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Globe and Mail
19-06-2025
- Business
- Globe and Mail
Market Analysis: June 19th, 2025
Global Markets Canadian Markets Canada's main stock index (S&P/TSX) fell as investors grew cautious over the possible U.S. involvement in the Israel and Iran conflict, which has been driving oil higher amid supply concerns. Investors are waiting on April's Canadian retail sales, due Friday, to gauge whether consumer spending remains resilient amid ongoing tariff uncertainty. Trading volumes in Canada were light as U.S. markets were closed for Juneteenth, dampening overall liquidity. American Markets U.S. markets remained closed for the Juneteenth holiday, but American traders have begun absorbing the Fed's latest update. The central bank paused on rates yet retained a hawkish posture, flagging persistent inflation threats linked to tariffs and geopolitical disruptions . Market sentiment remains split: some view the economy as resilient, while Fed officials point to growing weakness driven by tariff-induced price pressures . Meanwhile, the U.S. dollar held steady, oil climbed on Middle East worries, and spot gold inched higher amid safe-haven demand . European Markets European stocks retreated broadly as geo-political fears and tariff inflation risks weighed on sentiment Norway's central bank surprised markets by cutting its policy rate by 25 bp to 4.25%, the first cut in five years, citing a milder inflation outlook and flagging further reductions later in 2025 The Norwegian krone weakened sharply following the decision . UK Stocks also dropped, as the Bank of England held rates steady and warned that global conditions remain 'highly unpredictable', maintaining policy at a 2 low as UK equities followed the broader European downturn. Corporate News Airbus:Airbus secured additional aircraft orders on Wednesday, bringing its total to $21 billion at this week's relatively quiet Paris Air Show. Boeing, in contrast, made no new announcements following the Air India 787 crash. Chevron:Chevron is seeking buyers for its 50% stake in the Singapore Refining Company (SRC), with bids invited from parties including joint venture partner PetroChina, according to sources familiar with the matter. Empire Co. (Sobeys, Safeway):Empire Company, parent of Sobeys and Safeway, reported higher Q4 profits and announced a dividend increase. Google (Alphabet Inc.):Alphabet's Google faced a setback as an EU court adviser supported antitrust regulators in their case upholding a €4.34 billion fine imposed on the company. Mars Inc.:Mars has not offered any remedies to EU regulators reviewing its proposed $36 billion acquisition of Pringles-maker Kellanova, according to an update on the European Commission's website. Nippon Steel:Nippon Steel's CEO stated that the U.S. government's golden share in U.S. Steel will not affect the company's management autonomy if its takeover proceeds. Pernod Ricard:Pernod Ricard is reorganizing its business into two main divisions to simplify operations and respond to declining European spirits sales. Shell:Shell CEO Wael Sawan said the company is exercising extreme caution with its Middle East shipping routes due to rising tensions between Israel and Iran. Tesla:Democratic lawmakers in Texas have asked Tesla to delay the launch of its robotaxi service in Austin until September, when new autonomous driving legislation is scheduled to take effect.
RNZ News
12-05-2025
- Business
- RNZ News
Norway's wealth fund excludes Israeli firm on ethics grounds
The Norwegian fund is the world's biggest single investor, with stakes in nearly 8800 companies in 71 countries. Photo: 123RF Norway's sovereign wealth fund - the world's largest, with assets of about $1.8 trillion - has excluded an Israeli group on ethics grounds, because it supplies fuel to illegal settlements in occupied Palestinian territory. On Sunday, the Norwegian central bank, which manages the fund, said it had divested its holdings in Israeli group Paz Retail and Energy. Paz owns and operates filling stations in nine Jewish settlements in the West Bank, thereby supplying them with fuel, according to the bank's council on ethics, an advisory body that provides investment guidance for the fund. Several of the settlements have been built "far inside occupied Palestinian territory and are linked to Israel by dedicated access roads", the council said. It said that, by operating the infrastructure, Paz was "contributing to [the settlements'] perpetuation", leading to an "unacceptable risk that the company contributes to serious violations of the rights of individuals in war or conflict". It noted that the settlements were established in violation of international law and "the council therefore considers that Paz is contributing to the violation of international law". At the end of December 2024, the Norwegian fund owned 0.49 percent of the company's shares, then worth 72.8 million kroner (NZ$11.8m). Norway's central bank announces its divestment decisions only after the sale of its holdings. The fund, which invests the Norwegian state's oil and gas revenues, is the world's biggest single investor. It has stakes in nearly 8800 companies in 71 countries, representing 1.5 percent of the world's total market capitalisation. - AFP
