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JFE Holdings' first-quarter profits down 74% and misses expectations
JFE Holdings posted a net profit of 7.1 billion yen (48 million dollars) on Monday, down 74% compared to a year ago and below analysts' expectations. Analysts surveyed by LSEG had predicted that JFE Holdings would report a quarterly net profit of 16.1 billion yen. In the same period last year, the company made 27.5 billion yen. It reported that its crude steel production during the period was 5,28 million metric tonnes, down from 5,48 million tons one year earlier. The company also suffered from lower export profits and foreign exchange fluctuations. JFE Holdings has maintained its profit forecast of 75 billion yen for the fiscal year ending in March next year. JFE announced in a separate press release on Monday that it would invest 120 billion yen with India's JSW Steel to increase production at two plants located in India. The investment will boost output of cold-rolled grain-oriented electric steel, a product that is used in motors, transformers and generators. The first plant is expected to reach full production by 2027. The other currently has a capacity of 50,000 tonnes per year. JFE stated that the expansion will help meet the rising demand for power infrastructure in India as well as the growing use of renewable energy and the increase in data centres. Reporting by Katya Glubkova, Editing by Kim Coghill & Joe Bavier
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JSW Steel India and JFE Japan to invest $669 Million to boost electrical steel production
JSW Steel announced on Monday that a joint venture between India's JSW Steel, and Japan's JFE Steel, will invest 669 million dollars to increase production capacity for cold-rolled grain-oriented electric steel at two Indian plants in order to meet the growing domestic demand. JSW Steel announced that JSW and JFE would fund the expansion in equal amounts through equity. The additional capacity will be added in phases starting with the fiscal year 2028. The source of the remaining funds was not specified by the company. Cold-rolled grain-oriented steel is used primarily in energy applications and is considered more energy efficient. It also reduces carbon emissions. JSW JFE Electrical Steel plans to increase production at its Nashik facility to 250,000 tonnes per annum, up from 50,000 TPA. The two companies will invest 43 billion rupees to achieve this. JSW Steel announced in a filing on the exchange that it will invest the remaining 15,45 billion rupees in order to increase capacity at a new facility in Vijayanagar from 62,000 TPA to 100,000 TPA. JSW JFE bought Germany's Thyssenkrupp's Nashik facility in January for 41,59 billion rupees.
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Beijing is on high alert as deadly floods continue to plague the city
Beijing warned its residents to prepare for more heavy rains in the mountains of the city, one week after the deadly floods that killed dozens. Weather forecasters have warned that parts of Beijing could receive up to 200mm (7.9 in) of rain over a period of six hours starting at midday. Weather forecasters warn that Beijing, a city with 22 million residents, receives an average of 600mm of rain each year. Authorities are rushing to update evacuation plans, improve weather forecasts, and reinforce aging flood defences. They have also reported that bodies were pulled from floodwaters across the country. At least three of them were found at a flooded health camp in Hebei Province. At least 44 people were killed in Beijing last month after heavy rains. The majority of those who died were trapped by quickly rising water at a nursing facility in Miyun District on the northeastern outskirts of Beijing. Authorities admitted that their emergency plans were inadequate in the wake of these deaths. Beijing's seven districts with the highest preparedness level for flood prevention were Mentougou (Fangshan), Fengtai (Shijingshan), Huairou (Miyun), and Yanqing on Monday. Authorities have warned that the risk of landslides and flash floods is "extremely large". Beijing's worst flooding since living memory killed 79 people in the summer of 2012. Fangshan was the hardest-hit district, with residents reporting that floodwaters rose by 1.3 metres within 10 minutes. Beijing's topography is described as a "rain trap" by some, with the mountains in the west and north capturing humid air and amplifying rainfall. WELLNESS RETREAT China's official news agency Xinhua said that as of Saturday, torrential downpours had swept through the "Beijing Valley", a riverside retreat in Chengde, a city adjacent to Beijing located in Hebei province. Three people were confirmed dead, and four others are still unaccounted for. Caixin Media reported that around 40 people had gathered for an event on the 27th of July. Organisers directed them to tents set up on low-lying ground next to a river's bend. The floodwaters were knee-high by 2 am the following morning. Campers had to rush to the only exit. The site was similar to Camp Mystic, Texas, where last month at least 28 children drowned after Guadalupe River broke its banks during torrential rainfall. Five bodies were found in China's southern Guangdong Province over the weekend after a massive search operation that involved more than 1,300 rescuers. Xinhua said on Sunday that the five people who were reported missing on Friday evening had been "swept away" by recent heavy rains. (Reporting and editing by Stephen Coates; Joe Cash and Ryan Woo).
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India's IOC purchases 7 million barrels of US and Middle East crude following the Russian oil pause
Indian Oil Corp. (IOC), India's largest refiner, bought 7 million barrels from United States, Canada, and Middle East crudes arriving in September via an auction, according to several sources. IOC's large purchase of spot crude comes after the arbitrage windows for U.S. oil to Asia opened, and Indian state refiners stopped buying Russian crude oil at a time when discounts were shrinking. Donald Trump, the U.S. president, has warned that countries should not purchase oil from Moscow because it is currently under sanctions for its full-scale invasion in Ukraine on February 20, 2022. The sources stated that IOC purchased 4.5 million barrels from the United States, 500,000 barrels from Canada's Western Canadian Select, and 2 million barrels Das oil produced in Abu Dhabi. The sources declined to name themselves because they weren't authorized to speak with the media. Two sources stated that the higher than normal purchases were partly made to replace Russian barrels. India, which is the third largest oil importer in the world, is the top buyer of Russian crude shipped by sea. Last week, it was reported that Indian refiners IOC, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd had not purchased Russian crude for the last few weeks. The sources stated that in the IOC tender, which closed on Friday evening, P66, Equinor and Mercuria would each ship one million barrels U.S. West Texas Intermediate Midland Crude, while Mercuria would ship two million barrels. Vitol is to deliver 1,000,000 barrels each of WTI Midland, WCS and WCS. Trafigura is delivering 2 million barrels Das. The prices of the deals are not available immediately. The purchase also coincided with additional sanctions imposed by the European Union against the Russian energy industry. Reporting by Florence Tan in Singapore, Siyi LIu in New Delhi and Nidhh Verma in New Delhi. Editing by Kate Mayberry.
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FT reports that BP will update its progress on cost cutting as Elliot puts more pressure on the company.
The Financial Times reported that BP would announce an update on its $5 billion cost cutting initiative on Tuesday amid increasing pressure from activist investors Elliott Management to take more action to reduce operating expenses. Elliott wants BP's CEO Murray Auchincloss, who announced in February that he would reduce costs by $4-$5 billion between 2023 and 2027 from a baseline of 2023, to add an additional $5 billion to those savings. Could not verify the report immediately. BP and Elliott didn't immediately respond to a comment request. Report added that the hedge fund "identified tens and thousands of BP staff worldwide" as an example for the cost base. The FT reported that BP had already reduced its costs by $750 million towards its 2024 target and was looking to achieve its cost saving target through job reductions, divestment, and streamlining its supply chains. reported In April, the activist investor said that he would like BP's spending to be cut to $12 billion a yearly, from a range of $13 to $15 billion currently, until 2027. He also wants to deepen cost reductions, particularly on administrative costs. Elliott, which owns a little over 5% of BP, is also The oil major will replace its chief strategy officer and create separate units to oversee upstream and downstream activities in order to improve accountability.
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Buy the dip and worry about jobs later.
Wayne Cole gives us a look at what the future holds for European and global markets. The dollar and U.S. stock futures are both rising, so it's a good time to buy the dip. The Nikkei slipped as a result of the Wall Street crash on Friday and the rise in the yen. However, the rest Asia did better. Fed fund futures were priced at 65 basis points of rate cuts in December. However, that has now dropped to 60 basis points. This is a far cry from the 33 basis points seen prior to Friday's disappointing U.S. employment report. September still has an 83% chance of an easing. The market lowered the Fed's rate by 25 basis points on Friday, since borrowing costs are based on yields and not the funds rate in the States. The yield on ten-year bonds also dropped by a large 14 basis points, but they met resistance at around 4.20%. This is a level that has been difficult to breach since October of last year. In the long term, the downward revisions of payrolls have seriously questioned the U.S. claim for economic superiority and the crown of exceptionalism that the dollar holds. This was further tarnished when President Trump fired the director of the Bureau of Labor Statistics. The institution had a sterling reputation of scrupulous integrity that earned the trust of international investors. Or at least it used to. Trump has said he will choose a new BLS head in the coming days. Will the new BLS head be an independent statistician who is committed to providing reliable data or a Trump ally eager to please his master? U.S. assets currently enjoy a premium for trusts that will become increasingly difficult to maintain when Trump bends the government to his will. Trump has also floated the idea that he will use some of the windfall resulting from tariffs in order to pay 'dividends' to lucky Americans - with special checks bearing the "TRUMP" symbol, no doubt. You tax everyone who buys imported goods, regardless of whether they choose to do so, and use a portion of the money you earn to give to people you like, rather than to the government. A U.S. appellate court heard arguments late last week on the legality Trump's "reciprocal levies" and seemed inclined to support the initial ruling that the tariffs are illegal. A ruling of this nature would still likely be appealed to the Supreme Court. The Supreme Court has been known to favor unbridled presidential powers. If the tariffs are found to be illegal, all trade agreements and ongoing deals will be nullified, as well as the Treasury's money. What a great idea! Market developments on Monday that may have a significant impact Swiss CPI for July Want to stay up-to-date with the latest tariffs? Our daily news digest provides a quick overview of the most important headlines that impact global trade. Tariff Watch is available here.
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Loni Andersen, who was smart and played against stereotypes on "WKRP in Cincinnati" is dead at the age of 79
According to her publicist, actress Loni Anderson died at the age of 79. She was best known for her role in "WKRP In Cincinnati" as a glamorous, intelligent radio station receptionist who defied workplace sexual stereotypes. Anderson's family confirmed that she died in a Los Angeles Hospital "following a prolonged acute illness". She was also known for her highly publicized marriage to actor Burt Reynolds and their tabloid divorce six years after. The family released a statement saying that they were "heartbroken" to announce the death of their dear wife, grandmother and mother. They added that she died surrounded by her loved ones. Anderson, originally from St. Paul in Minnesota and a natural brunette, competed in beauty pageants in her hometown and began her career in showbiz in community theatre. She dyed her blonde hair after moving to Los Angeles, in the 1970s. Then came a flurry television appearances, including "The Bob Newhart Show", "Police Story", "The Incredible Hulk", and "The Love Boat". Suzanne Somers won the role of Chrissie, one of two female leads in "Three's Company." Anderson got her big break when she was cast as Jennifer Marlowe in "WKRP In Cincinnati". She convinced the producers of the show to allow her to play the role against the stereotype that a blonde with bubbles would be a good fit. Her character was instead written as a deceptively clever receptionist, who refused to fetch coffee or take dictation, but turned out to be smartest person in room. She kept the fictional Ohio radio stations afloat, despite the weaknesses of male bosses. The show aired on CBS for four seasons (1978-1982) and Anderson received two nominations for prime-time Emmys. She played two real life, ill fated sex-sirens from earlier Hollywood eras - "The Jayne Mansfield Story", in which Arnold Schwarzenegger starred as her bodybuilder spouse during the 1950s and "The Mysterious murder of Thelma Todd", set in 1930s. Anderson's four-decade career was chronicled in "My Life in High Heels," her best-selling memoir. Reynolds and She met for the first time in 1981, as guests of a TV talk show. They began dating one year later, and in 1983 they co-starred in "Stroker Ace," a romantic comedy about race cars. In 1988 they married, she for a third time and he for a second. Anderson is survived her adopted son Quinton Anderson Reynolds and her fourth spouse, Bob Flick. Bob Flick was a member in the Brothers Four, a folk singing group from the 1950s and 1960s. Reporting by Steve Gorman, Los Angeles. Editing by Clarence Fernandez.
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Gold falls victim to profit-taking following the US jobs data-fueled rally
Gold prices fell on Monday, as investors took profits following a steep rise the previous session. This was due to weaker than expected U.S. employment data which boosted expectations of a Federal Reserve rate cut in September. As of 0229 GMT, spot gold was down 0.3% at $3,354.17 an ounce. Bullion rose by more than 2% Friday. U.S. Gold Futures rose 0.2% to $3.407,10. Gold has had a cautious start to the new week after Friday's sharp price increase. Gold has eased slightly to start the week due to a combination of profit-taking and dollar stabilisation, said Tim Waterer, KCM Trade's Chief Market Analyst. Asian markets followed Wall Street's decline as fears about the U.S. economic situation returned with a vengeance. This led investors to price-in an almost certain cut in rates in September, and undermined the dollar. The Bureau of Labor Statistics of the Labor Department reported that U.S. employment growth in July was slower than expected. Nonfarm payrolls increased by 73,000 last month after increasing by 14,000 jobs in June. The markets are now pricing an 81% probability of a Fed rate reduction in September. This is according to CME FedWatch. In comments broadcast on Sunday, Trade Representative Jamieson Greer stated that the tariffs imposed by President Donald Trump on scores of nations last week are more likely to remain in place than to be reduced as part of ongoing negotiations. Waterer said that any decline in gold prices could be of a superficial nature, given Trump's tariff warpath and the weak U.S. employment report, which increases the likelihood of a rate cut by the FOMC on September. In an environment of low interest rates, gold, which is traditionally considered to be a safe haven during times of political and economic uncertainty, tends thrive. Silver spot fell 0.6%, to $36.80 an ounce. Platinum dropped 0.6%, to $1307.02, and palladium fell 0.9%, to $1197.76. (Reporting and editing by Anushree mukherjee in Bengaluru and Brijesh patel; Sumana Nandy, Mrigank Dhaniwala).
Beijing residents warned to stay indoors during heavy rain
Beijing warned residents to stay indoors if it rains heavily on Monday, following the recent floods that killed dozens in the Chinese capital.
Weather forecasters have warned that parts of Beijing could receive up to 200mm (7.9 in) of rain over a period of six hours starting at midday. Weather forecasters warn that Beijing, a city with 22 million residents, receives an average of 600mm of rain each year.
At least 44 people were killed in Beijing last month after heavy rains. The majority of those who died were trapped by quickly rising water at a nursing facility in Miyun District on the northeastern outskirts of Beijing. Authorities admitted that their emergency plans were inadequate in the wake of these deaths.
Beijing's six districts, located in the mountains to the north and west of the city, were on high alert Monday for heavy rain. These include Mentougou and Fangshan.
Local authorities have warned that the risk of flash flooding and landslides are "extremely" high.
Beijing's worst flooding since living memory killed 79 people in the summer of 2012. Fangshan was the hardest-hit district, with residents reporting that floodwaters rose by 1.3 metres within 10 minutes.
Beijing's topography is described as a "rain trap" by some, with the mountains in the west and north capturing humid air and amplifying rainfall.
Five bodies were found in southern Guangdong Province over the weekend after a massive search involving 1,300 rescuers.
According to Xinhua, Sunday, five people who were reported missing on Friday evening had been "swept away" by recent heavy rains. (Reporting and editing by Stephen Coates; Ryan Woo)
(source: Reuters)