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Smithfield Foods reports record quarterly earnings, but flags Middle East cost pressures
Smithfield Foods beat analysts' estimates for the fourth quarter results on Tuesday, thanks to strong?demand. It also said that the Middle East conflict will?raise fuel, corn, and packaging costs. Shares of the?U.S. Pork processors jumped by 5% on the morning market after issuing a positive annual profit and sales forecast. Mark Hall, CFO of the company, said that while input costs are expected to remain high by historical standards they will be lower in 2025. The company has increased prices to offset the rising costs of raw materials. It has also seen an increase in demand as more consumers cook at home due to tighter budgets. Smithfield anticipates that total annual sales will increase by low single-digits compared to analysts' expectations of 1.26%. It also expects an annual adjusted operating income between $1,33 billion and $1.4 billion, compared to the $1.34 billion profit recorded in fiscal year 2025. The outlook takes into account several risks. These include the Middle East conflict which could increase the cost of fuel, petroleum-based products such as packaging and corn prices, as well as raising oil markets. They cautioned, however, that the full impact has yet to be determined. LSEG data shows that the company's quarterly sales increased 7%, to $4.23bn, compared to analysts' expectations of $4.14bn, a result of higher market prices. The packaged?meat?sales?rose by 4.3% from the same quarter last year. Smithfield's major revenue-generating division is this segment. Fresh pork sales increased by 2.1%. The Virginia-based firm?said that it expects pork to "well positioned" as an affordable, healthy option for consumers this year. Analysts had expected 68 cents a share. The company reported a quarterly adjusted 'profit from continuing operations' of 83 cents a share.
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US to launch pilot surveys on energy consumption by data centers
The U.S. Department of Energy’s information arm will launch a pilot survey on Wednesday to gauge the energy consumption of 'the country's' data centers. Silicon Valley has invested hundreds of billions in expanding energy-intensive data centres across the U.S. but it is unclear how much power the sector consumes. Americans are worried about the impact of artificial intelligence on their utility bills. Tech giants have been exploring using coal, natural gas and nuclear power to power their data centres. Tristan Abbey, the head of the Energy Information Administration (EIA), said this at the CERAWeek Conference in Houston. EIA will start the surveys in three States before expanding them to other states. Virginia, which has the largest concentration of data centres in the world, is among the three states. Washington State and Texas are also included. Abbey said that the initial survey questions will cover whether or not data centers use backup power supplies and, if they do, what type of fuels are used. Abbey explained that "ultimately we will have a patchwork quilt of?lots?of different things we know and be able launch a mainstay type survey." The EIA began a survey in?2024 of cryptocurrency mining operations. These are a new type of datacenter, and were surveyed using emergency authorities. Two crypto-mining firms sued, claiming the survey was invasive and rushed. Abbey, who assumed her position in September of last year, explained that this pilot survey would be conducted gradually. (Reporting and editing by David Gaffen in New York, Laila Kearney from New York)
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Investors focus on Middle East developments as gold prices remain stable
The price of gold held steady Tuesday, after hitting a four-month low the previous session. Markets assessed developments in 'the Middle East' and their impact on inflation and interest rates. By 11:00 a.m., spot gold had not changed much from $4,408.77 an ounce. ET (1500 GMT) after it hit its lowest level of $4,097.99 in November on Monday. U.S. gold futures for April delivery steadied at $4,409.30. Bart Melek is global head of commodity strategies at TD Securities. He said: "If energy prices continue to rise and the war continues, it's not good news for gold." He added, "Gold is going to be under pressure in the second quarter. But I think that by the end of the year, gold's outlook should look very good, because we hope by then, central banks such as the Fed will enjoy more freedom and we may see rates and the dollar drop." Bullion, once considered "a safe haven" and an inflation hedge, is no longer attractive in high-rate environments, as it pays no interest. The Pakistani prime minister stated on Tuesday that he would be willing to host talks to end the war between the United States, Iran and other countries. This comes a day after U.S. president Donald Trump backed off his threats to attack Iranian power plants in the wake of what he termed "productive" discussions. The war 'effectively halted the shipments of around a fifth of world oil and natural gas through Strait of Hormuz. This has increased energy prices and fuelled inflation fears. The major central banks have also stated that they are prepared to take action if prices rise a lot more due to the war. The recent price drop is just as likely to be an overreaction, as was the massive increase at the start of this year. The pendulum for gold has "swung" from extremes, according to analysts at Commerzbank. Spot gold has fallen by more than 16% from its peak of $5,594.82 on January 29, and is down about 21% since the U.S. - Israeli war against Iran began on February 28, Silver spot rose by 1.1%, to $69.86. Platinum gained 0.7%, to $1.894.60, while palladium fell 1.3%, to $1.414.75. (Reporting and editing by Sahal Muhammad and Diti Pjara in Bengaluru)
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Ukraine steel production capacity down 81% from 2014 when Russian offensive began, says union
The national steelmakers union reported on Tuesday that Ukraine's nominal capacity for steel production has dropped to 8 million tons per year, from 42,5 million tons before Russia's occupation of eastern Ukrainian regions in '2013. The majority of these steel mills were either destroyed or occupied by Russia during the war. Ukraine exports mainly consist of steel and metallurgical products, along with?iron ores and agricultural commodities. According to a Ukrainian GMK Center report, "due to the continuing hostilities, rising fuel prices, and electricity shortages, the monthly steel production in 2026 will be 'unlikely' to exceed 600,000. In the first two months of this year, the union reported that Ukrainian steel production fell 13.2% compared to the previous year. Ukraine, once a major?steel exporter and producer, reported a 70.7% decline in 'output' to 6.3 millions tons by 2022. The output fell to 6,000,000 tons in '2023, 7.58,000,000 tons in '2024, and 7.41,000,000 tons in '2025. This?month, the largest remaining steelworks in Ukraine, ArcelorMittal Kryvyi Rih announced that it would shut?two rollingmills, citing an energy crisis brought on by Russian strikes, and the costs of European Union requirements for environmental protection. (Reporting from Pavel Polityuk).
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Russia abandons plan to reduce oil price budget rule in this year
Vladimir Kolychev, the deputy finance minister, was quoted as saying that Russia had halted its plans to lower the oil price threshold for adding money to a reserve fund. He suggested recent price increases are already boosting the fund. Russia had already signaled that it would lower the oil cut-off prices, the level at which additional oil revenues are paid to a fund from which government deficits can be covered. But that was before the Iran War sent oil prices skyrocketing. "The issue is not being considered for the current fiscal year." The Ministry of Finance has no such proposals. Russian news agencies reported that Kolychev said, "At the moment, we are discussing changes for next year and beyond." The cut-off is $59 per barrel. This is well below the current market level of around $100 per barrel. It means that reserves are being replenished with no policy changes. The comments made on Tuesday confirm an earlier report that said the government would delay lowering the price cut-off. On February 25, just three days before war began, Finance Minister Anton Siluanov announced that changes would be made to the cut-off prices within two weeks. Kolychev stated that the adjustment was still required in the medium-term. He said that the threshold should 'correspond to a level of reserves, and when reserves are low be set at lower levels of a range of scenarios. As of March 1, the liquid assets of the fund stood at $52 billion. Many analysts had warned that the fund would be drained within a year. Kolychev has also denied that there will be any cuts to the budget for this year, adding that the government is always striving to spend as efficiently as possible. (Reporting by Darya Korsunskaya. Gleb Brynski wrote the article. Alison Williams, Mark Potter and Mark Potter (editing)
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Investors placed $500 million in bets on the oil price before Trump's tweet about delaying Iran attack
Only 15 minutes before the U.S. The market plunged after President Donald Trump announced that the attacks on Iran's infrastructure would be delayed by five days. Trump's Truth Social post at 1105 GMT Monday, which gave Iran a deadline of Monday to reopen Strait of Hormuz and face the "obliteration" of its power plants, triggered a massive selloff of oil and natural gases. Brent crude dropped as much as 15 percent in just a few minutes after Trump said constructive talks were underway between Washington and Tehran. This prompted investors to price-in the possibility of deescalation, which could free up the millions of barrels currently clogged in the Gulf. LSEG data show that traders bet on 5,100 Brent and WTI futures worth over $500 million between 1049 and1050 GMT. Data also shows that selling dominated the volume in the minute when these contracts were exchanged. It was impossible to determine who traded oil. 13 MILLION BARRELS OF OIL TRANSACTIONS IN 60 SECONDS, AT 1105 GMT Brent futures volume spiked by 2,000 lots at this point, a much larger increase than earlier in the day. The volume was dwarfed, however, by the subsequent post from Trump. In 60 seconds, at 1105 GMT, over 13,000 lots Brent and WTI futures were traded, which is equivalent to 13,000,000 barrels of crude oil. Brent crude fell from $112 to about $99 before pre-announcement trading took place. WTI dropped from $99 to around $86 prior to Trump posting. Intercontinental Exchange (where Brent crude is traded) and CME Group (which owns NYMEX, where WTI is traded) did not respond immediately to requests for comments. The U.S. Securities and Exchange Commission refused to comment. White House did not respond either to a comment request. Commodity Futures Trading Commission did not respond to a request for comment immediately. OIL PRICES?UP MORE THEN 40%?FROM PRE CONFLICT LEVELS Despite the fact that a fifth or more of the daily supply in the Middle East has been cut off due to the war, the prices are still higher than when the conflict began late February. The trading volume and volatility has exploded. In the three years prior to the war on average, around 300,000 Brent crude futures were traded daily. The daily volume has reached record highs of over 1 million lots, which is equal to one billion barrels?of oil. Brent oil is currently trading at just under $104 because of the uncertainty over the impact on the global economy and the status negotiations. Iran has denied that it is in talks with the U.S.
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Schindler CEO ready to oppose possible Kone-TK Elevator Merger
Schindler's head, who is Swiss, told? The head of the Swiss lift maker told? Bloomberg News reported last week that TK Elevator, a subsidiary of?Finland?s?Kone?was in negotiations to purchase TK Elevator? (TKE), citing people familiar with the situation. The merger would make Schindler the second largest lift manufacturer in the world, surpassing OTIS. Schindler CEO Paolo Compagna stated that the deal would be a 'bloodbath' bound to disrupt industry as the third- and fourth-largest manufacturers of lifts would have to integrate overlapping customer bases and production sites, and also?teams. Compagna stated in the interview that she was sure that they would not be alone in checking that antitrust laws are being followed in all countries. Kone and TKE initially did not respond to initial requests for comments. The same position as in 2019 Compagna reported that Schindler has held the same position since 2019, when the idea of a merger first emerged, with Kone's bid for TKE. Advent International and Cinven - the current owners of TKE - made a bid for around 19.9 billion euros (17.2 billion euros) in 2019. Compagna stated that the current environment is even more challenging today than it was in 2019. Bloomberg reported that a possible deal value could be as high as 25 billion euros. Compagna said that a possible merger could take several years, and would?probably require many?divestitures. If a deal proceeds that far, Schindler will consider buying any divested businesses as part of its bolt on acquisition strategy.
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Rubio testifies in the Venezuelan foreign agent case of an ex-congressman
On Tuesday, U.S. Secretary of State Marco Rubio testified in the criminal trial of former U.S. David Rivera is facing criminal charges for acting as an agent unregistered of the government of Venezuelan ex-President Nicolas Maduro. Rubio's testimonies have taken him from Washington, where he was engaged in high level diplomacy surrounding U.S. president Donald Trump's Iran war, to the federal courthouse downtown Miami, where his political career started. When asked by prosecutor Harold Schimkat if Rubio was employed, Rubio replied, "Yeah. I have two jobs." U.S. prosecutors claim that Rivera, who represented southern Florida as a member of the U.S. House of Representatives between 2011 and 2013, lobbied U.S. lawmakers in 2017 to ease pressure on Maduro, without disclosing he had been paid $20 million by the subsidiary of a Venezuelan government-owned company. This is a violation of Foreign Agents Registration Act. Rubio, Rivera's former roommate who was then a U.S. Senator for Florida, is among the politicians that both prosecutors and Rivera’s defense attorneys claim he met at the time. Both Rubio and Rivera, both Cuban Americans who are Republicans, have been vocal critics of the left-wing governments of Cuba and Venezuela. RIVERA SAYS THAT HE TRYED TO HELP VENEZUELAN Opposition The prosecution claims that Rivera met twice with Rubio in 2017 to promote a negotiated resolution to the escalating tensions between the United States and Maduro without disclosing Venezuela's indirect payment. Roger Cruz, the prosecutor who made Monday's opening statement, said that David Rivera would never have sat with his friend if he had known that he was working secretly for Venezuela. Rivera has entered a not guilty plea to the charges of money laundering and acting as an unregistered "foreign agent". Edward Shohat said that in his opening remarks, he had been trying to 'help the Venezuelan opposition remove Maduro from power. Shohat stated that Rivera's interaction with Rubio was separate from his contract at Citgo Petroleum. Citgo Petroleum is a U.S.-based subsidiary of Venezuela's?oil firm. He claimed that Rivera's Citgo work was purely business and not political, so he didn't have to register with the Foreign Agents Registry. Shohat stated that "David Rivera did not have any reason to inform Rubio of this contract." Shohat stated that both Rivera's?meetings?with Rubio were about working with Venezuelan opposition. Trump increased financial sanctions against Venezuela during his first tenure, despite the alleged lobbying efforts. U.S. Special Forces captured Maduro during a raid in Caracas on January 3, and brought him to New York, where he will be charged with drug trafficking. He has pleaded innocent. Reporting by Luc Cohen, Miami Editing Rod Nickel
Asia Gold-Sky-high rates keep Asian retail purchasers at bay
Retail purchasers in crucial Asian hubs shied away from gold purchases due to soaring prices, requiring dealers to use deep discount rates in top customers India and China.
Area gold prices struck an all-time high of $2,570.21,. driven by U.S. rate cut bets.
The rallying prices dampened demand that had actually been. recuperating following a substantial import duty cut. Retail customers. have actually when again transferred to the sidelines, said Ashok Jain,. owner of Mumbai-based gold wholesaler Chenaji Narsinghji.
In July, India slashed import responsibilities on gold to 6% from 15%,. an action focused on dealing with smuggling.
Dealerships this week offered a discount rate << XAU-IN-PREM > of up to. $ 22 an ounce over official domestic costs, inclusive of 6%. import and 3% sales levies, highest in nearly two months and up. from recently's $13 discount rate.
In India, the world's second-largest gold consumer and a. major importer, domestic costs were at 73,200 rupees. ($ 872.23) per 10 grams, hovering around a record high of 74,731. rupees struck in July.
Jewellers made purchases last month when costs were ruling. listed below $2,500, and now they are waiting for a correction before. purchasing for the festive season, a Mumbai-based dealer with a. private bullion importing bank stated.
Chinese dealerships << XAU-CN-PREM > used discounts between. $ 8.6-$ 10 over global area rates, while in Hong Kong bullion was. sold in between $0.5 discount rate to $2 premium.
Chinese demand remains drab however rates are most likely to. continue rising, so people might need to eventually adjust to. them and purchases might pick up by October-November, stated Peter. Fung, head of dealing, Wing Fung Rare-earth Elements, Hong Kong.
Gold was sold between $0.8 discount rate and $2.20 premium. << XAU-SG-PREM > in Singapore.
Wealth customers made purchases this week, as prices soared. and bullion's path remained bullish, however retail and. jewellery need in the country stays muted, said Brian Lan at. Singapore-based dealer GoldSilver Central.
In Japan, dealerships offered gold << XAU-TK-PREM > at par to $0.5. premiums.
(source: Reuters)