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Vale reports $3.8 billion loss due to nickel impairment, but analysts are pleased with core profit
Analysts praised a core profit that was above expectations and predicted a positive reaction to the shares. Rio de Janeiro-headquartered Vale, one of the world's largest iron ore producers, posted a $3.8 billion net loss for the October-to-December quarter, compared to a $694 million loss in the same period of 2024. Analysts polled at?LSEG expected a profit of $2.7 billion. Vale Base Metals reported a $3.5billion impairment of its?nickel assets located in Canada. This was "caused by a downward adjustment in long-term nickel prices based on market estimates". The company also noted a $2.8 billion write-off from deferred taxes assets of subsidiaries. It increased provisions from Samarco, BHP's joint venture, by $449 millions due to "updates" of a British class action lawsuit related to the fatal 2015 Fundao Tailings Dam collapse. Despite the billion dollar loss, core earnings, or adjusted earnings before taxes, depreciation, and amortization, (EBITDA), grew 21% to reach $4.6 billion. Vale's EDITDA was $4.8 billion after excluding non-recurring items, other effects and other factors. Analysts expected it to reach $4.6 billion. Analysts at Itau BBA & Santander emphasized the $4.8 billion EBITDA as being above both their expectations and those of the market - and predicted a positive share reaction on Friday. Vale reported that its operating results were boosted by higher prices for?copper, its by-products and higher volumes of sold iron ore and Copper. The miner noted, however, the effects were partly offset by a stronger Brazilian real. Analysts had predicted $11 billion in revenue. The company reported a net income of $11.1 billion for the?the third quarter, up?9%. Reporting by Andre Romani from Sao Paulo, and Marta Nogueira from Rio de Janeiro. Editing by Inigo Alexandre, Natalia Siniawski, and Stephen Coates.
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China and US slowdown in the US in January hampered global EV sales
Data from Benchmark Mineral - Intelligence (BMI), a consultancy, showed that global EV registrations dropped 3% in January due to the introduction of a EV purchase 'tax' and lower EV subsides in China as well as policy alterations in the U.S. Why it's important Global automakers with a large exposure to the U.S. have written down $55 billion over the last year. This is due to their scaling back of electric vehicle ambitions as they face a difficult U.S. marketplace under President Donald Trump. They also faced price wars and more complex vehicle types in Europe. The European Union, as well as?China, which is the largest EV market in the world, have also eased regulations to support electrification. By the Numbers According to data from the Global EV Registrations (which includes plug-in and battery-electric cars) in January, they fell by almost 3% on an annual basis. In China, sales fell by 20% to just under?600,000. This is the lowest level in nearly two years. And in North America, they dropped 33% to just over 85,000 cars. The U.S. sold the fewest electric vehicles in a month since early 2022. In Europe, sales grew by only 24%, the lowest rate since February last year, and reached over 320,000 registrations. In the rest of world, they were up 92% to just over 190,000. This was their highest ever, sustained by incentives in Thailand, and strong growths in South Korea and Brazil. Quotes Charles Lester, BMI's data manager, said that "we have seen an increasing number of exports from China to the EV market". "We expect that trend to continue. We're targeting many different areas, such as Southeast Asia, where we've seen significant growth in the last few months." CONTEXT The proponents of electrification stress the need to reduce CO2 emissions that are warming our planet, but automakers argue that a rapid transition would threaten jobs and profits. Hybrid cars have gained in popularity among buyers as they are seen as a compromise between combustion engines and battery-electric engines. Some experts, however, argue that "mild" hybrid cars, which mainly use traditional fuels to reduce emissions, are only modestly effective. (Reporting by Alessandro Parodi in Gdansk, Editing by Matt Scuffham)
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US releases interim tax credit rules to limit China's clean energy influence
The U.S. Treasury Department on Thursday released interim rules to enforce provisions in President Donald Trump's tax law which restrict companies from claiming federal clean energy subsidies if they are too reliant on Chinese made?equipment. Since the passage of Trump’s One Big Beautiful Bill Act in July last year, solar and wind developers, as well as factory owners, have been anxiously waiting for this?guidance. It applies to lucrative tax incentives for clean energy manufacturing, and electricity generation. The law has accelerated expiration dates for many clean energy tax credits from the Biden era and introduced complex requirements to reduce U.S. dependence on supply chains controlled primarily by "prohibited entities" such as China, Russia and Iran. Trump has used his second term to halt the growth of clean energy technologies. He has criticised them for being too dependent on Chinese supply chains. The Trump tax law, in particular, prevents firms owned by or influenced Chinese firms from obtaining credits. It also restricts the use of Chinese components and labor. Prior to this, restrictions on foreign entities were only applicable to tax credits for clean vehicles. Although domestic production of solar and battery products has risen dramatically in the past few years, many producers still rely on components and inputs made abroad, usually by Chinese companies. China is the world's largest manufacturer of solar energy components. Yogin Kothari is the chief strategy officer of the Solar Energy Manufacturers for America Coalition. Treasury's Internal Revenue Service published a notice on its website that outlined formulas and procedures to determine if a particular project or component has received "material support" from an prohibited entity. The IRS may assign cost percentages to components in order to determine if a facility or component is eligible. The taxpayers may also rely on the supplier's certifications to determine whether equipment or materials are eligible. Internal Revenue Service of the Treasury said that interim regulations can be relied upon until formal regulations are proposed. The Treasury is soliciting public comments on future guidance for a 45-day period. Reporting by Nichola Froom; editing by Deepa BABINGTON and Lincoln Feast.
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Energy chief Wright told NBC News that US-led oil exports from Venezuela will bring in $5 billion within months.
Chris Wright, the U.S. secretary of energy, told NBC News that oil sales from Venezuela under U.S. control have reached a total of?over $1billion since President Nicolas Maduro was captured in January. In the coming months he expects to bring?in 'another $5billion. He added that the U.S. government under President Donald Trump had given Venezuela's interim administration the proceeds of sales from U.S. oil refineries. Wright, on the second day of his visit to Venezuela, said, "Sales are now over one billion dollars and we have some sort of short-term deals over the next couple of months that will bring us another $5 billion." Wright, who had met Interim President Delcy Rodriguez and the Oil Minister Delcy Rodriguez one day before, toured facilities in the Orinoco Heavy Crude Belt with officials of U.S. company Chevron. He is the 'highest-ranking U.S. Official to visit the country after the U.S. captured and removed Maduro from power six weeks ago. Wright stated in an interview that Washington would control the sales and flow of funds until a Venezuelan representative government is established. He said that "free elections" would be held before the end the second Trump administration. 'ON THE ROAD to INVESTABLE.' Wright said that Exxon -Mobil was in discussions with the Venezuelan Government and collecting data on the oil sector. This is despite the fact that CEO Darren Woods had described the South American nation as "uninvestable" at a White House Meeting in January. They are gathering data. They are looking into things. Wright stated that because they are a large company, they will move slowly and with care. He admitted that it was difficult for American firms to invest in Venezuela. He added, "But it is on the way to becoming an investable country." Exxon didn't immediately respond to an inquiry for a comment. The U.S. oil major No. The No. Woods stated that Exxon was still willing to send a team to Venezuela in order to assess the state of?the oil infrastructure. He also said that he thought the Trump administration would be able to help resolve the problems facing Venezuela. Wright stated in an interview that Chevron is the only U.S. producer of oil in Venezuela. The company has "a huge amount of capital and dramatic growth in oil production. This is a pretty aggressive move for such a large, tame company." Wright, speaking to Bloomberg TV, said that Venezuela's oil production could "grow between 30% and 40%" in a year. The current production is around 1 million barrels a day. Oil Production Forecasts 'Fantastic' Analysts say that achieving such a boom in production would be a difficult task for Venezuelan oilfields, after years of neglect and mismanagement. David Goldwyn is a former U.S. State Department Energy Diplomat. He said that given the state of Venezuela’s infrastructure, and the level of uncertainty in the economic, political, and fiscal framework, 30% growth for this year would be a little fantastic. He said that a 30% increase in production could be achieved within 12-18 months, but only if certain conditions were met, such as a stable political environment, competitive contracts for production-sharing agreements, and the cooperation of state oil company PDVSA. Wright told CNN that Chevron is on track to double its production at one of their Venezuelan oilfields in the next 12-18 months and possibly quintuple the amount over the next 5 years. Chevron didn't immediately respond to an inquiry for comment.
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Eversource reports a rise in its quarterly profit as earnings from gas strengthen and one-time charges fade
Eversource Energy reported a higher fourth-quarter profit Thursday. This was largely due to stronger results in its gas business and the absence of large one-time charges which had weighed down on previous year's earnings. The U.S. electricity consumption hit "record" highs in 2025, and it is expected to continue rising in 2026 as AI and crypto-data centers expand, and more homes and business use electricity for heating and transportation. Eversource's results for the year before were severely affected by large one-time charges, including about 298 million dollars in after-tax losses tied to its then-pending sale?of Aquarion water and substantial losses from its sale of offshore wind investments. Connecticut regulators rejected in November the company's plan to sell its water utilities business? in a $2.4 billion deal. Eversource's natural gas segment made $123.6 million during the quarter compared with $103.4 millions last year. Utility forecasts 2026 profits between $4.80 and $4.95 each share. According to LSEG data, analysts expect a profit of $4.97 per share for the full year. The company expects to maintain its long-term growth rate of earnings per share in the range of 5% to 7 % through 2030. The company also increased its capital investment plan for the next five years to $26.5 billion from $24.2? The increase in spending on distribution infrastructure for electric and natural gases is largely responsible. The company expects to raise between $800 million and $1.1 billion in equity by 2026-2030. This excludes routine issuances for its dividend reinvestment programs and compensation plans. Eversource, the company that serves 4.6 million customers of electric, gas, and water in Connecticut, Massachusetts,?and New Hampshire reported a net income of $421.3 millions, or $1.12 a share, for its fourth quarter. This is up from $72.5million, or 20c per share, one year ago. (Reporting from Sumit Saha, Bengaluru. Editing by Vijay Kishore.)
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Saudi-backed Midad signs a term sheet with Lukoil to purchase sanctioned assets.
Saudi-backed Midad Energy signed a termsheet?to purchase Russia's sanctioned Lukoil?assets?in a high stakes competition against rivals, including?private equity giant Carlyle Group. The deal is contingent upon U.S. regulator approval, according three people with knowledge of the matter. The Russian energy giant is continuing to try to sell off overseas assets that are restricted by Western sanctions. It also highlights the growing interest of Middle Eastern countries in purchasing discounted global oil and refinery assets. Sources said that the agreement was signed late in January and covered all the assets. Midad agreed that it would place its?all-cash offer? in escrow, while the companies sought the necessary regulatory approvals, including the U.S. Treasury. This structure was designed to?preserve transaction restrictions while navigating the sanctions restrictions. "Midad works to ensure regulatory compliance." A source familiar with the bid said that it is seen as a high stakes move, supported by strong political connections with Saudi Arabia. Midad and Lukoil didn't respond to the?request for comment. The U.S. Treasury did not respond immediately to a comment request. People familiar with the process say that U.S. authorities have in recent months issued a number of temporary general licence extensions related to sanctions Russian energy assets. These licenses allow a limited amount of time for maintenance and wind-down operations, as well as, in some cases the exploration of possible divestment, under strict conditions. These extensions are meant to avoid abrupt disruptions in the energy markets and give regulators oversight of any ownership changes. Sources said that any final transfer of Lukoil’s sanctioned assets will still need explicit U.S. permission. There is also no guarantee Washington would approve a sale given the ongoing geopolitical tensions and the complexity of the compliance review. Negotiations are taking place against the backdrop of the ongoing Ukraine-Russia conflict. President Donald Trump, despite his earlier promises to end the conflict quickly, has been unable to do so. This adds further uncertainty to the regulatory and political environment around any potential transaction. Midad was previously reported as being 'one of the top contenders for Lukoil’s international portfolio. This includes oilfields and refineries, and thousands of fuel station worldwide. A range of global investors were interested, including Carlyle, who made a competing bid. Lukoil is trying to divest its foreign operations that have been hit by U.S. sanctions. These sanctions have made it difficult for Russian energy companies to sell their overseas assets, and they've forced buyers and seller to use escrow or conditional payment mechanisms while waiting on government approval.
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US utilities invest heavily in data centers to meet the growing demand but affordability issues loom
Companies like American Electric Power, Exelon and others have announced their expanded investment plans and answered questions about rising power bills. Utilities add power?lines to the grid and other components as data centers -- needed for Big Tech's expansion in artificial intelligence technologies that drive this growth -- help lift U.S. consumption of electricity out of two decades flat demand. This demand has prompted electricity prices to rise across the country, and fierce competition among power companies in order to capture this long-awaited growth. Some regulated utilities in the Mid-Atlantic PJM Interconnection are trying to change state law to be able add more power to the market. AEP announced on Thursday that it will expand its five-year plan to include an additional $5 billion – $8 billion of transmission and generation projects. Bill Fehrman, CEO of AEP, said on a Thursday call with investors that "we are in the middle of a generational growth phenomenon" referring to the doubled demand from potential data center customers. "However," he continued, "meeting this demand must also be done responsibly." Exelon increased its capital plan for the next four years to $41.3 billion, up from $38 billion. AEP shares surged up to a record high on Thursday afternoon and Exelon's shares rose by 8.8% following the results. DATA CENTER DEMAND SPLENDERS Many utilities continue to report a ballooning demand for electricity from data centers, despite a recent flurry announcements by power companies and data center industry. AEP has now signed agreements for 56 gigawatts, which is double what it was in October. It also received requests for 180 additional gigawatts. AEP stated that 80% of their growth is driven by hyperscalers such as Alphabet’s Google, Amazon.com, and Meta. AFFORDABILITY Utility companies face increasing political and regulatory pressure to protect residential customers from higher bills as they invest heavily to meet the demand. James West, an analyst at Melius Research said that the conversation had shifted from affordability to cost. He added that federal and state initiatives are being taken to reduce power bills. Exelon, one of the utilities operating within PJM Interconnection (North America's largest wholesale electricity market and power grid), has seen its bills rise by more than 20 percent in some areas during the last year as demand for data centers outpaced supply. Exelon proposes allowing regulated utilities to own and build generation in PJM. This would require legislative approval across several Mid-Atlantic States where it operates, and could threaten the market share of independent producers. Calvin Butler, CEO of the company, said that it plans to continue this effort in 2019. Independent power producers, who currently own the majority of generation in PJM, have resisted. They claim that utility ownership can shift costs to captive customers that pay for regulated 'utility infrastructure expenditures in their bills. Calvin Butler, Exelon's CEO, said on Thursday that the focus of everything is affordability and maintaining reliability. AEP, who also supports the expansion of regulated generation, stated that it hopes to limit the impact on customers through federal loans, grants from states and revised rate designs.
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Stocks drop with tech slide, yields decline as well
Investors were cautious as they awaited the U.S. Inflation data due on Friday. U.S. Treasury Yields also fell. The S&P 500 was impacted most by the?technology /sector, which fell more than 2%. Investor confidence was shaken by a number of stock sales this month, including those in software groups. This is due to concerns about the potential for artificial intelligence to disrupt certain industries. The unexpectedly strong U.S. employment report released on Wednesday has eroded expectations for a rate cut from the Federal Reserve in the near future. Data showed that new applications for the?U.S. Last week, unemployment benefits declined less than expected. The expectation that the U.S. Central Bank could cut interest rates had been increasing until Wednesday's employment report. Investors are analyzing this week's numbers and weighing up the Fed's future steps. The next important data point is the U.S. The consumer price index (CPI) is set to be released this Friday. Jay Hatfield, CEO of Infrastructure Capital Advisors, New York, stated that "the bull case for the Fed's cutting was largely centered on the weak employment picture, so this case was challenged." Treasury yields?have continued to decline after a strong auction of 30-year debt. The yield on the benchmark 10-year U.S. notes dropped 7.7 basis points, to 4.106% from 4.183%, late Wednesday. It was its largest drop since October 10. The Dow Jones Industrial Average dropped 400.87 points or 0.79% to 49,723.02; the S&P 500 declined 78.95 or 1.13% to 6,862.52; and the Nasdaq Composite lost 412.08 or 1.79% to 22,654.34. MSCI's global stock index fell by 8.01 points or 0.75 percent to 1,047.70. The pan-European STOXX 600 Index finished 0.5% lower, at 618.52. Most regional benchmarks reversed course and closed in negative territory. The dollar index was not much changed in terms of currencies. The dollar index, which measures the greenback against a basket of currencies, including the yen, the euro and others, increased by 0.04%, while the euro fell by 0.03%, to $1.1866. The dollar fell?0.23% against the Japanese yen to 152.91. The yen is up as investors are warming to the idea that the new government will be fiscally responsible in Japan and Japan's financial situation may be favorable over the long term. Oil prices dropped Due to falling demand and expected supply increases, there are fewer concerns about a renewed Middle East conflict. U.S. Crude fell $1.79 and settled at $62.84 per barrel, while Brent fell $1.88 for a final price of $67.52. Spot gold dropped 2.83%, to $4.934.57 per ounce.
Copper prices fall on concerns over U.S. interest rate hikes
The copper price was slightly lower on Tuesday due to supply concerns and continued interest by speculators.
Benchmark three-month Copper on the London Metal Exchange fell 0.2% to $13,185.50 a metric ton at 1030 GMT after recovering from an intraday low of $13,033 reached in Asian trading.
LME copper prices have risen by 45% in the last 12 months. They've reached successive records, including $13,387.50 just last week.
Dan Smith, managing Director at Commodity Market Analytics said that there is a large amount of liquidity in the financial markets.
He added that there is a high probability LME copper will break through the $14,000 mark in the near term.
Copper's rise has been fueled by disruptions in mines and concerns?about deficits for this year. A flow of copper is also being sent to the U.S. as a result of potential tariffs which are reducing supply elsewhere.
The LME Cash Copper premium over the three-month contract is increasing as a result of the tightening.
Some traders were however on the sidelines ahead of U.S. Consumer Price Index data due later on Tuesday.
Goldman Sachs has shifted back its forecasts that the U.S. Federal Reserve will cut interest rates by 2026 due to softer employment data.
"Hopes for any near-term rate cut have been dashed. This has triggered a price drop," said an anonymous trader in Beijing, as he was not authorized to speak to the media.
The most traded copper contract at the Shanghai Futures Exchange ended daytime trading 0.5% lower, at 102290 yuan (14,662.71) a tonne.
The contract reached a high of 104.880 yuan during the session. This is close to the 105.500 yuan record that was touched last week.
Other metals include LME aluminium, which fell 0.4% to $3171.50 per ton. Nickel dropped 0.7%, tin 0.3%, and tin 0.3%, while zinc increased 0.7%, to $3237, and lead rose 0.3%, to $2,059. (1 Chinese Yuan = 6.9762 US dollars) (Reporting and editing by Ronojojo Mazumdar; Additional reporting by Amy Lv, Beijing)
(source: Reuters)