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Eramet, a struggling miner, slumps following a 'disastrous 2025' capital increase
Eramet shares plunged by 22% in France on Thursday, after the company announced a huge drop in its annual earnings and that it was planning to sell assets and increase capital. The mining and metalurgical group announced on Wednesday a core adjusted profit of 372 millions euros ($439million), down 54% since 2024. This was due to a variety of unfavourable circumstances, from low prices to production setbacks. The company also announced that it would not pay dividends in the next two-year period, putting the shares on a course to their worst trading day ever since December 2018. Varun Sikka, an analyst from AlphaValue, said that the capital increase of 500 million euros and the possible sale of stakes were prompted by "sweeping corrective measures". This was also in response to a rise in debt. Sikka said in his research note that any improvement is unlikely without the support of recovering key end markets. The analyst added that the French government could also sponsor the cash call. Eramet has been thrown into a crisis of management after it dismissed former CEO Paulo Castellari, and suspended finance chief Abel Martins Alexandre in a matter of days.
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US automakers caught up in the crossfire of Trump and California EV battle
The legal battle between the Trump Administration and California over 'auto-pollution regulations' is about to come to a head. This will have huge financial implications for EV manufacturers including Tesla, and traditional automakers that rely on fossil fuel vehicles. California is fighting a move by congressional Republicans that would have allowed the state to implement its own emission regulations. California could force U.S. automobile manufacturers to adhere to two regulatory schemes that are diametrically opposite: President Donald Trump’s?anti EV policy, and California's pro EV regime which eleven other states have adopted. California wants automakers to be required to sell 100 percent EVs by 2035. It has set aggressive interim targets that will begin this year. Trump's administration has, on the other hand, eliminated federal EV incentives and subsidies, resulting in a nationwide crash of electric vehicle sales. California has been setting its own auto-pollution standards for decades, with bipartisan support from the federal government. During recent Democratic administrations these rules were largely in line with federal policies promoting EVs. Californian and federal regulations are now heading in opposite directions. Trump relaxed some emission regulations during his first term, only to have them reversed by Democratic president Joe Biden. In his second term, Trump has taken a scorched earth approach to federal EV assistance. Last year, Congressional Republicans eliminated a $7500 per-EV subsidy as well as penalties for automakers that failed to meet fuel efficiency standards. Trump's Environmental Protection Agency last week reversed a scientific finding from the Obama era that greenhouse gas emission endanger human safety -- which was at the basis of EPA vehicle pollution rules adopted in 2010. Trump's strategy is to end the California waiver, but California's lawsuit claims that Congress did it illegally. The federal court hearing in Oakland, California is set for Thursday. The administration has filed a motion dismissing the case. California argues that Trump's EPA, and Congress, used a sleight of hand to reclassify California’s waivers as "administrative rules" subject to reversal by the Congressional Review Act. The EPA has been stating in its California decisions for decades that the waiver "is not a rule", and the act does "not apply". This is a major point of California’s lawsuit. S&P Global Mobility, a data provider, says that if the Administration wins, traditional automakers will face less pressure to offer money-losing EVs to Californians and other states. These 11 states account for 29% (according to S&P Global Mobility) of new vehicle sales in the U.S. Tesla and other EV manufacturers could lose out on critical revenue by selling regulatory credits to automakers who use them as compliance. The California rules are a "unachievable regulatory wormhole" according to the Alliance for Automotive Innovation, an industry lobby group. The?Alliance for Automotive Innovation is an industry lobby group that argues the California rules would limit consumer vehicle choices and have called them an "unaccountable, impossible regulatory wormhole". Mike Murphy, a Republican strategist and co-founder of the advocacy group EVs for All America said that the California-federal dispute highlights how automakers are being "whipsawed by political changes that upend their models-development and production plans." Since Trump's election in 2016, automakers have written down $55 billion on their EV investments. He said, "I hear them all saying, 'This short termism is killing' us. "We've got a monkey in Washington and it makes planning very difficult." Taylor Rogers, a White House spokesperson, called California's suit "frivolous." She also said that Trump had "canceled unpopular subsidies for green energy which wasted Americans' tax dollars." CALIFORNIA RULES EMERGE IN SMOG CRISIS California set its own standards for vehicle emissions in the 1950s, as it struggled with severe air quality problems caused by industrial and automotive pollution. Los Angeles was also engulfed by thick smog. Congress gave California the authority to continue its own regulations in the Air Quality Act of 1968. The EPA was given the right to grant California a California waiver. Since then, both partisan administrations have granted California more than 100 waivers. In 2019, Trump’s EPA rescinded portions of a waiver via a formal rulemaking. This was a slower procedure that California also challenged before a federal court. In 2022, the Biden administration restored the waiver. In Trump's'second term, Republicans attempted a shortcut – killing the waiver via the Congressional Review Act. The Government Accountability Office, an independent agency which has traditionally ruled whether agencies were complying with the Act, concluded in March last year that waivers do not constitute rules, as they are a case-specific, personal determination, and not a broad application of general principles. Congressional Republicans ignored the GAO conclusion arguing that Congress had the authority to determine what constitutes a regulation. California filed suit the day after Trump signed the legislation. California Attorney General Rob Bonta said the case highlights the Trump administration's "contempt" for the law and its use of "fringe legal theories" to justify breaking it. They knew. They knew. "They did it anyway",?Bonta stated in an interview. He called the move a dangerous expansion of congressional review power. The EPA stated that "the only alleged 'contempt of the law' is California's." The agency stated that "we live in a democratic society, where Congress makes the laws", adding that Californian regulations would have "crippled American Industry" and increased consumer prices. COURT CHALLENGE LEAVES AUTOMAKERS LIMBO Many questions that have been raised in court cases have not yet been answered, so there are few case laws to guide the court's decision. Paul Libus, a Van Ness Feldman LLP attorney who specializes in'vehicle emissions policy' said: "The level and confusion of this situation is unprecedented." California's Air Resources Board has informed automakers they have the option to comply or not with their new standards. However, they are warned that if California wins in court, penalties could be imposed for non-compliance. CARB records indicate that many automakers have chosen to comply. California adopted the regulations originally in 2022 when it was projected that electric vehicle sales would take off in the United States. California faces challenges to meet its ambitious EV adoption goals, as consumer demand is waning. This raises questions about the realisticness of these targets. Last year, EVs made up 21% of new car sales in the state. This is a slight decrease from a previous year. CARB said that it would not enforce its EV sales target for this year due to the uncertainty surrounding its regulations. Murphy, a former Republican EV supporter, expects automakers will compromise with California regulators, because they can't afford to bet on Trump's rollback in pollution standards lasting beyond his administration, and they have to compete internationally. In markets such as China and Europe where regulations are tightening on vehicle emissions, EVs will be essential. He said that automakers are aware of the fact that "the drunken holidays with federal regulations is not likely to last."
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Reliance and Adani lead India's AI drive with plans to spend $210 billion
Reliance and Adani, two of India's largest conglomerates, are increasing their investments in?AI infrastructure and data. Reliance has committed about $110 billion while Adani has pledged $100 billion. Both companies want to establish India as a hub for AI. India offers tax breaks to foreign companies operating out of domestic data centres. It also takes measures to attract more AI talent. Mukesh Amani, chairman of Reliance Industries, said that cheaper computing would spur innovation. His company wants to apply the same strategy it used in 2016 to disrupt the telecom industry by slashing prices for data and expanding access. The plans were announced as executives from Google, Amazon, Meta Platforms, and Microsoft gathered at a major summit in New Delhi. This was in response to the increasing investment in India's AI ecosystem and cloud by Google, Amazon, Meta Platforms, and Microsoft. Reliance and Adani both benefit from data centres powered by renewable energy, since their own assets reduce their reliance on expensive grid power. By placing facilities near power plants, transmission losses are reduced and they're protected from rising electricity costs. Ambareesh Baliga is an independent analyst. He said that renewable-powered data centers are the most cost-effective option for companies in the long term. BETTING ON DATACENTRES India's role in the AI boom is limited, due to the lack of large-scale chip production. Data centres are the most viable entry point into the rapidly growing infrastructure market. Jio, a Reliance unit, is building multi-gigawatt AI-ready data centers, including one in Jamnagar, a western city, that is expected to add 120 megawatts in capacity by the second half of 2018. Adani Enterprises announced on Tuesday that it would invest $100 billion in data centres powered by renewable energy and AI. Aishvarya dadheech, chief investment officer and founder of Fident Asset Management, stated that Reliance is aiming to build an integrated AI stack in India. However, execution and monetisation are still key risks. $1 = 91.0870 Indian Rupees
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Investors react negatively to Fed minutes as TSX futures decline
Gold and oil prices rose on Thursday as investors assessed the minutes of the U.S. Federal Reserve. As of 5:30 a.m., March futures for the S&P/TSX 'composite index' had fallen 0.37%. ET. Toronto's benchmark stock index rose 1.5% on Tuesday as shares in technology companies rebounded following a easing of concerns about AI disruption. Miners also gained due to the strength of precious metals. In their January meeting, Federal Reserve policymakers had a split opinion on the next steps. "Several" were open to rate increases if inflation remains high and others would support more cuts if it declined as expected. Further clues on the Fed's policy trajectory will be provided by the weekly jobless claims report due later today, as well as the Personal Consumption Spending report, the Fed's preferred measure of inflation. Apple, Nvidia, and Meta Platforms all traded lower in premarket trade as the focus shifted back to AI concerns. The spot price of gold rose 0.1% on Thursday and the silver price increased 1.4%, amid tensions between Iran and the U.S. On Wednesday, the White House stated that although some progress had been made in talks with Iran earlier this week at Geneva, there was still distance on certain issues. Satellite images have shown Iran strengthening and repairing military sites. Brent futures, and U.S. West Texas Intermediate - Crude rose more than 1%. Nutrien, a fertilizer manufacturer, missed its quarterly profit forecasts due to lower crop nutrients volumes in the after-market earnings on Wednesday. Teck Resources and Kinross Gold, among other miners, beat their quarterly profit estimates. CLICK CODES TO GET CANADIAN MARKETS NEWS TSX Market Report Canadian Dollar and Bond Report Global Stocks Poll for Canada Canadian Markets Directory (Reporting and Editing by Krishna Chandra Eluri; Reporting by Utkarsh T. Hathi)
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Teck Resources' quarterly profit beats expectations on the back of higher copper prices and output
Teck Resources surpassed fourth-quarter profits expectations on Thursday. The Canadian miner was helped by a surge in production and copper prices as it advanced its merger proposal with Anglo American. The beat highlights Teck's increasing reliance on copper, a key metal for electrification and the energy transition, as the company works towards completing a merger which would make it one of the largest producers of copper in the world. Teck and Anglo shareholders approved the merger in December. This paved the way for a "copper heavyweight" and left regulatory approvals to be the final hurdle. Teck and Anglo announced their merger plans in September. The $53 billion deal would be a stock-only, no-premium merger. This would result in the fifth largest copper producer in the world. Both companies have been undergoing significant restructuring over the past few years, largely due to previous takeover attempts. Teck reported that realized copper prices increased 22.5% to $5.11 a pound in the fourth quarter, while production increased nearly 10% to 134,000 tonnes. The company stated in a statement that "Copper production increased when compared with the same period of last year, supported by higher throughput, grades, and throughput at?Highland Valley Copper. Antamina also produced higher grades, and Carmen de Andacollo had a higher throughput." The company developed its tailings facility, which improved production at the Quebrada Blanca mine (QB). The fourth quarter copper output at QB reached 55,400 tonnes, a lower figure than last year but the highest quarterly performance since 2025. According to LSEG, the miner reported adjusted earnings per share of C$1.37 for the 'quarter ended December 31. This was above analysts' average estimates of 91 Canadian cents. Teck's copper production forecast for 2026 was kept at 455,000 to 530,000 tons. (Reporting by Arunima Kumar in Bengaluru; Editing by Shreya Biswas)
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As AI fears fade, tensions between the US and Iran simmer but global stocks remain flat.
European stocks fell from a record-high on Thursday, and U.S. Futures?flatlined? as fears of AI disruption abated. However, tensions between Iran and the United States kept markets 'on edge' and supported oil and gold prices. The U.S. dollar found its footing overnight after the minutes of the Federal Reserve meeting revealed that policymakers are not in a hurry to reduce rates. The STOXX 600 Index in Europe fell 0.24% after Airbus and Rio Tinto reported their earnings. The index reached a new record on the previous day, as investors were able to shake off concerns about AI disrupting businesses with a rally of banking and defence shares. The futures of the U.S. S&P 500 index and tech-focused Nasdaq index were not much different. The MSCI index of Asian-Pacific Stocks excluding Japan rose by 0.38% despite the fact that trading was light as markets in Hong Kong and China were closed for Lunar New Year. The US economy is resilient Chris Turner, global director of?markets for ING, said that risk assets are generally OK. He said, "The Fed is talking about an economy that's resilient in the U.S. and good for global economic growth." "Equities are doing well in Asia." Wall Street rose on Wednesday,?driven by Nvidia's announcement that it had signed a multiyear agreement to sell millions of artificial-intelligence chips to Meta Platforms. We needed some good news. "I think there's been a general sense of malaise among the tech industry," said Tony Sycamore. He was referring to a sharp selloff that occurred earlier this month. He said Nvidia could potentially save U.S. stock prices when it reports earnings next Monday. FOCUS ON GEOPOLITICS, FED AND FEDERAL IMPROVEMENT Oil prices continued to rise after a surge in the previous session as investors priced potential supply disruptions due to fears of a war between the U.S. The?New York Times, CNN and other U.S. media outlets reported on the building up of American forces in the area of Iran. However, they stressed that President Donald Trump has not yet decided what course of action to take. Brent crude oil futures rose 1.5% to $71.42 per barrel, the highest level since late January. They had risen 4.4% during the previous session. U.S. crude oil rose 1.6% to $66.26. Michael Every, senior strategist at Rabobank said that the balance of risks is now tilting towards a U.S. attack after Friday's market close. He added that such an attack would likely last for weeks, rather than being "over by Monday morning". Gold, which is traditionally considered a safe haven, increased by 0.8%, to $5,017 per ounce. The dollar fell after rallying on the back of better than expected U.S. data. Minutes of the Fed’s January policy meeting also revealed that several policymakers are open to raising rates if inflation continues to rise. The 'dollar index, which measures the currency in comparison with six major peers, fell 0.11% last after gaining?0.59% Wednesday. Charlie Ripley is a senior investment strategist with Allianz Investment Management. He said, "From our perspective the minutes of the Federal Reserve confirm our belief that rate reductions are off the table in the near future." "Policymakers noted specifically that disinflation may be on a slow path." Reporting by Harry Robertson, Rae Wee and David Holmes in Singapore. Editing by Kim Coghill and Shri Navaratnam.
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Gains in refining for energy group Orlen offset impairment losses, lifting shares
Orlen, a Polish energy group, reported adjusted core earnings higher than expected on Thursday. This was helped by a stronger downstream result which overshadowed the?net profit miss caused?by asset impairments as well as lower oil and natural gas prices. The shares rose 2.2% as of 0849 GMT. This boosted Poland's blue chip index WIG20 which rose by 0.5%. Analyst Tamas Pelser at?Erste Group said that the 4Q25 period was a positive one for the Polish energy giant, highlighting "the very strong contribution" of refining in a margin-friendly environment. Orlen's model refinement?margin increased in the fourth quarter, as sanctions and Ukrainian drone strikes on Russian infrastructure curbed diesel exports. This boost in downstream prices cushioned the impact of a wider commodity slump. Brent crude fell nearly 15%, and gas prices have fallen from their highs of last year. EBITDA LIFO (earnings before interest, tax, depreciation, and?amortisation) adjusted for the value of inventories and impairments fell 15% in the third quarter to 12.15 billion Zlotys ($3.40billion), but still beat the analysts' consensus estimate of 11.4 billion Zlotys. Orlen's net quarterly profit of 3,13 billion zlotys was below the 4.8 billion expected by the analysts polled before the results were published. In the fourth quarter report, net impairment losses totaling 3.34 billion zlotys were recorded on non-current assets. The fourth-quarter report showed a net impairment loss of 3.34 billion zlotys on non-current?assets. Orlen announced that it would spend?36.3 zlotys on capital expenditures in 2026. This is up from 32.6 zlotys spent last year. The first Polish offshore wind farm will be completed this year on the Baltic Sea. A gas-fired energy plant is also planned for the northern city of Grudziadz.
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At the AI summit, tech majors pledge billions to India
This week, senior executives from artificial intelligence companies around the world joined world leaders for an AI summit in?India. Here is a list of the major deals that were struck during the India AI Impact Summit in New Delhi. JIO INVESTS $110 BILLION IN INDIA'S RELIANCE INDUSTRIES Mukesh Ambani, the billionaire chairman of Reliance Industries, said that Jio and Reliance Industries will invest $109.8 Billion over the next seven-year period to build artificial intelligence infrastructure and data infrastructure. INDIA'S ADANI GROUP WILL COMMIT $100 BILLION?FOR AI-DATA CENTRES THROUGHOUT 2030 Adani Group, a port-to-power company, announced on Tuesday that it would invest $100 billion in renewable energy AI data centres powered by 2035. Adani stated that it is expected that the investment will trigger $150 billion in additional investments across related industries including server manufacturing, cloud platforms and sovereign cloud. It added that this would create an ecosystem of $250 billion in AI infrastructure for India within the next decade. MICROSOFT?TO INVEST 50 BILLION DOLLAR IN THE 'GLOBAL SURF' BY 2030 Microsoft announced on Wednesday that it will invest $50 billion in the next decade to expand AI across 'Global South countries'. Last year, the firm announced $17.5 billion in AI investments to India. YOTTA, AN INDIAN DATA CENTER FIRM, COMMITS TO $2 BILLION FOR AI HUB Yotta Data Services announced on Wednesday that it would build one of Asia's biggest AI computing hubs, using Nvidia Blackwell Ultra chips. The project will cost more than $2 billion. INDIAN EXPORTER OF IT SERVICES TCS SIGN OPENAI AS A DATA CENTER CUSTOMER Tata Consultancy Services announced on Thursday that it had signed up OpenAI, parent company of ChatGPT, as its first customer under Stargate's global AI infrastructure initiative. INDIA’S L&T AND?NVIDIA WILL BUILD THE LARGEST AI FACTORY IN INDIA Infrastructure giant Larsen &Toubro announced a joint venture with Nvidia. The two companies will work together to develop AI-ready data centres, advanced computing platforms and ecosystem enablement to support large AI workloads. (Reporting by Nandan Mandayam in Bengaluru; Editing by Raju Gopalakrishnan)
Copper prices rise after China's stockpiling plans revealed
The copper price in London rose on Friday and hovered near the psychological $10,000 mark, following a report by media that China intends to increase its strategic reserves this year of key industrial materials including cobalt.
Bloomberg News reported that the National Food and Strategic Reserves Administration (NFSRA), which manages official commodity stockpiles and inquires about prices and bids for metals, did so without providing details on volume or timing.
As of 0303 GMT, the benchmark three-month price for copper at the London Metals Exchange was up by 0.3%. It now stands at $9,970 per metric ton.
A trader stated that the lack of specifics in the news about strategic metals buying has had little impact on today's metals prices.
The dollar strengthened, helped by the U.S. Federal Reserve saying that it has no immediate intention to lower interest rates.
After gaining 0.36% Thursday, the dollar index increased by 0.03 at 0238 GMT to 103.82.
The dollar price of metals increases when purchased with other currencies.
LME aluminium increased 0.3% to $2.666 per ton. Lead was up by 0.1% at $2.057.5. Zinc gained 0.5% at $2.932. Tin was down by 0.1% at $35,310. Nickel price fell 2.0% to $16,240.
SHFE copper rose by 0.2%, to 81.540 yuan (11,252.64) a ton. SHFE aluminium was unchanged at 20,845 Yuan a ton. Zinc increased 0.6%, to 23.895 Yuan. Lead was down 0.5%, to 17.590 Yuan. Nickel lost 0.3%, to 129.890 yuan. Tin rose 1.0% to 281,620 Yuan. (1 Chinese Yuan = 7.2463 Chinese Renminbi)
(source: Reuters)