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Indonesian cobalt production will double by 2027. No plans to "control" supply
A senior official announced on Wednesday that Indonesia would double its cobalt production by 2027 compared to last year. He added that the country, the second-largest producer in the world, has no intention of "controlling" the supply of this key component for electric batteries. Septian Hario Seto said that Indonesian cobalt production will increase to 114,630 metric tonnes per year in 2027 from the 55,630 tons produced in 2024. Indonesia is the second largest cobalt producer in the world after the Democratic Republic of Congo, which produces 70% of the global supply. The DRC announced earlier on Wednesday that it is reviewing a ban on exports of cobalt for four months, which was implemented on February 22 in order to curb oversupply and low price. In March, the DRC announced that it would also partner with Indonesia in order to manage global pricing and supply. Seto stated that Jakarta has no intention of "controlling" the cobalt supply. He said that if we want to control nickel, we'll need to control cobalt. Seto stated that the growth in Indonesian production is driven by plants that use high pressure acid leaching, a technique made economically viable thanks to increased cobalt and Nickel prices since 2021. Prices of cobalt will reach $40 per pound by 2022, before dropping to $10/lb by the end 2024. Prices have recovered substantially since the Congo export ban, and are currently around $16/lb. Seto stated that the expansion of cobalt production in Indonesia will not be sufficient to compensate for the reduced supply from the DRC, if the export embargo continues. He added that extending the export ban would cause short-term price volatility and long-term demand reduction for cobalt. This is because battery producers will, for example use technology to reduce cobalt consumption, which is a critical component of batteries for electric cars and mobile phones. He said, "Downstream users may think you're not reliable or sustainable and will then look for ways to replace you." He said that the cobalt content of batteries is now 10%, or even lower, than it was in the past. Reporting by Hongmei LI in Singapore, Editing by Lewis Jackson & Lincoln Feast.
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Romania's Hidroelectrica Q1 profits plummet 56% after electricity production hits decade-low
Hidroelectrica, the Romanian state-owned energy producer, reported a 56% drop in its first-quarter profit on Wednesday. The company cited a severe dry spell that affected the flow of the Danube River. In a press release, the drought led to a 38% decline in annual net electricity production, which fell to 2,654GWh. This was the lowest level of the first quarter in the last decade. The company reported a net loss of 589 millions lei ($129million) for the third quarter. This is down from 1,33 billion lei during the same period in last year. Hidroelectrica reported that the company's revenue in the first quarter fell to 1.87 billion lei from 2.54 billion lei, due to the hydrological conditions being unfavorable, which led to a 60% decrease in wholesale volume available for sale. The report also stated that, although wholesale prices increased by 21% between January and March 2024 compared to the same period in 2024 the wholesale market revenues still fell by 53% due to the reduced sales volumes.
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Top executive of India's Kalyan Jewellers says that the company's opening spree will drive revenue growth.
Kalyan Jewellers, a gold and diamond retailer in India, is targeting a revenue increase of over 25% for this financial year. This comes as the company has accelerated store openings due to heightened demand for lower-carat jewelry. The record high gold price has not stopped the wealthy from buying ornaments and investing in gold in the country that is the second largest gold buyer. However, the middle class has switched to lighter and lower-carat jewellery. Ramesh Kalyanraman, Kalyan Jewellers Executive Director, said that consumers are more likely to shop at chains than independent jewellers. They also spend more on gifts. He said that Kalyan could "easily increase" its revenue by over 25% in the fiscal year which began on April 1. The jeweller plans to open 160 new stores this fiscal year. These will be split equally between the two brands. At the end of March, its bigger rival Titan operated more than 1,000 jewellery stores in India. Roughly half were under its "Tanishq", flagship brand. The executive director of Kalyan Jewellers said that in three years the company's "Kalyan", or "Kalyan"-branded stores, aimed to catch up Titan's "Tanishq", which counts, number. However, he warned that rapid expansion could squeeze the group's core earning margin. Kalyan Jewellers, which opened 136 shops in India in the last year, reported an increase of more than a third in revenues to 250.5 billion Rupees ($2.9billion). This was aided by a double-digit growth in same-store sales. Titan's jewellery business, which is its mainstay, saw its total revenue increase by 21% to 465.7 billion Indian rupees during the fiscal year. $1 = 85.2875 Indian Rupees (Reporting and editing by Mrigank Dahniwala in Chennai)
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Investors consider tariff truce as shares rise and dollar falls
The dollar shook on Wednesday as the relatively benign U.S. data on inflation kept the prospect of Federal Reserve rate cuts later this year alive. Investors were still trying to gauge if the worst trade conflict was over. Financial markets were nervous as Donald Trump's trade war with China appeared to be on hold, following a truce between the two countries. Tony Sycamore, IG analyst, said: "I am a bit cautious about chasing this rally at this level." The worst-case scenario is already priced in. MSCI's broadest Asia-Pacific share index outside Japan rose 1.1% after U.S. shares climbed into positive territory for the entire year, wiping out losses caused by Trump's chaotic tariff rollout. Hong Kong's Hang Seng index rose 1.4% after JD.com, a Chinese ecommerce retailer, posted positive results. This week, investors will focus on the earnings of Tencent and Alibaba. Equity futures predicted a retreat in European markets, and a flat Wall Street day. Investors who were worried about inflationary impacts of U.S. Tariff Policies, which severely undermined expectations of Fed rate reductions in the near future, also found some relief from data overnight that showed softer than expected U.S. Consumer inflation. Although traders expect the inflation rate to rise as tariffs increase import costs, there is still uncertainty about the future as Washington continues to negotiate with its trading partners. The global mood improved after the U.S.-Britain trade agreement last week. It was further improved when U.S.-China announced on Monday that they would suspend their trade war, reduce reciprocal duties, and remove other measures, while they negotiate a permanent arrangement. In an interview with CNN on Tuesday, Trump said he would be willing to deal directly with Chinese President Xi Jinping over the details of a new trade agreement. The "potential" deals that Trump has been touting with India, Japan and South Korea have not yet materialized. "We still have a deadline of 90 days hanging over U.S. China trade relations," Frederic Neumann said, chief Asia economist for HSBC. He added that investors are not taking risks again due to the lingering uncertainty. The Fed warned of increasing economic uncertainty and indicated it was prepared to wait a while to evaluate the impact of U.S. Tariffs before cutting interest rates. The U.S. Dollar, which has been hammered recently due to economic and political uncertainty, fell 0.4% to 146.88 yen and was barely changed at $1.1189 against the Euro. The dollar index had little change after the previous session's 0.8% decline. Bank of America's Global Fund Manager Survey showed that in May, global asset managers had their largest underweight position on the dollar in over 19 years. The Nikkei 225 index of Japan fell 0.4% on Tuesday, reversing a 1.4% gain. Retail sales for April, due Thursday, will be the next big indicator of the health of the U.S. economy. On the same day, Russia and Ukraine will hold talks in Istanbul in hopes of reaching a ceasefire after three years in Europe's deadliest conflict since World War Two. Bank of America’s Global Fund Manager Survey (FMS) revealed on Tuesday that global asset managers had their largest underweight position against the dollar in nearly 19 years as Trump’s trade policy reduced investor appetite for U.S.-based assets. The yield on the benchmark 10-year Treasury note fell 2 basis points to 4.4768. U.S. crude oil fell 0.5% to $63.35 per barrel, remaining near its two-week high. Gold spot was down slightly at $3222.08 an ounce.
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RPT-Deutsche Boerse, Euronext step up battle against IPO flight to US
In the face of U.S. competitors, two of Europe's largest stock exchange operators have stepped up their efforts to keep local initial public offering companies. Marketing and research are challenging the perception that New York listed companies command higher valuations. The stock exchanges of Europe and the UK were hit by a lack of IPOs during the last two years. A number of local companies have chosen to float in the U.S. because of its larger pools of capital, and higher valuations. Deutsche Boerse (which operates the Frankfurt Stock Exchange) warns of sluggish post IPO performance, increased costs, and the threat litigation for firms listing in the U.S. The study found that two-thirds (including Germany) of the companies listed in Europe rose on their first trading day, while only half of European companies listed in America gained on their market debuts. Over time, the European IPOs also performed better than those in the United States. The data does not mention valuations at IPO. However, the exchange highlighted several examples in its report of European listed companies trading at a higher premium than their U.S. listed peers. Euronext operates seven markets, including Amsterdam and Paris. It plans to reissue the same paper, challenging the belief that U.S. listed firms are valued higher than their European counterparts, its spokesperson said. Stefan Maassen is the head of capital market and corporates for Deutsche Boerse. He said: "We see a more intense competition between Europe and America in terms of listing, than we do within Europe." Exchanges receive fees from companies listing on their platforms, as well as from brokers who trade securities. They are considered essential by policymakers in attracting investment. DEEP MARKETS The US capital markets' size and depth are attractive to those who want to list their companies. According to LSEG, based on the closing prices of Monday, the S&P500 index's market capitalisation is $49.5 trillion. This is almost four times greater than that of Europe’s Stoxx 600. European officials are considering new listing regulations to increase access to funding. Deutsche Boerse, Euronext and other European officials are also considering new listing rules to improve access to financing. In its document, Deutsche Boerse said that it had found the average share price of U.S.-listed German companies has fallen by 13% since 2004. It cited trivago.com and Mytheresa.com as two examples. Both have seen their prices fall since flotation. Frankfurt issuers saw a rise of 24%. New Financial, a capital markets think-tank, found that 130 European companies, worth $667 billion, chose to either list or relocate their primary listing in the United States during the last decade. According to the think-tank, 70% of these are trading at a discount from their original listing price, with a fall in average of 9%. In a speech on Tuesday, Christian Sewing, CEO of Deutsche Bank, commented on the move of European companies to the U.S. Deutsche Boerse warns that cross-border listed firms could face greater lawsuit risks. Some market participants do argue that the possibility of litigation provides shareholders with a path to redress. Exchange executives claim that the tariff-induced turmoil in U.S. markets may also increase the appeal of European exchange markets. Some market participants, such as Eva-Maria Wiecko of Rothschild & Co's Head of Equity Market Solutions for Germany and Austria, are more sceptical. In recent years, the U.S. stock market has experienced inflows. However, European markets have seen a large amount of outflows. Wiecko stated that "the recent rebalancing is just a fraction of this number, underscoring continued relative strength in the U.S. Market."
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Oil drops as traders keep an eye on the rise in U.S. crude stocks
The oil prices fell on Wednesday, as traders watched for a possible increase in U.S. crude stocks. Prices remained near their two-week highs though amid optimism following the United States' and China's agreement to temporarily lower reciprocal tariffs. Brent crude futures dropped 39 cents or 0.6% to $66.24 per barrel at 0400 GMT. U.S. West Texas Intermediate crude (WTI), which is a benchmark for the U.S., fell 36 cents or 0.6% to $63.31. Both benchmarks rose more than 2.5% the previous session. China and the United States agreed to suspend their trade war at least for 90 days. The United States reduced tariffs from 145% to 30%, while China reduced duties on U.S. imported goods to 10%. "The U.S./China economic pause may have crafted a narrative which could invigorate the demand amidst a background of cautious optimism," said Priyanka Sackdeva, Senior Market Analyst at Phillip Nova. Sachdeva said that for the moment, optimism was tempered by expectations of an enormous increase in U.S. crude oil inventories. She said: "This sharp contrast from last week's substantial drawing signals that the supply side is still struggling with significant challenges. Market watchers are on edge, wondering what the next twist and turn will be." Market sources cited American Petroleum Institute data on Tuesday to say that crude stocks had increased by 4.3 millions barrels during the week ending May 9. The U.S. Energy Information Administration will release its official weekly inventory data on Wednesday, 10:30 am EDT (1430 GMT). Investors continue to be attentive to demand signals. Rystad's energy analysts stated in a report that the agreement "eroded some pessimism on the demand side," but warned against any lasting impact of tariffs, despite the rollbacks. The market also watches U.S. president Donald Trump's Gulf tour, which began on Tuesday, with an appearance at a Riyadh investment forum, where he announced that the U.S. will lift longstanding Syrian sanctions and secured a pledge of $600-billion in Saudi investment. Mukesh SAHDEV, Rystad's global head for commodity markets, said that preventing oil prices spikes during the summer travel period will be an important part of the President's agenda. He added that the United States might be able to take advantage of lower oil prices in order to purchase more Middle East crudes for its Strategic Petroleum Reserve. Sahdev stated that the biggest unknown is whether U.S. action in relation to Iran, Russia or Venezuela will lead to supply disruptions or increases. The United States announced new sanctions against about 20 companies on Tuesday. They claimed that they were helping the Iranian Armed Forces General Staff, and its front company Sepehr Energy to send Iranian oil from Iran to China. The sanctions come after a fourth round in Oman of U.S. and Iran talks to resolve disputes about Iran's nuclear program. Reporting by Colleen Lerh and Jeslyn Howe, both in Beijing; editing by Sonali and Clarence Fernandez.
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London metals mixed amid lingering cautiousness over US-China trade truce
Investor caution continued despite a pause to the U.S. China trade war that has weighed heavily on the global economic and financial markets. As of 0334 GMT on Wednesday, the London Metal Exchange's (LME's) benchmark copper was $9,582 per metric ton, down 0.2% since Tuesday's closing and 0.3% below Tuesday's session high of $9,614, which was also the highest level since April 3. U.S. president Donald Trump said Tuesday that he would be willing to deal directly with Chinese President Xi Jinping in order to finalise details of a trading agreement. Both countries agreed to lower reciprocal tariffs, implement a 90 day suspension of action and Washington announced it would reduce the "de minimis tariff" for low-value shipments coming from China as low as 30 percent. A trader stated that "the uncertainty surrounding trade tariffs continues, and while we await further updates it is important to remember that the truce period is only a transitional one, leaving the future unclear in three months." Other London metals include aluminium, which rose by 0.8% to 2,509 dollars a ton. Zinc gained 0.4%, while lead fell 0.3%, to 1,983, and nickel, which climbed 0.1% to $15,755. Tin lost 0.2% to $32,645. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.8%, to 78.510 yuan per ton ($10,898.08), due to falling inventories and strong domestic demand. Copper inventories The Shanghai Futures Exchange tracked 80,705 tonnes in its warehouses. A slower decline rate helped ease supply concerns. SHFE aluminium rose 1%, to 20,190 Chinese yuan per ton. Zinc gained 1.1%, to 22,585 Yuan. Lead fell 0.1%, to 16,930 Yuan. Nickel price increased 0.7%, to 125.060 Yuan. Tin advanced 0.6%, to 264.830 Yuan. $1 = 7.2132 Chinese Yuan (Reporting and editing by Sherry Jackson and Savio d'Souza).
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Seatools Gets Fengmiao 1 Offshore Wind Job from CDWE
Seatools, a subsea technology company, has secured a contract by CSBC-DEME Wind Engineering (CDWE) for the design, engineering, and delivery of the metrology and control system for the Pre-Piling Template (PPT) at the Fengmiao 1 Offshore Wind Farm in Taiwan.The Fengmiao 1 wind farm will feature jacket-type foundations installed using pre-installed pin piles.Seatools’ metrology and control system will be integrated into CDWE’s piling template to ensure accurate positioning of piles within tight tolerances -an essential element for successful jacket installation.While the system design leverages technologies from Seatools’ toolbox, the solution will also integrate new technologies to further boost operational efficiency during the piling campaign.Advanced simulation models will support first-time-right installation, reducing offshore commissioning time and risk.“We are proud that CDWE has once again entrusted Seatools with this critical scope, following our earlier collaborations on Hai Long and Zhong Neng. This repeat business reflects the trust we’ve built through consistent delivery, technical excellence, and our ability to adapt to each project’s unique challenges. With our proven technology and experience, we aim to deliver robust, high-performing equipment that enables CDWE to execute the piling campaign efficiently and without interruption,” said Jan Frumau, Managing Director of Seatools.Engineering activities for the system are already underway and will continue in close collaboration with CDWE.
Dollar struggles as investors consider tariff truce
The dollar wobbled on Wednesday as the relatively benign U.S. Inflation data fueled prospects for rate cuts from the Federal Reserve this year, even though investors were still trying to gauge if the worst trade conflict was over.
Financial markets were nervous as Donald Trump's trade war with China appeared to be on hold, following a truce between the two countries.
Tony Sycamore, IG analyst, said: "I am a bit cautious about chasing this rally at this point." We'll have to wait and see what happens in terms of headlines, the framework for further tariff negotiations with foreign countries, but at this stage the worst-case scenarios has already been priced out.
MSCI's broadest Asia-Pacific index outside Japan rose 0.9% early in the day after U.S. shares climbed into positive territory for this year, wiping out losses caused by Trump's chaotic tariff rollout.
Hong Kong's Hang Seng index climbed in early trading, lifted by tech shares after Chinese ecommerce retailer JD.com reported strong results. This week, investors will focus on the earnings of Tencent and Alibaba.
Equity futures showed a retreat in the European and U.S. market.
Investors who were worried about inflationary impacts of U.S. Tariff Policies, which severely undermined expectations of Fed rate reductions in the near future, also found some relief from data overnight that showed softer than expected U.S. Consumer inflation.
Although traders expect the inflation rate to rise as tariffs increase import costs, there is still uncertainty about the future as Washington continues to negotiate with its trading partners.
The global mood improved after the U.S.-Britain trade agreement last week. It was further boosted when U.S.-China announced on Monday that they would suspend their trade war and reduce reciprocal duties for 90 days while they negotiate an arrangement more permanent.
Trump has also touted potential deals with India, Japan and South Korea.
The Fed warned of increasing economic uncertainty and indicated it was prepared to wait a while to evaluate the impact of U.S. Tariffs before cutting interest rates.
The U.S. Dollar, which has been hammered recently due to economic and political uncertainty, fell 0.2% against yen and remained unchanged at $1.1866 against the euro. The dollar index was barely changed following a 0.8% decline in the previous session.
The Nikkei 225 index of Japan fell 0.7% on Wednesday, reversing a 1.4% gain.
Retail sales for April, due Thursday, will be the next big indicator of the health of the U.S. economy. On the same day, Russia and Ukraine will hold talks in Istanbul in hopes of reaching a ceasefire after three years in Europe's deadliest conflict since World War Two.
Bank of America’s Global Fund Manager Survey (FMS) revealed on Tuesday that global asset managers had their largest underweight position against the dollar in nearly 19 years as Trump’s trade policy reduced investor appetite for U.S. investments.
The yield on the benchmark 10-year Treasury note fell 2 basis points to 4.4768.
U.S. crude fell 0.3% to $63.48 per barrel while spot gold dropped slightly at $3244.79 an ounce.
(source: Reuters)