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Galp Secures Three Exploration Blocks in Brazil
Portugal's Galp has been awarded three offshore blocks as part of Brazil’s fifth Open Permanent Concession bid round.Galp acquired offshore early-stage exploration blocks P-M-1670/1672/1741 in the Pelotas basin, in the southern region of the country.The awarded consortium is composed by Petrobras, as operator with 70%, and Galp with a 30% interest.The gross aggregate signature bonus for the blocks amounts to approximately $2.08 million.The fifth cycle of the Permanent Concession Offer hosted today by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP).
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EEW SPC Delivers Last Three Monopiles for Sofia Offshore Wind Farm
EEW Special Pipe Constructions (EEW SPC) has loaded out the last three monopiles for RWE’s 1.4 GW Sofia offshore wind farm, being built off the U.K.’s North East coast.The total of 100 monopiles, with weights of 1,143 to 1,521 tons and lengths of up to 91.8 meters, were loaded onto a barge without incident using the RoRo (roll on/roll off) method with EEW's own SPMTs.In the meantime, 90 foundations have been transported to the installation site in the North Sea and installed by the transport and installation company Van Oord using the ship Aeolus.The Sofia wind farm will go into operation in 2026 and will then produce green electricity for around 1.2 million British households.Currently under construction on Dogger Bank, 195 kilometers from the nearest point on the U.K.’s north east coast, it will comprise 100 Siemens Gamesa 14 MW offshore wind turbines.First Turbine Stands Tall at RWE’s Sofia Offshore Wind FarmSofia Offshore Wind Farm Buzzing with Construction Activity
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Dalian iron ore continues to decline as China property slump weighs
The price of iron ore futures eased on Thursday for a sixth consecutive session, as the protracted property crisis in China continued to weigh down on demand prospects. As of 0300 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.36% lower. It was priced at 692.5 Yuan ($96.32), per metric ton. The benchmark July ore traded on the Singapore Exchange at $92.35 per ton. Hexun Futures, a broker, stated in a report that the Chinese downstream demand has entered its off-season and inventories are continuing to build. Steelhome data shows that the total iron ore stocks across Chinese ports increased by 1.06% in a week to 133.4 millions tons as of June 13. Hexun added that the market has become cautious and real estate sales have slowed. Official data released on Monday showed that China's new house prices dropped in May, continuing a stagnation of two years. Goldman Sachs projected late Monday that demand for new homes will remain below the 2017 market peak in the coming years. This suggests that China, the second largest economy in the world, is in for a prolonged property slump. The dollar index (which measures the currency in relation to six other units) was at 98.957, and it is expected to gain 0.8% for the week. This will be its best weekly performance since the end of February. Dollar-denominated investments are less affordable for holders of currencies other than the greenback. Coking coal and coke, which are both steelmaking ingredients, fell by 1.07% and 0.69 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The benchmarks for steel on the Shanghai Futures Exchange were mixed.
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As Middle East tensions increase demand, gold prices are on the rise
Gold prices rose on Thursday as the Middle East tensions boosted demand for safe-haven assets. However, the cautious U.S. Federal Reserve stance regarding future rate reductions kept gains in check. As of 0215 GMT, spot gold rose 0.2% to $3,376.48 per ounce. U.S. Gold Futures fell 0.4% to $3393.70. Gold has seen a modest rise as we wait for the next step in the Israel-Iran dispute. "If the U.S. decides to directly get involved in the conflict, this could increase the geopolitical risks," KCM Trade's Chief Market Analyst Tim Waterer stated. As geopolitical tensions increased, U.S. president Donald Trump refused to confirm whether the U.S. will join Israel in its bombardment of Iranian missile and nuclear sites on Wednesday. Residents of Tehran were forced to flee the city as air strikes continued. Two U.S. government officials said on Wednesday that the U.S. military had moved aircraft and ships out of bases in the Middle East which could be vulnerable to an Iranian attack. Gold is used to store value in times of geopolitical or financial uncertainty. The Fed kept interest rates unchanged on Wednesday. Fed policymakers are still expecting to cut rates by a half-percentage-point this year but have slowed down the pace. Jerome Powell, Fed chair, warned against placing too much emphasis on this forecast, warning that "meaningful" inflation is coming as import tariffs increase. "The Fed wasn't as dovish and hawkish as many had hoped. I would argue Powell was just a little more hawkish than most people wanted. Matt Simpson, senior analyst at City Index, said that the U.S. Dollar is likely oversold and this will likely cap gold gains over the next couple of weeks. Platinum rose 1.5% to 1,342.36, and palladium increased 0.6% to 1,055.18.
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Copper prices remain flat as traders evaluate geopolitical risk and supply constraints
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw a largely flat price for copper on Thursday as the market focused mainly on the developments in the Israel/Iran conflict, while a tight supply supported the price. The LME’s three-month contract for copper was almost flat at $9,657.50 a metric ton as of 0107 GMT. SHFE’s most traded copper contract also showed little change, with a decline of 30 yuan, to 78 590 yuan (about $10,930.31) per ton. Investors closely followed tensions in the Middle East as U.S. president Donald Trump kept the rest of the world guessing as to whether Washington would join Israel’s bombardment against Iranian nuclear sites. The conflict entered its seventh-day. ANZ stated that in the long term, "any sustained increase in energy prices will likely end up weighing on the copper markets due to the higher costs to producers," Copper supplies are limited, and stocks are low In LME-registered storage warehouses, 107,350 tonnes has dropped 60% since March and is at its lowest level since May 2024. The U.S. Central Bank held interest rates at the same level on Wednesday, signaling that borrowing costs will likely continue to decline in 2025 (nL6N3SL0HH), while the U.S. Dollar Index traded higher against the majority of major currencies. Metals prices tend to rise when the dollar increases, limiting gains in price. LME aluminium remained flat at $2.546, tin rose by 0.3% to $22,465, while zinc gained 0.1%, reaching $2,640. Lead increased 0.1%, to $1.995.5. Nickel increased 0.1%, to $15,065. SHFE nickel rose by 0.6% to 119.030 yuan per ton. Tin increased 0.3% to 264,240 yuan. Aluminium advanced 0.2% at 20,680, lead advanced 0.2% at 16,870, and zinc fell 0.1% to 21980 yuan. Click or to see the latest news in metals, and other related stories. (GMT 1100 UK BOE June Bank Rate)
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Nippon Steel CEO downplays risk of management freedom under US golden share
Nippon Steel's CEO stated on Thursday that the U.S. Government's ownership in a golden stake in U.S. Steel would not prevent it from taking management actions as it sees fit. Eiji Hashimoto spoke at a Tokyo press conference a day after Japan’s top steelmaker completed its $14.9 billion purchase of U.S. Steel. The companies confirmed they agreed to grant the U.S. Government unusual powers, which helped to end Nippon Steel’s 18-month struggle for a deal. The agreement on national security signed with the Trump Administration gives the government an economic golden share, and the president has the power to name board members. Hashimoto replied, "It will not prevent us from doing whatever we want," when asked about the impact of golden shares on management freedom. He said that Nippon Steel had proposed the golden share. After a long and rocky road to approval, spurred on by high-level opposition from politicians, the final deal reached with the U.S. Government represents an unusually high level of control that the companies conceded to save the deal. The golden share grants the U.S. Government a veto on any future acquisitions, relocation of U.S. Steel from Pittsburgh, a change in name, or a possible transfer of jobs abroad. Nippon Steel is also required to invest approximately $11 billion by 2028 in the U.S. as part of the agreement signed with the Administration. Hashimoto stated that he did not see any problem with this requirement, as the company intends to expand its investments beyond current plans. He said that the Trump administration's shift in policy towards higher tariffs increased the strategic value of the U.S. Steel purchase. (Reporting and writing by Yuka Obayashi, Editing by Sonali Paul; Written by Chang-Ran kim)
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As the Middle East conflict escalates, Asian stocks fall and gold increases with yen.
The stock markets in Asia dipped on Thursday, while safe havens like gold and the Japanese currency gained. Investors remained on edge as they awaited the United States' possible involvement in the Israel-Iran war. Donald Trump, who spoke to reporters in front of the White House Thursday, said, "I might do it." I may or may not do it." The Wall Street Journal reported that Trump told his senior aides that he had approved plans for an attack on Iran, but was waiting to give the final order until Tehran abandoned its nuclear program. The Nikkei fell 0.8% in Japan, and the yen's strength, which lowers overseas revenue for Japan's major exporters, added to the downward pressure. Taiwan's benchmark stock index fell 0.9% and Hong Kong's Hang Seng dropped 0.8%. U.S. S&P500 futures were 0.4% lower on Thursday, despite the fact that most U.S. market are closed for a holiday. Gold rose 0.3% to $3.378 an ounce. Kyle Rodda is a senior financial market analyst at Capital.com. He said, "Market participants are still edgy. He said: "Speculations remain rife -- probably strategically fed by the Trump Administration -- that the U.S. would intervene. This would be a material escalation, and could invite direct retaliation by Iran against the U.S. This scenario could lead to a regional conflict that would have implications for the global energy supply, and possibly economic growth. Brent crude slipped to $76.32 a barrel but was still not far off the peak reached Friday, which was $78.50. The yen rose 0.2%, to 144.92 dollars, and the U.S. dollar itself gained 0.1%, to $1.1472 euros, and 0.2%, to $1.3398 against sterling. The Swiss Franc fell 0.1%, to 0.8193 dollars. Both the Bank of England (BOE) and the Swiss National Bank (SNB) will announce their policy decisions in the afternoon. The BOE is expected to maintain interest rates at current levels, while the SNB may cut rates by up to 25 basis points. The Federal Reserve sent mixed messages to the markets overnight. As expected, policymakers kept rates at the same level and maintained projections of two quarter-point cuts in interest rates this year. Jerome Powell, the Fed chair, was cautious about future easing, and said at a press conference that he expected "meaningful" inflation as a result Trump's aggressive tariffs.
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Oil prices fall as investors consider the possibility of US intervention in Iran/Israel conflict
Oil prices fell on Thursday, as investors were hesitant to make new investments after U.S. president Donald Trump's mixed signals about the country's possible involvement in the ongoing Israel/Iran conflict. Brent crude futures dropped 37 cents or 0.48% to $76.33 per barrel at 0110 GMT, after rising 0.3% during the previous session, which was marked by high price volatility. Prices fell as much as 2.7%. U.S. West Texas Intermediate Crude for July dropped 28 cents or 0.37%, to $74.86 per barrel. It had risen 0.4% the previous month despite a drop of up to 2.4%. The August contract, which is more active, was down 21 cents or 0.29% to $73.29 per barrel. Tony Sycamore said that traders are still waiting to see if the next step in the Israel-Iran conflict will be a U.S. military strike or peace negotiations. Sycamore stated that the former could cause prices to increase by $5, while peace talks may lead to a decline of about the same magnitude. Trump told reporters on Wednesday that he could decide to have the U.S. join Israel's missile attacks against Iran. On Thursday, the conflict entered its seventh day. Analysts say that direct U.S. involvement in the conflict would escalate the conflict and increase the risk of an attack on the energy infrastructure. Iran is OPEC’s third largest producer. It extracts about 3.3 millions barrels of crude oil per day. The Strait of Hormuz is a vital waterway that transports 19 million barrels of oil per day (bpd) and its products. There are widespread concerns about the impact of the fighting on trade. The U.S. Federal Reserve held interest rates at the same level on Wednesday, but penciled in two rate reductions by the end the year. Jerome Powell, the chair of the Federal Reserve, cautioned that rate cuts will be "data dependent" and said more consumer inflation was expected as a result of President Trump's import tariffs. Lower interest rates could stimulate the economy and increase demand for oil. However, this could also lead to an increase in inflation. (Reporting and editing by Christian Schmollinger; Colleen howe)
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 IPOs. 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, whereas only half of European companies listed in the U.S. saw their stock rise on their debut. 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 more of a competition between Europe and U.S. markets in terms of listing, than 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.
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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 has a capitalisation of almost $49.5 trillion. This is four times more than Europe's Stoxx 600.
Officials in Europe are also considering new listing regulations to improve the access to finance.
The London Stock Exchange, which in March circulated a document titled "Mythbusting", questioned the perception that U.S. listed companies are valued higher than those in London.
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 have seen a 24% increase.
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 an average decline 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 may 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 a fraction of this number, underlining the continued relative strength" of the U.S. Market. Charlie Conchie reported. ($1 = 0.8950 euros). Emma-Victoria Farr, Tom Sims and Anousha Sakoui contributed to the report; Emelia Sithole Matarise edited it.
(source: Reuters)