2025-07-24 06:30

MADRID, July 24 (Reuters) - Spain's Repsol (REP.MC) , opens new tab said on Thursday its second-quarter adjusted profit beat expectations despite a 175 million euro ($206 million) hit from a massive blackout in April and other smaller power-supply issues. The April 28 blackout that caused traffic chaos in cities and left thousands stranded on trains and in elevators across the Iberian peninsula also cut power supply to Repsol's chemical plants and refineries. Sign up here. Some of its facilities also suffered from external power supply issues on April 22 and June 16. Since it can take one or two weeks for such plants to be fully operational after these events, the utilisation ratios fell significantly in the quarter. "All businesses, both quarterly and half-yearly, have improved their results, except for Industrial, which was impacted by the general blackout on April 28 in Spain," Chief Executive Josu Jon Imaz said in a statement. The company said it was already considering potential legal action once responsibilities related to the outage are officially determined. Spain's antitrust and energy watchdog is carrying out a probe into the blackout but hasn't said when it will release its findings. Repsol booked a quarterly adjusted profit of 702 million euros, compared with 859 million euros a year earlier and a company-provided average forecast of 500 million euros. Net profit fell to 237 million euros from 657 million euros a year earlier. The Spanish firm also said that it is selling its 40% stake in U.S. renewables developer Hecate. ($1 = 0.8494 euros) https://www.reuters.com/business/energy/repsol-beats-expectations-second-quarter-despite-blackout-hit-2025-07-24/

2025-07-24 06:29

Alphabet, SK Hynix, Infosys offer upbeat guidance Nestle and Roche report better-than-expected earnings Rosy forecasts come against backdrop of tariff uncertainty Governments scramble for tariff deals ahead of August 1 deadline Hyundai Motor expects tariffs to take bigger toll in Q3 July 24 (Reuters) - Some of the world's top tech firms, including U.S. search giant Alphabet, South Korean chipmaker SK Hynix and Indian IT services provider Infosys, have provided upbeat guidance in their latest earnings reports, shrugging off an uncertain U.S. trade policy. Corporate operations have been overshadowed by erratic U.S. trade action that has upended supply chains and left firms to navigate fluid tariffs on top of broader economic uncertainties such as regulatory change and currency fluctuation. Sign up here. But tech titans Alphabet (GOOGL.O) , opens new tab, SK Hynix (000660.KS) , opens new tab and Infosys (INFY.NS) , opens new tab - which all reported earnings that beat market forecasts - predicted brighter days to come, with Alphabet and SK Hynix both flagging plans to boost spending. Nvidia (NVDA.O) , opens new tab supplier SK Hynix booked record quarterly profit, boosted by strong demand for artificial intelligence chips and customers stockpiling ahead of potential U.S. tariffs. Indian IT services provider Infosys raised the floor of its annual revenue forecast range to 1% to 3%, from flat to 3%, matching analyst expectations. In Europe, Swiss drugmaker Roche (ROG.S) , opens new tab reported a better-than-expected first-half operating profit on Thursday and said it is in close contact with the U.S. government on tariffs. It said it has ramped up inventories in the United States in case tariffs do come into effect to avoid any initial impact. "We hope that the U.S. government then also sees with all the investments that we and other companies are making, that the companies are intending to produce the medicines that are needed in the U.S. for the U.S. also in locations in the U.S.," said CEO Thomas Schinecker. Nestle (NESN.S) , opens new tab, the world's biggest packaged food company, also on Thursday posted better-than-expected first-half organic sales growth and maintained its 2025 outlook. TURBULENCE The upbeat earnings and guidance amounted to a bright spot in a turbulent second-quarter earnings season that has seen businesses as varied as chipmakers and steelmakers report downbeat results. Companies have reported over July 16-22 a combined full-year loss of as much as $7.8 billion, with the automotive, aerospace and pharmaceutical sectors being hurt most by tariffs. South Korea's Hyundai Motor (005380.KS) , opens new tab on Thursday posted a 16% decline in second-quarter operating profit as U.S. tariffs on vehicles and parts started to weigh on its bottom line. The automaker said U.S. tariffs cost it 828 billion won ($606.5 million) in the second quarter and that it expects tariffs to have a bigger impact in the current quarter. General Motors (GM.N) , opens new tab said tariffs knocked $1.1 billion from second-quarter earnings. On Wednesday, Tesla (TSLA.O) , opens new tab Chief Executive Elon Musk said U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters", as his firm reported its worst quarterly sales decline in over a decade. TRADE DEALS News that the U.S. had struck a deal with Japan to lower new tariffs on auto imports and spare it punishing levies on other goods lifted stock markets on Wednesday. It stirred hope for a similar deal with the European Union ahead of August 1, when the U.S. said new tariffs will go into effect. The European Union is moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said. One surprise on Thursday was South Korea's finance ministry saying tariff negotiations had been postponed due to a scheduling conflict for U.S. Treasury Secretary Scott Bessent. The announcement cast doubt about whether South Korea would be able to avert U.S. import duties that could hit some of its major exporting industries. All eyes are on Washington as governments scramble to close trade deals ahead of next week's deadline that the White House has already pushed back under pressure from markets and intense lobbying by industry. While the Japan deal has eased investor worry, the threat of higher tariffs on other large economies remains, including the European Union, Canada and Brazil. An EU-China summit on Thursday will test European resolve and unity as the bloc faces trade pressure from both China as well as the United States, while U.S. Treasury Secretary Scott Bessent meets Chinese officials in Sweden next week. ($1 = 1,365.1800 won) https://www.reuters.com/business/autos-transportation/bright-spots-emerge-corporate-earnings-tariff-uncertainty-lingers-2025-07-24/

2025-07-24 06:13

NICOSIA, July 24 (Reuters) - Two people were killed and hundreds evacuated as a massive wildfire tore through southern Cyprus, destroying homes and threatening communities amid an intense heatwave. At least 100 square kilometres (39 square miles) was razed to the ground in a wine-producing region north of the city of Limassol after the blaze broke out around midday on Wednesday, with several fronts still active on Thursday morning. Sign up here. Two people were found dead in a burned-out vehicle, trapped by the fire. At least 10 people were injured, two of them seriously, police said. As dawn broke, a red hue hung over Limassol, a sprawling coastal city where development in recent years has spilled over to its surrounding mountains. Firefighting aircraft were redeployed at first light after darkness forced a pause. Authorities said it was too early to give a precise account of damage, or what started the fire. "We are talking about very strong winds, with gusts, which were constantly interchanging," fire brigade spokesperson Andreas Kettis said. Temperatures on the island peaked at 43 degrees Celsius (109.4 Fahrenheit) on Wednesday, triggering an amber weather alert. A new amber warning was in place on Thursday, with highs forecast to hit 44 degrees Celsius - the hottest of the year so far. Cyprus has requested help through the European Union's civil protection mechanism, with Spain expected to send two aircraft on Thursday, government spokesperson Konstantinos Letymbiotis said. Jordan has also pledged assistance. Cyprus has struggled with a protracted drought, pushing scarce water resources to critically low levels. The affected area sits just north of Cyprus's Kouris reservoir, the island's largest. It was at just 15.5% of its capacity on Wednesday. https://www.reuters.com/business/environment/two-dead-homes-burn-massive-wildfire-cyprus-2025-07-24/

2025-07-24 06:09

July 24 (Reuters) - Canadian miner Teck Resources (TECKb.TO) , opens new tab beat second-quarter profit estimates on Thursday, helped by improved profitability at its Trail operations. Teck's Trail operations, located in British Columbia, is one of the world's largest fully integrated zinc and lead smelting and refining complexes, according to the company website. Sign up here. The company reported an adjusted profit of 38 Canadian cents per share for the quarter ended June 30, compared with analysts' average estimate of 27 Canadian cents per share, according to LSEG data. Teck said London Metal Exchange (LME) copper prices declined by 2% in the June quarter compared with a year earlier and averaged $4.32 per pound. The company produced 109,100 metric tons of copper in the reported quarter, and cut its full-year copper production guidance to 470,000 tons to 525,000 tons. Teck expects to produce 525,000 tons to 575,000 tons of zinc in the current year. The results come against the backdrop of U.S. President Donald Trump's threat to impose a 50% tariff on copper imports, starting August 1. Teck exports the vast majority of its copper to Asia and Europe. Trump's proposed 50% tariff on U.S. copper imports is unlikely to directly impact Teck, given its minimal exposure to the U.S. market. However, the tariff could tighten global supply and push prices higher, indirectly boosting Teck's revenue and margins. https://www.reuters.com/world/americas/canadas-teck-resources-beats-profit-estimates-second-quarter-2025-07-24/

2025-07-24 06:08

MOSCOW, July 24 (Reuters) - The Russian rouble's 45% rise against the U.S. dollar since the start of the year has made it one of the world's best performing currencies - but the sharp appreciation is proving to be a double-edged sword for the heavily sanctioned Russian economy. The strength of the rouble means that dollar-denominated energy revenues generate fewer roubles for the Russian budget. Russian businesses also argue it is making exports more expensive to buyers in dollars and other currencies. Sign up here. But President Vladimir Putin's central bank governor, Elvira Nabiullina, argues that a softer currency would be a sign of economic vulnerability. Nabiullina, who on Friday announces the latest interest rate decision, says the exchange rate is not just there to please exporters, stressing that the strong rouble is a product of the tight monetary policy needed to fight stubbornly high inflation. The following explains some of the factors behind the rouble's rise and its implications. WHY HAS THE ROUBLE RISEN SO MUCH AGAINST THE DOLLAR? The rouble has strengthened about 45% against the dollar this year. The rise is driven primarily by the central bank’s tight monetary policy and optimism after U.S.-Russia talks in February raised hopes for a peace settlement in Ukraine. Interest rates on rouble deposits have also soared above 20%, making the currency attractive to savers and as a speculative trade for its yield. At the same time, high borrowing costs have slowed imports, reducing demand for foreign currency. The weakness of the U.S. currency, whose index lost 6.6% since President Donald Trump's "Liberation Day" tariff announcement on April 2, has also helped the rouble. Although the central bank says there is a freely floating exchange rate, it has been selling the Chinese yuan, its only major intervention tool, to support the rouble. When the rouble strengthens against the yuan, its rate against the dollar strengthens as well to avoid arbitrage. The stronger rouble helps the regulator fight inflation by making imports cheaper. VTB’s First Deputy CEO Dmitry Pyanov alleged recently this is part of a deliberate strategy. The rouble is also supported by currency controls introduced after the start of the war in Ukraine to prevent capital flight but recently exporters have been repatriating more foreign currency revenues than they are obliged to. HOW IS THE ROUBLE TRADED? Since sanctions hit the Moscow Stock Exchange (MOEX) in 2024, the rouble trades over-the-counter against the dollar and euro. Banks report their quotes to the central bank, which uses them to set the official rate. This market is opaque since only the central bank sees full transaction data. Some smaller, mostly non-Russian banks report quotes to market data providers. The rouble trades against the yuan on MOEX. Dollar/rouble futures, which also trade on MOEX, provide some market guidance on exchange rate. There is no black market rate for foreign currency in Russia. The rouble is no longer a major internationally traded currency and many Western companies and banks have left Russia. But Russia remains a top oil and agriculture exporter and the world’s 11th largest economy. Russia's push to shift trade into non-Western currencies, especially the yuan, may have implications for the global dominance of the U.S. dollar in the long-term. Major developing economies like China and India are watching closely. WHY IS ROUBLE-YUAN THE BIGGEST PAIR? The yuan has overtaken the dollar as Russia’s most traded foreign currency. In 2024, 95% of Russia’s trade with China was settled in yuan and roubles. Yuan-rouble trading volumes on the Moscow Exchange reached 33 trillion roubles ($420 billion) in 2024. Russia’s total trade with China hit a record $245 billion. The rouble is up against the yuan by 25% this year. Energy firms repatriate yuan earnings, while importers use yuan to buy goods. Most analysts now focus on the rouble/yuan rate, not the dollar. WHAT DOES THE RUSSIAN GOVERNMENT SAY ABOUT THE ROUBLE? The government wants a weaker rouble to boost budget revenues. The 2025 budget assumes an average rate of 94.3 roubles per dollar, but the current rate is around 78. If the rouble stays strong, VTB analysts estimate the budget could lose 2.4% of its revenues this year. Exporters, from oil to metals to agriculture, are also hurting. A stronger rouble makes their revenues shrink. Many officials and business leaders say they would prefer a rate of 100 to the dollar. Putin has not spoken publicly about the rouble's strength in recent months. HOW DO ORDINARY RUSSIANS VALUE THE ROUBLE? The public still sees the dollar as the benchmark, even though yuan use is rising. Cash dollars and euros remain available in bank branches, though there are now far fewer exchange offices than in previous decades. Sanctions have made foreign travel and dollar and euro international transfers harder, reducing demand for cash dollars. In the first quarter of early 2025, Russians bought about 200 billion roubles’ worth of foreign currency, unchanged from a year earlier. High rouble interest rates have made foreign currency savings less attractive. WHAT LIES AHEAD FOR THE ROUBLE? Analysts have warned for months that the rouble is overvalued, but the currency has defied their forecasts so far. The central bank is widely expected to cut interest rates at its upcoming meeting. If it does, market rates will fall as well, prompting savers to pull money from rouble deposits. That could weaken the currency. A bigger test looms in early September, when a 50-day deadline set by U.S. President Donald Trump for Russia to show progress toward peace in Ukraine expires. If new U.S. sanctions targeting buyers of Russian oil follow, the rouble could come under renewed pressure. The last time the rouble weakened significantly was in November 2024, after Washington sanctioned Gazprombank, which had handled oil and gas payments. A source close to the central bank pointed to Reuters that when the regulator cut the key rate from 17% to 11% between February and July 2015, the rouble took several months to weaken gradually. This is the regulator's expectation this time. https://www.reuters.com/business/finance/why-russian-rouble-is-outperforming-what-it-means-2025-07-24/

2025-07-24 06:05

Asian shares rally on earnings optimism, trade deals Investors await Trump's visit to Federal Reserve ECB set to stand pat on rates U.S. and EU nearing trade deal with 15% tariffs on imports SINGAPORE, July 24 (Reuters) - Stocks in Asia extended gains on Thursday as optimism on Wall Street over trade deals and corporate earnings shored up investor confidence across the region, while the euro was steady ahead of European Central Bank policy meeting. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab was up 0.4%, hitting a near four-year peak after U.S. stocks ended the previous session at a record high. Sign up here. The bullish mood is set to continue in Europe. The pan-European futures were up 1.17%, German DAX futures were up 1.15% and FTSE futures were up 0.39%. Tokyo's broad Topix gauge of shares (.TOPX) , opens new tab and Singapore's benchmark index (.STI) , opens new tab both crossed above previous highs, while the Nikkei 225 (.N225) , opens new tab extended Wednesday's gains to within reach of its record high hit last year. Traders are speculating that the U.S. may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week. "There's nothing like a trade deal with a big trading nation - and deals with the Philippines and Indonesia, and the prospect of a deal in the offing for Europe - for markets to throw away all their caution," NAB's senior market strategist Gavin Friend said on a podcast. "Yields are higher and everything seems rosy at the moment." Markets were relatively subdued after the White House said that U.S. President Donald Trump will visit the Federal Reserve on Thursday, a surprise move that escalates tension between the administration and Chair Jerome Powell. The Fed is expected to hold rates steady next week. "The purpose of Trump’s visit to the Fed is unclear but it may be a move to pressure Powell and the Fed to cut rates and it comes just a few days before the next Fed policy meeting at the end of this month," said Vasu Menon, managing director of investment strategy at OCBC. The yield on benchmark 10-year Treasury notes was steady at 4.3937%. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 3.8908%. The dollar dropped 0.31% against the yen to 146.03 . It is still some distance from its low this year of 139.89 in April. The euro last fetched $1.1774, after hitting a more than two-week high earlier in the session. The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 97.156. The gauge has dropped over 10% this year as investors scurry for alternatives in the wake of Trump's erratic trade policies. Second-quarter earnings are well underway, with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data. In Asia, South Korean chipmaker SK Hynix (000660.KS) , opens new tab and India's Infosys (INFY.NS) , opens new tab provided rosy outlooks in their latest earnings reports, shrugging off U.S. trade uncertainty. Investors will watch out for the policy decision from the ECB later on Thursday as trade talks between Washington and Brussels continue. The central bank is expected to keep interest rates on hold, pausing after seven straight cuts. Investors generally expect one more ECB rate cut by the end of the year, most likely in December. Trump has threatened to impose a 30% duty on EU goods but two diplomats said on Wednesday the EU and the U.S. were heading towards a deal that would result in a broad tariff of 15% applying to EU goods. Oil prices rose on speculation the trade deal would support global growth and after a sharper-than-expected decline in U.S. crude inventories. U.S. crude ticked up 0.52% to $65.59 a barrel. Gold was slightly lower as easing trade tensions dented demand for safe-haven assets, overshadowing support from a weaker dollar. Spot gold was traded at $3,382.79 per ounce. https://www.reuters.com/world/china/global-markets-wrapup-2-2025-07-24/