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Media reports: 3 killed in blast at Los Angeles Sheriff's office
Fox News and the local media reported that three deputies were killed in an explosion at a Los Angeles County Sheriff's Department Training Facility, although officials have yet to confirm any deaths. A spokesperson from the Los Angeles Sheriff's Department confirmed an explosion at the Biscailuz Academy Training in East Los Angeles. The spokesperson stated that the cause of the explosion was still under investigation, and they had not yet confirmed any injuries or deaths. The Los Angeles Times, citing anonymous sources, reported that an explosives squad was moving explosives at the time of the explosion. U.S. attorney general Pam Bondi posted on social media about her conversation with U.S. attorney for the Central District of California Bill Essayli, "about what seems to be an horrific incident which killed at least three people at a training facility for law enforcement in Los Angeles." Bondi stated that federal agents are at the scene to find out more. Reporting by Maiya Kiedan and Bhargav Acharya; editing by Frank McGuire
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In Nigeria's Zamfara State, bandits kill six and kidnap more than 100.
Residents and a local legislator said that gunmen attacked the Kairu community, located in northwest Zamfara, Nigeria, and killed six people. They also abducted over 100 other people, including women, children and elderly. Zamfara has been the epicenter of attacks by heavily armed men known as bandits in Nigeria. They have caused havoc in Nigeria's northwestern region in recent years. They have kidnapped thousands of people, killed hundreds, and made it dangerous to travel on roads or farms in certain areas. Abubakar Isa told Abubakar Isa by phone that the bandits attacked Kairu at 1040 GMT, shooting indiscriminately. His wife had been abducted. Hamisu Faru is a local legislator who confirmed the attack, saying that the attackers took "no less than 100 people including women and children". Faru told me by phone that they were searching from house to house and abducting people. Mohammed Usman, another resident, stated that the attackers besieged the town for almost two hours before capturing their captives. He said that thousands of people have fled the village. Zamfara Police did not immediately respond to requests for comment. Reporting by Elisha Gbogbo, Editing by Mark Potter
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South Africa announces its assets gains as it concludes the G20 Finance Meeting with a communique
The rand, government bond and stock prices of South Africa rose on Friday, as investors considered the country's hosting of the two-day Group of 20 Finance Meeting, where participants agreed to a final communiqué, the first such meeting since October 2024. South Africa has promoted an African agenda under the motto of its presidency "Solidarity Equality Sustainability". Topics include high capital costs and funding climate change actions. The communique shows that the G20 finance leaders are in agreement on some issues. The rand was trading at 17.7050 per dollar against 1503 GMT. This is up approximately 0.6% from Thursday's closing. Johannesburg's Top-40 Index was up last by 1.5%, and the All-Share Index up 1.4%. Both are hovering at all-time highs. Anchor Capital stated in a recent research note that mining stocks were a major contributor to the local stock market. Gold Fields shares were up last by 2%. Harmony Gold was up 1% and Sibanye Stillwater rose 4%. As they signed the communiqué, the G20 finance and central bank ministers stressed the importance to multilateralism and independence of the central banks. This was ahead of the deadline set by U.S. president Donald Trump for tariffs on country-specific products. Next week, domestic investors will focus on South Africa’s leading business cycle indicator for May and the June consumer inflation figures to get clues about Africa's largest industrialised economy. ETM Analytics stated in a recent research note that "(Inflation data), is unlikely to have much of an impact on the performance of the ZAR as the rate markets are already pricing out the prospect of a second rate cut." The yield on the benchmark 2035 South African government bond fell by 1.5 basis points, to 9.945%. Reporting by Sfundo parakozov. (Editing by Joe Bavier, Mark Potter and Mark Potter.)
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G20 communique: main points and omissions
G20 finance chiefs issued a communiqué on Friday, which emphasized the importance of central banks' independence and the World Trade Organization's role in advancing trade. The following are the main points that the finance ministers, central bank governors, and other participants agreed upon during the two-day Durban meeting, South Africa. Also, we list the policy areas that were left out. Global Economy and Trade The communique highlighted global economic uncertainty caused by conflict, trade tensions and supply chain disruptions. It also highlighted high debt levels and frequent extreme weather and natural disasters. The statement also stated that central bank independence was crucial in achieving price stability. COOPERATION MULTILATERAL The chiefs of finance emphasized the importance of multilateral collaboration, recognising that the World Trade Organisation plays a key role in advancing issues of trade and maintaining rules agreed upon as part of the global system of trading. They acknowledged that the WTO faces challenges and called for "meaningful reform" The finance chiefs stated that they were committed to addressing the debt vulnerability in low-and middle-income countries. This included a commitment to strengthen the G20 Common Framework implementation in a "predictable and timely manner" and in an orderly and coordinated fashion. The G20 Common Framework was launched in late 2020. It is a platform designed to allow debt restructuring on an individual basis, and help overstretched nations get back on their feet. The progress is slow. The communique stated that "we further call for enhanced transparency of debt from all stakeholders, private creditors included." Omissions The communique did not mention climate change explicitly, but it did refer to "extreme weather and natural disasters". The communique also did not mention the Russian invasion of Ukraine - a longtime source of disagreement for the group - nor the conflict between Israel and Hamas on Gaza. The communique instead mentioned "ongoing conflicts and wars" without providing any further details. The word "tariff" did not appear in this communique. Instead, it referred to the "trade tensions." Reporting by Olivia Kumwenda Mtambo, Editing by Mark John & Hugh Lawson
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Chevron wins arbitration against Exxon over Hess deal, according to analysts.
Chevron is moving forward with its acquisition of Hess for $53 billion after winning a landmark court battle against Exxon Mobil, allowing it to access the largest oil find in decades off of the coast of Guyana. KIM FUSTIER HEAD OF EUROPEAN OIL & GASOLINE RESEARCH HSBC Hess has helped Chevron grow from a company producing 3.3 million barrels per day (bpd), to one that produces 4.2 million, which is not far behind Exxon's 4.5 million. In contrast, the failure to close Hess had negative consequences. It would have increased the gap between Exxon and Chevron, raised doubts about Chevron's management, and raised the question of the need for other M&A acquisitions in order to replace Hess. ALLEN GOOD, MORNINGSTAR ANALYST We view the outcome as positive for Chevron given the size and quality of the Guyanese asset. We don't see the ruling as negative for Exxon. Their ultimate goal was to deny Chevron access, or secure a favorable ruling that could be used elsewhere, not to acquire the assets themselves. AJAY PARMAR IS THE OIL AND ENERGY TRANSITION ANALYTICS DIRECTOR OF CONSULTANCY ICIS The U.S. oil giant's victory in the arbitration case over the Guyana oil assets is a major win. It opens the door for the acquisition of Hess, which will strengthen Chevron’s upstream presence across Guyana, Canada and U.S. On-shore... We expect the company to further strengthen its portfolio in the coming years. BIRAJ BORKHATARIA, ANALYST AT RBC CAPITAL MARKETS We expect Chevron shares to outperform in the next few weeks, now that investors are more confident about the investment case. They can also focus on the growth of Hess assets and the free cash flow inflections into 2026-2027. Chevron will likely review its synergy targets at (Capital Market Day), which is scheduled for November 12th. Chevron plans to dig deeper into the company's longer-term goals. JASON GABELMAN ANALYST AT TD COWEN Chevron said when it announced the deal that eight assets (Guyana GOA Australia TCO Permian DJ Bakken Eastern Med) were core. This is not clear if it still holds true, as some may see the Bakken area as a potential divestiture candidate. "Chord Energy, Devon Energy and other companies have been acquiring in the basin. We expect Chevron to be interested in future opportunities as a consolidator and/or divesting." PHILLIPS JOHNSTON, ANALYST AT CAPITAL ONE SECURITIES The ruling ends a 16-month saga which began in March 2024 when Exxon attempted to block the merger deal. Since the first announcement on October 23, 20,23, Hess's total shareholder return has been -6.6%, compared to -2.2% for Chevron and +7.7% for Exxon (all before today's trading). Reporting by Seher Daeen, Vallari Srivastava, and Pooja menon in Bengaluru. Editing by Louise Heavens & Frances Kerry.
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Gold gains as safe-haven on the back of global uncertainty and a weaker dollar
Gold prices increased on Friday, as a weaker dollar and the ongoing geopolitical uncertainty and economic instability boosted demand for this safe-haven. Platinum prices fell after reaching their highest levels since 2014. Gold spot rose 0.5%, to $3,353.80 an ounce at 0947 am EDT (1347 GMT) after dropping 1.1% the previous session. U.S. Gold Futures also rose 0.5%, to $3360.50. Edward Meir, Marex analyst, said that the weaker dollar has led to gains in the precious metals sector. We do not think that gold is a good investment over the medium term, given the current situation, which includes out-of control U.S. expenditure, trade tensions lingering, inflation uncertainty, and the constant Fed bashing. The dollar fell 0.5% on the day. Gold tends to be cheaper for buyers who hold other currencies when the dollar is weaker. Trump stated earlier this week that he did not plan to fire Federal Reserve Chairman Jerome Powell. He left the possibility open, but he also renewed his criticisms of Powell for not lowering the interest rates. Market participants expect two U.S. interest rate cuts totaling 50 basis points by the end this year. The gold market thrives in times of economic uncertainty. Lower interest rates also boost demand, as gold is a non yielding asset. Indonesia is still working out the finer details of the trade agreement it recently signed with the United States. Janet Yellen, the U.S. Treasury secretary, told Japan's Prime Minister that both countries could reach a "good deal". After reaching its highest level since August 2014, spot platinum dropped 0.7% to $1.448.03 an ounce. Palladium rose 0.7% to $1.289.50 - its highest level since June 2023 - and silver increased 0.5% to $35.31. BullionVault's head of research, Adrian Ash, said that the precious metals market has moved from gold, a safe haven, to silver, palladium, and platinum as industrial, pro-growth alternatives. (Reporting from Sarah Qureshi, Bengaluru; additional reporting by Ashitha Shivprasad. Editing by Tasimzahid)
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Reliance's profits top estimates for energy business rebound
Reliance Industries, owned by Indian billionaire Mukesh Amani, beat expectations for its quarterly profit on Thursday, thanks to strong growth in the company's energy, retail, and digital services businesses. According to LSEG, the combined profit for the quarter ending June 30 was 269.94 billion rupees (3.14 billion dollars), a 78.3% increase over analysts' estimates of 198.59 trillion rupees. Reliance’s oil-to-chemicals division, which accounts for 57% of the company’s revenue, has been under pressure over recent quarters due to a decline in transportation cracks, and a sluggish petrochemical demand. The oil-tochemicals segment, however, has benefited from an improvement in domestic fuel retail margins. The oil-tochemicals business saw its earnings before interest, taxes and depreciation increase 10.8%, to 145.11bn rupees. EBITDA for its digital services, which include telecom unit Jio jumped by 23.9% compared to a year ago, while EBITDA for the retail segment grew by 12.7%. Reliance Retail, Jio and the Energy business had helped Reliance to offset the weakness in its earnings for the six-month period ending March. Retail revenue accounts for approximately 31% of total company revenues.
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US steelmakers expect mixed results in the second quarter, despite price hikes due to tariffs
The fortunes of the top U.S. Steelmakers in the second quarter are likely to be mixed, caught between an upswing from higher steel prices as well as uneven demand amid uncertainty surrounding President Donald Trump's Tariffs. Nucor's mid-quarter update forecasted a second-quarter profit that was higher than analysts' estimates compiled LSEG. It cited higher average selling price across its steelmaking segment, particularly sheet and plate mills which produce flat-rolled product used in the construction, automotive manufacturing, agricultural and energy sectors. Analysts at J.P. Morgan said that Nucor's increased shipments and stable pricing can be attributed "to a more diverse footprint". Steel Dynamics' profit was below analyst estimates due to a lower volume of flat-rolled products. Steel Dynamics also predicted lower earnings for its fabrications division due to higher input costs. The constant flip-flops in demand eventually dampened the initial surge of steel prices after Trump announced steel tariffs on February 2. BMO Equity Research stated that the increase in steel prices was due to a growing domestic supply. However, demand has been weakened by seasonality and tariff uncertainties. Trump's plan to double tariffs for U.S. imports of steel and aluminum to 50%, from the current level of 25%, has increased costs and hurt manufacturing. Analysts expect that the benefits of higher prices will be seen in the third quarter, as producers are bound by fixed-price contracts lasting several months. Raul Munoz is the managing director of insurance broker Marsh. He said that while tariffs might push up spot prices, these increases will take time to trickle down to earnings. Analysts predict that spot prices will remain in a range over the summer. Jefferies stated that they believe the impact of tariffs on imports will continue to have a long-lasting effect on the 3Q earnings. Steel Dynamics and Nucor will both report their results on the 21st of July.
Nordic Industrials reports FX losses as the dollar dents Q2 profits
The second quarter earnings of some of Sweden's largest industrial companies showed that currency fluctuations and tariff uncertainty are weighing on their profits.
The first impression is that activity levels are still healthy. However, a weaker U.S. Dollar has affected companies in this quarter. This has eroded profits, even for those companies with strong order books and global presence.
After the company missed its expectations, Epiroc shares dropped by 5.5% and landed at the bottom of STOXX 600, the pan-European index, on Friday. Weak demand, pressures on the construction unit and company efforts to improve efficiency were not enough.
The earnings of Miner Boliden were also below expectations due to the weakening U.S. Dollar.
Boliden’s results were a stark reminder how important the dollar is in Scandinavia, a region that exports heavily.
The Swedish miner sells metals in U.S. dollars, so when the dollar falls the value of the products will fall when converted into Swedish crowns.
While the demand for industrial components and minerals is still high, SKF and Trelleborg report that clients are delaying non-essential purchases and phasing in investments because of tariff uncertainty.
SKF exceeded expectations this quarter but noted a currency headwind that impacted earnings.
Atlas Copco has reported lower orders due to the negative currency effects. Its shares dropped nearly 10% on the Friday, their worst trading day in nine years.
Trelleborg missed the market expectations for core earnings in the second quarter on Thursday. The company warned that the trade war between President Donald Trump and China was causing customers to be cautious when placing new orders.
Analysts say that companies' profit margins have held steady due to their efforts to cut costs, raise prices and increase profits. However, it is uncertain how long these efficiency initiatives will last as rising foreign exchange rates and cost increases eat away at profits.
(source: Reuters)