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Oil gains continue ahead of Trump-Putin Summit
The price of oil rose on Friday, reaching a new one-week peak after U.S. president Donald Trump warned that there would be "consequences", if Russia refused to sign a peace agreement with Ukraine. This sparked concerns over supply. The positive economic data from Japan, one of the world's largest crude importers, also helped to boost sentiment. Brent crude futures rose 16 cents or 0.2% to $67.00 per barrel at (0017 GMT). U.S. West Texas Intermediate Crude Futures rose 14 cents to $64.10, or 0.2%. The focus is on the meeting between Donald Trump and Russian President Vladimir Putin, which will take place in Alaska this Friday. A ceasefire in Ukraine's war is the main agenda. The oil market benefits from a continuing conflict between Russia, Ukraine and other countries. Trump also stated that he believed Russia was prepared to end its war in Ukraine. New Japanese government data released Friday revealed that the economy grew by an annualised 1.0% during the April-June period, compared to a median market expectation of a 0.4% rise. A rise in the gross domestic product (GDP), compared to a median estimate, translated into an increase of 0.3% quarterly. Oil consumption is typically boosted by strong economic activity. Oil prices were held back by the prospect of longer-term higher U.S. rates. The Federal Reserve's high interest rate policy is usually associated with a reduction in oil consumption. However, the data showed that inflation was higher than expected and the U.S. jobs figures were weaker than expected. (Reporting and editing by Muralikumar Aantharaman; Laila Kearney)
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Rusal, the Russian aluminium giant, swings into a first-half loss due to expenses surging
Rusal announced a net loss for the first half of its financial year on Friday as higher costs, increased interest expenses, and fluctuations in foreign exchange rates weighed down on Rusal's earnings. The Hong Kong listed company, which is the largest aluminum manufacturer outside China, suffered a net loss for the six months ended June 30 from a profit last year of $565 millions. Rusal is under constant pressure from Western sanctions against Russia for the conflict in Ukraine. This has been going on for over three years. Although the company was not sanctioned directly, some Western buyers have avoided new contracts for Russian Metal. Finance expenses increased by $408 millions, mainly due to higher interest rates on company and bank loans, bonds, and other charges. A foreign exchange loss of $181 million also contributed to the hit. The cost of sales increased by about 40%, to $6.11billion, due to higher prices for alumina, raw materials, and electricity, and an increase in primary aluminium volumes. Rusal's revenues rose by 32%, to $7.52 Billion, due to increased sales of primary aluminum and alloys.
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Shares of Kenvue purchased by activist investor Sachem head
In the second quarter of 2010, another activist investor, Sachem Head Capital Management, reported that it had bought the stock. In a filing with the Securities and Exchange Commission on Thursday, Scott Ferguson, who runs Sachem, stated that on June 30, it held 10.6 million shares of the consumer healthcare company. Kenvue ranked fourth in the company's holdings at the end the quarter, after Twilio and Seagate Technology Holdings. Sachem Head declined comment. The company is known for quietly pushing for changes at companies behind the scenes, but it did mount a loud proxy fight three years ago at US Foods Holding. Kenvue was spun off from Johnson & Johnson, and has a current market value of 40 billion dollars. It has been battling some of the most prominent industry activists in its first two years of being publicly traded, including Starboard Value and Toms Capital Investment Management. Kenvue’s board of directors fired Thibaut Mongon in July, setting the stage for the eventual sale, which investors hope and anticipate. Investors have complained for years about Kenvue’s share price. It has dropped 1% in the past year and closed at $21.06 last Thursday. Starboard was one of the first companies to publicly ask Kenvue for a review of how its brands are priced and positioned to boost performance. In March, the hedge fund settled their proxy battle with the company when Kenvue agreed that Starboard CEO Jeffrey Smith would be one of three new directors appointed by Kenvue. Starboard announced in a Thursday filing that it had reduced its investment in Kenvue by 5,10% to 21 million common shares. Toms Capital Investment Management has been urging the company to explore strategic options. It increased its holdings to 16 million from 14,4 million at the end the first quarter. Third Point, led by billionaire Daniel Loeb as an investor, purchased Kenvue in the first quarter. However, it did not make any changes to its holdings during the second quarter. As of June 30, Third Point owned 8.5 million Kenvue shares. In 13F filings, investment managers must tell regulators the amount of stock they own in U.S. firms at the end each quarter. The filings may be backward-looking, but other investors are watching them closely to see if they can provide any hints about trends or which companies activist investors could be targeting.
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Bloomberg News reports that Trump is considering taking a stake in Intel
Bloomberg News reported Thursday that the Trump administration was in talks with Intel about the possibility of the U.S. taking a stake in the struggling chipset maker. The report cited people familiar with this plan. This would be another move by Donald Trump to intervene in industries deemed vital for national security. Trump has called for government tie-ups worth billions of dollars in rare earths and semiconductors. For example, a deal with Nvidia to pay for performance and a contract with MP Materials for rare-earth minerals. Intel refused to comment on this report, but stated that it is deeply committed to Trump's efforts in strengthening the U.S. manufacturing and technology leadership. White House spokesperson Kush Desai stated: "Discussion of hypothetical deals should only be considered speculation until officially announced by the Administration." Intel's stock soared by over 7% during regular trading, and another 2.6% following the bell. These discussions followed a meeting between Trump and Intel CEO Lip Bu Tan this week. The meeting took place just days after Trump demanded publicly that Tan resign due to his investments in Chinese technology companies, including some with ties to the Chinese military. Bloomberg reported that the details of the stake price and cost are still being discussed. Ryuta Machino, an Intel investor Gabelli Funds analyst, said that it was likely the U.S. Government would buy a stake in Intel, because Trump wants Intel to expand its domestic manufacturing and create more jobs. Intel warned that it might have to leave the chip manufacturing industry if it cannot find external customers who will make chips in their factories. It was planning to slow down construction on new factories located in Ohio. Tan, who was appointed to the top position just six months ago, is now tasked with undoing years of mistakes that have left Intel struggling to gain traction in the AI chip market dominated by Nvidia while contract manufacturing ambitions resulting in heavy losses. Ben Bajarin is the CEO of Creative Strategies, a market research firm. He said: "I believe any deal involving the U.S. as well as third party investors (PE) will likely come with tariffs to strongly encourage customers such as Nvidia AMD and Apple to use Intel Foundry." The U.S. Government has taken stakes in many companies, but they have always needed financial assistance. Intel's revenue has remained stable at more than $50 billion per year, despite the fact that its stock value has fallen in recent years. Some investors did not realize that Intel needed such direct government support. (Reporting from Jaspreet and Mrinalika in Bengaluru. Additional reporting by Sayantani Ghosh. Editing by Sriraj and Diane Craft.
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Shell announces that work on the Louisiana refinery gasoline unit will begin this Friday.
Shell confirmed a report on Thursday by confirming that the planned overhaul of its gasoline-producing unit, at Norco's 231,827 barrels per day refinery in Louisiana, would start on Friday. A leak in the 112,000 bpd unit of resid catalyst cracking caused it to be shut down. The planned overhaul that was scheduled to start in September would begin immediately. Shell Norco Energy and Chemicals Park is starting a planned turnaround maintenance on the resid catalyst cracking unit (RCCU), as well as other units, earlier than scheduled. Shell spokesperson Krista Edwards said in an email that work will start on Friday, 15 August 2025. The original schedule had the overhaul beginning on September 15th and lasting for approximately 50 days. Shell also plans to close the GO-1 ethylene plant, the 40,000-bpd hydrotreating unit for naphtha, and the 14,800 bpd alkylation facility. The RCCU converts resid oil using a catalyst and high pressure under heat. Alkylation units turn refining wastes into additives that boost octane in unfinished gasoline. Hydrotreaters are used to remove sulfur from motor gasolines in order to comply with U.S. Environmental rules.
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Berkshire reduces Apple's stake and invests in UnitedHealth
Warren Buffett’s Berkshire Hathaway announced on Thursday that it had made a new investment into UnitedHealth Group, after the insurer was targeted by many Americans who were upset about the direction the country's healthcare is taking. Berkshire reported that it owned 5,04 million UnitedHealth Shares worth approximately $1.57 billion at the end of June. The disclosure was made in a U.S. Securities and Exchange Commission document detailing Berkshire’s U.S. listed common stock holdings at June 30, 2010. UnitedHealth shares surged by 8.5% after-hours. Buffett's conglomerate said that it also sold 20 million Apple shares in the second quarter. This reduced its largest holding to 280,000,000 shares. It also cut back on another major holding: Bank of America. Berkshire has also increased its stakes in home builders. It revealed a new stake of DR Horton, and a significantly larger stake of Lennar. The filing also revealed new Berkshire investment in outdoor advertising company Lamar Advertising, steel manufacturer Nucor and security products provider Allegion. The individual sales and purchases are not clearly linked to Buffett, Todd Combs, Ted Weschler or the future chief executive Greg Abel. Stock prices rise when Berkshire purchases, because investors see them as Buffett's seal of approval. DR Horton rose along with Lennar. Allegion, Lamar, and Nucor. TAPEWORM UnitedHealth shares, which are part of the Dow Jones Industrial Average, have fallen by 46% in this year due to rising costs. Related to its billing practices. A cyberattack. And the murder of former top executive Brian Thompson in December. Buffett called high healthcare costs "a tapeworm" that slowed economic growth. JPMorgan Chase’s Jamie Dimon, as well as Amazon.com’s Jeff Bezos, tried to improve the health of their employees but failed. Haven is a joint venture between Haven and Haven. shut down After three years, in 2021. UnitedHealth has not responded to Berkshire's request for comment. Apple's sales, Berkshire’s first since Berkshire’s third quarter in 2024, reduced Berkshire’s 905 million shares stake further, but did not signify a full-blown withdrawal from the stock. Apple shares are little changed in after-hours trading. Berkshire, despite its new purchases, sold $3 billion in excess of what it purchased between April and the end of June. This is the 11th consecutive quarter that Berkshire has been a net seller. It ended the month of June with $344.1 Billion in cash and equivalents. In the filing on Thursday, other changes included larger stakes for oil company Chevron and alcoholic beverage maker Constellation Brands, as well as Domino's Pizza. Also, T-Mobile's stake was reduced. Berkshire revealed that it bought DR Horton stock, Lennar stock, and Nucor shares before April. The SEC allowed it to keep these purchases secret so that investors wouldn't try piggybacking. Berkshire Hathaway, based in Omaha, Nebraska owns more than 200 companies, including Geico auto insurance, BNSF Railroad, and numerous energy, industrial and retail businesses. Buffett will turn 95 on 30 August. Buffett is expected to continue as Berkshire chairman when Abel, who will become chief executive in January 2026, turns 63. (Reporting from Jonathan Stempel, New York; Additional reporting from Christthosh, Bengaluru; Editing done by Richard Chang and Stephen Coates.)
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Barrick and Shandong Gold to invest $400 million in Argentine mine
Barrick Gold and Shandong Gold are the joint operators of Argentina’s Veladero Gold Mine. They want to add a $400-million project to a government scheme designed to attract major investments. Why it's important Sources from the company said that this project was submitted to Argentina's Large Investment Incentive Scheme. It aims to increase the mine's production by 1.6 millions ounces during its useful life with a $400-million investment between 2025-2028. CONTEXT The details of the application were revealed only on Thursday. It was initially submitted to Argentina’s Economy Ministry at the beginning of August. The joint venture, formed in 2017, after Shandong Gold purchased a 50% stake from Barrick Gold, manages the project. The RIGI framework was implemented last year as part of President Javier Milei’s economic reforms aimed to boost investment. The RIGI framework offers tax, customs, and foreign exchange benefits to companies, while also guaranteeing legal stability over a 30-year period. According to the mining secretariat, gold accounted for 68% (or $3.14 billion) of Argentina's total mining exports last year. Silver and lithium were the second largest exports. The performance was driven by high metals prices. By the Numbers Veladero produced 504,000 ounces gold in 2015 and is forecasting a production of between 380,000 and 440,000 ounces by 2025. The mine is located in the Andes at an elevation of 4,000 meters (13.123 feet). It has been operating since 2005. The investment will fund new mining phases that will increase the capacity to store and process new ore by 89,2 million tons. What's Next? Sources claim that the project will add export revenues of $3.8 billion over its lifetime, which is 2033. The Veladero Mine currently employs 3800 people. 91% of them are from the San Juan Province. (Reporting and writing by Lucila Sigal, Benjamin Mejias Valencia, Hugh Lawson).
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US court reschedules final sale hearing of Citgo parent
According to a filing, a U.S. Federal Court approved on Thursday the rescheduling a long-anticipated sale hearing that was originally scheduled for next week. The hearing would have determined the winner of the auction of shares of the parent company of Venezuelan-owned refiner Citgo Petroleum. After a court officer who was overseeing the auction recommended that a unit from miner Gold Reserve submit a different bid, two uninvited bids submitted recently by affiliates of hedge-fund Elliott Investment Management and commodities company Vitol were approved. Delaware Judge Leonard Stark stated in his order that a new date will be set for the final hearing once the court has received input from Officer Robert Pincus and parties involved in the process, as well as creditors. The court will hold a hearing in person on Monday for the parties to be heard. Pincus, backed by several creditors and buyers, had requested an adjournment to the final hearing on Wednesday. Gold Reserve, who wants the judge to confirm its subsidiary's winning bid as the auction winner, has told the court that it is opposed to any change in the calendar. Citgo's bids for the contract have sparked a heated competition at the last moment, but they have also exacerbated disagreements among the parties and complicated the case. The postponement will likely add to the eight-year-old court case that was first brought by the miner Crystallex, against Venezuela. This has allowed more than a dozen other creditors to seek compensation from Venezuela for debt defaults or expropriations.
Profits of forestry giant Copec fall as revenues beat forecasts
Empresas Copec, a Chilean conglomerate of industrial companies, reported a 21% decline in its second-quarter profits despite revenue exceeding expectations. The forestry giant is facing falling pulp prices as well as trade war impacts due to the U.S. and China.
The net profit for the quarter ended June was $228 million, which is in line with expectations of LSEG's analysts. Revenues were down 1% at $7.18 billion.
The revenue of Copec, the owner of a large forestry company, as well as fuel distribution and mining operations, was higher than analysts' estimates at $6.84 billion.
Copec attributes the drop in sales to lower prices of pulp, a raw material that is used in many products including paper, packaging, and textiles. However it offsets this by selling larger volumes.
Copec reported that China was experiencing an oversupply despite the fact that domestic demand and consumption remained high. In Europe, an excess of pulp combined with lower usage of "almost every grade of paper" led to some paper mills closing.
The trade war between China, the United States and other textile-producing Asian countries has affected the dissolving market, it said.
Copec's forestry subsidiary Arauco said it sold nearly 8% less pulp than the same quarter of last year. However, prices were down by more than 12%.
Arauco is the main contributor to Copec's earnings. Last year, Copec counted 9,360 square kilometers (3,614 sq mi) of land, primarily planted with eucalyptus trees and pine forests, across Brazil and South America. This area was larger than Puerto Rico in the U.S.
Washington imposed a tariff of 50% on Brazilian goods, but exempted some major exports. These include various types wood pulps, sawn timber and paper products.
(source: Reuters)