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Firms on macro-risk, soft dollar and copper set to gain monthly
The copper price?firmed up on Friday, and was set to post a'monthly gain' as the market digested an 'easier dollar and a greater improvement in risk appetite?in equity markets. Benchmark?copper? on the London Metal Exchange rose 0.27% to $13,840.5 per metric ton at 0740 GMT and was on course for a month-long gain of 3.5%. The most traded copper contract at the Shanghai Futures Exchange increased 0.66%, to 105460 yuan, or $15,632.04, a 3% increase since the beginning of the month. The dollar tumbled overnight, making copper and other greenback-denominated commodities ?cheaper for buyers using other currencies, offering support. Dr Copper, the red metal nicknamed for its 'use as an aggregate to measure global economic health', was also supported after a wider increase in risk appetite following the?U.S. Federal Reserve kept interest rates. Craig Lang, Principal Analyst at CRU said that the sharp recovery in stocks yesterday after a difficult month was a reflection of an improvement in risk appetite. Early in July, copper prices were supported by a good demand from China, declining stocks, and concerns about supply. However, this support waned later. The Yangshan Copper Premium is on the rise The LME warehouses that track physical demand for the main consumer China have paused their withdrawal requests and received new ones. This week, faded. Sandeep Daga is the head of research for Metal Intelligence Centre. He said that this softening along with Chinese leaders’ apparent lack of interest in economic stimulus, and?disappointing PMI results from this week "makes copper into a toy, in the hands of dollar and risk-sentiment on equity markets." The total amount of copper in the SHFE monitored warehouses The number of tons that were produced last week was also little changed, with only 276 tonnes being added to the total. Aluminium lost 0.58% on the LME, while zinc and lead both lost 0.45%. Nickel was barely affected, only dropping by 0.03%, and tin gained 0.04%. The price of aluminium increased by 0.19%. Zinc gained 0.69%. Lead fell 1.18%. Nickel rose 0.32%. Tin rose 1.86%. $1 = 6.7464 Chinese Yuan Renminbi (Reporting and editing by Varun H. K. and Janane Venkatraman).
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Seven & i signs strategic partnership agreement, invests $620 million with SoftBank and SMFG units
Japan's Seven & i Holdings?formed a partnership with SoftBank -Corp, PayPay, and?Sumitomo -Mitsui Card.?Each will invest 100 billion yen (620 million dollars) in the 7-11 operator, a Friday filing revealed. The filing revealed that each of the three would acquire a 2.27%'stake? in Seven & i. LY Corp., a 'SoftBank subsidiary which runs the Line messaging application along with a number of online businesses has also signed a strategic partnership. The filing stated that they aim to 'integrate customer 'information' and create a loyalty point ecosystem across Seven & i physical stores, as well as the online and financial customers of the other companies. Seven & i will also benefit from the deal, as it provides a welcome 'investment' for its struggling business. Last year, Alimentation Couche-Tard made a determined attempt to takeover Seven & i. Seven & i's profits have been impacted by stiff competition in Japan and lacklustre results in North America.
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Gold on the verge of ending a four-month losing streak
Investors weighed Middle East developments and their impact on U.S. interest rate outlook as they weighed the gold price on Friday. As of 0703 GMT spot gold dropped 0.7%, to $4,075.35 an ounce. However, it was on track for a 0.5% weekly increase. Prices rose by about 1.7% in the last month. U.S. Gold Futures for August delivery fell 0.6% to $4 074. "Gold has a slight negative bias today due to profit-taking, and a moderate bounce in the U.S. Dollar, after the metal's gains and the corresponding drop in the greenback yesterday," said Tim Waterer, chief analyst at KCM Trade. The dollar rose by 0.3% after a 2.4% drop on Thursday, its largest single-day decline since January 2023. The dollar is stronger, making dollar-denominated goods more expensive to overseas buyers. Gold has had a better month than usual. Waterer stated that the metal has found a sort of cushion around the $4,000 mark, which has drawn buyers during dips. Kevin Warsh, Fed Chair, gave no indication of the next move the central bank will make at its Wednesday policy meeting. According to CME Group’s FedWatch tool, the markets are pricing in a 66%?chance that rates will be raised in September. Gold is often considered a hedge against rising inflation. However, higher interest rates can reduce its appeal because they increase the opportunity costs of owning the non-yielding asset. A drone strike in the Middle East that ignited fires on two vessels of gas in Egypt's Mediterranean Port of Damietta, has created a new hazard for shipping through the Suez Canal. The canal is one of the few major export -routes left to Saudi Arabia amid the U.S. vs. Iran war. Analysts at BCA Research wrote in a report that "over the long term, the Hormuz Crisis will fade, but geopolitical... Spot silver dropped 1.5% to $58.12 an ounce. Palladium dropped 0.6% and platinum fell 1.5%, but both metals are still on track for a gain in the month. (Reporting and editing by Mrigank Dahniwala in Bengaluru)
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South Korea reaches its highest temperature ever of 41.4 C during a heatwave
South Korea's highest temperature was recorded on 'Friday, since modern weather observation began. A prolonged heatwave had pushed temperatures over 40 degrees Celsius (104 Fahrenheit) for a third day in a row. According to the Korea Meteorological Administration, the record was set at Yangsan in the southeast city. Temperatures reached 41.4 C by 1:40 pm (0440 GMT) according to KMA. The reading exceeded a previous national record set in August 2018 in Hongcheon, which was 41.0 C. Yangsan now has temperatures over 40 C on three consecutive days amid an intense heatwave that is affecting most of the country. Heatwave advisories and warnings are still in place across South Korea. KMA's data records began using the ASOS system in 1973. The 41.4 degree temperature measured in Yangsan was the highest temperature recorded in our records since that time, according to a KMA representative. The KMA stated that the extreme heat in the country was caused by the simultaneous influences of the North Pacific High and the Tibetan High Pressure systems. These pressure systems have covered the Korean Peninsula as a lid. They have trapped heat, allowed temperatures to rise across much of the nation, while limiting clouds. Forecasters are also keeping an eye on 'Typhoon Dolphin' in the western Pacific. Its eventual path could influence weather conditions for the Korean Peninsula the following week, but its impact remains uncertain. Reporting by Kyu Seok Shim, Editing by Ed Davies
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Fire in southwest France weakens, allowing people to return home
Authorities have allowed a number of people who were evacuated from southwestern France because of a wildfire to gradually return home. The fire has been burning for over a week. The French authorities ended the evacuation in 12 districts west and southwest from Bordeaux on Friday, allowing more than 220,000 people to return home. Gironde prefect Sophie Brocas announced the decision in a press release. She said that the situation was stable and that the fire had been contained within its perimeter. "Overnight, the weather conditions were favorable: low temperatures and high levels of humidity." The A63, which connects the city of Bordeaux to the Spanish border, has been reopened. Access to the Cap 'Ferret Peninsula, which is a tourist destination and where many valuable properties are situated, remains closed. The only road that connects it with mainland France runs through the burned areas. After a prolonged dry spell, the wildfire that raged in the Landes region west of Bordeaux destroyed 42,000 hectares of "highly flammable" pine trees. A few hundred homes were destroyed by the fire. Laurent Nunez, the Interior Minister, said that so far this year, 308 people have been detained in all of Canada on suspicion of arson, whether intentional or not. France is currently experiencing a wildfire season that has never been seen before. The?area?burned is already greater than the previous record-breaking year of 2022. Brignoles, a town in southeastern Provence where residents, including Hollywood actor George Clooney and his British wife Amal, as well as their children, had to be evacuated, was another area that burned during the past few weeks. Reporting by Yves Herman and Sarah Meyssonnier; Writing by Inti landauro, Editing by Michael Perry
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Kyrgyzstan accepts Russian fuel despite shortage
Local media reported that First Deputy Premier Daniyar Amangeldiev had agreed to a monthly fuel supply of 100,000 metric tons with Russia. Reports stated that fuel would be purchased at the current market exchange rate. Kyrgyzstan relies on Russian imports for over?90% its gasoline and diesel, but the supply has been in question due to Ukrainian drone attacks?on Russian refining facilities and a subsequent shortage. Kyrgyz officials have taken a number of measures in recent weeks to stabilize the fuel market. These include a temporary price control, a ban on exports of petroleum products, and the removal of state regulation of AI-95 gasoline. Retail fuel prices rose sharply in July, with AI95 gasoline reaching 105-110 soms ($1.20-$1.26) per litre and diesel?prices rising to around 98-100?soms. Bishkek residents have reported fuel shortages and growing queues at certain filling stations. Kyrgyzstan also requested additional supplies from other nations to help alleviate the shortages. Fuel deliveries to Uzbekistan are still in the works, but Belarus has already started delivering fuel. Supplies from China are also on their way. Reporting by Aigerim Turgunbaeva, Writing by Felix Light, Editing by Jamie Freed
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Austria's OMV quarterly profits jump 65% due to price increases
Austrian oil and gas company OMV reported a record?quarterly profit on Friday, surpassing estimates. Price?hikes?across-the-board more than offset sales impact from the Middle East conflict. Oil companies have benefited as a result of the increased volatility in energy markets, as the U.S./Israeli conflict against Iran has caused sharp fluctuations in crude oil and gas prices. OMV's operating profits jumped by 65% year-on-year, to EUR1.71bn ($1.97bn), exceeding analysts' expectations. The company has confirmed that it expects the Brent price to range between $85-$95 per barrel for the entire year, "subject to the resumption of shipping through the Strait of Hormuz". Brent futures were $87.43 per barrel on Friday. Early?July saw the company report an average crude price of $97.80 per barrel for the period April to June, up more than 50% from the last quarter of the previous year. The chemicals division of the Vienna-based company beat analyst expectations by reporting an operating profit adjusted to EUR429m, which is more than twice what it was a year earlier and 22% above analyst estimates from Vara Research. The company attributes the increase to higher prices of olefins, polyolefins, and a larger contribution from its Borouge stake. Chemicals are used in gas and water pipes, auto parts, medical syringes and other products. Morgan Stanley analysts see OMV entering into a "cyclical phase" after the creation of Borouge International in the first half of this year, and the incoming CEO Emma Delaney's taking over the reins starting September. Management can then refocus their strategy to areas like?adding to the company’s?upstream?portfolio. Petrom, OMV’s Romanian listed?subsidiary, reported an operating result slightly better than expected, beating the consensus by about 2%. This was boosted by higher gas and oil prices.
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Former AC Milan and Italy defender Baresi died at age 66
Franco Baresi was a former AC Milan and Italy defender who died on Friday at the age 66. He is regarded as one of "the most recognisable" players from the "golden era" of Italian football in the 1980s and 90s. The entire 'history' of AC Milan has been shattered by Franco Baresi's death. "His example and integrity will forever be etched in the Club's DNA just like his iconic number six shirt," the club stated on social media site X. Baresi’s former club where he was honorary vice-president said last year that he underwent surgery to remove a nodule from the lungs and had been prescribed recovery treatment by an oncologist. Baresi appeared alongside Giuseppe Bergomi (former Inter Milan and Italy defender) at the opening ceremony of the Milano Cortina Winter Games in February. Baresi, who spent the entirety of his 20-year career at AC Milan, is considered an icon. He won six Serie 'A titles, three European top trophies and captained the team for fifteen seasons before retiring in 1997. Milan retired the number six shirt at the end of his playing career. He was the first player to do so in the history of the club. Part of 'The Invincibles' Baresi played in the Italy team that won the World Cup in 1982 and led the team into the final of the 1994 World Cup, where they lost to Brazil on a razor-thin margin after a penalty shootout. Baresi, however, was not among the players to score. After a knee operation, he famously played the entire 120 minutes of football just 25 days later. He was loyal to Milan from the beginning of his career. In the early 1980s, he stayed at the club despite two relegations to Serie B and helped them return to the 'top flight. Baresi, the captain of the Serie A club and the Italian national team for 81 years, was the cornerstone for Milan's defences during this period. Baresi re-defined the sweeper position in an era that was dominated by physical defenders. He combined defensive authority with his ability to launch attacks deep. He was the captain of a celebrated Milan defence featuring Paolo Maldini and Alessandro 'Costacurta. Mauro Tassotti also played in the backline. The high defensive line, offside trap and the offside trap were the foundations for the club's 58 match unbeaten streak in Serie A, earning Fabio Capello’s side the nickname “Gli Invincibili” (The Invincibles).
Couche-Tard buys Poland's Zabka in largest-ever deal for $8.7 billion
Alimentation Couche-Tard, a Canadian retailer, announced on Friday that it plans to 'buy' Poland's Zabka at a cost of 'about $8.7billion. This will be its largest acquisition. It will also expand its presence in Central & Eastern Europe. Last year the company abandoned a bid worth $46billion for Japan's Seven & I.
Couche-Tard announced that it has secured commitments from investors including CVC Capital and Partners Group, to tender their shares. This gives it the backing of investors who represent about 57% Zabka's capital.
The company has launched a voluntary tender offer for 32 zlotys a share. This is a premium by about 9.4% over?Zabka?s previous closing price. It values the Polish convenience store operator at about 32.6 billion Zlotys (8.72 billion $).
In a statement released jointly, Couche-Tard stated that the acquisition would create a significant platform for Central and Eastern Europe. It also identified annual synergies in excess of $250 million over the next three years.
The transaction is expected to be completed by December 2026.
Couche-Tard said it would delist Zabka once it acquired at least 95% shares of the company.
The purchase follows Couche-Tard’s unsuccessful pursuit of 7-Eleven owners Seven & I. Last year, the Canadian retailer gave up on that pursuit after claiming that the Japanese group failed to engage constructively in a takeover offer.
Seven & I also explored the possibility of acquiring a share in Zabka this month, but failed to reach an agreement over terms.
Zabka operates approximately?13,000 shops across Poland and Romania.
(source: Reuters)