Latest news with #RajasikMukherjee
Yahoo
3 days ago
- Automotive
- Yahoo
Australia's Lynas surges as automakers flag risks from China's rare-earth export curbs
By Rajasik Mukherjee (Reuters) -Shares of Australia's Lynas Rare Earths climbed on Thursday to their highest point in more than two years, after global automakers warned that China's export restrictions on rare-earth materials could lead to production delays. As the world's largest rare-earth producer outside China, Lynas is expected to benefit from concerns over global supply stability. Analysts suggest the situation could create favorable conditions for the Australia-listed company amid rising geopolitical tension and demand for critical minerals. Lynas' stock jumped as much as 11.8% to A$9.2, touching its highest level since February 8, 2023. The move also marked the stock's biggest intraday percentage gain since October 24, 2023. "Lynas' rally ... is a powerful reflection of the dual drivers at play today: escalating geopolitical tensions and surging demand for green technology," said Hebe Chen, market analyst at Vantage Markets. "As China tightens rare-earth export controls, markets are pricing in supply risks — positioning Lynas ... as a strategic hedge." China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by U.S. President Donald Trump. The move raised alarms across industries reliant on the 17 rare-earth elements, which are critical for defense systems, electric vehicles, clean energy, and advanced electronics. This week, German automakers added urgency to those concerns, warning that China's export restrictions on rare-earth materials pose a significant threat to their production lines and local economies. Europe's auto supplier association CLEPA said several production lines have shut down after running out of supplies, while Mercedes-Benz said they were talking to top suppliers about building "buffers" such as stockpiles to protect against potential threats to supply. Although rare-earth elements are relatively common in the earth's crust, China dominates the global supply chain by mastering the complex and environmentally challenging refining process. The U.S. has only one operational rare-earth mine, but the bulk of its output is still shipped to China for processing, underscoring the strategic importance of non-Chinese producers such as Lynas.
Yahoo
3 days ago
- Automotive
- Yahoo
Australia's Lynas surges as automakers flag risks from China's rare-earth export curbs
By Rajasik Mukherjee (Reuters) -Shares of Australia's Lynas Rare Earths climbed on Thursday to their highest point in more than two years, after global automakers warned that China's export restrictions on rare-earth materials could lead to production delays. As the world's largest rare-earth producer outside China, Lynas is expected to benefit from concerns over global supply stability. Analysts suggest the situation could create favorable conditions for the Australia-listed company amid rising geopolitical tension and demand for critical minerals. Lynas' stock jumped as much as 11.8% to A$9.2, touching its highest level since February 8, 2023. The move also marked the stock's biggest intraday percentage gain since October 24, 2023. "Lynas' rally ... is a powerful reflection of the dual drivers at play today: escalating geopolitical tensions and surging demand for green technology," said Hebe Chen, market analyst at Vantage Markets. "As China tightens rare-earth export controls, markets are pricing in supply risks — positioning Lynas ... as a strategic hedge." China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by U.S. President Donald Trump. The move raised alarms across industries reliant on the 17 rare-earth elements, which are critical for defense systems, electric vehicles, clean energy, and advanced electronics. This week, German automakers added urgency to those concerns, warning that China's export restrictions on rare-earth materials pose a significant threat to their production lines and local economies. Europe's auto supplier association CLEPA said several production lines have shut down after running out of supplies, while Mercedes-Benz said they were talking to top suppliers about building "buffers" such as stockpiles to protect against potential threats to supply. Although rare-earth elements are relatively common in the earth's crust, China dominates the global supply chain by mastering the complex and environmentally challenging refining process. The U.S. has only one operational rare-earth mine, but the bulk of its output is still shipped to China for processing, underscoring the strategic importance of non-Chinese producers such as Lynas. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-04-2025
- Business
- Yahoo
Traders seek refuge in Aussie consumer staples as US tariffs spark market fall
By Rajasik Mukherjee (Reuters) - Shares of Australia's consumer staple companies rose on Thursday, driven by grocers Coles and Woolworths, as investors moved to safer bets after U.S. President Donald Trump's reciprocal tariffs sparked global market turmoil. Shares of the sector ended 1.3% higher while the broader Australian market fell 0.9% to its lowest since March 14. Coles rose 2.1% to A$20.29 and Woolworths advanced 1.6% to A$30.02. Both shares hit their highest levels since March 4. President Trump's decision to impose a 10% tariff on most goods imported to the United States sent shockwaves globally, sparking fears of an escalating trade war and a hit to global economic growth. Australian Prime Minister Anthony Albanese called Trump's decision to impose tariff on its ally as "not the act of a friend" while also ruling out any reciprocal tariffs against the United States. "Consumer staples is generally an outperformer in nervous markets as investors gravitate towards businesses that have consistent demand due to needs from the consumer," said Mark Gardner, CEO and Head of Equities Advisory at MPC Markets. Australia's consumer staples sector makes up 3.8% of the benchmark index. Sectors like consumer staples tend to hold steady during market volatility, driven by demand for everyday essentials. The country's top supermarket chain Woolworths and its peer Coles dominate the supermarket industry and generate most of their earnings domestically. "Investors who have to or would like to invest in Australian equities, focusing on companies that generate 100% of the earnings onshore can be a relatively safer investment in this environment," Philip Pepe, a senior equities analyst with Shaw and Partners, said. Companies with "high foot traffic, high recurring revenue and who also offer alternatives to imported goods" are well-positioned to weather the tariff storm, Pepe said, referring to Coles, Woolworths and Metcash. Shares of Metcash gained nearly 1% while those of pub operator Endeavour rose 0.5%.
Yahoo
01-03-2025
- Business
- Yahoo
Australia's TPG Telecom hits four-month peak on upbeat earnings
By Rajasik Mukherjee (Reuters) - Shares of Australia's TPG Telecom surged to a more-than-four-month high on Friday after the telco logged a 3.4% rise in its full-year underlying earnings, driven by growing mobile customer numbers. Shares of the country's third-largest telco ended 2.4% higher, after rising as much as 6% earlier in the day to hit their highest since October 21, 2024. The stock posted its biggest intraday percentage gain since August 30. The Sydney-headquartered company said on Friday its earnings before interest, tax, depreciation and amortization (EBITDA), excluding impairment charge and one-off costs, rose to A$1.99 billion ($1.24 billion) for the year ended December 31. Analysts at Jefferies said TPG's earnings were largely in line with their estimates. TPG also logged a 1.5% increase in its service revenue for the year to A$4.70 billion, aided by a higher mobile service revenue and increased prepaid subscribers. "We achieved continued growth in mobile service revenue, expanded gross margin, increased EBITDA in line with our cash flow," said TPG CEO Inaki Berroeta. The telecom firm also reaped the benefits of inking a network sharing deal with Singapore Telecommunications-owned Optus. The deal, which received the thumbs up from Australia's competition watchdog last year, is expected to double TPG's network size. TPG, which last year said they would sell its fibre, fixed assets to Macquarie-backed telecommunications group Vocus for A$5.25 billion, also announced a final dividend of 9 Australian cents per share. The firm said it expects its full-year 2025 EBITDA to be around A$1.95 billion and A$2.03 billion. ($1 = 1.6100 Australian dollars)
Yahoo
20-02-2025
- Business
- Yahoo
Guzman, Wesfarmers to deliver upbeat earnings for Australian discretionary retailers
By Rajasik Mukherjee and Kumar Tanishk (Reuters) - Australia's discretionary retailers are expected to report improved half-yearly earnings, investors said, as easing inflation and tax cuts encouraged weary consumers to start spending again. The Australian retail sub-index, which includes Kmart and Bunnings hardware chain owner Wesfarmers, electronics retailer Harvey Norman and Mexican fast food chain Guzman y Gomez, has gained 8.2% so far this year. "On balance the discretionary retailers will report well," said Luke Winchester, portfolio manager at Merewether Capital. "The 'cost of living crisis' has been well documented in Australia over the last couple of years, however the retailers have been resilient in the face of that." Australia's central bank delivered the country's first interest rate cut in more than four years on Tuesday but warned it was too early to declare victory over inflation and said it was cautious about further easing. Guzman y Gomez is the pick for this reporting season, analysts said, after its sizzling initial public offering debut last year. Ron Shamgar, head of Australian equities at TAMIM Asset Management, said he was optimistic about Guzman's results but noted potential risks to its share price. "There would be a significant amount of stock coming out of escrow post the results which could place some pressure on the share price in the short term," added Shamgar. Guzman is slated to release its half-year earnings on February 21. Perth-based conglomerate Wesfarmers, which in January announced it would wind down Catch, its loss-making online retailer, is expected to post a slight increase in half-year profit, LSEG data showed. The company will report its first-half performance on February 20. "Wesfarmers' share price has been surging over the past year," said Tim Waterer, chief market analyst with KMC Trade, adding that shareholders expect the company "will 'deliver the goods' on the earnings front." Grady Wulff, an analyst with Bell Direct, said investors might focus more than usual on companies' second-half prospects "to determine whether the headwinds of high cost of living pressures are hitting discretionary spend or not". With lower interest rates and tax savings, consumers might make more discretionary purchases, reversing the trend of frugality that has characterised the past two years when they put non-essential purchases on hold. "The retailers will be one of the sectors that benefits the most from easing interest rates. The tailwinds for our discretionary companies will be strong heading into the rate cut cycle," Wulff said. ---------------------------------------------------------------- Sign in to access your portfolio
