Latest News
-
WSJ reports that the US will award $2 billion in quantum computing funds and take equity stakes.
The Trump?administration will award $2 billion in?grants in nine quantum-computing firms in deals where the U.S.?government takes?equity shares,?the Wall Street Journal, citing Commerce Department, reported on Thursday. According to the report, the department agreed to give IBM $1 billion from the package, and GlobalFoundries $375 million. According to a WSJ report, the remaining firms, such as D-Wave Quantum and Rigetti Computing, will receive $100 million each. Startup Diraq could receive up to $38 million. The Trump administration would continue its push to "take equity stakes" in companies that are considered to be critical to the domestic supply chain as well as counter China's dominance of certain sectors including chipmaking. It has taken stakes in large companies like Intel and MP Materials - a rare earth miner. Quantum computers are able to handle complex mathematical problems exponentially faster when they 'harness' the laws of quantum physics. Existing quantum computers spend a large portion of their computing power fixing errors, so they aren't faster than classical computers. IBM, GlobalFoundries, Rigetti Computing, D-Wave Quantum, and Infleqtion have not responded to'requests for comment. In premarket trading, shares of companies?that are part of the deal? rose between 7% to 21%.
-
Oil drops with US-Iran Peace Talks in Focus
Oil prices dropped?on Friday, continuing losses from the previous day as investors watched peace talks between Iran and the United States, while economic activity in Europe?shrank dramatically. Brent crude futures fell 82 cents or?0.8%? to $104.20 a barge by 0949 GMT. U.S. West Texas Intermediate Futures were down $60 cents or 0.6%?to $97.66. The benchmarks fell around 5.6% to their lowest level in over a week on Wednesday after U.S. president Donald Trump announced that talks with Iran are in the final stages. Tehran is responding to the text sent by the U.S., Iran's ISNA reported on Thursday. The news agency added that the Pakistani army chief's visit to Tehran was to "minimize the gaps" and to help achieve an official announcement of agreement. Trump said he was willing to continue attacks against Iran, but he would wait for "the answers" from Iran. ING analysts stated in a 'note' on Thursday that they had been in a similar situation before. This led to disappointment. They forecast an average Brent price for the current quarter of $104 a barrel. Iran warned of further attacks, and announced steps to consolidate its control of the Strait of Hormuz. The Strait remains mostly closed. The strait was used to transport oil and LNG equaling about 20% of the global demand before the war. Kim Fustier is a senior global oil analyst at HSBC. She said that "oil prices have remained relatively confined despite the magnitude of the Middle East disruption." She said that a pullback in Chinese purchases, along with a surge of exports from the Atlantic Basin led by the U.S. as well as the rapid withdrawal of strategic stockpiles and inventories "has eased the immediate availability concerns as well as narrowed the extreme physical disruptions experienced earlier in the crisis." Surveys showed that the economic activity in the Eurozone shrank in May at its fastest rate in over two and a half years as an increase in living costs, mainly due to war,?hammered service demand across Europe. Stockpile Drawdowns Iran announced on Wednesday a new "Persian Gulf Strait Authority", stating that there would be "controlled maritime zones" in the Strait of Hormuz. Iran closed the strait as a response to U.S. attacks and Israeli attacks which started the war in February. Since an April ceasefire, most of the fighting has stopped. However, while Iran has limited traffic through Hormuz and the U.S. blockedaded its coast, both countries are limiting the flow of goods. The war has caused countries to rapidly?tap into their strategic and commercial inventories, raising fears about draining these stocks. Energy Information Administration (EIA) of the United States announced on Wednesday that it had withdrawn nearly 10 million barrels from its Strategic Petroleum Reserve in the past week, which was its largest withdrawal ever. According to EIA data, U.S. crude stocks also dropped?more than expected last weekend. Mingyu Gao is the chief researcher at China Futures for energy and chemicals. He said that with the Strait of Hormuz closed, global refined products and onshore crude inventories will fall to their lowest levels in five years for this time of the year by late May or late June. Reporting by Stephanie Kelly, Sam Li, and Siyi Liu, in London; editing by Clarence Fernandez and Emelia Sithole Matarise, and Susan Fenton
-
Pepco expands in Western Europe to attract value-conscious consumers
Pepco has announced that it is expanding in Western Europe. The discount retailer stated on Thursday that its half-year core profits grew by 17.5%. The Warsaw-listed retailer, which sold the struggling Poundland in Britain last year, plans to open 600 new stores between 2027 and 2030 in Western Europe. This is due to its strong profitability in Spanish and Italian stores. Stephan Borchert, Pepco's CEO, said that the company is "perfectly?positioned? to capitalize on consumers who are looking for value in an uncertain environment. The group will launch a trial store in Ukraine in the western part of the nation. Borchert said that Pepco was serious about helping to develop the war-torn nation. Pepco announced a core profit of EUR516m ($600m) for the first six months of its financial year, and confirmed that it had raised its full-year forecast. The results of this year are an important test for Pepco’s strategic reset, after it sold Poundland in order to focus on its own brand. The company said that the divestment process of its Dealz Brand would be completed in this year. AVOIDING IRAN - WAR? When asked about the Middle East conflict's impact on the group's supply chain, Borchert said that it was "minimal", thanks in part to forward contracts which shielded Pepco against the spike?in fuel and other costs over the short term. Pepco also benefits from its standard routes of Asian shipments. 95% of them have been going around the Cape of Good Hope ever since the Red Sea shipping disruptions in 2024 impacted sales. Borchert was confident in the short to medium term performance but warned that "nobody is sure what will happen next year" if war continues.
-
Japanese auto exports to Middle East plummet in April due to war disruptions
The government reported on Thursday that Japanese car exports to the Middle East had almost been wiped out, as the U.S./Israeli war against Iran disrupted shipping into a region of importance for global automakers such as?Toyota? and?Nissan? According to the collapse, shipments of used Japanese cars and trucks to the region have virtually stopped following the closure of the Strait of Hormuz. The Ministry of Finance released data on Thursday showing that motor vehicle exports into the Middle East fell by more than 90%, both in value and volume, from the previous year. This highlights the auto industry's vulnerability to disruptions of shipping caused by the?Iran war. Government figures show that by 2025, the region will account for approximately 14% of Japan’s global motor vehicle imports. Toshihiro Mibie, vice-chairman of Japan's automobile lobby, told reporters on Thursday that the war is affecting the auto industry through the disruptions in transportation. Mibe stated that the biggest impact on the Middle East is the closing of the Strait of Hormuz. This has caused some manufacturers to reduce their production of vehicles bound for this region. He said that the Japan Automobile Manufacturers Association expected the impact to be limited to shipping. The association would monitor the situation, and the government had assured them of ample supplies other than naphtha or lubricants. Analysts said that the war could push automakers to change their supply chains in the long term as they try to reduce the risks associated with the conflict and closure of the Strait. Sanshiro fukao, executive fellow of the Itochu Research Institute (the think tank part of the trading house Itochu), said that supply and transportation disruptions due to the war would not be resolved in the near future. He said that as more companies consider Middle East risks, the flow of products could change. In India, a SHIFT to the West Fukao stated that the war could accelerate automakers' efforts to increase their presence in India within three to five year and to boost production and exports. They are looking to reduce risks and costs associated with shipping. Toyota announced this month that it will build a factory in India with a yearly?production capacity of 100,000 cars? The automaker announced that it would export cars produced at the plant to other countries. Production is scheduled to begin in the first half 2029. Analysts say the Middle East is particularly important to Japanese automakers, as it's a lucrative market that has a strong demand for high margin models such as?Toyota Land Cruiser sport utility vehicle. Julie Boote is an auto analyst with?Pelham Smithers Associates. She said that Toyota was the most exposed in terms of absolute sales because it is the best-selling automaker for the region. "However," says the Toyota spokesperson, "because it is well-?diversified regionally, and Middle East sales account for about 6%?of?its total?sales, it will be able to absorb this blow better than other companies." Automakers are likely to be able divert vehicles that were originally intended for the Middle East, but they will not be able offset the volume lost. Next week, Toyota, Nissan and others automakers will release their April sales and production data.
-
Investors weigh Iran talks and Nvidia earnings as they consider the stock market's rise
Investors pondered a few'signs of progress' in the Iran peace talks on Thursday, as they weighed up possible?signs?. Nvidia shares fell despite its earnings exceeding expectations. The STOXX 600 Index in Europe was up by 0.2% after falling earlier in the day. The S&P 500 futures and the Nasdaq tech-focused futures were little changed. After three days of losses, the S&P 500 gained 1.1% after oil prices dropped after U.S. president Donald Trump announced that Iran talks are in their final stages. However, he also said he may restart attacks. Overnight, the rally continued in Asia with MSCI's broadest Asia-Pacific index outside Japan rising 2.6%. Samsung shares rose 8.5% after the union of the electronics giant announced it would suspend its industrial action. This prevented a strike which threatened global chip supplies. Investors in America and Europe were left with mixed messages on Iran from Trump Thursday. On Wednesday, the U.S. President said he would wait for "the answers" from Tehran but was willing to continue strikes against Iran. Pakistan is stepping up its diplomatic efforts to keep the U.S. and Iran peace talks on track. Officials in Tehran are reviewing Washington's most recent responses. Francesco Pesole is a currency strategist with ING. He said that the level of conviction was lower this time. "Both sides continue to use belligerent rhetoric, and the markets are less willing to chase positive headlines following earlier disappointments." NVIDIA UNDERWHELMS IN HEAT AI MARKET Nvidia shares, the largest company in the world by market capitalisation fell 0.4% during pre-market trading, despite the fact that the firm exceeded Wall Street expectations. Nvidia announced a $80 billion share buyback program and forecasted second-quarter earnings of $91 billion on Wednesday. Dan Coatsworth is the head of markets for AJ Bell. The shares of the company fell in pre-market trade despite the fact that it had once again beaten consensus estimates for quarterly sales and earnings. This was due to concerns about the sustainability of the rapid growth. The massive increase in U.S. stock prices, up over 8% so far this year, has not been impacted by questions about the longevity of the AI rally. The index tracking the U.S. Dollar, which was a haven of safety for investors throughout the war, was flat, at 99.15. On Wednesday, it fell from its six-week peak of 99.47 in hopes of peace talks progressing. The euro remained flat at $1.16 on Thursday, barely above its six-week low. Meanwhile, 10-year ?U.S. Treasury yields, the benchmark for borrowing costs around the globe, rose 1 basis point to 4.58%. On Tuesday, they reached a 16-month peak of 4,687% as traders continued to abandon their previous bets about Federal Reserve rate reductions.
-
Danantara Indonesia will honor commodity export contracts but will review prices
Danantara, the Indonesian sovereign fund, will honor existing export contracts while reviewing them to ensure prices are not below market rates. This was said by its chief executive on Thursday. The fund is preparing to "take control" of the top commodity shipments in the country. The fund's unit will be the sole exporter for palm oil, ferroalloys, and coal as soon as September, announced President Prabowo on Wednesday. His government is seeking to tighten control over the tax revenue and foreign exchange earned from commodities. Danantara CEO Rosan Roeslani stated that the sovereign wealth fund may negotiate prices that are below benchmarks when it has visibility of pricing. "We will honor all existing contracts." We see that, even though these are long-term agreements, the price is determined when the contract runs. Rosan said that if "we see a price below the world index at a later date, we will review this contract," she told reporters. He said: "If there is any indication that a contract has been under-billed, we will certainly re-evaluate it." Exporters have a transition period of three months from June 1 that could be extended up to six. During this time, they must report to Danantara Sumber Daya Indonesia the value, volume and price points of their goods. Indonesia is the largest exporter in the world of thermal coal,?nickel and palm oil. Last year, its exports?of these three commodities totaled $65 billion. S&P MOODY'S WARNING OF RISKS Prabowo’s plan is designed to address concerns over under-invoicing, and how exporters are able to account for transfer prices. However, it has caused financial markets concern this week. The main Jakarta stock index dropped to its lowest point in over a year on Thursday. Meanwhile, the rupiah currency fell 0.4%, trading near a new record low. Rating agency S&P Global Ratings warned the plan could hurt Indonesia's exports and squeeze government revenues, as well as the balance of payment. In a press release, it stated that "These factors create greater 'downside uncertainty' to our ratings for Indonesia". It added that investments could be affected by the changes if they lowered confidence in business and investment sentiment. S&P remains the only major agency to have not yet announced its annual review of Indonesia. Moody's, Fitch and the other two agencies have all cut their credit ratings outlook from stable to negative this year. Moody's stated that while the export plans may support foreign exchange inflows they could also raise the risk of market distortions and weigh on investor sentiment. The industry wants to see details The authorities will brief businesses and business groups on the new export mechanism in the afternoon of Thursday. Implementing regulations are expected to be released by the Trade Ministry soon, said Budi Santoso. Eddy Martono is the chairman of GAPKI which represents palm oil companies. He said that his industry faces many questions. For example, what happens when buyers request certain specifications for a shipment. Exporters have their own markets. He said that poor management could lead to the loss of these markets. Gita Mahyarani, executive director of the Indonesian Coal Mining Association, said that they were concerned about long-term agreements, specifications for coal quality, finance and other obligations. The Indonesian Nickel Industry Forum said that it would wait for the regulations documents and additional explanations before making an impact assessment. (Reporting and writing by Bernadette Cristina and Fransiska Nanangoy; editing by John Mair).
-
Russia announces it will support Cuba, as the U.S. tightens its 'noose.'
Russia announced?on Thursday it would provide active support to Cuba, despite efforts by the United States to 'intimidate' and tighten "sanctions" around the Communist island nation. The United States announced a murder charge against former president Raul Castro, Wednesday. This is a major escalation of Washington's war against Cuba. Maria Zakharova, spokeswoman for the Russian Foreign Ministry, told reporters that "we will continue to provide the most active support to a fraternal Cuban population during this extremely challenging period." "We reaffirm that we are fully united with Cuba. We condemn any attempts to grossly interfere in the internal affairs a sovereign state, as well as intimidation and the use of illegal unilateral restrictions, threats and blackmail." Zakharova did not give any details about the'support' that Russia would offer, but said the United States showed their "intolerance toward any dissent or?a cynical embodiment of the revived Monroe Doctrine." Reporting by Dmitry Antonov; Writing by Felix Light, Editing by Vladimir Soldatkin/Guy Faulconbridge
-
China sent a small amount of fuel to Southeast Asia but the curbs are still in place
China exported small amounts of gasoline, diesel, and 'jet fuel to Southeast Asia, and other regions, in April. Fuel exports dropped to their lowest level in the past decade, due to Beijing's restrictions to protect against the disruptions in the energy market caused by the war in Iran. China is Asia's largest fuel exporter. Its restrictions have further restricted supplies, as regional refiners reduced output due to high prices and a lack of Middle East crude. Reports in late March stated that Beijing has granted a limited waiver to Bangladesh and other South Asian nations such as Myanmar, Vietnam, and Sri Lanka. The data, released by the Customs on Wednesday, showed that small quantities of refined fuel were exported to a number of these countries in April despite a drop in overall exports. Hong Kong and Macau were not affected by the export restrictions, as levels remained constant, nor was the refuelling of international planes and ships. China's gas exports fell to an all-time low of?23.409 metric tonnes in April. The only recipient outside Hong Kong or Macau, Myanmar, received only 3,000 metric tonne (25.350 barrels), a 65% drop from March. The export of diesel fell by 69% from March to 231,542 tonnes (1.725 millions barrels) in April. The Philippines was the largest recipient of diesel, with 39.468 tons, despite a volume drop of 82% since March. Bangladesh, at 10,000 tons (down?75%), was the second-largest recipient. Singapore was not a destination for diesel exports. Customs data revealed that Myanmar received 5,900 tonnes in April, which is a 73% reduction from March. Exports of biodiesel accounted for 34% in China's total diesel exports during April. The Netherlands and Belgium, two of the largest importers, saw a steady increase in exports. Biodiesel is primarily made from used cooking oils. It's unclear whether Beijing's export bans cover it. Jet fuel exports, excluding Hong Kong, fell by 54% to 489,000 tonnes. Chinese jet fuel exports include both aircraft refueling as well as cargo exports. Vietnam was the biggest recipient, with more than 68,000 tonnes. After Canberra's lobbying, Australia expects to receive more than 100 millions liters or 80,000 tonnes of jet fuel by early June. (1 ton=7.45 barrels for diesel) (1 ton=8.45 barrels for gasoline)
Latvia issues drone alert, scrambles NATO fighter jets
The Latvian armed forces announced on Thursday that at least one drone was flying in the country's airspace, and that NATO fighter jets had been activated to combat the threat. This is the latest of a number of security incidents in this region. In recent months, Ukraine has increased its long-ranged drone attacks against Russia, including through the Baltic Sea. Several Ukrainian military drones have also strayed into the airspace of NATO member countries Finland, Latvia and Lithuania. The Latvian Armed Forces posted on the social media platform, X, that "we confirm there is at least one unmanned aircraft" in Latvian airspace. The Latvian government resigned over the handling of these incursions last week, and there are currently talks on the appointment of a new cabinet.
In a press release, the armed forces advised residents of eastern Latvia, which borders Russia and Belarus to seek shelter inside until further notice.
A NATO fighter jet downed a suspected Ukrainian UAV over Estonia on Tuesday, and a similar violation of airspace in Lithuania forced the suspension of air traffic into its capital city.
All of the Baltic States, who are strong supporters of Ukraine, blamed Moscow for the incidents, claiming that it diverts Ukrainian drones away from their intended Russian targets, without providing any?evidence? to support the claims.
The Kremlin announced on Wednesday that it was "monitoring" the situation. The Kremlin has accused the Baltic States of allowing Ukraine to launch drones on their territory. This is a claim that they and NATO deny.
Poland's Defence Minister said on Thursday that Ukraine must be precise when using drones in order to prevent Russia from interfering with their flight path.
Ursula von der Leyen, the European Commission's chief, said on Wednesday that Russian threats against the Baltic states were "unacceptable", and would be viewed as threats to all of the European Union. (Reporting and editing by Terje Solsvik, Anna Ringstrom, Sharon Singleton, and Janis Laizans, in Riga)
(source: Reuters)