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Mexico and Dominican Republic propose joint effort to combat sargassum seaweed
His office announced on Wednesday that the Dominican Republic’s Foreign Minister Roberto Alvarez, along with top Mexican officials, have proposed a bi-lateral roundtable to discuss the environmental impact of sargassum on both countries' Caribbean coasts. Why it's important As mountains of pungent decomposing sargassum pile up on Caribbean coastlines, hotel workers struggle to keep the beaches clean. This releases irritant gasses, which smother marine ecosystems, and lowers occupancy rates in seaside resorts. CONTEXT Atlantic sargassum, a type algae, has increased dramatically over the last decade. This is due to nutrient pollution, which was exacerbated by the deforestation of the oceans and the warmer temperatures. KEY QUOTE The Dominican government issued a press release saying that the two countries proposed to create a round table between their foreign and environment ministers in order to combat the threat of sargassum on the environment. By the Numbers According to the World Travel and Tourism Council, tourism could boost Mexico and Dominican Republic's economies by $281 billion and $11 billion respectively by 2025. Both would be breaking records and represent about 15% of GDP. Scientists at Mexico's UNAM University warned in June that sargassum levels could be double what they were last year. They added that 10%, or 400,000 tons, of it, could reach Caribbean coasts by 2025. Scientists said that a quarter of the sargassum could reach Mexico. What's Next? Many nations are interested in repurposing sargassum to produce useful materials, such as biofuels and fertilizers, or bioplastics. However, removing heavy metals and toxins such as arsenic is expensive, and the research process remains at an early stage. Investors seeking consistent yields are hindered by the unpredictable nature of sargassum blooms. (Reporting and editing by Jamie Freed; Sarah Morland)
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Texas Pacific Land announces a rise in profit for the quarter on higher royalties
Texas Pacific Land announced a higher core profit for the second quarter on Wednesday as higher royalties revenues offset lower oil prices. The results are coming as the energy sector braces itself for the impact of U.S. president Donald Trump's proposed tariff plans that have weakened oil prices and caused concern about global demand. The company earns money from land usage fees, construction materials sales, water treatment or sourcing services, and oil and natural gas royalty interests. The total revenue for the second quarterly increased from $172.3 to $187.5 millions, largely due to a 6% increase in oil and natural gas royalties. Brent crude was 20% lower than the previous year's second quarter, mainly due to U.S. Tariffs, their impact upon global economic growth, and increased OPEC+ production. Texas Pacific's average realized oil price for the third quarter was $63.99, a decline of 21% from $80.93 per barrel realized last year. The company reported net income of $116.1 millions, or $5.05 a share, for its second quarter ending June 30. This compares to $114.6millions, or $4.98 a share, one year ago. (Reporting from Vallari Srivastava in Bengaluru, Sumit Saha in New Delhi and Katha Kaalia in Bengaluru. Editing by Mohammed Safi Shamsi.)
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CRH expects the US market for low carbon cement alternatives to double by 2050
The head of the U.S.'s largest building materials manufacturer, CRH, said that the market for supplementary cementeditious materials, a low carbon alternative to cement, will double by 2050. CRH's CEO Jim Mintern said this after the industrial giant announced a better-than-expected 9% increase in its second quarter core profits and forecasted full-year earnings between $7.5 billion and $7.7billion, compared to a previous range of $7.3billion to $7.7billion. Last month, the Irish-based U.S. listed firm agreed to purchase U.S. SCM Supplier Eco Material Technologies for $2.1 Billion to meet the growing demand for alternative ash-based materials. Mintern stated that "we were attracted to the deal" because we believe that the SCM industry in the U.S. will double by 2050. This deal places us at the top of the list in terms size and leadership in America (and) provides us with a good growth platform." He added that the acquisition would increase CRH's ability to serve the US SCM market, which has a capacity of 135 million metric tons. CRH is North America's third largest cement producer. CRH's adjusted second quarter earnings before interest tax, depreciation, and amortization (EBITDA), of $2.5 billion, were higher than the $2.4 billion average expected by seven analysts polled in LSEG SmartEstimate. Mintern stated that the higher end of the full-year guidance range is based on the trading in July, a seasonally important month, and an increase year-over-year in volume and margins for contracted work across the major U.S. products lines. (Reporting and editing by Chris Reese; Padraic Hlpin)
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Brazil's iron ore exports in July hit a record volume
Official data released on Wednesday showed that Brazil exported 41.1 millions metric tons (metric tons) of iron ore during July, breaking its previous record of 39.5 million tons, set in December 2015. Why it's important Brazil is the second largest exporter of iron after Australia. Brazil exports iron ore, along with soybeans and oils. Brazil reported a trade surplus of $7.1 billion for July, a 6.3% decline from the previous year. By the Numbers Brazilian iron ore exports, led by Vale, grew 4.7% from July last year. However, revenues fell 8.8%, to $2.62billion, as prices dropped about 13%. KEY QUOTE In a recent statement, the Brazilian mining lobby group Ibram stated that "June-July saw a rebound in confidence in the sector because of the progress of major projects in China and the resumption in production." Ibram noted that this was one factor which may have contributed to the increase in global prices since late June. (Reporting and writing by Roberto Samora, Editing by Sarah Morland & Leslie Adler; Writing by Andre Romani)
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General Matter signs lease agreement with US Department of Energy to enrich Uranium
General Matter, an American startup that hopes to enrich uranium to fuel nuclear reactors, has signed a lease agreement with the Department of Energy to build a facility in a former federal factory in Kentucky. The project, which will cost $1.5 billion, will be located at the former Paducah gaseous diffusion plant. In the 1950s, the U.S. constructed the site to produce enriched Uranium initially for nuclear weapons. Later, the facility produced enriched Uranium for nuclear reactors. It closed in 2013. DOE stated that construction is scheduled to start in 2026 and enrichment operations will begin before the end of the decade. The company estimates that the plant will create 140 permanent jobs. Scott Nolan, CEO of General Matter, said that reactivating this site would "power an era of American independence in energy." General Matter hosted a ceremony at Paducah, attended by Kentucky Governor Andy Beshear and U.S. Senators and Representatives, as well as DOE officials. The company has not stated how much enriched Uranium it will be producing. The U.S. relies heavily on foreign suppliers including Russia, even though Urenco, based in the UK, has the capacity to meet about a third (or more) of the U.S. needs for enriched uranium. The former president Joe Biden imposed a ban on Russian imports of enriched uranium that allowed waivers up until 2028. General Matter is among several companies who have received DOE grants for the production of both low-enriched or LEU and a special fuel known as high-assay, low-enriched or HALEU. These companies must obtain licenses from Nuclear Regulatory Commission. HALEU may be used for high-tech reactors, which are expected to begin operating in 2030. General Matter has not revealed the technology that it will use to enrich the uranium nor the funding for the project. The company said that it "incubated" the project within Founders Fund - a venture capital firm in which Nolan was a partner. The DOE stated that the lease will provide General Matter with at minimum 7,600 cylinders uranium fluoride fuel to be used for enriching into reactor fuel. The DOE claims that the process will save Americans $800 million by avoiding disposal costs. Global Laser Enrichment (a company owned jointly by Silex Systems, Cameco, and Cameco) is also planning to enrich uranium at Paducah. It was one of the six companies that were awarded initial U.S. government contracts for domestic uranium production. It will use lasers instead of centrifuges to enrich uranium. Nima Ashkeboussi said, "From the standpoint of technology readiness and regulatory timeline, nobody is going to get a NRC license faster than us." GLE intends to enrich waste byproducts or tailings from DOE's enrichment program. General Matter stated that the "vast" majority of the uranium they will enrich will come from domestic sources. It said that the DOE reserves tailings to enrich uranium in case of a shortage.
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Wall Street gains as oil trades lower and ends in volatile volatility
Wall Street indexes rose on Wednesday, boosted by a slew of positive corporate earnings. U.S. Yields also increased, but European shares ended flat, ending a two-day streak of gains. The U.S. president Donald Trump issued a executive order that imposed an additional 25% tariff for goods coming from India. He claimed the country had imported Russian oil. The oil prices sawsawed up and down as Trump's comments about progress in negotiations with Moscow caused uncertainty over whether the U.S. will impose new sanctions against Russia. The MSCI index of global stocks rose by 0.65% to 932. Apple shares rose after the news that it would announce its domestic manufacturing pledge. The Nasdaq Composite was also up 1.21% at 21,169.42. The Dow Jones Industrial Average increased 0.18% to 42,193.12 while the S&P 500 grew 0.73% to 6345.06. Earnings have a mixed response. "Earnings are seeing a mixed reaction. The STOXX 600 Index in Europe closed 0.06% down, with healthcare stocks dragging it down after Trump announced his tariff plan for pharmaceuticals. The broadest MSCI index of Asia-Pacific stocks outside Japan fell by 0.08%, closing at 654.33, while Japan’s Nikkei gained 0.60%, reaching 40794.86. Wall Street closed down on Tuesday, after data revealed that the services sector activity had unexpectedly plateaued in July. The markets increased their bets that the Federal Reserve will cut rates in September after the soft data on Friday. Samy Chaar is the chief economist of Lombard Odier. He said that there's a tug-of war between the concrete signs we have seen that show the U.S. economic slowdown and the fact that rates are going down, which will remove some pressure on valuations. The focus of traders has been on the tariff impact. "The market is focusing more on the fact we're getting moderate tariffs. But I wonder if they aren't paying enough attention to the fact we could still be getting more, like pharmaceuticals," Chaar said. Trump said on Tuesday that he will announce tariffs on chips and semiconductors in the coming week. The U.S. will initially impose a'small tariff' on pharmaceutical imports, before increasing the tariff substantially over the next year or two. He said that the U.S. and China were close to a deal on trade, and he planned to meet with his Chinese counterpart Xi Jinping by the end of this year if a deal was reached. Brazil has submitted a request for consultation at the World Trade Organization regarding U.S. Tariffs. Treasury yields have gained on the government bond markets. The yield on the benchmark 10-year U.S. notes increased 3.4 basis points from late Tuesday to 4.23%. The yield on benchmark German 10-year Bunds increased 0.2 basis points from late Wednesday to 2,644%. FedWatch from the CME shows that Fed funds futures indicate a 94% probability of a rate reduction next month. At least two cuts are priced in this year. Investors await Trump's choice to fill the upcoming vacancy in the Fed board. Trump announced that a decision would be made shortly, but ruled out Treasury Secretary Scott Bessent, who is currently the chair of the Fed board. His term expires in May 2026. The euro rose 0.68% to $1.1653. The dollar index (which measures the greenback in relation to a basket currency) fell by 0.5%, falling to 98.24. Brent crude futures dropped 75 cents or 1.1% to settle at 66.89 per barrel. U.S. crude fell 81 cents or 1.2% to settle at 64.35. Spot gold dropped 0.36% to $368.65 per ounce. U.S. Gold Futures were flat at $3433.4.
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APA's profit beats expectations in the second quarter on higher natgas production and prices
APA Corp beat Wall Street expectations for quarterly profits on Wednesday as higher natural gas prices and stronger production in Egypt helped to blunt the impact from lower oil prices and reduced total output. The shares of the company rose 2% during extended trading. Natural gas prices have rebounded since last year, mainly due to hotter weather conditions, higher demand for electricity generation, and lower U.S. stock injections. APA's average realized gasoline prices increased by nearly 29% to $2.28 per 1,000 cubic feet in the second quarter of last year. The volume of natural gas rose by 7%, to 894 millions cubic feet per day. This was largely due to a strong performance from Egypt. John Christmann, CEO of APA, said: "In Egypt we have exceeded our quarterly production guidance and increased our expectations once again for the gas programme in the second half year." APA also announced that it had received presidential approval to drill on an additional 2 million acres of land in Egypt. The Egyptian results help to cushion the impact of lower crude oil prices on assets. Brent crude was about 20% lower than a year ago in the second quarter, weighed down mainly by U.S. tariffs on imports, worries over global growth, OPEC+'s increasing supply, and persistent geopolitical tensions. After Israel's strike on Iranian nuclear sites in June, the price of a barrel briefly rose to $80 per barrel. However, it fell back down to $67 at quarter-end. APA reported that its average realized crude oil price for the third quarter was $65.58 per barrel, down from $82.28 last year. The company reported that its total quarterly production was down 2%, to 465.078 barrels equivalents per day from last year. According to data compiled and analyzed by LSEG, the Houston-based company reported an adjusted profit per share of 87 cents for the three-month period ended June 30. This compares with the 48 cents average analyst estimate. (Reporting by Arunima Kumar in Bengaluru; Editing by Alan Barona)
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Western Midstream buys Aris Water for $1.5 Billion
Western Midstream Partners announced on Wednesday that it would acquire Aris Water Solutions for $1.5 billion in cash and stock. The company wants to diversify its operations in the Permian basin. After the bell, shares of Aris Water Solutions rose by over 21%. Western Midstream, a natural-gas focused pipeline operator, has sought to build a leading platform for water infrastructure in the U.S.'s top oilfield and diversify their customer base throughout West Texas and southeast New Mexico. The company said that the acquisition would allow it to expand its footprint to the north, into Lea and Eddy Counties of New Mexico. It also provided access to additional throughput opportunities in its crude-oil, natural-gas and produced-water business. Aris has a full-cycle infrastructure of water assets, including 790 miles produced-water pipelines, 1.8 million barrels of produced water per day (mmbd), 1.4 mmbd water recycling capacity and 625,000 acres of dedicated land from counterparties of investment grade. Western Midstream CEO Oscar Brown stated that the acquisition would result in a "produced water gathering, disposal and recycling business which can meet flow assurance customers' needs." Occidental Petroleum, a U.S. shale oil producer, holds a stake of 43.5% in the pipeline operator. Aris shareholders receive 0.625 units of Western Midstream per Aris share or $25 in cash. The maximum cash consideration is $415,000,000. The deal should close by the end of 2025. Reporting by Vallari Shrivastava, Bengaluru. Editing by Alan Barona
Markets await the outcome of Putin-Witkoff's meeting to determine the value of the Russian rouble
Markets and the Russian rouble held their breath Wednesday, as they awaited President Vladimir Putin's Kremlin meeting with U.S. Special Envoy Steve Witkoff.
Witkoff had "useful" and "constructive" talks with Putin, a Kremlin aide Yuri Ushakov stated, two days ahead of the deadline set by Donald Trump to have Russia agree to peace in Ukraine, or face new sanctions.
LSEG compiled data based on OTC quotes that showed the rouble at 80 per dollar. The yuan was down 0.2% at the Moscow Stock Exchange. The main Russian stock market index fell by 0.15%.
Analysts at T-Bank said that the market was awaiting the result of the meeting between Steve Witkoff and Vladimir Putin.
Many analysts think that the rouble has been overvalued, and is waiting for a trigger which will cause it to weaken.
The Russian currency rose by as much as 45% in value against the dollar in early this year. This was partly due to the expectation of a thaw between Russia and the U.S., as well as the hope for a peaceful resolution in Ukraine.
Trump has several options to increase pressure on Russia, if Witkoff does not return with anything. These include possible new sanctions and trade tariffs against Russian oil buyers and the energy and banking sector of Russia.
The Kremlin had earlier stated that Russia was immune to sanctions due to its long-term experience. The latest round of U.S. sanction against a Russian energy bank imposed by the United States last year led to a decline in the rouble.
Evgeny Loktekhov, a PSB Bank analyst, said that the currency market would be watching for the news of the special representative of the U.S. president and any clarifications regarding the possible U.S. sanction situation. (Reporting and editing by Bernadettebaum; Gleb Bryanski)
(source: Reuters)