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China's CiDi aims to sell autonomous mining machines overseas this year
Chief Executive Albert Hu, of the Hong Kong listed Chinese mining equipment manufacturer CiDi, said that it expects overseas deployments to grow this year, as it expands "beyond China". Hu stated that CiDi had equipped semi-automated autonomous excavators with the company in Australia. The company is now preparing to roll out a more extensive program in Australia this year. It will also be working on securing contracts in South America, Europe and the Middle East. CiDi, along with rivals such as Fujian's EACON, are competing to supply self-driving mining equipment and trucks. This will reduce labour costs and fuel consumption while improving safety. Hu stated that CiDi has also developed robotic machines for explosive hauling, drilling, and drilling, which are "very precise, dangerous" jobs. He said that some of his trucks now have robotic arms. "Is that a truck?" Is it a truck? "We're blurring lines between the two." Hu claimed that CiDi could grow faster than China’s autonomous mining equipment industry. He anticipates that overseas markets will contribute a double-digit percent of revenue to the company's total next year. CiDi, unlike its rivals who operate truck fleets and leave manufacturing to their partners, sells both hardware and software to mine operators. Hu calls this a "asset-light model". CiDi's revenue last year, which is expected to be 884.8 million Yuan ($130.6 millions) when it goes public in 2025, more than doubled. Hu stated that deployments and revenue in China grew by 374%, compared to 73% for China’s industry. ROBOTS AT THE WORKSHOP At an open pit quarry in Jurong (Jiangsu Province), owned by the cement conglomerate TCC Group Holdings on Friday, 12 unmanned, fully-electric trucks drove across the site, charging or hauling limestone autonomously to crushing facilities. CiDi claims that the fleet is the world's first self-driving and fully electric mining truck fleet. China is the leader in the world for the use of autonomous mining trucks. Approximately 10% of trucks are now driverless. CiDi has a global fleet of more than 1,700 vehicles spread across 30 coal and quarries, mostly in China. Hu says that a single operator can remotely monitor up to 100 trucks. Hu explained that CiDi’s competitive edge is based on the ability to coordinate the movement of its fleet, especially in large coal mines with up to 500 autonomous trucks operating at the same time. "That is a huge technological threshold for anyone working in this area." CiDi also designs robots for drilling and blasting. Hu explained that "we're not just talking about a few kilos TNT." "We're referring to a truckload that has to be rammed into the side of the hill in order to blow up the rocks." In the third quarter, explosive-handling robots equipped with CiDi will be available. Drilling robots are also expected to arrive in Inner Mongolia and Shanxi provinces. Hu stated that CiDi is in a partnership with British mining machinery maker MMD Group, and it's looking for other partners, such as Chinese mine operators, to expand overseas.
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Wall St Week Ahead: US stocks will be tested by the Fed's decision and a tech-led earnings deluge
The wobbly U.S. Stock Market will be influenced by a Federal Reserve Meeting?set to shed some light on interest rate policy, as well as a slate of earnings from technology companies and artificial intelligence heavyweights. The major equity indexes are on course for a weekly decline, with Alphabet and Tesla's quarterly results dragging them down. Alphabet's fallout, which was sparked by an increase to its already massive AI budget, has set a negative tone for the results of other AI "hyperscalers", such as Microsoft, Amazon, and Meta Platforms, due next week. AI-related stocks are at the core of the equity market's gains this year. They have helped drive the bull market into its fourth year. Despite the recent stumble, the S&P 500 benchmark is still up 8% by 2026. The market, according to Kristina Hooper, chief market strategist for Man Group, "feels frothy". Hooper stated that investors are walking on eggshells to some extent. "And they are more likely to react negatively to signs of imperfections." Will the FED hold rates steady? The Fed meeting is taking place at a time when oil prices are surging due to the escalating tensions across the Middle East. Brent crude hit $100 a barrel ?on Thursday. This has led to fears that policymakers may need to raise rates more aggressively to control the inflation rate, which has consistently been well above the Fed’s 2% target. The central bank was expected to hold ?rates steady when it gives its monetary policy statement on Wednesday, with Fed fund futures on Thursday afternoon pricing in a 36% chance of a quarter-percentage-point rate increase, according to LSEG data. Wall Street was still unsure whether the new Fed chair Kevin Warsh would surprise the markets. In a recent note, BNP Paribas' economists stated that "the possibility of a rate shock cannot be completely ruled out." This will be the second meeting under Warsh who has shunned ahead guidance but pledged to bring inflation to target. Paul Nolte is a senior wealth advisor at Murphy & Sylvest Wealth Management and a market strategist. INVESTORS LOOK FOR SIGNS OF FED RATE INCREASE Investors will be looking for clues about future rates, even if Warsh holds the rate steady. Fed funds futures factor in two quarter point rate increases by the January 2027 Meeting. If you have the impression that more committee members are leaning towards multi-hike scenarios for the remainder of the year, I believe that this is going to be a problem. ", said Scott Wren. Senior global market strategist, Wells Fargo Investment Institute. Increased interest rates increase borrowing costs for both consumers and businesses, slowing down the economy and weighing heavily on stocks. These higher rates can also lead to higher Treasury yields which have already been increasing in recent weeks, creating competition among stocks. The 10-year Treasury benchmark yield reached its highest level in early 2025 on Thursday. The yields of bonds move in the opposite direction to their price. Investors will also receive a series of updates next week on the U.S. Economy, including reports on the second-quarter Gross Domestic Product, monthly inflation, and consumer sentiment. BIG EARNINGS INCLUDING BIG SPENDERS ON AI Around one-third S&P 500 firms are expected to report results. This is the busiest reporting week of the second-quarter season. LSEG IBES reported that more than 80 companies had already reported their earnings for the second quarter of 2018, and this was a significant profit increase, which Wall Street anticipated, and incorporated into stock prices before earnings. AI spending is expected to be a major driver of stock price in 2026. This will boost semiconductor companies and firms involved in building data centres and other infrastructure. Investors are also becoming more concerned about the ability of big spenders to recoup massive investments. This issue was raised with Alphabet’s report, and it could affect how investors react to Microsoft's, Amazon's and Meta’s quarterly reports next week. Hooper, from Man Group, said that the companies may easily be able to meet their earnings targets and provide strong guidance for the quarter ahead, but the market will punish them as the investors' perception of AI spending changes. She added, "Where they once saw opportunity, they now are more likely to see risk." Reporting by Lewis Krauskopf, Editing by Michelle Price & David Gregorio
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Games-mining baron Rinehart will pay Australian swimmers bonus for Commonwealth Games medals
Australian swimmers who compete at the Commonwealth Games, in Glasgow, will receive up to A$50,000 (approximately $35,000) in incentives for winning gold medals in world records times. The incentive scheme is funded by Gina Rinehart. She's the richest woman in Australia. Swimming medallists in individual events will receive A$20,000 for gold and A$15,000 or silver, and A$10,000 or bronze. Relay swimmers, however, will receive between A$2,500 to A$5,000 if they finish on the podium. A bonus of A$30,000 will be awarded to swimmers who achieve a world-record. Many of Australia's best swimmers will be expected to win big at Glasgow. In a statement released by?Swimming WA on Friday, mining billionaire Rinehart stated that "these bonuses are Australia's way of saying thank you and expressing the appreciation for our athletes who have brought our country a great sense of pride and accomplishment." There is something very inspiring about watching an 'Australian athlete standing on the podium while our flag is being raised. These exciting times make Australians very proud, and they deserve to be celebrated." Mollie O'Callaghan, who won the gold medal at the Olympics in 2008 in 100 and 200 metre freestyle events, is a likely beneficiary of this scheme. She also has a great chance to win the 50 meter backstroke event. Rinehart, and her company Hancock Prospecting, have been major supporters of Australian swimming in a sport that is characterized by a lack of cash prizes even at the highest levels. World Aquatics, the global governing body of swimming, paid out $4.38million in prize money last year. This included $20,000 in gold medals for the World Championships in Singapore. Cameron McEvoy, Australian Olympic and world champion, lamented not earning a penny for setting the 50m freestyle men's world record in China during a competition this year. The drug-friendly Enhanced games?offered million-dollar bonuses to world record-setters. McEvoy is the favourite to win 50m freestyle at Glasgow, and his first individual Commonwealth Games gold medal after winning minor medals in 2014 & 2018.
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Copper, growth and IMF: what investors are looking at in Zambia's next election
On August 13, Zambians will vote in the presidential and parliamentary election. Investors and pollsters expect President Hakainde Hichilema to defeat an opposition fragmented by Brian Mundubile. Investors should ask if a second Hichilema-led term will be able to turn Zambia's macroeconomic turnaround after default into stronger growth that creates jobs. Investors will be paying attention to the following key issues: PUSH FOR A NEW IMF ?PROGRAMME The previous $1.7 billion programme, which supported the government's restructuring of sovereign debt, that was run by the southern African country with the International 'Monetary' Fund, ended in January. Investors view a new IMF program as the most clear test of policy continuation after the debt restructuring. Two things are of particular interest: the speed with which talks are concluded and if conditions shift from crisis management to growth. A new deal must maintain fiscal discipline and pivot toward growth. THE COPPER SECTOR KEEPS UP BUSINESS Copper is Zambia's backbone, accounting for 70% of its export earnings. It also provides government revenue, jobs, and investment. Investors will watch to see if Zambia can turn its pipeline of foreign direct investments in the copper industry -- including the return of Vedanta and continued investment by Barrick -- into actual production increases, given that it aims to triple the output from the current 1 million tons. Zambia said that it does not plan to alter mining tax rates. Investors will monitor the implementation of a bill that requires miners to increase domestic procurement to 40% over three or four years. Foreign operators may face difficulties in securing supplies or enforcement when they expand. Reforms needed for growth Investors want to see more money spent on exploration. Only two new major mines have been opened in the last decade. Mining is Zambia's main driver of economic growth, accounting for more than 10%. The government must also improve its efficiency in collecting taxes and reform the grain market to allow private buyers and not the government to absorb Zambia's growing surplus of maize. Standard Chartered claims that a bumper harvest of maize, which is expected to?rise this year to a record of 28% on an annual basis, will force government to purchase more grain from farmers. The bank views this, along with election expenditures, as a major source of fiscal stress. The bank projects a fiscal deficit in?2026 of approximately 5.0% of the GDP, which is more than twice the original government target of 2.1%. Investors are concerned that, if the state does not shift to a private sector-led grain marketing strategy, its purchasing obligations will increase as production increases towards the government's 10 million ton target. Power Supply Investors believe that Zambia's ability?to expand copper production will be heavily dependent?on improving the power supply, after drought-related shortages revealed vulnerabilities in the hydroelectric system. Investors will watch to see if reforms can ensure reliable power for planned mine expansions. RISE RISKS Ahead Election monitors have warned of the risks associated with voter-card confiscation, vote-buying and disillusioned youth in urban areas, especially those living on the Copperbelt or northern provinces. Investors also monitor weather and power risk. Zambia is still highly susceptible to drought due to its reliance on hydropower and rain fed agriculture. El Nino 2023-24 caused widespread crop failures. It also led to power shortages that forced severe load-shedding, affecting economic activity. A poor rainy season in the future could have a negative impact on electricity production and economic growth. (Reporting and editing by Karin Strohecker, Clarence Fernandez and Colleen Goko)
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Japan finds a large amount of rare earths in the mud from deep sea off a remote island
The Japanese government announced on Friday that an analysis of rare-earth-rich mud recovered from the deep seabed of a remote Pacific Island in early 'this year revealed that medium and heavy rare elements made up about 54% of the total rare earth content. The company did not reveal the exact size or deposit of the sand, claiming that the sampling was too limited and geographically restricted to provide sufficient data. Chikyu is a Japanese scientific drilling ship that completed a one-month mission near Minamitori Island in February, located about 1,900 kilometers (1,200 miles), southeast of Tokyo. This was the first successful attempt to continuously lift seabed mud containing rare earths from depths as deep as 6 km (4miles). The project comes at a time when Japan is looking to diversify its mineral supply amid tightening Chinese controls on exports of heavy rare earths and related magnets that are vital for the automotive and defence industries. About 50 metric tonnes of mud was recovered. According to the Cabinet Office’s National Platform for Innovative Ocean Development, the analysis revealed yttrium used in aerospace, energy, and semiconductor applications, gadolinium used in magnetic resonance images and other high-tech uses, and dysprosium used in high performance magnets for electric cars. Japan is planning a large-scale mining trial that will last a month in the same waters starting February 2027. The goal is to drill 350 tons of mud per day. The material will be?dewatered on Minamitori Island, and then processed on the mainland to test separation, refining, and smelting technology. Kazushige K. Kikuchi, Project Manager at the Japan Agency for Marine-Earth Science and Technology (which operates the Chikyu), said that the trial would be used to test the feasibility of domestic production of rare earths. Beijing has tightened export restrictions to Japan, targeting large conglomerates, in January 2025. (Reporting and editing by Christian Schmollinger; Additional reporting by Chang Ran Kim; Additional reporting by Yuka Obayashi)
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Neste Core Profit Misses Market Expectations in Q2, Shares Fall
Neste, a Finnish oil refiner and biofuel producer, said on Friday that its core profit had risen?in the second quarter due to the Middle East Crisis driving up prices. However it failed to meet market expectations. Neste's adjusted quarterly earnings, before interest, tax, depreciation, and amortization, more than tripled compared to a year earlier, reaching EUR1.20 billion ($1.37 billion). Analysts had forecasted EUR1.23 billion. At 0750 GMT, the shares were down 8%. Petri Gostowski, an analyst at the Finnish research firm Indires, said that investors were waiting for "clear results beats". Gostowski said in an email that he believed the market expectations had recently exceeded consensus estimates, and there was speculative buying. Demand for renewable oil is up sharply following the start of the Iran war, but the uncertainty surrounding the Strait of Hormuz closure has kept fossil fuels prices volatile. In a press release, CEO Heikki Malinen said that the conflict in the Middle East had dominated the global oil and products markets for most of the time period. This created an exceptional market climate for Neste. The group's sales margin for renewable products rose to $1.223 per metric ton during the period April-June, easily beating analysts' expectations of $1.059 per ton. This was largely due to a combination of biofuel regulations and supply constraints. This led to a quarterly?comparable EBITDA in the renewables sector of EUR859 millions, but a core loss of EUR334millions?in oil products missed the consensus of EUR401millions. Neste's full-year forecast for 2026 sales of renewables is expected to be similar to last year.
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ECB survey shows that euro zone firms are struggling to increase consumer prices following the Iran shock
A European Central Bank survey released on Friday showed that companies in the euro zone are finding it difficult to increase prices for consumers who are already facing a 'rise in fuel costs. The ECB held interest rates at a 'hold' level a day earlier. It said it was unable to see any evidence that the higher fuel prices were affecting consumer prices, wages, or long-term expectations. The ECB left the door open for another rise in September. The quarterly exchange between 76 large companies in the euro zone outside of the financial sector confirmed the absence of these second-round effects, which is in line with recent management commentary. The main exchanges took place between June 22 and 1 July, shortly after the U.S. - Iran Memorandum of Understanding on ending the conflict. This MoU was broken in early July as a result of renewed hostilities. The survey revealed that companies had increased prices less than they expected in the three months leading up to June, and were anticipating a slight moderate in the current quarter. Approximately 40% of companies contacted reported that prices had increased in their industry, particularly in transport and intermediate goods, which are directly affected the price oil and its derivatives. The ECB reported that prices for petrochemicals had risen by 20-30%. There has been little adjustment for the businesses that are closer to consumers, as households remain "price sensitive". ECB: The ECB noted that the price of certain consumer electronics products had even fallen due to lower imports from Asia. Around?40% saw their margins eroded, as rising costs weren't?compensated? by an increase in retail prices. The ECB reported that "food retailers stated that higher fuel prices during the second quarter reduced the amount of money they could spend on 'other items' and reinforced consumers' tendency to switch from branded products to private label." The general market conditions are tough ,... with Chinese manufacturers offering innovative products at low price. Companies said that artificial intelligence boom was driving investment and spending, despite concerns about competitiveness. The ECB stated that "this was causing European manufacturers to focus their investments more on Asia or Eastern Europe than the Euro area". (Reporting and editing by Toby Chopra; Francesco Canepa)
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Copper Heads Weekly Rise Despite Mideast Pullback
The price of copper is expected to rise despite a drop from midweek, as an escalation in Middle East conflict has exacerbated inflation fears and affected the macroeconomic outlook. The benchmark three-month copper contract on the London Metal Exchange remained stable, adding 0.35% to $13,642.50 per metric ton at 0700 GMT. The Shanghai Futures Exchange's most traded copper contract fell by 1.19% to 104,750 Yuan ($15.461.03) per metric ton. Prices have risen by 0.88% at the LME, and 1.6% at the SHFE, since the beginning of the week. However, they are still down from the midweek highs when metal prices surged on demand expectations, inventory pressure, and supply concerns. Sandeep Daga is the head of research for Metal Intelligence Centre. The markets are concerned that higher oil prices will lead to increased inflation, forcing policymakers to raise interest rates. This could reduce demand for commodities like copper by dampening economic activity. Early support from fears about a shortage of supplies and perceptions of good demand from China has faded. Yangshan Copper Premium The previous session saw a record high for the interest in metal imports to China, the world's largest consumer. On the supply side: Stocks in LME-registered storage facilities For the first time in two weeks, metals were stable on Thursday. Yesterday, LME warehouses reported a rewarranty after consecutive days of withdrawal requests. Daga stated that this alerted buyers. Aluminium lost 0.39% among other LME metals. Zinc was barely?changed and only rose 0.04%. Lead?dipped by 0.32%. Nickel gained 1.06%. Tin gained 0.5%. Other SHFE markets saw a dip in aluminium of 0.26%, a drop in zinc of 0.12%, a loss of lead by 0.82%, tin losing 0.84%, and soaring nickel.
Take Five: A $100 question
Next week, it's all central banks. Interest rate-setters in Tokyo, Washington and London are growing more nervous due to the Middle East war escalate. Oil prices have returned to $100.
Tariffs from the United States are now back on the list of worries for markets that worry about inflation and growth risks due to war.
Rae Wee, Dhara Ranasinghe and Samuel "Indyk" and Alun John are in London. Lewis Krauskopf is in New York.
DOUBLE TROUBLE
Investors are now watching two chokepoints for energy shipping to see how much oil and natural gas comes out of the Middle East.
Houthi attacks may make the Bab el-Mandeb strait inaccessible, which connects the Indian Ocean with the Red Sea. This could also affect the already-squeezed Strait of Hormuz.
Brent crude surpassed $100 per barrel for the first since May on Thursday. The European gas price just reached its highest level since March.
Investors will not only be interested in Gulf news when they update Truth Social, but also a U.S. Iran peace deal.
The U.S. imposed new tariffs on Friday of 10% and 12,5% on goods imported from 60 trading partners including the European Union, China and Canada, increasing market uncertainty.
Earnings Tests 2/ FED
The U.S. market is in for a busy, full week. A U.S. Federal Reserve meeting and several corporate earnings reports from technology giants will be the highlight of this week.
It is expected that the Fed will hold rates at their current level on Wednesday, in its second meeting with new chairman Kevin Warsh.
Warsh shunned giving guidance, but pledged to bring down the inflation rate to its target. Uncertainty remains high because interest rates could rise at some point.
Recent data on consumer and producer prices that were lower than expected by market participants helped calm rate-hike betting, but the resurgence of oil prices has traders raising their stakes once again.
Apple, Microsoft, and Amazon will all be reporting earnings in the coming weeks. Investors are expecting a good quarter for U.S. corporations and are focusing on AI trends.
After Alphabet's stock dropped this week, investors questioned the company about its capital expenditure plans and cash flow.
In the Doldrums
On Friday, the Bank of Japan will meet. Much depends on the policymakers' ability to send a hawkish signal that could lift the yen from its four-decade-low against the U.S. Dollar.
The yen has not been lifted by a well-publicized rate hike, $73 billion in currency intervention, nor the hope that money will return home. It recently fell below 163 to the dollar for the very first time since 1986.
Some BOJ sources believe that the BOJ could raise rates faster than the market consensus of twice a years if the price pressure from a weakening yen or rising energy prices persists.
Tokyo's July Inflation figures are due ahead of the BOJ's Friday policy decision. However, market participants do not expect that the data will change the BOJ's outcome.
What's the hurry?
The Bank of England, unlike the European Central Bank and Bank of Japan has so far refused to raise rates due to the pressure of rising oil prices. The Bank of England is widely expected to raise rates again on Thursday.
The markets expect at least one?rate rise this year, as?inflation rates are expected to pick up. However, signs of weakness in the jobs market suggest that the BoE may adopt a dovish tone.
The rate-setters met just days after Andy Burnham, the new Prime Minister of Britain, entered Downing Street with a promise to reshape Britain. Andrew Bailey, the BoE's chief executive officer, will likely be asked about his views on Burnham’s agenda in the briefing that follows the policy meeting. Economists believe that a decision to reduce the tax on electricity could slow inflation by 0.1 percentage point.
Bond markets will also assess whether John Healey will be a friend or foe.
5/ EUROPE EARNINGS DELEGAGE
Barclays says that Europe is experiencing its busiest earnings week, with 40 percent of the STOXX600 market capital reporting.
LVMH is one of the companies on the list, along with AstraZeneca and Shell.
The second-quarter profit in Europe will increase by 17.3% if you combine the results from companies that have already announced their results with those that are still pending.
This would be the highest growth rate since the 4th quarter of 2022. The surge in oil prices is largely responsible for this. If you exclude them, LSEG I/B/E/S predicts a modest 7.2%.
The ECB's policy could be influenced by the latest euro zone inflation and GDP readings. It left its policy unchanged last Thursday after June's rate hike. (Graphics and Compiled by Yoruk BAHceli, Edited by Dhara Ranasinghe & Christopher Cushing).
(source: Reuters)