Latest News
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Wall Street Journal, July 28,
These are the top stories from?the Wall Street Journal. These stories have not been?verified and we cannot vouch for their accuracy. Johnson & Johnson, a manufacturer of babycare products, has agreed to pay $5.5 Billion to settle outstanding lawsuits alleging that the company's Talc products cause ovarian cancer. The agreement is conditional on 95% participation by the remaining claimants. Iran and Oman have worked to achieve an agreement for the safe passage of ships through the Strait of Hormuz amid a lull between fighting between the U.S. -Kuwait Petroleum signed a $16billion pipeline lease agreement with Kuwait Oil, involving the entire country's export and domestic pipelines. The investors were led by Blackstone, Brookfield, and KKR. Cracker Barrel's CEO Julie Masino has resigned from her position. She will be replaced by David Deno, former Bloomin' Brands' CEO on August 10. Ford has been awarded a Defense Department contract for the development of three truck prototypes that are based on its F-Series pickups. The Pentagon is pushing automakers to help modernize and replenish military equipment depleted from wars in the Middle East, Ukraine and elsewhere. Sazerac, the?cocktail manufacturer of BuzzBallz?, sent a letter to Brown-Forman's shareholders asking them to reconsider their previously rejected $15 billion purchase?offer. Gas cylinder manufacturer Luxfer has agreed to be acquired by Wynnchurch Capital. The company plans to continue as a privately-owned company following the acquisition. (Compiled by Bengaluru Newsroom)
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Gold falls as dollar strength weighs on gold; attention turns to Fed meeting
The gold?prices dropped on Tuesday due to a stronger dollar. Meanwhile, the markets were looking forward to the Federal Reserve’s next policy announcement for clues about the interest rate outlook. Gold spot fell by 0.7% at $4,045.89 an ounce as of 0448 GMT. It had risen as high as 1% Monday. U.S. Gold Futures for August Delivery fell 0.8% to $4 046.20. Dollars held near a month-high, making bullion priced in greenbacks more expensive for holders other currencies. Ilya Spivak is the head of global macro for finance content network Tastylive. The U.S. Federal Reserve is expected to conclude its two-day meeting of policy makers on Wednesday. The Fed is expected to keep interest rates steady at 62%. According to CME FedWatch, 38% of participants in the market expect a rate increase at least 25 basis points. The markets are pricing in a 81% chance of a hike during the September meeting of the central bank. On Monday, President Donald Trump called on the Fed?to lower interest rates. He said the U.S. would have the lowest rate of interest in the world. Trump said that on Monday, the United States was in "good talks" and that there was a possibility of a deal to end their conflict. However, he warned that if the negotiations did not succeed then strikes would be resumed. Saudi Arabia, Jordan, and Iraq reported drone attacks on Sunday, indicating that Tehran was quickly testing the pause of the U.S. campaign. Spivak said that gold will likely rise above $4,200 an ounce if the Fed meeting does not produce language that is "setting the foundation for a rate hike in September". Silver fell by 2% per ounce to $57.23, platinum dropped 0.9% to 1,605.93, and palladium was down 1.6% at $1,270.97. (Reporting and editing by Varun H. K. and Ronojoya Mazumdar in Bengaluru)
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Morning Bid Europe-Chips are jolted by a shift in momentum for AI
Tom Westbrook gives us a look at what the future holds for European and global markets. Chip stocks in Asia fell on Tuesday due to the twin threats of Chinese competition rising and questions over funding and sustainability of AI infrastructure boom. South Korea's KOSPI fell nearly 10%, tripping a circuit breaker. Japan's Nikkei dropped 4.4%. The rally has been so strong that both markets are still the leaders for the year, even though they have now reached multi-month lows. Nvidia fell 5% Monday after a Wall Street Journal article reported that the chipmaker had been in discussions to provide $250 billion worth of financing guarantees for a?OpenAI Data Centre. The report stated that the guarantee would only cover Nvidia inside the center, but that financing OpenAI chips worth up to $35 billion was also being discussed, bringing attention to the circular nature of AI build-out expenditure. Europe's chip leader was also not spared. ASML fell?8.5% following The Information's report that China had begun manufacturing its own immersion deep ultraviolet machines, which are critical to chipmaking and were long dominated exclusively by the Dutch group. Investors are wondering if China's semiconductor sector is moving beyond a catch-up phase to a genuine contender. CXMT soared to the top of China’s stock market on Monday by valuation, causing investors to worry that dominant chip manufacturers may have to share AI spoils more widely. Apple was reported to have asked the U.S. for assurances that CXMT would not be added to a blacklist. The picture of hyperscalers' spending plans will be completed by the earnings at Apple, Meta and Microsoft later this week. Oil prices fell, but that was little help to stocks, or even bonds. They held steady during Tuesday's Asia session, even though crude futures continued their losses. The markets see an approximately 38% chance of a U.S. interest rate increase this week. The following are the key developments that may influence Tuesday's markets: Consumer confidence in France and the U.S. Earnings of Mercedes-Benz (editing by Shri Navaratnam), Barclays, Man Group EssilorLuxottica Logitech Rio Tinto Kering Ford Mondelez Visa NXP Seagate Coca-cola UPS Boeing
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Copper prices fall as rate hike expectations weigh on demand
The copper prices fell on Tuesday as 'lingering bets on an interest rate increase in the U.S. threatened to dampen demand. Crude oil prices also declined as investors assessed a pause in U.S. attacks on 'Iran. By 0300 GMT, the benchmark three-month metric ton of?copper traded on London Metal Exchange had fallen 0.5% to $13,664 per metric tonne. The Shanghai Futures Exchange's most traded copper contract fell 0.14% to 104,800 Yuan ($15.484.86) per ton. The market is waiting for the U.S. Federal Reserve's meeting on Wednesday and the effect of a possible lull in the fighting between Iran and the U.S. Analysts from the?Chinese brokerage Galaxy Futures said that despite the lower crude oil price, expectations of more Federal Reserve rate increases have increased. According to CME FedWatch, 62% of market participants believe that the Fed's interest rates will remain unchanged, and 38% expect at least a 25% increase. Copper market fears that higher rates will dampen economic activity and reduce demand. Red metal prices have risen due to expectations of increased demand from AI infrastructure, electric vehicles and electrification. The jittery stock market also affected traders' appetite for risk. On Tuesday, chipmakers were the main culprits in the Asian stock market's decline. They were worried about the financing requirements of the AI boom. Galaxy Futures analysts stated that "the?market is entering a week of heavy earnings reporting, and sentiment remains cautious." Aluminium prices were down 0.35% at the LME and stable on theSHFE. Disrupted Middle East supply has caused a massive drop in stocks, as well as total stock levels at LME-registered storage warehouses. The lowest level on record since 1998. Nickel?slid 0.16%, and tin fell 1.71%. On the SHFE, nickel dropped 0.77%, tin fell 1.5% and zinc declined 0.5%.
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Gold falls as dollar strength weighs on gold; attention turns to Fed meeting
The dollar strengthened on Tuesday and gold prices fell. Markets were looking for clues about the future of interest rates in the Federal Reserve's policy announcement. Gold spot fell by 0.7% at $4,044.81 an ounce as of 0250 GMT. It had risen as high as 1% Monday. U.S. Gold Futures for August Delivery fell 0.8% to $4.045.40. Dollars are nearing a month-high, which makes greenback bullion prices more expensive for those who hold other currencies. Ilya Spivak is the head of global macro for finance content network Tastylive. The U.S. Federal Reserve is expected to conclude its two-day policy meeting on Wednesday. According to CME FedWatch, 62% of market participants believe that the Fed will keep interest rates at their current level. However, 38% expect a rate increase at least 25 basis points. The markets are pricing in a 81% chance of a hike during the September meeting of the central bank. On Monday, President Donald Trump called on the Fed lowering interest rates. He said that the U.S. would have the lowest rate of interest in the world. Trump said that on Monday, the United States was having "good discussions" with Iran. He also stated that there is a possibility of a 'deal' to resolve their conflict. However, he warned that strikes will resume if the negotiations fail. Saudi Arabia, Jordan, and Iraq reported drone attacks on Sunday, indicating that Tehran had quickly tested the pause of the U.S. campaign. Spivak said that gold will likely rise above $4,200 an ounce if the Fed meeting does not produce language that is "setting the foundation for a rate hike in September". Silver spot fell by 1.9%, to $57.30 an ounce. Platinum lost 1%, to $1605.14, and palladium dropped 1.6%, to $1271.09. (Reporting and editing by Varun H. K. and Ronojoya Mazumdar in Bengaluru)
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Australia builds first oil refinery at home in 60 years, to improve fuel security
Prime Minister Anthony Albanese announced on Tuesday that Australia will be considering building its first?oil? refinery in over 60 years. The war in the Middle East has squeezed supplies from abroad and highlighted the urgency of improving energy security. Albanese stated that the project would help to build Australia's sovereignty and resilience in the fuel sector, which could shield the country against future supply shocks. Albanese stated that if the project is deemed?feasible', Perdaman, a chemical industrial producer in Western Australia will build a new large-scale refinery. Albanese, a reporter in Western Australia's Pilbara Region, told reporters that "the war?in?the Middle East... has an impact here just like it does all over the world." Building national resilience makes Australia less susceptible to events happening around the globe. Albanese announced that his government, along with the Western Australia State Government, will spend A$4,000,000 ($2.8 million) jointly on a feasibility study for the refinery. Albanese continued, "We want the project to be a success and that's why we are looking for the best location. Australia imports about 80% its fuel and is racing to secure supplies in the face of the Iran War. A report by the Australian Treasury warned that global oil markets have become more vulnerable, with "weaker buffers against supply-shocks". The treasury told Treasurer Jim Chalmers that global oil inventories?have decreased since the conflict in the Middle East has intensified. Meanwhile, refined fuel markets now face a?risk of further tightening?, it said. The majority of Australia's oil refineries were constructed in the 1950s and 1960s. However, high operating costs as well as the rise of large refineries across Asia have forced many of them to close over the last three decades. Ampol's Queensland Refinery and Viva Energy's facility in Victoria, both in the east of the country, are now the only two active refineries. In 2000 there were eight. Western Australia's lone refinery will be shut down by 2021, after BP converted its 146,000 barrels a day Kwinana facility into a fuel terminal. ($1 = 1.4306 Australian dollars)
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Asia markets sell off in a broad scale due to AI fears
Asian markets dropped on Tuesday, led by chipmakers, on concerns?about massive funding requirements of the AI boom. A slide in oil prices didn't do much to lift bonds, and traders were worried about U.S. interest rate hikes coming this week. South Korea's KOSPI plunged more than 8 percent to a low of three months, setting off a circuit breaker. Japan's Nikkei fell 4% after a drop of 2.2% for the Philadelphia Semiconductor Index. Nvidia's shares fell 5% overnight, after the Wall Street Journal reported that the company was in discussions to provide approximately $250 billion in financial guarantees for OpenAI in connection with a massive data center project. CXMT shares in Shanghai surged 466% on their debut day, highlighting the growing interest of investors and the competitive threat from Chinese competitors. Chris Weston is the head of Pepperstone's research. He said that there was a growing sense of optimism in mainland markets regarding China's ability build a global competitive AI ecosystem. The Information reported that China had?also started manufacturing locally developed immersion deep UV lithography machines. This chipmaking tool was long dominated exclusively by Dutch supplier ASML. ASML's shares fell 8.5% on Monday. South 'Korea SK Hynix shares fell by nearly 11%, while Samsung Electronics shares dropped more than 9%. In Tokyo, Kioxia was down 18% and?Tokyo Electron was down 9.8%. CXMT, the chip-making indexes and CXMT were also lower in early trading. OIL SLIDES US YIELDS DIPLEAD Brent crude futures continued their nearly 9% drop on Monday, dropping to $87.55 per barrel as hostilities between Iran and the U.S. cooled following Washington's sudden suspension of airstrikes on Saturday. Donald Trump stated on Monday that the United States and Iran were having "good discussions" and that there was a possibility of a deal. The break in fighting has pushed benchmark U.S. Treasury 10-year yields down by four basis points, to 4.64%. Shorter-term rates have not moved much. The Federal Reserve is expected to hike by 25 basis points this Wednesday, according to traders. "The U.S. - Iran War, which is driving up the price of crude, remains the main determinant for what will 'happen in the global economy over the next few months and, as a result, what informs the central bank policy forecasts at the margin," said Thierry?Wizman, currency & rates strategist?at Macquarie Group. We expect the Fed to tighten its bias this week. The expectation of a hike?sooner rather than later' kept the dollar at $1.1370, the euro at $1.14 and the Australian Dollar just below 70 cents. The yen was trading at 163.78 per dollar, barely above a four decade low. Markets are on edge about Japan interfering in the currency pairing, especially if the Bank of Japan holds rates this week, and causes another yen drop. Wizman said that if BoJ communication was not hawkish, and USD/JPY continues to rise, traders can expect an official response. This could include verbal interventions, rate checks or direct FX market interventions, possibly on Friday. (Reporting and Editing by Shri Navaratnam).
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Whitehaven Coal's output in 2026 is at the top of its guidance range, but costs are at the low end.
Whitehaven Coal, Australia's largest coal producer, said Tuesday that its annual sales and output were near the top end of their guidance range due to the recovery of its Queensland mines. However, the company expects its costs for the full year to be near the lower end of the forecast. As the Sydney-based coal mining company tries to absorb higher diesel costs linked to Middle?East conflict, it is important to consider cost forecast. Whitehaven has said that unit costs are expected to be around A$132 ($92.29), towards the low end of their forecast range. This is after they achieved savings in line with its annualised target between A$60 and A$80 million. The company made A$222 for every ton of thermal coal it sold in the 'fourth quarter,' up from A$189 per ton a year ago, thanks to a stronger Asian demand after the supply of liquefied gas was interrupted. The managed run-of mine production for the year ending June 30 was 40.3 Mt, up 3% on the previous year and close to the upper end of the 37-41 Mt range. The managed coal sales increased 8%, to 32.7 Mt. This was within the estimates of 29.5 to 33 Mt. The Visible Alpha consensus estimate was that fourth-quarter production would rise by 1.3%, to 10.7 mt. Queensland operations including the Blackwater and Daunia Mines, which were purchased from BHP Group for $4.1 billion in early 2024, have recovered from weather disruptions in previous quarters, with production increasing 41% sequentially. New South Wales' mines including Maules Creek Narrabri, and Gunnedah posted a 1.6% increase in quarterly production year-on-year, but output fell by 8% from the previous quarter due to tougher mining conditions. Whitehaven shares were down 1.1% at 0058 GMT, following the declines of the energy subindex and the wider market. $1 = 1.4302 Australian Dollars (reporting and editing by Shilpi Major and Subhranshu S Ahu in Bengaluru).
US court hold-ups choice of bids in Citgo share auction, filing says
A U.S. court on Thursday consented to postpone the selection of finalists in an auction that might alter the ownership of Citgo Petroleum, pressing back any sale of the seventhlargest U.S. oil refiner till October.
A court officer supervising the auction in Delaware on Wednesday requested three extra weeks to settle an analysis of bids submitted in June, and set terms for the sale of shares in among Citgo's parent business, whose only property is the Houston-based company.
The delay comes in the middle of a fiercely contested presidential election in Venezuela, which owns Citgo and thinks about the auction a theft of its valued foreign possession.
The court set Aug. 22 to reveal its suggestion on bids for the refiner's parent, and Oct. 15 as deadline to pick a. winner. This is the second time judge Leonard Stark has delayed. the process at court officer Robert Pincus' demand.
As the Citgo auction sale enters its final stage ... swelling procedural complexities and Venezuela's political. chaos are threatening to postpone the process, legal representative Jose. Ignacio Hernandez from advisory company Aurora Macro Strategies. composed in a report earlier this week.
Offers have actually proven to be complicated, with the court. allowing creditors to integrate credit bids with cash. Holders of. a bond issued by state oil company PDVSA, collateralized with. Citgo equity, also are claiming about $2 billion in a separate. court case.
In total, 18 creditors consisting of defaulted shareholders. and oil manufacturers, industrial corporations and mining firms. whose assets were expropriated in Venezuela are trying to money. approximately $21.3 billion in proceeds from the auction.
We can prepare for technical difficulties, Hernandez. said, noting that the court would need to stabilize the bids with. a strategy to resolve all liabilities, including the PDVSA 2020. notes.
At least 5 groups of investors submitted binding quotes and. three secured financing commitments from banks and advisors. consisting of JPMorgan Morgan Stanley, and Rothschild. & & Co, sources told Reuters in June.
U.S. oil refiner CVR Energy was working with. financial investment bankers at Wells Fargo to raise financing for. a quote, Reuters reported in July. CVR has the assistance of Carl. Icahn, the billionaire activist investor, in its offer, people. familiar with the matter have actually stated.
In the first bidding round in January, uses sent. reached $7.3 billion, well listed below an estimated market value of. in between $11 billion and $13 billion for the company.
Lawyers representing Citgo and Venezuela called the round's. outcomes disappointing, and asked for the sales procedure to be. restructured to better pay creditors.
The unprecedented court case has actually enabled Citgo moms and dad PDV. Holding to be discovered accountable for the South American nation's. debts, and its shares seized by a U.S. court to pay financial institutions.
Citgo runs 3 U.S. refineries that can process as much as. 807,000 barrels daily of crude. In 2019, it severed ties with. its ultimate parent, Caracas-headquartered state oil company. PDVSA after the U.S. enforced sanctions on Venezuela.
(source: Reuters)