Latest news with #multinationals
Economy ME
2 days ago
- Business
- Economy ME
Stock markets gain momentum as U.S. indices hit record highs amid mixed investor sentiment
Investors around the world were digesting a mix of optimism and uncertainty following a historic stretch of record closes in U.S. indices and crucial geopolitical developments. On Wall Street, the S&P 500 and Nasdaq Composite began trading on Tuesday near their highest levels ever, continuing a pattern of modest gains that culminated on Monday with both indices closing at new records. The Dow Jones Industrial Average opened just off its late 2024 peak, following a slight dip in the previous session. Internationally, both the MSCI World Index and European markets opened slightly lower, pausing after a strong upward run the prior week. Asian markets opened on a weaker note Tuesday as enthusiasm about the U.S.-EU trade deal faded and investors turned cautious amid a data-heavy week U.S.-EU trade announcement The focus remained on the U.S.-EU trade accord finalized over the weekend. Under this agreement, EU tariffs are set to drop to 15 percent—down from a planned 30 percent scheduled to start August 1. This announcement calmed fears of an escalating trade war and was a clear positive for multinational corporations, particularly automakers and manufacturers with cross-Atlantic supply chains. However, internal criticism—especially from France, which labeled the deal a 'submission'—highlighted ongoing disagreements within the European Union and kept investors cautious. With the U.S. still negotiating tariff deals with Canada and Mexico, and China talks ongoing, trade risks continue to hover just beneath the surface, potentially influencing market sentiment as the week unfolds. Read more: U.S. and EU strike tariff deal: Stock markets surge, euro rises as trade tensions ease Corporate earnings: Tech sector in focus Tuesday marks the beginning of a packed calendar for corporate earnings, with the spotlight firmly on America's top technology firms. Investors are closely monitoring reports from Microsoft, Apple, Amazon, and Meta for clues about the health of the tech sector—one of the most significant drivers behind the Nasdaq's recent surge. Strong guidance or surprise profits from these firms could extend the upward momentum, while any disappointment risks triggering a swift reversal. Fed awaited All eyes are also on the U.S. Federal Reserve, which convenes its July meeting on Wednesday. While the majority expectation is for rates to remain unchanged, investors are parsing every statement for hints of dovishness. With fresh PCE inflation data and critical jobs numbers due this week, even a subtle shift in the Fed's tone could ignite market moves, especially given the widespread anticipation of a continued 'higher-for-longer' rate environment. Despite record equity highs and resilience since the April 2025 sell-off, investors remain wary. The unresolved status of U.S.-China trade negotiations—and the threat of tariffs returning in mid-August—underscore the fragility of the current bullish sentiment.
SBS Australia
2 days ago
- Politics
- SBS Australia
Independent ACT Senator calls gas export system a scam
Independent ACT Senator calls gas export system a scam Gaza protest organisers vow to fight Harbour Bridge ban Tim David and Ben Dwarshuis return for final T20. Independent ACT Senator David Pocock has launched a scathing attack on both major parties, accusing them of selling out Australians to multinational gas giants. He says Australia's natural gas is being shipped offshore while locals face soaring prices at home, calling it a scam. "The major parties have sold the Australian people out. They've sold us out to big multinationals that are making an absolute fortune off our gas. This is a scam. What is happening is our natural resources are being sold off, given away, shipped off overseas, and we're not seeing the benefit of that. We're paying its own prices for our own gas, and we're not even getting a return through things like the PRRT, which the latest forecast show, is actually going to decline." He's urging the government to stand up to powerful corporations, and that uncontracted gas should stay in Australia, and go to manufacturers, businesses and households under pressure. Uncontracted gas refers to natural gas that a supplier anticipates will be available for sale in the market within a specific timeframe but is not yet committed under existing contracts. A search is underway after anti-Israel activists vandalised three Toll Group freight locations in Melbourne's CBD, using sledgehammers to smash glass doors and spray red paint across the buildings. Videos posted online show masked individuals carrying out the attacks along Collins Street. In the footage, they accuse the logistics giant of transporting weapons and can be heard chanting "death to Australia" and "death to Israel". The Jewish community has condemned the incidents. Chair of the Anti-defamation Commission Dvir Abramovich has told Channel 7 the ongoing campaign of intimidation has left many feeling unsafe. 'Sometimes it feels like we are being hunted in our own city. The Jewish community is fed-up with the campaign of terror, intimidation and fear." Victoria Police are treating the attacks as linked to a previous firebombing at a Greensborough business several weeks ago. No arrests have yet been made, as investigations continue. Protesters planning a demonstration on the Sydney Harbour Bridge this Sunday say they'll fight any attempt to block it. They aim to draw attention to starvation in Gaza, but New South Wales Premier Chris Minns quickly opposed the protest, citing short notice and traffic chaos. But activists argue the Bridge is a powerful symbol that represents Australia, and say they're willing to delay the event to meet safety requirements. Mr Minns has asked police to work with the group on an alternative route, but organisers say they'll challenge any legal attempt to stop them. Josh Lees of the Palestine Action Group says he's open to negotiation on the timing. "There's nothing chaotic about the people of New South Wales wanting to come out and have a mass peaceful demonstration to oppose the horrific scenes of deliberate starvation and genocide in Gaza. What's in chaos is the world. The world is in chaos. Gaza is in chaos. If we don't do something about that, then what does that mean for us and for humanity? If it's genuinely a matter of time, then we're happy to talk with Chris Minns and say, well, would he support this march then a week later, two weeks later, if that's genuinely the issue. But I question how genuine Chris Minns is in raising that issue." United States President Donald Trump has given Russia 10 to 12 days to reach a peace deal with Ukraine, sharply reducing his original 50-day deadline. The US President says there's no reason to wait the full term, considering the lack of progress. Mr Trump says Russia will face further sanctions if no peace deal with Ukraine is reached. "So what I'm doing is we're going to do secondary sanctions, unless we make a deal. And we might make a deal. I don't know. I don't know. You don't know. We've done so many peace deals. This is the one I started out with. And you know, this Putin called me. He wanted to know if I could help him with Iran. I said, no, I don't need your help with Iran, I need your help with Russia. And so that's the one deal that continues to linger." Mr Trump says he's had several promising talks with President Vladimir Putin, but each was followed by renewed violence between Russia and Ukraine. The US President also dismissed the idea of meeting the Russian president, saying, 'I'm not so interested in talking any more'. Australia have made two changes to their T20 side as they chase a clean sweep on their Caribbean tour, maintaining a perfect toss record with Mitchell Marsh winning for the fifth straight time. Ben Dwarshuis and Tim David return, replacing Xavier Bartlett and Cooper Connolly for the match in St Kitts. West Indies have also made two changes, bringing in Alzarri Joseph and Keacy Carty for Roston Chase and the injured Rovman Powell. Australia have won all four T20s so far, after sweeping the three-Test series.
Reuters
7 days ago
- Business
- Reuters
Small Ivory Coast cocoa firms say EU deforestation rules might bankrupt them
ABIDJAN, July 24 (Reuters) - Small players in Ivory Coast's cocoa industry say they fear they will go out of business due to the cost of complying with new European Union regulations on the import of commodities linked to deforestation. The proposed law, which aims to end the estimated 10% of global deforestation fuelled by EU consumption, requires companies importing goods such as cocoa, soy, beef and coffee to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines. In order to meet the regulations, Ivory Coast has opted for a digitalised sales and purchasing system to facilitate verification. However, cooperatives and small local exporters are concerned they will not be able to compete with Western multinational companies, which have better financial and human resources to handle the additional cost and workload. Two sources at Ivory Coast's Coffee and Cocoa Council regulator said around 900,000 out of 1 million cocoa farmers had already received their digital ID cards, which will also serve as bank cards. Under the new system, farmers will be paid via mobile money operators by exporters after buyers or cooperatives deliver their beans to ports - effectively cutting out the usual cash payments to middlemen. "With this card, the traceability of Ivorian cocoa is 100% guaranteed," one of the sources told Reuters, adding that all the data on farmers will be stored online. The second source said the new system, which was tested on a sample of producers, cooperatives and exporters, would be rolled out and become mandatory from October 1. The EU has delayed the launch of the law by a year, to December 2025, following complaints from trading partners, and cut back on reporting rules after industry criticism. "Compliance with the regulation requires investments that we cannot make," said the director of an Ivorian trading company who fears it could go bankrupt. The president of a cocoa export cooperative said multinationals planned to spend at least 200 CFA francs ($0.3604) per kilogram to comply with this regulation - a cost cooperatives are unable to bear. Cocoa players say the new rules might kill off vulnerable cooperatives or local exporters if Ivory Coast's government doesn't step in to protect them. "We are not opposed to traceability and sustainability. What we are criticizing is that the EU only protects its own industry and citizens, not those of other countries, and this regulation will kill local businesses," the director of an Ivorian export company told Reuters. "If we don't get help from the government, there won't be any cooperatives or local exporters left in two years," the director of another cocoa cooperative said. "We'll all disappear." The company leaders all declined to be identified to avoid the possibility of pressure or threats to their businesses. ($1 = 555.0000 CFA francs)
Wall Street Journal
18-07-2025
- Business
- Wall Street Journal
Wall Street Misprices South Africa's Collapse
A reckoning is coming for South Africa. The Trump administration sees it. So does Congress. But financial markets don't—and that's a problem. Multinationals and finance houses recognize South Africa's deteriorating domestic conditions: youth unemployment above 60%, frequent power and water outages, and failing state-owned enterprises. But they haven't priced in sanctions and compliance risks stemming from Pretoria's foreign alignments and collapsing standing in Washington. South Africa's rand is one of the world's most volatile currencies, yet its modest 4.28% dip against the U.S. dollar since the beginning of President Trump's second term doesn't capture the scale of Pretoria's increasing isolation.
CTV News
16-07-2025
- Business
- CTV News
Battered dollar a boon for U.S. multinational companies
Changing a Euro banknote for US dollars at an exchange counter in Rome, Italy, on July 13, 2022. (Gregorio Borgia / AP) NEW YORK — Large U.S. multinationals should soon start showing the positive effects of the dollar's tumble in recent months, reversing the situation in the past few years when the greenback's strength hurt companies with significant foreign revenue. The Dollar Index, which measures the buck's strength against six major currencies, is down about ten per cent for the year, due to rapidly changing U.S. trade policy and worries about U.S. growth and government debt. About half of that drop happened since April 2, when U.S. President Donald Trump announced outsized import tariffs against trading partners that started a panic about investing in U.S. assets. For the April-June period, the index, which is heavily weighted toward the euro, averaged 99.74, down 6.5 per cent from the first quarter average, the largest such decline over consecutive quarters in more than 30 years. The effects of the dollar's slide are expected to start showing up in second-quarter earnings season just getting underway. While that dollar's fall reflects investor worries about the U.S. economy's strength, it can help some companies. A weaker U.S. currency makes it cheaper for multinational companies to convert foreign profits into dollars, while also boosting the competitiveness of exporters' products. 'It's an absolutely huge move,' Greg Boutle, head of U.S. equity & derivative strategy at BNP Paribas, said. 'It is going to flatter earnings a little bit this quarter and also feed its way to guidance.' The dollar's impact on overall earnings is usually small, but can grow more meaningful when the currency experiences a large swing. Every ten per cent drop in the dollar translates into a profit surprise of about two per cent, at the S&P 500 level, according to estimates from research and strategy firm Macro Hive. That would be welcomed by investors increasingly worried about the earnings impact of evolving trade and tariff policies. The second-quarter profit reporting season started this week. 'Whatever the beat, miss or forward guidance was going to be without the FX effect will obviously be a little bit better with it,' Boutle said. The dollar's weakness this year, after a seven per cent rise in 2024, which hurt corporate results last year, took many market watchers by surprise. 'Certainly a lot of companies came into the year assuming a headwind .... That's flipped. That's a positive for earnings,' Patrick Kaser, portfolio manager at Brandywine Global, said. While earnings growth is expected to decelerate from the first quarter, the weaker dollar could help to offset possible tariff effects. Analysts are forecasting second-quarter earnings growth of 5.8 per cent year-over-year compared with 13.7 per cent in the first quarter, LSEG data show. Even in the first quarter, the dollar was a drag on year-over-year S&P 500 earnings growth of about one per cent, but now could lift earnings growth by about 0.5 per cent in the second quarter, according to David Lefkowitz, head of U.S. equities at UBS Global Wealth Management. 'If the dollar stays at these levels, the boost on a year-over-year basis will get progressively larger,' Lefkowitz said, estimating the dollar could generate a lift to year-over-year S&P 500 earnings growth by about one per cent and 1.5 per cent for the third and fourth quarter respectively. Foreign exposure S&P 500 companies generate about 41 per cent of their revenue from outside the United States, according to FactSet. Companies with major exposure to the Asia-Pacific region are particularly in focus with the euro having appreciated 12 per cent against the buck while the yen is up about 6 per cent. However, not all index constituents are equally affected by the dollar's swings. The information technology sector tops the list with the most international revenue exposure, at about 55 per cent, followed by the materials and communication services sectors, at 52 per cent and 49 per cent, respectively, according to FactSet. For instance, on Tuesday, BMO Capital Markets analyst Brian Pitz lifted his second-quarter revenue growth estimate for Netflix to 17.2 per cent from 16.4 per cent, largely boosted by a weaker dollar. Netflix will report results on Thursday. Investors are divided on the impact of a weaker dollar on stock prices. Some, like UBS's Lefkowitz, believe any benefits are already priced in by Wall Street and will not significantly move markets during earnings reports, but others still anticipate a positive boost. 'A lot of buy-side investors are obviously very acutely aware of this already, but nevertheless, we do think it's not in sell-side consensus numbers,' BNP's Boutle said. 'So we just think it creates a mechanical tailwind for earnings.' Still, analysts cautioned against counting on a big lift to stock prices from earnings beats driven by the weaker dollar. Many companies, including chipmakers, which stand to benefit from a weaker dollar, are also the ones most vulnerable to a hit from tariffs, Macro Hive research analyst Viresh Kanabar said. Investors may also be preoccupied with the potential impacts companies could see from the recent passage of the sweeping tax-cut and spending bill. 'In an environment where nothing else was going on, the move in the dollar would matter,' Brandywine's Kaser said. 'With all these other things going on, I don't think the currency effect is going to be as big as in an environment that maybe is quieter from a macroeconomic and geopolitical side of things.' --- Reporting by Saqib Iqbal Ahmed; Editing by Alden Bentley and Richard Chang
