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Marico, India's largest company, misses profit forecasts as costs outweigh price-led growth
Indian consumer goods maker Marico reported a smaller-than-expected quarterly profit on Friday, as higher raw material costs and marketing spends overshadowed price increases-led growth. Parachute Coconut Oil's profits were impacted by rising prices for raw materials such as copra and vegetable oils. The company is also facing intense competition, and continues to invest heavily in marketing and advertising. Marico's third-quarter expenses increased 17.7%, to 23,18 billion rupees (267.54 millions dollars) The net profit for the year was 3.99 billion rupees (46.05 millions), up from 3.83 billion rupees. According to data compiled and analyzed by LSEG, analysts expected a profit in the range of 4,02 billion rupees. The revenue, however, was 27.94 billion rupees. This is a 15.4% increase from the previous year, mainly due to an improved rural demand and higher product prices. Marico announced that it would increase the prices of its products to compensate for an expected "firmness in commodity prices". It noted that copra prices were up 38% during this financial year. The company also stated that its revenue will increase by double-digit percentages in the medium term, as it increases its market share across all its brands. Hindustan Unilever, the industry leader and Dove soap maker, reported results below expectations last week. They also forecast further margin pressures.
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Asia Gold-Indian demand muted amid record prices, with eyes on budget
Indian gold demand was subdued as prices surged and buyers awaited the federal budget. Trading activity in other Asian hubs remained muted because of the Lunar New Year holiday. This week, Indian dealers offered a discount Up to $35 per ounce discount on official domestic prices compared with the $38 reduction last week. The retail demand has been minimal because of the price spike. Jewellers have stayed away from the market because they don't want to purchase before the budget is set," said Chanda Vekatesh of CapsGold, a bullion merchant based in Hyderabad. A Mumbai-based dealer from a bullion import bank said that at the beginning of the week, discounts were high. However, they dropped sharply by the end of the day as traders began to speculate about a possible duty increase in the budget. Nirmala Sitharaman, Finance Minister, will present her budget for the next financial year on February 1, after a reduction of import taxes on gold was made in the last budget. The domestic gold price in India reached a record-high of 82210 rupees for 10 grams. Meanwhile, the international spot gold price hit a new high of 2,800.99. Bullion was traded in Japan A discount of $3.5 or a premium of $1. A Tokyo-based trader said that despite gold's higher price, investors still look for the opportunity to buy dips. Another trader said that such high prices could impact on the investment and physical demand of bullion. This week, the markets in China and Hong Kong are closed for Lunar New Year. Swiss customs data revealed that gold exports to China, the top consumer of Swiss gold, fell by over 74% from November. ($1 = 86.2720 Indian rupees). (Reporting and editing by Shash Kuber in Mumbai, and Rahul Paswan from Bengaluru)
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Take Five: the big Trump tariff countdown
The deadline for President Donald Trump to impose tariffs is fast approaching, while the U.S. releases data on jobs and the markets gauge the new AI landscape before major tech companies report. Bank of England is deciding on interest rates, and lenders across Europe are also publishing their results. Kevin Buckland, Saqib Ahmad, Lewis Krauskopf, and Amanda Cooper, in London, provide a guide to global markets for the coming week. 1/T DAY Everyone wants to know the severity of Trump's tariffs. From currency traders and bond investors to Fed officials and other foreign powers. Trump's promise to impose 25% tariffs on Canada and Mexico until illegal migrants and fentanyl are stopped from crossing their border could be the most telling sign so far. Tariffs will be applied to a combined trillion dollar of U.S. bound shipments per year. Canada has launched a crackdown on fentanyl to head off any possible action. Mexico, in December, made the largest fentanyl arrest in its history. China is arguably a more interesting case. Anyone can guess whether the 10% tariffs that have been mooted will also be in place for Saturday. The White House confirmed that it is still seriously considering the possibility, despite Trump saying he did not want to use tariffs against China after a "friendly phone call" with Xi Jinping. Should I stay or should I go? Investors are assessing the prospect of further interest rate reductions and the potential impact that new Trump Administration policies may have on the labour market. The U.S. monthly jobs report is due to be released on February 7. The blowout December jobs report led to doubts over whether the Fed could ease its monetary policy any further. This sent Treasury yields soaring. Inflation data that were encouraging did calm the market, but a strong January jobs report may change everything. Fed Chair Jerome Powell has said that he will not cut rates until inflation and employment data indicate it is appropriate. Trump's agenda on the labour market is a big unknown. It includes a crackdown on immigration and plans to reduce the federal workforce. The White House offers 2 million federal workers financial incentives to leave. 3 TECH-TONIC SHIFTs Investors have speculated for years about what could slow down the AI investment steamroller. Now, they have a fresh perspective: the emergence of China's AI sensation DeepSeek. It has rewritten assumptions about computing power and the amount of money needed to develop state-of-the art models. This change shattered Nvidia stock's value, causing it to plummet. DeepSeek also challenges the dominance of U.S. tech, and raises questions about the competitive advantage of the seven top tech stocks, known as the Magnificent Seven. Investors will be able to decide whether the recent AI market volatility represents a warning for future challenges, or an opportunity to invest in this rapidly expanding sector. 4/IN FOR A SLEEZE The pace of European bank earnings will pick up in the coming week, as BNP Paribas and Societe Generale report their fourth-quarter results, followed by UBS and Santander from Spain and Switzerland. The majority of lenders will have wrung out enough extra cash from higher interest rates, helped by soaring revenues in investment banking. This will boost their profits to keep the two-year rally going. Investors are looking for signs that the recent surge in deal-making is not over. Still, there are challenges. The falling interest rates put pressure on the banks' earnings on loans and their deposits. Meanwhile, the U.S. economic growth is accelerating. Deutsche Bank, a German bank, has caused concern after it reported a steep drop in profit and abandoned a major goal regarding costs. This sent its shares down. 5/DECISION TIMES On Thursday, the Bank of England will meet to set interest rate. The markets haven't fully priced in a quarter point cut but economists appear to believe that this is likely. UK data are weakening. Multiple measures of employment indicate cracks in the labour markets, and unexpectedly consumer spending fell during the crucial holiday shopping season. The BoE predicts that growth will remain flat in the fourth quarter of 2024. Many banks believe that the British economy will struggle to grow by even 1% in this year, despite plans from Finance Minister Rachel Reeves to revive growth. The bond market turmoil that occurred earlier this month pushed government borrowing costs for 10-year bonds to their highest level since 2008. Gilt yields are down, but still uncomfortably high at 4.5%. This is more than any other G10 country except New Zealand.
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SAP is seeing a growing demand for sustainability software in spite of U.S. climate disengagement
Dominik A. Asam, the chief financial officer of SAP Germany, told a reporter that despite the trend in the United States to lower climate protection goals, SAP's global demand for sustainability software is growing. The United Nations announced this week that the U.S. would withdraw from the Paris Climate Agreement on January 27, 2026. Washington had formally informed Secretary-General Antonio Guterres about President Donald Trump’s decision to leave. Asam stated that "the topic of sustainability won't disappear from investor discussions", adding that companies will still require reliable figures and analytical tools to make decision on the topic. I spoke with many investors who were concerned about sustainability at the World Economic Forum. "They are very optimistic, despite recent U.S. election results," he says. He sees great potential in SAP's Green Ledger, a fledgling software, that he says helps companies to make their sustainability reports as verifiable and transparent as a balance sheet. This will be required by 2028 under the European Corporate Sustainability Reporting Directive. The CFO is expecting contracts to be signed. He said that "a lot will happen" in the second half.
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French Budget Talks on Right Track, Finance Minister Says
French Finance Minister Eric Lombard stated on Friday that the talks to pass the budget for 2025 through the parliament are "on track" although some compromises might still be required. Lombard told TF1 TV that the government would continue to pursue its goal to bring the deficit in the public sector to 5.4% of the gross domestic product by the end of this year. Lombard spoke as a group of French legislators met for the second day of their meeting on Friday, to finalize the text of the much-delayed 2025 budget bill. This is crucial to restore investor confidence in the country's finances. Seven senators and seven lower-house members were in a closed-door discussion to reach a compromise on the bill before it is brought to the floor of the lower-house next week. This could lead to a motion of no confidence against the government. "I hear that the discussions are proceeding in a positive spirit ....I have faith in lawmakers. They are aware of the gravity of the situation. Lombard stated, "I think we're on the right track." Francois Bayrou, the Prime Minister of France, wants the deficit in the public sector to be reduced to 5,4% or GDP by 2025. Last year it spiraled higher as the tax revenue fell short and the spending increased faster than expected. Lombard stated that the 5,4% target is "an commitment" made by the French government and the European Union, which will not be changed. Investors have been rattled by France's inability to reach a budget agreement for 2025, while business confidence and consumer confidence has also been slashed. The government had to make concessions worth billions of Euros in order to pass a bill that would have a chance to be passed. (Reporting and editing by Toby Chopra, Geert de Clercq, Sudip K-Gupta)
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Goldman Sachs raises 2025, 2026 average Brent forecast
Goldman Sachs raised its Brent Oil price forecast for 2019 and 2026 due to lower commercial inventories at the Organization for Economic Co-operation and Development. This has led to a tighter oil supply. Goldman Sachs said that it has increased its Brent oil forecasts for 2025 and 2026 to $78 and $73 respectively (from $76 previously). It also expects a $80 peak between April and May 2025. Wall Street Bank said that the forecast for OECD's commercial stock in 2025-2026 was lowered. This is mainly due to lower than expected oil supply from non-OPEC nations, excluding the U.S. The current OECD estimate has been reduced by 48 million barrels a day. Goldman Sachs has said that Brent oil could temporarily reach $93 per barrel if sanctions on Iran and Russia result in the supply of crude oil falling by 1,000,000 barrels a day. Joe Biden, the former U.S. president, imposed the most comprehensive package of sanctions against Russia's oil revenues and gas revenues earlier this month. This was done to give Kyiv, and Donald Trump's government, leverage to negotiate a peace deal in Ukraine. The bank stated that Brent could fall to low $60s by 2026 under a scenario of a universal 10% tariff. Trump has promised universal tariffs at 10% on all U.S. imported goods. The new president announced on Thursday that he will decide soon whether or not to exclude Canadian oil and Mexican oil imports when he imposes the 25% tariffs on Saturday. Brent crude was trading at around $77 per barrel on Friday. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sonia Cheema)
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Why is Russia trying to seize the strategically important Ukrainian city of Pokrovsk
After capturing a series of villages in its southern part, Russian forces have begun to surround the strategically significant eastern Ukrainian city of Pokrovsk. Ukraine has also halted its production at its one coking coal mining near this city. Here are some key facts about Pokrovsk - which Russians refer to by its Soviet era name, Krasnoarmeysk - and the battle for power. What is POKROVSK? Pokrovsk, a hub for road and rail in Ukraine's eastern Donetsk Region, had an estimated 60,000 residents before the war. According to a Ukrainian Police statement from late January, the majority of residents have fled. Only 7,000 people remain. The town is located on a major road that the Ukrainian military uses to supply other eastern outposts in conflict, such as the heavily fought-for towns of Chasiv Yar and Kostiantynivka, both in the Donetsk Region. The only coking coal mine in Ukraine, which was vital to the pre-war economy and its steel industry, is located around 10 km (6 miles) west of Pokrovsk. Metinvest, the Ukrainian steelmaker, announced in mid-January that it had halted the mine's operation due to the deteriorating situation. The steelmakers' union said that the loss of this mine threatens to reduce Ukraine's output by more than half. Pokrovsk is home to the oldest and largest technical university in the region, which has been operating since 2014. Shelling has damaged the university and now many of its windows have been blown out or are boarded up. Why does Russia want Pokrovsk? Moscow claims to have annexed Ukraine’s eastern Donetsk Region and views the control of Pokrovsk, as a crucial step towards incorporating the whole region into Russia. Kyiv, the West and other countries reject Russia's territorial claims and accuse Moscow waging a colonial war. The Russian media refer to the city as "the gateway to Donetsk". This would allow Moscow to disrupt Ukrainian supply routes along the eastern front, and boost its campaign for Chasiv Yar which is located on higher ground, offering the potential to control a larger area. By limiting the Ukrainian military’s access to the nearby road network, Kyiv’s troops would be unable to maintain pockets of territory on either side of Pokrovsk. This could allow Russia advance its front line. Open source data indicates that Russian forces have begun to surround the city from the south and southeast in a pincer-like movement. What is the UKRAINE doing to defend Pokrovsk? The Ukrainian president Volodymyr Zelenskiy replaced Brigadier-General Andriy Hatov on Jan. 26, the commander of eastern front, which includes Pokrovsk. He said the move was intended to strengthen command of troops within the Donetsk Region. Hnatov has been replaced by Major-General Mykhailo Draptyi as the commander in chief of the ground forces. He will continue to perform his previous duties. This was after the December replacement of General Oleksandr Tarnavskiy, who had overseen the defences in Donetsk and been criticised for his failure to stop the relentless Russian push towards Pokrovsk by Ukrainian military bloggers. He was replaced by Colonel Oleksandr Ternavskiy. Oleksandr Syrskyi is Ukraine's top military commander. He has stated that his troops have been preparing for the Russians approaching by strengthening their defensive positions. Russian forces have taken over villages and settlements to the south of Pokrovsk. Ukraine claims that Moscow is trying everything to gain a foothold, but has suffered huge losses. Moscow claims that Ukrainian forces have suffered serious losses. Both sides do not disclose the full number of casualties. Zelenskiy spoke to the troops who defended Pokrovsk and presented military awards. What does Pokrovsk look like now? Pokrovsk is no longer the vibrant city it once was. It has lost its electricity, gas, heating, and piped water. On Jan. 27, footage showed that the façades of apartment buildings were badly damaged. Streets were deserted, and elderly residents, who had taken refuge in a basement, were evacuated. A video from Dec. 20 showed shelling, anti-tank barriers called "dragon teeth" on certain roads, and a small grocery store running on a generator. Residents interviewed said that they would not leave their homes because they have nowhere to go, and they lack financial resources. Reporting by Andrew Osborn, Moscow; Anastasiia Mlenko, Kyiv. Editing by Mike Collett White and Frances Kerry.
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Thai EV production set to increase, sparking price wars in a battered market
Thai EV sales may jump by 40% in 2025 President of the association: Production and subsidy conditions are driving EV sales Analysts say that new supply and limited demand may intensify the price war. By Chayut Setboonsarng BANGKOK - Thailand's auto industry is already suffering from a slump in sales and experts say that a price war on EVs could be extended due to a rise in production by Chinese car manufacturers. Suroj Sangsnit is the president of Electric Vehicle Association of Thailand. He said that electric vehicle sales are expected to increase by 40% in Thailand this year. This will surpass 100,000 units, reversing a 8% decline in sales from last year. Sales are expected to surge due to a national incentive program that requires companies to produce 1.5 vehicles locally for every imported vehicle in the period 2022-2023 to qualify for tax incentives and avoid hefty fines. This programme, which includes up to 150,000 baht in price subsidies ($4,400), has helped the second largest economy of Southeast Asia become the biggest EV market in the region, with 70,000 new EVs registered last year. The country imported 84,000 EVs from 2022 to 2023. Analysts said that it could now intensify the fierce price competition on a market in which auto sales are falling due to tight credit conditions and escalating household debt. Great Wall Motor slashed the price of the Ora Good Cat by as much as 275,000 baht in January. GAC AION cut the price of the AION Plus by 166,000 baht. Both companies are Chinese. Tita Phekanonth is a senior analyst at the Economic Intelligence Unit of Siam Commercial Bank's (SCB) Economic Intelligence Unit. She said that price wars would be aggressive and widespread, as well as a possible discount for vehicles with internal combustion engines. Thailand is a major hub for auto manufacturing in Asia. It exports approximately three-fifths (35%) of its locally produced vehicles. In December, the Board of Investment (BOI), the organization that anchored the incentive program, made some changes to the rules. They extended the timeline for battery production and offered incentives for hybrid vehicles. This was done in order to alleviate concerns about oversupply and price wars. BOI chief Narit Tehrdsteerasukdi said that EV firms would also start exporting in this year, possibly easing the oversupply. He said that the EVs are not limited to either right- or left-hand drives. In fact, both EV models were produced in Thailand by Chinese automakers. Hathaiwal Tungkaterakul is a senior researcher with Kasikornbank. She said that BYD (China) and Neta have invested in other markets, such as Indonesia, and their EV exports are competitive with Thailand's. Weak demand in Thailand and abroad led to a 17th consecutive monthly drop in Thai auto production. Vehicle exports dropped 8.8% in 2024 while domestic sales plummeted 26%. This is the lowest level in 15 years. Oversupply Concern Thailand's auto industry, which was long dominated by Japanese companies, has seen an influx of Chinese investment in EVs over the past few years. This is due to subsidies and tax incentives that aim to convert 30% of Thailand's annual auto production into EVs by 2030. According to EVAT, China's BYD and Great Wall Motor, among others, have invested more than 102.7 billion Baht ($3 billion). BYD Great Wall Motor Changan GAC AION and BYD did not reply to a question about their strategies in anticipation of possible EV price reductions. Suroj is the executive vice-president of SAIC Motor CP, a joint venture between China's SAIC Motor Group and Thailand's CP Group. Suroj said that the local vehicles would be competitive, but they will only qualify for government subsidies if sold in this year. After which, support from the government will stop. BYD is already under scrutiny by the government for its deep discounts, which can reach up to 340,000 Baht per electric vehicle. A consumer watchdog cleared the biggest EV seller of any wrongdoing last year.
Denmark to permit conservation work on harmed Nord Stream 2 pipeline
Denmark's energy agency on Tuesday said it had actually approved Nord Stream 2 AG, a system of Russia's. Gazprom, consent to carry out preservation deal with. the Nord Stream 2 gas pipeline in the Baltic Sea, which was. harmed in a series of blasts in 2022.
The upkeep work is necessary to decrease ecological. and security threats coming from the pipeline being filled with. seawater and staying gas, the agency stated in a. declaration.
The work intends to protect the damaged pipeline by. installing customised plugs at each of the open pipeline ends to. avoid even more gas blow-out and the intro of oxygenated. seawater, it said.
Nord Stream 2 AG completed the $11 billion pipeline task. in 2021 to pump gas from Russia to Germany. However Germany halted. the plan as relations with Moscow broke down ahead of Russia's. war in Ukraine, while the United States enforced sanctions.
In September 2022, among the 2 lines of the Nord Stream 2. pipeline was damaged by mysterious blasts, along with both lines. of Nord Stream 1. No one has taken responsibility for causing. the damage.
The damaged line of NS2 is approximated to still include. around 9-10 million cubic metres of gas, while. the intact line stays filled with gas, the Danish firm stated.
The United States in December
provided further sanctions
on the operator and other Russian entities stating it. thinks about Nord Stream 2 a Russian geopolitical task and. opposes efforts to revive it.
Both the United States and Ukraine have actually rejected having. anything to do with the attacks as has Russia. Moscow, without. offering evidence, has blamed Western sabotage for the blasts,. which mainly cut Russian gas off from the financially rewarding European. market.
(source: Reuters)