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Nippon Steel to earn $1.4 billion in fiscal year profit, as one-off items fade
Nippon Steel is Japan's largest steelmaker. On?Wednesday, it said that its net profit for the fiscal year ending in March will?increase dramatically to a?220 billion ($1.4 billion). This is because the effects of one-off losses are fading from its results. Nippon Steel also reported a 95% decline in profits for the previous financial year, to 17.2 billion Japanese yen. In February, the company announced that it "expected" to lose 70 billion yen in the fiscal year ending in March. This was due to an explosion at a blast-furnace and to costs related to the U.S. Steel transaction. Nippon Steel said it was able to "turn a profit" due to increased profitability, cost reductions, and gains in inventory and foreign exchange value, because raw material prices rose while the yen remained low. It said that it expects to suffer a loss of around 50 billion yen due to Middle East risks in the first quarter. However, the company added that its impact on full-year earnings 'wasn't yet possible to estimate. JFE Holdings, a Japanese steelmaker, and Kobe Steel warned earlier this month that the U.S. and Israeli 'war on iran' could lead to a rise in commodity prices and fuel shortages. JFE Holdings (Japan's second largest steelmaker) said that it was working to raise the price of steel in response to rising raw materials prices.
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Gold falls as US inflation data weighs down on Fed rate-cutting hopes
Gold prices extended ?losses on Wednesday as uncertainty over ?the Middle East conflict and stronger-than-expected ?U.S. ?Inflation data dampened hopes for Federal Reserve rate reductions, as attention focused on the upcoming summit between U.S. president Donald Trump and Chinese counterpart Xi Jinping. As of 0752 GMT spot gold was down 0.3% at $4,701.98 per ounce. This is a further retreat from the three-week high reached in the previous session. U.S. Gold Futures for?June Delivery gained 0.6%, to $4.712.70. The markets have begun to price in that the Fed could hike rates as early as the end the year. Kyle Rodda is a senior market analyst at Capital.com. Data revealed that U.S. consumer inflation rose further in April. The annual rate posted its biggest gain in three year, further reducing the hopes that the Fed would cut interest rates in this year. According to CME Group’s FedWatch, traders have priced in a rate hike this year. The tool shows that the market now sees a 30% probability of one by December. Investors are awaiting the Producer Price Index to be released later today, as well as the meeting between U.S. president Donald Trump and Chinese 'President Xi Jinping, which is scheduled for Thursday and Friday. Trump said on Tuesday that he doesn't think he needs China's assistance to end the Iran war, even though hopes of a lasting deal are fading and Tehran is tightening its grip on the Strait of Hormuz. Indian 'gold and silver futures' soared after New Delhi increased import tariffs from 6% to 15% as part of its efforts to reduce overseas purchases and ease pressure on the country’s foreign exchange reserves. Silver spot fell by 0.2%, to $86.34 an ounce. It had earlier reached its highest level since the 11th of March. Palladium rose 0.5% to $1,498,47, while platinum fell 0.4% at $2,118.13. (Reporting and editing by Subhranshu sahu, Rashmi aich, and Pablo Sinha from Bengaluru)
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Minutes show that Sweden's Riksbank is vigilant about inflation, but has not raised rates yet.
The central bank of Sweden can wait until it has a better picture to adjust policy. Erik Thedeen, Governor of the Riksbank, said that "the focus is on inflation risks and we will be monitoring closely any signs that 'inflationary trends are spreading more widely in the economy." It is too early to tell if a "change of direction" is required, but we are "ready to change our stance". Oil prices have risen dramatically due to the war in the Middle East. There is a growing consensus on the impact this will have on the global economy. Currently, conditions in Sweden are benign. As expected by the analysts in a poll, Riksbank held its policy rate at 1.75% on May 7. The growth in Sweden's first quarter was weak, and the annual underlying inflation rate, excluding energy prices, was at its lowest level in 30 years, 0.0% in April. This was partly due to the temporary reduction in VAT on food. Sweden is an exception in Europe because of its low inflation.
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Ukraine reaches Russia's energy goals after US-brokered truce ends
Ukraine resumed drone attacks on Russia’s oil refineries on Wednesday, just two days after the three-day ceasefire that was proposed by U.S. president Donald Trump had expired. As the four-year conflict continues, Ukraine has targeted Russian oil infrastructure to reduce Moscow's revenue from the energy industry and dent its military strength. The Russian defence ministry announced on Wednesday that two-hundred and eighty-six Ukrainian drones were intercepted, destroyed and destroyed over Russian regions. Authorities in southern Krasnodar said that a 'drone fragment' fell near an industrial facility and caused a fire. The village of Volna is where the oil products terminals at Taman Port are located. Authorities in the region of Astrakhan, Russia, said that debris from a separate Ukrainian attack on a drone caused an?incident at a gas-processing plant which also produces fuel. Igor Babushkin wrote on Telegram that "all enemy aircraft have been either shot down or neutralized by electronic warfare systems." The debris started a fire. Babushkin said that there were no injuries or casualties and the fire is expected to be put out 'within hours. The plant is located 1,675 km from the Ukrainian border. Sharon Singleton, Editor and Reporter (Reporting).
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Australia shares drop as CBA drops 10% on earnings missed, housing tax changes
Australian shares fell on Wednesday as investors sold Commonwealth Bank and other lending institutions. The?top?bank's missed profit heightened fears that Canberra's proposed curbs to tax incentives for property-investors could slow down mortgage demand. The S&P/ASX 200 closed 0.5% lower, at 8,630.40. This brings its overall decline to 2.8% in the last four sessions. Australia's biggest mortgage lender Commonwealth Bank plunged 10.4%, posting its weakest ever session. The bank erased a market value of?A$29.93 billion ($21.66billion) after an earnings missed and new Middle East-related provisions bleakened the outlook for the banking industry. The financials index is down 4% at a five-month low. The budget proposes to limit negative?gearing on newly constructed homes and replace the 50% capital gain tax discount with an inflation indexation. These changes are intended to shift?investor demand from existing properties toward new housing. Reduced tax incentives to property investors could slow the buying and selling existing homes. Dilin WU, Research Strategist, Pepperstone, says that the tax burden for most long-term investors will be higher under the new regime. This anticipated behaviour adjustment could impact rate-sensitive sectors of the financial services sector, and cause a wave?of prereform sales as July 2027 approaches. These stocks are owned by retirement funds and retail investors for the yield and franking credit. You can change the marginal buyer by changing the calculation of after-tax returns. It's a slow but real burn." In contrast, the real estate sector gained 1.2% on optimism that the budget's?first home buyer support would help to drive demand for new construction. Mirvac and 'LendLease' rose by 3.9% and 1,3% respectively. The copper price has boosted the miners to a 2.1% increase, a two-month high. BHP and Rio Tinto, two mining giants, jumped by 2.9%?and 1.9%?to new record highs. S&P/NZX50, the benchmark index for New Zealand's stock market, fell 0.1% at 13,063.06 following a budget that was tight on spending.
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Asia stocks turn green as AI cheer trumps Iran, inflation gloom
After an initial selloff, Asian stocks recovered their footing on Thursday. This was helped by a rebound in Korean shares. MSCI's broadest Asia-Pacific share index?outside Japan rose 0.3%, after a decline as high as 1%. Japan's Nikkei rose by 0.8% while S&P500 e-minis futures gained 0.2%. The Korean stock market fell by as much as 3.2 percent on the news that Samsung Electronics failed to reach an agreement with its union on pay. However, the shares recovered to close at a record high of 2.6% on the back of reports the government is trying to control the situation. In recent weeks the Korean market has exploded, breaking records on an AI-led rally. Some traders believe that this was due for a correction. Nomura analysts wrote in a report that "Robust AI exports from South Korea, and to a lesser degree, Japan, Singapore, and Malaysia, are buffering energy price shock." U.S. president Donald Trump stated on Tuesday that he did not believe he would need China's assistance to end the conflict with Iran. This was ahead of his meeting later this week with President Xi Jinping. Morgan Stanley stated in a research report that the U.S. China summit could lead to moderate index gains if the ceasefire continues. The firm also raised its price targets for several Chinese benchmarks. The report noted that earnings were improving, supply chain dominance was growing and the yuan was stronger. The bank upgraded its recommendation for developed market equity to overweight. The bank said that the Middle East conflict has created a wide range of returns, but fundamentals on the micro- and macro-level are generally supportive. "AI and capex related AI will remain relevant across asset classes, and regions." Investors expressed scepticism about the meeting between Trump and Xi leading to a significant improvement in relations. Phillip Wool, Chief Research Officer and Head of Portfolio Management at Rayliant Investment Research, said: "We have seen this movie before.?And we know that it won't end with an agreement that resets U.S. China relations." "This creates a low bar for success. As long as Trump can get along with Xi and the trade detente is maintained, this should be enough for both sides to consider this meeting a success." Brent crude fell 1.4% to $106.32, ending a three-day rally. Since late February when U.S., Israeli and Tehran strikes against Iran and the effective closure of Strait of Hormuz by Tehran rattled supply, oil prices have remained at or above $100 per barrel. Samsung Electronics' shares in Seoul fell as much as 6.1% on Wednesday after the electronics giant failed to reach an agreement with the South Korean labour union. This set the stage for over 50,000 employees to strike. Stocks rose by 1.8% later after South Korean PM Kim Min-seok stated that the government would support any talks to avoid a strike, Yonhap News Agency reported. The S&P 500 fell 0.2% and the Nasdaq Composite dropped 0.7% on Tuesday after U.S. Consumer inflation rose by the'most in three year in April. This increased the risk that the Federal Reserve would be forced to increase rates sooner than expected. According to CME’s FedWatch Tool, the markets have priced in any possibility of a Fed rate cut this year. Meanwhile, expectations for an increase?of atleast 25 basis points?at the December meeting are now over 35%, up from 22% earlier that week. The yield on U.S. Treasury bonds 10-years was down by 1.0 basis points to 4.459%. This is a slight retreat after reaching its highest level since July. The U.S. Dollar Index, which measures the strength of the greenback against a basket six major counterparts, held steady at 98.369 and is on course for its third straight day of gains. The dollar was 0.1% higher at 157.73 yen after the Japanese currency briefly surged on Tuesday due to "rate-check" speculation. This is often seen as an indication of intervention. Sources claim that Tokyo intervened to stop the decline of the yen in the last two weeks. Early European trades saw pan-regional futures up 0.9%. German DAX Futures climbed 0.8%, and FTSE Futures gained 0.6%. Gold was down by 0.1% to $4,708,24. Bitcoin was up by 0.5% to $81,110.13, and ether was up 0.8% at $2,301.66. (Reporting and editing by Shri Navaratnam, Sam Holmes, and Gregor Stuart Hunter)
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Gold falls as US inflation data weighs down on Fed rate-cutting hopes
Gold prices ?extended losses on Wednesday as uncertainty ?in the Middle East and stronger-than-expected ?U.S. ?Inflation data dampened hopes for Federal Reserve rate reductions, as attention was also focused on the Trump-Xi Summit this week. As of 0613 GMT spot gold was down 0.1% at $4,710.37 an ounce. This is a further retreat from the three-week high reached in the previous session. U.S. Gold Futures for June Delivery gained 0.7%, to $4.717.50. The markets have begun to price in the possibility of a rate hike by the Fed as early as this year. Kyle Rodda is a senior financial analyst at Capital.com. Data revealed that U.S. consumer inflation rose further in April. The annual rate posted its biggest gain in three year, further reducing the hopes that the Fed would cut interest rates in this year. According to CME Group’s FedWatch, traders have priced in a rate cut by the Fed this year. Markets now see a 30% probability of a rate hike by December. Investors will be watching the Producer Price Index later today, as well as the meeting between U.S. president Donald Trump and Chinese president Xi Jinping, which is scheduled to take place in Beijing from Thursday through Friday. Trump said Tuesday that he "doesn't think" he will need China to help him end the war against Iran. This is despite the fact that hopes of a lasting deal have dwindled, and Tehran has tightened its grip on the Strait of Hormuz. Indian gold and silver futures rose after New Delhi increased import tariffs from 6% to 15% as part of its efforts to curb overseas purchases and reduce pressure on the country's reserves. Spot'silver' was unchanged at $86.53 an ounce after reaching its highest level since the 11th of March earlier in the day. Palladium rose 0.1% to $1,492.75, while platinum fell 0.3% to $2120.29. (Reporting and editing by Subhranshu sahu, Rashmi aich and Pablo Sinha from Bengaluru)
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MSCI's latest May revision added four Indian stocks and removed four others from its key global index.
The global index provider MSCI announced earlier on Wednesday that it had added four Indian stocks to its Global Standard Index, which is widely tracked. These changes will take effect on May 29, 2026. Federal Bank, Multi Commodity Exchange of India, National Aluminium, and Indian Bank are included in the index. Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers, and Rail Vikas Nigam are excluded. India's weighting in the MSCI Global Standard Index is broadly unchanged, at 12.3%. This compares to a?12.4% following the review of February, and the number Indian constituents remains at 165. Adani Energy Solutions, originally seen as a temporary addition, was left out when it was placed under the NSE's Additional Surveillance Mechanism Framework, a watchlist of unusual trading activity that disqualifies the stock for inclusion. MSCI indexes, which are important global benchmarks that large passive funds track, have a major impact on stock flows. Inclusions usually attract new passive capital while deletions can often cause outflows of funds as funds rebalance their portfolios. Nuvama's Quantitative Alternative Research?expects a passive inflow of $491 Million into Federal Bank, 373 Million into MCX and $308,000,000 into National Aluminium. The projected outflows for Hyundai Motor India, Jubilant Foodworks?, Kalyan Jewellers?, and Rail Vikas?Nigam will be $281 million each, $161 millions, $137 millions, and $136million respectively. Adani Power, BPCL and FSN E-Commerce,?Trent, Oracle Financial Services, are expected to also?draw inflows because of higher weightages. Weights for HUL, Bajaj Finance. TCS, ONGC.and Ultratech Cement, among others,.were trimmed. MSCI's Small-Cap Index had a greater number of exclusions. India's count was reduced from 474 to 459, while the Global Standard Index experienced a balanced mix of additions and removals.
Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and revise financial forecasts.
In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for up to one quarter of its operating costs.
Here is an alphabetical list of the ways airlines are responding to this issue:
AEGEAN AIRLINES
The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "significant impact" on their first-quarter earnings.
AIRASIA X
Malaysian Airlines'?executives stated that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%.
AIR CANADA
The Canadian largest airline plans to reduce four of its daily flights to New York to 38 due to rising fuel prices. The four flights from JFK International Airport to be cut between June 1, 2026 and October 25, 2026.
AIR FRANCE-KLM
The airline group announced that it would increase the price of?long-haul tickets to offset rising fuel costs. Cabin fares will rise by 59 euros (50 euros) per round trip.
KLM, the Dutch arm of the group, announced on April 16 that it would cancel 160 flights across Europe due to rising fuel prices.
AIR INDIA
The Indian airline said that it will change its fuel surcharge system from a flat surcharge for domestic flights to one based on distance. The Indian carrier said that surcharges for international routes do not compensate the steep rise in fuel costs.
AIR NEW ZEALAND
On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets.
AIR TRANSAT
The Canadian airline announced that it would reduce its planned capacity by 6 percent from May to October of this year. Cuts are expected to be made on routes to Europe, the Caribbean, and Cuba.
AKASA AIR
Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights.
ALASKA AIR
The airline retracted its profit forecast for the full year and warned that margins would be severely impacted by the sharp increase in fuel prices. It has also reduced capacity in certain markets.
AMERICAN AIRLINES
U.S. airline announced that it will increase the fees for checked baggage by $10 for each of the first two bags and $150 for the third bag for domestic and short-haul flights. The airline also reduced certain benefits for passengers in economy class.
ASIANA AIRLINES
Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases.
CATHAY PACIFIC
According to a termsheet seen on Wednesday, the airline raised HK$2,08 billion ($265,58 million) by issuing three-year fixed rate notes with a yield of 3.78%.
CEBU AIR
The Philippines-based carrier said that the sharp rise in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact.
CHINA EASTERN EXPRESS AIRLINES
The airline announced that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800 km will be charged a 60-yuan fee ($9), while flights above 800 km will be charged a 120-yuan charge.
DELTA AIR LINES
Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and raise fees for checked baggage in order to offset the rising costs of jet fuel. The increase will be $10 for first and second bags, and $50 on third bags.
The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations.
EASYJET
EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds (729 and 756 million dollars), which includes 25 million pounds of extra fuel costs for March.
FRONTIER AÉRIENS
Fuel prices have risen significantly since the airline's last forecast, prompting it to review its full-year outlook.
GREATER BAY Airlines
The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan.
HONG KONG Airlines
Fuel surcharges will be increased by up to 35 percent on flights from Hong Kong to the Maldives, Bangladesh, and Nepal.
British Airways' owner IAG stated in March that it did not intend to increase ticket price immediately as it had hedged a large amount of fuel for the short to medium term.
INDIGO
India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees.
JETBLUE AERWAYS
Joanna Geraghty is the CEO of the low-cost airline based in the United States. She told her employees, via a memo, that she would not be considering bankruptcy this year despite the fact that rising jet fuel prices threaten the financial recovery. According to a SEC filing, the company has entered into a debt financing agreement worth $500 million.
KOREAN AIR
Sources with knowledge on the subject say that South Korean carriers will be forced to enter emergency mode in April due to rising fuel prices.
LUFTHANSA
The airline group announced that 20,000 short-haul flight would be removed from the schedule until October. This is equivalent to 40,000 metric tonnes of jet fuel. The German company had previously announced that it would be grounding 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected.
PAKISTAN INTERNATIONAL FLIGHTS
Fuel surcharges are cited as the reason for raising domestic fares up to $20 and international flights by up $100.
QANTAS AIRWAYS
Qantas, an Australian airline, said that it has delayed a planned A$150-million ($107-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion.
After cancelling "couple hundred flights" in March, the Scandinavian airline announced that it would cancel 1000 flights in April due to high fuel and oil prices.
SPIRIT AIRLINES
Air Current cited people familiar with the situation to report that the U.S. low cost carrier requested hundreds of millions in emergency funding from the Trump administration to offset the rising fuel prices and prevent a potential liquidation.
SPRING AIRLINES
Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES
Fuel prices have impacted the margins of this American airline, which has forecast a second-quarter loss below expectations. The airline had previously announced that it would increase the cost of checked bags by $10 each for the first and the second bag. This will bring the total to $55 and $45 respectively.
The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues.
THAI AIRWAYS
The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices.
The European airline, tour operator and travel agency cut their full-year underlying profit outlook and suspended revenue forecasts, claiming that they had incurred extra costs of about 40 million euros due to the March war, including repatriation and operational disruptions.
TURKISH AIRLINES LUFTHANSA
SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1.
Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead opting to "retain earnings in order to preserve cash".
T'WAY AIR
As part of the measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay.
UNITED AIRLINES
Scott Kirby, CEO of the U.S. airline, said that ticket prices could rise as much as 15% to 20% in order to offset an increase in jet fuel costs. The company has already implemented five fare hikes late in the first-quarter, along with increased baggage fees that it says have begun to offset rising fuel prices.
The carrier forecast that it would also make profits in the second and third quarters below Wall Street expectations. It said they expected to recover just 40-50% of fuel price increases through fares in the second, but 70-80% by the third.
VIETJET
Vietnamese budget airline has announced that it has adjusted flight frequencies on certain routes due to possible fuel shortages.
VIETNAM Airline
Vietnam's aviation authority announced that the carrier will cancel 23 flights a week on domestic routes starting in April after it requested assistance from the government to remove an environmental tax on jet fuel.
VIRGIN ATLANTIC
Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability.
VIRGIN AUSTRALIA
Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter.
VOLOTEA
The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight.
The Globe and Mail reported that WESTJET, a Canadian airline, has reduced seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
(source: Reuters)