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Investors suggest alternatives to YPF in dispute between US and Argentina
The U.S. Government sided with Argentina in its effort to temporarily suspend a court order requiring it to turn over its 51 percent stake in the oil and gas company YPF as part of a $16.1-billion judgment won by two investors. In a late-night filing, the U.S. government informed the 2nd U.S. The 2nd U.S. Circuit Court of Appeals stated that it is in the public's interest to resolve the dispute on its merits "free of the rushed compulsion of a non-stayed turnover order, and any negative impact on U.S. Foreign Relations with Argentina." Petersen Energia Inversora, Eton Park Capital Management and other investors urged the Manhattan appeals court, to reject a stay on U.S. district judge Loretta Preska’s June 30, 2013 turnover order, while Argentina appeals. The appeal was likely to fail and Argentina's "strategy" of delaying and obstructing the collection of the $16.1 billion judgement, against which it is also appealing, justifies the turn-over. Investors said that if the court of appeals is not inclined to simply deny the stay, then it should return the matter to Preska so Argentina can propose alternative collaterals or set conditions in order to avoid "irreversible results" during the appeal. The investors' attorneys said that "Plaintiffs do not want to have their shares rendered unrecoverable if Argentina wins on appeal and they are not interested in running an oil firm." They would therefore accept reasonable conditions so the transfer of the shares can be unwound easily if needed. Outside of business hours, Argentina's representatives had no comment to make. Argentina said that it would suffer irreparable damage and its economy might be destabilized if they gave up their stake in YPF - the country's biggest energy company. You have until the 22nd of July to reply to the Investor's filing. Burford Capital, a litigation funding company, represents Petersen and Eton Park. Burford Capital has stated that it expects to receive between 35% and 73% respectively of the damages. The lawsuit arose out of Argentina's decision in 2012 to take the YPF stake away from Spain's Repsol, without making a bid to minorities shareholders. Preska will award the $16.1 billion verdict in September 2023. The U.S. Government expressed its position through a proposed friend of the court brief. This echoed a position that it took in November last year during the Biden Administration. Petersen, Eton Park and the U.S. government were said to be against its motion for filing a brief. Reporting by Jonathan Stempel, New York; editing by Raju Gopikrishnan
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London's unloved shares are attracting foreign investors
The UK stock market is finally reversing its years-long underperformance compared to the rest of Europe. This comes as a result of a UK/U.S. A trade agreement, a softer regulatory environment and cheap stocks are delivering juicy returns which are beginning to attract foreign investors. The FTSE 100 is up nearly 10% in the last year, and has reached record highs, surpassing the STOXX 600 which is up 7.5%. London's blue chip index performed better on a year to date basis than its European counterpart in the last six week, the longest stretch of its kind since the end of 2022 when a weak pound boosted revenues for the export focused FTSE. The financial regulator announced this week that it would roll out new regulations to boost Britain's Capital Markets. Meanwhile, Chancellor Rachel Reeves asked the financial industry for a more positive picture of UK shares to be painted to potential retail investors as she sought new ways to revive an economy in stagnation. Asset managers claim that the UK narrative is changing, and the blue-chip index already looks appealing to foreign investors given the sterling's rally in this year. Justin Onuekwusi is chief investment officer of St. James's Place. He said, "We see signs that big asset allocators are coming back to the UK." He said: "I'm talking about non UK endowments and pension funds as well as asset owners, wealth management firms, who all underweighted the UK after Brexit." The FTSE-100 has risen nearly 18% in dollar terms so far this season, marking the highest dollar-denominated gains since 2009. This compares to a 6% gain year-to-date for the S&P 500 which also reached record highs. The pound is up 7% against the dollar this year as investors flee U.S. assets due to increased policy uncertainty in the U.S. under President Donald Trump. This acts as a drag on FTSE members, 80% whose revenues come from abroad. The index is insulated from the economy's swings by its large defensive companies like AstraZeneca, Tesco, and healthcare. The company also holds growth-sensitive resources such as Anglo American, BP and other companies that can tap into the strength of oil, copper and Gold. Britain is one of few countries that are less concerned about trade uncertainty because a U.S.-UK trade agreement has been signed. The European Union, on the other hand, faces 30% tariffs in the event of a failure to reach an agreement by August 1. 'TEA AND BISCUIT The UK stock market can be a calming cup and biscuits in an uncertain time. "There's nothing fancy, just names that are reliable and do their jobs day after day," AJ Bell Investment Analyst Dan Coatsworth stated. Since years, the valuations of FTSE-100 companies has lagged behind those in Europe. Brexit in 2016 accelerated this trend. Fewer companies listed their shares on the London Stock Exchange and few were used as M&A targets. The UK market has caught up. The FTSE-100 12-month forward P/E ratio is at 12.5, the highest in five years. This compares to 14.11 for STOXX. It's the smallest gap for 18 months. S&P is trading at a premium of nearly 10 points to the FTSE compared to just 2 points a decade ago. The relative poor performance in the UK, compared to the U.S., over the last two years is beginning to reverse. Michael Stiasny said that we're at the beginning of this. He added that the UK equity market had traded at "significant discounts". The pound has reached a high of four years against the dollar but is weaker against the euro. This year's weakness against the euro offers a boost to FTSE exporters. Official data shows that the EU will be Britain's biggest trading partner in 2024. The United States will follow with 22%. Not everything is rosy. The British economy has slowed down, business activity is slowing and employment is declining. Inflation is above the Bank of England target of 2%. Barclays data indicates that UK equity has seen a net outflow in 2025 of $20 billion, though outflows are almost non-existent in the past month. This compares to Europe's $13 billion year-to date inflow and its rapidly slowing inflows. Sebastian Raedler is the head of European Equity Strategy at Bank of America Merrill Lynch. He believes that the FTSE has been performing well because of the currency, and it's in line with Europe. He said that a 2% increase in the FTSE by 2025 compared to the STOXX would be a minor improvement.
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China's spy agency targets foreign attempts to "steal" rare earths
China's Ministry of State Security said Friday that foreign spy agencies have tried to "steal", rare earths. It also pledged to crackdown on infiltration and espionage targeting its vital mineral sector. The spy agency claimed that foreign intelligence agencies and their agents colluded with domestic lawbreakers to steal rare earth items from China. This posed a serious risk to China's security. The ministry reported that it had discovered attempts by an unknown country to circumvent export restrictions through forging labels, falsifying manifests and transshipping, which involves products being routed via third countries to their final destination. Exclusively this month, it was reported that large amounts of antimony (a metal used to make batteries, chips and fire retardants) appeared to have been shipped into the United States through Thailand and Mexico following China's ban on U.S. exports. In retaliation to U.S. Tariffs, China added several rare-earth magnets and other related products to its export restrictions list early in April. Due to shortages, some automakers outside China were forced to temporarily suspend production. China's rare-earths exports increased 32% from the previous month in June, a sign that the agreements made between Washington and Beijing last month to open up the flow of metals have been successful. Nvidia’s plan to resume sales of its H20 AI chip in China was part the rare earth talks. (Reporting and editing by Kate Mayberry in Beijing)
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Morning bid Europe-stocks are buoyant, but Japan's vote is a risk
Stella Qiu gives us a look at what the future holds for European and global markets. The share markets continue to defy the laws of gravity. Wall Street closed yet another record-high as investors seized on positive economic signals. This sparked a rally that has continued in Europe and most Asian markets. A new worry has emerged in Japan. An upper house election this Sunday could threaten the majority of Prime minister Shigeru Shiba's ruling alliance. Japanese stocks, bonds and yen are all falling due to the increased political risk. The broadest MSCI index of Asia-Pacific stocks outside Japan reached its highest level since late 2021, but Tokyo's Nikkei fell 0.3%. Meanwhile, the yen is headed for a third straight week of losses. It's down 0.7% at 148.45 to dollar, near a 2-month low. The yields on 10-year JGBs fell 1 basis point on Friday to 1.545%, but are still not far off the 17-year-old high of 1.585% that was reached earlier in this week. The opening of the European stock markets is expected to be higher, with EUROSTOXX futures rising by 0.3%. The Sunday elections in Japan could be the most important upper house elections in many years. They may add to the political instability in a period of rising concerns over fiscal sustainability, uncertainty about interest rates and lack of progress in trade negotiations with the U.S. Japan's core rate of inflation fell in June, but it remained above the central bank target of 2%. This highlights the high cost-of living that is plaguing Ishiba. Investors are also happy about the robust earnings of U.S. corporations and the resilient U.S. economic situation. Wall Street futures have firmed up a bit, while Netflix's results exceeded expectations, partly due to the weaker dollar. This could be good news for export earnings. For the rest of today, the economic and events calendars are mostly empty. Fed Governor Christopher Waller reiterated support for a cut in interest rates at the end this month. He cited mounting risks to the economic. Fed funds futures indicate that there is little chance of any movement on the 30th July, while a rate cut in September is about 60% priced-in. This year, a total easing of 45 basis points is expected. The following are key developments that may influence the markets on Friday. Germany PPI for the month of June The German Finance Minister Lars Klingbeil, and the Bundesbank President Joachim Nagel spoke on the sidelines at the G20 in Durban U.S. University of Michigan consumer Sentiment survey
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Dalian iron ore to gain fourth weekly on demand optimism
Dalian iron ore prices rose on Friday, heading for a fourth straight weekly gain as a positive demand outlook and expectations of further support from Beijing lifted market sentiment. As of 0320 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange rose by 0.7% to reach 787.5 Yuan ($109.67), per metric ton. This week, the contract gained 3.01%. The benchmark August Iron Ore at the Singapore Exchange rose 0.57% to $101.4 per ton this week, an increase of 2.19%. Analysts from ANZ stated that traders are optimistic about improved steel margins after Beijing's signal to reduce overcapacity. Hopes for new stimulus in the property sector have also boosted market sentiment. ANZ said that lower inventories of both iron ore, and steel, are fueling expectations for restocking to occur in the months to come. SteelHome, a consultancy, says that total iron ore stockpiles across Chinese ports fell by 0.76% in a week to 130.9 millions tons on July 18. This has further supported prices. Galaxy Futures, a broker, reported that the current demand for iron is strong, while steel consumption remains high in the manufacturing industry. Galaxy said that the prices are further supported by expectations of reforms to supply-side policies. BHP, a mining giant, reported an annual record iron ore output of 290 millions tons. The fourth quarter production was 77.5 million tonnes, exceeding the market's expectations. Strong retail sales data boosted the dollar. Dollar-denominated investments become more expensive to holders of other currencies when the greenback is stronger. Coking coal and coke both rose by 2.55% and 0.8% respectively. All steel benchmarks at the Shanghai Futures Exchange gained ground. Hot-rolled coils and stainless steel gained 0.24% and 0.88% respectively. ($1 = 7,1807 Chinese yuan). (Reporting and editing by Rashmi Liew)
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High-Voltage Substation for RWE’s Thor Wind Farm Sails Away from HSM Offshore
HSM Offshore Energy has completed the buildout and delivery oof the Thor offshore high voltage substation (OHVS) for RWE’s Thor offshore wind farm in Denmark.The completed yard constructed and delivery marked the achievement of three major milestones - the load-out of the jacket, the load-out of the topside, and the sail-away of the jacket and substation, which have now left the Schiedam yard and are en route to its final destination off the Danish coast.Thor is a joint 1.1 GW offshore wind project of RWE (51%) and Norges Bank Investment Management (49%).The Thor OHVS is a critical component of Denmark’s largest offshore wind project to date, which will be capable to supply more than one million Danish households with clean electricity.Positioned approximately 22 kilometres off the west coast of Jutland, the substation will collect and transform power from 72 wind turbines before transmission to the onshore grid at Volder Søndervang.Awarded in 2022, HSM Offshore Energy was entrusted with the full EPCIC (Engineering, Procurement, Construction, Installation, and Commissioning) contract including HV equipment for both the topside and jacket foundation.The topside measures 39 by 36 by 18 metres and weighs approximately 2,600 metric tonnes, while the jacket spans 40 by 40 by 50 metres and weighs approximately 2,500 metric tonnes.“Delivering the Thor substation from first steel to sail-away has been a highly rewarding and technically complex journey. This achievement reflects the deep dedication, expertise, and teamwork across all disciplines, partners and subcontractors. The Thor project demonstrates what’s possible when innovation and integration come together - and it sets a new benchmark for what offshore substations can and should be,” said Koen Moons, Project Manager at HSM Offshore Energy.The installation of the Thor OHVS is expected to take place later in summer 2025, with the commissioning to follow, Günther Fenle, Project Director for Thor at RWE added.
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Solstad’s Normand Pioneer CSV Up for Petrobras Job
Norwegian offshore vessel owner Solstad Maritime has secured work for its Normand Pioneer construction support vessel (CSV) for the end-client Petrobras.The vessel will be on a bareboat contract from Solstad Maritime to Solstad Offshore (SOFF), which is the contract holder with Petrobras.Normand Pioneer CSV will be mobilized with a heave compensated E-type gangway system from Ampelmann to the contract that will beging in October 2025.Duration of the contract is 180 days firm and has a gross value of approximately $17 million, including mobilization.Built in 1999, Normand Pioneer features UT 742 design, and is capable of accommodating 73 people.
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Platinum reaches its highest level in over a decade, gold drops weekly
The dollar was stronger and the U.S. economy showed solid results. Gold prices were flat and headed to a weekly decline. Platinum reached its highest level since august 2014. As of 0156 GMT, spot gold was unchanged at $ 3,337.59 an ounce. U.S. Gold Futures declined 0.1% to $3343.20. Bullion is down 0.5% this week. The dollar was 0.1% weaker against its rivals last Friday but it was on track for a second consecutive weekly gain. The dollar's strength makes bullion priced in greenbacks more expensive for holders of other currencies. Kelvin Wong, senior market analyst at OANDA, said: "We're starting to see some data that still supports a somewhat vigilant U.S. economic outlook. Market participants may still be looking for a situation in which we don't expect a Fed that is very dovish." Data released on Thursday showed that U.S. Retail Sales rose more than anticipated in June. The sales increased by 0.6% after a 0.9% decline in May, which was not revised. Initial U.S. jobless claims dropped 7,000, to 221,000 seasonally adjusted for the week ending July 12. The economists polled had predicted 235,000 claims. The data were strong and showed that the largest economy in the world was on stable ground. This supported the Federal Reserve's hesitation to resume monetary policy ease. Fed Governor Christopher Waller, however, said that he still believes the U.S. Central Bank should reduce interest rates by the end of the month due to mounting risks for the economy. In a low interest rate environment, gold, which is often seen as a safe-haven in times of economic uncertainty tends to perform well. Investors closely monitored trade negotiations as U.S. president Donald Trump expanded his tariff war. Palladium rose 1.4% to 1,297.78 per ounce to its highest level since August 2023. Spot platinum also rose by 1%, to $1472.20 an ounce. Silver was unchanged at $38.12. (Reporting and editing by Rashmia Aich, Subhranshu Sahu, and Brijesh Patel in Bengaluru)
Japan's core inflation slows, but remains above BOJ target. This keeps bets on a hike alive
Japan's core rate of inflation, while slowing in June, has remained above the central bank target of 2% for more than three years. This highlights the lingering pressures on prices that support market expectations for future interest rate increases.
The data shows the difficulty the Bank of Japan faces when determining how soon it will resume raising rates from their still low levels, while balancing the mounting pressure on inflation and the risks that U.S. Tariffs pose to an already fragile economy.
Data released on Friday showed that the core consumer price index, which excludes volatile costs of fresh foods, increased 3.3% from a previous year in June. This was consistent with a market consensus.
The increase was lower than the 3.7% in May, mainly due to the resumption gasoline subsidies. However, it remained above the 2% target set by the central bank for the 39th consecutive month.
Separate index which excludes both fuel and fresh food costs, closely monitored by the BOJ to measure domestic demand-driven price increases, rose 3.4% from a previous year in June after rising 3.3% in May.
"Underlying Inflation remains elevated and will almost certainly exceed the Bank of Japan forecasts." The BOJ may be hesitant to act for a longer period of time than expected, given the trade tensions that are threatening the economy.
The BOJ is expected to review the data at its next policy session on July 30 and 31. At this meeting, the board will revise its inflation forecast as part of a quarterly assessment.
Food prices, excluding volatile fresh foods like vegetables, increased 8.2% from a year ago in June, an acceleration from the 7.7% increase in the previous month, which is a sign that cost of living pressures are increasing in households.
Data showed that the cost of rice staples nearly doubled compared to the previous year, resulting in a 19% increase in the price of rice balls and a 6.5% rise in the prices of sushi.
The data revealed that service-sector prices rose by 1.5% from 1.4% in may, indicating that companies passed on higher labour costs, albeit at slower rate than goods.
The BOJ ended a ten-year-old, radical stimulus program last year. In January, it raised the short-term rate to 0.5% on the belief that Japan is on the verge of achieving its 2% inflation goal.
The central bank may have signalled that it is willing to increase rates, but the impact of increased U.S. Tariffs on the economy forced them to lower their growth forecasts for May. This complicated the decision-making process around when to raise the rate next.
The first quarter of the year saw Japan's economy shrink as higher living costs impacted consumption. Exports dropped in May, the first drop in eight months. This stoked recession fears.
In a poll conducted in June, a slight majority of respondents expected that the BOJ would not raise rates this year.
(source: Reuters)