2025-10-23 21:53
Investment aims to counter China's mineral supply restrictions Orion Critical Mineral Consortium targets $5 billion growth Focus on production-ready projects to supply U.S. and allies Oct 23 (Reuters) - The U.S. and Abu Dhabi governments will invest $1.8 billion into mining and refining projects across the globe with private equity fund Orion Resource Partners to bolster Western access to lithium, rare earths and other critical minerals. The investment plan, announced on Thursday, comes as market leader China crimps access to critical minerals even as demand jumps globally across the economy, forcing manufacturers and others to jostle for fresh supply. Sign up here. The U.S. International Development Finance Corp (DFC), which is controlled by Washington, Orion, and the Abu Dhabi sovereign wealth fund ADQ, have contributed $1.8 billion - $600 million each - to the newly formed Orion Critical Mineral Consortium. The consortium, which hopes to grow to $5 billion with funds from others across the globe, aims to quickly get minerals supply to market and plans to avoid exploration-stage projects. "What we're focused on is projects that are in production or can be put into production in the very near term to get material back to the U.S. and allied nations," said Frank Fannon, the consortium's managing partner who served as U.S. assistant secretary of state for energy resources during President Donald Trump's first term. For other potential investors, Fannon said Orion would seek those with a "shared value and shared understanding" of the need to boost Western access to critical minerals. Orion's announcement comes two days after private equity firm Appian Capital Advisory and the International Finance Corporation launched their own $1 billion fund to invest in minerals projects in Africa and Latin America. Orion plans to "go where the rocks are" and invest in mines across the globe as well as the processing facilities needed to turn metals into the building blocks for batteries and other equipment, Fannon said. "We are absolutely committed to funding the supply chain to the extent necessary to secure end-stage product for customers and consumers," said Oskar Lewnowski, Orion's founder and CEO. Orion will focus its investments on minerals considered critical by the U.S., Canada, the European Union and Australia, as well as copper and uranium, both executives said. The DFC, which also holds a stake in mining firm TechMet, will be involved in investment decisions and that involvement should help reduce any project's geopolitical risk, the executives said. "The (U.S.) government certainly brings a lot to bear, particularly in emerging market contexts, and that makes investments that much more tenable for us," Lewnowski said. When asked if Orion was interested in Ukraine's mining sector, Lewnowski said: "Ukraine has some very interesting rocks. And let's leave it at that." The Trump administration has taken equity stakes , opens new tab directly in MP Materials (MP.N) , opens new tab, Lithium Americas (LAC.TO) , opens new tab, and others, underscoring Washington's increasing willingness to directly involve itself in the private mining sector. Critical mineral companies have also boosted U.S. lobbying efforts, hoping to share in the ambitious investments that Trump has pledged to firms deemed essential to national security. https://www.reuters.com/world/middle-east/us-abu-dhabi-governments-invest-18-billion-with-orion-into-critical-minerals-2025-10-23/
2025-10-23 21:41
Oct 23 (Reuters) - Oilfield services provider Baker Hughes (BKR.O) , opens new tab on Thursday beat Wall Street estimates for third-quarter profit, driven by strength in its industrial and energy technology (IET) business. As oilfield services firms navigate a volatile market, resilient areas like LNG infrastructure, power grid upgrades, and growing electricity demand from data centers are helping support growth. Sign up here. Baker has been also leaning on its industrial and energy technology (IET) division to strengthen its footprint in the natural gas and LNG market, a strategy expected to underpin revenue growth and positioning in the energy transition. The company said IET backlog rose 3% sequentially to a record $32.1 billion, while quarterly orders surged 44% year-on-year to $4.14 billion, reflecting growing demand for LNG and energy transition projects. Baker Hughes expects IET revenue between $3.2 billion and $3.7 billion in the current quarter, and $12.8 billion to $13.3 billion for the full year, with annual orders seen at $13.5 billion to $14.5 billion. "While oilfield services & equipment segment margins softened, reflecting the broader macro backdrop, IET delivered another quarter of strong performance, driving consolidated adjusted EBITDA margins higher year-over-year," said Baker Hughes CEO Lorenzo Simonelli. Oilfield service providers are contending with subdued demand for traditional drilling and completion work as producers adopt more efficient extraction technologies and rising supplies curb the need for new wells. Operators also remain cautious amid volatile oil prices, OPEC+ spare capacity, and trade uncertainties, particularly in North America. The Houston-based company reported adjusted earnings of 68 cents per share for the three months ended September 30, topping analysts' average estimate of 62 cents, according to LSEG data. Quarterly revenue of $7.01 billion also beat expectations of $6.83 billion. Rivals SLB (SLB.N) , opens new tab and Halliburton (HAL.N) , opens new tab also topped third-quarter profit estimates. https://www.reuters.com/business/energy/baker-hughes-beats-third-quarter-profit-estimates-2025-10-23/
2025-10-23 21:05
ORLANDO, Florida, Oct 23 (Reuters) - U.S. and world stocks rose on Thursday, boosted by a cooling in U.S.-China trade tensions, while oil prices rocketed 5% after Washington sanctioned two Russian oil giants, raising concern about global supply. More on that below. In my column today, I look at whether the 'Magnificent 7' may be about to relinquish their total dominance on Wall Street, even if just a little. The current earnings season and earnings outlook for 2026 suggest it might. Sign up here. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points * China's 5-year plan China's Communist Party rulers just concluded their four-day closed-door 'plenum' meeting to lay out their economic plan for the next five years. It looks like the focus will be on building a modern industrial system and ensuring technological self-reliance, as the country's rivalry with the U.S.n intensifies. This is unsurprising, given that China and the U.S. are essentially in a technological arms race, at the center of which are the rare earths, microchips, and computing power and know-how that will power their respective economies and militaries. * US-China-Russia dance heats up The U.S. has imposed sanctions on top Russian oil companies, citing Vladimir Putin's "refusal to end this senseless war" with Ukraine. It was the first such move by President Donald Trump in his second term. One might ask why he hadn't done so before. Sources then told Reuters that Chinese state oil majors have suspended purchases of Russian oil due to the sanctions. China has been the biggest buyer of Russian crude, so this is an interesting twist coming, as it does, as U.S.-China trade tensions are boiling up ahead of next week's Trump-Xi meeting. * Casting an eye on U.S. CPI U.S. consumer price inflation data for September will be published on Friday, a rare release of official U.S. economic data with the government shutdown - now the second-longest on record - about to enter its 24th day. So it's a big moment. Or is it? Barring a shock number significantly above forecast - which is 3.1% for annual core and headline - it's hard to see fully priced market expectations of a 25 bps rate cut next week and again in December moving much. One suspects Fed thinking is the same. Is Wall Street's leadership finally about to broaden? Could U.S. stock market leadership finally broaden beyond the U.S. tech megacaps? Early signs from the third quarter earnings season – particularly 2026 outlooks – suggest there's a good chance. The 'Magnificent Seven' – Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – have long dominated the S&P 500, in terms of profits, market cap and price momentum. But that grip may be loosening, at least a little. Tajinder Dhillon, senior research analyst at LSEG Data & Analytics, estimates Mag 7 earnings growth for the third quarter will be 16.6%, still comfortably outstripping the aggregate index's expected 9.2%. But that spread of 7.4 percentage points is the narrowest since the fourth quarter of 2022, nearly three years ago. In a similar vein, Jeff Schulze, head of strategy at ClearBridge Investments, estimates that the earnings growth gap between the Mag 7 and the S&P 493 in this calendar year will shrink to 14 percentage points from 34 percentage points last year, before contracting even further next year to less than five percentage points. Indeed, Schulze reckons the S&P 1000 index of small- and medium-cap stocks will post higher earnings growth than the Mag 7 next year, marking a remarkable turnaround from recent years. "Should the Mag 7's growth advantage dissipate, market leadership could rotate towards the less expensively priced laggards," Schulze says, adding that third quarter results so far have been "encouraging" in this regard. Schulze argues that incoming monetary and fiscal stimulus will benefit a broader mix of companies next year, with cyclical sectors like industrials and consumer discretionary particularly well positioned. WATCH THE LAGGARDS BlackRock analysts are also calling for the market's laggards to start closing the gap with the megacap leaders, citing two other factors that could underpin broader earnings growth. The first is the resilience of the U.S. economy. Many economists see GDP growth increasing to 2% or higher next year. While BlackRock is only penciling in GDP growth of 1.5% this year, that is still far from the recession many were calling for a few quarters ago. Second, there's AI-related spending. True, this may be a symptom of the AI optimism that has helped the Mag 7 sustain their dominance. But all that capex should also benefit the construction firms building the data centers, the energy companies powering them, and the industrial, equipment-making and materials firms supplying them. According to LSEG's Dhillon, materials and industrials should be the second- and third-top sectors, respectively, for earnings growth in 2026, just behind technology. LSEG estimates point to 20% and 18% growth for these two sectors, respectively, behind tech's 22% but comfortably above the predicted 14% for the aggregate S&P 500. NETFLIX, TESLA WARNING SIGNS? Perhaps a market re-balancing may already be underway. The Dow Jones Industrial Average has outperformed the Nasdaq and S&P 500 over the past month. Granted, that's a very short timeframe, and the Dow's advantage is only one percentage point. But the shift needs to start somewhere, and there's certainly plenty of room for reallocation. The Nasdaq has doubled the Dow's 20% gains in the last six months. If U.S. economic growth remains healthy and earnings roll in as analysts expect, there's every chance the performance gap will be narrowed. However, there are plenty of reasons to doubt this rosy scenario, namely the creaking labor market, the looming impact of tariffs, and the U.S.-China trade war. And then there's passive investing, momentum trading and the widespread 'buy-the-dip' mentality that could help maintain the Mag 7's advantage regardless of what's happening on the ground. But the market has been very top-heavy for a very long time. If other Big Tech firms' results are as disappointing as those just released by Tesla and Netflix, the long-awaited broadening might finally arrive. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/world/china/global-markets-trading-day-graphic-2025-10-23/
2025-10-23 20:46
TSX ends up 0.6%, at 30,186.28 Energy gains 2% as oil settles 5.6% higher Tech rises 2.1% as Shopify advances Retail sales grow by 1% in August TORONTO, Oct 23 (Reuters) - Canada's commodity-linked main stock index rose on Thursday as a sharp increase in the price of oil boosted energy shares and investors shrugged off mixed domestic retail sales data. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 203.30 points, or 0.6%, at 30,186.28, extending its recovery from an 11-day low on Tuesday. Sign up here. It was helped by gains for the heavily weighted financial, energy and materials sectors, as well as for Shopify (SHOP.TO) , opens new tab. The e-commerce company has the largest market capitalization of any company on the Toronto market. "The three largest sectors and the largest company are all in positive territory which has supported the TSX's move higher," said Kevin Headland, co-chief investment strategist at Manulife Investments. Canadian retail sales grew by 1% in August, matching expectations, as consumers spent more on new cars, at supermarkets and on clothing. An advance estimate for September was less upbeat, showing a decline of 0.7%. "Retail sales came out positive but overall the (economic) landscape is not great," Headland said. Investors are betting that a sluggish economy will prompt the Bank of Canada to ease interest rates further at a policy decision next Wednesday. Last month, the central bank lowered its benchmark rate to a three-year low of 2.50%. The energy sector (.SPTTEN) , opens new tab advanced 2%, with shares of Cenovus Energy (CVE.TO) , opens new tab adding 3.1%. The price of oil settled 5.6% higher at $61.79 a barrel after the U.S. imposed sanctions on major Russian suppliers. Renewed political risk bolstered safe-haven demand for gold . The precious metal was up 0.6%, while the materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, gained 1%. Financials rose 0.5% and technology ended 2.1% higher. Air Canada (AC.TO) , opens new tab is betting on business travel to support an expansion of service from Toronto's downtown airport, with new routes to the U.S., in a boost for cross-border flying despite trade tensions between the two countries. Shares of the airline were down 0.2%. (This story has been corrected to change the strategist's firm's name to Manulife Investments, instead of Manulife Investment Management, in paragraph 4) https://www.reuters.com/business/tsx-futures-rise-commodity-gains-ahead-retail-sales-data-2025-10-23/
2025-10-23 20:27
Layoffs part of plan to cut global workforce by 25% Canadian employees to be notified in early November U.S. oil price drop pressures companies to cut staff CALGARY/HOUSTON, Oct 23 (Reuters) - U.S. oil company ConocoPhillips (COP.N) , opens new tab is laying off employees at its Canadian operations, according to three sources and a company memo reviewed by Reuters, as it moves to cut up to a quarter of its global workforce by next year. The memo did not specify how many layoffs would take place but said they would begin at the company's Canadian operations in the first week of November. Sign up here. Employees in Calgary will be notified virtually on November 5 and those in the company's Surmont oil sands operation in northern Alberta and its Montney shale play in British Columbia will be told in person the following day, the memo said. "We will not be sharing area-specific workforce numbers for current or impacted employees and contractors," ConocoPhillips spokesperson Dennis Nuss said in an email. FALL IN OIL PRICES FORCES STAFF AND SPENDING CUTS ConocoPhillips employed 950 people in Canada as of the end of 2024, according to the company's website, and its 2024 Canadian production was 164,000 barrels of oil equivalent per day (boe/d). A fall in oil prices has put ConocoPhillips and its U.S. rivals under pressure this year, forcing them to cut staff, curb capital spending and reduce drilling. U.S. oil major Chevron (CVX.N) , opens new tab announced it would lay off , opens new tab up to 20% of its staff in February, and other energy companies, including SLB (SLB.N) , opens new tab and BP (BP.L) , opens new tab, are also cutting their workforces. In Canada, the major domestic oil sands players have remained relatively sheltered from the downturn, due to years of cost-cutting and the insulating effects of a lower Canadian dollar, which makes Canadian oil exports more attractive to foreign buyers. But the U.S. industry's pain has spread to Canada, with U.S.-owned companies beginning to cut their Canadian divisions as they consolidate operations and seek to become more efficient. In September, Canada's Imperial Oil (IMO.TO) , opens new tab , which is majority-owned by ExxonMobil and has reported strong profits this year, said it would cut its workforce by about 20% by the end of 2027, part of a major restructuring that will eventually shutter most of its presence in the oil-and-gas city of Calgary. https://www.reuters.com/business/world-at-work/conocophillips-layoff-canada-employees-november-company-memo-shows-2025-10-23/
2025-10-23 20:21
Offers full and unconditional pardon to Zhao Binance founder served time in prison last year Latest in series of pardons for convicted crypto executives WASHINGTON, Oct 23 (Reuters) - U.S. President Donald Trump has pardoned Changpeng Zhao, the convicted founder of the Binance cryptocurrency exchange, the White House said Thursday, in the latest move by Trump to boost the crypto industry and expunge its past misdeeds. Zhao, a billionaire known as "CZ" who is one of the most influential figures in crypto, quit in 2023 as Binance chief after the company pleaded guilty to failing to maintain an effective anti-money laundering program and paid a penalty of $4.3 billion. Sign up here. Zhao was prosecuted by the Biden administration "in their war on cryptocurrency," White House press secretary Karoline Leavitt said in a statement. Since he returned to office, Trump's family has reaped millions of dollars from a variety of crypto ventures - moves criticized by political rivals and ethics experts citing the potential for conflicts of interest. The White House has denied those claims and on Thursday Leavitt said it carefully examined all pardons. In a post on social media platform X, Zhao said he was "deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice." He added: "Will do everything we can to help make America the Capital of Crypto." FULL AND UNCONDITIONAL PARDON U.S. authorities said in 2023 that Binance had failed to report suspicious transactions with organizations including Hamas and al Qaeda and with websites dedicated to selling child sexual abuse materials. Zhao, a citizen of Canada who was born in China, personally paid a $50 million fine and served nearly four months in prison last year after pleading guilty to the same charge as his company. However, he kept his Binance stake, while one of his appointees was made chief executive. "I made mistakes, and I must take responsibility," Zhao said when he stepped down. The full and unconditional pardon could pave the way for him to return to the business he co-founded in 2017. It may also offer the chance for Binance to expand in the United States as the crypto industry booms under the Trump administration. A spokesperson for Binance, the world's largest crypto exchange by trading volumes, thanked Trump for his leadership. News of the pardon, which Zhao told a podcaster in May he had been seeking, was first reported by the Wall Street Journal. The U.S. Constitution gives the president broad power to issue pardons to wipe away federal criminal convictions, or commutations to modify sentences. Historically, presidents have largely waited until the end of their terms to use such powers, but there is no requirement that they do so. During his second term, Trump has made sweeping use of his clemency powers and Zhao's is the latest in a series of pardons that Trump has granted to crypto executives and entrepreneurs, as well as others convicted of white-collar crimes. The crypto sector poured money into Trump's 2024 presidential campaign, during which the Republican candidate promised to end what he called a crackdown by the Biden administration on the industry. SUPPORT FOR WORLD LIBERTY FINANCIAL Binance itself this year offered support to one of the Trump family's crypto ventures, World Liberty Financial. In May, Binance accepted World Liberty's USD1 stablecoin as payment for a $2 billion investment in the exchange by Abu Dhabi investment firm MGX. Binance's decision to accept USD1, which was launched only in March, provided a big boost to the World Liberty venture, and still accounts for most of the USD1 in circulation. Democratic U.S. Senator Elizabeth Warren, who previously criticized the MGX deal, said on Thursday: "First, Changpeng Zhao pleaded guilty to a criminal money laundering charge. Then he boosted one of Donald Trump’s crypto ventures and lobbied for a pardon. Today, Donald Trump did his part and pardoned him." A spokesperson for Binance declined to comment on Warren's criticism. In March, the president pardoned the three co-founders of crypto exchange BitMEX , opens new tab who had pleaded guilty in 2022 for failing to implement a Bank Secrecy Act-compliant anti-money laundering program. Trump also pardoned in January Ross Ulbricht, who was sentenced to life in prison for running the underground online marketplace Silk Road but remained a popular figure within the crypto community. Outside crypto, Trump has pardoned the founder of electric truck company Nikola, who was convicted of fraud, and commuted the sentence of the executive behind the now-defunct startup Ozy Media. On his first day back in office, Trump pardoned approximately 1,500 individuals charged in the January 6, 2021, attack on the U.S. Capitol. https://www.reuters.com/world/us/trump-pardons-convicted-binance-founder-zhao-white-house-says-2025-10-23/
