2025-07-24 11:37
Future of titanium unit likely to be among first decisions of incoming CEO Trott Trott's vision for Rio includes focus on streamlining core businesses, sources say Global iron ore operations likely be grouped together, sources say July 24 (Reuters) - Rio Tinto (RIO.L) , opens new tab is considering a possible sale of its titanium unit due to weak prices and low returns, three sources said, just as incoming CEO Simon Trott will weigh up a restructuring of the world's second-largest miner when he takes over next month. Titanium, used to make paints, cosmetics and food colouring, is also a vital ingredient in jet engine parts, missile casings, rocket components, submarines and naval vessels because of its strength, corrosion resistance and lightweight properties. Sign up here. China, the world's biggest producer and consumer of titanium dioxide, has expanded its production to capture over half the global market over the past decade, according to data from the U.S. Geological Survey. China wields significant pricing power, which has knock-on effects for Western miners, including on margins. Against this backdrop, Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab has been evaluating whether the titanium business still has a place in its portfolio. How to exit it could be one of Trott's first decisions, the three sources familiar with matter said. Rio Tinto declined to comment. Rio would not be the first to exit titanium. Bowing to investor pressure, DuPont (DD.N) , opens new tab in 2013 said it would spin off its own titanium dioxide business , opens new tab. In the company's portfolio, titanium falls under the Minerals business, headed by Sinead Kaufman. This division also includes borates, used in cleaning products, as well as the Iron Ore Company of Canada, diamonds, and the Jadar lithium project in Serbia. The Minerals division reported an underlying EBITDA of $1.1 billion in 2024, 24% lower than in 2023, the company's financial report shows. Iron and titanium operations in South Africa and Canada accounted for more than half. Trott, who takes over as the company's CEO on August 25, has headed the iron ore division since 2021. There is an acknowledgement at the company that internal costs, such as staffing, are excessive, sources have told Reuters, so cost-cutting is expected. "There's going to be a middle management clean out," said one of the sources, who was not authorised to speak publicly. Part of Trott's pitch and vision for Rio includes a focus on streamlining the structure of the company's core businesses iron ore, copper, lithium and aluminium, the sources said. Australia and possibly Canada's iron ore operations, and the upcoming Simandou project in Guinea are likely to be grouped together, as well as the recently acquired U.S. lithium company Arcadium and its other lithium projects and investments, they added. Rio is scheduled to release its half-year results on July 30. https://www.reuters.com/world/americas/rio-tinto-weighs-sale-titanium-business-sources-say-2025-07-24/
2025-07-24 11:27
KARACHI, July 24 (Reuters) - A deputy chief of Pakistan's spy agency met currency exchange firms this week to address a sharp slide in the rupee, prompting a security crackdown on "black market dollar trade", the head of the country's forex association told Reuters on Thursday. The action helped stabilise the open market rate and the rupee recovered against the dollar by one rupee on Thursday, said Exchange Companies Association of Pakistan chairman Malik Muhammad Bostan. Sign up here. "The dollar is down one rupee today in the open market. This is because we're finally getting the supply we need," Bostan said. A spokesperson for the spy agency, the Inter-Services Intelligence (ISI), did not immediately respond to an email seeking comment. The ISI is led by Pakistan's powerful military. The action marks the second such intervention in two years after the military helped curb speculative currency trade in 2023. https://www.reuters.com/world/asia-pacific/pakistan-spy-agency-targets-black-market-dollar-trade-curb-rupee-slide-says-2025-07-24/
2025-07-24 11:27
Spy agency's deputy chief met exchange firms over rupee fall Move underscores armed forces' expanding economic role Open market dollar rate down one rupee after latest action KARACHI, July 24 (Reuters) - A deputy chief at Pakistan's spy agency met with currency exchange firms this week amid a sharp slide in the rupee, leading to a crackdown on black market dollar trade, the head of the country's forex association told Reuters on Thursday. The move, a demonstration of the military's growing role in managing the economy, marks the second such intervention, following a 2023 army clamp down that halted an earlier sharp plunge in the currency, helping stabilise the exchange rate until this month. Sign up here. Currency dealers say the rupee is again under pressure as a result of dollar hoarding, cross-border smuggling, and banking restrictions that have driven demand to unregulated dealers offering quicker or better rates. Faisal Naseer, a major general heading the internal security arm of the military's Inter-Services Intelligence, met with exchange firms this week, according to Malik Muhammad Bostan, chairman of the Exchange Companies Association of Pakistan. Following the meeting, security forces, including the Federal Investigation Agency - a civilian security agency - began targeting illegal currency dealers, many of whom subsequently went underground, he said. The open market dollar rate was down one rupee following the intervention, said Bostan, who credited the enforcement drive and a resulting improvement in the supply of dollars to the market. A spokesperson for the military's media wing did not immediately respond to a request for comment. Border controls with Iran and Afghanistan were tightened during tensions with India earlier this year, curbing illicit currency flows. But with checks now eased and the central bank buying dollars to build reserves, formal supply is under strain, Bostan said. Under Pakistan's $7 billion programme with the International Monetary Fund, authorities have pledged to keep the gap between the interbank and open market rates within 1.25% to prevent remittances - crucial to maintaining foreign exchange levels - from shifting to informal channels and eroding reserves. Despite this week's crackdown, dollars are still not available in upscale areas of the commercial hub Karachi, pushing buyers to the grey market, where rates remain about 5% above interbank, said Adnan Sheikh of Pakistan Kuwait Investment Company. https://www.reuters.com/world/asia-pacific/pakistan-spy-agency-targets-black-market-dollar-trade-curb-rupee-slide-2025-07-24/
2025-07-24 11:25
KYIV, July 24 (Reuters) - Ukraine's central bank on Thursday left its key interest rate steady at 15.5% for the third consecutive meeting as inflation is expected to continue to ease, but it said that wartime risks will constrain economic growth. In a statement, it said Ukraine's economic growth would slow to 2.1% this year compared with 2.9% in 2024. Sign up here. The central bank previously predicted 2025 economic growth at 3.1% but cut its forecast due to more intense Russian attacks in recent months. Governor Andriy Pyshnyi said that inflation had started to decline as expected in June and would continue to slow significantly by the end of the year. "Holding the key policy rate steady at 15.5% is an important prerequisite for a sustainable slowdown of inflation toward its 5% target," Pyshnyi told a news briefing. The central bank expects inflation to reach 9.7% at the end of this year and to slow to 6.6% in 2026 and to 5% in 2027. https://www.reuters.com/world/europe/ukraines-central-bank-keeps-rates-steady-sees-economy-slowing-2025-2025-07-24/
2025-07-24 11:16
July 24 (Reuters) - Refiner Valero Energy (VLO.N) , opens new tab beat Wall Street estimates for second-quarter profit on Thursday as a rebound in refining margins helped cushion the loss in its renewable diesel unit. Investors were expecting top U.S. refiners to report higher second-quarter profits, bouncing back from losses during the first three months of the year as unseasonably strong diesel margins boosted earnings. Sign up here. Valero, the first major refiner to post results this earnings season, said its refining margin per barrel of throughput was up at $12.35 in the reported quarter, compared with $11.14 from a year earlier. "We set a record for refining throughput rate in our U.S. Gulf Coast region in the second quarter," said CEO Lane Riggs. The company's total throughput volumes stood at 2.9 million barrels per day (bpd) in the quarter, compared with 3.0 million bpd a year earlier. The refining segment reported quarterly operating income of $1.3 billion, higher than last year's $1.2 billion. However, its renewable diesel segment, consisting of the Diamond Green Diesel joint venture, reported an operating loss of $79 million for the quarter, compared with a profit of $112 million a year ago. The company also said it was progressing with a fluid catalytic cracking unit optimization project that will enable the St. Charles Refinery to increase its high-value product yield. The project is estimated to cost $230 million and is expected to be completed in 2026. Valero reported a profit of $2.28 per share for the quarter ended June 30, compared with analysts' average estimate of $1.74 per share, according to data compiled by LSEG. https://www.reuters.com/business/energy/valero-energy-beats-q2-profit-estimates-refining-margins-improve-2025-07-24/
2025-07-24 11:13
July 24 (Reuters) - U.S. electric and gas utility CenterPoint Energy's (CNP.N) , opens new tab second-quarter profit was just shy of analysts' estimate on Thursday, weighed down by higher expenses. The country's electrical grids have been facing an onslaught of extreme weather and ballooning demand from electrification of industries and the technology sector's data center build out amid an artificial intelligence boom, prompting utilities to seek rate increases to upgrade and pay for power infrastructure. Sign up here. CenterPoint's operations and maintenance costs increased 5.5% to $715 million during the quarter ended June 30. The company provides electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. It also raised its 10-year capital expenditure plan through 2030 by $500 million to $53 billion to cater to an anticipated surge in power demand from data centers. "This year alone we have increased our capital investment plan by $5.5 billion, including the $500 million increase," said CEO Jason Wells. Power demand from U.S. data centers is expected to nearly triple in the next three years and consume as much as 12% of the total electricity produced, according to a study by Lawrence Berkeley National Laboratory. CenterPoint's net income fell about 13% to $198 million. It posted an adjusted profit per share of 29 cents during the quarter, compared with analysts' average estimate of 30 cents, according to data compiled by LSEG. https://www.reuters.com/business/energy/centerpoint-energy-misses-profit-estimate-higher-costs-2025-07-24/
