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India's ONGC will reserve half of its new oil storage space for strategic reserves
Suresh Gopi, India's junior oil minister, told lawmakers that the Oil and Natural Gas Corp would reserve half of their planned 1,75 million metric tons (about 13,000,000 barrels)oil-storage facility in order to meet strategic needs for the country. ONGC is India's largest oil explorer and announced last month plans to build a strategic?petroleum storage facility at Mangaluru, Karnataka, where its Mangalore Refinery & Petrochemicals subsidiary operates a refinery that can process 300,000 barrels of crude oil per day. New Delhi has expanded its Strategic Petroleum Reserve with private participation. Indian regulations allow commercial use of a portion of the existing SPR storage in southern India, built at three different locations: Mangaluru (in southern India), Padur (in central India) and Vizag (5.33 million tons). The Indian Strategic Petroleum Reserves Ltd. (ISPRL) manages these storage facilities. MRPL already leased the half of the?1.5million ton Mangaluru SSPR. Gopi said India also has the ability to store crude oil, petroleum products, and offshore facilities to meet 74 days' worth of its net crude import requirements, including inventories in refinery tanks, offshore installations, and its 35,000 km (22,000 mile) pipeline network. India is planning to build a strategic storage facility of about 4 million tons at Chandikhol, in the eastern state of Odisha. A new facility of 2.5 million tons will be built at Padur, in southern India. Gopi stated that ISPRL had?acquired land for the Chandikhol Project, which is estimated at 90 billion Indian Rupees (944.44 million dollars).
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Thyssenkrupp aims to complete the spin-off of its Materials Trading Unit by October end.
Thyssenkrupp said on Monday that it expects the planned'spinoff' of its tk -accelis division, which deals with materials trading, to take effect at the end October. This was according to comments for a upcoming shareholder meeting posted on the company website. Thyssenkrupp said it will register?the spinoff? in the relevant commercial registries by the end of August. Thyssenkrupp, aiming to become a holding firm, announced plans in June to spin off its division, which accounts for almost a third of group sales. At an extraordinary meeting, shareholders will vote on whether or not to spin-off 49% of division. In an interview with Handelsblatt published on Monday, Ilse?Henne, the CEO of the unit, said: "We have already had very positive discussions" Henne told The Paper that the spin-off will allow the unit to drive their 'own growth' in high-margin industries, with the expansion planned focusing primarily on North America. Henne stated that 'additional to organic growth', Henne also said growth through acquisitions was on the table. The Supervisory board of?tk Accelis Group AG and?Co. KGaA, according to Monday's remarks, will consist of a total 10 members.
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MORNING BID AMERICAS - Much 'to Do' about yen interventions
What is important in the U.S. and international markets today by Mike Dolan Editor-at-Large of Finance and Markets The yen strengthened further on Monday, as the U.S. government and Japanese government confirmed their first joint interventions since 2011 to "prop up" the ailing currency. The timing and the impact of this move will be closely examined. Below, I'll go into more detail about that. Listen to the latest episode of the Morning Bid podcast. We discuss the 'historic' intervention, U.S. earnings growth, and the latest news on Iran. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. MUCH "TO DO" ABOUT THE YEN INVESTIGATION There are many questions regarding the timing of Friday’s joint yen-intervention. Last week, the Bank of Japan delayed a second interest rate increase, in part because of the recent earthquake that struck the country. Perhaps Tokyo and Washington were worried about the impact of this decision on the yen. There's also the possibility of a Federal Reserve interest rate increase as early as next month. Scott Bessent revealed that the U.S. will spend between $5 and $10 billion. Both sides are determined to continue the effort, whether it is successful or not. The fallout could 'aggravate U.S. Bond yields, on the assumption that Japan - the largest overseas creditor of the U.S. Government - would liquidate Treasuries in order to raise dollars to sell. Bessent said, however, that a Fed Repo facility was activated using Japan's bonds as collateral. Treasuries are also benefiting from the latest pause by President Trump in his bombing of Iran. This comes at a time when he is claiming that fresh talks will take place between both sides on Monday. Oil prices fell over 5% as a result of the recent development, to below $84 a barrel. Asia's stock markets began the week with a loss, as South Korea's volatile KOSPI fell more than 5% after a record rally on Friday. Wall Street futures were higher before the bell. This week, the U.S. employment report for July will be released, and the U.S. earning season continues, with companies like Palantir AMD, SpaceX, and AMD reporting. LSEG data shows that the S&P 500 aggregate annual profit growth reached a staggering 47% in second quarter. This is almost twice as much as was predicted a month earlier, thanks to the combination of Big Tech's AI push and a record-breaking quarter for Big Oil and Big Banks. In recent decades, this level of growth was only surpassed by the rebound from the pandemic recessions and the banking crash. There's no recession this time, but there was one in the past. The staggering growth in earnings helps to explain why dip-buying, sectoral rotation and not cashing out are preferred responses to the recent volatility on Wall Street. AstraZeneca's shares dropped sharply Monday after reports that merger talks were underway with Bristol Myers Squibb. This would have created one of the largest drugmakers in the world with a combined worth of $400 billion. Chart of the Day The U.S. & Japan bought?yen last week against the dollar & euro in their first joint action since 2011. They promised to take more action if and when needed. The yen briefly reached its highest levels since early May, after the U.S. and Japan intervened last week. Sanae Takaichi has been in office for nine months and during that time, currency weakness has become a feature of her tenure as Prime Minister. The Bank of Japan's perceived pressure to not raise interest rates and the recent fiscal spending of Japan have all been factors. But so has speculation over how Japan will finance the hundreds of billions of dollars of U.S. investment pledged in the bilateral trade agreement between the two nations. Watch today's events * U.S. ISM manufacturing PMI for the month of July (10 am EDT) Palantir: * U.S. Corporate earnings Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent those of News. News is bound by the Trust Principles to maintain integrity, independence and freedom from bias. (By Mike Dolan).
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Greek crews continue to fight wildfires northwest of Athens
On Monday, hundreds of Greek firefighters fought a wildfire north of Athens for a fourth consecutive day after strong winds fanned the flames that destroyed thousands of hectares and pine forests and ruined homes. A Greek and a Danish citizen died after a helicopter crash on Sunday, after they had a close call with another helicopter in mid-air. The crew of a second firefighting helicopter, consisting of a Greek and Briton, also survived the incident. It occurred near the seaside village of Psatha about 40 miles south of Athens. Images showed that 21 aircraft and strong firefighting units were deployed early Monday near the communities Kandili, and?Agia Skepi as plumes of black smoke and flames enveloped lush pine forests. A Greek fire brigade official said that local authorities used heavy machinery to create fire breaks in order to prevent the wildfires from spreading. Wildfires have ravaged Europe this summer, following a period of record heat and low rainfall. Scientists say that the fast-changing climate has exacerbated these conditions. France and Spain were?particularly hard-hit, although the destructive fires there have abated at the weekend. Faulty power lines The Sunday air crash comes after a bleak week for the Greek emergency services. On July 29, three firefighters died in separate incidents on Crete and the Peloponnese, a startling beginning to a season of fires that had been, by local standards, relatively mild. The Greek authorities are trying their best to determine the cause of a mid-air collision between two helicopters. They were both flying low and the rotorblades of one appeared to hit the undersides of the other. Kostas Katsafados, Deputy Climate Crisis -Minister, told ERT that the impact of climate change is causing an unequal fight. Strong winds in recent days prevented water bombers from dumping seawater into the affected area. This left 'ground forces' to battle the fires alone. The Greek fire brigade reported that a preliminary investigation indicates the cause of the recent fire outbreak, which started in the area of Boeotia northwest of Athens and spread to a pine forest near Athens, was sparks from vibrating conductors of a private power line carrying electricity from wind turbines. Two Greek nationals - an electrical engineer and a contracting firm - have been arrested on felony charges for arson. In recent years, Greece's wildfires have been primarily caused by faulty power lines. This is more than arson or negligence. (Additional reporting and writing by Angeliki Kooutantou, Renee Maltezou, LefterisPapadimas. Editing by Susan Fenton.
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Copper prices rise on the back of falling inventories
Copper prices reached their highest level in over a week Monday, as lower oil costs eased concerns about economic growth and demand. The market was also focusing on dwindling stocks. Benchmark copper prices on the London Metal Exchange were up 0.6% to $13,876 per metric ton at 0903 GMT, after reaching $13,900. This was their highest price since July 22. The drop in oil after U.S. president Donald Trump called off his 'fresh attack' on Iran to seek a deal that would curb Tehran’s nuclear ambitions eased concerns about price pressures, according to traders. Britannia Global Markets stated in a report that "the markets are still headline driven as we begin the week. Energy markets remain the main focus." The underlying fundamental picture for copper appears to be supportive. The inventories in the London Metal Exchange and China Metal Exchange are in a depletion state. The copper stocks registered at the LME have dropped by nearly 40% since May, to 244,025 tonnes. This is their lowest level since February. Since February of last year, producers and traders have shipped copper to the United States, after President Donald Trump threatened to impose import tariffs. This created a premium in U.S. Copper over LME Prices. The U.S. Commerce Department had to finish a review on the copper market before?June 30 but Trump hasn't yet announced any decision regarding tariffs. Nickel prices fell in other parts of the world after Indonesia resumed its exports. This eased supply concerns for the near future. The contract for three months was down by 1.2% at $17,040 per ton. Indonesia's Chief of Staff Dudung Abdurachman said the ban only applied when rare earths was the primary product. The clarification has reportedly reduced the 'fear of prolonged disruptions to Indonesian nickel shipments. Officials have yet to finalise testing procedures and concentration limits. Other metals saw a 1% gain in aluminium to $3.215 per ton. Zinc rose 1.1% to $3.682 and tin remained unchanged at $55,295.
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Oil prices fall on hopes for a peace agreement with Iran and yen firms following intervention
On Monday, oil prices plunged sharply and European stock markets rose as hopes grew of a peace agreement in the Middle East. Meanwhile, the yen strengthened?to an all-time high after the U.S. confirmed a joint intervention to?support a weak currency. Brent crude futures fell $4.50 or more than 5% to $83.40 per barrel after U.S. president Donald Trump announced that talks with Iran would take place on Monday. He had previously called off an assault on Iran in order to pursue a plan to reopen Strait of Hormuz. European stocks rose 0.4% on Monday, kicking off August in a positive note. The German DAX set an intra-day high and closed the day up 1.3%. Bruno Schneller is the managing partner of multi-family office Erlen Capital Management. He said that "for equity markets, fundamentally, the picture remains positive". Companies with resilient business models and strong pricing power continue to outperform. S&P futures increased by 0.5%, while Nasdaq Futures gained 0.6%. Florian Ielpo's research, Monday, as head of macro for Lombard Odier Investment Managers noted, showed that 86% of companies had surpassed earnings expectations. Asian stocks suffered as the new month began, following a turbulent and wild July that saw investors worry about massive investments in AI. Japan's Nikkei fell 1% while South Korea's KOSPI dropped more than 5%. The MSCI world stock index was flat as a result. YEN BEAR COWER FOLLOWING JOINT INTERVENTION The Japanese yen gained over 0.5% to 156.70 US dollars after a sudden movement earlier in the day, when it reached its highest since early May at 155.2. This put traders on high alert for further intervention. Japan's Finance Ministry confirmed on Monday that the U.S. and Japan conducted a coordinated yen buying intervention, and they will not hesitate to continue, as a rare bilateral measure to stop the yen from falling to its lowest level in 40 years. U.S. Treasury Sec. Scott Bessent said that the United States will also consider in the coming months increasing the size of Federal Reserve's Repurchase Facility providing temporary dollar liquidity, calling this tool an "important backup". Matt Simpson, senior market analyst at StoneX, said that Besent's comments carry more weight than his intervention. It feels like the Japanese yen is at its lowest level for the year. "Joint Intervention" is a phrase that has a lot weight on these markets, and it's rarely used." Trump said that the United States helped Japan to 'prop up the yen' as a show of friendship and in order to help the global economy. Tokyo's unilateral intervention between late April to early May caused only a short?yen recovery, whereas a rate increase in June by the Bank of Japan gave little support, underlining the challenges policymakers face due to rising oil prices and an interest-rate gap with other major economies. Before the recent interventions, the yen was rooted at a 40-year low of 163.99 dollars per yen, and net short positions were around $12.5 billion. This is the largest amount of money that has been held in the yen in the past two years. Masahiko loo, senior fixed-income strategist at State Street Investment Management, said that 155 is the next level to watch. Bessent's?actions and comments, in which he repeated his call for further interest rate hikes from the BOJ, have brought monetary policy into focus. Elsewhere, ?U.S. Treasury yields fell as oil prices dropped. The 30-year bond yield fell 4.5 basis point to around 5.23%. This is a slight decline from the 19-year high reached last week. Investors were confused by the Iran War and the Federal Reserve's policy outlook in July. Reporting by Nell Mackenzie and Ankur Banerjee, both in London; editing by Muralikumar Anantharaman and Jacqueline Wong.
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UK bond yields drop as oil prices fall on renewed hope for a peace agreement with Iran
British government bond yields fell 'on Monday, as oil prices dropped by $4 per barrel after U.S. president Donald 'Trump announced that he would be resuming talks with Iran and calling off military strikes. At 0715 GMT, the yields on two-year gilts, which are sensitive to interest rate forecasts in the short-term, fell by?around nine basis points to 4.325%. This was a greater fall than that of German or U.S. government bonds. The 10-year gilt yields fell?below 5 percent, falling by?8 basis points to 4.975%. Meanwhile, the 30-year gilt rates were also 8 basis points lower at 5.702%. Michiel Tukker is ING's senior UK and Euro zone rates strategist. The relationship between rates and oil prices is not easing. Tukker said that the longer oil prices are elevated, the greater the chance of a second-round inflation effect. Suban Abdulla reported; David Milliken edited.
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South Korean stocks plunge over 5% in August, as chipmakers are the main culprits
South Korean shares closed more than 5% down on Monday. The start of August was a rough one as investors sold off the heavyweight chipmakers after a record rally in the previous session. The benchmark KOSPI index fell 5.1% to 6,257.45 after surging by 18% in the previous session. The gauge, however, fell 22.2% during July for its biggest monthly decline since October 2008. The stock market in Seoul has been slashed due to a rapid winding down of leveraged bets on heavyweight chipmakers, and concerns about the durability of capital expenditures by AI hyperscalers. The record Friday rally was followed by fresh selling on the Monday after, highlighting the fragile sentiment surrounding AI investments and the outsized impact of leveraged retail betting on the heavyweight chipmakers. Samsung Electronics, and its rival SK Hynix, which together account for over half of the KOSPI Index, have shed 9% and 8,7% respectively. "Today's drop is better interpreted as a rebalancing of positions rather than a fundamental change." Billy Leung is an investment strategist with Global X ETFs Australia. He said that Korean equities are now a "high beta proxy" for global AI sentiment. The near-term path will remain volatile, given the amount of leverage in the system. However, the demand background underneath the volatility remains strong. William Bratton of BNP Paribas' Cash Equity Research in APAC says that the KOSPI volatility can be seen by the sharp swings this year. 32 of 42 daily movements of over 5% during the last decade occurred this year, as of July 31. Regulators introduced measures to limit the impact of highly volatile financial instruments. Investors remain unsure whether these measures will be enough to survive the current market slump. Bratton noted that "our discussions with investors indicate a high level of frustration" because the current market volatility is overshadowing the fundamental story. Data showed that 'July exports exceeded market expectations due to a 179% increase in semiconductor shipments. A purchasing managers survey conducted by S&P Global also revealed that factory activity was expanding at a faster pace in July, based on the export demand. Other automakers in the KOSPI were?Hyundai Motor, and Kia Corp, which is a sister company, both rose 1.3%, and fell 1.7%. According to exchange data, foreigners sold shares worth $2,826.2 billion ($1.98 billion), after selling a total amount of $9.86 trillion in July. According to a source, the won strengthened to 1,426.20 against the U.S. Dollar, but it remained below its 1,418-level reached last Thursday, after foreign exchange authorities made a rare dollar selling intervention.
SpaceX is seen as a test that will determine whether mega-IPOs succeed or fail
Elon Musk's spaceX could be the break-through that global IPO market needs. Saudi Aramco was the last company to debut on the market with a valuation of over one trillion dollars in 2019.
SpaceX has all the ingredients the IPO market?has been looking for to end a long-term drought of mega-deals. It is a company with a valuation over "trillion dollars", a CEO who enjoys cult like retail support, and exposure to a?high-growth?industry.
Investors' appetite for an IPO of this magnitude is still uncertain. Analysts and experts say that the company's success is unique, so it could only have a limited impact on broader market sentiment.
Brian Jacobsen is the chief economist at Annex Wealth Management.
Here are some charts that show the market's current status and SpaceX IPO's potential: WORLD'S BIGGEST IPO ON THE HORIZON The rocket startup has confidentially filed for a blockbuster listing,?looking to raise $50 billion or more, which could value it at $1.75 trillion, potentially dethroning oil giant Saudi Aramco as the world’s largest IPO. Here are charts showing the current market status and SpaceX's IPO potential:
Samuel Kerr is the global head of equity markets at Mergermarket. He said that SpaceX would be the largest ever IPO.
It will be a test of public market capability in a period of real market turmoil. SpaceX is probably the only business that can list on this market given its tremendous hype.
SpaceX registered confidentially for an IPO - on Wednesday, according to a report citing a reliable source. PIVOTAL TESTING SpaceX's listing - could serve as a bellwether of the IPO market. A positive reception could indicate the long-awaited return of big-ticket deals.
Issuers waited for years as markets were volatile, driven by inflation fears, rising interest rates and geopolitical tensions. Industry hopes that 2026 will see a resurgence of market debuts.
Kat Liu is vice president of IPOX, a research firm that specializes in IPOs.
It would show that the public markets are able to accept large, high-value offerings and validate late-stage pricing on the private market.
TRILLION DOLLAR CLUB Several high profile startups, such as SpaceX, ChatGPT maker OpenAI, and TikTok owner ByteDance have blurred lines between public and private companies with valuations that are comparable to those of the top-tier S&P500 firms.
SpaceX's listing will put it on par with mega-cap giants like Microsoft and Apple, which attract the majority of retail and institutional investor flows.
Elon Musk announced in February that SpaceX acquired his artificial-intelligence startup xAI, in a deal of unprecedented proportions. SpaceX was valued at $1 trillion, and xAI, at $250 billion. This is what a report citing a reliable source said.
The recent xAI integration allows Musk to bundle Starlink, launch and AI into a scarce, mega-story that can support a higher valuation than what the businesses could achieve separately, said Minmo Gahng. Assistant professor of finance, Cornell University.
SpaceX reported that it generated an $8 billion profit last year on revenues between $15 billion and $16 billion, according to a January report citing sources familiar with the issue.
Current State of Play An index that tracks major listings underperformed the equities benchmark in the last 12 months.
Analysts believe that a successful SpaceX debut could help to reopen the door for large, delayed listings, especially in capital-intensive industries which have struggled with attracting public market investors.
Some have a more conservative view of the market's future.
Kerr, from Mergermarket, said that "(SpaceX could) take up so many capacity that other mega issues might decide to wait and not test the same window."
(source: Reuters)