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Alteia, a French AI company, will be acquired by GE Vernova for the purpose of enhancing AI tools in utilities
GE Vernova, a maker of power equipment, announced on Monday that it would buy Alteia in France, a company that makes artificial intelligence tools for utility companies. GE Vernova offers Alteia software through GridOS Visual Intelligence. The tool allows utilities to assess damage along electrical lines and inspect assets. GE Vernova stated that the acquisition would enhance the system by providing visual and operational data. This will allow the companies to “see and feel” the grid. The financial terms of the purchase, which is expected on August 1, were not disclosed by the company. Christopher Dendrinos, an analyst at RBC Capital Markets, said that GE Vernova had highlighted the fact that growth could accelerate in its electrification-software segment, which includes GridOS. He said that the segment has grown at single-digit percentage rates over the last two years. GE Vernova has seen its stock rise since it was spun-off from General Electric in 2017. The surge in power demand for data centers that use AI and cryptocurrency technologies is a major factor. This year, the power demand will be at an all-time peak. The company will release its second quarter earnings report before the bell on July 23, 2018. (Reporting and editing by Sahal Muhammad in Bengaluru, with Sumit Saha from Bengaluru)
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Due to repairs, Nornickel has cut its nickel and palladium production forecast for 2025.
Russia's Nornickel, one of world's biggest nickel producers, and the largest palladium producer, lowered Monday its 2025 nickel forecast to 196,000-204,000 tons. The previous guidance was 204,000-211,000 tonnes. The company has also revised down its palladium production forecast, expecting now between 2.677-2.729 million pounds compared to the previous 2.704-2.756,000 pounds. In a press release, Nornickel Senior Vice President Alexander Popov stated that "a series of major repairs are scheduled for the second part of the year in order to improve the reliability and operation of new mining equipment substituted by imports." The forecasts for nickel, copper and platinum group metals are virtually unchanged compared to the previous forecasts. The copper production is forecast to be between 343,000 and 355,000 tons instead of the previous range of 353,000-373,000. Nornickel has also released its operational results for the second quarter. The nickel production was 45,000 metric tonnes, an increase of 9% on the previous year, while palladium production reached 658,000 ounces. This is a 11% decrease. (Reporting and writing by Anastasia Lyrchikova; editing by Mark Trevelyan).
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As dollar and yields are easing, gold gains more than 1%.
Gold prices rose over 1% Monday, as the dollar and U.S. bonds yields fell amid uncertainty about trade talks in advance of an August 1 deadline for U.S. countries to reach agreements or face additional tariffs. At 9:52 ET (1350 GMT), spot gold rose 1.2% to $3,390.79 an ounce. U.S. Gold Futures rose 1.3% to $3.402.40. The U.S. Dollar Index was down by 0.4%. This made dollar-denominated Gold more affordable to buyers who use other currencies. Meanwhile, benchmark yields on 10-year U.S. Treasury notes hit a record low. David Meger is director of metals futures at High Ridge Futures. According to EU diplomats, the European Union is looking at a wider range of counter-measures that could be taken against the United States as prospects for a trade agreement acceptable with Washington are fading. According to the CME FedWatch tool, traders have priced in a 63% probability of a rate reduction in September. U.S. Treasury secretary Scott Bessent stated that the Federal Reserve as an institution needed to be examined and whether or not it was successful. Meger says that speculation about a rate cut earlier than expected in the U.S. is increasing, and that speculations around a possible Fed Chair Jerome Powell replacement or reshaping the Fed are adding to market anxiety. Gold is a hedge for uncertainty, and it tends to do well in an environment with low interest rates. China, the largest gold consumer in the world, imported 63 metric tonnes of the precious metal during the month of June, the lowest since January. In June, its imports of the precious metal fell by 6.1% compared to the previous month. Silver spot gained 1.8%, to $38.86 an ounce. Platinum rose 2.2%, to $1,453.17, and palladium rose 3.5%, to $1,284.46. Reporting by Sherin E. Varghese in Bengaluru and Ashitha S. Shivaprasad, Editing by Mark Potter
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New EU Russia curbs could increase Indian oil refiners’ reliance on traders
After the latest round European Union sanctions, Indian private refiners who have used cheap Russian crude in order to boost their margins will need to find ways to work around it and depend more on traders for finding new markets for products. In recent years, refiners like Reliance Industries or Nayara Energy have benefitted from the pressure that sanctions imposed on Russia's crude oil prices due to its invasion in Ukraine. Many of these refiners have exported their refined products to European buyers. In its 18th package against Russia, which was approved on Friday by the European Union, it banned imports from third-country refiners of petroleum products derived from Russian crude, except for a few Western nations. The sanctions also target Nayara Energy (a Russian refinery owned by Rosneft), a major oil company in Russia. The package will be implemented over a six-month period. In the first seven month of this year, LSEG data on ship tracking showed that Reliance was India's biggest buyer of Russian oil products and refined products. It shipped 2.83 million barrels per month of diesel fuel and 1.5 million barrels per month of jet fuel to Europe. This accounted for roughly 30% and 60% respectively of its exports of both products. Nayara Energy exports 4 million barrels of refined products per month including jet fuel, diesel, gasoline, and naphtha, but only jet fuel is typically shipped to European markets. Sources said that under the sanctions, traders will likely play a larger role in the placement of refined products made with Russian crude. They will likely get creative in their routes due to the long transition period. Singapore traders have said that traders will likely swap Indian diesel with Middle East cargoes to export to Europe. The traders said that they may also send Indian cargos to floating storage in the Middle East and West Africa for re-export. They said that Indian refiners could either divert jet fuel cargoes into local markets or ship supplies in Asia. Reliance and Nayara didn't immediately respond to comments. A trader in Asia said that the changes would benefit traders, as they will generate more trade, but be costly to producers and consumers. He added that Europe may be forced to pay more for refined fuel as winter approaches. Nayara condemned in a Monday statement the EU’s “unjust and unilateral” decision to impose sanction on the company. India, on the other hand, said that it did not support "unilateral" sanctions by the EU. Refining sources say that Indian refiners who also purchase Russian crude are less likely to be affected by sanctions, as they sell the majority of their fuel locally, and export it through tenders to buyers mainly in Asia, such as Singapore. Mangalore Refinery and Petrochemicals Ltd, an Indian state refinery, said that the latest sanctions would not affect the diesel exports of the company. LSEG reports that traders have sold some of MRPL’s diesel parcels to the UK in recent months. "We do not directly sell diesel to our end customers." The trader picks it up after a tendering procedure," said M Shyamprasad Kamath, managing director of M Shyamprasad Kamath. He added that he doesn't see any problems with selling refined fuels because of the sanctions. A tender document obtained by revealed that Nayara Energy, in response to the EU sanctions, amended the terms of the naphtha bid issued on Monday, requiring payment in advance.
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Wimbledon expansion plans cleared by UK court following challenge
Wimbledon's plans for expanding the grounds of the oldest and most prestigious Grand Slam Tennis Tournament in the world overcame their first legal hurdle Monday. The London High Court dismissed a challenge by campaigners to the project. Save Wimbledon Park, a campaign group, has taken legal action against the All England Lawn Tennis and Croquet Club. The AELTC wants to triple the size of the main site with a project worth 200 million pounds ($269.6 million). The expansion will feature 39 new courts including an 8,000 seat show court. This could increase the daily capacity from 42,000 people to 50,000 and allow for qualifying rounds to take place on site. Novak Djokovic and local residents have backed the AELTC’s plans to develop an old golf course that it owns. The Greater London Authority approved planning permission last year. However, Save Wimbledon Park claimed at an hearing held this month that GLA did not properly account for restrictions on the redevelopment of the land agreed upon when AELTC’s parent company purchased the freehold golf course in 1993. Save Wimbledon Park was unsuccessful in its challenge of the legality of the planning permission. However, Wimbledon's plans will still have to overcome a second legal hurdle regarding the status of land. This case is scheduled for hearing early next year. AELTC Chair Debbie Jevans expressed her delight at the ruling and said that the club would "now turn its attention to separate legal actions" regarding the former golf course property. Save Wimbledon Park's director Christopher Coombe announced that the group would appeal Monday’s decision. He said it would set a "worrying precedent" for the development of public open space and protected greenbelt.
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Russia-backed Indian refiner condemns EU restrictions, weighs legal options
Nayara Energy, a Russian-backed refiner in India, condemned Monday the European Union sanctions against it and said that it was exploring its legal options to combat the latest "restrictive" measures. The EU approved Friday its 18th package against Russia for its war in Ukraine. This includes sanctions on Nayara Energy - a refinery owned by Rosneft, the Russian oil giant. In a press release, it stated that "Nayara Energy condemns strongly the European Union’s unjustified and unilateral decision to impose restrictions on our company." Rosneft owns 49.13% of Nayara, and a similar amount is held by Kesani Enterprises Co Ltd., a consortium led by Italy's Mareterra Group, and Russian investment group United Capital Partners. Nayara asserted that the EU's latest sanctions were "without legal basis". The company has invested more than 800 billion rupees (about $8 billion) in projects such as petrochemicals, and expanding its retail fuel stations. It said: "We categorically declare that this unilateral action by the European Union rests on baseless claims, and represents an unwarranted extension of authority which ignores international law as well as the sovereignty of India." India has stated that it does not support the "unilateral sanction" of the EU.
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Brazil admits that it is possible there will be no US-Brazil trade deal before August 1
Brazil's Finance Minister said on Monday that his country will not give up on negotiations with the U.S., but acknowledged that it may not be possible to reach a deal by August 1, which is when President Donald Trump’s tariffs of 50% on Brazilian products are set to come into effect. Fernando Haddad, in an interview with CBN radio station, said that Latin America's biggest economy is still waiting for a response from Washington to trade proposals originally submitted in May. Trump announced the steep tariffs in early this month. He cited what he called "a witch hunt" against Jair Bolsonaro - a former Brazilian president who is currently on trial for plotting a coup - and unfair trade practices. Haddad said Brazil has contingency plans for dealing with potential tariffs and that it could redirect more than half of its current U.S. imports to other markets. He warned, "But it would take some time." U.S. officials claim that the threat of tariffs is unjustified because the U.S. has a surplus in trade with Brazil. This includes oil, steel, coffee, aircraft, and orange juice. Trump's decision would have a major impact on companies such as Embraer which has the U.S. market as its primary market. Haddad stated that the Brazilian government might need to support sectors most affected by tariffs but stressed such measures wouldn't necessarily result in higher primary spending. Haddad said on Monday that Brazil will not punish U.S. firms operating in Brazil if the tariffs are implemented as promised. The minister stated that "we cannot pay in kind what we consider unfair." (Reporting and editing by Sharon Singleton and Bernadettebaum; Dale Hudson, Sharon Singleton and Bernardo Caram)
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EU retaliation plans intensify as prospects for a US tariff deal dim
According to EU diplomats, the European Union is looking at a wider range of countermeasures that could be taken against the United States. This comes as the prospects for a trade agreement between Washington and Brussels are fading. Diplomats report that a growing number of EU member states, including Germany are considering the use of wide-ranging anti-coercion measures, which would allow the bloc to target U.S. service providers or restrict access to public procurements in the event of no deal. The European Commission (which negotiates trade deals on behalf of 27 member countries) had seemed to be on track for an agreement where the EU would have still faced a 10% U.S. duty on most of its exported goods, but with some concessions. These hopes seem to have been dashed following President Donald Trump’s threat to impose 30% tariffs by August 1 and the talks between EU Trade Commissar Maros SEFCIOVIC and U.S. counterparts last week in Washington. Sefcovic has stated that a 30% tariff will "practically prevent" transatlantic trade. He delivered a sobering report to EU envoys about the current situation on Friday. The EU diplomats said that the U.S. counterparts came up with different solutions during their meetings, such as a base rate of well over 10%. Each interlocutor had a different idea. One diplomat stated that no one could tell what (Sefcovic), would work with Trump. The chances of the United States reducing or eliminating their 50% tariffs on aluminum and steel, and their 25% tariffs on cars and auto parts are limited. 'NUCLEAR OPTION' Washington also rejected the EU demand for a "standstill", whereby no tariffs will be imposed following a deal. Diplomats claim that Trump cannot be restrained on national security issues, which is the basis for Section 232 investigations into timber, semiconductors and pharmaceuticals. EU diplomats report that the mood among EU member states has shifted, and that they are now more prepared to react - even though a negotiated resolution is their preferred solution. The EU currently has a package of tariffs that are suspended until the 6th of August. It is based on goods from the United States worth 24.5 billion dollars or 21 billion euros. The EU still has to decide on another set of countermeasures for 72 billion euro of U.S. imports. The EU has also been discussing the use of its "anti-coercion instrument" (ACI), which allows it to take retaliatory action against third-country countries who put economic pressure on their member states to alter their policies. If the EU were to focus more on China, this would allow it to target the trade of U.S. financial services and public tenders, where the U.S. enjoys a surplus in trade with the EU. The EU's public procurement is valued at around 2 trillion euro per year. Other possible measures include restricting U.S. investments, limiting protection of intellectual properties rights and imposing restrictions on the sale of U.S. food or chemicals in Europe. France has always backed the ACI. Others have resisted what they see as a nuclear alternative. Trump has threatened to retaliate against other countries who take action against the United States. Ursula von der Leyen, President of the European Commission, said last week that ACI was designed for situations beyond normal. She added: "We're not there yet." It would require a majority of 15 EU countries, which represents 65% of its population, to be able to use it. Diplomats in the EU say that it would only do this if it were confident it could pass it. However, there are signs that support is growing, and Germany is one of those countries who have said it should be taken into consideration. Reporting by Philip Blenkinsop & Andrew Gray. Andrew Heavens, Mark Potter and Andrew Heavens edited the article.
VinFast's Q1 losses grow on higher spending and increased deliveries
VinFast, a Vietnamese electric vehicle manufacturer, reported a net loss for the sixth consecutive quarter on Monday as it continues to increase spending in order to boost sales.
VinFast has reported a loss of $712.4 millions for the first three months. This is less than the $1.3billion loss from the previous quarter, but 15% higher than one year ago. According to LSEG, the average analyst forecast was a loss of $616.3 millions.
The revenue jumped by 150%, to $656.50 million between January and March. This compares with the analysts' estimated average of $520.50 million.
The quarter saw a nearly 300% increase in deliveries, reaching 36,330 cars, mostly due to sales in Vietnam, the biggest market.
VinFast, backed by Vietnam's biggest conglomerate Vingroup, continues to face challenges because of weak consumer demand, stiff competitors, and the 25% tariff that the U.S. imposed on imported cars. VinFast had previously identified the U.S. market as a major growth market.
VinFast's gross margin was minus 35.2% for the first quarter of this year, compared to minus 58.7% one year ago.
VinFast Chairman Thuy Le said: "Despite Q1 being typically our slowest quarterly, deliveries in the first quarter 2025 were higher than our total deliveries during the first half of the previous year. This is an encouraging start for 2025 despite the global uncertainty."
The company is intensifying its promotional efforts in the United States, switching to a dealership-based model instead of its expensive showrooms. It has also shifted its focus towards Asia with a new assembly plant set to open in India in July.
The company said that the costs of sales had more than doubled in the first three months compared to the previous year.
VinFast has been losing money every quarter since its IPO in August 2023. Its founder and CEO Pham Nhat Vuong, and Vingroup have provided financial support of around $2 billion as of May.
Third Bridge, a research firm, noted in a report on pre-earnings that "while its VF3 compact SUV is driving volume sales, the company still loses money on each car it sells."
It said that "the bill of materials" was estimated to be higher than Tesla's and BYD's, in part because VinFast lacked scale and paid a premium to its suppliers who were wary about the company.
VinFast's shares rose by 14.04% before the market opened.
In the third quarter, the company announced that it would launch its next-generation platform as well as an electrical architecture for the Limo Green model. The existing EVs will be supported by this platform next year. Reporting by Phuong nguyen from Hanoi, and Akash Sriram from Bengaluru. Shinjini Ganuli and Mark Potter edited the article.
(source: Reuters)