Latest News
-
Trane Tech exceeds its quarterly expectations on the strength of demand for air conditioners
Trane Technologies reported Wednesday better-than expected first-quarter results, and reaffirmed their annual profit forecast. They benefited from the rising demand for heating, ventilation, and air conditioning (HVAC) systems. The company's shares rose by over 7% during premarket trading. As temperatures rise as a result climate change, sales of air conditioners in homes and offices have risen. The Ireland-based firm posted a 14% increase in its Americas segment. This is its largest revenue generator, and was boosted by a robust demand from commercial customers. The company, who also owns Thermo King Transport Refrigeration, has stuck to its original adjusted profit per share estimate of between $12.70 - $12.90 by 2025. Trane has, however, increased its revenue growth expectations for the year. It now expects a rise between 7.5% and 8.5% above its previous estimate of 6.5% to 7.5%. According to LSEG, the company reported net revenues of $4.69 Billion in the first quarter. This is up 11% compared to a year earlier, and beat analysts' expectations, which were about $4.46 Billion. The company reported a profit per share adjusted of $2.45, which was also higher than the analysts' expectation of $2.20. (Reporting by Utkarsh Shetti in Bengaluru; Editing by Sahal Muhammed)
-
India's Adani Power Fourth Quarter Profit Falls on Lower Tariffs and Higher Costs
Adani Power, an Indian thermal power company, reported on Wednesday a 5% drop in its fourth-quarter profits. This was due to lower tariff realizations and higher operational costs. The company, which is part of billionaire Gautam Adani's Adani Group said that its consolidated profits fell to 25,99 billion rupees (307.2 million dollars) for the three-month period ended March 31, from 27,37 billion rupees the year before. The quarter saw a rise in power sales of 18.9% compared to the same period last year, but revenue only grew by a modest 6.5% due to lower merchant tariffs. The company stated that the company's supply of electricity exceeded the demand. This led to a decrease in merchant tariffs, which in turn resulted in a lower realisation during the third quarter. Merchant tariffs are the prices at which electricity is purchased on the open market. Adani Power didn't disclose how much merchant tariffs dropped during the third quarter of 2017 compared to the same period a year ago. The company said it also faced higher operating costs during the quarter because of three newly acquired factories in the September quarter of last year. Adani Power's expenses totaled $9.2 million in the fourth quarter. NTPC and JSW Energy have yet to release their quarter results. Adani Power shares fell 3% after the results. Reporting and editing by Sonia Cheema in Bengaluru. $1 = 84.6170 Indian Rupees
-
Business groups and industry call for Britain and the EU's carbon markets to be linked
Over 50 business groups and companies from across Europe have called for Britain and the EU at a upcoming summit to begin talks on linking their carbon market, which will they claim help reduce costs for consumers. When leaders meet on the 19th of May, Britain will seek enhanced cooperation in security, law enforcement, and removing trade barriers between the EU. As part of a larger effort to reduce emissions and achieve climate targets, the EU and UK Emission Trading Systems charge power plants and industrial entities per ton of CO2 they emit. The letter, signed by Equinor Orsted RWE and other companies, said that the EU-UK ETS linkage will create price convergence, while avoiding distortions in competition, preventing carbon leakage, and reducing costs to both EU and UK customers. By linking the two schemes, Britain could also avoid the penalties under the European Carbon Border Adjustment Method, which will impose a fee on the importation of steel, aluminum, fertilisers and electricity to the EU from 2026. Energy groups have warned that the CBAM design could lead to an increase in the cost of exporting clean, renewable energy from Britain to Europe. This would also add to the already high EU electricity prices. The UK scheme currently trades at around 48 pounds per metric ton less than the EU where the benchmark contract is around 66 euros. Analysts say that linking the two systems will likely cause UK prices to rise in order to match those of the EU, which could increase carbon costs for UK companies on the short-term. They say that in the long term, it will be cheaper because the import levies will no longer apply. (1 pound = 0.7484 pounds; 1 euro = 0.8799 Euros) (Reporting by Susanna Twidale, Editing by Elaine Hardcastle).
-
Oil price outlook dims due to tariffs and potential OPEC+ production boost
An oil price poll on Wednesday showed that OPEC+’s decision to reduce supplies and a demand outlook clouded with trade disputes between China and the U.S. will have a negative impact on prices in 2018. In April, a survey of 40 analysts and economists projected that Brent crude would average $68.98 per barrel in 2025. This is down from the estimate of $72.94 in March. U.S. crude oil is forecast to average $65.08 a barrel, down from last month's $69.16 estimate. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that crude oil would be caught in a dilemma between fears about a slowing economy and an increase in OPEC+ production, on one hand, and support due to sanctions and low prices that could hurt production growth by high-cost producers. The U.S. has announced a series of tariffs that are tit for tat. This has dampened global economic growth. Oil prices fell to their lowest level in four years earlier this month due to concerns over tariffs. The International Energy Agency (IEA) lowered its forecast for demand growth to 730,000 barrels a day this month. The Organization of the Petroleum Exporting Countries, or OPEC, also lowered its forecast growth this month. Now, they expect growth of 1.3 millions barrels a day by 2025. Analysts said that if the OPEC+ plan to increase supply is carried out as planned, it will have a negative impact on oil prices. Sources say that several members of the group will propose to the group at its meeting on May 5 that it accelerates oil production increases in June for the second consecutive month. Some analysts say that further OPEC+ increases may not occur. Florian Grunberger is a senior analyst at Kpler. He said that while the medium-sour crude oil market in general remains tight, OPEC+'s production cuts, including revised compensation plans, are unlikely to be completed as planned by 2025 due to mounting risks for demand. HSBC stated in a note dated April 15, that lower oil prices would slow the growth of supply, but with a delay. The first to respond will be U.S. shale. "With average half-cycle breaksevens at $60 per barrel, it is inevitable that oil prices will continue to rise if they remain at the current levels of $65 a barrel Brent/lower $60s a barrel WTI ..."
-
Investors react positively to a wave of corporate earnings, boosting UK shares
British stocks rose Wednesday, as investors considered mixed corporate results. The main indexes are poised to end a volatile, but largely positive, month. They have almost recovered from the losses caused by U.S. Trade policies. The blue-chip FTSE 100 index was up 0.1% as of 1009 GMT and is on course for its 13th consecutive session with a positive result. The midcap index, which is primarily focused on domestic companies, advanced by 0.7% to reach its sixth consecutive session of gains. Despite recovering from the steep tariffs announced in early this month, FTSE 100 is still poised to report a monthly drop. The markets have stabilized recently on the optimism surrounding U.S. Trade Deals, especially with China. Details are still limited but U.S. commerce secretary Howard Lutnick mentioned a first foreign power deal. GSK rose 4.1% after reaffirming its outlook for the year 2025. The drugmaker said that it was "well-positioned" to minimize any impact from possible sector-specific tariffs. Genus, a company that develops animal protein genetics, jumped 28.3% to be the best performing midcap stock. The firm announced the U.S. FDA had approved the PRP (PRRS resistant pig) gene editing for use in U.S. food chains. The Healthcare Index gained 2%. FTSE 100 was dragged down by industrial metal miners. Glencore, a commodity trader and mining company, fell 6% following a 30% decline in its first-quarter production of copper. Anglo American and Antofagasta, two other miners, also dropped over 3% apiece. They were among the worst performers in the blue-chip index. Barclays booked a stronger-than-expected increase in first-quarter profit but its shares were down 1.6%, with the bank index shedding 2.8%. According to Nationwide, a mortgage lender, British house prices dropped 0.6% in April. This was their biggest monthly drop in more than 18 months. A property transaction discount had ended. Smith+Nephew, a medical products manufacturer, jumped 6.8% on the back of its forecasted sales and profit margins for the full year. (Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore)
-
Indian benchmarks gain monthly on hopes of a trade deal, but Pakistan tensions weigh
Indian benchmarks closed at the same level on Wednesday, but ended a solid month. Both the Nifty and Sensex posted monthly gains due to expectations of a U.S. India trade deal and new foreign inflows. The BSE Sensex fell 0.06% on Wednesday to 80,242.24 and the Nifty 50 lost 0.01% at 22,334.2. The Nifty and Sensex both gained 3.5% in April. HDFC Bank has slowed down its daily moves as it offsets the pressure of tensions with Pakistan. The banks and financial sector led the monthly gains, supported by stable earnings and foreign inflows. The IT index dropped 3% in April. This is its fourth consecutive month of declines - the longest losing streak it has had since October 2016. The optimism surrounding trade deals with the U.S. has fueled the FPIs to invest $4.4 billion into Indian stocks over the past ten sessions. This is their largest buying spree in almost two years. Both countries' officials have hinted that a bilateral agreement could be reached as soon as this week or the following. Samrat Dasgupta is CEO of Esquire Capital Investment Advisors. He said that the markets rose in April due to the influx of money from the U.S. to emerging markets because of economic uncertainty. He warned, however, that the jitters about a possible escalation between India and Pakistan may keep markets volatile in the future. According to reports on Tuesday, Indian Prime Minister Narendra Modi gave military chiefs the freedom to respond to the deadly militant attack that took place in Kashmir last week. Brokers cited a weak quarterly pre-provision and higher credit costs for the decline in Bajaj Finance, a non-bank lender. HDFC Bank rose by 0.9% and supported the benchmarks. The Indian stock markets will be closed on Thursday for a public holiday. Trading will resume Friday, May 2.
-
Vedanta, an Indian miner, doubles its quarterly profit on lower taxes and higher commodity prices
Vedanta, an Indian conglomerate that converts metals into oil, reported a fourth-quarter profit more than doubling. This was boosted by lower taxes and higher prices for zinc and aluminium. The quarter saw a 154% increase in the miner's profit that was attributable by the owners to the company, to 34.83 Billion Rupees (around 412 Million Dollars). The company reported that its normalised tax rates dropped from 46% to 28% in the previous quarter. This was primarily due to changes in profit mix, and a decrease in the tax rate for a foreign subsidiary. According to data from brokerages, the overall revenue increased by 14%, reaching 397.89 billion rupies. This was largely due to higher prices of aluminium and zinc which rose by 19.6%, 17.5% and 19.6% respectively, during the quarter. Vedanta’s aluminium division is the largest in India, and accounts for about 40% of its revenue. Zinc, its second biggest business, is followed by copper. Copper prices rose 9.3% during the third quarter. Earnings before interest, tax, depreciation, and amortization (EBITDA), which are the company's profits, rose by 30% to 116.18 bn rupees. The strong commodity prices, as well as cost-saving measures, have helped to increase the EBITDA margin from 30% to 35%. Vedanta subsidiary Hindustan Zinc announced a higher profit for the fourth quarter, but its finance chief warned of price volatility because of uncertainty over U.S. Tariffs. ($1 = 84.6170 Indian Rupees) (Reporting and editing by Savio d'Souza in Bengaluru)
-
Gold continues to fall as dollar gains and trade tensions ease
The gold price fell on Wednesday for the second consecutive session, mainly due to a stronger dollar, and signs that tensions between the U.S. and China have de-escalated. Meanwhile, attention was focused on a number of economic reports from the U.S. scheduled this week. As of 1017 GMT, spot gold was down by 1.3%, at $3,274.10 per ounce. But bullion is on course to record its fourth consecutive month of gains, with a gain of nearly 5% in April. U.S. Gold Futures fell 1.5% to $3283.50. The market is experiencing high volatility due to the competition between two-way flows. Ross Norman, a independent analyst, said that it appears gold is entering a period of consolidation. The dollar index increased by 0.2% in comparison to its rivals. This makes bullion prices more expensive for holders of other currencies. In a recent note, Frank Watson, a market analyst with Kinesis Money said that gold prices were lower and more stable as the market took in what appeared to a de-escalation in the U.S. led trade war, which has shaken the financial markets over the past few weeks. Gold's unwillingness to fall much further can be interpreted as a sign of the continued volatility in the financial markets amid the uncertainty surrounding U.S. Trade Policies and their impact on the global economy. On Tuesday, U.S. president Donald Trump signed two orders to ease the impact of his auto tariffs. His trade team also announced its first agreement with a trading partner abroad. Bullion, which is a safe haven against financial and political turmoil, reached a record-high price of $3,500.05 an ounce last April 22, as investors sought to escape the global economic turmoil. Investors are likely to focus on a number of economic reports from the United States, such as the personal consumption expenditures (PCE), which will be released later today, and the non-farm employment report, due on Friday. These data could provide more insight into the Federal Reserve’s outlook for interest rates. Silver spot fell 2.1%, to $32.27 per ounce. Platinum dropped 1.1%, to $966.86, and palladium was down 0.6%, to $929.44.
Indian firms are preparing to raise debts of $1.5 billion after RBI liquidity boost.
Indian companies have increased their plans to borrow money from the market, led by the state-run companies. The central bank's new bond purchasing scheme has surprised the markets and driven borrowing costs down.
Four Indian state-run companies - Power Finance Corp., NHPC. IREDA. and HUDCO – are set to raise a total of 125 billion Rupees ($1.5billion) and have invited offers on Wednesday and Friday.
They didn't immediately respond to an email asking for comment.
In the first week of this month, state-run companies raised 393 billion rupees through bonds.
Suresh Darak is the founder of Bondbazaar.com, an online trading platform for bonds. He said: "The recent rush of state-run companies issuances looks like a timely move to take advantage of softening yields following Reserve Bank of India’s announcement of bond buying."
The RBI announced on Monday night that it will buy bonds worth 1,25 trillion rupees via open market purchases. In April, they bought bonds worth 1,20 trillion rupees.
Since then, AAA-rated corporate bonds yields across curves have eased around 5-10 basis point and spreads between government bond yields has shrunk.
Darak stated that "by front-loading their borrowings, companies lock in lower funding costs. (It) reflects intelligent liability management."
State-run companies have raised 518 billion rupees including these issuances. This is more than five-times the 100 billion rupees they raised in April 2024.
In the first five weeks, the companies raised more than half of their total funding.
"Issuers are eager to take advantage the falling yields and this is why they are so rushed to issue debt," Umesh Kahandelwal, chief executive officer of Tipsons Group, said.
To put things in perspective, the total amount raised by debt fundraises during the first five weeks fiscal 2025 was 450 billion rupees.
Non-banking finance firms such as Shriram Finance, Bajaj Finance, and others have been major issuers.
PFC, one of the many borrowers to hit the market in the past week, is raising 35 billion rupees via zero-coupon deep discount bonds with a maturity of 10 years and 1 month. The traders are expecting a strong demand for this issue. $1 = 85,141 Indian Rupees
(source: Reuters)