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Senegal announces recovery plan relying on domestic funding
On Friday, Prime Minister Ousmane sonko unveiled a plan to revive the economy of Senegal. He pledged to finance 90% through domestic resources in order to avoid further debt. Senegal is facing financial difficulties and criticism over misreporting of debt. The plan aims to stabilize the finances of this West African nation, which began producing oil and natural gas last year. The IMF has frozen its loan program because the country is struggling with hidden debts worth billions of dollars from the previous administration. Sonko, during a presentation at the capital Dakar, said: "We have identified over 4.6 trillion CFA Francs ($8.16billion) in resources available between 2025-2028 without increasing the debt of the state." The goal of the plan is to reduce the deficit in the budget to 3% GDP by 2027, down from 12%. The government has proposed a number of measures, including merging and shrinking state institutions. This, according to the government, could save 50 billion CFA Francs. It also proposes eliminating tax exemptions for certain sectors, especially in the digital economy, which is largely untaxed. He gave mobile money and online gaming as examples. Visa fees will be introduced to visitors from non-African states and African countries that require visas from Senegalese citizens. The fees for visas are expected to raise 60 billion CFA. Sonko stated that the government anticipates raising 884 billion CFA Francs through the renegotiation and renewal of contracts in the oil, mining and energy sectors. An additional 200 billion CFA will be raised by the renewal of the telecom license. The government is easing access to land titles in order to attract investment. It will also raise the age limit on imported vehicles, a demand made by the diaspora of Senegal. Senegal will continue to mobilize resources and seek out external partners for recycling existing assets. Domestic market in local currency. Sonko says that foreign currency debt should target hydrocarbons, oil and gas, mining and other sectors. He added that the reforms will also allow the government to better target social programs and subsidies to meet the needs in the population. Since years, the IMF has called on Senegal's government to reduce what it calls expensive and inefficient subsidies for energy. In March, it estimated that these subsidies could amount to up to 4 percent of GDP. The problem with these subsidies, is that they don't benefit the most vulnerable households. In an interview with the IMF mission head Edward Gemayel in Dakar, in March, he said that most of these subsidies go to wealthy households. He added that the Senegalese should understand why the cuts were necessary and be informed of the reasons for the reductions. Reporting by Anait Miridzhanian and Ayen deng Bior, editing by Bate Felice, Robbie Corey Boulet and Mark Heinrich
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Codelco Chile says it is still searching for missing workers at El Teniente Mine
Andres Musik, El Teniente’s general manager, said that Codelco had not yet contacted five workers who were missing at the Andesita Unit of El Teniente following a seismic event which killed one person. He said that Codelco expected the aftershocks to subside in the next twelve hours, which would allow it to start efforts to contact the workers. Music stated in a recent press conference that "the event we recorded yesterday was one of, if not the biggest event" the El Teniente Mine has ever experienced. He noted that the incident was a magnitude 4.2 earthquake. Andesita was one of Codelco’s newest projects, located at the El Teniente complex. It was scheduled to start production in the second half of this year. Music didn't address how the incident will affect Codelco’s output in the producing areas of mine. Codelco will report its financial results on Friday as originally scheduled. Codelco is investigating the cause of the accident, according to music. He said that although explosives or drilling did not cause the incident, mining activities can sometimes trigger seismic events in El Teniente. Chile is also prone regularly to earthquakes with varying magnitudes.
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Gold gains nearly 2% after US payrolls data boosts hopes of rate cuts
Gold prices rose by almost 2% on Friday, reaching a new high. Weaker-than-expected U.S. employment data increased expectations of lowered Federal Reserve rates, while fresh tariff announcements sparked demand for safe-haven assets. As of 0931 am, spot gold rose 1.9%, to $3,351.61 an ounce. ET (13.31 GMT), achieving its highest level since the 25th of July. Bullion has gained 0.3% this week. U.S. Gold Futures increased 1.7% to $3405.20. "Payrolls came in below expectations but slightly higher than what the market had projected. This gives a higher probability that the Federal Reserve (rates will be cut) later this year, said Bart Melek. "We have a situation in which we continue to face inflationary pressures from wages and tariffs, but the job numbers are still disappointing." In that case, if (rates) are cut by the Fed, it will have a material positive impact on gold. In a low interest rate environment, gold, which is a non-yielding investment, performs well. The Bureau of Labor Statistics of the Labor Department reported that U.S. employment growth was slower than expected in July. Nonfarm payrolls increased by 73,000 last month after increasing by 14,000 jobs in June. The market participants now expect two rate reductions by the end of the year, starting in September. Fed Chair Jerome Powell said it was too early to predict whether the central banks interest rate target will be cut in September. Trump's latest tariffs on dozens of countries, including Canada and Brazil, have sent the global markets into a tailspin as nations pushed to negotiate better deals. Gold is a safe-haven during times of economic and geopolitical uncertainty. Silver spot was up by 1.1% at $37.14 an ounce. Platinum rose 0.6% to 1,296.58 while palladium rose 2.3% to $1,217.91. (Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore)
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BYD's production in July fell for the first time in 17 months as BYD expansion spree slowed
BYD’s vehicle production dropped 0.9% from a year ago in July, ending a 16 month growth streak which had catapulted BYD into the top spot for electric vehicles makers worldwide. BYD produced 317,892 plug-in hybrids and electric vehicles (PHEVs), globally, last month. Sales increased 0.6%, to 344 296 vehicles. This is a sharp slowdown from the 12% growth in June. In July, EV production and sales grew compared to last year. However, PHEV production and sales fell by 24.6%. In February 2024 the company's production shrank, as did the industry, due to the timing and length of the Chinese Lunar New Year, which was in February, versus January the year before. In February 2024, sales also decreased. BYD is the largest Chinese competitor to Tesla. Both production and sales reached record highs in 2024's fourth quarter before declining this year. BYD, the world's largest EV seller, has overtaken the U.S. electric vehicle specialist with its 41% share of sales in the last year. BYD has been a part of a brutal price war on the world's biggest auto market. It has slowed down its production in recent months, by cutting shifts in some factories in China, and delaying plans to add more production lines. This was reported in June. Reporting by Qiaoyi Li and Brenda Goh, Editing by Susan Fenton and Frances Kerry, Emelia Sithole Matarise.
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Global shares are in the red following US jobs data and Trump's tariffs
The global stock market remained negative on Friday, after weaker-than-expected U.S. employment data led markets to increase their bets that the Federal Reserve would cut rates. This followed earlier losses caused by U.S. president Donald Trump's latest trade war salvo. Nasdaq and S&P futures fell about 1% following the data release, roughly in line with their previous levels. The pan-European STOXX 600 dropped 1.4%. This brings its weekly decline to around 2%, and puts it on course for its largest weekly drop since Trump's first major tariff wave on April 2. According to a survey by economists, the U.S. economy created 73,000 new nonfarm jobs in July. This was below the 110,000 expected. The unemployment rate increased to 4.2%. Brian Jacobsen is the chief economist of Annex Wealth Management. He said, "This report cannot be spruced up." Last year, the Fed made a mistake by not cutting rates in July. They then cut to make up for it at their next meeting. The Fed will likely be forced to do the exact same thing again this year. Money market traders increased their bets on a Fed rate cut at its meeting in September. According to LSEG, the markets indicate a 90% probability of a rate reduction next month. This compares with a 45% chance before the jobs report. The softening labour market data came a day after Trump's executive order, which imposed tariffs of 10% to 41% for imports into the United States from a number of major trading partners. The tariffs on India's exports to the United States were 25%, Taiwan's at 20%, Thailand's at 19%, and South Korea's at 15%. He also raised duties on Canadian products to 35%, from 25%, for all goods not covered by the U.S. Mexico-Canada trade agreement. But he gave Mexico a reprieve of 90 days from higher tariffs in order to negotiate a wider trade deal. Wei Yao is the chief economist and research head in Asia for Societe Generale. The MSCI broadest Asia-Pacific index outside Japan dropped 1.5% this week, making the total loss for the week approximately 2.7%. The Nikkei index in Japan closed down 0.7%, the blue chips in China ended up 0.5% lower and Hong Kong’s Hang Seng lost more than 1 %. The U.S. Dollar had found some support earlier on the fading prospect of imminent U.S. interest rate cuts but reversed its course after these data. The dollar index (which measures the currency in relation to six other currencies) was down by 1% for the day. After the data, the yen strengthened to 148.71 dollars per yen. It had fallen below 150 for the first since April. The Bank of Japan kept interest rates unchanged on Thursday, and raised its expectations for near-term inflation. However, Governor Kazuo ueda was a bit dovish at the press conference. The yield on two-year Treasury bills, which is sensitive to changes in expectations of interest rates, fell 17.5 basis points, to 3.7761%. Benchmark 10-year yields fell 9 basis points to 4.27%. Oil prices continue to drop on commodity markets after Thursday's 1% decline. Brent crude oil prices fell by 0.3%, to $71.55 a barrel. U.S. crude dropped 0.1%, to $69.22 a barrel. Spot gold increased 1.3% to $3.332 per ounce.
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Sources say that US sanctions on Russian oil force ships to divert away from India
Trade sources and LSEG data show that at least two ships loaded with Russian crude oil bound for refiners located in India were diverted due to new U.S. Sanctions. This week, the U.S. Treasury Department imposed sanctions against more than 115 Iran linked individuals, entities and ships. Some of these vessels are involved in transporting Russian crude oil. Donald Trump, the U.S. president, has warned that he will impose 100% tariffs on all oil purchases from Moscow unless Russia signs a peace agreement with Ukraine. Trade sources reported that three ships, the Aframaxes Tagor, Guanyin, and Suezmax Tassos were to deliver Russian oil into Indian ports in this month. The U.S. has imposed sanctions on all three ships. According to Russian port data and trade sources, Tagor and Guanyin were bound for ports on the west coast of India. India's Russian oil supply has been hit by the tighter sanctions from the West, which are aimed at cutting Russia’s oil revenues, as they believe that this money is being used to fund its war in Ukraine. India buys over a third its oil requirements from Russia. Data shows that Tagor has now diverted to Dalian, China, and Tassos to Port Said, Egypt. Guanyin continues to head towards Sikka, which is a port that Reliance Industries Ltd. and Bharat Oil Corp Ltd. use. Indian Oil Corp., which was supposed to receive the Tagor shipment and BPCL have not responded to emailed requests for comments. Silver Tetra Marine, owner of Guanyin and Zulu Shipping (linked to Panama flagged Tassos Tagor) and Silver Tetra Marine, owner of Guanyin, could not be reached for comment. Both companies are subject to U.S. sanctions. Reliance's spokesperson stated that "neither vessel, Guanyin or Tassos will be coming to us". Reliance had previously purchased oil from Guanyin. According to LSEG, two other vessels, Achilles, and Elyte are preparing to unload Russian Urals to Reliance. These two vessels have been sanctioned both by Britain and the European Union. India has condemned EU sanctions.
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Sources say that US sanctions have forced vessels carrying Russian oil to divert away from India
Trade sources and LSEG data show that at least two ships loaded with Russian crude oil bound for refiners located in India were diverted due to new U.S. Sanctions. This week, the U.S. Treasury Department imposed sanctions against more than 115 Iran linked individuals, entities and ships. Some of these vessels are involved in transporting Russian crude oil. Donald Trump, the U.S. president, has warned that he will impose 100% tariffs on all oil purchases from Moscow unless Russia signs a peace agreement with Ukraine. Trade sources reported that three ships, the Aframaxes Tagor, Guanyin, and Suezmax Tassos were to deliver Russian oil into Indian ports in this month. The U.S. has imposed sanctions on all three ships. According to Russian port data and trade sources, Tagor and Guanyin were bound for ports on the west coast of India. India's Russian oil supply has been hit by the tighter sanctions from the West, which are aimed at cutting Russia’s oil revenues, as they believe that this money is being used to fund its war in Ukraine. India buys over a third its oil requirements from Russia. Data shows that Tagor has now diverted to Dalian, China, and Tassos to Port Said, Egypt. Guanyin continues to head towards Sikka, which is a port that Reliance Industries Ltd. and Bharat Oil Corp Ltd. use. Indian Oil Corp., which was supposed to receive the Tagor shipment and BPCL have not responded to emailed requests for comments. Silver Tetra Marine, owner of Guanyin and Zulu Shipping (linked to Panama flagged Tassos Tagor) and Silver Tetra Marine, owner of Guanyin, could not be reached for comment. Both companies are subject to U.S. sanctions. Reliance's spokesperson stated that "neither vessel, Guanyin or Tassos will be coming to us". Reliance had previously purchased oil from Guanyin. According to LSEG, two other vessels Achilles and Elyte are preparing to unload Russian Urals to Reliance. These two vessels have been sanctioned both by Britain and by the European Union. India has condemned EU sanctions.
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Canada's Imperial Oil reports a fall in profit for the quarter due to lower crude prices
Imperial Oil, a Canadian oil company, reported a drop in its second-quarter profits on Friday. The fall was attributed to lower crude prices as well as a decrease in refinery output. Benchmark Brent crude oil prices fell during the quarter of April-June compared to a similar period a year ago, due to a weaker global demand, increased market volatility caused by tariffs, and an increase in oil supply from OPEC+. Calgary-based company's throughput volume, or amount of crude processed per day, dropped to 376,000 barrels a day in the second quarter from 387,000 bpd one year earlier. The refinery utilization rate fell to 87% from 89% during the same quarter of last year. Imperial CEO John Whelan has announced the opening of a facility to produce renewable diesel fuels that are lower in emissions for the Canadian transportation industry. Imperial said that there is a lot of uncertainty about the possible effects of tariff-related actions on Imperial, its customers and suppliers. The company plans to monitor global trade and mitigate any potential impacts. The upstream production in the quarter of April-June was 427,000 barrels equivalents per day (boepd), which is higher than the 404,000 boepd from a year ago. Imperial Oil is owned in majority by U.S. oil major ExxonMobil The company's quarterly profit was higher than analysts' expectations on Friday. The company reported that its net income dropped to C$949 (684.31 millions), or C$1.86 a share, for the quarter ending March 31 from C$1.13 Billion, or C$2.11 a share, one year ago.
Enel's profit in Italy grew by a hefty 1 billion euro in the first half of this year
Enel, the Italian utility, reported an increase of 1% in its core ordinary profit for the first half when asset sales are excluded. It also announced that it will launch a share-buyback program worth up to one billion euros in later this year.
EBITDA (earnings before interest, tax, depreciation, and amortization) was 11.5 billion euro, which is above the analyst consensus of 11 billion euros.
Enel reported a normal EBITDA between January and June of 11,4 billion euros.
Enel stated that lower energy prices for end-customers and renewables in Italy affected its domestic margins. However, the positive impact from its Spanish business as well as grids in Italy or Argentina was more than offset.
Enel has confirmed that it expects an EBITDA between 22.9 and 23.1 billion euro and a net income between 6.9 and 7.9 billion euro for the entire 2025 period.
The Group's ordinary net profit rose by 4.4%, to 3.8 billion Euros, exceeding analysts' expectations of only 3.6 billion Euros.
The net financial debt at the end June was 55.5 billion euro, down from the 55.8 billion euro forecast at the end 2024.
Enel's shareholders granted the board in May the authority to launch an share buyback program worth up to 3,5 billion euros to reward investors along with dividends.
The company announced that the first tranche will be paid from August 1, until December 31, at the latest. (1 dollar = 0.8744 euro) (Reporting and editing by Elvira pollina, Alvise Armellini, Keith Welr)
(source: Reuters)