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Sources: Next Rio Tinto boss to cut costs and make big deals.
Rio Tinto's next CEO, who may be named as early as this month by the company, should be open for mergers and acquisitions that are transformative, as well as for cost-cutting and productivity improvements. After announcing in May that Jakob Stausholm was stepping down after four and a half years, the world's largest iron ore mining company is now in the final stages of selecting a new CEO through an internal search and an external search. Two other sources familiarized with the search process said that the finalist for the top position will present their case to the board this week in London. A decision could be made as early as the end of July. The timing of board presentations and Chair Dominic Barton’s preference that the new CEO be open to large deals, as well as his preference for the CEO to have a positive attitude towards them, were not previously reported. According to a report in May, internal candidates include Bold Baatar (chief commercial officer) and Simon Trott (chief executive of the iron ore division). A fifth source said that Chief Technical Officer Mark Davies was also a possible candidate. All sources spoke under condition of anonymity, as the search is confidential. Rio, who is due to announce its half-year results July 30, has declined to comment. Barton Trott Baatar Pecresse Davies have not responded to requests for comments. Barton met with stakeholders after Stausholm announced his departure to discuss this abrupt change of guard. Two people who were privy to Barton's discussions about his priorities for a new CEO revealed that he had floated the idea of a "big ticket M&A", with another mining giant, if enough value could be found. According to a source with knowledge of the matter, Glencore approached Rio about a possible asset combination in 2013. However, talks ended abruptly due to Stausholm's pushback. Analysts have suggested that a tie up with Canada's Teck Resources might be more suitable. A new CEO must walk a thin line between cost discipline, and repositioning a miner to a dramatic shift to copper. Copper is expected to become in high demand because of the energy transition. The two people Barton briefed said that the company has acknowledged the fact that its internal costs are excessive, including staffing. It needs a CEO to better manage these costs. Financial results reveal that from 2020 to 2024 costs at Rio increased by 46.5% faster than BHP and Anglo American. This means a new boss must be disciplined in capital allocation. RBC Capital Markets estimates that Rio will spend $30 to $35 billion over the next decade on capital expenditures, including $8 to $9 billion for lithium projects following Stausholm's May acquisition of two new lithium projects in Chile. Kaan Peker, an analyst at RBC, said: "Jakob had previously stated that they were going to be aggressive on lithium. But I wouldn't surprise if some lithium growth projects get pushed back a little in favour of Copper." Peker believes that any M&A is unlikely to happen in the near future because the new CEO would have to boost the share price of the company to get the best bang for the buck if it decides to use its shares to compete with another major miner. CONSTRAINTS According to a source familiar with the process of CEO search, the company has been discussing an internal hire. Analysts and investors have said that all the top contenders face constraints when it comes to a board that is concerned about operational excellence and cutting costs in particular. They added that it was uncertain whether a hire from within would be able to adequately address cultural issues, such as safety in Guinea or sexual harassment in Australia. Trott was responsible for the final ramp up of the Gudai Darri mine, which led to the second highest iron ore shipment in history by 2023. He also brought in new replacement projects. He also handled sensitive Aboriginal heritage matters after Rio damaged rock-shelters at Juukan Gorge, in 2020. Since Trott assumed the role of Rio in 2021 Rio has continued as the most expensive major Australian iron ore producers, its ore has decreased and it is currently guiding production to be in the lower half its expected range this year because of cyclones. It's been four tough years. "The business showed a turnaround in 2023, but it was a difficult hand because of Juukan Gorge as well as the weather," said Barrenjoey Analyst Glyn Lawcock. Baatar's concern is his relationship with the government, as he previously worked three years at Rio Copper, including the Oyu Tolgoi mine, in his native Mongolia. Stausholm announced in 2022 a reset for Mongolia, including a $2.4 billion debt waiver. Rio announced last month that it was forced to alter its mine plan because the government had delayed the transfer of the mining licence. Pecresse, a candidate who has led the Aluminium division to a 61% rise in EBITDA in 2024, is favored by some members of the board, according o ne source familiar with the process. He was a former leader of GE's renewable energies division. His departure from GE saw a significant expansion in the global presence of this unit, which had struggled to be profitable. Davies has been responsible for driving productivity improvements which could help cost-cutting initiatives. He led the smaller titanium and iron and marine arms of the company, but not its major operational divisions like other candidates. Analysts said that there is only a small chance of Rio hiring an outsider. Reports have previously mentioned that Newmont CEO Tom Palmer, and former Oz Minerals Chief Andrew Cole, are potential candidates. Investors have said that Sandfire Resources' CEO Brendan Harris could also be a candidate. Harris didn't respond to a comment request.
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Dollar gains on US tariffs; shares steady and oil drops
The Asian stock markets took the latest twist of President Donald Trump’s tariff announcement on Tuesday in stride, while the dollar remained strong and oil fell. Wall Street shares fell after Trump sent a letter to 14 countries including Japan and South Korea revealing sharply increased tariffs on imported goods into the United States. He also delayed their implementation until August 1. Japan's Nikkei opened lower, but then turned positive when Trump said that the deadline was "firm but not 100% solid" and that tariffs could be adjusted for certain countries. The Aussie Dollar surged when the Reserve Bank of Australia held policy rates at their current level, as expected. Tapas Strickland is the head of market economy at National Australia Bank. He said that there was a muted reaction from the market to Trump's tariff announcements, as a result of Trump's swift reversal of his "Liberation Day", duties originally set out on 2 April. Strickland told a NAB podcast that "there's going be a lot volatility" as headlines begin to appear, more letters are released, and the negotiation process really comes to the forefront before the August 1 deadline. Trump set a 10% cap on all so-called reciprocal trade tariffs until the 9th of July to allow time for negotiations. Two agreements have been made, with Britain, and Vietnam. Washington and Beijing reached an agreement in June on a framework for tariff rates. This restored a fragile truce to their trade war. Tariffs for Japan and South Korea will now increase to 25% by August 1. The Japanese prime minister Shigeru Shiba described the increase as deeply regrettable, and stated that his country would continue to negotiate with the U.S. Thailand’s finance ministry Pichai Chunhavajira revealed his country was preparing a backup plan to deal the 36% tariff on its exports. EU sources informed on Monday that the European Union would not receive a letter outlining higher tariffs. After a "good conversation" between Trump and European Commission President Ursula von der Leyen, a spokesperson for the commission said that the EU is still hoping to reach a deal on trade by Wednesday. The broadest MSCI index of Asia-Pacific stocks outside Japan increased by 0.3%. Japan's Nikkei index rose 0.4% while South Korea's KOSPI increased 1.5%. After reaching a new two-week high, the dollar gained 0.1% at 145.88yen. The euro increased by 0.3% to $1.1744. The Australian dollar increased by 0.8% to $0.6541. The RBA kept its cash rate at 3.85%. This was a surprise to markets who had confidently priced a reduction. They said that the majority of board members wanted to wait until more information could be confirmed to confirm the inflation slowdown. U.S. crude oil fell 0.5% to $66.71 a barrel, after surging almost 2% on Sunday. Spot gold fell 0.2%. Euro Stoxx futures in the pan-region were down by 0.2%. German DAX was also down by 0.2%. FTSE futures fell 0.4%. (Reporting and editing by Jacqueline Wong, Sonali Paul and Rocky Swift)
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Australia's central Bank keeps rates at 3.85% and stuns the markets
The central bank of Australia left its cash rate unchanged at 3.85% on Tuesday, shocking markets that had confidently bet on a reduction. It said the majority wanted to wait until more information was available to confirm the inflation slowdown. The Australian dollar rose 0.8% to $0.6545 while the three-year bond contract extended previous losses by falling 13 ticks to 96.5. The Reserve Bank of Australia, which concluded a two-day meeting on policy, said that it was cautious about the outlook for inflation. Six members voted in favor of keeping rates the same, while three others voted against. This is a rare split vote by the board. The markets had almost fully priced in an easing of the RBA to 3.60%, given that core inflation has slowed down to the midpoint of its 2%-3% target range. Consumer spending is also proving to be weaker than anticipated. The board stated that they could wait until more information was available to confirm the inflation rate is still on track to achieve 2,5% on a sustainable base. It noted that the monetary policy was well placed to respond to international developments, if they had material implications for Australian activity and inflation. On Monday, Donald Trump escalated his global trade war by telling trading partners such as Japan and South Korea higher U.S. duties would begin on August 1. However, there were opportunities for further negotiations. The RBA reduced interest rates twice in February and once in May. However, the cuts did not have much of an impact on consumer spending despite driving housing prices to new records. A stubbornly frugal customer is the reason why the economy barely grew during the first quarter. Retail sales data suggest that households are saving instead of spending tax cuts. In May, the closely watched trimmed average measure of inflation hit 2.4%. This was a three-and-a half year low. It also fell below the target range of 2-3%. Many economists shifted their call for a rate cut to July, from August. However, the labour market remained resilient. This is why it's not a good idea for RBA to rush into stimulatory policies. Since over a year, the unemployment rate has been at 4,1%. (Reporting and editing by Shri Navaratnam.
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Oil prices ease as traders evaluate US tariffs and OPEC+ production hike
Investors retreated from oil prices on Tuesday, after a nearly 2% rise in the previous session. They were assessing new developments regarding U.S. Tariffs and a larger-than-expected OPEC+ production increase for August. Brent crude futures fell 22 cents or 0.3% to $69.36 per barrel at 0330 GMT. U.S. West Texas Intermediate Crude fell 27 cents or 0.4% to $67.66 per barrel. U.S. president Donald Trump began Monday telling U.S. trade partners, including major suppliers South Korea, Japan, as well as smaller U.S. Exporters such as Serbia, Thailand, and Tunisia that the U.S. will begin imposing sharply higher tariffs on August 1. He later clarified that this deadline is not 100% certain. Trump's tariffs have caused uncertainty on the market, and there are concerns that they could negatively impact the global economy, and therefore, oil demand. There are signs that demand is still strong, especially in the U.S. Last week, AAA data showed that a record number of Americans (72,2 million) were expected to travel over 50 miles (80 kilometers) during their Fourth of July holidays. The U.S. Commodity Futures Trading Commission published data on Monday that showed money managers increased their net-long positions in futures and options contracts for crude oil in the week leading up to July 1. Seasonal factors continue to support a healthy prompt demand. It remains to be seen if the forward demand can continue to absorb OPEC+'s larger than expected supply. India, the third largest oil consumer in the world, also showed signs of increased demand. government data Reporting fuel consumption was 1.9% more than it was a year earlier in June. On Saturday, the Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to increase production by 548,000 barrels a day in August. This is a higher rate than the 411,000 bpd they increased for the previous three months. This decision eliminates almost all the voluntary reductions of 2.2 million bpd that the group made. Five sources with knowledge of the situation say that they are likely to approve a 550,000-bpd increase for September at their meeting on August 3. This would undo all the cuts. Analysts said that the actual increase in production has been less than what was announced and the majority of the supply comes from Saudi Arabia. (Reporting from Stephanie Kelly in New York, and Jeslyne Lerh in Singapore. Editing by Christian Schmollinger).
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Exxon, Hess Dispute Over Chevron Deal Nears Resolution
The arbitrators in a legal dispute between Exxon Mobil and Hess have reached a decision related to a major oilfield project in Guyana, according to two sources familiar with the matter.The ruling will determine whether Chevron can move forward with its $53 billion planned acquisition of Hess.The Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is now reviewing the decision before it is released to the parties.It is unclear what the arbitrators decided or when the decision will be released."We remain confident in our position and appreciate the arbitration panel giving this issue the due consideration it deserves," an Exxon spokesperson said in a statement.Hess, Chevron and the ICC did not immediately respond to requests for comment.Chevron struck its deal to acquire smaller U.S. oil producer Hess in October 2023, with the prize being the latter's 30% stake in the prolific Stabroek block in Guyana that is operated by Exxon with a 45% interest.The closing of the acquisition has been delayed due to arbitration claims from Exxon and CNOOC, the other minority partner in the joint venture, who argue that they have a contractual right of first refusal to purchase Hess' stake in the Stabroek block. CNOOC did not immediately respond to request for comment.Chevron and Hess argue the clause does not apply to the sale of the whole company. If they lose the arbitration or are unable to agree on an acceptable resolution with Exxon and CNOOC, the acquisition would fail, according to the terms of the deal.The stakes are high for Chevron. Acquiring Hess is key to Chevron CEO Mike Wirth's strategy to improve the company's performance. Gaining access to the Stabroek block would provide a valuable addition to Chevron's declining oil and gas reserves.(Reuters - Reporting by Sheila Dang in Houston; Editing by Sandra Maler and Sonali Paul)
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Rotra Futura RoRo Vessel Enters Offshore Wind Operations
The Rotra Futura Roll-on/Roll-off (RoRo) vessel has entered operations, with the transportation of wind turbine blades from Denmark to the United States.The project supply vessel, specifically designed to handle larger and heavier offshore wind turbine components, collected the 108-meter-long blades at the Port of Aalborg, Denmark, under the supervision of deugro Denmark’s wind experts.The vessel, delivered in late March 2025, was developed as part of the the partnership between Danish logistics specialist deugro, Siemens Gamesa Renewable Energy and Amasus Offshore.“We are delighted to officially welcome Rotra Futura to our fleet of RoRo vessels dedicated to servicing the offshore wind industry.“After years of preparation and hard work, it brings great joy to finally see her in action.“Witnessing the first loading operation executed so smoothly and precisely – just as we had planned for – is a proud moment for our entire team. Rotra Futura has performed to our full expectations, reaffirming her vital role in supporting the logistics needs of the offshore wind market,” said Dennis Bjørslev Jensen, Branch Manager, deugro Denmark.Rotra Futura's sister ship Rotra Horizon was launched in Apirl 2025, from Zhenjiang Shipyards in Jiangsu Province, China, and is salted for delivery this July.Pair of China-Built Offshore Wind Vessels Enter Fleet
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Gold prices hold steady as investors evaluate US tariff hike
Gold prices held steady after U.S. president Donald Trump announced higher tariffs for imports from Japan and South Korea. A firmer dollar and higher Treasury yields also limited gains. As of 0220 GMT, spot gold was unchanged at $3,334 an ounce. U.S. Gold Futures are unchanged at $3.344.20. Trump told trade partners on Monday that the U.S. would begin imposing tariffs of 25% on all goods imported from Japan and South Korea on August 1. This marks a new phase in his trade war, which he began earlier this year. Trump stated that the deadline of August 1, 2018 for the implementation of tariffs is firm, but he will consider extensions if other countries make proposals. The "reciprocal tariffs", which were set at 10%, remained in place until the 9th of July to allow time for negotiations. However, only agreements have been reached with Britain and Vietnam. Tim Waterer, KCM Trade's Chief Market Analyst, said that Trump's latest tariffs letters keep gold on the radar of investors looking for a hedge against uncertainty. However, a strong dollar and rising bond yields limit the metal's upside potential in the short term. The yield on the benchmark 10-year U.S. notes hovered around a two week high while the U.S. Dollar Index steadied, after hitting a one-week-high in the previous session. Gold's price increases when the dollar is stronger. Waterer stated that "traders appear relatively unfazed" by Trump's tariffs letters. With safe-haven demands largely contained, gold is just waiting to see if a breakout on the topside occurs. Trump's tariffs have increased inflation fears and complicated the Federal Reserve's efforts to reduce interest rates. The minutes of the Fed meeting from June, which are expected to be released on Wednesday, will provide more information about the central bank's outlook. The spot price of silver fell 0.1%, to $36.78 an ounce. Platinum rose 0.6%, to $1379.29, and palladium grew 1%, to $1170.46. (Reporting and editing by Sumana Nady and Subhranshu Sahu in Bengaluru.
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Iron ore prices rise despite Trump's tariff threats
Iron ore prices rose on Tuesday due to a resilient short-term demand from China, the world's largest consumer. However, caution caused by President Donald Trump’s threat of increased tariffs limited gains. As of 0244 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange added 0.14%. It now stands at 733 yuan per metric ton. As of 0234 GMT, the benchmark August iron ore traded on Singapore Exchange was up 0.55% at $95.75 per ton. The near-term demand for iron ore was stable, as shown by the relatively high output of hot metal, which is a measure of iron ore consumption, and underpins the prices of this key ingredient in steelmaking. The fall in portside iron ore inventories, which fell 0.4% compared to the previous week and reached 144.04 millions tons by July 7, according to data from Mysteel consultancy. The resumption of trade tensions around the world has limited price gains. Trump began Monday telling his trade partners, from major suppliers like Japan and South Korea down to minor ones, that the U.S. will be imposing sharply higher tariffs on August 1. This marks a new phase of the trade war Trump launched earlier this summer. Coking coal and coke were both up by 0.54%, but other steelmaking ingredients did not change much. The benchmarks for steel on the Shanghai Futures Exchange have been moving sideways. Rebar fell 0.13%, while hot-rolled coils were down 0.06%. Wire rod remained flat, and stainless steel was up 0.63%. The (steel market) focus has returned to the seasonally weak fundamentals, after the frenzy over promises of crackdowns on price wars receded," Zhuo Guqiu said. Analyst at Jinrui Futures. The downside is likely to be limited, as supply and demand are not in conflict at the moment. (Reporting and editing by Amy Lv, Lewis Jackson, and Rashmi aich).
Police report that one person has died after a car crashes into a crowd in the German city of Mannheim.
A police spokesperson reported that a vehicle drove into a crowd in Mannheim, west Germany. The car hit one person and injured several others.
The spokesperson said that the car's driver was detained but it is not clear if there are any other suspects.
The police are urging the public to avoid this area.
The incident took place as people gathered for carnival parades in Rhineland cities.
Local media reported that a black SUV was driving at high speeds when it hit a group of pedestrians as they were travelling from Paradeplatz, the city's centrally located square, towards the landmark water tower.
After a series of violent attacks, such as deadly car rammings that occurred in Magdeburg, Germany in December, and Munich, Germany last month, along with a stabbing that took place in Mannheim, Germany in May 2024, security has become a major concern.
The police are on alert for the carnival parades in Cologne and Nuremberg after accounts linked to the Islamic State militants group called for an attack on the events. Reporting by Alfio Marinao in Mannheim, and Rachel More from Berlin. Writing by Friederike Hiene, editing by Thomas Seythal.
(source: Reuters)