2025-07-22 11:39
July 22 (Reuters) - Halliburton (HAL.N) , opens new tab reported about 33% fall in profit for the second quarter on Tuesday, hurt by weak demand for its oilfield services in North America, Saudi Arabia and Kuwait. The company had flagged a second-quarter earnings impact from President Donald Trump's tariffs and lower oilfield activity in North America as producers evaluated drilling and completions at weak oil prices. Sign up here. "Oilfield services market will be softer than I previously expected over the short to medium term," Halliburton CEO Jeff Miller said in a statement. North America quarterly revenue fell 9% to $2.26 billion, while its Middle East/Asia segment was down sequentially due to lower activity across multiple product service lines in Saudi Arabia and Kuwait. Despite last week's total rig increase in North America, Baker Hughes said the total count was still down 42, or 7% below this time last year. Bigger rival SLB (SLB.N) , opens new tab last week reported a hit to quarterly earnings from a slowdown in drilling activity in Saudi Arabia. SLB also warned of a likely decline in global upstream spending in 2025. Halliburton's quarterly revenue fell 5.5% to $5.51 billion from a year earlier, but ahead of Wall Street estimates of $5.41 billion, according to data compiled by LSEG. The company reported a profit of $472 million for the quarter ended June 30, compared with $709 million, a year earlier. On a per share basis, Halliburton posted in-line earnings of 55 cents. https://www.reuters.com/business/energy/halliburton-profit-slumps-weak-north-america-middle-east-drilling-demand-2025-07-22/
2025-07-22 11:38
July 22 (Reuters) - RTX (RTX.N) , opens new tab cut its 2025 profit forecast on Tuesday, as the aerospace and defense giant took a hit from U.S. President Donald Trump's trade war despite strong demand for its engines and aftermarket services. Shares of the company fell 3.8% in premarket trading. Sign up here. Trump's imposition of tariffs on imports of aluminum and steel has shrouded the markets with uncertainty, threatening to add pressure on an already-strained supply chain. "We have not seen any major impact on our demand signals," RTX chief financial officer Neil Mitchell said in an interview. "But ultimately over the long-term, we do expect to see some pressure on pricing and other costs in businesses as we look to recoup this headwind." RTX had warned of an $850 million hit from the trade war, though it was based on the assumption that steel and aluminum tariffs remain at 25%, China tariffs remain at 145% and global reciprocal tariffs remain at 10%. Since then, levies on steel and aluminum have doubled to 50% and Trump has unveiled new tariffs on most trading partners, but those on China have significantly reduced. RTX now expects adjusted profit between $5.80 and $5.95 per share for 2025, down from its prior forecast of $6.00 and $6.15 per share. Maintenance and repair service providers for commercial aircraft have banked on a shortage of new jets, as production delays force airlines to operate an older, cost-intensive fleet. Demand in its defense business has remained strong in the face of growing geopolitical tensions around the world. RTX's Patriot air defense systems have been widely used on the battlefield in Ukraine to counter missile threats from Russia. Raytheon, RTX's defense unit, reported sales that rose 8% to $7 billion in the second quarter. The company raised its adjusted 2025 sales forecast to between $84.75 and $85.5 billion, from $83 billion to $84 billion. RTX's Pratt and Whitney unit, which produces engines for Airbus' A320neo jets and competes with CFM International, saw sales rise 12%. Pratt has struggled with output problems in recent years and is in the middle of an inspection drive for potentially flawed components in its geared turbofan engines that have grounded hundreds of planes in recent months. The Arlington, Virginia-based company reported a 9% rise in total revenue to $21.6 billion, compared with analysts' average estimate of $20.63 billion, according to data compiled by LSEG. Its adjusted per-share profit stood at $1.56 in the quarter. Analysts expected $1.44. https://www.reuters.com/business/aerospace-defense/rtx-cuts-2025-profit-forecast-tariff-costs-weigh-2025-07-22/
2025-07-22 11:36
BAMAKO, July 22 (Reuters) - A court in Mali on Tuesday rejected an appeal by Barrick Mining (ABX.TO) , opens new tab to release four employees arrested last November, judge Samba Sarr said, the latest development in a long-running standoff between the Canadian firm and the Mali government over taxes and ownership of mining operations in the country. The appeal by the company, which has dismissed the allegations against the four local employees as baseless, was determined by the judge to be "unfounded", said Alifa Habib Kone, a lawyer for Barrick. Sign up here. The employees face charges including money laundering and violation of other regulations, Kone said. Barrick has said it refutes the charges against its employees. Barrick and Mali's military-run government have been in negotiations since 2023 over the implementation of a new mining code that raises taxes and gives the government a greater share in the country's gold mines. Barrick owns 80% of the Loulo-Gounkoto mining complex in Mali and the government owns the rest. Operations have been suspended since mid-January after the government blocked Barrick's gold exports and seized three metric tons of its stocks. Malian authorities arrested the four employees in late November and they have been in pre-trial detention in Bamako, according to Barrick's website. Mali also issued an arrest warrant last December for Barrick CEO Mark Bristow who is based in Toronto. He is accused of money laundering and violating financial regulations, according to the warrant document. Governments in Mali, Burkina Faso and Niger - all led by juntas - are all seeking to renegotiate new terms with gold miners to gain a bigger share of mining revenue at a time when gold prices have soared. Mali represents 14% of Barrick's gold output and the company generated $949 million in revenue from its operations there in the first nine months last year. https://www.reuters.com/world/africa/mali-court-rejects-appeal-release-four-barrick-employees-judge-says-2025-07-22/
2025-07-22 11:36
EU explores broader counter-measures as US tariff deal prospects dim US not rushing trade deals ahead of August deadline, Bessent says Russia's Nornickel lowers 2025 palladium output forecast July 22 (Reuters) - Gold eased on Tuesday as investors booked profits after prices scaled a five-week high, while market participants focused on trade talks ahead of U.S. President Donald Trump's August 1 deadline. Spot gold fell 0.2% to $3,388.13 per ounce by 1120 GMT. Earlier in the day, bullion hit its highest since June 17. Sign up here. U.S. gold futures were down 0.3% at $3,397.80. While prices were lower amid profit-booking, they remained close to the five-week high due to uncertainty ahead of Trump's August 1 tariff deadline, said Jigar Trivedi, a senior commodity analyst at Reliance Securities. "Gold is likely to stay bullish. A strong resistance is seen near $3,420. On the flip side, $3,350 is a support," he said. The U.S. dollar index (.DXY) , opens new tab steadied against its rivals. A stronger dollar makes greenback-priced gold more expensive for other currency holders. European Union diplomats said the bloc was exploring broader counter-measures against the United States as prospects for a trade agreement with Washington diminished. Trump has threatened 30% tariffs on European imports if no deal is reached before the August 1 deadline. U.S. Treasury Secretary Scott Bessent said the administration prioritised the quality of trade deals over timing. Focus is also on the U.S. Federal Reserve's monetary policy meeting scheduled for next week, where the central bank is expected to hold interest rates steady for now and potentially begin cuts in October. Gold tends to perform well in a low-interest-rate environment and during times of geopolitical and economic uncertainty. Spot silver lost 0.2% to $38.86 per ounce, platinum added 0.2% to $1,440.47 and palladium declined 0.9% to $1,253.65. Russia's Nornickel, the leading global producer of palladium, lowered its palladium output forecast, now expecting between 2.677 and 2.729 million ounces compared with the earlier estimate of 2.704-2.756 million ounces. https://www.reuters.com/world/china/gold-retreats-five-week-high-investors-book-profits-2025-07-22/
2025-07-22 11:32
Currencies trade in tight range Yen holds on to gains after Japan's upper house election result Investors await progress in more trade talks SINGAPORE/LONDON, July 22 (Reuters) - The dollar edged up on Tuesday, but activity across the currency market was subdued, as investors awaited any signs of progress in talks ahead of an August 1 deadline that could bring steep tariffs for U.S. trading partners that fail to strike deals. The yen mostly held on to gains from the previous session following results from a weekend upper house election in Japan that proved no worse than what had already been priced in. Focus was now on how quickly Tokyo can strike a trade deal with Washington and on Prime Minister Shigeru Ishiba's future at the helm. Sign up here. With little over a week to go before August 1, U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than their timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said President Donald Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. "Nothing that happens on August 1 is necessarily permanent, so long as the U.S. administration remains willing to talk, as was indicated in Trump's letters from two weeks ago," said Thierry Wizman, global FX and rates strategist at Macquarie Group. The euro held steady at $1.1702. The European Central Bank is also in the mix this week, although it is not expected to adjust euro zone interest rates. A deal between the European Union, which could face 30% tariffs from August 1, and the U.S. remains elusive. EU diplomats said on Monday they were exploring a broader set of possible counter-measures given fading prospects for an agreement. "The Trump administration has shown little tolerance for retaliatory measures, and there is a risk this could spiral (even if temporarily) into a tit-for-tat tariff escalation. The euro’s ability to maintain preference over the dollar amid tariff tensions will depend on the extent of any escalation and whether the EU emerges as a relative loser while other countries secure significant deals with the U.S.," ING strategist Francesco Pesole said. Separately, the ECB said in a survey on Tuesday that loan demand from euro zone companies improved last quarter and is expected to pick up in the current quarter, in spite of the threat of tariffs and higher geopolitical tensions. Against a basket of currencies, the dollar was broadly unchanged at 97.829, having fallen 0.6% on Monday. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. "Our base case remains that solid U.S. data and a tariff-driven rebound in inflation will keep the FOMC on hold into 2026, and that the resulting shift in interest rate differentials will drive a continued rebound in the dollar in the next few months," said Jonas Goltermann, deputy chief markets economist at Capital Economics. "But that view is clearly at the mercy of the White House's whims." The yen remained in focus on Tuesday, trading a touch weaker on the day at 147.485, having gained 1% on Monday following the weekend election and a public holiday. "The initial relief for the yen that the ruling coalition did not lose even more seats and that Prime Minister Ishiba plans to hang on to power is likely to prove short-lived," said MUFG senior currency analyst Lee Hardman. "The pick-up in political uncertainty in Japan could complicate reaching a timely trade deal with the U.S., posing downside risks for Japan's economy and the yen." https://www.reuters.com/world/africa/dollar-dithers-investors-await-more-tariff-clarity-2025-07-22/
2025-07-22 11:25
Lindt's half-year operating profit falls 11% Plans price hikes for 2026 despite volume impact Raises organic growth forecast aided by strong Europe Shares fall 7%, Baader analysts flag weak North America July 22 (Reuters) - Lindt & Sprüngli (LISN.S) , opens new tab raised its organic growth forecast on Tuesday, aided by strong sales in Europe, but its shares tumbled as steep hikes in chocolate prices struck half-year volumes. Despite this, CEO Adalbert Lechner said the maker of Lindor chocolate balls planned to raise prices again next year, albeit not as much as in 2025. Sign up here. Shoppers continued to bear the brunt of high cocoa prices in the first half of the year as Lindt raised prices of its products by 15.8%. Its organic sales grew 11.2% in the period. "Organic growth was exceptionally strong in Europe but relatively weak in North America. Assuming similar ... cocoa-price driven pricing in all regions, one wonders on the volume development in North America," analysts from Baader Helvea said in a note. While Europe recorded organic growth of 17.7% in the first half, a weak consumer sentiment in North America weighed on sales there, resulting in just 3.6% growth. The premium chocolate maker's shares fell around 7% by midday local time, on track for their biggest single-day drop since March 2020. Lindt expects market growth in North America to accelerate in the second half of 2025, boosted by stronger orders, some of which it has already booked, Lechner told analysts in a conference call. However, sales growth in Europe will likely normalize compared to the past six months, he added. The company now expects organic growth of 9-11% this year, after previously guiding for 7-9%. Lower volumes and high cocoa costs also weighed on its earnings, with half-year operating profit falling 11% to 259.2 million Swiss francs ($325.2 million), below market expectations based on LSEG data. London cocoa futures (.LCCc2) , opens new tab have nearly halved after reaching record highs in 2024, but remain clearly above the historical average. Lindt continues to evaluate its global sourcing strategy ahead of the expected imposition of new U.S. tariffs on August 1, a company spokesperson told Reuters. It had said in March it would supply chocolate made in Europe to Canada to avoid reciprocal tariffs on U.S. goods, but later said it had not adapted the strategy yet. Lindt produces 95% of the chocolates it sells in the U.S. at its five factories in the country, which also supply less than half of the products sold in Canada. ($1 = 0.7970 Swiss francs) https://www.reuters.com/business/lindts-price-hikes-hit-volumes-even-european-sales-boost-outlook-2025-07-22/
