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Holcim exceeds expectations for the first quarter ahead of Amrize's spin-off
Holcim, a Swiss construction materials manufacturer, reported a better-than expected first-quarter result on Friday in its final results before Amrize's spin-off from its North American operations. Holcim reported a recurring operating loss of 515 million Swiss Francs ($619m) for the quarter ended March 31. This was higher than the consensus estimate of 494 million Swiss Francs. Sales were stable at 5,54 billion francs compared to forecasts of 5.49 billion. In a press release, CEO Miljan Gutovic stated that "our disciplined M&A implementation continued with five acquisitions of value-adding companies." These transactions will strengthen the aggregates and ready mix businesses in Europe and North America and our specialty building solution in Latin America. Holcim plans to sell 100% of Amrize back to its shareholders. The separation is expected to be complete in June. The spin-off will be one of largest deals in global construction, initially targeting a valuation of $30 billion when announced in January 2024. Amrize plans to list on the New York Stock Exchange, the SIX Swiss Exchange, and the New York Stock Exchange. Last month, the company announced its post-split strategies. It stated that it aimed to achieve an average annual increase in earnings before taxes and interest of between 6% and 10% by 2030. The focus will be on Europe, Australia and North Africa as well as Latin America. Holcim, whose 2024 net sales were 16.3 billion Swiss francs, excluding North America would have an estimated total capital deployment capacity between 2025 and 2030 of 18-22 billion Swiss francs, according to the company. The cash will be used for large acquisitions as well as share buybacks. $1 = 0.8317 Swiss Francs (Reporting and editing by Kim Coghill, Varun H. K. and Ariane L.)
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Under supply pressure, oil prices are expected to drop weekly.
The market is headed for a decline this week due to concerns over the supply of oil. Brent crude futures rose 43 cents, to $66.98 per barrel at 0433 GMT. They are on course to drop 1.4% this week. U.S. West Texas Intermediate crude (WTI), which is also known as WTI, rose 42 cents a barrel to $63.21, but it was expected to fall 2.3% this week. Anh Pham, senior analyst at LSEG, said, "Oil prices are up today as the market reacts to signs that tensions have eased around Trump's Tariffs and a possible shift in Fed policy stance. This has contributed to a broader recovery of the market." The weekly price trend is down, but the outlook for demand remains uncertain due to ongoing trade tensions. "A stronger U.S. Dollar has also added to the pressure on crude prices," he said. Donald Trump, President of the United States On Thursday, the U.S. claimed that trade discussions between China and the U.S. were in progress. This was in response to Chinese claims that there had been no talks. China is considering Exemption Beijing has asked businesses to submit a list of eligible goods and some U.S. exports that are exempt from the 125% tariff. This is the most significant sign yet of Beijing’s concern about the economic impact of the trade war. Trump increased tariffs on Chinese products after Trump's announcement. The oil prices fell earlier this month as a result of the tariffs, which sparked concerns about global demand. The fear of an excess supply is growing. Earlier this week, it was reported that several OPEC+ member countries had suggested that the group increase oil production for a second consecutive month in June. In an interview with CBS News, Russian Foreign minister Sergey Lavrov stated that the United States and Russia were moving in the right directions to end the conflict in Ukraine. However, some specific aspects of a deal still need to be agreed. The easing of sanctions and a halt to Russia’s war in Ukraine could enable more Russian oil to reach global markets. Russia is a member of the OPEC+, which includes the Organization of the Petroleum Exporting Countries. It is also one of the largest oil producers in the world, along with the U.S. Abbas Araqchi, the Iranian foreign minister, said he would be willing to travel to Europe to discuss Tehran's nuclear program. The lifting of sanctions against Iranian oil exports is likely to be the result of successful talks with Europe and America. Iran is OPEC's third largest oil producer, behind Saudi Arabia and Iraq.
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Some European companies question US expansion amid tariff chaos
The erratic tariff policy of U.S. president Donald Trump is making some European smaller companies question whether they should expand into the U.S. Trump wants to encourage foreign companies to invest in the United States by imposing levies on steel, cognac, cars, and sandals. This will lead to new factories being built and thousands of American jobs. The announcements of rollbacks, exemptions, and other changes have made some smaller companies hesitant to commit. EuroGroup Laminations, an Italian company, pays no import duties on the rotors, stators, and other components it provides to U.S. automakers, such as Ford and GM. These products are produced in Mexico and comply with current import regulations. Marco Arduini, CEO of the company, said that even if the company had to move production to the U.S., it would be subject to tariffs on the type of steel it uses for its automotive parts. He said that avoiding potential U.S. Tariffs would not compensate for the extra costs or low availability of steel. U.S. Labour costs are also a concern, as they can be up to six-times higher in Mexico. Due to the current situation, including the possibility that tariffs could trigger a U.S. economic recession, ebm papst - a German motor and fan manufacturer - has put plans on hold to build a new U.S. facility or to expand an existing U.S. site. Klaus Geissdoerfer, CEO of the company, said that if there were an economic downturn on American soil, it could affect demand in a different way. Many economies are built on the strength of small and medium-sized businesses (SMEs), including Italy and Germany. Both countries are members of the European Union and major exporters into the United States. They may be able to react more quickly to new trade risks than larger companies because they have smaller financial cushions than their blue-chip counterparts. Marc Tenbieg is the head of DMB, the association representing Germany's SMEs. DMB said in separate comments that a few SMEs are currently re-evaluating their U.S. business as a result Trump's policies. Andrew Adair said that some member companies of the German engineering association VDMA have delayed purchases. He made the statement following a visit to the United States in early this month. He said that the industry appeared to be on pause at the moment. Trump, after weeks of threats announced a series on broad tariffs for goods imported into the United States by most other countries on April 2. The tariffs included a 20% on EU imports, which was then lowered to 10% as part of what Trump called a "90-day pause" following the selloff in U.S. stocks. Trump's statements that other countries "screwed" the U.S. over the years, reflecting his anger at U.S. Trade Deficits including one of 235.6 billion dollars with the 27-nation EU, have also raised the temperature in the diplomatic and political arena. LAPP in Germany, which produces everything from wires and cables to robotics for factory, has maintained its plans to double the production capacity at their New Jersey site by 2025. Matthias Lapp, CEO of Lapp & Co., said: "As a business family, we plan on the long-term, not just for elections." Tariffs have the potential to affect demand and inflation in the United States. RBC Capital estimates that imports account for 10% of U.S. consumer spending and that "it will be relatively difficult for consumers" to switch away from imported products. The consultancy AlixPartners believes that the average U.S. household's discretionary spending in a post tariff world will drop by more than 10 percent to $27,000. They recommend companies adopt a pause and monitor approach. Eurostat data show that in each of the past three years the EU exported an average of more than 500 billion euro of goods to the U.S. These were mostly pharmaceuticals and vehicles, but also machinery. Trump's primary targets are the steel, auto and car makers in the EU. The U.S. is still the EU's largest trading partner. However, the new tariffs have prompted some political resistance against taking on more exposure. French President Emmanuel Macron has asked European firms to temporarily suspend their planned investments. Industry groups urge European companies to instead focus on other foreign markets, such as India and Latin America. Sebastian Zank is the head of Scope's corporates rating production. He said, "We have seen how quickly things can change." Everyone will remain seated until the picture that emerges can be described as "sustainable."
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Japan creates an emergency economic package to ease the tariff pain
Shigeru Ishiba, Japan's prime minister, said on Friday that the government had compiled a package of emergency economic measures to mitigate any impact the new tariffs imposed by the United States on the Japanese economy and household. A government document revealed that the package included support for corporate finance as well as subsidies for lower gasoline prices of 10 yen per litre ($0.07) and partial coverage for electricity bills for three month starting in July. A broader range of companies will be eligible to receive low-interest loans from government-backed banks. Ishiba told a meeting of the tariff task force that he had instructed his cabinet members to do their utmost to help firms and households who were worried about tariff impacts. He said that tariffs could have an impact on industries such as steel and automobiles, which are important to the economy. The government will examine additional measures to boost the domestic consumption depending on how U.S. Tariffs affect Japan's huge automotive industry. Ryosei Acazawa, the Economy Minister, stated that Friday's package can be funded by a reserve account, which eliminates the need for an additional budget. Donald Trump, the president of the United States, introduced a 25% tax on imports of cars and trucks on April 2. He announced a 24 percent tariff on all Japanese products, which was later reduced to 10 percent for 90 days. Akazawa will be visiting Washington for a second round trade talks next week. According to the Nikkei Business Daily, Japan may increase soybean imports as part of negotiations. ($1 = 142.8400 Japanese yen) Reporting by Kentaro Yamazaki and Makiko Sugiyama; Additional reporting by Yoshifumi Takamoto; Editing and proofreading by Muralikumar Aantharaman, Christopher Cushing
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7-Eleven's owner says he will have to cut costs because US tariffs are hitting consumer confidence
Seven & I Holdings is the owner of 7-11 convenience stores. It said that it expected to have to look closely at its supply chain in order reduce costs, as U.S. customers grappled with the impact of U.S. Tariffs. Stephen Dacus, the new CEO of the Japanese retail conglomerate, told reporters that he believes they will be faced with a more challenging retail environment. Retailers will face a difficult challenge as tariffs are imposed or in the process of being imposed by President Donald Trump to reshape world trade. U.S. consumer confidence declined in April, and 12-month inflation expectations soared to their highest level since 1981. Dacus, a director from outside who will assume the role of CEO next month, said that the tariffs imposed by the United States will have the greatest impact on the consumer's behaviour, rather than on the suppliers. He said, "In this environment, you should look more closely at your supply chain and make sure that you are controlling your costs as much as possible." Seven & i, which has been reluctant to accept a $47-billion takeover offer from Canada's Alimentation Couche-Tard (ACT), is on a mission to increase corporate value. This strategy will be largely achieved by improving the U.S. convenience store division, which has more than 12,000 stores. Seven & i has 73% of its total sales in North America. Seven & i plans to list the North American subsidiary of its company in the second half 2026. However, this will depend on the market conditions and a possible delay, Dacus stated. He said that the initial public offering gave him the financial flexibility to increase investment in his stores. Quick service restaurants are more profitable, he added. It has also taken other measures, including selling its superstore division to Bain Capital. The company is also launching a share-buyback program worth approximately 2 trillion yen (roughly $14 billion) until fiscal year 2030. The company has engaged with its Canadian suitor, but thinks it will be hard to get approval from U.S. antitrust authorities. Dacus declined to comment about the current status of the negotiations. Dacus was previously the head of the special committee that examined Couche-Tard’s bid for takeover. Dacus stated that "my appointment as CEO was not related to the takeover bid." We don't discuss Couche-Tard in the management team, because we can't do anything about it. Seven & i shares were trading at around 2,100 yen in the morning on Friday, well below Couche-Tard’s offer price 2,700 yen a share. This indicates investor scepticism about a deal.
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China's premiums soar as Asia gold-discounts in India reach a near-nine-year-high
This week, gold discounts in India reached their highest level in nine years, as record prices discouraged buyers. Premiums in China also rose to an all-time high, leading to increased shipment to the largest bullion buyer in the world. This week, Indian dealers offered a discount The largest discount since July 2016 is up to $80 per ounce, including 6% import duties and 3% sales taxes. The discount last week was up to $74. Prices have increased and jewellery sales are down. Jewellers across the country feel the slowdown as shoppers are not buying the same amount of jewelry they used to. As of Friday, 0357 GMT, the spot gold price was trading at $3,333.73. This week, gold prices in India reached a new record of 99 358 rupees ($1,167) per 10 grams. A Mumbai-based dealer from a private bullion bank said that jewellers have not been active on the market because they received fewer orders in advance for the Akshaya Tiritiya festival. Next week, India will celebrate Akshaya Tirtiya, which is the second largest gold-buying holiday after Dhanteras. Dealers in China charged premiums between $44 and $50 per ounce above global benchmark spot price, the highest level since February 2024. The premiums were up from $15 to $21 per ounce last week. "The premiums are very healthy in China... Gold is being brought into the region in response to this high demand from around the world, said Joseph Stefans Group Head of Trading at MKS PAMP. Despite high prices, demand surged despite the price increase. In Hong Kong, gold In Singapore, the price was $2 higher than in Singapore. Gold traded at a premium up to $2.50 an ounce over the global benchmark. Brian Lan, managing Director at GoldSilver Central, said, "We have seen prices drop a little from their highs, so there was a slight increase in the number of clients who wanted to purchase." In Japan, bullion ($1 = 85,1100 Indian rupees) (Reporting by Anushree Mukherjee in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Mrigank Dhaniwala) ($1 = 85,110 Indian Rupees) (Reporting and editing by Anushree Mokherjee from Bengaluru; Rajendra Jadhav from Mumbai)
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Cerulean Winds Wraps Up Ecological Survey for Floating Wind Farms
Cerulean Winds, the lead developer of the Aspen, Beech and Cedar floating offshore wind farms, has completed Digital Aerial Surveys (DAS) for the projects planned to be built in the Central North Sea.The ecological data has been collected across an area of 2,784 km2, following 72 DAS for the its Aspen, Beech and Cedar developments.The work, completed by HiDef Surveying using fixed-wing aircraft equipped with ultra-high-resolution digital surveying technology, took place between April 2023 and March 2025.The data will be used in environmental assessments for the project’s consenting phase and to ensure compliance with UK and European environmental legislation. The findings will also help optimize sustainable project planning, including turbine placement and infrastructure planning.Survey activity commenced immediately following the announcement of INTOG leasing awards in March 2023, enabling Cerulean to accelerate environmental data collection and keep consenting timelines on track.Having completed the surveys, Cerulean is set to submit its Environmental Impact Assessment (EIA) for the Aspen project, a critical step in accelerating timely project delivery and achieving commercial operation.“The completion of this best-in-class work, delivered at scale, is another milestone in the development of the UK’s floating offshore wind industry. The HiDef team have provided the accurate data we need to make our projects as sustainable as possible.“We’re now looking ahead, alongside our consortium of partners, to developing the project and capturing the benefits of a UK-based FLOW industry,” said Dan Jackson, Founding Director of Cerulean Winds.Once built, the three Cerulean Winds projects (Aspen, Beech and Cedar), could comprise up to 300 turbines. The 1 GW Aspen site will be developed first, providing new offshore wind capacity helping to meet the UK government’s 50 GW by 2030 target.Cerulean Winds leads a collective of delivery partners, including Haventus, Ocean Installer, Bilfinger and NOV.
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Copper prices near 3-week high in hopes of tariff relief
The copper price hovered at a three-week high on Friday, and was headed for a gain of about 5% on the week on signs that tensions between China and the United States may be easing. This is despite President Donald Trump’s comments creating confusion and volatility on global markets. By 0422 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.6% to $9,445 per metric tonne. The metal reached a high of $9,481.50 in the first half of this week, its highest level since April 3. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper rose by 0.4%, to $10,682.66 per metric tonne. LME copper prices have risen by about 10% after hitting a low of $8.105, a level not seen in 17 months. "Signals coming from the U.S. Administration suggesting a substantial decrease in tariffs on Chinese products have fueled hope of a de-escalation of trade friction between the U.S. Beijing claimed on Thursday it had not held direct trade negotiations with Washington. However, Trump confirmed later that day that such talks were in progress. The concurrent decline in dollar index provides an additional tailwind, Sachdeva added. He also noted that the copper price has a technical hurdle at $9,500 a metric ton and a break above this level is essential to maintain the current upward trend. This week the dollar has fluctuated dramatically. It started with a 1% drop against major peers, but then surged 1.5% on Tuesday after Trump's remarks. The dollar index will rise 0.27% for the entire week after a four-week losing streak. The dollar price of commodities increases when purchased in other currencies. Other metals saw an increase of 0.7% in aluminium to $2466 per ton. Zinc rose by 0.3% to 2,695, while lead increased 0.2% to 1,962.5. Tin gained 0.3%, reaching $31,850, and nickel grew 0.3%, to $15,875 per ton. SHFE aluminium rose 0.5% to 20 0005 yuan per ton. Zinc was up 1.3% at 22,830, lead 0.7% at 17,045, nickel 0.2%, 126,030, and tin 1.2%, 262,940. ($1 = 7.2950 Chinese yuan Renminbi). (Reporting and editing by Eileen Soreng, Mrigank Dhaniwala.)
Eastman Chemical cuts spending in the face of market uncertainty and forecasts a quarterly profit that is below expectations
Eastman Chemical said Thursday that it will cut expenses to respond to the market volatility caused by President Donald Trump's tariff plans.
In extended trading, shares of the company fell 3.5% to $78.00.
Chemical companies are facing a weak market and high input prices, especially in Europe where the regulatory environment is challenging. This has forced them to rethink strategies. Trump's unpredictable trade policies have added to the uncertainty in the chemical industry.
On Thursday, Dow Jones said that it expected earnings to be further pressured due to the persistent uncertainty.
LSEG data shows that the company expects its second-quarter adjusted profits to range between $1.70 to $1.90 per common share. This is below Wall Street's expectations of $2.18.
Eastman said that it would also increase its cost-reduction target to $75 million net of inflation and reduce capital expenditures for 2025 to $550 million, as opposed to its previous forecast of $850 million.
The chemical company beat its first-quarter profit expectations, thanks to a strong performance at Kingsport and increased selling prices for its products.
Eastman Kingsport in Tennessee uses advanced technology to recycle plastic waste into monomers that can be used to create new plastic products. The facility can recycle approximately 110,000 metric tonnes annually.
According to LSEG data, the company reported a profit adjusted of $1.91 for the quarter ending March 31 compared with an average analyst estimate of $1.89.
(source: Reuters)