Latest News
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Reliance acquires Kelvinator, a home appliance maker from Sweden's Electrolux
Reliance Industries announced on Friday that its retail arm had purchased the Kelvinator Brand in India from Sweden’s Electrolux. The Mukesh Ambani led group is now a stronger player in the rapidly growing consumer durables market. Reliance Retail is expanding its private-label product portfolio, as well as its footprint, in the home appliances and electronics segment, which has seen a boom due to urbanisation and rising incomes. Reliance Digital operates stores that sell everything from washing machines to refrigerators and washing machines, as well as smartphones and laptops. Since 2019, the company has sold Kelvinator refrigerators, air conditioning units and washing machines under a licensing agreement with Electrolux. This is primarily done through smaller appliance retailers. In India, Kelvinator gained prominence during the 1970s and 1980s as its refrigerators marketed with the tagline "the Coolest One" became a symbol for aspirational life among the middle class. The brand suffered a loss of ground in the 1990s after global competitors began flooding the market, and consumer preferences started to shift. Electrolux, which did not reveal financial details about the deal, said that in its Friday quarterly earnings report it had booked a profit of 180 million Swedish crowns (about $18.5 million) on the sale of the brand. According to an EY report, India's consumer products market grew the fastest among major economies in June 2024 and could double to 3 trillion Rupees ($34.8billion) by 2029. Reliance Retail's initial public offering is not expected to happen before 2027 or even 2028, according to a report published earlier this month. Sources told the news agency in November that the company planned to solve operational issues before going public.
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Polish companies are worried about the worsening conditions in Q2 according to central bank
The central bank reported that Polish companies were concerned about the business environment in the second quarter. They cited the rising cost of raw materials and other supplies as the main obstacle to growth. In a Friday survey on the business climate in the quarter of April-June, the National Bank of Poland reported that the impact of these factors had clearly decreased, as well as the impact of other obstacles such as changing regulation, high taxes, fees and labour costs. The negative impact of low demand or declining demand has not changed. The central bank stated that uncertainty, partly related to geopolitical conditions, had become a major barrier. Companies reported that price pressures had significantly weakened, despite their concern about the overall outlook. The number of companies that raised their prices dropped, which resulted in the lowest price pressure index in five years. The report also showed that Polish companies reported a decrease in wage pressures. In fact, the percentage of firms reporting its intensification fell to the lowest since the end 2020. The report showed that both quarterly and annually, the number of companies who plan to continue existing investments has increased while the number of new investment initiators has decreased. The public sector showed a greater level of optimism about investment, while the private sector was slightly less optimistic. The central bank reported that "the plans of foreign firms were particularly pessimistic," with plans to decrease rather than increase investments in the next quarter. Reporting by Pawel Flikiewicz, Editing by Kim Coghill
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G20 finance chiefs reach consensus in South Africa, despite US tariff tensions
The G20 finance chiefs expressed optimism on Friday about a possible agreement on a position on global trade and other challenges despite the tariffs imposed by U.S. president Donald Trump, which overshadowed the meeting. To the disappointment of the South African hosts, the G20, which was created as a forum to promote cooperation in the fight against the global financial crisis of 2008, failed to come to a consensus when the finance ministers and central banks met in February. Even though G20 communiqués are not legally binding and their exact wording is unclear, an agreement today would be considered a success. Francois-Philippe champagne, Canadian Finance Minister, said late Thursday that he was cautiously confident the meeting at Durban's coastal city would lead to a final communiqué. A G20 official, who asked to remain anonymous, expressed a similar optimism. South Africa has promoted an African agenda under the motto of its presidency "Solidarity Equality Sustainability". Topics include high capital costs and funding climate change actions. The delegates at the meeting tried to reach agreement on the global economic challenges including the uncertainty caused by trade tensions as well as language on climate finance. Two delegates stated that the biggest challenge was determining what language Washington would accept. This task was made more difficult by the absence from the meeting of U.S. Treasury Sec. Scott Bessent. Bessent also skipped the Cape Town meeting in February, to which a number of officials from China and Japan, as well as Canada, did not attend. Washington will assume its rotating G20 presidency in December. Bessent's absent was not ideal but the U.S. engaged in discussions about trade, global economy, and climate language. A G20 delegate who requested anonymity said that Bessent’s absence wasn’t ideal. The finance ministers of Brazil, China and India as well as France, Russia, and France's Central Bank Governor Lesetja Kganyago also missed Durban, but South Africa's Central Bank governor Lesetja Kganyago stated that it was important to have all G20 nations represented. In his opening remarks, Enoch Godongwana, South African Finance minister said that the G20 played a crucial role in enhancing rules-based co-operation and driving collective action to address global challenges which no single country can solve. He said that the need for bold, cooperative leadership had never been more important. Reporting by Olivia Kumwenda Mtambo, Kopano Goko, Colleen Goko, Philip Blenkinsop and Maria Martinez in Durban; Writing by Philip Blenkinsop. Editing by Rachna uppal.
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Copper reaches a one-week record high due to Chinese demand and hopes for a trade agreement
Copper reached a new high of more than a week on Friday. This was due to Chinese buyers, the hope for a U.S. China trade agreement, and a higher appetite for risk among investors. As of 0900 GMT on the London Metal Exchange, three-month copper gained 0.7%, reaching $9,735 per ton. This is its highest since July 10. Marex Senior Base Metals Strategist Alastair Munro, a Marex senior base-metals strategist, said that LME copper prices have eased since their three-month high of $10,200.50 on July 2. Chinese participants are now buying dips. "Add that chatter in the wires about a possible U.S. Sino trade agreement coming up in the months ahead...The topside surprise remains." China's Commerce Minister said that the U.S. trade relationship with China, the largest metals consumer in the world, should be restored to normalcy. An official from the Ministry of Industry said that China would release action plans in order to stabilize growth for the sectors of machinery, autos and electrical equipment. The Shanghai Futures Exchange's most traded copper contract rose by 0.7%, to 78.410 yuan (10,922.74) per ton. A Shanghai-based metals expert at a futures firm said that "LME copper stock has been increasing, mostly at its Asia warehouses. Some traders may have bet on increased buying by China due to recent price drop," A weaker dollar and an increase in risk appetite by investors were also supportive of the market. The dollar is weaker, making commodities priced in greenbacks less expensive for buyers of other currencies. U.S. Comex Copper Futures rose 1.2% to $5.58 per lb. This brings the premium of Comex to LME copper up to $2,561 per ton. Other metals include LME aluminium, which rose by 0.4% to 2,588 per ton. Zinc advanced by 1.3% to 2,771.50; lead rose 1.5% to $2,000; nickel rose 0.2% to $15,130, and tin climbed 1.1% to 33,380. Click here to see the latest news in metals.
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The weather has improved and hundreds of firefighters are fighting wildfires in Southern France
A wildfire spanning 240 hectares (593 acres), erupted in the northwest outskirts Marseille a week ago, forcing residents to evacuate, or go into lockdown, and closing the airport. Pierre Bepoix is the colonel in charge of the rescue operations, and the deputy director of the local firefighters. He said that 150 people were evacuated but the firefighters managed to save 150 houses and parts of the forest. Bepoix said that the fire swept through dense vegetation, which made their work more difficult. "Obviously, the priority was to preserve and protect these homes and any lives that might be inside these buildings." In a press release, local officials stated that 120 homes were threatened by the fire. They added that they could not yet identify any damage that may have occurred to these homes, but that two firefighters were injured. In Spain, 3,200 hectares were destroyed by a wildfire which erupted on Thursday night in the central Toledo Province and was visible from Madrid. Early on Friday, regional emergency services reported that firefighters had secured a perimeter despite the high temperatures and strong winds forecast for the rest of the day. (Reporting from Manon Cruz and Makini Brice, in Martigues; additional reporting from David Latona, in Madrid; editing by Sharon Singleton).
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EU approves new sanctions against Russia with lower cap on oil prices
The European Union agreed on Friday to an 18th set of sanctions against Russia for its war in Ukraine. These include measures that aim to deal further blows with the Russian oil industry and energy sector. Diplomats said that the package is intended to lower G7's price limit for buying Russian crude to $47.6 a barrel. The EU Kaja Kallas, EU's chief of foreign policy, said that the EU had just approved "one of its most powerful sanctions packages against Russia". "We will continue to raise the costs so that stopping the aggression is the only way forward for Moscow." G7 PRICE CAPITAL IS NOT EFFECTIVE YET So far, Russia has managed to sell Most of its oil The price cap is now higher than before, as it's unclear who will be policing its implementation. traders doubt The new EU sanctions on Russia's oil trade will have a significant impact. The package includes a ban on all transactions relating to the Nord Stream pipelines that run under the Baltic Sea. It also applies to Russia's financial industry. Kallas also said that the sanctions targeted 105 Russian ships, which are known as the "shadow fleet" by Western officials. They use this term to describe the ships that Moscow uses in order to circumvent oil sanction. She didn't name any banks. The Ukrainian president Volodymyr Zelenskiy said that the decision was "essential and timely", as Russia escalates its air war against Ukrainian cities and villages. And foreign minister Andrii Sybiha stated: "It is crucial to stop Russia's aggression by denying it its oil revenue." Since December 2022, the Group of Seven Western Economic Powers has tried to impose price caps on purchases of Russian Oil. The aim is to prohibit the trade of Russian crude purchased at higher prices by prohibiting insurance, shipping and reinsurance companies from handling tanks carrying this crude. US REFUSES TO BACK EUROPE OVER PRICE CAPTCHA Since the beginning of the year, the European Union and Britain has been pressing to lower the cap. This is because the oil futures have fallen so much that the $60 per barrel level today is largely irrelevant. Analysts and traders of oil say that the United States has refused to take action, leaving the EU on its own to implement the measure. The dollar is the dominant currency in global oil transactions and U.S. institutions are the main clearing houses. Therefore, the EU cannot block any trades if it denies access to dollar clearing. The agreement on the new EU package has been held up by weeks because Slovakian Prime Minister Robert Fico insisted on concessions regarding a separate plan that would reduce EU dependency on Russian oil. Fico announced Thursday night that his opposition was over. Greece, Cyprus and Malta expressed concern about the impact of the cap on the shipping industry. Malta, which was the last to resist, joined the group on Thursday. Reporting by Lili Bayer and Andrew Gray; editing by Ingrid Melander, Kevin Liffey, Sudip Kar Gupta and Yuliia Payne.
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Boliden CEO anticipates dividend payment to resume
Mikael Stafas, Chief Executive Officer of Boliden's Swedish subsidiary, said in an exclusive interview with the newspaper on Friday that Boliden will resume dividends. He said that the copper and zinc producer has committed to its dividend distribution policy, and will continue to do so until 1/3 of its profit is distributed to shareholders. This was after Lundin Mining acquired the Somincor mines and Zinkgruvan from Lundin Mining. Staffas stated that "even though we had good cash flow this quarter, I believe most people expected the balance sheet to be much stronger after the acquisition." Boliden has not yet been ready to pay additional dividends. However, he wouldn't rule out the possibility if there was a surplus of capital. The group, that also mines silver and gold, reported a free cash flow (FCF), excluding the acquisitions of 2,035 millions Swedish crowns ($210.19million) in the second quarterly. RBC and JP Morgan both said that FCF was higher then expected, with the boost coming from the release working capital. Staffas refused to comment on the potential size of a dividend.
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Global shares increase as U.S. consumers hold up and the yen is weak before Japan's vote
Global shares rose on Friday, as strong U.S. corporate earnings and economic data this week helped to ease tariff concerns. The yen was headed for a second consecutive weekly loss in advance of the crucial legislative election that will take place in Japan on Sunday. Stronger-than-expected U.S. retail sales and jobless claims suggesting modest improvement in economic activity helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. European and Asian stocks also gained on Friday. European stocks last rose 0.4%, while Asian shares outside Japan were up 0.9%. Wall Street futures also rose around 0.1%. Eren Osman said that the positive start of earnings season in America, with streaming giant Netflix exceeding expectations, was also a factor supporting investor confidence. "We are pretty positive on the macro-background (in the U.S.)... We see some scope for growth slowing, but nothing material, and this is giving the markets a nice boost," Osman added, adding that the full potential impact of U.S. Tariffs remains in focus. Next week, Alphabet and Tesla will be among the companies reporting their half-year results. This will test the mood of the market. The dollar's value against the yen was essentially unchanged at 148.65, but it was down almost 1% in this week following polls that showed Shigeru Shiba's government was in danger to lose its majority during the Sunday upper house elections. The data released on Friday revealed that Japan's core rate of inflation decreased in June, due to temporary reductions in utility bills. However, it remained above the central banks 2% target. Ishiba has been losing popularity because of the rising cost of living. This includes the price of rice. Jayati Bharadwaj is the head of FX Strategy at TD Securities. She said that if PM Ishiba resigns due to an election loss, USDJPY would easily rise above 149.7, as this would bring about an initial period political turmoil. The JPY could recover from its recent dramatic weakness, if the ruling alliance wins and can make rapid progress on a deal with Trump. The U.S. Dollar Index fell 0.1% on the currency markets to 98.365 but is heading for its second consecutive weekly gain after bouncing back from a three-and-a half year low reached over two weeks ago. Fed Governor Christopher Waller continued to say on Thursday that he believes the central bank should reduce interest rates by the end of the month, despite the fact that most officials have not expressed a desire to do so. Treasury yields are slightly lower. Benchmark 10-year U.S. Treasury Yields fell 2 basis points, to 4.44%. Two-year yields were also 2 bps lower at 3.90%. After drone strikes on Iraqi Kurdistan's oil fields, supply concerns fueled Friday's gains in oil prices. U.S. crude oil rose by 0.4%, to $67.81 a barrel. Brent rose by 0.4% as well to $69.79 per barrel. Gold prices rose 0.3%, to $3348 per ounce.
RWE Secures All Permits for Construction of Denmark’s Largest Offshore Wind Farm
The Danish Energy Agency has granted RWE the offshore construction permit for 1.1 GW Thor offshore wind farm, marking the final authorization ahead of construction start set for spring 2025.
Good progress is already being made on land, with the laying of cables and the construction of an onshore substation in the municipality of Lemvig.
At the beginning of 2025, RWE will prepare the seabed for the construction activities, which will kick off in spring when the foundations are installed.
Turbine installation is scheduled to begin in 2026, RWE said.
Located approximately 22 kilometres off the west coast of Jutland, Thor will consist of 72 Siemens Gamesa wind turbines of SG 14-236 DD type.
Half of the turbines will be equipped with CO2-reduced steel towers and 40 turbines will use recyclable rotor blades.
The plan is to perform the turbine installation works from the port of Esbjerg. The port of Thorsminde will serve as an operations and maintenance base, creating 50-60 local jobs.
Construction of RWE’s new service building is expected to start later this year. Thor is expected to be fully operational by no later than the end of 2027.
“With our Thor project we are delivering Denmark’s largest offshore wind farm to date. But it is not just the size of the project that makes us ambitious.
“We are also leading the way with investments in new sustainable technology with recyclable rotor blades and turbine towers made of greener steel. Denmark is already a pioneer when it comes to renewable energy and innovative solutions. We are proud to contribute to this journey with Thor,” said Thomas Michel, COO RWE Offshore Wind.