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Australian shares fall as fears of inflation fuelled by oil prices increase
Australian shares dropped on Thursday after a two-session recovery. The oil price surge, linked to the Middle East conflict, heightened inflation fears, dampening appetite for risk and increasing expectations of a rate increase next week. As of 2337 GMT, the S&P/ASX 200 index was down 1.3% to 8,633.10. The price of oil soared sharply after the Gulf was still constrained by ship attacks on the Strait of Hormuz. This is a major chokepoint in global crude trading. The markets are now expecting a rate hike by the Reserve Bank of Australia in the next week. This is because the central bank will likely address the rising cost of living pressures caused by increased fuel prices. The markets quickly increased the probability of an increase next week from less than 30% earlier this week. A further move is fully priced in by August. Australian financials fell by 1.2%. The top lender Commonwealth Bank was responsible for 0.7% of the Australian fall. ANZ dropped nearly 2%. Macquarie Group, a leading investment bank, saw its shares fall as much as 2,3%. BHP's and Fortescue’s respective 1,4% and 1.8% declines in share prices weighed on the miners, causing them to lose 1.7%. The sub-index fell further due to the Australian gold sector. It was down by 2.2%. Pantoro?Gold and Evolution Mining were down 4.5% and 2.0%, respectively. The U.S. Dollar strengthened during the Middle East conflict, erasing a large part of the gains made by gold stocks. Goodman Group, the data centre owner, dropped by 3.6%. Healthcare ?stocks slipped 1.3%. The technology stocks fell 3.6% in line with overnight losses on Wall Street. Software firm WiseTech Global tumbled 4.6%. Oil prices increased, and energy stocks rose by 1.4%. The sector has gained 22,8% this year, after falling behind the benchmark over the last three years. The benchmark S&P/NZX50 index in New Zealand was down by 0.4% to 13,236.46.
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Rodriguez, Venezuela's oil minister, promotes his deputy to the position of head
Delcy Rodriguez, Venezuela's acting president, announced on Wednesday that she had appointed Paula Henao as oil minister. Henao will play a key role in the country's overhaul of its oil production under U.S.-imposed pressure. After the capture of Nicolas Maduro by the United States in January, Rodriguez rose from his position as vice-president to become president. Henao will be the new 'president of the United States. The U.S. is pushing to open Venezuela up to American investment in the oil, gas and mining industries. Rodriguez has been publicly praised by President Donald Trump for his cooperation in efforts to?move the oil to the United States. Venezuela has the largest known oil reserves in the world. "I'm confident that with her 'professionalism', extensive experience, and many years in this ministry, we can advanc?e in the recovery and development of the energy sector. This is a fundamental pillar of?economic growth? and the?well-being?of Venezuelans?people?" Rodriguez wrote in a post on social media. (Reporting and Writing by Brendan O'Boyle; Editing by Daina-Beth Solomon)
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US releases 172 Million Barrels of Oil from Strategic Petroleum Reserve
U.S. Secretary of Energy Chris Wright announced on Wednesday that the U.S. would release 172,000,000?barrels?of oil?from its strategic 'petroleum -reserve? in an effort to lower oil prices, which have soared because of supply shocks caused by the U.S. and Israeli war against Iran. Wright said that the'release' is part of the 400 million barrels of oil released by the International Energy Agency earlier in the day. Wright stated that the release of the film will start next week, and it will take?about 120 days for delivery. On February 28, the U.S., Israel and other countries began to attack Iran. Iran responded by launching its own attacks on Israel and Gulf states with U.S. base. The Iranian Islamic Revolutionary Guard Corps has raised the stakes in the global economy by threatening to 'block oil shipments out of the Gulf until the U.S. or Israeli attacks stop. The war has shook markets all over the world. Donald Trump said that Washington would "reduce" the threshold of the Strategic Petroleum Reserve when asked on Wednesday. The U.S. Energy Secretary said that the United States had arranged to replace these strategic reserve barrels with approximately 200 million within the next year.
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Liontown, Australia's largest energy company, posts a larger interim loss due to LG Energy stake sales charge
Liontown, Australia's largest food and beverage company, reported a wider first-half loss on Thursday. The reason for the widened loss was a?non-cash accounting expense after South Korea's LG Energy Solution sold its stake in the firm last month. By 2324 GMT, shares of the company were down by as much as 2,5% to A$1.59 Lithium producer reported a net loss after tax of A$184m ($131.25m) on a legal basis for the six-month period ended December 31 compared to a loss of A$15m in the previous corresponding period. Liontown reported a?reported?loss? that included a?non cash accounting charge? of A$104million after the South Korean firm sold its 7.5% share in the company worth at least A$419million in a block deal. LG Energy is no longer a Liontown shareholder as a result of the sale. However, it expects to realise a gain of A$58m upon conversion into equity. This will be reflected in its results for the full year. A brownfield expansion?is also underway at the company's flagship Kathleen?Valley Project, and is expected to lower unit costs due to increased scale. In its statement, it said: "We are advancing critical procurement right now."
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McGeever: Higher oil prices cloud Wall Street's optimistic earnings outlook
Even if the Iran War ends soon, U.S. oil prices will be structurally higher this year. Investors may have to reconsider their optimistic 2026 earnings estimates. The consensus oil outlook for 2026 was quite bearish while Wall Street's earnings forecasts were very optimistic. This has not changed. According to LSEG 'data, the full-year earnings growth estimate for 2026 was nearly 16% as of?Friday. This is up from 14% a year ago and 12% a year before. These 'rosy forecasts' assume that oil prices will average $60 per barrel this year, but those expectations have disappeared with the U.S. and Israeli strikes against Iran on February 28, as well as the subsequent disruption of supply. The oil market has seen wild volatility. Crude oil recorded its largest weekly increase on record last weekend, and continued to rise to almost $100 a barrel in this week's trading before falling on hopes of a quick end to the war. The damage has been done. The global energy system, which was finely tuned, has been thrown off balance. Infrastructure has also been damaged and the anticipated supply glut has disappeared. The average oil price this year is likely to be much higher than what businesses budgeted for at the beginning of the year. The companies will absorb a portion of the increase and consumers will feel it. In either case, corporate profits will be squeezed. RUPTURE THE FORECASTS In a December poll, the average consensus forecast for Brent crude in 2026 was $61.27 a barrel, with the oversupply expected offset any possible disruption of supply from the brewing U.S.Iran tensions. This would have been a 7% drop from the average price of $68.20 in 2025. Since then, these forecasts have been thrown out. Analysts at HSBC raised their forecasts for Brent crude to $80 per barrel in 2026 from $65 per barrel and U.S. West Texas intermediate crude to $76 per barrel from $61 per barrel on Tuesday. This represents an increase of 23% for Brent and 25% for U.S. West Texas Intermediate crude. The U.S. Energy Information Administration also raised its forecast for 2026 Brent crude to $79, up from $58 a month ago. This is a 36% rise. Energy price increases will have a significant impact on the economy. Fuel, fertilizer and petrochemicals will be more costly. This impact will also be felt by industries such as manufacturing, metals and retail. Joe Brusuelas is the chief economist of RSM US LLP. He says that as prices increase, consumers are affected and corporate earnings are eroded. It's a GAS! Goldman Sachs equity strategists believe that the impact of "modestly higher" oil prices on S&P500 earnings will be relatively muted. However, an extended period of disruption in supply or uncertainty is much more dangerous to economic activity. They say that for every percentage point of decline in the real U.S. growth rate, S&P 500 earnings could drop by 3-4%. According to other estimates, a 30% increase in oil prices can knock 4% off the earnings of S&P 500, with the most severe impact felt in transportation, consumer discretionary, and industrial sectors. Around 70% of the U.S. Economic activity in the United States is dominated by consumer spending. Energy costs will rise sharply, causing household budgets to be squeezed and other spending to suffer. Alarm bells have already started to ring. According to data from the American Automobile Association, average gasoline prices in the United States are now above $3.50 per gallon. This is up 17% since the start of the war. Of course, there's also a negative side. Energy sector profits are expected to grow by double digits if oil prices continue to rise. Energy only makes up 4-5% of the total S&P500 earnings, so it is unlikely that it will offset any margin losses elsewhere. AI?ARMS RACES ARE EVEN EXPENSIVER NOW There is an incredibly large dispersion between the 11 sectors in current earnings growth forecasts for 2026. The energy sector EPS was minus 1,2% as of Friday. This is the bleakest forecast, and the only one that indicates a decline in profits. On the other end of scale, the tech sector's 2026 estimated EPS growth was 35.9%. This is the highest estimate among all sectors, and it was up from 30.8% in January 1. Tech has contributed to the S&P 500 earnings growth for the past few years. Higher energy prices will hurt the mega-cap companies leading the race for artificial intelligence. UBS analysts predict that capex expenditures by "hyperscalers", this year, will reach $770 billion. Construction and operation of data centers may now become more costly. Investors are already worried about future returns. The prospect of a significantly more expensive energy source will only increase their concerns at a time where risks in many other sectors have also increased. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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Research shows that battery-electric cars will reach 23% of the market in EU and Norway by 2026.
As EVs get cheaper and emissions targets are met, the market will be supported by a battery-electric vehicle share of 23% in 2026 in 'the European Union and Norway and a share of?28% in '2027. European 'campaign' groups say Europe is on the right track in its transition to electric vehicles and that it can be profitable for the carmakers. They pushed the European Commission last December to reverse the effective ban on the sale of new internal combustion engines cars starting 2035. T&E stated that 'battery-electric cars prices have fallen in average by 4 percent in 2025 due to the launch of new models below 25,000 Euros ($28,970). * The report said that these models could become as affordable?as combustion engine equivalents by 2030, if the EU maintained or strengthened its Co2 emissions targets. Larger models have already achieved parity * Lucien Mathieu, Director of T&E Cars, told reporters that the market was expected to reach an important tipping point in the next few year. * "Backtracking from the 2030 target as the industry desires would be a big threat," said he T&E stated that * If the 2030 goal is weakened, automakers will likely prioritise their margins and delay price parity for at least two more years. Stellantis and other global carmakers have written down $55 billion over the past few months as they reduce their electric vehicle ambitions To avoid fines, Tesla and Polestar have agreed to share their Co2 emissions with other EV leaders to reduce the amount of CO2 they emit. T&E reported that carmakers who represent about half of the European market have?already achieved their 2025-2027 CO2 target by 2025, including BMW Group, a Mercedes Volvo Car pool and a Tesla Pool which included Stellantis Toyota and last year. * It said that industry warnings of 15 billion euros ($17.38billion) in possible fines for 2025 were "very distant", and estimated penalties at the most 2 billion euro if the annual target had been enforced. ($1 = 0.8630 euros) (Reporting Alessandro Parodi; editing Matt Scuffham).
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Trump's Kentucky trip aims to alleviate concerns about the cost of living caused by the Iran war
Donald Trump hoped to reassure Americans on a visit to Kentucky and Ohio, Wednesday, that the rising prices of 'gasoline' were temporary. Republican colleagues worried that these increases were causing voter anxiety over the economy. Trump's first campaign trip since the U.S. and Israeli military operation against Iran began on February 28, was a successful one. He could use the trip to hone his economic message, and highlight his achievements ahead of the midterm elections in November. His fellow Republicans are defending a narrow?majority in both chambers of Congress. Trump's first remarks at his stop in Cincinnati, Ohio were centered around the "Iran War". According to AAA, the average gasoline price in Kentucky and across the country is up 61 cents compared to last month. Trump stated on Wednesday that "oil will be coming down." It's going down more than anyone, including us, can imagine. Trump said to Cincinnati's Local 12 TV station that the U.S. will reduce "a little" its strategic petroleum reserve. Former President Joe Biden released oil from the SPR to limit price increases during the early months of Russia’s war in Ukraine. Trump's comments on the economy were delivered in Hebron, northern Kentucky. This was the latest of a series speeches Trump gave around the country in order to convince the American public about his economic policies. Trump praised his efforts to reduce drug prices, which was one of the main selling points of Republicans during the election, and also the income tax cuts on tips and overtime that many Americans received as part of "the One Big Beautiful Bill", passed by Congress in 2013. CAMPAIGN AGAINST KENTUCKY RESPUBLICAN MASSIE Hebron is a part of the district that Republican U.S. Rep. Thomas Massie represents. Massie is a Trump critic and often goes against his party. Massie was the leader of the high-profile campaign for greater transparency in the Trump Justice Department's handling of files related to convicted sex criminal Jeffrey Epstein, a late financier. Trump has endorsed Ed Gallrein to compete against Massie at the party's May 19 primary. Gallrein is a former Navy Seal officer and farmer. Trump told the Kentucky crowd that Thomas Massie was a disaster for his party. "He has to be voted as soon as possible out of office." Massie, in an interview with. He said that Wednesday's political?reality is that more people will know that Trump has endorsed me. The good news is that our polling shows I'd still win even if 100% of people knew what was going to happen on the May 19th primary. (Writing and reporting by Bo Erickson, Costas Pitas, Bhargav Asharya, Steve Holland, Will Dunham and Howard Goller; editing by Ross Colvin and Will Dunham; Howard Goller, David Gregorio, and Ross Colvin)
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How did US presidents tap strategic petroleum reserves in wartime?
Donald Trump announced on Wednesday that the U.S. will contribute "a little" to the IEA's plan to release a record number of 400 million.barrels.of oil from various countries' reserves in an effort to control the prices which have risen due to.the U.S. and Israel's war with Iran. In an interview given to local TV in Ohio, Trump didn't?say? how much oil the U.S. will contribute. He said only, "Right now, we will reduce it a bit and that brings down the prices." U.S. Strategic Petroleum Reserves (SPR) hold 415.4 million barrels. Most of this is high sulfur crude that U.S. Refineries are geared to process. The crude oil is stored underground in salt caverns hollowed out on the Texas and Louisiana coasts. The capacity is 714 million barrels. Here's how U.S. Presidents have used the SPR in times of war before: RUSSIA INVADES UKRAINE In March of 2022, a month after Russia invaded Ukraine and Trump's predecessor, former President Joe Biden, ordered the?release? of 180 million barrels in six months, which was the largest ever sale from the emergency stockpile. Biden and then Trump'slowly purchased some oil to replenish reserve but little was returned because Congress needed to provide more funds. ATTACK ON SAUDI ARABIA In 2019, Yemen's Iran aligned Houthis launched an attack on Saudi Arabia, resulting in the shut down of more than 50% of the country's crude production. Trump said that his administration was ready to tap into the SPR in case of need. This was during his first term. This did not occur, however, as Saudi Arabia's Abqaiq Plant and the?Khurais Field recovered rapidly. LIBYA CIVIL WORRAGE Former President Barack Obama released '30 million barrels' of oil in June 2011 to counter the disruptions on global markets caused by the civil war in Libya, the oil producer. This sale was coordinated 'with the Paris based IEA and resulted in an additional 30 million barrels of oil being released from other member -countries. OPERATION DESERT SSTORM George H.W. Bush sold about 21 million barrels in two phases between 1990-1991 after the Iraqi invasion. Bush sold approximately 21 million barrels in two phases. In October 1990,?the U.S. In October 1990, the?U.S. Bush sold 34 million barrels in January 1991, after U.S. warplanes and allied forces began attacking Baghdad and military targets within OPEC member Iraq, as part of Operation Desert Storm.
Tilman Fertitta is in talks to purchase Caesars for $7 Billion, reports WSJ
The Wall Street Journal reported that billionaire Tilman?Fertitta?has been in talks with Caesars Entertainment to purchase the company for $7?billion. He?topped an offer from a rival firm?from Carl Icahn?s, according to people familiar with this matter.
Fertitta Entertainment's, Fertitta, was reported to be discussing a price of $34 per share for the gaming firm.
According to the WSJ, Caesars also received a?all cash offer? of about $33 per share from Icahn Enterprises. This publicly traded company houses Carl Icahn’s investments.
Caesars Entertainment refused to comment on this report. Tilman Fertitta didn't immediately respond to an inquiry for comment.
Fertitta’s offer per share?represents a 17% increase in Caesars' closing share price on Wednesday of $29.07.
The report said that an announcement between the two parties is not imminent and that it's possible the talks will fail to result in a deal.
Casino operator reports net loss in four quarters in a row, hurt by a significant drop in visitor numbers to Las Vegas in 2025.
Tilman Fertitta approached Caesars in 2018 to discuss a merger with his gaming empire.
In 2019, Caesars replaced its three board members after activist investor and billionaire Carl Icahn acquired a 9.78% stake and pressed the company to sell as a group.
Icahn subsequently?disclosed a'sizable' stake in the company, after which Caesars expanded their?board by adding two new members.
According to LSEG data, Caesar's stock closed Wednesday up 11.76%, giving the company a market cap of $5.78 Billion. (Reporting and editing by Alan Barona, Parth Chandna).
(source: Reuters)