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As investors profit from the rally, gold prices drop.
Gold reversed its course on Thursday, falling about 1% as 'investors booked their profits following softer than expected U.S. inflation data that slashed the expectations of Federal Reserve rate increases in the near future. Spot gold dropped 0.7% at $4,373.29 an ounce as of 0838 GMT. It had risen about 1% in the early Asia trade to its highest level since June?5. U.S. Gold Futures for December Delivery fell 0.8% per ounce to $4,430.20 Ross Norman, an independent analyst, said that "gold has reversed its recent increase, sliding below important chart supports at $4,387, as profit-taking sets in after a stellar run." Norman stated that the market had over-positioned itself in anticipation of the soft inflation data. "Having bought the rumour, the market is now selling it as fact," Norman said. Gold is eager to resume its bull run despite setbacks but this rally is currently on hold as geopolitics favours the dollar at the moment, he said. The Fed is unlikely to feel any new urgency to increase interest rates in the next month, after data released on Wednesday showed that inflation had cooled for a second consecutive month on an annual basis. In line with expectations, the consumer price index increased by 3.4% over the past 12 months, compared to 3.5% in June. The focus now shifts to the Producer Price Index due later that day for further evidence of?moderating prices and reduced prospects for U.S. interest rate hikes in the near term. According to the CME FedWatch Tool, traders are only pricing in a 36% chance of a hike during the September meeting. This is down from the 55%?seen just a week ago. Gold is more attractive at lower rates because it does not yield interest. Spot silver, on the other hand, fell by 1.36% at $64.41 an ounce after reaching its highest level since June 22 during the previous session. Palladium dropped 2.16% and platinum fell 1.93%. (Reporting and editing by Mrigank Dhaniwala; Swati verma and Dharna bafna in Bengaluru)
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India's Tata trusts announces a panel that will select the next Tata Sons Chairman
On Thursday, after N. Chandrasekaran announced that he would not seek re-appointment when his term ends in February, a panel will make a recommendation for the next chairman of India’s largest conglomerate Tata Sons. Tata Trusts announced that the Sir Dorabji Tata Trust - one of two charitable trusts owned by Tata Sons - has passed a decision to set up a selection panel "as quickly as possible". According to the Tata Sons Annual Report, the Sir 'Dorabji Tata Trust' and the Sir "Ratan Tata Trust" collectively owned more than 50% of Tata Sons at the end of March. Tata Trusts stated that they would provide full support for Tata Sons to ensure a smooth and orderly leadership transition, in line with the long-term values and interests of Tata Sons and the Tata Group. Noel Tata - the chairman of Tata Trusts - opposed Chandrasekaran's reappointment as chairman earlier this year. Chandrasekaran's departure was attributed to the lack of support from the board.
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Singapore's oil products stocks fall to their lowest level in two weeks
Official data showed that oil product inventories in Asia’s main trading hub, Singapore, hit a 2-week low as residual fuel stocks plummeted. However, a recovery of middle distillate stocks capped the declines. Enterprise Singapore data shows that total onshore oil products stocks fell 2.6% in the past week, to 38.44 millions barrels. Middle East outflows into Asia were slowed by ongoing tensions on key Gulf waterways. RESIDUAL FUELS STOCKS ARE WELL BELOW THE AVERAGE The decline in residual fuel inventories was largely due to lower net imports, which pushed the figure down 12.0%. Some sellers also wanted to sell their cargoes in order to avoid rollover costs. Brazil was the largest supplier of residual fuels, which fell by 55.4% and amounted to approximately 419,000 tonnes. China was the number one destination for exports, which fell 33.4%. Market sources said that spot markets for fuel oil were supported by limited supplies of fuel oil. LIGHT DISTILLATES DRAW BACK LOWER The inventories of light distillates, which include naphtha, gasoline and other products, have fallen to 12,193 barrels due to net exports. Exports reached approximately 309,000 tons, whereas imports totaled about 83,000 metric tonnes (701 350 barrels). Exports net totaled 226,000 tons. Australia led the way in terms of gasoline exports, with 118,000 tons. Indonesia was close behind at 104,000 tons. South Korea led the gasoline inflows with nearly 53,000 tonnes, followed by China with about 30,000. The imports of naphtha were 164,000 tons (1,5 million barrels), with the largest share coming from?Russia (approximately 125,000 tons), followed by Malaysia (27,000 tons). Imports from the Middle East are absent. Singapore exported around 213,000 tons naphtha. Its shipments to Taiwan were?nearly 77, 000 tons, and Thailand was?roughly 71,000 tons. This makes it a net importer of about 49,000 tons. MIDDLE MIDDLE?DISTILLATES REBOUND The middle distillate stock rose to a new high of 9 million barrels, a more than one-month old record. This was due to the decline in diesel exports. Net exports for?diesel, gasoil and lubricants fell around 14% from week to week despite a?decline of 87% in total imports. This week, diesel and gasoil cargoes inflows came exclusively from China, while the outflows were mainly to Australia, Philippines, and Sri Lanka. Jet fuel and kerosene net exports increased by 36% from week to week. Imports mostly came from Thailand. The market has seen more barrels from China in recent weeks, as the oil majors continue to export after easing their restrictions for the second month.
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Gulf markets are easing as U.S. - Iran tensions and the Hormuz disruption factor in
Investors weighed stalled attempts?to resolve the U.S. - Iran conflict, the continued disruptions of?shipping in the Strait of?Hormuz 'blockade?and a softer outlook for oil demand. Iran and the United States are still at odds on a permanent solution. A senior Iranian source said that there has been no progress in reviving or setting a timeline for the implementation of the June interim agreement. The prospects for a breakthrough have been further dampened by President Donald Trump's renewed criticism of Iran's leaders. Meanwhile, fresh attacks against shipping on Tuesday highlighted the dangers facing regional trade. The energy outlook was further impacted by a surprise increase in U.S. crude 'inventory, combined with lower consumption 'forecasts' from OPEC, the International Energy Agency and other groups. Saudi Arabian Mining Co. lost 0.9%, while the benchmark index in Saudi Arabia fell by 0.1%. Saudi Aramco, the world's largest oil company, lost 0.2%. Brent futures fell $1.22 or 1.4% to $87.82 per barrel at 0750 GMT. Analysts say that the kingdom's crude oil exports to the Red Sea are becoming more difficult to track, as tankers have disabled their transponders in order to reduce the risk of Houthi attack. Dubai's main stock?index fell 0.1% due to a drop of 1.1% in utility company Dubai Electricity?and Water Authority. In Abu Dhabi the index increased by?0.2%. The Qatari Index fell by 0.4% due to a 3.5% drop in the petrochemical manufacturer Industries Qatar.
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Metal prices fall due to stronger dollar
The dollar strengthened on Thursday amid a?strong demand from investors for U.S. Treasuries following the release of a benign U.S. consumer inflation report?for the month of July. Benchmark three-month?copper?on the London Metal Exchange fell 0.83% to $14,015 per metric ton at 0720 GMT. Shanghai Futures Exchange's most traded copper contract fell 0.7%, to 107.410 yuan per ton. Demand for U.S. treasuries was solidafter the release of mild U.S. inflation data ?for July, supporting the dollar and weighing on greenback-denominated commodities by making them more expensive ?for buyers using other currencies. Inventory outflows from LME supported copper prices amid uncertainty about potential U.S. tariffs for refined copper imports. David Wilson, BNP Paribas' head of commodity strategy, said: "Still, a lot metal is being sucked in to the U.S." Yangshan copper premium in top metals consumer?China The red metal was further pressured by the fact that, which measures the country's demand for imports, dropped to its lowest level in four weeks. Benchmark LME aluminum fell by 1.19%, and SHFE aluminium dropped by 1.05%. This is the second consecutive drop for the light metal after a seven session rally. The Middle East is a major supplier of aluminium globally, and it's expected that some of the war-damaged smelting capacities will be restored. This helped ease supply concerns. The 'impasse' in the peace negotiations between the U.S.A. and Iran threatens to restrict traffic through the Strait of Hormuz. Wilson stated that there is "more uncertainty" about a possible peace agreement, even though smelters from the Gulf have been exporting material through Saudi Arabia and Oman. Zinc?lost? 1.38% on the LME, while lead?lost? 0.6%, Nickel?lost? 0.96%, and Tin?lost? 0.72%. Zinc lost 0.51% among SHFE metals, while nickel dropped 0.41%. Tin also lost 0.73%. Lead was the only base metal to gain 0.31% in SHFE. (Reporting and editing by Harikrishnan Nair, Rashmi aich and Solomon Cefai)
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Pandora CEO says new jewellery collections drive growth
Berta de 'Pablos Barbier, CEO of Pandora, said in an interview with BusinessWeek on Thursday that the new jewellery collections are driving growth, despite the fact that consumer sentiment is still low in America. "What we do in terms of distinct newness works, so we deliver growth where we launch new collections that inspire and are good for consumers," said de Pablos Barbier, who was previously the chief marketing officer and has held her top position since January 1. Pandora shares rose 4% on the opening bell after the company announced stronger-than-expected second quarter sales and raised its profit forecast for 2026 thanks to U.S. tax refunds. A Different Aesthetic De Pablos Barbier's strategy is to launch new designs that have different aesthetics as well as a wider range of metals. This will diversify Pandora's core business of silver charm bracelets. The Pandora Wonders collection, which features pearl and gold charms in the shape of a frog, pufferfish or mushroom, was launched in Paris in July during Haute Couture Week. Pandora has switched to platinum-plated items to reduce its reliance on silver following a price surge last year. De Pablos Barbier said that yellow-plated products were one of Pandora’s main sources of growth, as gold jewellery is becoming more popular. Citi analyst Thomas Chauvet wrote in a report that Pandora's profitability is difficult to predict due to the volatility of precious metals prices. However, the company hedged its exposure to silver for 2026. Chauvet said that "near-term confidence is further limited due to an uncertain consumer background?in North America (85%) and Europe, as well as execution risks associated with the planned shift...to platinum-plated collection." HEATWAVES IMPACT sHOPPING De Pablos-Barbier stated that extreme temperatures in Europe this summer affected store traffic, and drove shoppers to the internet. She said, "I think people stayed at home and didn't go out to the streets." Pandora's comparable sales in Europe and North America fell in the second quarter, but its overall organic growth of 3% was higher than the analysts' expectations, largely due to the opening of new stores. The company reported that in the U.S. the weaker sentiment among consumers with lower incomes continued to affect store traffic. Helen Reid is the reporter. Mark Potter, Jan Harvey and Helen Reid edited the report.
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Romanian Nuclearelectrica shuts down the only working nuclear reactor
Nuclearelectrica, the state-owned Romanian 'nuclear energy producer', has begun the process of 'disconnecting their sole working reactor from power grid due to the record low Danube River levels. It was forced to close one reactor due to the drought in the river by late July. Two 706 megawatt reactors are located in Cernavoda, on the Danube. They account for one fifth of the power output in the country. Romania declared an energy emergency in August, and asked companies and households to reduce their consumption during evening peak hours. It said that the energy ministry had 'turned on a 330 megawatt lignite fired power plant. They also added that they were relying on increased wind generation and hydropower, based on the available?water? in reservoirs to make up for shortages. It said that due to slightly cooler temperatures at evening peak hours, the power demand was expected to drop. The ministry stated in a statement that the national grid had a capacity to import electricity across borders of approximately 4,000 megawatts. "All European operators are aware of the regional energy crises and are working together to ensure that all grids affected by bad weather conditions can be supplied safely." The government has prepared a system to cut off power to industrial consumers in phases and with advance notice, if necessary. The government had tried to avoid the closure of the reactor by taking 'unprecedented steps, such as detonating an obstruction made from rocks, digging the riverbed, and sinking barges filled with rock in the 'Danube, to redirect the flow to the area around the power plant. This summer, Europe was hit by weeks of record-breaking heat, accompanied by destructive wildfires. These conditions put enormous pressure on the power supply system, shipping, and public health. (Reporting and editing by Barbara Lewis; Luiza Ilie)
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SMA Solar's backlog surges due to energy storage demand, boosting shares
SMA Solar announced?on Friday that its order backlog has grown by a half over the last year. This is due to demand for flexible energy-storage systems in conjunction with the booming AI adoption, and expansion of data centers. The German supplier for solar power equipment, battery parts and other electrical components reported an order backlog of around EUR1,75 billion ($2,02 billion) at the end of June. This is a 50% increase compared to last year. SMA shares, which have appreciated by roughly 70% since January, rose 5.8% in the early Frankfurt trading at 0602 GMT. Grid bottlenecks in Europe, North America and Australia are reducing transmission volumes while U.S. electricity consumption is on the rise. In a press release, CEO Jurgen Reinert stated that the demand for reliable and sustainable energy is increasing globally, driven by data centers, AI applications, and other factors. The company reported a broadly stable half-year revenue of EUR687 millions ($792million). The sales of its household and business divisions grew by a quarter. This was boosted mainly by the demand for solar panels on rooftops as consumers sought to?limit?the impact?of high fuel prices. The utility-scale division saw a 5% drop year-on-year, mainly because it passed a U.S. Tariff?reimbursement?of EUR22.3 to its customers. The strong order backlog, which is largely driven by the?unit, suggests future sales growth. SMA reported preliminary earnings for the?second quarter ahead of expectations, and raised its core profit goal to EUR180-230 million.
First Gen Philippines eyes take-private deal with KKR valued at $2.7 billion
First Philippine Holdings and the power producer First Gen Corp said that a'mandatory offer' from KKR to buy First Gen Corp in the Philippines would be worth around 165.44billion pesos (2.70 billion dollars).
First 'Gen revealed on Wednesday that KKR offered to buy an 8.43% share of the company from First 'Philippine.
The power producer said that the stake purchase would trigger a mandatory offer by KKR for the entire public float, which is?11.67% First?Gen?s outstanding 3.60 billion common shares. The tender offer will support a petition for First Gen to be delisted from the Philippine Stock Exchange.
KKR will offer approximately 46 pesos for each share in the tender offer.
KKR has declined a???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Request for comment.
First Gen's shares rose?up to?9.5% on Thursday to 29.95 pesos, continuing the previous session gains of 28.4% which took them up?to their high since early March 2022.
First Philippine, which owns a 67.84% stake in First Gen, has gained as much as 6% today.
(source: Reuters)