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Exxaro considers larger payouts to shareholders after manganese purchase, shares rise
Exxaro Resources, a South African miner, is looking at increasing shareholder returns after it closes the deal it announced in May for manganese assets. It will not need a large cash buffer to finance acquisitions anymore, said its CEO on Thursday. The company's shares rose 9% following the announcement of a 13% rise in its half-year profits thanks to increased coal income. The company announced on May 13 that it had entered into an agreement with Ntsimbintle Holdings, and OM Holdings to purchase manganese mines in South Africa. This is part of the company's strategy to diversify its business away from coal to minerals essential for global energy technology shifts to cleaner technologies. CEO Ben Magara stated that the final transaction value is expected to be between 9 billion to 14.64 billion rand (507 million to $825 million) depending on how much minority shareholders exercise their tag-along and pre-emptive rights. After the manganese transaction, he stated that Exxaro will no longer need to maintain a cash buffer of 12 to 15 billion rands to fund acquisitions. Magara said: "We are now reviewing capital allocation framework in order to increase shareholder returns following the manganese deal." Riaan Koppeschaar, finance director at the Ministry of Finance, said that higher dividends was one option to consider. Koppeschaar stated during a call to discuss results that "we still need the manganese transactions, the final figures, before we can make final decisions." Exxaro anticipates that the transaction will be completed during the first quarter 2026. Exxaro reported headline earnings per share at 17.24 rand for the six-month period ending June 30 compared with 15.28 rand last year. It declared a dividend of 8.43 Rand per share. This is 6% more than the payout for last year. Exxaro ended the first half of 2018 with a cash balance of 12,4 billion rands. Magara said that while the miner is still looking at other metal assets, it does not expect to pursue deals as large as the manganese transaction.
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Euro stocks open flat, dollar drifts as markets prepare for Jackson Hole
Investors braced themselves for three days worth of potentially market-moving information from the Federal Reserve annual symposium in Jackson Hole. The event begins later that day and will feature central bankers from all over the world. Traders are focusing on the Fed Chair Jerome Powell’s Friday speech to assess the likelihood of a rate cut in September. At the opening, both the pan-European STOXX 600 and Germany's DAX indexes were little changed. The FTSE 100 in Britain rose by 0.1% while the CAC 40 in France fell by 0.1%. Michael Brown, Senior Research Strategist at Pepperstone, said: "I am still an equity bull and I buy dips. This recent swoon is more an example of some of the froth that has been taken off the market's top." "Strong earnings, a resilient economy and a calmer tone in trade should all keep the path to least resistance higher. Any potential Fed easing will probably also provide a help." The underlying momentum of equities has been strong in recent months. Australia's benchmark index rose 0.9%, hitting a new record. Other Asian indexes have lost some ground, but are still close to recent highs. The Nikkei, Japan's stock index, fell 0.6% after hitting a record intraday high on Tuesday. South Korea's KOSPI rose 0.7%. The KOSPI fell to a low of six weeks on Wednesday but is still not far from the four-year-high reached on July 31. Nasdaq Futures were slightly higher after a 0.7% drop for the Nasdaq composite overnight. S&P futures were unchanged after the cash index fell 0.2%. Fed Chair Powell said that he was reluctant to reduce rates due to the expected price pressures caused by tariffs this summer. The traders increased their bets on a September reduction after a surprising weak payrolls report was released at the beginning of this month. They were also encouraged by consumer price data, which showed that tariffs had little impact on prices. A higher-than-expected reading of producer prices last week, however, complicated the policy picture. The minutes of the Fed's July meeting, where policymakers voted for rates to remain unchanged, were released overnight. They suggested that Governor Christopher Waller and Fed Vice Chair for supervision Michelle Bowman were the only ones pushing for a cut. This led traders to reduce odds for a Fed rate cut of a quarter point on September 17 to 80%, down from 84% just 24 hours before. They currently price in a total 53 basis points of easing for the remainder of the year. Donald Trump has again put pressure on the central banks overnight. This pressure will remain a major focus for traders. Investors were alarmed by his push to gain more control over Fed earlier this year and the dollar fell. Trump continued his criticism of Powell for not cutting interest rates this year earlier in the week. On Wednesday, he targeted Fed Governor Lisa Cook and demanded her resignation amid allegations that she committed wrongdoing in connection with mortgages she owned in Georgia or Michigan. Cook stated that she "had no intention" of being forced to step down. Rodrigo Catril is a strategist with National Australia Bank. He said that Trump's effort to confirm Stephen Miran would add another vote in support of rate cuts for September. If he were to remove Cook from the Fed Board, four out of seven members could be on board to lower rates. Trump nominated Council of Economic Advisers chair Miran to be a Fed Governor earlier this month following the resignation of Adriana Kulgler. Toshinobu chiba, fund manager at Simplex Asset Management, says that the main focus of the Jackson Hole Conference will be on labour markets. This is a relief for some traders, who were worried policymakers would place a heavy emphasis on inflation, or the sensitive topic of central bank independence. "A number of active managers including myself believed that there was a possibility central bankers would show a hawkish position at this meeting," stated Tokyo-based Chiba. "But now that I've thought about it, the likelihood of this scenario has diminished." He added, "The U.S. labor market has been weakening recently as we've seen from the employment results in this month. So, like Powell mentioned, there is the possibility of a rate reduction." The currency market has mostly taken the recent developments in stride. The dollar index held steady at 98.33, after reaching its highest level since August 12 a day before at 98.441. The yields on U.S. Treasury two-year bonds, which are sensitive to expectations about monetary policy, increased 1.2 basis point to 3.756%, while yields on 10-year Treasury bonds rose 0.8 basis point to 4.304%. The yields on Japanese government bonds have been rising. For the first time in late 1999, the yield for 20 years has risen to 2.655% and the yield for 10 years to 1.610%. Investors are cautious about increased fiscal spending, amid pressure on the Japanese Prime Minister to resign. The dollar rose 0.2% to 147.58 Japanese yen. The Euro and Sterling were both flat at $1.1641 each and $1.3446 respectively. Gold prices fell 0.3%, to $3338 an ounce. The price of oil rose after the U.S. crude oil and fuel inventory declined more than expected. This supported expectations that demand would remain steady. Brent crude futures rose 0.9% to $67.47 per barrel after rising 1.6% the previous session. U.S. West Texas Intermediate crude futures (WTI) rose by 1.1% to $63.37 after gaining 1.4% on Wednesday.
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The Russian nuclear chief has said that the country needs to update its nuclear shield due to 'colossal' threats.
The head of Russia’s state nuclear corporation stated on Thursday that the nuclear shield in Russia should be reinforced over the next few years because the world’s largest nuclear power faces "colossal" threats. Russia and the United States upgrade their nuclear arsenals, including systems to detect and intercept nuclear-armed missiles. China is also increasing its nuclear capability beyond that of Britain and France. In the current geopolitical environment, our country is under colossal threat. The nuclear shield is also a blade, and is therefore a guarantee for our sovereignty", Alexei Likhachev was quoted by the Russian state news agency RIA. We understand that the nuclear shield will only improve in the next few years. In May, U.S. president Donald Trump unveiled plans for the so-called Golden Dome missile defense shield. It was inspired by Israel's Iron Dome land-based defence shield. The shield would cost at minimum $175 billion. The U.S. Dome would intercept a variety of missiles, including hypersonic, ballistic and cruise missiles. It is designed to block threats from Russia and China. Military experts, however, agree that such a shield cannot intercept all missiles - especially when they are launched in large numbers by either Moscow or Washington. According to research conducted by the Federation of American Scientists, Russia has approximately 4,300 deployed and stockpiled nuclear warheads, while the United States holds about 3,700. This represents a total of 87% of world inventory. According to research, China is the third-largest nuclear power in the world with 600 warheads. France comes second with 290. Britain follows with 225. India is next with 180. Pakistan has 170. Israel has 90. North Korea has 50. Reporting by Lucy Papachristou; Writing by Guy Faulconbridge and Aidan Lewis; Editing By Aidan Lewis
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In the largest aerial attack in August, Russian strikes kill and injure one person
A Russian overnight attack in western Ukraine killed one person and injured at least 18 others, Ukrainian officials reported on Thursday. Emergency services and local authorities from the western Zakarpattia area reported that a missile attack in Mukachevo injured 15 people and damaged storage facilities. The national television broadcast a picture of the region's Governor Myroslav Biletskyi standing next to the smoke-filled building, who claimed that the plant produced consumer electronics. Meanwhile, the Foreign Minister Andrii Sybiha posted a message on X condemning the strike. He called it "a fully civilian facility with nothing to do either with the defense or military." This is not the first Russian assault on American business in Ukraine. There were also attacks on Boeing offices earlier this year in Kyiv. According to the governor Maksym Kzytskyi, in the western city Lviv the attack resulted in the death of one person, three other injuries, and the destruction of 26 homes. The Ukrainian Air Force reported that Russia used 574 missiles and drones during the overnight attack, which was the largest so far this August. Sybiha stated that "efforts to force Russia to stop the war are critical." The strike occurred at a moment when U.S. president Donald Trump was making intense efforts to end the Russian war in Ukraine. Russia denies that it is targeting civilians but has used drones and missiles to attack Ukrainian towns and villages far away from the frontlines of the conflict. Since the 2022 invasion by Moscow, thousands of civilians have been killed, with the vast majority being Ukrainians. ? (Reporting and editing by Christian Schmollinger, Tomasz Janowowski)
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Aluminium prices rise on reduced stocks and improved China demand
Aluminium was the best performing metal on Thursday, as signs of improved demand from China's top consumer and lower inventories boosted sentiment. The Shanghai Futures Exchange's most traded aluminium contract rose by 0.49% to 20,620 yuan (2,872.83 dollars) per metric tonne. As of 0700 GMT, the benchmark three-month aluminum on London Metal Exchange had not changed much, at $2,575 per ton. The price of aluminium has been supported by the improvement in spot demand. This, coupled with the destocking of certain products, was said under condition of anonymity because he wasn't authorized to speak to journalists. Analysts at Guosen Futures stated on Thursday that the earlier pullback had increased buying interest in spot markets, which has limited the price's downside potential. After the United States, aluminium prices fell for three sessions in a row this week. Widen Imports of metal products are subject to a 50% tariff. Analysts at Galaxy Futures wrote in a Thursday note that lower aluminum stocks would also support Shanghai prices despite any possible downside risks. A higher global supply has, however, limited further price increases. The International Aluminium Institute (IAI), which released data on Wednesday, showed that the global primary aluminium production in July increased 2.5% compared to last year. Investors are also closely monitoring the U.S. Federal Reserve chair Jerome Powell's Friday speech for clues to bets about a rate reduction. The dollar price of metals could increase due to a weaker U.S. dollar. SHFE copper fell 0.05%. Nickel and tin both dropped 0.33%. Zinc advanced 0.16%. Lead gained 0.09%. LME metals have lost ground. Lead fell 0.58%. Zinc dropped 0.43%. Tin fell 0.07%. $1 = 7.1776 Chinese Yuan (Reporting and editing by Sonia Cheema, Harikrishnan Nair and Lewis Jackson)
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Iron ore prices rise as China's demand worries fade
Iron ore futures recovered on Thursday, as the production cut mandated ahead of a Chinese military parade seemed to be less severe than expected and shorter. This eased demand concerns. The daytime trading price of the most traded January iron ore contract at China's Dalian Commodity Exchange was 0.78% higher, closing at 772.5 Yuan ($107.63). By 0704 GMT, the benchmark September iron ore price on Singapore Exchange had risen 0.55% to $100.30 per ton. The benchmarks fell for six consecutive sessions, up to Wednesday. This was due to concerns about demand as steelmakers at the top Chinese production hub Tangshan had been required by Beijing officials to reduce production in order for air quality there be improved for the military parade commemorating World War II on September 3. Analysts said that the impact of the production restrictions in Tangshan will be minimal, as the length is shorter than anticipated. One analyst, who spoke on condition of anonymity because he was not authorized to speak with the media, predicted that hot metal production, a measure of iron ore consumption, would likely remain stable this week. This will support ore prices. According to the National Bureau of Statistics, China's crude steel production has fallen 3.3% on an annual basis. Coking coal and coke, which are both steelmaking components, have also lost ground. All steel benchmarks at the Shanghai Futures Exchange fell. The rebar fell 0.03%. Hot-rolled coil dropped 0.44. Wire rod fell 0.15%. Stainless steel lost 0.27%. ($1 = 7.1776 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson and Subhranshu Shu)
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James Hardie Australia shares plunge the most in two days on a weak forecast
James Hardie shares listed in Australia fell by more than 11% Thursday, and are on track for their largest two-day decline ever after the fibre cement manufacturer forecasted 2026 earnings that were below analyst expectations. The company cited a weak North America marketplace as a reason. The share price has dropped 36% in the last two days to A$28.34, losing more than A$9 Billion ($5.78 Billion) in market value. This sell-off reflects broader investor dissatisfaction with Australia listed companies that have failed to meet their targets. The selling began on Wednesday, after the company announced that it would have adjusted operating earnings between $1.05 billion and $1.15 billion in fiscal 2026. This was below Visible Alpha's consensus estimate of $1.23billion. The midpoint of forecast range is also just barely above the $1.1 billion that the company earned during fiscal 2025. James Hardie, based in Dublin, is facing a slowdown on its biggest market North America. Weaker-than-expected activity for single-family housing construction during the summer has worsened the demand for repairs and remodelling. North American fibre cement sales dropped 12% in the first quarter to $641.80 million, and adjusted net income fell to $126.9 from $177.6 millions a year ago. The stock is down nearly half this year. It's now 42.7% due to a decline in single-family home sales across the U.S., which has been caused by higher borrowing costs and increased inventory levels. Macquarie analysts highlighted James Hardie’s stretched balance sheets in a note. They questioned the sustainability of their share buyback program amid $5.1 billion drawn debt that is pressing its finances. CSL shares fell nearly 20% over the past two trading sessions, as the biotech company abandoned its main margin restoration goal for the blood plasma division. This is the second time that Australian investors have been disappointed by earnings-related issues.
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Norway's GDP grows faster than expected during Q2
Statistics Norway (SSB), on Thursday, reported that the Norwegian economy grew faster than expected in its second quarter. The first-quarter data was also revised upwards. In a press release, SSB stated that "the expansion in the first halves of 2025 follows a longer period in which the Norwegian economy has grown at a slower pace." The central bank and the economists polled had predicted growth of 0.3%. The growth rate for the first quarter was revised up to 1.2%, from 1.0%. The Norwegian crown currency rose against the Euro to 11,90 at 0607 GMT, up from 11,92 before the release of data. Norges Bank kept interest rates the same last week On Hold Analysts predicted that the rate would be 4.25% and reiterated their plans to reduce borrowing costs in the second half of this year. The most common measure of the Norwegian economy's performance is the Mainland GDP. This excludes oil and gas production which can have a volatile impact. (Reporting and editing by Terje Sollvik and Anna Ringstrom).
Oil gains as demand for oil increases
The oil prices continued to rise on Thursday. This was boosted by strong signs of demand in the U.S. and uncertainty about efforts to end war in Ukraine.
Brent crude futures reached a new two-week high early in the trading session and were up by 27 cents or 0.40% to $67.11 per barrel at 0442 GMT. U.S. West Texas Intermediate crude futures (WTI), which are based in the United States, rose by 29 cents or 0.46% to $63.01 a barrel.
Both contracts rose over 1% during the previous session.
The U.S. Energy Information Administration reported on Wednesday that U.S. crude oil inventories dropped by 6 million barrels to 420.7 million last week, compared with a poll expectation of a 1.8-million barrel draw.
The EIA reported that gasoline stocks fell by 2.7m barrels versus the expected 915,000 barrels. This indicates a steady demand for summer travel. This was also seen by a spike in the average four-week consumption of jet fuel, which reached its highest level since 2019.
Daniel Hynes said that the price of crude oil rebounded on Thursday as strong demand from the U.S. boosted confidence.
Hynes warned, however, that "some bearish sentiment remains apparent as traders continue monitoring negotiations to end Russia’s war against Ukraine."
Analysts and traders expect the oil price to drop once a peace agreement is signed, but if there are no further concrete steps in the negotiations then this could undermine the market.
Russia warned on Wednesday, as U.S. military planners and Europeans started to explore post-conflict guarantees for Ukraine's security, that any attempt to resolve the issue without Moscow's involvement was a "road leading nowhere".
As long as the efforts to bring peace in Ukraine continue, Western sanctions against Russian oil will remain in effect. The market is still at risk of more sanctions and tariffs for Russian oil purchasers.
Russia is adamant that it will continue to supply crude oil to India, even after the United States warned against this. Russian diplomats in India said the country expected to continue to supply oil to India, despite the warnings of the United States.
Donald Trump, the U.S. president, announced that an additional 25% tariff would be applied to Indian goods starting August 27, due to their purchases of Russian crude. The European Union also sanctioned Indian refiner Nayara Energy which is supported by Russian oil company Rosneft.
Indian refiners initially refused to buy Russian oil, but officials from state-run Indian Oil (Indian Oil) and Bharat Oil (Bharat Petroleum) have now bought Russian crude in September and October for delivery. They resumed purchases after the discounts were widened. (Reporting from Siyi Liu and Katya Glubkova, in Tokyo; editing by Christian Schmollinger & Tom Hogue).
(source: Reuters)