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Emirates Global Aluminium's profit increases as sales increase weather the Guinea charge
Emirates Global Aluminium (EGA), a Gulf company, said on Wednesday that it had benefited from record metal sales last year despite a $765m 'hit' by?Guinea for revocation of a bauxite?concession to the Gulf firm. Guinea, which is the second largest producer of bauxite in the world, has revoked last year, a mining concession of 690 square kilometers awarded to EGA subsidiary, Guinea Alumina Corporation, and transferred it to a newly-created state-backed company, citing "violations of their mining code". EGA has said that the decision was "a flagrant breach" of GAC’s legal and contractual rights. The UAE-based firm said in a statement that the underlying 'net profit', excluding GAC, increased 16% to $1.34 Billion by 2025. Core profit increased 7% to $2.53 Billion, due to higher average aluminium prices realized and higher sales of 2.83 M?tonnes. Net profit, however, was down 19% from the year before, to $578 millions, when you include Guinea results. EGA, owned by the Abu Dhabi sovereign 'wealth fund Mubadala, and the Dubai sovereign 'wealth fund ICD said that the alternative bauxite supply sources, such as Australia and Ghana, were signed after the license was revoked. These options helped to cover more than 70% of the volume needs. The company proposed to pay $1 billion in dividends based on the earnings of last year.
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Asia markets surge on improved AI sentiment; tech stocks lead gains
Investors piled into what they deemed the safest bets on artificial intelligence, while the yen was still in the spotlight. In his State of the Union address, Donald Trump boasted of the stock market's?gains and claimed that "almost" all countries and corporations wanted to adhere to the tariff and investment agreements they had previously made with Washington. The financial markets did not react much to the speech. Futures markets showed a mildly optimistic start in the U.S. with S&P E-minis rising 0.07% and Nasdaq E-minis increasing 0.11%. The EURO STOXX futures rose 0.2%. The broadest MSCI index of Asia-Pacific stocks outside Japan rose by 1.76%, as several regional markets hit record highs. The Nikkei index, which is the benchmark, rose 2.7%, to 58.853.87. This was its highest ever level, and tech stocks led the gains. The Topix index was up by 1.1% to 3,857.15. The KOSPI rose 2.6%, and traded above 6,000 for a first time. The index has risen 45% this year. The global shortage of memory chips has seen the stock prices of Samsung Electronics and SK Hynix double since October. Cash has flooded up the AI supply chains to these extremely popular chipmakers. Nvidia Corp, the world's leading global chipmaker, will report its fourth quarter results after Wednesday's U.S. market close. The Hang Seng Index in Hong Kong was up 0.36%, while China's CSI300 index was 0.3% higher. S&P/ASX200 in Australia was 1% higher, after reaching a new record high earlier this year despite higher consumer prices. This increased the likelihood of further interest rate increases. Woolworths, a blue-chip Australian food retailer, recorded its largest one-day increase since 1997. Jumping more than 12% after reporting better-than-expected first-half results. The Japanese yen traded at 155.86 dollars per yen, after initially being positive. The currency fell by 0.8% Tuesday. According to a news report, Japanese Prime Minister Sanae Takaichi expressed her concerns about future?interest rate increases to Bank of Japan Governor Kazuo ueda. This raised doubts regarding the next rate rise. The Japanese government nominated on Wednesday two academics who are seen by the markets as reflationists, to join the nine-member Bank of Japan board. These appointments were seen as an indication of the Takaichi Administration's thinking about monetary policy. The yen briefly slipped past 156 dollars per yen in a document that was presented to the parliament. This boosted the Tokyo Stock Exchange. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.14%, while the euro rose by 0.18%, reaching $1.1792. A survey released last week showed that the majority of economists expect the BOJ to increase its key rate to 1.0% by the end June. Some even anticipate a move in April due to mounting inflationary concerns and a weakening yen. The odds of an April hike are 50%, and the chances that it will happen by June are 65%. NAB analysts stated that the latest news brought uncertainty to the market, as it was expected that she would change her stance on monetary policy. The yield on the benchmark 10-year U.S. notes increased by 1.5 basis points, to 4,048%. Meanwhile, the yield on 30-year bonds rose by 1.3 basis to 4.702%. Anthropic, a San Francisco-based startup, unveiled ten new ways that business customers can use its AI plugins. This rekindled optimism about AI's potential to boost profits across different sectors. AI-related stocks have seen a swing in the last few weeks, as investors worried that heavy capital expenditure on AI might not translate into profits anytime soon. In their speeches on Tuesday, Chicago Fed president Austan Goolsbee and Federal Reserve Governor Lisa Cook both noted that they believed the US labour market was beginning to stabilize. ANZ analysts said that it is clear that many members believe they should wait until inflation continues to rise before adjusting their policy. ANZ predicted that the Fed would start easing interest rates in the second half of the year, and most likely by June. They forecasted 75 basis point cuts for this year. U.S. crude oil rose by 0.62%, to $66.04 per barrel. Brent was up to $71.21, an increase of 0.62% for the day. Spot gold increased by 0.68%, to $5182.94 per ounce. Spot silver increased by 2.36%, to $89.39 per ounce.
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Oil nears seven-month highs before US-Iran negotiations
On Wednesday, oil prices were near their highest levels in seven months as the threat of a military conflict between the U.S. Investors are still worried about the possibility of a military conflict between Iran and the United States that could disrupt oil supply. Brent futures rose 43 cents or 0.6% to $71.20 per barrel at 0400 GMT. WTI futures increased 38 cents or 0.6% to $66.01. Brent prices hit their highest level since July 31st on Friday while WTI reached its highest level since August 4th on Monday. Both contracts are holding near that mark as the U.S. positions military forces in the Middle East, to force Iran to "negotiate" an end to its ballistic missile and nuclear programme. A prolonged conflict could disrupt the supply of crude oil from Iran, the world's third largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC) and other countries of the Middle East. The ING commodities analysts said that "this uncertainty will mean the market continues to price in a high?risk premium" and remains sensitive to any new developments. Steve Witkoff, Jared Kushner and a delegation from Iran are scheduled to meet for a third round in Geneva on Thursday. Iran's foreign minister Abbas Araqchi stated on Tuesday that an agreement with the U.S. is "within reach" but only if diplomatic efforts are given priority. "Donald Trump (U.S. President) has warned there would be'very serious consequences' without a deal. Tony Sycamore said that it remains to be determined whether (Iran's concessions) will meet the U.S. 'zero-enrichment' redline. Sources claim that Iran and China are in accelerated discussions to buy Chinese anti-ship missiles to target U.S. Naval forces that have assembled near the Iranian coastline. The?U.S. would be threatened by the anti-ship cruise missiles. naval forces, according ?to experts. Trump will give the traditional State of the Union Address to Congress on the evening of Tuesday. Two anonymous White House officials said that Trump would discuss his plans for Iran, but didn't offer any details. The market has also been concerned about large inventory increases as global supply exceeds demand. The American Petroleum Institute reported late Tuesday that U.S. oil stocks had increased by a massive 11.43 million barrels during the week ending February 20. The API data showed that gasoline and distillate stocks fell. The Energy Information Administration is due to release official U.S. Oil Inventory Reports later today. Reporting by Katya Glubkova and Jeslyn Leh in Tokyo; Editing and proofreading by Christian Schmollinger, Thomas Derpinghaus
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Trump claims to have told large tech companies that they can build their own power plants
Donald Trump stated on Tuesday, during his State of 'Union address, that his administration had told major 'technology companies to build their own data centers. This was a measure meant to protect the consumers from soaring bills. The announcement coincides with a growing local opposition against energy-hungry projects in data centers around the country, which are blamed for an increase in electricity prices. "I'm happy to announce tonight that I have successfully negotiated a new rate payer pledge. What is that? He said that we were telling major tech companies they had to "provide for their own energy needs". We have an old grid. It couldn't handle the numbers or the amount of power that was needed. So I tell them that they can build their own plant. They will produce their own power. It will guarantee the company's ability of getting electricity while at the same, lowering the prices for you, said he. He did not mention the companies or give details about how the plan will be implemented or enforced. Two sources familiar with this plan say that the White House will host companies to formalize this effort in early March. The Trump administration is committed to advancing artificial 'intelligence in order to compete with China. However, the impact of the rapid proliferation of AI data centers on electricity prices has become a vulnerability for Republicans as they prepare for the midterm elections. PJM Interconnection is the largest grid operator in the U.S. and last month announced a plan whereby new large users of power would bring their own 'new generation' to the grid or limit their use when the'system was stretched. Anthropic, Microsoft and other companies have announced voluntary initiatives to limit the impact data centers will have on energy prices. (Reporting and editing by Deepa Babyington, Richard Valdmanis)
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Asia markets gain on improved AI sentiment; Trump speech is awaited
Investors doubled down on what is seen as the safest bet in artificial intelligence (AI) while the yen was the focus. Investors who have been shook by the volatility of recent months were also waiting for Donald Trump's State of the Union address on Tuesday night in Washington. Market participants are preparing for remarks that could cover everything from Iran to trade policies. Early trading saw MSCI's broadest Asia-Pacific share index outside Japan?up?1% higher. Japan's Nikkei set a record high. In early trading, it was up 1.1% to 57,956.92 after reaching an intraday high of 58.047.89. The Topix index as a whole rose 0.07%, to 3,818.73. KOSPI Korea was up nearly 1,7% and trading above 6,001 for the first. The index has risen 44% this year. The global shortage of memory chips has caused the stock prices of Samsung Electronics and SK Hynix to double in value since October. Cash has flooded up the AI supply chains, reaching the most popular chipmakers. The fourth quarter results of the world's largest chipmaker,?Nvidia Corp. will be released after the U.S. market closes on Wednesday. The Hang Seng Index in Hong Kong was up 0.36%, while China's CSI300 index was 0.3% higher. S&P/ASX200 in Australia was up as much as 1,1%, reaching a new record high. This is despite the fact that consumer prices increased in January, increasing the likelihood of further interest rate increases. After a 0.8% drop on Tuesday, the yen gained 0.12% to 155.7 dollars per?dollar. According to a report, the Japanese Prime Minister Sanae Takaichi expressed her concerns about future interest rate increases to Bank of Japan Governor Kazuoueda. This raises doubts regarding the next rate increase. The dollar index (which measures the greenback versus a basket including the yen, the euro and others) fell by 0.05%, to 97.84. At $1.1777, the euro was up 0.05%. A survey released last week showed that the majority of economists believe the BOJ will raise its key interest rate to 1% at the end of the month. Some even expect a move in April due to rising inflationary concerns and the weakening of the yen. The current odds are 50% for a rise in April and 65% for a raise in June. This latest news, which was expected to change her stance regarding monetary policy, has brought uncertainty to the market. Investors will be eager to learn who she nominates for the two new members of the Bank of Japan board that are expected to announce today. The yield on the benchmark 10-year U.S. notes increased by 0.5 basis points, to 4,039%. Meanwhile, the yield on 30-year bonds rose by 0.4 basis point to 4.6933%. Anthropic, a San Francisco-based startup, unveiled ten new ways that business customers can use its AI plugins. This rekindled enthusiasm for AI's potential to boost profits across a variety of sectors. AI-related stock prices have been volatile in recent weeks, as investors worried that heavy capital expenditure on AI might not translate into profits anytime soon. "AI isn't a bubble, but it doesn't mean that every AI bet pays off." Laura Cooper, Nuveen’s head of macrocredit and global investment strategist, said that some companies are spending a lot on AI but will likely not see a return. In their speeches on Tuesday, Chicago Fed President Austan Goolsbee and Federal Reserve Governor Lisa Cook both expressed the view that they believed the US labour market was beginning to stabilize. ANZ analysts said that it is clear that many members are waiting for inflation to continue rising before lowering policy. While there are signs of stabilisation of the labour market in 2026, conditions on the labour market remain soft and are a source for disinflationary tension. ANZ predicted that the Fed would start easing interest rates in the second half of the year, likely in June. They forecast 75 basis point cuts for this year. U.S. crude oil rose by 0.75%, to $66.12 per barrel. Brent was up 0.75% at $71.30. Spot gold remained flat at $5,138.49 per ounce. Spot silver dropped 0.43% to $86.66 an ounce.
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Oil prices near seven-month-highs ahead of US/Iran talks
Investors are still worried about the possibility of a military conflict between Iran and the U.S., which could disrupt the supply. Talks between the two parties will take place on Thursday. Brent futures traded at $71.22 a barrel at 0140 GMT, an increase of 45 cents or 0.64%. WTI futures rose by 0.64% or 42 cents to $65. Brent prices hit their highest level since July 31st on Friday while WTI reached its highest level since August 4th on Monday. Both contracts are holding near that mark as the U.S. positions military forces in the Middle East, to force?Iran into negotiating an end to its ballistic missile and nuclear programme. A prolonged conflict could disrupt the supply of crude oil from Iran, the third largest producer of oil in the Organization of Petroleum Exporting Countries (OPEC), and other countries of the Middle East. Steve Witkoff and Jared Kushner, U.S. envoys, are scheduled to meet an Iranian delegation on Thursday for a third?round of talks in Geneva. Abbas Araqchi, Iran's Foreign Minister, said that a deal between the U.S. and Iran was "within our reach" if diplomacy takes priority. "Donald Trump (U.S. President) has warned there would be'very serious consequences' without a deal. Tony Sycamore said that it remains to be determined whether (Iran's concessions) will meet the U.S. 'zero-enrichment' redline. Sources say that amid the increased tensions, Iran has accelerated the talks with?China to buy Chinese anti-ship missiles. These could be used to target U.S. Naval forces stationed near the Iranian coastline. Experts say that anti-ship cruise missiles would increase Iran's attack capabilities and pose a threat to the U.S. Naval forces. Trump will deliver the traditional State of the Union Address to Congress on Tuesday night. On condition of anonymity two White House officials said Trump would discuss?his plans regarding Iran, but did not provide details. The market has also been concerned about large inventory increases as global supply exceeds demand. According to sources in the market, the American Petroleum Institute reported late on Tuesday a massive increase of 11.43 million barrels for the U.S. stockpiles during the week ending February 20. The API data showed that gasoline and distillate stocks fell. The Energy Information Administration is due to release official U.S. Oil Inventory Reports later today. (Reporting from Katya Glubkova, Tokyo; editing by Christian Schmollinger).
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Senate Democrats blast Trump over failing to apply sanctions to Russia
Democrats in the Senate Banking Committee criticized President Donald Trump on Tuesday for not stepping up sanctions against Russia to force it to end the four-year war in Ukraine. They noted that the European Union had?designated nearly 900 targets by 2025, compared to only two?for?the?U.S. Democratic staff from the Republican-led panel released an analysis on the fourth anniversary. They identified hundreds of targets that Trump could have sanctioned during his first year as president. The war in Ukraine, Russia’s western neighbor, has caused the deaths of hundreds of thousands of people and ravaged large areas of Ukraine. They said that Democratic President Joe Biden - whose term ends in January 2025 - rolled out 32 different sanctions packages during the first three war years, but critics claim enforcement was lacking. Trump, on the other hand, announced only one major package of sanctions targeting Russian oil giants Lukoil & Rosneft. This was despite Russian attacks which have decimated Ukraine's power grid and targeted civilians. Trump has asked the Ukraine to sign a ceasefire agreement that may require painful concessions on land captured by Russian troops. However, so far there have been no breakthroughs in talks between Russia and Ukraine. The White House did not respond to a request for comment. PROPOSED BILL LANGUISHES Olha Stefanishyna - Ukraine's Ambassador to the United States - stressed on Tuesday the importance of passing in Congress a bipartisan measure that would impose sanctions against countries that purchase?Russian uranium, oil and gas. 85 out of 100 senators support the bill, but Republican leadership has not put it to a vote due to Trump's opposition. She told reporters that the bill should be passed immediately, or they would have to accept that it was not going to happen. The Democratic report stated that Russia is still incredibly dependent on the importation of key technologies needed for war, which creates opportunities for sanctions. The minority staff stated that it was unclear why a president who is serious about negotiating a peaceful settlement would let our sanctions wither. "Without any follow-up action, evaders profit brazenly without any U.S. repercussion, and the Kremlin is aware of it." Washington announced some new cyber-related sanctions against individuals and entities including some in Russia. However, they had nothing to do with the war in Ukraine. Treasury Department has defended their approach by noting that sanctions against Rosneft and Lukoil had pushed Russian oil prices down, which in turn limited the revenues available to finance the war. Treasury spokesperson: "Unlike Biden’s never-ending sanction approach, which failed to stop the conflict, the sanctions?imposed on Rosneft?and Lukoil?contributed to a sharp drop in Russian oil prices?, costing the regime billions?of dollars?, and making it?more difficult?for the Kremlin?to?manufacture?military equipment?," the spokesman stated. Trump will continue to use every option available to "stop this senseless killing," said the Treasury spokesman. U.S. Treasury secretary Scott Bessent said during a hearing before Congress last month that the sanctions against Rosneft, Lukoil and other oil companies?had brought Russia to the negotiation table. He said that further sanctions would be dependent on the outcome of talks to end the "war". Bessent stated that he would be considering new sanctions against Russia’s shadow fleet. This is a move Trump hasn't taken since assuming office in January 2025. The report listed many possible sanctions targets that the Trump administration had missed, including more 130 companies in China and Hong Kong who "advertised immediate sales of restricted computer chips to Russia." The list also included companies sanctioned around the globe by the European Union, Britain, and others, for aiding Russia's military as well as Central Asian Banks designated by the EU in the past year. The report said that the Trump administration did not sanction officials or individuals who were responsible for human right abuses including deporting Ukrainian children. (Reporting and editing by Andrea Shalal.
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Trump Administration working to increase tariffs to 15%
A White House official revealed that the United States started collecting a temporary 10% global import tax on Tuesday. However, after the Supreme Court's ruling last week, there is confusion about President Donald Trump’s tariff policy. The Supreme Court ruled that the emergency law imposed broad duties on imports. Trump initially signed an order for a temporary 10% tariff to last 150 days. On Saturday, however, he announced he was increasing the rate to 15 percent. The U.S. Customs and Border Protection agency informed shippers on Monday night that the tariff would be 10%. The White House official said that Trump had not changed his mind about his desire to impose a 15% tariff on Section 122 of Trade Act of 1974. However, he did not provide any details regarding the timing of this increase. CBP is only able to act on executive orders or proclamations that are published by the president. As of Monday, Trump has not yet signed an official presidential order for a 15% increase. CBP's notification referred to the Friday order and stated that imports "would be subject to an additional 10% ad value rate." Why is the rate lowered? This move has added confusion to the U.S. Trade Policy, as no explanation was given in the notice about why the lower rate had been used. In a note, Deutsche Bank stated that "Trump will deliver the State of the Union Address tonight. It's possible we could get a better idea of the next steps regarding tariffs." Analysts said that they still believe the effective tariff rate will fall this year, and that the post-SCOTUS world will have lower tariffs. While a 10% tariff may be less harsh than anticipated, traders cited the uncertainty surrounding trade prospects as a reason why global stocks opened lower Tuesday. The major U.S. indices, however, ended higher as tech stocks recovered. The Nasdaq rose 1.05%; the Dow Jones Industrial Average rose 0.76%; and the broad S&P 500 Index gained 0.77%. The Supreme Court had ruled that the old tariffs were invalid and the collection of them was stopped. The tariffs ranged between 10% and as high as 50%. REFUND MOTIONS FILED The plaintiffs in the Supreme Court's tariff case have filed motions in federal courts on Tuesday to enforce their ruling and begin the refund process. Liberty Justice Center and Neal Katyal, its co-counsel in Washington and New York, filed coordinated motions at the U.S. Court of International Trade and U.S. Court of Appeals Federal Circuit seeking an immediate mandate to return the matter to CIT. They also wanted the government to issue instructions to refund tariffs and interest. The Supreme Court sent the case back to lower courts for any refunds. According to an estimate by the Penn-Wharton Budget Model, more than $175 Billion in federal revenue was collected under the 1977 International Emergency Economic Powers Act from now-invalid Tariffs. Sara Albrecht of the Liberty Justice Center who represented five small business challenging the tariffs said that the government must be held accountable for its earlier promises to provide automatic refunds in the event the tariffs are overturned. Albrecht stated in a press release that the government "cannot promise to the courts refunds would be automatic, if the illegal tariffs were struck down by the Supreme Court, and then after the ruling, claim these refunds could take 'years. "It's simple: the government illegally imposed a tariff on Americans and stole their money. "We'd like to get it back." EU RESURRED ABOUT TRADE DEAL. The new 10% tariff is a problem for the European Union. They agreed to a deal that had a base tariff of 15%. The European Commission's Trade Minister,?Maros?Sefcovic, said that the EU faces a "transitional phase" due to Trump's temporary tariff. However, he added that U.S. officials had reassured him Washington would stand by the deal. It is unclear whether and how the Supreme Court will refund companies for the tariffs they paid under the program that was annulled. Section 122 of the law allows for the president to impose new duties up to 150-days to address "large, serious" balance-of payments deficits and "fundamental problems with international payments." Trump's tariffs order claimed that there was a "serious" balance-of payments deficit in the form a $1.2 trillion annual U.S. goods-trade deficit, current account deficits of 4% GDP and a reverse of the U.S. primary-income surplus. Some economists and lawyers claim that the U.S. does not face a balance of payments crisis. This makes the new duties susceptible to legal challenges. China's Commerce Ministry said Tuesday that it urged Washington to drop its "unilateral" tariffs, indicating that the country was ready to engage in another round of talks with the largest economy. Mark John, Francesco Canepa, and Andrew Chung contributed to the report in New York and London. David Lawder, Mark John, and Sharon Singleton edited it.
Post-holiday hot metallic output rises, as iron ore prices increase
Iron ore futures rose on Wednesday, as traders anticipated a pick-up in the 'feedstock demand' after the Lunar New Year holiday. However, an increase in incoming iron ore shipment may limit price gains.
As of 0332 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange increased by 1.42%. It now stands at 752.5 yuan (109.51 dollars) per metric ton.
The benchmark March Iron Ore?on the Singapore Exchange increased 1.98% to $98.55 a ton.
After the Lunar New Year holiday, Chinese blast furnaces are expected to ramp up production. The broad-based metals rallies also helped to lift sentiment.
Galaxy Futures, a Chinese broker, said that traders were cautious because the steel demand is expected to decline in the first half of the year due to a weakening consumer.
According to data from Mysteel, iron ore prices face additional downward pressure due to rising shipments of iron ore from Australia and Brazil. Total port inventories have risen in both countries since the start of this year.
Fortescue, meanwhile, reported a 23% increase in its first-half profit on Wednesday. This was aided by record iron ore shipment and higher prices for the commodity.
The miner achieved record iron ore shipment in the first half, with a 3.0%?drop in costs of iron ore and a 6.6% increase in realized prices.
Coking coal and?coke, which are used to make steel, also gained on the DCE. They rose by 2.64% each and 2.75% respectively.
The benchmarks for steel on the Shanghai Futures Exchange have firmed. Rebar rose 1.65%, while hot-rolled coils climbed 1.13%. Wire rod grew 1.42%, and stainless steel jumped 1.11%. ($1 = 6.8717 Yuan) (Reporting and editing by Sumana Niandy; Ruth Chai)
(source: Reuters)