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Bombardier's quarterly revenues rise 5% due to strong demand for maintenance services
Bombardier, a Canadian business jet manufacturer, reported on Thursday a 5% increase in revenue for the first quarter. This was aided by a robust demand for maintenance and repair services as well as a new plane delivery compared to a year ago. The demand for parts and services to maintain its growing global jet fleet was strong, particularly in the U.S. This led to a 25% increase on the previous year. The Middle East conflict has caused jet fuel prices to rise, but private aviation is still largely resilient. CEO Eric Martel stated in a statement that the plane maker generated $360 in free cash flow during the first quarter. This was its highest level for a quarter in nearly two decades. The $360 million in free cash flow was a significant increase from the $304 millions used during the previous quarter. Bombardier has raised its outlook for free cash flow in 2026 to more than 1 billion dollars, up from an earlier range of $600 to $1 billion. The company reiterated its plans to deliver more than 157 aircraft this year. Bombardier has received new orders for the Global 8000 'ultra-long range business jet', which was recently certified. This is due to the sustained demand -for private -flying. The Montreal-based firm delivered 24 aircraft during the quarter, which is one more than it did in the same period last year. The company reported a quarterly revenue of $1.6 Billion, up from $1.52 Billion a year ago. On a recalculated basis, Bombardier earned $1.81 per share during the first quarter of this year, compared to 61 cents.
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IMF urges Asia to maintain policy balance amid Middle East Energy Disruptions
Krishna Srinivasan, IMF director for Asia Pacific, said that Asian countries need to prepare for future shocks while they deal with the energy crisis brought on by 'the Iran War'. Southeast Asian economies budgeted large sums of money to offset the price hikes and introduced energy-saving measures, such as work from home plans. Srinivasan warned against a massive increase in energy subsidies at a roundtable of media. He said that it is difficult to reverse generalised subsidies. Instead, countries should provide budget neutral fiscal support and maintain fiscal discipline. He said, "In other words, cut somewhere else to support those who are being affected by the energy crisis." Srinivasan stated that while certain markets, like Thailand and China, could hold off tightening their monetary policies because they were in deflationary terrain, those already exceeding their inflation target, such as Australia, needed to begin now. He noted that some markets, like the Philippines, had tightened preemptively in order to anchor inflation expectations. However, he said that the IMF would have advised to wait and see if the inflation actually picked up. He said: "You can choose to buy insurance up front or wait to see if you want to hurt the growth. It's a difficult balance for a central banker to achieve." IMF reduced its global GDP forecast for 2026 on 'April 14 to 3.1%, assuming that the Middle East conflict would be short-lived and that oil prices would normalize in the second half of the year. IMF Chief Economist Pierre-Olivier Gourinchas has warned that a "disadvantageous scenario" of 2.5% is becoming more likely due to the continued disruptions in energy and the lack of a clear way out of the conflict. Srinivasan stated that the IMF's most severe growth scenarios would become more likely if the Strait of Hormuz remained closed for longer than the next three month and oil prices stayed high throughout the rest the year. He said that there are still downside risks to growth. The world economy is facing a number uncertainties, such as the length of the energy crises and the severity in which fertiliser shortages could occur. This could lead to a shock in the food supply.
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In March, China approved large-scale exports of rare Earth essential for US aerospace.
China has exported large quantities of a rare earth used in chip-making and aerospace to the United States. Customs data showed that in March, tight controls, which caused shortages and record-high prices, could be loosening. The 60-ton shipment is 50 percent larger than the total yttrium shipped to the U.S. from China since April, when China implemented export controls on several rare earths at the height of the trade war. While rare earth exports were mostly resumed following a 'trade truce' late last year, the yttrium shipment was largely stuck. This caused shortages and production stops for aerospace and semiconductor companies. Prices rose by 6,900% over the past 12 months, and several companies affected lobbied Washington for a resolution. To protect turbines and jet engines from high temperatures, yttrium oxide can be used to make coatings. Analysts say that the close relationship between aerospace and defense may have been a factor in Beijing's hesitation to allow exports. Even after the?March?shipment, the yttrium oxychloride exports to the U.S. in the last 12?months have dropped 75% from the previous year. In March, there were no other shipments of yttrium metals or compounds.
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TotalEnergies, Nextnorth to build $300 million Philippine Solar Farm
By America Hernandez PARIS, 30 April - French oil major TotalEnergies, and Philippine renewables developer Nextnorth, have announced that they have started construction on a 440 Megawatt-peak Solar Park in the Asian nation. The $300 million project is scheduled to be 'online' by the end of 2027 and will produce 1.2 Terawatt-hours over a period of?20 Years. The remaining half will go to the national grid in the fourth renewable tender round. Total, unlike other oil companies that have walked back on their renewable commitments has expanded its green portfolio. Most recently, it formed a joint venture, with Emirati company Masdar, to develop wind, sun and batteries in Asian nations which are heavily reliant on natural gas imported. Energy security is more important than ever for the Philippines. Nextnorth CEO Miguel Mapa said that the country needed a large, affordable, domestic renewable energy capacity to meet a growing demand and a heavy dependence on imported fuels. Sumitomo Mitsui Banking Corporation and ING Bank NV are among the financial institutions that offer loans. TotalEnergies is putting 65% of its stake in the project into a renewable joint venture it has with Masdar. Nextnorth will hold 35%. (Reporting by America Hernandez in Paris. Mark Potter (Editing)
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ASIA GOLD - India gold demand is declining, while China premiums are rising ahead of the holiday
The demand for gold in India slowed this week due to volatile global prices and the weaker rupee. Meanwhile, premiums from China rose as they stocked up ahead of May Day. Indian dealers quoted discounts This week, premiums up to $9 per ounce, including 6% import duties and 3% sales taxes, are down to as low as $5, compared to the $15 premium last week. Chanda Venkatesh is the managing director of CapsGold, a bullion dealer based in Hyderabad. She said that after Akshaya Tritiya, jewellers have seen a drop in footfall and retail demand. On Thursday, domestic gold prices traded at around 150,300 rupies per 10 grams after reaching a month-high of 155 065 rupies earlier in the month. A Mumbai-based gold dealer said that jewellers were not making new?purchases because they receive a lot of old jewellery as exchange for the new ornaments. They also expect demand to be?subdued owing to higher prices. The international spot gold price is up by about 11% this year. The World Gold Council reported that global gold demand increased 2% in the first quarter 2026, as central banks and gold bar buyers offset a decline of 23% in jewellery demand. Bullion is traded at a premium in China, the world's largest consumer. Last week, the premium was $9 to $12. "China's Gold Premium has Edged Higher, Supported?by a Mix of?Industrial Stockpiling, Safe-haven Substitution, and Traders Building Inventory Ahead of the Long Public Holidays," Bernard Sin, Regional Director of Greater China at MKS PAMP. From May 1 to 5, the Chinese markets will be closed. Sin said that "import quotas are still a major factor. While market participants expect a possible loosening of restrictions, the current restrictions keep supply restricted? and reinforce the premium." In ?Hong Kong, gold In Japan, the price of a dollar was equal to a $2 premium. Gold was sold for $0.50 off. In Singapore Gold was sold with discounts of $0.50 and premiums of $3. (Reporting from Pablo Sinha, Bengaluru; Swati Jadhav, Mumbai; Additional reporting by Mrigank Dahniwala).
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Dalian iron ore companies on positive China factory activity data
Dalian iron-ore futures posted their third weekly gain in a row on Thursday as positive factory activity data from China boosted demand prospects for the second largest economy. The September Iron Ore Contract, the most traded on China's Dalian Commodity Exchange(DCE), closed daytime trading 1.6% higher. It had reached a monthly peak of 802.5 Yuan earlier in session. The contract gained 0.95% per week and 0.44% per month. The Chinese markets will be closed from May 1 to 5, for holiday. As of 0711 GMT, the benchmark June iron ore traded on Singapore Exchange was 0.88% higher. It cost $107.35 per ton. The contract is up 1.2% this week. According to the National Bureau of Statistics, China's factory output grew for a second consecutive month in April, largely due to increased stockpiling and firmer production. This suggests that growth momentum was maintained despite external shocks resulting from the Middle East conflict. The official purchasing managers' manufacturing index, which distinguishes between growth and contraction, remained above 50, coming in at 50.3. The median poll forecast was 50. This survey follows better than expected first-quarter economic growth. It highlights a resilient economy. However, prolonged inflationary pressures may weigh on the external demand that is relied on by the country to offset its tepid internal consumption. On Wednesday, China's largest listed steelmaker Baoshan Iron & Steel reported a 8.6% drop in its first-quarter profit. This was due to higher feedstock costs. Steel prices dropped 4.4% while iron ore prices rose 3.2% in the first three months of the year, reducing margins. This is according to Baosteel a subsidiary of the state-owned China Baowu Steel Group. The DCE also shows that the price of coking coal (coke) and other steelmaking ingredients, such as?coking-coal,? increased by?1.7% and 1.1% respectively. The Shanghai Futures Exchange saw gains in most steel benchmarks. Rebar gained 1.04%; hot-rolled coil firmed up 1.03%; wire rod hardened by 2.2%, and stainless steel traded at a flat rate.
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Saudi GDP growth drops to 2.8% during the first quarter due to Iran war.
ABU DHABI 30 April - Saudi Arabian real gross domestic products grew by 2.8% year-on year in the first quarter of this year, according to preliminary government estimates. This is a slowdown from the 3.7% growth a year earlier, as the 'economic impact' of the U.S. and Israeli 'war on Iran' on 'the 'world's largest oil exporter' becomes apparent. In response to U.S. and Israeli strikes that began late February, Tehran has launched attacks against Gulf states. These have caused major damage to energy facilities, and disrupted shipping in the Strait of Hormuz which normally handles about 20% of 'global oil and liquefied gas flows. Analysts say that the economic growth of Gulf states is expected to be sharply slowed this year. Several economies are forecast to contract in 2019 before recovering in 2027. General Authority of Statistics data shows that non-oil activity grew by 2.8% and oil activity grew by 2.3% compared to the same period last year. Non-oil activities grew 5.5% in the same quarter of last year. Oil activity declined by 7.2% in the quarter to March 31, resulting in a 1.5% decline in growth on a quarterly level. Oil activity fell 7.2% compared to the fourth quarter. Non-oil activities were almost unchanged. Saudi Arabia began to increase oil production during the second half of last year, after it eased voluntary curbs that had been implemented over several years in order to support the oil market. The International Monetary Fund stated that the Kingdom is expected to be less affected by the conflict than its Gulf neighbours because it has the ability to'redirect some exports via alternative routes and due to the relatively more resilient industrial production of non-oil. The International Monetary Fund has lowered its growth forecast for Saudi Arabia in 2026 to 3.1%. This is 1.4 percentage points below a January projection. An analyst poll predicted GDP growth of 2.6% for 2026.
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Why $100 oil no longer scares equity markets, Stephen Jen
Why are global equity markets so resilient to the Iran Oil shock? Oil at $100 per barrel 'doesn’t mean the same thing it used to. Brent crude is up around 70% in price since the Iran War began on February 28, to $120 per barrel as of Thursday morning. Despite their volatility, global equity markets are still significantly above pre-war levels. There are a number of explanations but the most important one is rooted in mathematics. Fatih Birol is the head of the International Energy Agency. He has called the current oil crisis the worst ever - worse than the ones in 1973, 1979, or 2022. He says that the Strait of Hormuz closure and the war have affected crude oil supplies by 12 million barrels a day. Also, other energy shipments were affected. Birol claims that this is "the worst oil shock in history" compared to 1973's OPEC embargo, which caused 5 million bpd losses. If we adjust for inflation, and energy consumption, as a percent of the gross domestic product, both price increases and supply destruction do not appear as severe. The equity markets' resilience also appears more reasonable. The denominator is important. First, it's important to compare the destruction of supply in relative terms and not across time. According to the IEA, the global oil consumption in the 1970s was 50 million bpd. This figure had doubled before the Iran War. The 5 million bpd was a lot higher back then. The global economy is also less oil-intensive. The global oil consumption has increased over the years, but as a proportion of GDP, this has declined. This is known as "oil intensities." According to the U.S. Bureau of Labor Statistics, this ratio is about a third of 1973. To compare oil shocks over decades, it is also necessary to take into account inflation, which has increased by 650% in the U.S. since?the 1970s. Our econometric estimations suggest that $100 per barrel today is the same as $50 before the Global Financial Crisis, or $5 in 1973. U.S. EXCEPTIONALISM It appears that the U.S. economy has?become less vulnerable to a shock to oil of this magnitude. Based on the assumptions made above, our analysis indicates that a 50% oil price shock had a negative impact of 1.0% on U.S. Gross Domestic Product (GDP) over eight quarters in 1970, but would have only a 0.2% negative impact today. Our analysis suggests that the impact of large oil price shocks in the U.S. on inflation has declined to about a quarter the level of five decades ago. The U.S. is also better placed than other regions. Oil price increases can have a negative multiplier effect on real economies - adjusted for inflation - but the multiplier effects vary between countries. According to our econometric estimations, the U.S. has become half as sensitive as Europe or Asia to increases in oil prices. The gap has increased over time as the U.S. became more self-sufficient in hydrocarbons as a result the shale gas boom. The U.S. is still heavily dependent on energy prices. However, the industries that are most affected by them, such as manufacturing, are now a smaller part of the economy. Strong Fundamentals It is important to remember that global economic growth - in particular the U.S. - was quite robust before the Iran War. This is partly due to the massive transfers from the public to private sector during the COVID-19 Pandemic. The government's generosity has improved the financial situation of many households and businesses in major economies. The tech race, and the massive capital expenditures associated with it - mainly in the U.S.A. and China – continue to drive the global economy. History shows that a world where there is more competition between global powers - rather than less - will generate greater economic growth. Of course, I'm not saying that high oil costs have no effect on economic growth or inflation. If oil prices spiked much higher, say closer to $200, then U.S. recession risks and global inflation concerns could overwhelm inflation worries, resulting in lower equity prices, stronger dollar and lower yields on bonds. Overall, however, global?economy may be more tolerant of oil shocks than many think. Oil prices will remain broadly range bound as long as they do. You like this column? Open Interest (ROI) is your new essential source of 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.
Neste, a biofuel manufacturer, expects a limited impact of tariffs. However, the supply glut is still weighing on them.
Neste, a Finnish biofuel producer and oil refiner, expects U.S. Tariffs to have only a small direct impact on their business. However, they warned about the oversupply of renewable fuels and market volatility.
Heikki malinen, Neste's Chief Executive Officer said that "we expect European policymakers will safeguard an equal playing field and the competitiveness of European Industrial Companies."
The Finnish group warned that it would continue to face challenges in the future due to the excess supply of renewable fuels, the weak global economy and the low demand for these fuels.
Neste, a company that has a joint-venture with Marathon Petroleum California, said the U.S. was still incredibly important to the business. Malinen stated that the removal of Blender's tax credit (BTC) led the company, however, to optimize its Singapore shipments. BTC was an initiative to provide clean fuel tax credit that the Biden administration proposed, but then scrapped.
The company's comparable earnings before interest taxes, depreciation, and amortization (EBITDA), which were 210 million euro ($239.15 millions) a year ago, fell by 62%. Malinen described the performance as "unsatisfactory".
According to a consensus provided by the company, analysts had predicted a median of 211.7 million euro.
Neste's margin on renewable products fell to $310 a tonne during the quarter, down from $526 a tonne at the beginning of 2024. This was better than the average expectation of $250 per tonne.
While the company still expects to see its margins improve by 2025, the company warned about the impact of oil price fluctuations amid geopolitical unrest.
Before
April is a month of celebrations.
The group has reduced 510 positions worldwide, resulting in an annual saving of 65 million euros.
Neste shares rose more than 10% at Helsinki's 0725 GMT. ($1 = 0.8781 euro) (Reporting and editing by Andrew Heavens; Kirsten Donovan, Kate Mayberry and Boleslaw LaSocki)
(source: Reuters)