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Wall Street Journal – Aug 14,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. U.S. president Donald Trump and European leaders, including Ukrainian President Volodymyr Zelenskiy, agreed on red lines for the upcoming talks with Russian President Vladimir Putin. He said he hopes to follow quickly with a tripartite summit between the two warring leader. Tesla has taken the first steps to bring their robotaxis into New York City, just weeks after rival Waymo revealed its plans to test its autonomous vehicles in New York City. Walmart announced that, as of immediately, it would extend its employee discount of 10% to nearly all groceries purchased in its stores or online. This is the latest step to improve recruitment and retention. The U.S. Financial Accounting Standards Board has voted to establish the first ever requirements for how companies should account for environmental credits, such as renewable energy certificates and carbon offsets. However, it reduced the disclosures that were proposed by last year. President Donald Trump of the United States issued an executive directive that will speed up rocket launches and open more spaceports.
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Tinubu wants a 7% growth in Nigeria's economy by 2027
Bola Tinubu, the Nigerian president, set an annual growth target of 7% by 2027. He aims to lift millions of people out of poverty by then and to expand the economy four times larger than it is today by 2030. Tinubu, who took office in 2023 and has been president since then, has devalued twice the naira and ended petrol and electric subsidies to increase Nigeria's slow production over the past decade. These steps have triggered the most severe cost of living crisis in generations and are yet to produce faster growth. The rebasing of the gross domestic product boosted Nigeria's economy by 3.13% during the first quarter. The rebasing of the GDP increased the size to 372.822 trillion Naira ($243,55 billion) but growth was lower than expected. Tinubu, in his address to the federal cabinet said that the reforms have boosted macroeconomic stability and investor's confidence. However, he cited low public savings, as a barrier to growth. He added that public investment only accounts for 5% of the gross domestic product. Tinubu told his team that to maintain the momentum of the country, they must maximize every naira. They were instructed to examine the revenue retentions and deductions made from the federal account. This included fees charged by the Customs agency, the Tax Agency, and the National Oil Company Ltd. The Petroleum Industry Act (PIA), currently, allows NNPC 30% of certain revenues to be retained for the management of oil and gas operations. 30% of profits can also be deducted to fund exploration in frontier basins that are underexplored. The government has been criticized for these significant retentions, which are excessive and lack transparency. They have contributed to the drain on revenue and inefficiencies of Nigeria's fiscal performance. Tinubu set a 6% growth target when he took office two years earlier. The World Bank predicts that Nigeria's economy will grow by 3.6% in 2019 and 3.8% between 2027.
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Dollar suffers as stocks take a break and the Fed's rate cuts continue.
The U.S. Dollar was under pressure Thursday, as traders bet that the Federal Reserve would resume cutting interest rates in January. Bitcoin reached a new record high while global stock markets took a break from their blistering rally. MSCI's measure of Asia ex-Japan equities remained near its highest level since September 2021. It took cues from Wall Street where the S&P 500 index and Nasdaq closed at new highs for a second consecutive day. The MSCI All Country World Index reached a new record on Wednesday, and was nearly flat the following day. The futures markets suggested that European and U.S. stocks were set for a muted launch. Dollar falls to a 2-week low against a basket major counterparts as expectations for rate cuts in the United States shift. Comments from U.S. Treasury Sec. Scott Bessent have also sparked some bets on a 50-basis point reduction. Goldman Sachs predicts that the U.S. Federal Reserve will deliver three 25-basis point interest rate reductions this year, and two more by 2026. CME's FedWatch tool shows that traders are pricing in the near certainty of an interest rate cut for September. The odds of a 50-bps cut, which is more aggressive, have risen to 7% from 0% one week ago. Ben Bennett, APAC Investment Strategist at Legal and General Investment Management said that a rate cut is likely in September given recent revisions to the job market. He said that "but inflation data remain sticky and there is no sign of serious economic downturn. So the Fed will likely want to keep its options open for the remainder of the year." In the Asian hours, the Japanese yen was the biggest mover. It climbed to its highest level in three weeks at 146.38 to the dollar after Bessent stated in a press interview that the Bank of Japan would likely raise interest rates because it is behind in dealing with inflation risk. The yen has also strengthened against the euro, British pound and other currencies. BOJ Governor Kazuo Ueda said he was willing to continue raising rates, but defended his decision by stating that "underlying inflation," which is based on domestic demand and wage growth, still falls short of the BOJ target. BOJ policymakers are also hesitant to raise rates until they have a better understanding of the impact U.S. tariffs will have on Japan's economy and corporate profit. CRYPTO SURGE Analysts also point to recent financial reforms for a boost to the asset class. Bitcoin is up 32% in 2025. Ether, the second-largest cryptocurrency, has increased by 41%. It's just a little bit shy of its November 2021 high. Gold prices and crude oil prices rose a little bit on commodity markets after they hit a two-month high on Wednesday. Investors remained focused on the Friday summit between U.S. president Donald Trump and Russian President Vladimir Putin. Trump warned on Wednesday that "severe consequences would follow" if Putin refused to agree to peace in Ukraine. He also stated that the meeting could be quickly followed by another one, which would include Ukrainian president Volodymyr Zelenskiy. Trump has previously said that both sides would have to exchange land in order to stop the fighting, which has resulted in tens and thousands of deaths and millions of displaced people. Goldman Sachs analysts wrote that while a lack of progress on a ceasefire could lead to new threats of secondary oil sanctions/tariffs, they saw a limited risk of major disruptions of Russia's supply. Investors are also waiting for the U.S. producer prices inflation data, which will be released later that day. The retail sales report is expected to follow on Friday. DBS analysts believe that investors will apply the "bad-news-good-news" rule. They will treat soft U.S. economic data as an indicator of lower yields, weaker dollars and a stronger risk appetite, while viewing stronger data as evidence to counter the narrative of easing. Reporting by Jaspreet Banerjee and Ankur Kalra in Singapore, Editing by Muralikumar Anantharaman & Kim Coghill
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Thyssenkrupp reduces sales forecast and investment budget due to weak global trade
Thyssenkrupp, the German conglomerate, cut its outlook for sales and investments for the full year on Thursday. It blamed a weak demand for their products, as President Donald Trump’s import tariffs disrupted global trade in autos, machines, and building materials. With a diverse portfolio, including steelmaking and sub-marine production, the company now expects its sales to drop 5%-7% in its fiscal year up until September 30. It had previously predicted a drop of up to 3% in sales. The company stated that it now expects adjusted earnings before interest and taxes to be lower than the range of 0.6 billion to one billion euros ($0.7billion to $1.2billion) in its guidance. The group's third-quarter adjusted EBIT, which covers the period from April to the end of June, rose by 4%, to 155 millions euros. This was below the average analyst estimate, which was 174 million euros. Miguel Lopez, CEO of Thyssenkrupp, said: "The last quarter was marked by immense macroeconomic uncertainty." We are feeling the weakness of the market in industries that we serve, such as automotive, engineering and the construction industry. Reporting by Christoph Steitz, Editing by Richard Chang, Ludwig Burger
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Sources: Vietnam will buy its first US oil in 2025
Sources said that Binh Son Refining and Petrochemicals (BSR), a Vietnamese company, has purchased one million barrels U.S. West Texas intermediate crude for delivery in November, marking the first U.S. oil purchases by Vietnam since 2025. Sources claim that BSR purchased the light-sweet crude oil from Mercuria. Typically, it processes domestic crude. BSR's board of directors declined to comment when contacted by us. The company didn't immediately reply to our email. Vietnam, Indonesia, and Thailand are all committed to buying more U.S. crude oil as part of agreements negotiated with Washington in order to reduce the trade surpluses between them and avoid high U.S. tariffs. WTI is now more competitive for November cargoes in Asia, after the Middle East oil price increased. Kpler, a data analytics company, shows that Vietnam's last importation of U.S. Crude was December 2024. The Southeastern nation buys a lot of crude oil from Kuwait, Brunei, and Libya.
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Saudi crude oil prices are rising at a time when the market is trying to gain share, says Russell
OPEC+’s recent decision, to unwind 2.2m barrels of crude oil production cuts per day has been viewed largely as a sign that the exporter group is shifting from trying to boost prices to rebuilding their market share. Saudi Arabia's recent decision to increase its official selling price (OSP) for its main Asian clients for September-loading shipments seems at odds with its strategy to regain market share. Saudi Aramco is the state-controlled oil company of the Kingdom. It has raised the OSP for the flagship Arab Light blend in Asia by $3.20 per barrel over the average price for Oman/Dubai. Aramco announced a $1 increase per barrel for August's loading cargoes, and it was the second consecutive monthly increase by the world's largest crude exporter. The price increase was in line with expectations from refiners who were surveyed before the announcement. It reflects changes in the market prices for both margin yields and term structure on different refined products. The Saudi price increase, which also affects other Middle East producers like Kuwait and Iraq was neither unusual nor out of the ordinary. It also shows Aramco made little effort to increase the appeal of their crude oil to Asia-based refining companies, who buy around 80% of the Kingdom's exports. Importers find that Saudi crude oil and other producers' crudes that follow Aramco’s pricing are less appealing than grades of rival grades priced according to global benchmarks such as Brent or West Texas Intermediate. It is not surprising that refiners of price-sensitive countries like China and India would try to minimize imports from Saudi Arabia and maximize supply from other sources. The Saudi allocations for Chinese refiners are already reflecting this. According to a report on August 11, citing multiple trade sources, 1.43 million barrels per day (bpd) will be shipped in September. This is down from 1.65 millions bpd during August. China also increases imports of some products from producers outside the OPEC+ bloc. PIVOT FROM OPEC+ Kpler, commodity analysts, estimates China's imports of Brazil at 1.39m bpd for August. This is a record and up from 779k bpd during July. China's Angola arrivals are estimated to have been 823,000 barrels per day (bpd) in August. This is the highest since October 2023, and nearly double what they were in July (419, 000 bpd). Aramco has reported that refiners in India have received their full September cargo allocations, but they have not requested any additional crude. Indian refiners have yet to decide whether they can continue to buy Russian crude oil after U.S. president Donald Trump threatened to impose double tariffs on the imports of South Asian nations if it did not stop buying Russian oil. Kpler estimates that August arrivals are 2.02 million barrels per day, a significant increase from the 1.60 million barrels per day in July. The real impact will be felt in September. It is clear that Indian refiners will be turning to crude oil from the Americas in September. Kpler estimates imports of US crude at 465,000 barrels per day, up from 264,000 barrels per day in August, and the highest since January 2023. In September, India imported 106,000 barrels per day from Brazil, after taking no crude oil from the South American exporter during June, July, and August. When Middle East giants increase prices, it is clear that China and India are looking for lower-priced oil. It is likely that the Saudis, and those producers who follow their prices, are not currently focused on increasing their market share. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for. (Editing by Tom Hogue).
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Bitcoin joins the party at MORNING BID EUROPE
Ankur Banerjee gives us a look at what the future holds for European and global markets When cryptocurrencies are on fire, you know that markets are risky. Bitcoin has joined global stocks in scaling a new record high as the near certainty of U.S. rate cuts boosts risk sentiment. Bitcoin, the world's most popular cryptocurrency, has many things going for it. It is likely to see lower interest rates in the future, as well as a more favorable regulatory environment and strong institutional investor flows. Ether has also been on a charge. It is hovering at its highest level since November 2021 and has become the token of preference for those seeking more active returns. In fact, the ether price is up by 42%, which is more than triple that of bitcoin. After a week of explosive gains, Asian stocks took a break. Japanese shares dropped after reaching a record-high, while Taiwanese and South Korean stocks eased off after recent highs. Investors bet that the Federal Reserve is going to start cutting interest rates again from next month. Traders have started pricing in odds for a 50 basis point cut following comments by Treasury Secretary Scott Bessent. If we had seen these numbers in May or June, I think we would have been able to cut rates in June and/or July. Bessent told Bloomberg Television that this tells him that a rate cut of 50 basis points is likely to occur in September. Fed Chair Jerome Powell - who has been repeatedly slammed by U.S. president Donald Trump - is expected to give a speech at a central banking research conference in Wyoming, next week. The focus will be his tone regarding policy direction. Bessent said that the Bank of Japan is likely to raise interest rates, as it has fallen behind in addressing the inflation risk. This led to a strong rise in the yen which was at its highest level in 3 weeks. Investors will focus on economic data during European hours, which will provide a glimpse at the uncertainty surrounding tariffs and their impact on the economy. The following are key developments that may influence the markets on Thursday. Economic events: Euro zone flash Q2 GDP, UK prelim Q2 GDP
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Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard
The First Steel Cutting ceremony took place at Saipem’s Karimun fabrication yard, marking the official start of construction activities for the Tangguh UCC project, awarded by bp Indonesia.The event was attended by representatives of the client, local and national government bodies, together with key members of Saipem’s management team gathered to celebrate this significant milestone achievement.The Tangguh UCC project, located in Papua Barat province, Indonesia, is a national strategic project that includes the development of the Ubadari gas field, increasing gas acquisition through carbon capture, utilization, and storage (CCUS) technology, and onshore compression. It is expected to unlock around 3 trillion cubic feet of additional natural gas resources from the Ubadari offshore field.Saipem's activities include the engineering, procurement, construction and installation and commissioning of two wellhead platforms, a CO2 reinjection platform, and approximately 90 km of associated pipelines, cables and tie-in to existing brownfield facilities.The Karimun Yard, recognized as Saipem’s strategic fabrication centre in Southeast Asia, is Saipem’s largest one worldwide and one of the largest in the Southeast Asian region, with over 5,000 employees and approximately 1.4 million square meters area including the marine base and docks.
London's unloved shares are attracting foreign investors
The UK stock market is finally reversing its years-long underperformance compared to the rest of Europe. This comes as a result of a UK/U.S. A trade agreement, a softer regulatory environment and cheap stocks are delivering juicy returns which are beginning to attract foreign investors.
The FTSE 100 is up nearly 10% in the last year, and has reached record highs, surpassing the STOXX 600 which is up 7.5%.
London's blue chip index performed better on a year to date basis than its European counterpart in the last six week, the longest stretch of its kind since the end of 2022 when a weak pound boosted revenues for the export focused FTSE.
The financial regulator announced this week that it would roll out new regulations to boost Britain's Capital Markets. Meanwhile, Chancellor Rachel Reeves asked the financial industry for a more positive picture of UK shares to be painted to potential retail investors as she sought new ways to revive an economy in stagnation.
Asset managers claim that the UK narrative is changing, and the blue-chip index already looks appealing to foreign investors given the sterling's rally in this year.
Justin Onuekwusi is chief investment officer of St. James's Place. He said, "We see signs that big asset allocators are coming back to the UK." He said: "I'm talking about non UK endowments and pension funds as well as asset owners, wealth management firms, who all underweighted the UK after Brexit."
The FTSE-100 has risen nearly 18% in dollar terms so far this season, marking the highest dollar-denominated gains since 2009. This compares to a 6% gain year-to-date for the S&P 500 which also reached record highs.
The pound is up 7% against the dollar this year as investors flee U.S. assets due to increased policy uncertainty in the U.S. under President Donald Trump. This acts as a drag on FTSE members, 80% whose revenues come from abroad.
The index is insulated from the economy's swings by its large defensive companies like AstraZeneca, Tesco, and healthcare.
The company also holds growth-sensitive resources such as Anglo American, BP and other companies that can tap into the strength of oil, copper and Gold.
Britain is one of few countries that are less concerned about trade uncertainty because a U.S.-UK trade agreement has been signed. The European Union, on the other hand, faces 30% tariffs in the event of a failure to reach an agreement by August 1.
'TEA AND BISCUIT
The UK stock market can be a calming cup and biscuits in an uncertain time. "There's nothing fancy, just names that are reliable and do their jobs day after day," AJ Bell Investment Analyst Dan Coatsworth stated.
Since years, the valuations of FTSE-100 companies has lagged behind those in Europe.
Brexit in 2016 accelerated this trend. Fewer companies listed their shares on the London Stock Exchange and few were used as M&A targets.
The UK market has caught up. The FTSE-100 12-month forward P/E ratio is at 12.5, the highest in five years. This compares to 14.11 for STOXX. It's the smallest gap for 18 months.
S&P is trading at a premium of nearly 10 points to the FTSE compared to just 2 points a decade ago.
The relative poor performance in the UK, compared to the U.S., over the last two years is beginning to reverse. Michael Stiasny said that we're at the beginning of this. He added that the UK equity market had traded at "significant discounts".
The pound has reached a high of four years against the dollar but is weaker against the euro. This year's weakness against the euro offers a boost to FTSE exporters.
Official data shows that the EU will be Britain's biggest trading partner in 2024. The United States will follow with 22%.
Not everything is rosy. The British economy has slowed down, business activity is slowing and employment is declining. Inflation is above the Bank of England target of 2%.
Barclays data indicates that UK equity has seen a net outflow in 2025 of $20 billion, though outflows are almost non-existent in the past month. This compares to Europe's $13 billion year-to date inflow and its rapidly slowing inflows.
Sebastian Raedler is the head of European Equity Strategy at Bank of America Merrill Lynch. He believes that the FTSE has been performing well because of the currency, and it's in line with Europe.
He said that a 2% increase in the FTSE by 2025 compared to the STOXX would be a minor improvement.
(source: Reuters)