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Europe stocks continue record run on defence sector boost
The European share market reached a new high on Tuesday, as defence stocks rose on the prospect of higher military spending in the area. However, a Capgemini led drop in IT shares capped the gains. The STOXX 600 pan-European index rose by 0.2%, to a new record of 555.42. The aerospace and defense index jumped 1%. After European Commission President Ursula von der Leyen announced that the Commission would propose an exemption for defense spending from EU budget limits, the sector grew by 4.6% Monday. This is its largest one-day increase since Russia invaded Ukraine, in February 2022. Defense stocks gained on Tuesday. Italy's Leonardo rose 1.4%; Sweden's Saab increased by 1%; and Britain's BAE Systems advanced 0.5%. Thyssenkrupp's warship division is being spun off and Thyssenkrupp has gained 2.7%. Its shares had risen nearly 20% Monday. Capgemini, on the other hand, fell 6.2%, despite the fact that the French IT giant had reported an annual sales decline of 2%, which was above expectations. IHG, owner of Holiday Inns, has lost 1.3% since the release of its results for 2024. Antofagasta's core profit increased by 11%. (Reporting and editing by Savio d'Souza in Bengaluru, Pranav Kashyap from Bengaluru)
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Antofagasta mine's core annual profit increases by 11%
LONDON, February 18 - Chilean Copper Miner Antofagasta reported an 11% increase in annual core profits on Tuesday, thanks to higher metal prices. EBITDA (earnings before tax, depreciation, and amortization) for the entire year increased to $3.43 from $3.09 billion one year earlier. The proposed final dividend by the copper miner of 23.5 cents per share represents a payout of 50% of the underlying earnings. Antofagasta paid out a record amount of $1.4 billion to shareholders in 2021. This was 142.5 cents per share. Its policy is that at least 35% net profits are returned to shareholders. The company reported a capital expenditure of $2.4billion last year and expects this to rise to $3.9billion in 2025 as it works on the Centinela concentrator's peak. The Luksic family of Chile, which owns the majority of the company, operates four mines in South America. The share prices of pure-play miners will rise in 2024 due to the booming demand for copper used in solar panels, electric vehicles and other energy transition applications. Antofagasta shares rose 15% in the past year. In a recent statement, CEO Ivan Arriagada stated that he was encouraged by the prospects for copper, as global constraints such as ore hardness, grade decline and capex inflation are slowly limiting current supply expansions. (Reporting and editing by Clara Denina and Shashwat Arriagada)
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Anglo American sells nickel business up to $500 Million
Anglo American announced on Tuesday that it would sell its nickel mining business to an MMG Ltd unit listed in Hong Kong for up to $500m. A broader restructuring is underway to focus its operations on iron ore and copper. Nickel business in Brazil includes two ferronickel projects and two greenfields. Anglo will receive $350 million upon completion, up $100 million as a price-linked gainout, and an additional $50 million for potential project development, according to a company statement. Together, the assets produce around 38,000 metric tonnes of nickel each year. In January, the metal's price fell to a record low of four years as Indonesia became a major producer. Anglo American, a London-listed company, rejected a hostile bid of $49 billion from BHP in May. BHP was focusing on Anglo’s copper assets. Duncan Wanblad, CEO of Anglo American, said: "We unlock the inherent value in all of Anglo American by creating a simpler business that is more resilient and agile. This will allow full value transparency on the market." Anglo said this week that the spin-off from its platinum unit in South Africa would be completed by June, ahead of its financial results due on February 20. Anglo sold coal assets worth $4.9 billion as part of its restructuring and plans to divest De Beers.
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Iron ore prices rise as China's demand is a major factor.
Iron ore futures rose on Tuesday as expectations of a stronger stimulus package from China, the world's largest consumer, and improved downstream steel demand boosted sentiment. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 2.51% higher, at 818 Yuan ($112.34) per metric ton. As of 0718 GMT, the benchmark March iron ore traded on Singapore Exchange recovered an earlier loss and jumped 1.18% to $106,95 per ton. Analysts in Shanghai and Singapore said that the volume of transactions for steel products in Hangzhou, east China, exceeded expectations. This boosted sentiment and sent ore prices up. They both requested anonymity because they were not authorized to speak with media. Analysts at ANZ also noted that there is speculation about the upcoming "Two Sessions", which will be held in China, providing more proactive policies aimed to stimulate consumption. Two parallel sessions of "Two Sessions" will be held in Beijing, China next month. "With the resumption in exports from Australia’s largest iron ore port the market has shifted its focus on broader demand dynamics," ANZ said. Prices fell on Monday as iron ore shipments to Australia increased after major ports reopened following the tropical cyclone Zelia. GF Futures analysts believe that a slow recovery of ore demand is likely to keep ore prices from rising. They also expect hot metal production, a measure of iron ore consumption, to remain at a level similar to the assessment of consultancy Mysteel as of February 14th. Coking coal and coke, which are used to make steel, also increased in price, by 1.34% and 1.61 %, respectively. The Shanghai Futures Exchange has seen a rise in most steel benchmarks. Rebar gained 1.3%, hot-rolled coil rose by 1.3%, wire rod grew by 0.31%, and stainless steel slipped 0.04%. Reporting by Amy Lv, Lewis Jackson and Sumana Nandy; Editing by Sumana Niandy. $1 = 7.2812 Chinese Yuan
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Copper prices are little changed as contract expires; US-Russian talks focus
The price of copper traded within a narrow range on Tuesday, as traders moved forward their positions in anticipation of a contract that expires this week. Meanwhile, the market's attention was shifted to U.S. efforts aimed at ending Russia's almost three-year long war in Ukraine. The London Metal Exchange's (LME) three-month copper traded flat at $9 398 per metric ton as of 0716 GMT. On Friday, the contract reached its highest level in three months at $9.684.50. A trader stated that "if the talks between the U.S.A. and Russia progress favorably, there will be an increase in the likelihood of lifting of the ban on metals from Russia, which would lead to a flood of Russian metals onto the western market." Russia is one of the world's largest producers of nickel, copper and aluminium. The LME has banned Russian metals that were produced after or on April 13, last year. Later in the day, senior U.S. officials and Russian officials are expected to meet in Saudi Arabia for the first time in many years. This is ahead of the meeting between U.S. president Donald Trump and Russian president Vladimir Putin. The spread between cash LME copper and benchmark 3-month futures For the first time since 19 months, prices spiked on Friday to $249 per ton. Investors and traders completed rolling forward positions in anticipation of the contract expiration this week. Three sources said on Saturday that the U.S. proposed to take ownership of 50% Ukraine's essential minerals. Aluminium prices on the LME were down 0.3% at $2,637 per ton. Zinc was also down 0.3%, to $2.864, while tin remained unchanged at $32,670. Lead was off 0.2%, to $1,988, and nickel was 0.7% lower, to $15,385. The price of aluminium at the SHFE fell 0.2%, to 20,665 Yuan ($2,839.18). SHFE copper was down 0.8%, to 76850 yuan. Nickel was up 0.2%, to 123 730 yuan. Zinc gained 0.3%, to 23,880 Yuan. Lead rose 0.1%, to 17,150 Yuan. Tin lost 0.8%, to 261,060 Yuan. $1 = 7.2785 Yuan (Reporting and editing by Sumana Nady and Subhranshu Saghu)
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Riksbank is worried about the rise in headline inflation in Sweden during January
The Statistics Office (SCB), which measures consumer prices using a fixed rate of interest, reported that the price index in Sweden rose by 0.4% from January to the previous month, and was up 2.2% compared to the same period last year. Inflation was 2.7% excluding volatile energy prices, a measure that the Riksbank pays particular attention to at this time. Rents and food prices were the main factors, while electricity prices dropped compared to a year earlier. The central bank targets a headline inflation rate of 2 percent. The data confirms the preliminary figures released on 6 February which were far above expectations and showed an increase in headline inflation from December, when it was 1.5%. The rise in inflation confirms the message that the Riksbank sent in January when it cut its policy rate for the sixth consecutive time since spring of 2024, indicating it was likely done with the easing cycle. The Riksbank stated at its last rate-setting meeting that it would wait before changing rates. Some analysts believe that inflation will drop again, and another rate cut could be on the cards in May. The outlook is uncertain due to volatile inflation, potential U.S. Tariffs, and geopolitical development. The Riksbank's next policy announcement will be made on 20 March. (Reporting and editing by Terje Solsvik, Shri Navaratnam & Simon Johnson)
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European shares soar to record levels on hopes for peace in Ukraine
European futures reached record highs on Tuesday, as defence stocks soared amid expectations of a boost in spending. Meanwhile, Hong Kong shares were nearing three-year highs after investors cheered the business leaders' meetings with President Xi Jinping. As expected, Australia's central banks began their rate-cutting cycle. The Australian dollar found some support at $0.6350, as the reduction came with caution about further easing. S&P futures rose 0.2%, while European futures gained 0.1%. Japan's Nikkei gained 0.5%, with shares in banks and defence taking cues from Europe. The pan-European STOXX 600 closed Monday 0.5% higher, as a gauge for defence and aerospace stocks surged 4,6% to lifetime highs, after having more than doubled since Russia invaded Ukraine in 2013. Investors are expecting earnings to rise in the arms industry. They believe that a period of modest defense budgets is over and a rush for buying weapons has begun. Tony Sycamore is an analyst at IG Markets, Sydney. He said that if European defence spending reaches Trump's 5% GDP target, European defense companies such as Rheinmetall, SAAB and BAE Systems can increase their overnight gains. The euro was hovering around $1.0455 during the Asia session. However, Sycamore predicted that a sustained break below $1.0530 could lead to $1.06 or even higher ahead of Germany’s weekend elections. On Tuesday, Russian and U.S. officials will meet in Saudi Arabia for bilateral discussions. Volodymyr Zelenskiy, the president of Ukraine, has stated that his country will not recognize any decisions taken in meetings where they are not present. CHINA RALLY The U.S. market will reopen on Tuesday after a long holiday. The rare meeting on Monday between Xi, the Chinese president, and top business leaders has boosted markets in China. Hong Kong's Hang Seng reached its highest level since October, and an index of technology shares also hit a 3-year high. The tech index has risen more than 25% in the past year, boosted by artificial intelligence stock gains. Britney Lam is the head of LAM Group and runs a family business. She believes that China will win the AI race just as it has won the electric car race. This belief is based on China’s access to talent, data, and energy. After a steep decline on Monday, Baidu shares stabilized after the founder was not present at the meeting. The company will report earnings in the afternoon. Alibaba's shares rose 2% when Jack Ma, founder of Alibaba, was seen on TV shaking hands with Xi. BHP shares rose 0.4% after the global mining company reported its lowest first-half profits in six years but noted signs of economic improvement in China. In Europe, the markets are also watching the German elections at the weekend. The yen remained steady at 152.06, after solid growth figures the day before boosted chances of an interest rate increase in Japan within months. Investors awaited the employment and inflation figures later this week. The pound was trading at $1.2597 - just below its high level of two months. Gold fell from Friday's record-highs to $2,913 per ounce after seven weeks of gains. Bloomberg News, citing delegates, reported Monday that OPEC+, the oil producer group, is considering delaying a series monthly increases in supply due to start in April, despite Trump's calls for lower prices. Brent oil held gains overnight at $75.39 per barrel. (Reporting and editing by Nell Mackenzie, Tom Westbrook and Lincoln Feast.
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Kongsberg Maritime to Equip Bibby Marine’s Fully-Electric CSOV
Kongsberg Maritime has secured a contract to supply an integrated package of equipment for Bibby Marine’s new electric Commissioning Service Operation Vessel (eCSOV), the world’s first fully-electric offshore vessel.Kongsberg Maritime will provide full-electric rim-drive propulsion with azimuth and tunnel thrusters. The scope of supply also includes the automation system, full electrical control system, Dynamic Positioning, and thruster control.The new eCSOV will feature the largest ever battery installation on an offshore vessel, with a capacity of 25MWh.Kongsberg Maritime’s equipment will integrate with the battery system and optimize the use of energy on board.U.K.-based Bibby Marine has commissioned this pioneering service operation vessel from Spain's Armon shipyard. Bibby Marine Inks Shipbuilding Contract for eCSOV with Spanish ShipyardThe hybrid vessel will be capable of operating entirely on electricity for a full day via the Blue Whale Battery Energy Storage System from Norway’s Corvus Energy.This lithium iron phosphate system will enable the vessel to operate on electricity for 24 hours.The vessel is expected to be delivered in 2027.“The eCSOV marks a significant milestone not only for Bibby Marine and its partners, but also for the entire maritime industry and will certainly push the boundaries of innovation in the offshore energy sector,” said Gavin Forward, Bibby Marine New Build Project Director.“We are delighted to be part of this groundbreaking project with Bibby Marine, as they take hybrid operations in the offshore market, to the next level. Our integrated package of advanced maritime technologies will ensure the new eCSOV operates with unparalleled efficiency and sustainability, setting a new standard for the industry,” added Birger Teien Evensen, Sales Director - Offshore, at Kongsberg Maritime.
Indian state studies prepare to prohibit gas, diesel lorries in Mumbai to control contamination
The western Indian state of Maharashtra has actually formed a panel to study a proposition to prohibit gas and diesel automobiles in Mumbai city amidst intensifying air quality and only permit electric or gas driven vehicles, it stated in an order.
Any restriction on fuel, diesel lorries in the monetary capital, if implemented, might not only effect car manufacturers, but also people and businesses which rely heavily on these vehicles amid insufficient electric vehicle charging infrastructure and still developing city rail networks.
The city, home to the country's stock market and workplaces of several worldwide banks and multinationals, has actually seen air quality intensify because the pandemic amid growing traffic congestion and several ongoing facilities and building and construction jobs.
Maharashtra's federal government stated it has actually formed a seven-member committee to study the proposal of prohibiting fuel and diesel automobiles and only allowing electric and compressed natural gas lorries in the Mumbai city area following a court directive. The government order is dated Jan. 22 however gained spotlight on Tuesday after Indian media extensively reported it.
Earlier in January the Bombay High Court in its own public interest lawsuits directed the Maharashtra state federal government to constitute a committee of experts to study and see if it is possible to phase out petrol-diesel driven cars.
The vehicular emission is among the primary sources of air contamination. The roadways in Mumbai city area are chocked with lorries and density of the vehicles on the roads is alarming, the court said in an order on Jan. 9.
Air quality in Mumbai has actually incrementally intensified since 2020, revealing 12% boost in air quality index according to open-source air quality monitoring platform AQI that reveals real time air quality information on its website.
India has some of the world's most polluted cities including its capital New Delhi, which often see its air quality index drop to unhealthy levels during winter.
The committee will submit the results of its research study in three months, the state said.
The state is also thinking about a policy, which will make it compulsory for vehicle and bike owners in the state to have licensed parking area, in lack of which new lorry registration could be declined, Indian news media reported earlier this month, pricing estimate the state transport commissioner Vivek Bhimanwar.
(source: Reuters)