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Fletcher Building NZ warns about first-half earnings and swings in annual profit
New Zealand's Fletcher Building warned on Wednesday that the volatile economy would affect its first-half earnings for fiscal 2027, despite returning to a profit. This was helped by selling off non-core assets and its Construction division. The Auckland-based construction material maker's shares rose by as much as 6.4%, to NZ$3.98 at 0107 GMT. This is their highest level for more than two years. The builder stated that the ongoing economic, geopolitical and political uncertainty would likely affect first-half fiscal performance in 2027. He added that a meaningful improvement in volumes is not anticipated until calendar 2027. Fletcher sold its construction division in 'January' to a unit of France’s VINCI for NZ$315.6m, due to the weakening construction industry and economic conditions in New Zealand and Australia. Asset sales and the divestment non-core operations units helped the company post a net profit of NZ$228 (US$133.86) million for the year. This is a significant turnaround from the loss of NZ$419 in the previous year. The gross revenue of the materials and distribution segment increased by nearly 10%, to NZ$5,92 billion in the year ended June 30, 2009. "Our core manufacturing units performed well in an extremely difficult trading environment. A sustained focus on capital and operational discipline allowed us to materially increase net cash flow from operating activities for the year," said Managing Director Andrew Reding. Fletcher has not declared a dividend in three years. However, it expects to reset its dividend policy once the company starts generating a positive free cash flow and falls within the lower half range of net debt targets.
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Aluminium giant Rusal makes a profit in the first half of the year on higher commodity prices
Rusal, the Russian aluminium giant, reported a?first-half adjusted net loss?on a Wednesday. This was due to a?rise in?aluminium?prices?linked to increased global volatility. The largest aluminum producer in the world outside of China posted a net profit of adjusted $196 million during the six months ended June 30. This is a dramatic turnaround from a $194 million loss a year earlier. Revenue increased by 10.9%, to $8.34 Billion. "Aluminium Prices?surged up to four-years highs in just a few months and then 'rapidly returned to their initial point," said Chairman Bernard Zonneveld. In many markets, where Rusal was a reliable and responsible supplier, aluminium premiums have reached historical levels. The total sales cost increased by 3.3%, to $6.31 billion. This was mainly due to higher energy costs. Rusal, listed in Hong Kong, said that it believes the tariff increases are temporary, and expected them to stabilize over the medium term. If electricity prices were to 'rise' and reach the average level of the first half of 2026 (other variables remaining unchanged), an impairment charge will be recognised in the consolidated financial statement?of the Group." Reporting by Shivangi lahiri in Bengaluru and Sameer manekar; editing by Sherry j. Phillips and Subhranshu sahu
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Uncertainty over oil exports via Hormuz has pushed up the price of crude.
The oil prices rose in the early trading on Wednesday. They have risen for a?fourth straight day due to supply uncertainty. Investors weighed contradictory messages from Washington and Tehran on whether or not the 'Strait of Hormuz' is open to ships. Brent crude futures climbed?26 Cents, or 0.29% to $91.28 at 0004 GMT. U.S. West Texas intermediate crude futures rose 37 Cents to $85.31 a bar. The two contracts reached their highest levels since July 24, as the hopes for peace between Iran and the U.S. faded. Donald Trump, the U.S. president, said that no talks are taking place with Iran and insisted on Tuesday that the Strait of Hormuz is open. This contradicts Iran's claim that the waterway was closed to shipping. The temporary ceasefire agreement expired Monday, and a senior Iranian officials said that his country would adopt a "fully offensive military posture" due to the diplomatic stalemate. However, there was no news of any new strikes on Tuesday. Iraq's Cabinet approved mechanisms to export Iraqi crude via specialized local and international companies, and through multiple export outlets. According to a press release issued following the cabinet meeting, the contracts will be for three months beginning September 1. According to three industry executives and tanker trackers, as well as a ship broker, two Chinese shipping companies have stopped sending oil 'tankers' through the Bab al-Mandeb and Hormuz straits amid the conflict in the Middle East and are now collecting oil cargoes from outside the Gulf. Market sources reported on Tuesday that crude oil and distillate stocks in the U.S.?fell' while gasoline inventories rose. They cited data from the American Petroleum Institute. The U.S. Energy Information Administration is due to release official inventory numbers at 10:30 am ET (1430 GMT). Analysts polled expect crude stock to have fallen by 600,000 barrels during the week ending August 14. (Reporting and editing by SonaliPaul in Houston, Georgina McCartney from Houston)
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Whitehaven Coal's annual profit drops 29%, and shares drop
Whitehaven Coal, a miner in Australia, reported a larger-than-expected 29% drop in its annual profit, due to lower coal prices. This sent the company's shares down more than 4%, even though it announced a share-buyback program. The average achieved coal prices fell by 6%, to A$202 a metric ton in the year ending June 30. This is due to a combination of cyclical weakness as well as the stronger Australian dollar. The underlying net profit after taxes was?A$227 ($160.69) million, lower than A$319 (or A$247.56 million) a year ago and Visible Alpha's estimate. Revenue dropped 7% to A$5.4 Billion. The shares of Australia's largest coal miner, the independent company, fell by as much as 4,6% to A$7.40 on Monday. This is their biggest intraday percentage fall since July 28. Whitehaven Coal has announced that it will pay a final dividend equal to 6 Australian cents for each share. This is the same as a year ago, and brings the dividend per share up to 10 Australian cents. It stated that it planned to spend A$47m over the next six months as part of its share-buyback program. Whitehaven's coal unit cost dropped from A$139 per ton to A$132, and its capital expenditure fell to A$349 millions (from A$390) million. Whitehaven estimates capital expenditure for fiscal 2027 at A$490 to A$390 millions, up from A$349 in fiscal 2026. The CEO and Managing director Paul Flynn said, "We continued to focus on controllables - productivity, cost discipline and margin optimisation, with both unit costs of coal and capital spending at the lower end of the FY26 guidance." The forecast for managed run-of mine coal production in 2027 is between 38 and 41 million tons, as opposed to the 40.3 million tons produced in 2026. Glyn Lawcock of Barrenjoey's metals and mining department said that the FY27 guidance was given with volume a bit soft, unit cost in line, but capex lower, which could lead to a downgrade in earnings. $1 = 1.4126 Australian Dollars (Reporting and editing by Sherin sunny and Jasmeen ara Shaikh, both in Bengaluru.
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Iraq approves a three-month export mechanism for crude oil via local and international firms
The government announced on Tuesday that the Iraqi cabinet had approved mechanisms for exporting Iraqi oil through specialized international and domestic companies, as well as via multiple export outlets. According to a press release issued following the cabinet meeting, the contracts will be for three months beginning September 1. Iraq wants to diversify its oil export routes and remain flexible in marketing its crude oil amid the Iran War and the 'closure of Strait of Hormuz', which have disrupted regional oil flow and created uncertainty about shipping routes. Iraq has worked to develop alternative export routes, in addition to the traditional southern terminals. These include routes through Turkey and Syria. This is to reduce its reliance on Gulf shipping. Iraq is OPEC’s?second largest oil producer, and heavily relies on crude exports to generate revenue for the state. The majority of its oil exports are shipped out from terminals located in?the southern?Gulf. This leaves the country vulnerable to disruptions along the Strait of Hormuz. The government has not yet 'provided details about the companies that will be selected or the volume of goods to 'be exported using the mechanism. Reporting by Ahmed Rasheed and Ahmed Tolba, Cairo; Editing Matthew Lewis
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Data centres restricted by authorities amid AI boom
As concerns grow over rising electricity costs, water scarcity, and the burden placed on local communities by the AI infrastructure, many governments, regulators, and cities are freezing, restricting, or banning new data centre construction. Here are some examples. PENNSYLVANIA The Governor Josh Shapiro has signed an executive order that requires companies establishing 'AI data centres' in the state to adhere to environmental and transparency standards, as well as securing local community approval. The order is effective immediately and removes all data centres from the Fast Track program of the state. It also prohibits any office or agency within Shapiro’s jurisdiction from entering into non-disclosure contracts with data center developers. The Governor Greg Abbott has ordered a pause in the approval of new data centres through the state’s grid interconnection processes, citing fears that an increase in electricity demand may threaten reliability during a period when opposition to these projects is growing. Developers will have to submit more information under Abbott's directive on the power demand, water usage, tax incentives and ownership structures, as well as efforts to minimize local impacts. NEW ?YORK STATE Kathy Hochul, the governor of New York State, imposed a construction moratorium for data centres that use 50 megawatts and more. This is the first state in America to implement a complete moratorium. During this time, the Department of Environmental Conservation of the State will not be issuing any new permits discretionary while officials work on standards for assessing the environmental impact of the data centres. MAINE (vetoed) Governor Janet Mills has vetoed a bipartisan bill that would have put an 18-month ban on the construction of new data centres that use more than 20MW of electricity. Mills stated that she was in favor of a moratorium but was unhappy with the bill's failure in allowing an exception to be made for a particular project in the town of Jay. MONTEREY PARK (CALIFORNIA) Residents of Monterey Park voted in June 2026 to ban data centres permanently, making it the first U.S. town to do so. This was in response to public outrage over the planned facility. AMSTERDAM (NETHERLANDS) In 2019, the Dutch capital placed a moratorium of one year on any new developments in data centres. It banned new data centres and expansions until at least the year 2030 in April 2025. Microsoft was approved in January 2026 to build a project that is divided into three towers. Each tower falls below the size limit. DUBLIN (IRELAND) (restriction lifted now) Ireland's grid operator has effectively blocked new data centre connections around Dublin starting in 2021, after warnings about the strain on the grid. The power freeze will end in December 2025. AUSTRALIA The Prime Minister Anthony Albanese announced that Australia will establish an office called "Office of AI", which will manage the development of AI Standards, including rules governing the location of large data centres, their power consumption, and water usage. Legislation is expected to be passed early next year. Australia currently does not?have any specific AI laws. Instead, it relies on a variety of privacy and consumer protection legislation and a voluntary AI ethical framework. DENMARK The Danish government has submitted a draft law to the parliament which would give new data centers the lowest priority when it comes to?power grid connection due to growing capacity shortages. The proposed law is backed by a broad agreement across parties representing 80% in the parliament. It would instead prioritize household, healthcare, industrial, transport, and renewable energy project priorities. Denmark's electricity grid is under pressure due to an increase in demand for electricity and requests for connection, including large data centres. Reporting by Hugo Lhomedet in Gdansk and Cian Muenster, Juby Babu, in Mexico City. Editing by Matt Scuffham and Milla Nissi Prussak.
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Pennsylvania Governor signss order to establish AI data centers within the state
Pennsylvania Governor Josh Shapiro signed an executive order on Tuesday that required companies setting up AI Data Centers in the state to meet environmental and transparency safeguards, and obtain 'local' community approval for their projects. Due to the abundance of natural gas in the Marcellus Shale Basin, the existing power infrastructure and the proximity to major population centres on the East Coast, the state has become an attractive location for data center. This year, opposition to rapid data center construction has grown steadily across the U.S. In a June /Ipsos survey, only one third of Americans approved of the speed of data center construction. Only 14% of Americans supported a data centre being built in their locality. He said that the order is effective immediately and removes 'all data centers' from the'state's Fast Track Permit Program. It also bars any office under Shapiro’s jurisdiction from entering into non-disclosure contracts with data center developers. I'm using my full executive authority to stop the objectionable and?unwarranted project, and put in place the nation's most strict set of protections." Shapiro said that the measures were intended to "prevent data center projects from increasing utility bills" and to "protect Pennsylvanians rights to clean water and air." Other states have also taken similar steps. New York placed a 'one-year moratorium' on the construction of large data centers in July. Earlier this month, Texas Governor Greg Abbott halted new approvals, citing fears that rising electricity demand could affect reliability. Amazon announced last year that it would invest $20 billion dollars in Pennsylvania. This investment highlights the state's attractiveness as a location for data centers.
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Pennsylvania Governor signss order to establish AI data centers within the state
Pennsylvania Governor Josh Shapiro signed on Tuesday an 'executive order' that requires?companies establishing AI data centers to meet environmental and transparency safeguards?and obtain local community approval?for the projects. Due to the abundance of natural gas in the Marcellus Shale Basin, the existing power infrastructure and the proximity to major population centers along the East Coast, the state is a popular location for data centres. The opposition to the rapid expansion of data centers in the United States has been steadily growing. This year. In a June /Ipsos survey, only one third of Americans approved of the speed of data center construction. On social media platform X, Shapiro said that the order was effective immediately and removed all data centers as part of the Fast Track program. It also prohibited any office or agency within Shapiro’s jurisdiction to sign non-disclosure agreements with data center developers. "I am using my full executive authority to stop the objectionable and?unwarranted?projects?and put in place the nation's most strict set of protections." Shapiro said that the measures are intended to stop data center projects from driving up Pennsylvanians' utility bills, and to protect their rights to clean air and water. Amazon announced last year that it would invest $20 billion in Pennsylvania. This highlights the state's attractiveness as a location for data centers. (Reporting and editing by Anzar Mehraj, Bengaluru)
Chile's economy misses its forecasts due to a mining slump that drags down GDP
Official data released on Tuesday showed that Chile's economy experienced a decline of 1% in the second quarter. This was below expectations, as lower copper production affected its key mining sector.
Data from the central bank showed that Andean economy shrank by 0.2% compared to a year earlier. Gross domestic product, despite a slight improvement from the revised 0.3% contraction year-on-year in the first quarter of this year, missed economists' expectations for 0.1% growth.
The central bank stated that the economy of the largest copper producer in the world was hindered by the key mining sector, which decreased 6.4% because of lower production of red metal.
The central bank explained in a recent report that "lower ore grades, maintenance work and reduced production at major deposits" affected copper mining operations. The recent drop in inflation and the surprisingly low Q2 GDP result in Chile will lessen the pressure on the Central Bank to tighten its monetary policy, according to Capital Economics analyst Kimberley sperrfechter.
Chile's central bank is expected to maintain its benchmark interest rate at 4.5% in September, and hold that level for 24 months.
In the second quarter, the Andean economy remained flat compared to the previous three-month period. This was below the forecast of a 0.3% growth in a poll. poll. The quarter was better than the last one which had a contraction of 0.3%. Reporting by Aida Peaez-Fernandez, Carlos Serrano and Alison Williams; editing by Chizu Nomiyama & Alison Williams
(source: Reuters)