Investors who are pursuing "buy-the-dip" strategies or simply rotating their portfolios between sectors seem reluctant to raise cash. Stock markets are close to new records after major U.S. equity indices gained 50% in the last two years and another 10% during the first half of the year. This is boosting asset wealth of the wealthy cohorts who account for most of the consumer spending that drives the economy. It encourages greater spending from disposable income, and allows companies to pad margins in an upward spiral. Rising bond yields are the only red flag. The past week, two big numbers were released: the estimated annual profit growth for S&P firms accelerated to almost 50% through the last quarter. And, despite a headline inflation-adjusted number that was not impressive, the nominal U.S. Gross Domestic Product grew at an annualised rate of nearly 8% in the second quarter. Demand components were strong, despite the 6.3% increase in GDP deflator that was mostly energy related. The nominal GDP growth rate is nearly twice as high as the average over the last 25 years. Consumer spending soared by 3.2% while business equipment investment accelerated at a rate of 15%. LSEG data show that the annual U.S. profits are growing at a staggering 47%. This is fueled by a frenzy of AI, which has prompted "hyperscalers", who build infrastructure, to spend more than $1 trillion on capital expenditures this year. This is three times higher than the estimate for January and twice what was expected a month earlier. This is due to both the 'blowout quarters of major oil companies and banks as well as stellar technology earnings. The margin expansion is evident, even with revenue growth at only 14%. Barclays' readout on the current earnings season revealed that "margins have been driving forces as they reach new heights." The report also highlighted the strength of the energy and technology sectors, along with consumer staples and materials. TRILLIONS AFTER TRILLIONS Many factors are at play. Stephen Jen and Fatih Yalmaz of Eurizon SLJ believe that high energy prices and inflation are not causing the "demand destruction" they would usually cause to lower prices. The consumer is less price sensitive than they were in the past. The scale of fiscal expenditure that is still in place, which does not appear to be reversing, is blamed. They propose a "fiscal stimuli-price-spiral" instead of the "wage-price-spiral" of previous cycles. The note states that the federal budget is in deficit of over $2 trillion per year, despite AI-related capital expenditures topping $1 trillion. These deficits were further exacerbated by the fiscal bill last year, which included tax cuts and increased spending. Similar deficits are forecast for the next decade. "Huge and constant transfers by the government have sustained the aggregate demand in the U.S. This has prevented the demand curve from remaining flat, and given corporations and producers greater pricing power. They concluded that these variables were 'all linked. The causality is from fiscal stimulus, to greater pricing, to inflation. There is also another loop. The top 25% earners can spend more because of rising equity and real estate values. Their asset wealth allows them to continue buying regardless of inflation rates between 3% and 4% or fluctuations in gas prices. Their collective purchasing power allows companies to keep increasing margins. The resulting earnings increase and stock price?windfall also boosts equity wealth for richer households. Where does it end? The Federal Reserve can do a lot to curb inflationary corporate pricing power. It is not powerless when faced with supply or capex shocks. Two interest rate hikes in the remaining months of the year could cool equity prices, margin expansion, and spending. They also increase the odds of inflation being tamed for asset-poor families. The bond market may do it if the Fed does not. The opinions here are those expressed by Mike Dolan, who is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
Oil prices rise, stocks increase despite Iran tensions and the yen is easing
European stocks rose?alongside U.S. Futures on Tuesday. However, a rebound in the oil price underscored market scepticism about the U.S. -Iran War?being resolved quickly by diplomacy.
The yen eased slightly but still held onto most of its gains after the joint intervention by Tokyo and Washington last week to support the currency.
The latest attack in the Strait of Hormuz highlighted the risks for global energy flows.
Brent futures increased 1.4% to $84.95 per barrel, after falling 7% the previous session and reaching a three-week high.
Europe's STOXX600.STOXX rose 0.55% with tech stocks up 1.7%.
Nasdaq Futures rose 0.67%, while S&P500 futures increased by?0.22%. S&P 500 index rose 1.48% to 7,610.04 on Monday, just a few centimeters away from its record high of 7,620.90. Dow Industrials also reached a?record closing high.
The main MSCI world stock index rose by 0.05%. Japan's Nikkei gained 0.32%.
"We add risk to sectors that should be less affected by higher interest rates." Mohit Kumar, Jefferies economist, stated that the tech and financial sectors would be the best to add risk back into the portfolio.
He added that the cash level in the system was a factor that continued to "support" his bullish medium-term view.
Last week, the yields on longer-dated U.S. Treasury bonds reached a 19-year high after comments by U.S. Federal Reserve Chairman Kevin Warsh raised fears that the Fed might not act aggressively in order to curb inflation.
The market participants think Warsh doesn't want to hike and that the data he receives could be enough to convince him to remain put. The first round U.S. job data will be released later Tuesday.
LSEG data, and market participants, report that 84% of S&P 500 companies have surpassed earnings estimates for the second quarter.
Eastspring Investments' analysts, including Chief Investment Officer Vis Nayar wrote in a report that "the AI capex boom is still intact."
Concerns remain elsewhere in Europe. Some economists warn that the region's economy will face a more difficult outlook than others, as droughts hamper Rhine shipping, and gas stocks are still under pressure.
YEN RALLY?STALLS
The dollar gained 0.4% against the yen at 157.80, regaining strength after U.S. authorities and Japanese authorities intervened last week to support the yen.
The Japanese currency is still about 4% stronger than the greenback, compared to the levels of a week earlier that prompted the official support. This was the first U.S. involvement in the Japanese foreign exchange market for 15 years.
Market participants are concerned that Japan's fiscal expansion and the Bank of Japan's gradual rate increases could have a negative impact on the yen.
"The catalysts which can amplify unwinding short yen position (supporting currency) include, potentially, lower oil prices, a tightening of BoJ policy in September and afterwards, and some'moderation' in Prime Minister Sanae Takaichi fiscal plans in order?to restore debt sustainability," Thierry Wizman said, global forex rates and currencies strategist at Macquarie Group.
The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, traded steady at 99.98, not far off the lows of the last two months. (Reporting and editing by Shri Navaratnam, Jamie Freed and Gregor Stuart Hunter)
(source: Reuters)