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Indonesia, India sign BrahMos missile deal
The Indonesian Presidential 'palace' announced on Tuesday that India and Indonesia had?signed an agreement on the BrahMos Cruise Missile System. During his two-day trip to Indonesia, Indian Prime Minister Narendra Modi visited President Prabowo Sibito. This was his first visit to Southeast Asia since 2023. According to a Jakarta announcement that did not provide any details, BrahMos - an India/Russia joint venture missile company - and Indonesia's Defence Ministry signed a deal for the BrahMos system of missile defense. The?reported on Tuesday earlier that India would supply the BrahMos missile defense system to Indonesia and also?the Astra Air-to-Air missile, citing a government official in India. BrahMos stated that it is in advanced discussions with Indonesia for a deal between $200 million to $350 million. It has already signed agreements with its neighbours Vietnam, and the Philippines. The palace also announced that Indonesia's Republikorp - a private defence holding company - and India's Bharat Dynamic - a defence company based in India - had signed an agreement regarding air-to-air weapons. Both countries signed memoranda of understanding to strengthen supply chains for critical minerals, steel and agriculture. Steel Authority of India will establish a joint-venture with Indonesia's Krakatau Steel for the production of stainless steel plates in Indonesia. Prabowo and Modi both said, "We are two of the biggest democracies on the planet." "Partnerships between us will benefit the region." Prabowo, the Indonesian minister of trade and industry, said that India will speed up its negotiations with Indonesia on a preferential trading agreement. Modi stated that the two countries would work together to promote maritime safety and security in Indian Ocean. In their comments, neither leader mentioned the BrahMos agreement. Prabowo and Modi met in New Delhi, India last year. They signed a number of agreements. Modi will be departing for Australia and New Zealand tomorrow. (Reporting from Stanley Widianto and Sakshi dayal in Jakarta; Additional reporting by Anandateresia, Editing by Martin Petty.)
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Saudi Arabia cuts crude oil prices but is this enough? Russell
Saudi Aramco has cut its crude oil price for Asia, for August-loading shipments. This move appeared to signal an intention to regain market shares and recover volumes following the Iran War. Even the record-breaking 'August official selling price' (OSP), may not be sufficient, since crude oil from other Middle East producers and exporters from Africa and the Americas are likely to remain more competitive. Aramco, 'the world's largest oil exporter', has set its OSP at a $1.50 discount to the regional benchmark of Oman/Dubai for August. It was the largest drop in record since 2003, with a $11 reduction from the OSP for July. The OSP also fell to its lowest level since the month of June 2020. At that time, the crude oil market in the world was massively oversupplied. Prices were also at their lowest levels for decades due to the COVID-19 locksdowns. The current situation is reminiscent of 2020, in that the market narrative has changed dramatically to expect a surplus of supply. This is largely due to the belief that the conflict between?United States & Iran's over. This assumption could be tested in the future by the events, and the two parties are still far from an agreement that would cement the ceasefire of 60 days agreed on last month. Saudi Arabia and other Middle Eastern producers assume that the Strait of Hormuz will remain open, and that any vessel seeking to pass through the narrow waterway can do so even if it is under Iranian control. Aramco's decision to reduce the OSPs, which take about 80% their oil to Asia, is probably a move by the company to regain market share. According to Kpler's data, Saudi Arabia exported 4.53 million barrels of oil per day (bpd). The June shipments were higher than the 3.74 million bpd of May. This was the lowest Kpler has ever recorded going back to 2013. However, they are still 2 million bpd lower than the 6.55 million bpd average for the three months before the U.S. & Israeli attack on Iran. CHINA MOVES Aramco's key market is China. It is the world's largest crude importer and a market where Saudi Arabia has lost market share. China's imports of Saudi Arabia were estimated at 705,000 barrels per day (bpd) in July. This is up from the 12-year low 626,300 barrels per day in June, but less than half what they averaged for the three-month period leading up to Iran conflict, which was 1.48 million barrels per day. Aramco's massive increase in OSPs was a response to the closure of the Strait of Hormuz which impacted Middle East crude supply. It is not surprising that China reduced its imports of Saudi Arabian crude. Aramco was also able to redirect a large portion of its exports to Yanbu, a port located on the Red Sea. However, this came at a high cost to Asian refiners. The OSP for Arab Light reached a record-high of $19.50 over the average Oman/Dubai price for May-loading shipments. China has also reduced its imports from other countries, as shown by Kpler data, which shows that seaborne arrivals in June were the lowest since January 2016, and roughly half the levels before the Iran conflict. China's track record is that it has cut imports when the prices are rising sharply but also increased arrivals when the prices fall. It may be that the size of Aramco's cut in August-loading cargoes is enough to entice China's state-controlled major refiners to buy full allocations. It's still not certain, since crude from other Middle East countries such as Kuwait and Iraq, or the United Arab Emirates, is offered at a greater discount. The UAE has been offering several dollar discounts per barrel since it left the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ in?May. This is much higher than the $1.50 Aramco had announced for its August shipments. Abu Dhabi National Oil Co., the main oil producer in the Emirates, plans to increase its crude output to 5 million barrels per day by the end of next year. This will enable it to boost exports to a level higher than the 3.5 million barrels per day that was achieved during the three months prior to the Iran War. Overall, crude oil market seems to be returning rapidly to growth in supply and price wars for market share. This outcome is still dependent on the Strait of Hormuz being fully and sustainably opened. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist, who is also an author.
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ADNOC Distribution will buy Shell's downstream South Africa Business
ADNOC Distribution is a subsidiary owned by Abu Dhabi’s state oil giant. It announced on Tuesday that it had signed a definitive agreement to purchase 100% of Shell’s downstream business in South Africa, as the company pursues its expansion abroad. The company stated that the implied enterprise value for 100% of the shares capital was about $1 billion, before adjustments for working capital and net debt at closing. ADNOC Distribution announced that the deal for Shell Downstream South Africa, which includes wholesale fuel, aviation, and lubricants operations as well as 580 company and dealer owned fuel stations, will close in 2027, subject to regulatory approvals. The Abu Dhabi listed retailer, which is owned by ADNOC in majority, is expanding overseas as it strives to become a major player in fuel retailing and convenience. South Africa will be its fourth market, after the United Arab Emirates, Saudi Arabia, and Egypt, where it bought a 50% stake of TotalEnergies Marketing Egypt in 2023. ADNOC Distribution stated that the acquisition would boost earnings per share in the first year following completion by 6%. ADNOC Distribution will retain a 72% stake in SDSA, after the sale of a 28% share to a local partner and employee stock-option plans, according to South Africa's Broad-Based Black Economic Empowerment Act. ADNOC Distribution has signed a long-term license agreement that will allow it to retain the Shell?brand? for?the retail service station and lubricants businesses. The CEO Bader Said Al Lamki stated in a statement that the proposed acquisition marked a significant milestone in ADNOC Distribution’s international growth strategy. It also reflected our confidence in South Africa, a well-regulated and high-potential fuel retail sector. As of 2025, SDSA operated 360 convenience stores and had fuel volumes of about 3.5 billion litres. A&O Shearman & ENS served as legal counsel to ADNOC Distribution. BofA Securities acted as the exclusive financial advisor.
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Saudi oil price reduction unlikely to convince Asia buyers who are already satisfied, traders say
Saudi Arabian crude sold to Asia has seen its price drop the most in'more than 20 years, but the grade is still more expensive to lift compared to some Gulf rivals. This reduces the appetite for oil from the OPEC linchpin. On Monday, the world's largest exporter cut the??official selling price (OSP), for its flagship Arab Light oil to $1.50 per barrel below the average Oman and Dubai quotations for Asia. This is a $11 reduction from the previous months. The OSPs of its four other grades were also reduced by $11 per barrel. The sudden shift is due to the U.S./Iran interim agreement in June, which has led to more shipping through the Strait of Hormuz. This has also resulted in a resumption of loading of oil and lowered global oil prices. Oil traders stated that the sanctions waiver for Iran crude sales has increased competition among sellers. They also said that lifting crude from within 'the Gulf' still carried a certain risk due to the fragile truce between the U.S. The sharp monthly cuts in?Saudi OSPs were not surprising, as Middle Eastern spot grades traded at even greater discounts," said Vortexa Analyst Emma Li. Li stated that "weak Asian demand from China in conjunction with the waiver of sanctions on Iranian crude oil has intensified the competition between sellers and shifted market to buyers' favor." Saudi crude oil prices reached all-time-highs in May, after the U.S. - Iran?war stopped ships from sailing the Strait of Hormuz where a quarter of global oil supply used to flow. To boost demand, other Gulf producers such as Abu Dhabi National Oil Co., Iraq's SOMO and Kuwait Petroleum Corp. are offering crude oil at steep discounts. The National Iranian Oil Co. is attempting to revive the buying interest of former Asian customers, beyond independent refiners and China, during the 60-day U.S. sanctions waiver. SAUDI CRUDE IS 'WAY EXPENSIVELY MORE' Multiple sources from Asian refineries and trading companies said that August-loading Saudi Crude will cost a few extra dollars per barrel than other Gulf grades. Chartering a tanker for entry into the Gulf remains expensive. Why would I purchase more Saudi oil when I can get Upper zakum at a -$7 price? A source at an Indian refinery said this. A second trader stated: "Saudi crude oil inside the strait is way more expensive." He said that ADNOC's Upper Zakum Crude is being sold at $6-$8 per barrel less than Dubai's quotes for the transfer of oil from ship to ship at Oman's Sohar port. The cost of chartering a Very large Crude Carrier was $4-$5 per barrel. He said that the cost of loading a VLCC which can transport 2 million barrels at the Saudi port of Ras Tanura in the Gulf would be more than twice as much, resulting in a more expensive economics. One trade source estimated it would cost $15 per barrel more to transport oil from the Gulf than from outside. Some sources claim that the state oil company will continue to sell its crude on the spot market in order to compete with other Gulf producers. One trader stated that Saudi Arabia is trying to?prop up prices? by refusing a price war. The August OSP, he said, is higher than Dubai benchmark. Dubai swaps for Monday were about $3.70 per barrel lower. He said that Aramco could lose market share in Asia if they continue to hold on to their prices. Reporting by Florence Tan, Siyi Liu and Nidhi verma from New Delhi.
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MORNING BID EUROPE-Samsung boom, market gloom
Satoshi sugiyama gives us a look at what lies ahead for the European and global markets. Samsung Electronics, based in South Korea, shook the world with its 'outstanding' forecast of a 19-fold increase in operating profit for the upcoming'second quarter from a year ago and topping?its earnings over three years. Investors were still frightened: Samsung shares fell more than 8% while South Korea's benchmark stock index dropped 6.7%. Traders questioned whether AI demand, which is fueling these bumper earnings, can continue to deliver. MSCI's broadest Asia-Pacific share index outside Japan, which takes its cues from South Korea fell 1.7%. The moves are a warning of the volatility coursing through the equity markets, as the AI trade expands beyond semiconductors and equipment makers to include energy groups, copper miner and lithium suppliers. Michael McCarthy, Moomoo Australia's market strategist, said that investors still want to?exposed but are very nervous about valuations. Early European futures showed a decline of 0.34% in the Euro Stoxx 50, a 0.3% drop in German DAX and 0.15% increase for FTSE. S&P 500 E-minis rose 0.07%. Donald Trump, the U.S. president, will be in Turkey for a NATO summit. Before his arrival, European leaders plan to announce arms deals worth tens or hundreds of millions of dollars, showing their heightened commitment to regional defense. The yen rose 0.15% to 161.83 per dollar, a slight improvement from its previous low of?162. Traders are still alert for possible official intervention. Key developments on Tuesday that may influence the markets: - Bank of England releases its 'financial stability report' - German industrial output for May, British Halifax housing data in June, Canadian leading index and trade balance for May, U.S. Trade data for May. (Editing by Kate Mayberry).
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Aluminium prices fluctuate as the market evaluates macros and supply
The price of aluminium fell on Tuesday, as the market continued to assess the supply situation and the broader macroeconomic outlook. Benchmark three-month aluminum on the London Metal Exchange was?down by 0.16% at $3,110.5 per metric ton as of 0300 GMT. It had?risen to a high of one week earlier in the day before falling in line with the rest of the base metal complex. The Shanghai Futures Exchange's most traded aluminium contract increased 0.33% to 22,910 Yuan ($3,373.53) per tonne. This will be the fourth consecutive daily increase. Aluminium stabilized over the past week after being battered in the previous weeks by expectations of returning Middle East supply and the declining Gulf war risk premium. Some analysts warn that it will be some time before supply returns to normal. Physical stocks are also low. Total?stocks In LME-registered storage warehouses, inventories are at the lowest level since 2022. Copper prices fell slightly on the SHFE and LME, both by?0.18%. The White House did not announce any news last week about potential tariffs for refined copper. This disappointed traders who were expecting an announcement. The market remained in a waiting-and-seeing mode. Copper prices have been supported by tariff considerations, which has pushed material to?U.S. warehouses. Prices for red?metal have been supported by the demand growth expected from AI infrastructure, grid improvements and electric vehicles. The U.S. Futures Regulator released data overnight showing that speculators reduced their "bullish" position on Comex during the week ending June 30. Oil prices rose slightly but remained close to their pre-Middle East War levels. As market participants sought to find direction in a more tame macroeconomic environment, the broader base metal complex fluctuated as well. Zinc, lead, nickel, and tin all fell on the LME. The SHFE saw zinc gain 0.98% and lead lose 0.47%. Nickel was stable, while tin dropped 0.1%.
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Stocks fall despite Samsung's upbeat forecast. The yen is weakening
Asian stocks fell on Tuesday, despite the fact that South Korea's Samsung Electronics had forecast a 19-fold increase in its second-quarter profits. Meanwhile, the Japanese yen was still pinned at a 40-year low amid speculation about intervention. Samsung Electronics,?the world's largest memory-chip maker, has estimated its operating profit for April-June at 89.4 trillion won ($58.44billion), marking the third consecutive quarter of record profits. South Korean shares fell by 4.1% while MSCI's broadest Asia-Pacific share index outside Japan dropped by 0.73%. Japan's Nikkei shed 1.08%. Investors are seeking refuge in this sector due to concerns about the economy, inflation and the future, including the worsening of tensions with Iran, according to Toru Suehiro. Chief economist at Daiwa Securities. Suehiro, in a recent note, said that while it would be better for share prices to move in line with economic conditions and real-world growth, these conditions don't change very quickly. He added that the markets are therefore likely to remain range bound. Wall Street's three major stock indexes closed higher overnight on hopes artificial intelligence would fuel a strong earnings season in the second quarter. The Dow Jones Industrial Average (.DJI) ended the day up by 0.29%. Meanwhile, the S&P500.SPX rose 0.72%. And the Nasdaq composite.IXIC increased 1.12%. SK Hynix, a South Korean chipmaker, launched a U.S. shares sale on Monday to?raise?43 trillion won ($28.07billion) and drew interest from up to $7billion of major investors. Broadcom announced that it has expanded its partnership with Apple for the development and supply of custom chips through 2031. INTERVENTION AT THE HORIZONT? The yen was near its lowest level in 40 years on the currency markets Tuesday, as traders became more confident to push it lower. There were no signs of Japanese intervention, but the possibility of a sudden yen buying move by Tokyo held losses at bay. Early Asia trade saw the yen struggling to stay below 162 dollars and fell to its lowest level against the British Pound since 2007, at 217.09 after slipping to a new overnight low. On Tuesday, Japan will hold an auction of 30-year Government Bonds. Akihiko Yokoo is a senior analyst at MUFG bank. He said that if the auction was weak, the government bond yields might rise further, and this could accelerate the selling of the yen. The dollar index (which measures the greenback versus a basket of currencies, including the yen, the euro and others) rose by 0.03% at 100.89. Meanwhile, the euro fell 0.01% to $1.1439. Oil prices climbed slightly, but gains were limited. Traders focused on supply and demand after the price of oil reached levels seen before the Iran war. U.S. crude climbed 0.54% to 68.92 per barrel. Brent climbed to $72.34 a barrel, up 0.49% for the day. Donald Trump announced on Monday that the United States will either "finish the deal" with Iran or reach an agreement. He also renewed his threat of military intervention as Tehran continues to show defiance after the funeral of the former Supreme Leader Ayatollah Ali Khamenei. Trump will be attending a NATO summit in Turkey this week. Fed watchers can get a glimpse of how Kevin Warsh, the new chair, will steer the central bank on Wednesday when the Federal Open Market Committee releases its first minutes. The yield on the benchmark U.S. 10 year notes increased 0.42 basis points to 4.483% from 4.479% at late Monday. Gold fell 0.49% on the commodity market to $4,143.59 per ounce. Silver dropped almost 1%, to $61.47 per ounce. Copper fell 0.21% to $13,375.00 per ton. (Reporting and editing by Jacqueline Wong; Satoshi Sugiyama)
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George E. Johnson died at age 99, the founder of a pioneering Black hair product company.
George E. Johnson died on Monday, aged 99. His eponymous Chicago-based company, which marketed brands such as Afro Sheen and Ultra Wave, radically changed the way Black women cared for their hair in the U.S. Johnson, who was reportedly born in a "sharecropper's" shack in Mississippi, and moved with his mother to Chicago at the age of 2, died in his condo in downtown Chicago from natural causes, according to his son John Edward Johnson. The New York Times reported, citing Johnson's second wife Madeline Murphy Rabb as the cause of death, that Johnson had died from a respiratory disease. In 1954, the Johnson Products Company was established to cater to African Americans’ evolving tastes in fashion, hairstyles and cosmetics at a time when?U.S. Companies and advertisers did not pay much attention to Black customers. Johnson founded the business with his first spouse, Joan Johnson. She died in 2019. The company grew to control nearly 80% in the Black haircare market by 1960. In 1971, it became the first Black owned company listed on the American Stock Exchange (now called NYSE American). The company's marketing campaign, which echoed the slogans and images of the Black Pride and Black Power movements of that era, helped the Chicago-based television music show "Soul Train" grow from a weekly broadcast to a nationally syndicated success. The roots of the company illustrate the challenges faced by minority entrepreneurs at the dawn of the civil right movement. Johnson, who began as a door to door cosmetics salesman, after dropping out high school, launched a business with a $250 bank loan he obtained by telling a loan officer that he needed the money for his family's vacation. According to the Chicago Sun-Times, and BlackPast.org an online encyclopedia dedicated to African American History, his first bank had turned down his request for a loan. I knew that this request for a vacation loan would not shake [the loan officer]'s belief that he is superior to me. Johnson's 2025 memoir "Afro Sheen" recounted that it would not challenge the stereotypes he held about Black men being subservient and unintelligent. From HAIR STRAIGHTENER to the AFRO The company introduced its first major brands as hair-relaxing products for the home, such as Ultra Wave for women and Ultra Sheen, to achieve the straight and wavy styles popular during 1950s and 1960s. Johnson's Company adapted to the Black Power movement by introducing its Afro Sheen Blow Out Kit in the late 1960s. Classy Curl is a product that allows consumers to achieve the "Jheri curl" perm, first popularized by Jheri Redding, a white hairdresser and chemist. Johnson's venture started to struggle as it was faced with competition from large cosmetics and hair care companies such as Revlon, who were looking to gain market share in the lucrative African American hairstyling industry. After the Johnsons' divorce, the ownership of the Johnsons' business changed several times before a major African American investment company acquired it in 2009 from Procter & Gamble.
New York Times Business News - July 7,
These are the most popular?stories from the New York Times business pages. The New York Times has not?verified?these?stories and cannot?guarantee?their accuracy.
U.S. president Donald Trump will likely restore the rights of Turkey to buy F-35 stealth jets at the NATO summit, which would reverse a 7-year-old ban imposed by Trump himself. Canada announced on Monday that it has selected ThyssenKrupp to build a fleet of submarines in collaboration with the Norwegian, German and Canadian governments. This is a move towards reducing Canada's military and economic dependence on the United States. Walmart announced on Monday that it would be slashing the prices of beef, produce, drinks and other products, such as toys, summer clothing and grills. This was a move which U.S. president Donald Trump attempted to claim credit for on the 250th anniversary of his country. Samsung Electronics announced on Tuesday a second-quarter operating loss of 89.4 trillion South Korean won ($58.69billion) that was 20 times greater than last year's $3.09billion. This was due to a rise in demand for memory chip used in artificial intelligence data centers.
(source: Reuters)