2026-02-04 11:42
BEIJING, Feb 4 (Reuters) - Chinese solar panel maker GCL Group said a delegation from companies led by Elon Musk visited on Wednesday, Chinese state media outlet Securities Times reported. It came as Chinese local media reported that teams sent by Musk visited several Chinese solar firms days after he announced plans to build large‑scale solar cell production in the United States, sending shares in Chinese solar companies higher on Wednesday. Sign up here. Citing a GCL official, Securities Times said Musk’s team was briefed on the company’s granular silicon technology and its perovskite business layout in the United States. https://www.reuters.com/sustainability/climate-energy/gcl-says-musks-delegation-visited-company-chinese-state-media-reports-2026-02-04/
2026-02-04 11:34
Feb 4 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. The AI wave clearly doesn't float all boats. Tuesday's withering shakeout in the shares of software, data analytics and professional services operations shows how new AI development can cut both ways. Other tech firms also suffered, with Microsoft hit again and AMD down sharply out of hours despite a forecast-beating headline earnings beat. Against that backdrop, Walmart - an early adopter of AI in its processes - became the first retailer ever to top $1 trillion in market valuation on Tuesday. This caps off a year-long rally which has seen its shares soar nearly 26%, vaulting it into the ranks of the tech heavyweights. I’ll get into that and more below. But first, check out my latest column on why Australia's recent rate hike may be a wakeup call for global central banks And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. AI SCATTERS THE TECH HERD The trigger for the ongoing selloff in global software stocks was actually news from last Friday that AI firm Anthropic had launched a new AI “agent” for automating work tasks. The fact that it took almost two full trading days to land shows how much it blindsided investors, even though recent months have seen markets discriminate much more ruthlessly between winners and losers from AI in the digital and tech space. Alphabet's results after Wednesday's bell will test the mood further. After major Wall Street indexes lost about 1% or so on Tuesday, Nasdaq futures remained in the red early today. Around the world the tech herd was similarly scattered, with hardware and chip firms in Asia continuing to do well but software firms in India also getting caught in the downdraft. Elsewhere, European pharma giant Novo Nordisk slumped almost 20% after the Wegovy maker warned about this year's profit outlook amid fierce competition in the weight-loss drugs world. Back in macro markets, investors are trying to parse signs of an acceleration in economic activity flagged by the sharp jump in ISM's manufacturing index, brisk business loan growth in the Fed's quarterly loan officers survey and even the slightly jarring sight of Australia raising interest rates this week. ISM's service sector report for last month is due later, with ADP's private sector jobs report also due. Even though the House of Representatives voted on Tuesday to end this week's partial government shutdown - at least for another 10 days - it's too late to ensure a full January employment report this week. Overseas, service sector surveys were slightly below forecast in Europe, but they picked up steam in Japan and China. With one eye on tomorrow's European Central Bank and Bank of England policy meetings, currencies were a bit calmer. But the yen fell again ahead of weekend elections in Japan, and China's yuan briefly strengthened to its best levels in almost three years as the Lunar New Year holiday nears. Gold continued its recovery and oil spiked amid a fresh flare-up in U.S.-Iran tensions that saw the U.S. military down an Iranian drone on Tuesday. Bitcoin struggled to stabilize after hitting its lowest level since before the U.S. election in 2024. Chart of the day A deep selloff in global software stocks entered a second day on Wednesday as concerns about how AI could impact these companies' livelihoods mounted. The trigger of the selloff was Anthropic's new agentic AI tool. Over the past six months, investors have started to discriminate between potential winners and losers from AI within the tech sector itself. Since OpenAI launched ChatGPT, S&P 500 software and services stocks are now actually in the red - while chips stocks have almost trebled. Today's events to watch * U.S. ISM services PMI for January (10:00 AM EST), S&P Global services PMI for January (9:45 AM EST), ADP private sector jobs for January (8:15 AM EST) * Fed Governor Lisa Cook speaks, Richmond Fed's Thomas Barkin speaks * U.S. corporate earnings: Alphabet, Arm, Eli Lilly, Qualcomm, Uber Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab 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/business/finance/global-markets-view-usa-2026-02-04/
2026-02-04 11:30
EU lacks refining capacity for critical materials Faces long lead times to diversify France to work on financing, Germany on sourcing Italy to handle storage of critical minerals LONDON, Feb 4 (Reuters) - The European Union is pushing ahead with plans to stockpile critical materials, with Italy, France and Germany set to take leading roles as the bloc moves to cut reliance on China, four sources with knowledge of the matter said. The EU unveiled a plan in December to reduce its dependence on China for key raw materials, including a joint stockpile and export restrictions on reusable metal scrap and rare earth waste. The European Commission has yet to provide details. Sign up here. China is the world's largest producer of industrial metals and minerals. Its export controls since 2023 on gallium, germanium, tungsten, indium, molybdenum, antimony and heavy rare earths such as dysprosium and terbium have disrupted supply chains for manufacturers outside the country. With Europe lacking refining capacity and facing long lead times to diversify, strategic reserves are seen as one of the few tools available to cushion its economy against China's export curbs, safeguard defence production and protect energy transition goals. DEFINED ROLES The sources said there had been movement towards building up critical minerals reserves. France will work on financing purchases, Germany will handle sourcing and Italy will take charge of storage, according to three sources who attended a Teams meeting with EU officials in December. Italy and Germany have already pledged to work together to secure raw material supply chains vital to their industries. A Commission spokesperson did not immediately reply to a request for comment. The December meeting focused on storage facilities, including those run by Italy-based Pacorini Global Services and Netherlands-headquartered C. Steinweg, the sources said. Steinweg and Pacorini declined to comment. One source expressed frustration at the EU's slow progress, saying there were many working groups, a lot of talking, but little action. The sources had no information on which banks France was speaking to or which producers Germany had approached. Another source said Italy was "in coordination talks with the Commission, and, at a technical level, with other member states, including Germany and France, which participate in the dedicated working group". The EU's critical minerals , opens new tab list includes 34 raw materials, of which 17 are designated Strategic Raw Materials because they are deemed most essential for the green and digital transition, as well as for defence and aerospace. Commission President Ursula von der Leyen said in October that the EU would seek to accelerate raw materials partnerships with countries including Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine. https://www.reuters.com/sustainability/climate-energy/italy-france-germany-lead-eu-critical-materials-stockpiling-plan-sources-say-2026-02-04/
2026-02-04 11:29
Agreement includes Graphinex, Marubeni and NSC Companies aim to reduce procurement risks Detailed discussions to include evaluating potential manufacturing sites TOKYO, Feb 4 (Reuters) - Japanese oil refiner Idemitsu Kosan (5019.T) , opens new tab has agreed with Australia's Graphinex, trading house Marubeni (8002.T) , opens new tab and chemicals processor NSC to develop a Japan-Australia supply chain for natural graphite-based anode materials, it said on Wednesday. The four companies aim to reduce procurement risks for Japan's battery industry and bolster supply-chain resilience across Asia, Idemitsu said. Sign up here. Demand for anode materials, a core component of lithium-ion batteries, is rising with global growth in electric vehicles and renewable energy storage. Japan relies heavily on imported graphite, making stable sourcing a key challenge. China has the world's largest graphite reserves and dominates its mining and processing. DETAILED TALKS TO INCLUDE POSSIBLE MANUFACTURING SITES Under the collaboration, the companies plan to use high-grade graphite resources held by Graphinex in Queensland and build an integrated supply chain spanning resource development to anode material production and market supply. They will now move into detailed discussions, including evaluating potential sites for manufacturing facilities. "We aim to commercialize the business within several years," an Idemitsu spokesperson said, adding that the materials will be sold mainly to battery manufacturers and automakers. In 2024, Idemitsu invested in Graphinex as part of its push into critical minerals, though it has not disclosed the terms. Separately on Tuesday, state-backed Japan Organization for Metals and Energy Security said it and Hanwa (8078.T) , opens new tab signed a non-binding letter of intent to invest $30 million in NextSource's (NEXT.TO) , opens new tab graphite spheroidization and high-purity project in UAE, acquiring a 15% interest in the project. The project aims to produce 14,000 metric tons per year of anode material intermediates, using natural graphite from the Canadian company's Molo mine in Madagascar, with processing to be carried out in Abu Dhabi. https://www.reuters.com/world/asia-pacific/idemitsu-partners-build-natural-graphite-anode-supply-chain-2026-02-04/
2026-02-04 11:21
Advanced Micro Devices tumbles on revenue forecast Eli Lilly gains on forecasting 2026 profit above estimates Alphabet falls ahead of quarterly report S&P 500 -0.51%, Nasdaq -1.51%, Dow +0.53% Feb 4 (Reuters) - U.S. stocks ended lower on Wednesday, with losses in Advanced Micro Devices, Palantir and other technology companies, as investors worried about pricey valuations and whether Wall Street's AI rally has reached its peak. Alphabet (GOOGL.O) , opens new tab fell almost 2% ahead of its quarterly results after the bell. After the close, it regained 2% as the company said it was aggressively ramping up spending as it deepens its investments in the AI race. Sign up here. Advanced Micro Devices (AMD.O) , opens new tab tumbled 17% after the chipmaker forecast quarterly revenue that disappointed investors and suggested it is having a tough time competing against AI heavyweight Nvidia (NVDA.O) , opens new tab. Nvidia dropped 3.4% and the PHLX semiconductor index (.SOX) , opens new tab fell 4.4%. Palantir (PLTR.O) , opens new tab slumped almost 12%, reversing sharp gains from the previous day that were driven by the AI data company's strong quarterly sales. "The size of the infrastructure buildout is unprecedented, and the pace of consumers and businesses adopting AI tools is also unprecedented. The stock market is having a really hard knowing where to price the stocks and what the future looks like. ... The market is suddenly skeptical and concerned about it," said Jed Ellerbroek, a portfolio manager at Argent Capital in St. Louis. Some software companies added to recent losses amid worries that rapidly advancing AI could disrupt industry incumbents. Snowflake fell 4.6% and Datadog (DDOG.O) , opens new tab lost 3.3%. "If you've got legacy software that's old and clunky, you're a ripe target for AI. We're a bit bearish on software in general, with the whole impetus of AI," said Josh Chastant, portfolio manager, public investments at GuideStone Funds. Investors selling AI-related stocks shifted into less pricey companies that sat out the tech rally in recent years. The S&P 500 value index (.IVX) , opens new tab gained for a fifth straight session, while the S&P 500 growth index (.IGX) , opens new tab dropped. The S&P 500 declined 0.51% to end the session at 6,882.72 points. The Nasdaq fell 1.51% to 22,904.58 points, while the Dow Jones Industrial Average rose 0.53% to 49,501.30 points. Even as the S&P 500 lost ground, seven of the 11 S&P 500 sector indexes rose, led by energy (.SPNY) , opens new tab, up 2.25%, followed by a 1.8% gain in materials (.SPLRCM) , opens new tab. Volume on U.S. exchanges was heavy, with 24.6 billion shares traded, compared to an average of 19.9 billion shares over the previous 20 sessions. Super Micro Computer's (SMCI.O) , opens new tab shares jumped 13.8% after the company raised its annual revenue forecast on sustained demand for its AI-optimized servers as companies ramp up data center capacity. Limiting losses in the S&P 500, shares of the drugmaker Eli Lilly (LLY.N) , opens new tab rallied about 10% after the company forecast 2026 profit above Wall Street expectations. The government's closely watched jobs report for January has been pushed back from its scheduled release on Friday due to a four-day partial government shutdown that ended on Tuesday , opens new tab. In the meantime, the ADP national employment report on Wednesday showed that U.S. private payrolls increased less than expected , opens new tab in January amid job losses in the professional and business services, as well as manufacturing sectors. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 2.6-to-one ratio. The S&P 500 posted 93 new highs and 23 new lows; the Nasdaq recorded 218 new highs and 318 new lows. https://www.reuters.com/business/futures-muted-ai-jitters-batter-software-alphabet-adp-focus-2026-02-04/
2026-02-04 11:07
Venezuelan engineers, scientists, geologists helped develop Canada's oil sands industry Venezuelan oil industry decline coincided with Canada's oil sands growth Reverse migration to Venezuela unlikely despite potential oil industry revival CALGARY, Feb 4 (Reuters) - Professional engineer Luis Cabana couldn't take a walk in downtown Calgary in the mid-2000s without someone he knew calling out to him in Spanish. Office towers in the corporate heart of Canada's oil and gas sector were at the time heavily populated with Venezuelan expats who had fled persecution and economic stagnation in their home country. Sign up here. Wintry and vast, Canada is geographically far from the heat and humidity of Venezuela. But the oil sands of northern Alberta and Venezuela's Orinoco Belt produce a remarkably similar variety of thick, tar-like heavy crude, a fact that over the decades prompted thousands of Venezuela's best and brightest engineers, scientists and geologists to move to cities like Calgary, Edmonton and Fort McMurray. "We were over-represented. I knew another professional at every single company downtown," said Cabana, who came to Canada in 2006 and spent more than a decade in project management positions in Canada's energy sector. These expats helped Canada develop its oil sands and become the world's largest producer of heavy crude, even as Venezuela's own oil production declined. And in spite of U.S. President Donald Trump's stated goal to revive Venezuela's oil industry, many Venezuelans who built careers in Canada say they are unlikely to return to the country of their birth as they have built lives elsewhere. Trump's move to revive Venezuela's oil industry has sparked anxiety in Canada, as an increase in heavy oil supply from Venezuela could displace some of the oil that refiners in the United States buy from Canada. A significant increase in Venezuelan output is unlikely for years, however, because U.S. companies are reluctant to invest in big-ticket, multi-year projects without signs of long-term political stability and a new legal framework with wide endorsement in the South American country. CHAVEZ REGIME, OIL STRIKE PROMPTED EXODUS Reuters spoke to four Venezuelans in Canada, each of whom came to the country during one of several waves of migration starting in the early 2000s. One of the most significant occurred between 2001 and 2010, after the rise of Hugo Chavez's regime, and following a massive strike at state-owned oil company PDVSA and the resulting collapse of the Venezuelan oil industry. Some of the 7,450 Venezuelans who - according to federal statistics - came to Canada during that period had occupied senior roles at PDVSA. Chemist Pedro Pereira, who had been director of PDVSA's technology strategy and was blacklisted by the Venezuelan government after the strike, took a position at the University of Calgary where he led nanotechnology research for oil sands applications. He also recruited dozens of other Venezuelans with expertise in heavy oil to join him. "I ended up producing technology not for Venezuela – which was the country that paid abundantly for the education of all these people – but for Canada," said Pereira, who today runs his own Calgary-based tech company focused on renewable energy. Many other Venezuelans migrated to the oil sands hub of Fort McMurray, a small, northern Alberta city surrounded by boreal forest. "When I got there it was minus 35 (Celsius), and when I left Caracas, it was plus 25, so it was a bit of a shock," said Lino Carrillo, who had worked in heavy oil processing and refining in Venezuela before being recruited by Canada's Suncor Energy in 2004. Venezuela's oil industry decline coincided with the growth of Canada's, as the early part of this century was a period of significant oil sands expansion driven by high oil prices and technological breakthroughs. "People appreciated the Venezuelan knowledge," said Carrillo. "I believe Canada would have accomplished what it did with the development of the oil sands anyway, but what they did was they brought in people with 15, 20 years of experience and that helped shortcut the path." WAVE OF REVERSE MIGRATION UNLIKELY Carrillo, who worked in a number of senior oil sands management positions and is now retired, maintains close ties to Venezuela and even worked directly on the development of opposition party leader Maria Machado's energy platform. Machado, who fled the South American nation in a daring seaborne escape in December, is competing for Trump's ear with members of Venezuela's government and seeking to ensure she has a role in governing the nation going forward. Many expats say even if Venezuela begins to rebuild its oil industry and returns to democracy, a reverse wave of migration from Canada's oil sands back to the Orinoco Belt is unlikely. "Venezuelan expats have lots of conversations about 'will they go back, how can they help their country recover,'" said Pereira. "But it's two generations that have passed now, and the ones that have expertise, most of them are at least 55 years old." https://www.reuters.com/business/energy/venezuelan-expats-who-helped-propel-canada-oil-sands-growth-see-return-home-2026-02-04/
