Latest News
-
Valero Energy Q4 profit beats estimates; shares surge
U.S. refining company Valero Energy kicked off earnings season in the U.S. on Thursday with strong profits for the?fourth quarter,? thanks to a rebound of margins and a higher volume. Fuel manufacturers have made unexpected profits in the third quarter. Product margins, largely driven by the ongoing Russia-Ukraine conflict, recovered from multi-year lows that were seen in 2024, when earnings dipped from their post-pandemic peak. The San Antonio-based company reported that its refining margin increased by over?61% compared to a quarter ago, reaching $13.61 per barrel. Its average throughput volume also rose, from 2.9 million barrels per days a few years earlier, to 3.1 million. Valero shares were up by?over 3 percent shortly after Thursday's conference call. LSEG data shows that the adjusted net profit for the quarter came in at $3.82 per share. This compares to analysts' expectations of $3.27 per shares. The company returned $1.4 Billion to its shareholders in the fourth quarter. VENEZUELA DEALS: BENICIA Refinery Closure Investors wanted more information about Venezuela on Thursday's conference call. The U.S. Energy sector is preparing to increase output in the Latin American nation after the Trump Administration outlined a plan that urged companies to invest $100 billion to revitalize the country's petroleum industry. Randy Hawkins, vice president of crude and raw materials supply and trading, said that it was great to have Venezuelan crude back in our system. The crude is expected make up approximately 10% of the total crude oil supply. Valero's "heavy crude" diet accounts for a significant portion As early as February. Manav Gupta, UBS analyst, said that Valero was the refiner best positioned to profit from the influx of Venezuelan barrels into the U.S. The Venezuelan regime could change, resulting in a wider differential in crude oil prices. Gupta said that a $3 increase per barrel in the heavy-light differential would lead to an earnings boost of at least $600,000,000 for Valero. The refiner provided an update on its refinery located in Benicia, California. It is expected to cease operations by the end April. Rich Walsh, executive vice-president of the refinery, said that it will start idling all its process units by February. He added, "We will continue to provide the California market from Wilmington."
-
Consumer group files complaint after infant milk recalls
Foodwatch, a consumer rights group that advocates for consumers' rights, filed a criminal complaint on behalf of 8?families on Thursday. The group claims the babies fell ill from consuming contaminated infant formula. Nestle, Danone, and Lactalis have all withdrawn batches from the market in the last month due to concerns over possible contamination. The toxin, cereulide, can cause nausea and vomiting. Foodwatch, a non-profit organization based in Berlin that works?against the food corporations and regulatory agencies of Europe,' said that babies developed vomiting, diarrhea, fever, and abdominal pain. Some required hospitalisation prior to the recall. The complaint asks for a criminal investigation of possible offenses committed by manufacturers, and alleges that authorities failed to act quickly. Foodwatch noted "silent withdraws" and delayed consumer warnings in certain countries. Nestle said it had acted'responsibly and transparently, proactively in taking actions. Nestle's spokesperson stated that "when we confirmed the oil used in our products was the cause, we acted quickly to alert authorities, to proactively alert industry and to inform consumers, customers, partners, and most importantly, to adhere to?our values of prioritizing the safety and well-being of babies worldwide." Danone, Lactalis Hochdorf Granarolo, and Vitagermine were named in the complaint following the recall of products. However, they did not respond to comments made immediately. Last week, the local food safety authorities confirmed that a baby from Flanders in Belgium was sickened by contaminated Nestle infant formula. They said the 'baby recovered fully. Nestle has said that it has received no medical reports to date confirming any link between its products and illnesses. French investigators are investigating whether there is any link between two infant deaths and the recall of formula products.
-
Danone recalls batches in Germany of Aptamil Baby Formula, letter shows
A letter sent to a wholesaler on Thursday revealed that Danone has recalled three batches of Aptamil infant formula in Germany. The French food manufacturer is scrambling to quell a panic over toxin contamination, which began with Nestle products. Danone Deutschland, in a letter dated 26 January, asked Alliance Healthcare to remove some batches of Aptamil manufactured between May and 2025. The letter was published by online pharmacy Shop Apotheke. It stated that the wholesaler had little or no stock remaining, given that it received new deliveries. Danone announced on Friday it would be recalling certain baby formula batches from targeted markets. It did not mention which brands, countries, or volume of products were affected. But it stressed that its products are safe, and meet all safety regulations. Danone did not immediately respond to Thursday's?request? for a comment. Nestle announced in January that it would be withdrawing certain batches of infant formulas including SMA, BEBA, and NAN due to possible contamination by a toxin called cereulide, which can cause nausea and vomitus. Since then, the recalls have been expanded to include other French producers Lactalis and Vitagermine. The combined loss could exceed $1 billion. Danone shares have fallen almost 13% over the past two weeks. French investigators are investigating whether there is any link between two infant deaths and the recall of formula products. The German Federal Office for Consumer Protection and Food Safety announced on Thursday that certain batches of Danone product were being withdrawn. An official recall could only be issued when it is known the products have been consumed by consumers. The recalls show how an 'ingredient compromised can spread throughout the highly regulated infant food sector, prompting swift action by regulators and causing market jitters. A supplier detected Cereulide in a product. This?toxin is produced by Bacillus cereus. France's Agriculture Ministry has stated that the product was made in China. The Food Safety Authority of Ireland has also confirmed that cereulide had been detected in arachidonic oil manufactured in China.
-
Eskom South Africa increases wage offer during ongoing union negotiations
Eskom, the state-owned South African power utility, has increased its offer of a salary increase to trade unions from 3.5% last year. A?document seen showed that this is still 'well below what unions demand. Eskom's electricity cuts and financial problems have been a drag on Africa’s largest economy for a long time. A sharp improvement in its coal-fired electricity stations allowed Eskom to stop the nationwide "blackouts". Last year, it reported its first profit for the full financial year in eight years. In a second round pay talks, the revised wage offer was made to three major unions that it negotiates salaries with. The document showed that Eskom had proposed the 5.5% wage increase to come into effect on July 1, one day after the expiration of its current three-year wage deal. This offer also includes adjustments for other benefits such as housing. A spokesperson for Eskom confirmed that the utility had offered a 5.5% salary increase. Unions want pay increases of up to 15 percent, which is far higher than South Africa's inflation rate. In December, it was 3.6%. The central bank believes that the rate may have peaked. The National Union of Mineworkers' energy sector coordinator,?Khangela Baloyi said that a third round of wage negotiation is planned for February. Eskom's three year agreement, reached in 2023, saw the salaries of non-managerial staff increase by 7% per annum. Former state monopoly generates the majority of South Africa's power and would like to?agree another multi-year salary deal. Previous wage disputes have led to power blackouts as a result of unions going on strike. The impact of a possible strike on Eskom operations this time around is more difficult to assess, as its recent improvements in its generation fleet mean it has excess capacity. (Reporting and editing by Alexander Winning & Kirby Donovan; Additional reporting by Wendell Roelf)
-
Copper prices soar to record highs above $14,000, as investors pile in
The copper price spiked up to $14,000 per metric ton, a new record, on Thursday, as speculators continued their buying spree. They were encouraged by the expectation of high demand, and backed by a weaker dollar and geopolitical worries. Copper spiked with 'the biggest one-day increase in over 15 years, then lost most of its gains. Other metals also surged, before sliding into the negative. Benchmark three-month Copper on the London Metal Exchange rose 11%, reaching an all-time record high of $14,527.50 per metric ton. By 1700 GMT it had fallen to $13,612.50, which was a gain of 4%. Bulls, mostly in speculative funds ignored warnings from analysts that high prices could chill physical demand among industrial consumers, and were not supported by current supply/demand principles, creating a quandary for investors. In a note, Neil Welsh of Britannia Global Markets stated that "Copper's biggest one-day increase in years was driven by intense speculative trades by bulls in China." Investors are dumping base metals in anticipation of stronger U.S. economic growth and more global spending on data centers, robotics, and power infrastructure. Copper is used for power and construction, but inventories monitored by the global exchange are high, particularly in the U.S. After setting a new record, the most active copper contract at the Shanghai Futures Exchange ended daytime trading 6.7% lower, at 109.110 yuan (15,708.77 dollars) per ton. The gains were made despite a weak physical demand in China, the largest consumer market. The Yangshan Copper Premium The Chinese demand for copper fell to $20 per ton on Tuesday, the lowest level since July 2024. It was $55 in December. Traders said that copper is also on the rise due to an interest in hard assets. This has led to gold and silver reaching record highs partly because of geopolitical tensions. A weaker dollar index also supported metals. The index was near multi-year lows and made commodities priced in U.S. dollars cheaper for buyers who used other currencies. The erratic trading of other LME metals was also a factor. LME surged to another record high?of $59 040 a ton despite weak fundamentals and then fell 2.5% to $54,540. LME aluminium rose 3% to $3356 per ton, its highest level since April 2022. Then it fell 1.1%, to $3222. Zinc rose 1.4% to $3.412 per ton, after reaching its highest level since August 2022. Lead fell 0.3% to $2,000 and nickel rose 0.5% to $18,355, down from the intraday high of 19150.
-
ArcelorMittal claims $2 billion against Italy over steel plant dispute
ArcelorMittal is a multinational steelmaker that was the former owner Acciaierie d'Italia, an Italian steel company. On Thursday, it announced that it filed a 1.8 billion euro claim ($2.2 billion) against the Italian Government over losses?linked with its investment in ADI's factories. This filing is a 'tit-fortat' move after Italy's state appointed administrators of ADI (formerly known as ILVA) sought around 8 billion euros in damages from ArcelorMittal alleging it mismanaged ADI’s steelworks. Early in 2024, the government assumed control of ADI after ArcelorMittal. ADI has struggled to maintain its production due to high energy costs and low demand. In the government's ?case, Luxembourg-headquartered ArcelorMittal said in a statement on Thursday that ADI's government-appointed commissioners had served it ?with a summons to appear before a Milan court. It rejected all accusations, including that it had pursued a'strategic approach of running down the 'plants, destroying ADI’s business, and extracting profit from Italy. ArcelorMittal announced that it had invested around 2 billion euros to "turn around a structurally-challenged business." Much of this money was dedicated to meeting the environmental standards set forth by the government. It claimed that the government had made "omissions" and "illegitimate legislative intervention" which affected the terms?under which it purchased the plants, and caused the company to lose its investment. In December, sources close to the issue said that 'Italy selected U.S. Investment Fund Flacks as the exclusive buyer for ADI. The?government tried before to sell ADI’s steelworks to a consortium of Azeri companies Baku Steel, and Azerbaijan?Business?Development?Fund but could not reach an agreement. ILVA Taranto?steel was once Europe's biggest steel plant, but it has been hampered since 2012 by judicial investigation and asset seizure?related to its environmental impact. The future of ADI has become a key political issue for Italian Prime Minister Giorgia Melons, since a shutdown could have significant effects on the manufacturing sector in Italy.
-
Microsoft falls, and oil prices rise on Iran-related fears
Oil prices rose on U.S. - Iran tensions, as global shares fell on Thursday. On Wall 'Street in the U.S. Stocks were down in the opening stages of trading. Microsoft shares fell more than 11%, which put the company on course for its largest daily percentage decline since March 2020. Investors were unnerved after the record expenditure on artificial intelligence in the last quarter. Meta Platforms' quarterly results showed a gain of over 8%, but this was overshadowed by the drop in Microsoft shares. This shows that investors are willingly to overlook massive AI expenditures as long as they are accompanied with strong growth. Tesla, a fellow "Magnificent 7" member, slid nearly 2% following its earnings report. Apple will post its results after the closing bell. Adam Turnquist is the chief technical strategist at?LPL Financial, based in Charlotte, North Carolina. The Dow Jones Industrial Average dropped 69.72, or 0.15 %, to 48.945.88. The S&P 500 fell 53.52, or 0.77 %, to 6,924.51 while the Nasdaq Composite lost 379.35, or 1.59% to 23,478.10. The MSCI index of global stocks fell 5.18 points or 0.49% to 1,046.49. This was its first decline in six sessions. The dollar index (which measures the greenback versus a basket currencies) rose 0.36%, its second daily gain after a recent bout with weakness. Meanwhile, the euro fell 0.22% to $1.1926. The dollar's strength was boosted by the Federal Reserve's decision to keep interest rates unchanged on Wednesday. Chair Jerome Powell cited a strong economy, and lower risks of inflation and unemployment, which indicated that the central bank would have plenty of time to cut rates. The U.S. economy reported on Thursday that initial weekly jobless claims had fallen, which indicated that layoffs were still low. However, soft hiring kept consumers pessimistic regarding the labor market. U.S. crude oil prices rose by 2.67%, to $64.90 per barrel. Brent was up to $70.31 a barrel, up 2.79 percent on the day, after rising more than 5%. Geopolitical tensions kept upward pressure on the gold price, which reached a record $5,594.82 per ounce. This was its ninth consecutive record high. Gold spot prices fell 4.13% to $5,176.45 per ounce, despite the gains.
-
Dow forecasts weak revenues amid slow demand, and will cut 4,500 jobs
Dow will cut 4,500 jobs or 13% of its total workforce as part of a massive restructuring designed to boost profitability by at least $ 2 billion. However, the company's first-quarter revenues are expected to be below expectations due to persistently low demand. In the morning of Thursday, shares of the company dropped 5.8%. On a call after earnings, executives said that the job cuts would also reduce the roles and resources of third parties. The company is using automation and AI in order to improve efficiency and lower costs. Chemical producers around the world are reevaluating their strategies due to stagnant demand in Europe, rising production costs, and changing regulatory requirements. Dow has also been reevaluating its ownership of non-core assets throughout its global portfolio. This includes power and steam production, pipelines, and other assets. Jim Fitterling, CEO of Fitterling Corporation, said that the company will deliver the remaining $500 million in savings from the $1 billion cost-saving program by the end the year. Dow, which employs 34,600 workers and operates manufacturing sites across?29 countries, anticipates incurring $1.1 to $1.5 billion of one-time costs associated with the restructuring in 2026 and 2027. The company has not specified which sites or business units will be affected by the planned job cuts. DOWNBEAT EXPECTATIONS OF REVENUE According to data compiled and analyzed by LSEG, the company predicted first-quarter sales of $9.4billion, which is below analysts' averaging estimate of $10.33billion. Dow said that modest seasonal improvements in demand and the benefits of cost control during the quarter may be offset by planned maintenance and continued downward pressure on the market, particularly for the construction and building industry. The Michigan-based company reported a smaller-than-expected adjusted loss of 34 cents per share, compared with analysts' average estimate of a loss of 46 cents. (Reporting and editing by Sriraj Kalluvila in Bengaluru)
As production increases, Simandou's mega-mine in Guinea is being overshadowed by mass layoffs
Guinea's Simandou Mega Mining Project, promoted by the government's military as a symbol for the country's transformation in terms of economics, is now laying off tens of thousands of workers as it finally begins to export iron ore, after years of delays and scandals.
Simandou, the first election since the 2021 military coup that brought Mamady to power, was launched in November with pomp and?a public holiday.
Political analysts believe that the junta's leader will be the favorite to win and could stay in power for seven more years.
Guinea, even without Simandou - the largest untapped iron ore reserve in the world - is the biggest exporter of aluminium bauxite. Its mining wealth, however, has not improved the lives of many people.
World Bank data from 2025 revealed that more than half of the population lives in poverty.
We interviewed 12 workers, former employees and senior sources from the company. They asked not to be identified because the matter was sensitive. They said that the process of firing thousands of employees had already begun.
Simandou's plans to produce 120 million metric tonnes of iron ore per year, or 7% of the global demand, is a disappointment for all those who had hoped that their lives would improve in the long run.
EMPLOYMENT RISES TO MORE THAN 60 000
Companies and government sources said that the number of jobs created by Simandou would peak at over 60,000 in 2024-2025. This was because contractors were racing to meet the deadlines set forth by Guinea's ruling military to speed up iron ore exports, which had been delayed for nearly 30 years.
The mines, ports and 670 km (416 miles) of railway, which was built specifically to facilitate exports from this landlocked project, will require less than 15,000.
Two consortia are involved in the project - the Winning Consortium Simandou (WCS), which is mainly composed of Chinese companies, and Rio Tinto.
The way that the work is organised, the reduction in the workforce is extreme.
The executive said that the project was "simultaneous spread", meaning all sections were built simultaneously, and the construction workforce was boosted to the peak. "Then, everything finishes, so the whole thing falls off the cliff."
WCS, who manages the majority of the rail via more than 12 subcontractors did not respond when asked for comments on its workforce.
Rio Tinto is responsible for two mine blocks and 78 km of rail that connects them to the main railway network. It also manages the transshipment facilities in the new port located on the Atlantic coast of Guinea. It has employed around 25,000 people, 82% of whom are Guineans, during the construction phase.
A spokesperson for Rio Tinto stated that the Simfer project would require "a workforce of approximately 6,000 people to work at a terminal for transshipment vessels at the port and in the mine." The mine construction and rail construction are scheduled to be finished next year. Work at the port is expected to continue until 2027.
Chris Aitchison said that he was concerned about the risks posed by sudden job loss, also known as demobilisation in the industry.
It's what's coming next? He said. He said.
In similar projects, like Mongolia's Oyu Tolgoi Copper Mine, former mining workers had more job options.
Risk of Social Unrest and Accidents
Sources in the workforce said that job cuts had already begun. In Dantilia (a hub near the border with Sierra Leone) 8,000 out of 10,000 workers lost their jobs in the past three months. The remaining 2,000 workers have been informed that their jobs are going to end in the next few months.
The workers in Kamara, which is part of the same district said that around 1,500 workers had already been fired.
"We're waiting in hope, but they don't yet have any solutions and haven't made any promises," said a Winning Consortium Simandou pick-up driver, who asked not to be identified. "There's no other job."
According to three Western companies, there is growing concern that a reduction in staffing may increase the risk of accidents and social unrest.
They were concerned about possible community protests, which could take the form of blockades on the Simandou Railway, where trains had already killed cattle and angered local residents who depended on their livestock.
Sources at the company said that risk assessments conducted by consortia over the past six months highlighted the areas where people or animals could wander onto tracks and derail them, leading to the construction of fences, which the original design had not provided for.
Reports in March stated that 12 workers died as a result of accidents while working on the railway project at Simandou between June 2023 to November 2024. At least five locals were also killed in traffic accidents caused by vehicles used for the construction.
Rio Tinto reported five more worker deaths.
Bouna Sylla, the Minister of Mines, said that the government is strict with partners regarding safety and environmental protection.
GOVERNMENT PROMISES FOR FUTURE WORK
The impact of job losses is magnified by Guinea's narrow skill base and lack of income buffers.
Sylla, who spoke to the media days before Simandou's launch on 11 November, acknowledged that the layoffs will be painful.
Sylla stated that it is not easy to lose a job after earning a good salary and waking up every morning for work. He described the government's plans for new infrastructure, such as roads, refineries, and power plants. However, he didn't give a time frame.
The official launch of the new export terminal at Morebaya, on Guinea's Atlantic Coast, was full of energy, featuring brass bands, honor guards, traditional dancing and visiting dignitaries. Doumbouya, wearing a white Guinean Boubou tunic, watched from the sidelines.
Guinea's military-led government is promoting "Simandou 2020" as a 15 year strategy for transforming the country into an economy based on investments in agriculture, transportation, technology, finance, and health.
The government owns a 15% stake and has estimated that the cost of the plan will be $200 billion. This would be partially funded by mining revenue, but the majority should come from private capital.
Sylla stated that the Administration et Controle des Grands Projets, Guinea's infrastructure agency was currently working on feasibility analyses. Two sources confirmed that the government had also commissioned KPMG to produce a report on reemployment programmes. The report will be released after the elections.
KPMG declined to comment on a request. The agency for infrastructure said that the plans include 3,000 km of new highways, which will be built over 15 years.
The Long Wait for Prosperity
Nearly 30 years after Rio began exploring the deposit, there is still no answer to the question whether Simandou will bring prosperity to most of Guinea.
In its May publication "Selected Issues" on Guinea's Economy, the IMF published a paper entitled "Guinea's Economy: A Selective Issues Paper". The macroeconomic effects Simandou will have on 2024 were modelled.
The report found that it could increase the real GDP of the country by 26% by 2030. However, it said that the reduction in poverty would be minimal - only 0.6 percentage points - without policies to manage the change.
It said that the project's effect on increasing the number skilled workers "could even worsen inequality, particularly in rural areas." Clara Denina, Maxwell Adombila Akalaare and Barbara Lewis contributed to the report.
(source: Reuters)