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Baker Hughes says Middle East disruptions have affected oilfield activity, despite its high estimates
Baker Hughes, a provider of oilfield services, beat Wall Street estimates for the first quarter profit as strong demand from its industrial and energy technology units offset drilling 'weaknesses' caused by disruptions in Middle East. The IET unit saw a surge in orders due to the increased demand for electricity from data centers and investments in gas infrastructure, liquefied Natural Gas (LNG), and grid equipment. The first-quarter IET order total rose to $4.89 billion, up from $3.18billion a year ago. The disruptions in the Middle East have weighed on oilfield services. Oilfield Services and Equipment (OFSE), a division of the company, was facing pressure. Its revenue fell 7% to $3.24bn in just one year, due mainly to regional disruptions, as well as the sale of its surface-pressure control business. The Middle East/Asia revenue dropped by?19%, to $1.15 billion. Baker Hughes and its peers are yet to see any meaningful benefit from the higher oil prices, following the attacks on Middle East infrastructure and Iran's closure of the Strait of Hormuz. Producers remain cautious in increasing drilling. Even after beating first-quarter expectations, a peer company,?Halliburton, warned earlier this week that disruptions related to the Iran conflict, and the Strait of Hormuz closing, could reduce current-quarter earnings by 7 to 9 cents a share. SLB, the larger rival, which is due to report Friday, has also warned of a possible 6-9 cents?hit citing operational disruptions within the region. According to LSEG data, Baker Hughes?reported an adjusted profit per share of 58 cents for the three-month period ended March 31, compared to analysts' expectations?of 49 cents. The revenue came in at 6.59 billion dollars, which is also higher than the $6.35 billion expected.
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Brazil proposes to offset fuel tax reductions by using the oil windfall.
Brazil's Government on Thursday announced a bill that will be sent to Congress, under which the additional?revenue generated by higher oil prices due to the U.S./Israel conflict with Iran would offset reductions in?federal tax on fuels. Planning Minister Bruno Moretti said the proposal was aimed at achieving full fiscal neutrality. Tax reductions would be dependent on extra revenues generated by an increase in oil prices. Dario Durigan, Finance Minister, said that the government was working on a two-month "calibrated" reduction. The government of President Luiz Inacio Lula da Silva is taking this step to "minimize the impact" of the higher oil prices for consumers as a result the conflict in the Middle East. Jose Guimaraes said, "We cannot make people pay for this war." Lula is now preparing to run for re-election in October, after his lead over senator Flavio Blsonaro has evaporated. Polls show that they are now tied. Last month, the leftist leader’s administration abolished federal taxes on gasoline and announced subsidies for cooking gas. It also eliminated federal taxes on biodiesel blended with diesel and jet fuel. Moretti said that the approval of the bill would allow the federal government to issue a decret to reduce the federal taxes PIS and CIDE when they are applied to fuels. CIDE, while embedded in the economy and based on revenue from companies, is a regulatory tax. Calculating the additional revenue due to higher oil prices will include the state-run Brazilian oil company PPSA as well as dividends and royalties linked to the oil sector. This is compared to the?original government revenue projections in the budget law for the year. "If the bill passes Congress, we'll implement a partial tax reduction on gasoline and ethanol," said Finance Minister Durigan. According to estimates by the government, each 10-cent reduction in federal gasoline taxes over a period of two months would result in a loss of revenue worth 800 million reais (159.70 millions) In a press release issued earlier that day, the Finance Ministry stated the government would reduce some gasoline taxes. However, Durigan told reporters during the conference that such a measure would not be announced.
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Michael Tilson Thomas, a visionary conductor of music, has died at the age of 81
Michael Tilson Thomas was a celebrated conductor, composer, pianist, and longtime music director at the San Francisco Symphony. He was known for his creative vision. Thomas died on Thursday, aged 81, after battling brain cancer for nearly five years. Thomas, who was a 12-time Grammy winner and one of orchestral music's leading figures, died on Wednesday at his San Francisco residence, surrounded with family and friends. Joshua Robison died from complications after a fall in February. Thomas was honored in 2019 with the Kennedy Center Award, the highest U.S. honor for achievements in the arts. In 2021, he underwent surgery for a brain tumor, which was later diagnosed as an aggressive cancer called a glioblastoma multifolate. He recovered despite the grim prognosis and conducted a number of concerts during his illness. His final public appearance will be in April 2025 when he leads the San Francisco Symphony to celebrate his 80th birthday. Thomas, in addition to his 25 years of association with the San Francisco Symphony, was co-founder and artistic Director laureate at the New World Symphony, an orchestral school that has been a major incubator of classical music talent. This was also an opportunity to showcase his freewheeling, inventive approach to orchestral music. The New World Symphony, in a tribute to Thomas (also known as MTT), called him "a creative risk-taker", whose "fearless investigations provided context which brought relevance, intimacy, and urgency to our relation with music." As a conductor, his musical interests ranged from Beethoven, Debussy and Stravinsky to Copland, Mahler and, as a personal favorite, John Cage. He also conducted works by Steve Reich, Mason Bates and Steve Reich. Cage's music was performed by the Grateful Dead during his first season as a member of the San Francisco Symphony in 1995-1996. Thomas was born in Los Angeles, California to a Broadway stage director and a history teacher at a middle-school. Thomas studied piano since a very young age. His paternal grandmothers were stars in the "Yiddish" theater in Manhattan. Thomas graduated from the University of Southern California (USC) in 1967 and earned a Tanglewood conducting fellowship, which is a music festival located in the Berkshires of Massachusetts, the summer home of Boston Symphony Orchestra. According to the San Francisco Chronicle, Leonard Bernstein became his 'lifelong mentor, friend and role model'. In his early 20s, he became assistant conductor and then principal guest conductor of the Boston Symphony Orchestra. He went on to conduct major orchestras in the U.S., Europe and Australia, including the London Symphony Orchestra and the Los Angeles Philharmonic. Thomas retired as the music director of San Francisco Symphony at the beginning of COVID-19 in 2020. He remained connected to the orchestra until his death as the music director laureate. Steve Gorman, Los Angeles; Lisa Shumaker, editing.
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Gold drops to a new low after Middle East conflict fuels inflation fears
Gold prices dropped to a "more than one-week" low on Thursday. This was due to fears that the inflationary fallout of the Middle East conflict would keep interest rates high for longer. As of 3:05 pm EDT (1905 GMT), spot gold was down by 0.9% to $4,697.06 an ounce after reaching its lowest level since the 13th April. Bullion dropped more than 1% earlier in the morning to as low at $4,663.69 an ounce. U.S. Gold Futures for June Delivery?settled 0.6 % lower at $4,724. Tai Wong, an independent metals trader, said: "The U.S. playing Battleship with Iran is rekindling concerns that the ceasefire could be violated at any time, leading to a sharp rise in crude oil that's pulling down other assets, including gold." "Gold nearing $4,900 on Friday last week seems like a distant past as the metals rally faded." Iran showed off its tightened grip on the Strait of Hormuz by releasing a video of commandos storming an enormous cargo ship. This was after the failure of the peace talks which Washington had hoped to open up the world's busiest shipping route. Brent oil traded above $100 per barrel on Thursday, thanks to the Iran war. Inflation is likely to increase if energy prices continue to rise. Gold is often seen as a hedge against inflation, but higher interest rates can make it less attractive. According to a poll of economists, the U.S. Federal Reserve will probably wait at least six more months before reducing interest rates in this year. The dollar's rise has further weighed on gold. It is now more expensive to buy greenback-priced gold for holders of other currencies. Meanwhile, benchmark 10-year U.S. Treasury Yields have risen over a week high, increasing the cost of non-yielding metals. More Americans than expected filed claims for unemployment benefits in the last week. Spot silver dropped 2.7% to $75.55 an ounce. Platinum lost 3.2% at $2,008.22. Both had hit their lowest levels in more than a week earlier. Palladium fell 5% to $1,465.23. (Reporting and editing by Joe Bavier and Nia Williams in Bengaluru, and Ishaan Mukherjee from Bengaluru)
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Group says global refined copper market will swing into surplus in 2026
Due to slower growth in demand and increased secondary production the 'global refined market' is expected to shift to a surplus 96,000 metric tonnes?in 2026. This will reverse a previously forecast deficit?of?150,000?tons. The organization predicted a surplus in 2027 of 377,000 metric tonnes, but warned that geopolitical factors, such as the 'war in the Middle East' and changes in trade flow could impact market balances. The global refined copper consumption is expected to increase by only 1.6% by 2026 (down from an earlier estimate of 2.0%) and by just 2% by 2027. ICSG stated that the Chinese demand is expected to grow by 1.9% in 2026. Other regions are also expecting growth of 1.3%. The European Union, Japan and other regions will remain subdued while Asia continues to be a driving force for global growth. The global refined copper production will increase by 0.4% by 2026 due to a limited concentration?availability. This is offset by an increased secondary output. In 2027, the production of concentrates is expected to improve and new capacity added. The copper mine production is expected to 'grow by 1.6% % in 2026. This has been revised down from a previous estimate of 2.3%. This is due to slower growth rates in the Democratic Republic of Congo (DRC),?Chile and Indonesia as well as constraints in Grasberg and Kamoa after problems in 2025. The mine output is expected to increase by 2.3% by 2027. This will be supported?by a new capacity ramp up,?improved production?in Chile and Zambia and?higher operating rates?in Indonesia and the DRC. Anmol Choubey in Bengaluru and Anushree mukherjee, editing by Paul Simao.
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US FTC settles case against anesthesia company
According to court documents filed Thursday, the U.S. Federal Trade Commission has settled a case it brought against a private-equity portfolio company that they claim was used to 'buy up anesthesiology practices and raise prices in Texas. Why it's Important The FTC filed a lawsuit against U.S. Anesthesia Partners under the Biden Administration. This was a major antitrust move to combat private equity rollups or purchases of many small businesses, which allegedly reduce competition in an industry. Private equity firms will closely examine the terms of the settlement which has not yet been made public. CONTEXT Under President Donald Trump, the FTC has prioritized healthcare. At the same time, it has stressed that it is prepared to settle on terms it deems 'adequate' to eliminate any problems. The FTC sued the private equity firm Welsh, Carson, Anderson & Stowe, who created USAP, but it settled after winning a bid against the claims. BY THE NUMBERS According to the FTC, this rollup involved more than 12 anesthesiology clinics, 1,000 doctors and 750 nursing staff. THE RESPONSE The FTC stated that the settlement was?currently confidential 'to facilitate the USAP negotiations USAP must engage in.' However, the FTC also said that the deal "would restore a competitive market structure" and would be "consistent with longstanding FTC Settlement Best Practices." The FTC said that if USAP does not fully implement the settlement, it will resume its case. USAP Chairman Scott Holliday stated in a press release that "it was vital to resolve this issue now in order for USAP to remain laser-focused in providing high-quality services." (Reporting from Jody Godoy, New York; editing by Rod Nickel and Paul Simao.)
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PPC Greece plans to raise 4 billion euros in capital by 2030.
The Public Power Corporation of Greece (PPC) announced on Thursday that it will?invest a total of 24 billion euros ($4.68 billion), as part of its plan to double the installed capacity. The Greek government will directly or indirectly participate in the offer to maintain its 33.4% share in PPC. PPC is the country's largest power utility. The company stated that the equity raise would fund approximately 15% of PPC's 24 Billion Euro investment plan until 2030, and also help to keep net debt within target leverage levels. PPC stated that the offering would be without pre-emption right, but existing shareholders will receive priority through an allocation system aimed at limiting dilution. The?transaction will launch and close in late May, pending shareholder approval on 14 May. Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE acted as 'joint global coordinators and bookrunners in relation only to the international offering. The utility plans to nearly double its installed capacity by 2030 to 24.3 gigawatts, primarily by investing in renewable energy, flexible production?and storage. Dividends will also be increased to 1.40 euro per share before the end of this decade.
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Gold reduces losses earlier on possible Lebanon-Israel cessefire extension
Gold prices fell on Thursday, as a result of news that a possible ceasefire between Israel and Lebanon could be extended. As of 11:52 am EDT (1552 GMT), spot gold was down by 0.3%, at $4,722.02 an ounce. It had fallen 1% earlier that day, to as low as $ 4,683.84 an ounce. U.S. Gold futures for delivery in June fell by 0.2% to $4738.50. "What provided a?bid were signs of a possible breakthrough in the Lebanon ceasefire this morning. "But that coincided with the release of economic data," said Daniel Ghali. Commodity strategist at TD Securities. On Thursday, the U.S. will host a second round of talks between Lebanese envoys and Israelis. Beirut is seeking a ceasefire extension, after Israel had killed five people, including a reporter, in airstrikes. Ghali stated that "certainly yields and data are playing a role but all asset values, including gold are moving in line with headlines." After reaching a record high of over a week earlier, the benchmark 10-year U.S. Treasury Yields have lost most of their gains. This has reduced the opportunity cost for holding non-yielding gold. Last week, more Americans than expected filed for unemployment benefits. Initial claims for unemployment benefit rose by 6,000, to seasonally adjusted 214,000 in the week ending April 18. This is up from 210,000. Brent traded above $100 per barrel on Thursday, as the peace talks between 'the U.S.A. and Iran' stalled. Trade restrictions through the Strait of Hormuz also continued. Gold is seen as a hedge against inflation and, as it's viewed as a non-yielding investment, this can lead to higher interest rates. Since the beginning of the U.S. and Israeli war against Iran on February 28, the price of gold has dropped by more than 11%. Spot silver dropped 2.3%, to $75.91 an ounce. Platinum fell 2.7%, to $2,018.10. Both had hit new lows in the previous week. Palladium fell 4.1% to $1,482.41, having touched a two-week low. (Reporting and editing by Joe Bavier, Nia Williams and Ishaan arora in Bengaluru)
Newmont exceeds Q1 profit expectations, but warns of weaker production and higher costs for Q2.
Newmont beat Wall Street's expectations for the first-quarter profit, but warned of a weaker production and higher costs in the current quarter.
The company expects to deliver about 23% (or slightly less) of its total production in the second quarter 2026. This is slightly lower than first-quarter levels.
Unit costs will increase significantly from the first quarter, due to a combination of?higher sustaining capital expenditure, lower silver production and increased costs for sales in Boddington, Tanami and Lihir.
The company stated that higher oil prices could also affect costs, as well as the impact of an entire quarter of the increased royalties in Ghana.
The gold price hit'record highs' during the first three months of this year on demand for safe havens and bets to lower rates. Prices then eased after a soaring inflation fear sparked by a U.S./Israel conflict.
Gold's average quarterly realized price was $4,900 an ounce. This compares to $2,944 in the same period last year.
Natascha viljoen, CEO of the company, said: "Our enhanced capital allocation framework has enabled us to?double the size of our share purchase program, with an additional $6 Billion authorization. This is after we completed our previous program."
After the bell, shares of the company increased by 1.8%.
Newmont's quarterly gold production stood at 1,30 million ounces in comparison to 1,54 million ounces last year.
The decline was due to lower production at Boddington because of bushfires. Weaker grades at Tanami as a result of planned mine sequencing, heavy rain, and lower grades at Lihir and Cerro Negro.
According to LSEG, on an 'adjusted' basis, the company earned?$2.90 per share for the quarter that ended March 31 compared to analysts' average estimates of $2.18.
(source: Reuters)