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CarMax reports quarterly loss due to weak demand for used cars and goodwill charges
CarMax, a retailer of used cars, reported a?loss for the fourth quarter on Tuesday. This was due to a goodwill impairment charge and declining margins. In premarket trading, shares of the Richmond-based Virginia company fell 6.8%. Used-car dealers have struggled to sell inventory at a profit, as consumer demand has weakened and import tariffs have squeezed margins. CarMax's gross profit on a used vehicle dropped to $2,115 during the third quarter from $2,322 one year ago. Wholesale gross profit per unit dropped to $940, down from $1,045?a year earlier, as the company cut prices to increase demand. The new CEO Keith Barr stated that the largest U.S. Used-Car retailer is moving with "urgency" in order to improve efficiency and regain sales momentum. Gasoline prices are nearing $4 per gallon and have dampened consumer confidence. This has led to a reduction in spending, and a rise in interest in electric and hybrid cars that are more affordable. CarMax reported that it had recorded a non-cash impairment charge of 141.3 million dollars in the third quarter. It cited a decline in its share price and a weaker performance fiscal 2026. The company's quarterly revenue dropped 1% from $5.95 billion a year earlier. CarMax posted a?loss? of $120.7million, or 85c per share. This compares to a profit?of $89.9million, or 58c per share?a year ago. It earned a?quarterly profit of 34 cents, as compared to 64 cents last year. (Reporting from Nathan Gomes, Bengaluru. Editing by Tasim Zaid)
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Dollar nears pre-war level on hope of US-Iran settlement
On Tuesday, global stocks rose and oil prices fell. The dollar also lost its appeal as a safe haven. Investors bet that the Middle East conflict will end soon despite the U.S. blocking Iran's ports following the collapse of the peace talks over the weekend. Negotiating teams from the?U.S. Four sources have said that Iran and the United States could return to Islamabad in the coming week. The talks, which were the highest level between the two nations since the Islamic Revolution of 1979, ended without any breakthrough. U.S. president Donald Trump said Iran wanted to make a deal but added that he would refuse to accept any result which allowed Tehran to possess a nuclear device. As the first quarter earnings season gets underway, hopes of a diplomatic down-ramp helped drive the S&P back to its pre-war level. This was largely due to gains in large tech stocks. The STOXX Europe 600 index rose 0.6% on Monday, but is still 2% below the pre-conflict levels. "Markets trade hope, not resolution. "Markets are trading hope, not resolution." She added, "I would expect a choppy and headline-driven tape, rather than a clear risk-on trend." Nasdaq and S&P futures both rose by 0.4% as JPMorgan reported earnings. The dollar is heading towards a'seventh consecutive daily decline against a basket major currencies, approaching pre-war levels. Bank of America's global fund manager survey conducted by the bank from April 2 through April 9, which covered 193 asset managers with $563 billion in assets, revealed that sentiment was at its lowest since last June. "Expectations of growth (are) the lowest since March 2022. Inflation expectations are the highest since May 2020. All contrarian -positive for risk assets so long as the ceasefire sends oil price below $84 a barrel, but not a 'close-eyes-and-buy'," strategists led by Michael Hartnett said. Investors expect oil prices to drop from $98 at the moment to $84 by year's end. The U.S. has blocked Iran's ports. This angered Tehran and added uncertainty to the Strait of Hormuz. However, shipping data shows that a Chinese tanker sanctioned by the U.S. passed through this waterway on February 2. Trump said that Washington would "block Iranian vessels" and any ships that paid tolls demanded from Tehran. Any Iranian "fast attack" ships that came near the blockade? would be eliminated. Prices fell as expectations of a further dialogue to end this war overshadowed concerns about supply disruptions. Brent crude futures dropped 0.3% to $99 per barrel while U.S. oil futures dropped 1.6% to $97.5 a barrel. In China, data on ?Tuesday showed exports slowed in March as demand linked to an artificial-intelligence boom ran up against the effects of the war. DOLLAR? ON THE BACKFOOT The euro increased by 0.4% to $1.18 while the sterling rose by 0.5% to $1.357 - a six-week-high, which puts the pound at levels above those of pre-war. The yields on U.S. Treasury bonds have been drifting lower. The two-year yield was last?down by 1 basis point to 3.77%, and the benchmark 10-year yield was at 4.29%. The rising energy prices have fueled inflation concerns, and investors are preparing for the possibility of several major central banks moving towards rate increases. This would be a dramatic reversal to pre-war expectations that rates would be cut or paused. The yields on two-year Treasury bills are now almost 40 basis points higher than the levels of late February. Gold spot prices rose by 0.8% in other countries to $4,776 per ounce. Rae Wee contributed additional reporting from Singapore. Mark Potter and Jan Harvey edited the article.
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Due to the Iran War, industry groups have reduced their global steel demand forecasts for 2026.
The World Steel Association cut its forecast on global 'crude steel demand' for this year. This was partly because of the Iran War, which has slashed Middle East consumption. The industry group reduced its forecast of growth in 2026 steel demand to 0.3%, or 1.72 billion tons. This is down from an earlier forecast in October that was 1.3%. "We expect that the conflict in the Middle East will result in a sharp decline in the region's demand for steel in 2026. This was a strong area for growth," said Alfonso Hidalgo Calcerrada. "We're now transitioning to a modest growth path in 2026 with an acceleration more pronounced projected for 2027," said?Alfonso Hidalgo Calcerrada, chair of the group's economics?committee. The group said that the demand for crude steel is expected to increase by 2.2% to reach 1.76 billion tonnes next year. The group added that China, the world's largest steel producer, will see its output drop by 1.5% in this year due to its struggling property and construction sectors and remain flat in 2027. As the realignment of China's property market stabilizes, we expect that Chinese steel demand will transition into a period of cyclical stabilization. The group predicted that demand in India, 'the world's fastest-growing major steel market, will?remain high, rising 7.4% this year, and 9.2% by 2027. Reporting by Eric Onstad, Editing by Alison Williams & Sonia Cheema
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Sources: Sinopec purchases Russian oil to replace Mideast supplies after US waiver
Sinopec, the Chinese state oil company, has purchased Russian crude oil in both March and April after the U.S. lifted sanctions temporarily to ease global supply shortages. Sources have estimated that Sinopec purchased 8-10 cargoes a year of ESPO blend oil from the eastern port Kozmino. Another source estimates it to be about 10 cargoes. Each ESPO shipment is 740,000 barrels. Sinopec purchased the cargoes for a premium of between $8 and $10 per barrel over ICE Brent. Before the Iran conflict, Russian crude was traded at a discount around $10 per barrel. Sources spoke under condition of anonymity. The U.S. Treasury Department permitted purchases of Russian oil 'and products' at sea starting in mid-March, with a waiver of 30 days that expired on 11 April. This was part of the efforts?to maintain global energy prices throughout the U.S./Israeli war against Iran. The waiver led the trading arms of Sinopec and PetroChina, to inquire with suppliers about possible purchases. Previous reports stated that they had stopped seaborne purchases of Russian oil since October because of Western sanctions. Since then, it was not clear if PetroChina had purchased seaborne cargoes. Sinopec didn't immediately respond to an inquiry for comment. Big Middle East Exposure Sinopec is the largest refiner in the world. It gets about half its crude oil from the Middle East. This leaves it vulnerable to the possible closure of the Strait of Hormuz due to the U.S. and Israeli war against Iran. Sinopec said last month at a'results meeting that it was reducing runs in March by 5% because of disruptions, and assessing the potential of purchasing Russian oil on a waiver. Kpler data shows that China's imports of Russian crude oil by sea in March were 1,82 million bpd. This is down from February's record high of 1,92 million bpd. Imports for April are at 1,92 million bpd so far. The waiver from the U.S. boosted demand for?Russian oil by Indian refiners, who bought millions of barrels at sea. The market expects Washington to extend its waiver, even though it has not made an announcement. Reporting by Siyi Liu, Chen Aizhu and Florence Tan in Singapore. Editing by Clarence Fernandez and Florence Tan.
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Copper reaches six-week peak on prospects of more US-Iran Peace Talks
The copper price soared to its highest level in six weeks Tuesday, thanks to optimism?about resuming peace talks between the U.S. and Iran as well as a weaker dollar. The benchmark three-month copper price on the London Metal Exchange increased 0.8% to $13,161 per metric tonne by 0945 GMT. It had previously reached its highest level since 3 March at $13,210.50. Five sources have told us that the U.S. team and Iran's team could be back in Islamabad this week. Ewa 'Manthey, commodities analyst at ING, said that optimism about the US and Iran restarting peace talks has helped to reverse some of recent pressure metals have faced from fears of rising energy costs and a weaker economy. The market is still dominated by headlines. "Any escalation of the conflict, renewed spikes in energy costs or signs that demand is weakening could quickly undermine sentiment." The Shanghai Futures Exchange's most traded copper contract ended the daytime trading up 2.1% to 101,190 Yuan ($14,844.43) a ton. A softer dollar index also supported?prices, which has been trading at its weakest level since March 2. This makes commodities priced using the U.S. dollar cheaper for buyers who use other currencies. Concerns about the Middle East conflict's impact on energy prices, which are a major factor in raising overall costs, have also boosted demand for copper, a material used in manufacturing, construction and power. The Middle East war has already increased costs by 10 cents a pound for the world's largest copper miner?Codelco. Antofagasta also expressed concern over rising fuel and input prices. Sudakshina?Unnikrishnan, an analyst at Standard Chartered Bank, said that mine supply constraints are still present and Chile's output of copper has been underperforming so far in 2026. Concerns about a possible impact on copper and nickel production were sparked by a tight supply of sulphuric acids, which was exacerbated when reports emerged that China would stop exports from?May. LME nickel gained 1.1%, reaching $17.890 per ton after hitting its highest level since February 27, $17.950. This was due to the revision of the formula used to calculate mineral reference prices by top supplier Indonesia. LME aluminium fell 1.1% to $3,567 per ton. Zinc rose 0.3% at $3,326, while lead increased by 0.4% to $1 929. Tin jumped 2.6% from $49 500 to $48,500.
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Kremlin is pleased that Magyars in Hungary are ready to engage in a 'pragmatic dialog' with Russia
The Kremlin stated on Tuesday it was pleased that Peter Magyar, the Hungarian prime minister-elect, seemed "ready for a pragmatic dialogue with Russia" and would base its position on specific actions taken by his government Russian hardliners mourned Viktor Orban's defeat, a close ally of Moscow, who lost an election over the weekend to a centre-right upstart rival Magyar. The Kremlin said that it was "ready" to talk with the new government. Dmitry Peskov, Kremlin spokesperson, told reporters: "For the moment, we can note with satisfaction his (Magyar) willingness to engage in pragmatic dialogue." "In this instance, there is a?mutual?willingness on our part. We will then proceed to follow the specific steps taken the new Hungarian Government." Russia is selling oil and gas in Hungary, and building a new nuclear power station south of Budapest. Orban's support for Moscow was due to his opposition to EU sanctions against Russia because of its war in Ukraine. He also opposed Kyiv joining the EU and blocked a 90 billion euro ($105 billion) EU loan to Ukraine. Magyar's pro-EU, pro-NATO rhetoric has been combined with public acknowledgement that he must hold talks with Russian President Vladimir Putin. He will also need to continue to purchase Russian oil and gas despite the talk of reviewing and diversifying contracts. (Reporting and writing by Dmitry Antonov, editing by Guy Faulconbridge/Andrew Osborn).
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Shell, unlike BP, allows AGM votes on Follow This Climate resolution
Shell's notice of the meeting states that it will allow its shareholders to vote on a resolution presented by climate activist investor groups Follow This and recommend a negative vote. This'stands in stark contrast to BP whose board decided 'not to include the Follow This Resolution on its agenda. This prompted some of its shareholders, and influential proxy advisor groups, to recommend a vote against the board. Follow This Resolution calls on Shell to reveal how its strategy will perform in scenarios of declining oil and gas demand. BP said that the resolution is invalid and will be 'ineffective' if passed at their AGM. Shell stated that Follow This's questions are covered in full by Shell's current?disclosures, which allow shareholders to model the financial strength of the company using any price scenario they choose. Shell also said that if the Follow This Resolution passed, it would be against "good governance" because it would bind Shell to certain scenarios which are subject to change. Reporting by Shadia Nazarella; Editing and proofreading by Kirovan Donovan
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Dollar nears pre-war level on hope of US-Iran settlement
Investors bet on the resolution of the Middle East conflict even as the U.S. blocked Iran’s ports following the collapse of the peace talks over the weekend. Negotiating teams of?the?U.S. Four sources say that Iran and the United States could return to Islamabad in the coming week. Days after the highest level talks between the two nations since the Islamic Revolution of 1979 ended without a breakthrough, the most recent high-level discussions took place in Pakistan's capital. U.S. president Donald Trump stated that Iran is willing to reach a deal but added that he will not accept any agreement which allows Tehran to possess a nuclear device. The S&P 500 has returned to its pre-war level, largely due to gains in large tech stocks. Earnings season for the first quarter is just beginning. The STOXX Europe 600 index rose 0.7% on Monday, but is still 2% below the pre-conflict levels. Markets are trading in hope, not in resolution. "The failed weekend talks didn't?produce any deal, but also they did not close the doors on diplomacy. And that is enough to keep equities pushing higher for now," Charu Chanana said, Saxo’s chief investment strategist. She added, "The issue is that the markets are pricing in the possibility of a de-escalation quicker than it has been proven. I still expect a choppy and headline-driven tape, rather than a clear risk-on trend." Nasdaq Futures rose 0.4%, and S&P500 futures rose 0.2% before a series of earnings from JPMorgan and Wells Fargo. The dollar is 'on track for its seventh daily decline against a basket of major currencies and was nearing levels seen before the war. Bank of America’s global fund manager survey conducted between April 2 and April 9, covering 193 asset management firms with $563 billion in assets, revealed the most negative sentiment since June of last year. "Expectations of growth (are down) the most since March 20,22. For inflation, they are the highest since May 20,21. All contrarian -positive for risk assets so long as the ceasefire sends oil price below $84 a barrel, but not a 'close-eyes-and-buy'," strategists led by Michael Hartnett said. Investors expect oil prices to drop from $98 per barrel at the moment to $84 by year's end. The U.S. has started a blockade of Iran’s ports. This angers Tehran and adds uncertainty around the Strait of Hormuz. However, shipping data shows that a U.S. sanctioned Chinese oil tanker crossed the waterway Tuesday. Trump said that Washington would block Iranian vessels, as well as any ships that pay tolls demanded from Tehran. He also stated that any Iranian 'fast-attack' ships that came near the blockade? would be destroyed. Prices fell as expectations of a further dialogue on the end of the war overshadowed concerns about supply disruptions. Brent crude futures dropped 1.5% to $97.90 per barrel while U.S. oil futures fell by 2.3% to $96.78 a barrel. In China, data on ?Tuesday showed exports slowed in March as demand linked to an artificial-intelligence boom ran up against the effects of the ?war. DOLLAR ON BACKFOOT The euro rose by 0.2% to 1.1782, and sterling reached a six-week-high of $1.353, which puts the pound at a level above that before World War II. The yields on U.S. Treasury bonds have been moving lower. The two-year yield was last?down by 1.7 basis points to 3.7637%, and the benchmark 10-year yield is now at 4.279%. This is a drop of around 1.6 basis points. Energy prices are on the rise, which has fueled inflation fears and caused investors to be prepared for the possibility of several major central banks moving towards rate hikes. This would be a dramatic reversal in expectations from before war. The yields on two-year Treasury bills are now almost 40 basis points higher than late-February's levels. Away from the U.S., spot gold increased by nearly 1%, to $4,784 per ounce. Rae Wee contributed additional reporting from Singapore. Jamie Freed, Mark Potter and Mark Potter edited the article.
CEE ECONOMY - Romanian inflation spikes to highest level since mid-2023, but still below expectations
The Iran 'war caused fuel prices to surge, clouding the outlook for rate cuts.
Data from the National Statistics Board on Tuesday showed that consumer prices increased by 9.87% over the year in March. This is up from 9,31% in February, but still below analyst expectations of 10,35%. Prices increased 0.78% over the month.
The inflation rate reached double digits in the second half last year, after the broad coalition government of Romania raised the value-added taxes and other levies in order to reduce the biggest budget deficit in Europe.
Analysts had predicted that policymakers would begin reducing interest rates in the second half 2026, when the effects of higher taxes and electricity prices would have faded. The economic fallout of the Middle East conflict has added uncertainty to inflation forecasts.
In May, Romania's central banking, which has set an inflation target of 1,5%-3,5%, will publish its updated forecasts. Prior to the start of the war, policymakers expected that inflation would return to the target by the second half 2027.
BCR Bank said that "with the short-term profile of inflation shifting upwards, the central bank will consider?eventual rates cuts at the earliest meeting scheduled for November", BCR bank.
The ECB's moves and expectations (on inflation) are likely to be closely watched by the central bank.
The government has reduced the excise tax on diesel by 0.30 lei ($0.0679) a litre to cushion consumers and businesses. It also capped fuel markups, and limited exports.
The government is also compensating some transport companies for diesel costs. It has also extended the cap on household gas prices to April 2027 by one year.
The 2026 budget approved in March aims to reduce deficit from over 9% to 6.2%. It is based on a 1% economic growth assumption. (Reporting and editing by Sumana Niandy; Luiza Ilie)
(source: Reuters)