2025-07-29 23:36

MEXICO CITY, July 29 (Reuters) - Mexico placed $12 billion in a debt offering to support indebted state oil producer Petroleos Mexicanos (Pemex), the nation's finance ministry said on Tuesday. The offering came in the form of pre-capitalized securities, or P-Caps, the ministry said in a statement. The funds will go toward covering financial obligations and debt payments due in 2025 and 2026, it added. Sign up here. Total demand for the dollar-denominated securities reached $23.4 billion, allowing Mexico to place more than the $10 billion originally planned, the ministry said. President Claudia Sheinbaum's administration has sought to shore up Pemex's finances, as the oil firm - the world's most indebted energy company - owes billions to suppliers and creditors. At the end of the second quarter, Pemex held a financial debt of $98.8 billion and owed providers $22.79 billion. Sheinbaum has pledged to boost production to 1.8 million barrels per day, but firm executives acknowledged on Monday Pemex will need so-called mixed contracts with private companies and continued government support to reach that target. https://www.reuters.com/business/energy/mexico-pulls-12-billion-prop-up-indebted-oil-producer-pemex-2025-07-29/

2025-07-29 23:21

UnitedHealth forecasts annual profit below expectations Whirlpool plunges after Q2 earnings miss, FY profit outlook trim UPS weighs on Dow Transports Indexes off: Dow 0.46%, S&P 500 0.30%, Nasdaq 0.38% NEW YORK, July 29 (Reuters) - U.S. stocks closed lower on Tuesday as the S&P 500 and Nasdaq retreated from record highs after some disappointing corporate earnings, while investors awaited a Federal Reserve policy statement. A host of Dow components reported earnings, with UnitedHealth (UNH.N) , opens new tab, Boeing (BA.N) , opens new tab and Merck (MRK.N) , opens new tab all closing lower after their quarterly results. Sign up here. Health insurer UnitedHealth stumbled 7.5% and was the biggest drag on the Dow after a disappointing profit forecast, while Boeing declined 4.4% despite reporting a smaller second-quarter loss. Merck dipped 1.7% after the drugmaker reported quarterly results and said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to persistent weakness in demand. "Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are." Earnings from megacaps Meta (META.O) , opens new tab, Microsoft (MSFT.O) , opens new tab, Amazon (AMZN.O) , opens new tab and Apple (AAPL.O) , opens new tab are due this week and are likely to have a strong influence on market direction due to their large market weightings. The Dow Jones Industrial Average (.DJI) , opens new tab fell 204.57 points, or 0.46%, to 44,632.99, the S&P 500 (.SPX) , opens new tab lost 18.91 points, or 0.30%, to 6,370.86 and the Nasdaq Composite (.IXIC) , opens new tab lost 80.29 points, or 0.38%, to 21,098.29. United Parcel Service (UPS.N) , opens new tab shares plunged 10.6% as the package delivery company posted earnings and again declined to issue annual revenue and margin forecasts, deepening concerns that U.S. President Donald Trump's continually changing trade policy is weighing on the company. That helped drag down the Dow Jones Transport Average (.DJT) , opens new tab by 2.3% for its biggest daily percentage decline since May 21. Likewise, Whirlpool (WHR.N) , opens new tab plummeted 13.4% after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs. Procter & Gamble (PG.N) , opens new tab shares shed 0.3%, as the maker of consumer goods such as dish soap and toilet paper forecast annual results below estimates and said it would raise prices on some products to offset the tariff impact. Nearly 200 S&P 500 components have reported earnings and are posting results 6.4% above expectations, according to LSEG data, compared with an average of 6.3% over the last four quarters. On the economic front, consumer confidence in July increased more than expected to 97.2. In June, U.S. job openings and hiring, or JOLTS data, had decreased, pointing to a further slowdown in labor market activity. The JOLTS report was the first in a string of data on the labor market this week, culminating in Friday's government payrolls report. The Fed is largely expected to leave rates unchanged at its policy announcement on Wednesday. Remarks by Fed Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts. Key negotiations between the U.S. and China completed their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict, with Trump saying he was told by Treasury Secretary Scott Bessent that the latter had a very good meeting with Chinese officials. Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 2.08-to-1 ratio on the Nasdaq. The S&P 500 posted 32 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 76 new highs and 83 new lows. Volume on U.S. exchanges was 18.01 billion shares, compared with the 17.89 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/equities-close-lower-earnings-weigh-fed-statement-tap-2025-07-29/

2025-07-29 23:12

Indonesia coal exports down 12.6% y/y by volume, Kpler says Nickel smelters' coal-fired power demand to peak in 2026, ICMA forecasts Top miners' shares fall by 1% to 18% this year, underperforming market SINGAPORE/JAKARTA, July 30 (Reuters) - Indonesia's coal producers are trapped between the rock of falling exports and a hard place of peaking demand from the nickel smelters that had been driving the fuel's consumption domestically, creating a growth conundrum for the companies. Coal is Indonesia's biggest export earner, making $30.49 billion in 2024, and plunging revenues from the sector would have disproportionately bad effects on the country's commodity-dependent economy, Southeast Asia's biggest. Sign up here. With lower profit margins leading to dropping share prices, coal's woes point to a future of workforce cuts, slowing output and fewer contributions to government coffers at a time when President Prabowo Subianto is starting up ambitious spending plans. Electricity-hungry smelters, most of which process nickel, have been the fastest growing demand source for Indonesian coal. However, that demand will peak at 84.2 million tons by 2026 and fall to 78.6 million tons in 2027, according to the Indonesian Coal Miners Association (ICMA), because of nickel industry overcapacity and the potential implementation of stricter emissions regulations. At the same time, Indonesian coal exports through June this year are down 12.6% from a year earlier by volume, data from Kpler showed, with government data showing the value of exports through May down 19.1%. Exports to China, the country's biggest coal buyer, fell by 30% from a year earlier in June, Chinese government data showed, as it relies on more domestic output and takes advantage of low prices to import higher quality coal from elsewhere. "Indonesian coal miners are taking steps to diversify their business to hedge against a steeply falling demand for low- to mid-grade coal," said Manish Gupta, senior analyst for Asia thermal coal research at Wood Mackenzie. "We don't expect the growth in captive (plant) addition from nickel smelting to continue going forward," he said, using the industry jargon for power plants connected to nickel smelting sites, known as captive plants. Indonesia's expanding nickel smelting industry had propelled a three-fold increase in Indonesia's captive coal-fired capacity to 16.6 gigawatts (GW) in 2024, from 5.5 GW in 2019, according to the coal plant tracker from Global Energy Monitor. But as nickel prices have fallen due to increasing overcapacity and lower stainless steel imports by China, Indonesian smelters have idled some facilities. In June, smelting inactivity at Indonesian nickel pig iron operations was 9% higher than a year earlier, the highest in two years, mainly as the country's biggest nickel producer Tsingshan Holdings likely halted output at its joint venture plants at Morowali Industrial Park, data from geospatial analytics firm Earth-i showed. H. Kristiono, the deputy chairman of the ICMA, which includes Adaro (AADI.JK) , opens new tab, Bayan (BYAN.JK) , opens new tab and Bukit Asam (PTBA.JK) , opens new tab as well as foreign traders Adani Global and Trafigura, still expects the smelter industry's coal-fired power capacity to grow despite the underutilisation, although at a slower rate than previously estimated and still doubling by the end of the decade. Coal will remain the dominant power fuel source for the nickel sector because of challenges to switching to other sources, little progress connecting sites to the national grid and Indonesia's resistance to stricter regulations. About 6 GW of capacity, or 46% of all coal-fired power plants under construction in Indonesia, are planned for Central Sulawesi and North Maluku provinces, where nickel processing is concentrated, according to the Global Coal Monitor. COMPANIES SQUEEZED Overall though, the combination of lower exports and slower captive power demand growth is pressuring Indonesia's coal producers who are also being squeezed by higher government payments and rising fuel costs. Profit margins at major miner Bayan has fallen for three years and state-owned Bukit Asam's first quarter margins fell below the annual averages for every year since 2010, LSEG data showed, due to increased royalty payments and rising machinery costs. Shares of Indonesia's top five coal miners by output are down 1% to 18% this year, underperforming broader market (.JKSE) , opens new tab growth of nearly 7%. Adaro is down 18%, while Golden Energy Mines (GEMS.JK) , opens new tab and Bukit Asam have lost more than a tenth of their value since the beginning of this year. The companies did not respond to requests seeking comment. In April, Indonesia announced new royalty rates for coal, nickel and other minerals to support Prabowo's higher spending. While some big coal miners saw their effective royalty rate drop, others faced a 1 percentage point increase from April. In 2024, royalties made up 16% of the average coal producer's cost structure, the highest among major Indonesian commodities, according to Australia-based Energy Shift Institute. Jakarta is also considering export duties on coal shipments for certain price levels to boost state coffers, at a time when miners already face higher fuel costs due to the removal of biodiesel subsidies. Some coal miners looking to weather the downturn are exploring diversification options, but progress has been slow, analysts say. Bukit Asam, for example, said in May it is considering a $3.1 billion investment in a plant to convert coal to synthetic natural gas. "Producers are eyeing a mix of downstream options, renewables opportunities, or investments in alternate commodities," Wood Mackenzie's Gupta said. https://www.reuters.com/markets/asia/indonesia-nickel-slump-piles-pressure-coal-miners-hit-by-falling-exports-2025-07-29/

2025-07-29 23:00

July 29 (Reuters) - Cadbury-parent Mondelez International (MDLZ.O) , opens new tab beat Wall Street estimates for second-quarter revenue and profit on Tuesday, supported by steady consumer demand for its higher-priced chocolates and biscuits, particularly in international markets including Europe. To offset rising input costs such as cocoa, the Milka and Toblerone chocolate maker has raised prices over successive quarters, boosting profits. Resilient demand despite the hikes supported revenue growth in key segments such as Europe. Sign up here. Volumes in Europe, a major revenue contributor, were down 1.3 percentage points (pp), compared to a 3.1 pp dip a year ago, while revenue in the segment surged 18.7%, driven by a 13.8 pp rise in pricing. North America volumes declined 2.4 percentage points, widening from a 1.2 pp decline in the same quarter last year. Macroeconomic uncertainty from U.S. trade tariffs under President Donald Trump has pressured consumer spending in the United States, pushing budget-conscious shoppers toward cheaper private-label alternatives. Mondelez, which flagged the trend last quarter, said it plans to counter it through value-focused price packs in its American market. "U.S. consumers are showing more resistance to higher prices compared to consumers in Europe. Looking ahead, having the right pack sizes at the right price points, channels, and locations will be even more critical," said Arun Sundaram, an analyst with CFRA Research. The company reported net revenue of $8.98 billion for the quarter ended June 30, topping analysts' average estimate of $8.84 billion, according to data compiled by LSEG. On an adjusted basis, Mondelez earned 73 cents per share for the quarter, compared with analysts' average estimate of 68 cents per share. Shares of the Chicago-based snack maker fell about 3% in after-hours trading after it maintained its annual forecast despite the quarterly results beat. The company reaffirmed its outlook for 2025 organic net revenue growth of about 5%, but continues to expect adjusted profit to decline 10%. https://www.reuters.com/business/retail-consumer/mondelez-beats-second-quarter-estimates-strong-international-demand-2025-07-29/

2025-07-29 22:53

July 29 (Reuters) - Cryptocurrency exchange Kraken is set to raise $500 million in funding at a $15 billion valuation, The Information reported on Tuesday, citing people familiar with the matter. A spokesperson for Kraken declined to comment on the report. Sign up here. Cryptocurrency-focused companies have been attracting increased investor interest as the digital asset class benefits from regulatory clarity and growing institutional adoption. This trend has also prompted several crypto firms, including custody startup BitGo and asset manager Grayscale, to pursue U.S. listings. Kraken has been actively investing capital to expand into various asset classes and grow its user base. In March, Kraken said it would acquire futures trading platform NinjaTrader in a $1.5 billion deal. https://www.reuters.com/business/kraken-seeks-500-million-funding-15-billion-valuation-information-reports-2025-07-29/

2025-07-29 21:54

OTTAWA, July 29 (Reuters) - Australia has lifted a 22-year-old ban on the import of Canadian beef and beef products, the Canadian Food Inspection Agency said on Tuesday, a move that brings relief to farmers but is unlikely to spur major new sales. Australia imposed import restrictions on Canadian beef in 2003, following the discovery of Canada's first domestic case of mad cow disease. It lifted a similar ban on U.S. beef imports last week. Sign up here. Canada's government celebrated the long-awaited resumption of access to the Australian market. "With restored access to Australia, a key market in the Indo-Pacific, we can unlock more opportunities for our producers to deliver the top-quality beef we're known for," said federal Agriculture Minister Heath MacDonald. Analysts are skeptical about how much North American beef can be exported to Australia because the U.S. has a major deficit and is importing beef from Australia, Canada and other suppliers. "U.S. beef is still very highly priced compared to Australian beef," said Resilient Capital analyst Jerry Klassen. "North American beef is really the highest-priced in the world." The Canadian Cattle Association, which represents farmers and feedlots that raise cattle, celebrated the Australian market reopening, saying in a news release it was one of the last remaining countries to have maintained mad cow disease restrictions on Canadian beef. Canada's cattle ranchers were devastated by the 2003 restrictions placed upon Canadian beef exports because much of the country's beef production is exported, especially to the U.S. https://www.reuters.com/markets/commodities/canada-says-australia-has-re-opened-market-access-beef-beef-products-2025-07-29/