Author: Consultant

  • Oil giant Shell reports soaring first-quarter profits, raises dividend

    Oil giant Shell reports soaring first-quarter profits, raises dividend

    • Shell’s results follow soaring profits seen across the oil and gas industry, even as many energy majors incur costly write-downs from exiting Russia.
    • U.K. rival BP on Tuesday announced plans to boost share buybacks after first-quarter net profit jumped to its highest level in more than a decade.
    • Shell reported a sharp upswing in full-year profit in 2021 on rebounding oil and gas prices, with CEO Ben van Beurden hailing it as a “momentous year” for the company.
  • Magna Announces First Quarter 2022 Results

    Magna Announces First Quarter 2022 Results

    • Global light vehicle production was down 7%, largely due to 16% decrease in Europe
    • Sales of $9.6 billion decreased 5%
    • Diluted earnings per share and adjusted diluted earnings per share decreased 40% and 31%, respectively
    • Reduced 2022 outlook to reflect expected lower light vehicle production assumptions and an increase in production input costs

    https://www.globenewswire.com/news-release/2022/04/29/2432296/0/en/Magna-Announces-First-Quarter-2022-Results.html

  • Dow rallies 900 points as investors bet the Fed can slow inflation without causing a recession

    Dow rallies 900 points as investors bet the Fed can slow inflation without causing a recession

    Stocks jumped sharply on Wednesday in a relief rally from their 2022 doldrums after the Federal Reserve raised rates by a widely anticipated half percentage point and Chairman Jerome Powell ruled out getting even more aggressive in the central bank’s inflation-fighting campaign.

    The Dow Jones Industrial Average rose 932.27 points, or 2.81%, to close at 34,061.06. The S&P 500 gained 2.99% to 4,300.17. The tech-heavy Nasdaq Composite jumped 3.19% to 12,964.86. It was the biggest gain since 2020 for both the S&P 500 and the Dow.

    CNBC

    The central bank announced that it was hiking its benchmark interest rate 50-basis-points, or 0.5 percentage point, and would start reducing its balance sheet in June. That is the biggest rate increase since 2000 for the Fed, but the move was widely expected by investors.

    Stocks moved sharply higher when Powell said the central bank was not considering an even more aggressive hike in future meetings.

    “So a 75-basis-point increase is not something that committee is actively considering,” Powell said. “I think expectations are that we’ll start to see inflation, you know, flattening out.”

    That statement helped take some of the fear out of the market, said Kim Forrest, founder of Bokeh Capital.

    ″“I think taking that off the table … was wise and is probably cause for some of the relief,” Forrest said.

    The rate hike and rally follow a brutal April for stocks, which dragged the Nasdaq into bear market territory. The S&P 500 entered Wednesday more than 13% below its record high. Both of those indexes hit their lowest levels of the year earlier this week.

    Former Goldman Sachs President Gary Cohn told CNBC’s “Closing Bell” that Powell “drove it right down the middle of the road” during his news conference.

    “I think the market is starting to say, ‘OK. We’ve got this pretty well priced in.’ I don’t think there’s a lot of surprises out there. We’ve taken a lot of the fluff out of the market. We’ve taken a lot of the hot air out of the market. … We’ve now got some real value,” Cohn said.

    Powell said he believed the Fed could slow economic growth without causing a jump in unemployment, citing the high number of job vacancies and strong household balance sheets.

    “I would say we have a good chance to have a soft, or soft-ish, landing,” Powell said.

  • Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation

    Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation

    • The Federal Reserve increased its benchmark interest rate by half a percentage point, in line with market expectations.
    • In addition, the central bank outlined a program in which it eventually will reduce its bond holdings by $95 billion a month.
    • The rate move is the largest since 2000 and is in response to burgeoning inflation pressures.
    • Fed Chairman Jerome Powell underlined the commitment to bringing inflation down but indicated that raising rates by 75 basis points at a time “is not something the committee is actively considering.”
  • The Fed is expected to raise rates by a half point. Investors wonder if it will get more aggressive

    The Fed is expected to raise rates by a half point. Investors wonder if it will get more aggressive

    • The Federal Reserve is expected to raise interest rates Wednesday for the second time since 2018, boosting the fed funds target rate by a half-percentage point.
    • The central bank is also expected to launch a program to reduce its massive bond holdings by $95 billion a month, starting in June.
    • The markets are braced for a hawkish Fed, but many investors are wondering if Fed Chair Jerome Powell will signal that the central bank is willing to get even tougher with rate increases.

    The Federal Reserve is widely expected to raise its fed funds target rate by a half-percentage point Wednesday, but investors will be more focused on whether it signals it could get even tougher with future rate hikes.

    The Fed also is expected to announce the start of a program to wind down its roughly $9 trillion balance sheet by $95 billion a month, starting in June. The 50-basis-point hike would put the fed funds target rate range at 0.75% to 1%. A basis point equals 0.01%.

    That target rate after this week’s boost would be well off zero, but way below market expectations for a funds rate above 2.8% by year-end.

  • As Iran-Taliban tensions rise, Afghan migrants in tinderbox

    TEHRAN, Iran (AP) — The Taliban members who killed her activist husband offered Zahra Husseini a deal: Marry one of us, and you’ll be safe.

    Husseini, 31, decided to flee. Through swaths of lawless flatlands she and her two small children trekked by foot, motorcycle and truck until reaching Iran.

    As Afghanistan plunged into economic crisis after the United States withdrew troops and the Taliban seized power, the 960-kilometer (572-mile) long border with Iran became a lifeline for Afghans who piled into smugglers’ pickups in desperate search of money and work.

    But in recent weeks the desert crossing, long a dangerous corner of the world, has become a growing source of tension as an estimated 5,000 Afghans traverse it each day and the neighbors — erstwhile enemies that trade fuel, share water and have a tortured history — navigate an increasingly charged relationship.

    In past weeks, skirmishes erupted between Taliban and Iranian border guards. Afghans in three cities rallied against Iran. Demonstrators hurled stones and set fires outside an Iranian Consulate. A fatal stabbing spree, allegedly by an Afghan migrant, at Iran’s holiest shrine sent shockwaves through the country.AFGHANISTANAs Iran-Taliban tensions rise, Afghan migrants in tinderboxCombat death puts spotlight on Americans fighting in UkraineBiden seeks $33B for Ukraine, signaling long-term commitmentPowerful explosion at Kabul mosque kills at least 10 people

    Political analysts say even as both nations do not want an escalation, long-smoldering hostilities risk spiraling out of control.

    “You have one of the world’s worst-simmering refugee crises just chugging along on a daily pace and historical enmity,” said Andrew Watkins, senior Afghanistan expert at the United States Institute of Peace. “Earthquakes will happen.”

    The perils are personal for Afghans slipping across the border like Husseini. Since the Taliban takeover, Iran has escalated its deportations of Afghan migrants, according to the U.N. migration agency, warning that its sanctions-hit economy cannot handle the influx.

    In the first three months of this year, Iran’s deportations jumped 60% each month, said Ashley Carl, deputy chief of the agency’s Afghanistan mission. Many of the 251,000 returned from Iran this year bear the wounds and scars of the arduous trip, he said, surviving car accidents, gunshots and other travails.

    Roshangol Hakimi, a 35-year-old who fled to Iran after the Taliban takeover, said smugglers held her and her 9-year-old daughter hostage over a week until her relatives paid ransom.

    “They would feed us with polluted water and hard, stale bread,” she said. “We were dying.”

    The lucky ones land in the jumble of Tehran, squeezing into dank and crowded alleyways. Iran estimates at least a million Afghans have sought refuge in the country over the last eight months.

    Like many, Husseini lives in legal limbo, vulnerable to harassment and exploitation. Her boss at the tailor’s shop refuses to pay her salary. Her landlord threatens to kick her out. She can barely cobble together enough cash to feed her children.

    “We have nothing and nowhere to go,” she said from a cramped room in southern Tehran, furnished with just a donated gas heater, chairs and a few velour blankets.

    As more Afghans arrive, helping them gets harder. Iranian Foreign Ministry spokesman Saeed Khatibzadeh lamented last month that “waves of displaced Afghans cannot continue to Iran” because Iran’s “capacities are limited.” Iran’s youth unemployment hovers over 23%. Iran’s currency, the rial, has shriveled to less than 50% of its value since 2018.

    “The biggest challenge is that Iran is not ready for the new situation of refugees,” Tehran-based political analyst Rea Ghobeishavi said of the increasing friction between Afghans and Iranians.

    Iran has grown more anxious as a string of bloody attacks in Afghanistan targeting the country’s minority Hazara Shiites makes clear that extremist threats proliferate despite Taliban promises to provide security.

    “There are reports that some extremists are entering Iran easily with refugees,” said Abbas Husseini, a prominent Afghan journalist in Tehran, describing mounting paranoia in Iran.

    Last month, Iran’s most sacred Shiite shrine in the northeastern city of Mashhad turned into a scene of carnage when an assailant stabbed three clerics, killing two — a rare act of violence at the compound. The attacker was identified in media as an Afghan national of Uzbek ethnicity.

    In the following days, a surge of videos agitating against Afghan refugees flooded Iranian social media. Impossible to authenticate, the grainy clips — footage showing Iranians insulting and beating up Afghans — have been dismissed as misleading in Iran but in Afghanistan have dominated headlines, stoking public fury.

    Demonstrators attacked the Iranian Consulate in the western city of Herat with stones and protested at Iran’s Embassy in Kabul. “Stop killing Afghans,” pleaded protesters in the Afghan capital. “Death to Iran,” chanted crowds in Herat and the southeastern Khost province. Iran suspended all of its diplomatic missions in Afghanistan for 10 days.

    Even as the gate of its consulate smoldered, Iran’s special envoy for Afghanistan deflected. Hassan Kazemi Qomi blamed the escalating tensions on a vague “enemy” seeking to subvert the nations’ relations. Afghan Foreign Minister Amir Khan Muttaqi raised his concerns with the Iranian ambassador.

    “The ill-treatment of Afghan refugees in Iran adversely affects relations between the two countries … allowing antagonists to conspire,” Muttaqi was quoted as saying.

    His careful tone betrays a troubled history.

    In 1998, Iran nearly went to war against the Taliban after 10 of its diplomats were killed when their consulate was stormed in the northern city of Mazar-e-Sharif. But after the U.S.-led invasion, Tehran’s Shiite leaders grew wary of the American military presence on their doorstep and took a more pragmatic stance toward the Sunni militant group.

    Now, analysts say, with both nations severed from the global banking system and starved for cash, they have come to depend on each other. Neither wants to see tensions mount further.

    “Through neighbors, Iran can sanctions-bust, exchange currency, barter and keep its economy alive,” said Sanam Vakil, deputy director of Chatham House’s Middle East and North Africa Program.

    But the neighbors nearly came to blows last week when Taliban guards tried to pave a new road across the border. Iranian guards went on high alert. The vital crossing closed.

    Aware of the stakes, the countries are vigorously pursuing diplomacy. Last week, Khatibzadeh promised Tehran would accredit Taliban diplomats for the first time to help process the mountains of consular cases. Taliban officials visited the capital to discuss Iran’s treatment of Afghan refugees.

    Many of those refugees fleeing Afghanistan’s repression and destitution harbor humble dreams: of scraping by as construction laborers, factory workers and farmhands in Iran.

    Others, like Hakimi’s 9-year-old daughter Yasmin, hope to continue on to Europe. She fantasizes about Germany. Her father, a police officer killed by the Taliban in Logar province, instilled in her the importance of an education, she said.

    “We don’t want to have a bad future,” Yasmin said from her dilapidated Tehran apartment. “We want to become literate people, like my father.”

  • EU energy ministers meet to discuss Russian gas, sanctions

    EU energy ministers meet to discuss Russian gas, sanctions

    European Union energy ministers will meet Monday to discuss Russia’s decision to cut gas supplies to Bulgaria and Poland, and debate planned new sanctions over Moscow’s war on Ukraine.

    The 27 nation-bloc has imposed five rounds of sanctions on Russian officials, oligarchs, banks, companies and other organizations since Russian troops invaded Ukraine in February.

    The European Commission is working on a sixth round of measures which could include oil restrictions, but Russia-dependent countries like Hungary and Slovakia are wary of taking tough action.

    Germany believes it could cope if supplies of Russian oil were cut off due to an embargo or action by Moscow. Economy Minister Robert Habeck said that Russian oil now accounts for 12% of total imports, down from 35% before the war, and most of it goes to the Schwedt refinery near Berlin.

    Habeck acknowledged that losing those supplies could result in a “bumpy” situation for the capital and surrounding region, with price hikes and shortages, but that wouldn’t result in Germany “slipping into an oil crisis.”

    Still, Habeck added, “other countries aren’t so far yet and I think that needs to be respected.”RUSSIA-UKRAINE WARLive updates l Finland ends deal for Russian nuclear plantEU energy ministers meet to discuss Russian gas, sanctionsUkraine city awaits 1st evacuees from Mariupol steel plantFigure skating body details proposal to hike age limit to 17

    The commission, the EU’s executive branch, could announce it new sanction proposals later this week. The measures would have to be approved by the member countries – a process that can take several days.

    The energy ministers will also look at what steps to take should Russia ramp up its pressure by cutting gas supplies to other countries.

    The EU imports around 40% of the gas it consumes from Russia, but some member countries are more heavily dependent on Russian supplies than others.

    In a move last week branded in Europe as “blackmail,” Russian energy giant Gazprom cut supplies to Bulgaria and Poland. It came after Russian President Vladimir Putin said that “unfriendly” countries must start paying for gas in rubles, Russia’s currency.

    Bulgaria and Poland have refused to do so, like most EU countries. More Gazprom bills are due on May 20, and the bloc is wary that Russia might turn off more taps then. Russia rejects the claims of blackmail and says that Bulgaria and Poland missed their payment deadlines.

    The commission has warned that companies which comply with the terms of Putin’s decree insisting that companies convert euros to rubles through two accounts at Gazprombank would contravene the bloc’s sanctions.

    Despite the pressure, Europe does have some leverage in the dispute since it pays Russia $400 million a day for gas, a huge dent in Moscow’s coffers should it opt for a complete cutoff.

    Off the Dutch North Sea coast, meanwhile, a fuel tanker stood idle at anchor after port workers in Amsterdam said they would not unload its cargo of Russian diesel. The Marshall Islands-flagged Sunny Liger was initially scheduled to unload in Sweden, but dockers there refused to carry out the work.

    Dutch port employees who are members of the FNV dockers’ union say they also refused to unload the tanker out of solidarity with their Swedish colleagues. Union spokeswoman Asmae Hajjari told NOS Radio 1 over the weekend that “the ship is not welcome.”

  • Asia-Pacific stocks lower as data show Chinese factory activity contracted in April

    Asia-Pacific stocks lower as data show Chinese factory activity contracted in April

    • Asia-Pacific stocks slipped on Monday.
    • Chinese economic data released over the weekend showed a contraction in April factory activity.
    • Markets in Hong Kong, mainland China, Singapore and Taiwan were closed on Monday for a holiday.
  • Finland has walked a political tightrope between Moscow and the West for decades. But that could be about to end

    Finland has walked a political tightrope between Moscow and the West for decades. But that could be about to end

    Finland could be about to announce that it’s joining the military alliance NATO — in what would mark a dramatic U-turn for its foreign policy and potentially anger Russian President Vladimir Putin.

    The Nordic nation shares a 808-mile land border with Russia and has carefully walked a foreign policy tightrope between Moscow and the West for many decades. Finland adopted a neutrality policy during the Cold War, meaning it would avoid confrontation with Russia. And in the early stages of World War II, the Finns successfully repelled a Soviet invasion in what became known as the “Winter War.”

    But its long-standing neutrality, cherished by many Finns, could be about to end due to Russia’s unprovoked invasion of Ukraine.

    Jacob Kirkegaard, a senior fellow at the German Marshall Fund of the United States, told CNBC that Finland’s accession to NATO would put an end to the idea of “forced neutrality between East and West.”

    “This highlights how Russia’s atrocious actions in Ukraine have forced previous neutral countries to commit fully to NATO in the ‘you are either fully with us, or we will not protect you’,” he said.

    Russia has repeatedly stated that it’s against any enlargement of NATO, which was one of the reasons given by the Kremlin for its invasion of Ukraine. Volodymyr Zelenskyy, the president of Ukraine, had been vocal about his desire to join the alliance before the invasion, but has since conceded that it’s now unlikely.

    Public opinion

    So far, NATO nations (with 30 members in total) have supported Ukraine with military equipment, but they have refused to send troops as this would effectively put Russia and the West at war. One of the guiding principles of NATO is that an attack on one member is considered an attack on all of them.

    “I won’t give any kind of timetable when we will make our decisions, but I think it will happen quite fast,” Finland’s Prime Minister Sanna Marin said last week, adding that her country’s NATO membership would be decided “within weeks.”

    Opinion polls show that since Russia’s invasion of Ukraine on Feb. 24, a majority of Finns are now in favor of joining NATO. Former Finnish Prime Minister Alexander Stubb said Thursday that “definitely” Finland would be applying for NATO membership in mid-May. Finland’s position on NATO is a direct result of Ukraine war, says NATO chief

    NATO would likely benefit from Finland’s geographical location and military capabilities. Its secretary general, Jens Stoltenberg, has already said the country would be warmly welcomed.

    Risks

    But, at the same time, Helsinki is also aware of the risks in joining the alliance.

    In a report to the Finnish Parliament in mid-April, the country’s Foreign Ministry said: “If Finland applied for NATO membership, it should be prepared for extensive efforts to exercise influence and risks that are difficult to anticipate, such as increasing tensions on the border between Finland and Russia.”

    Russia has said that it would have to “rebalance the situation” if Finland’s NATO membership were to go ahead.

    Perhaps, even more importantly, Finland’s bid to join NATO could also push Sweden to do the same.

    Speaking earlier this week, alongside her Finnish counterpart, Sweden’s Prime Minister Magdalena Andersson said her country was doing the same analysis as Finland.

    “Finnish entry into NATO will see also traditionally more reluctant Sweden join at the same time. This ends several centuries of neutrality for Sweden and adds to NATO a major military power and arms producer,” Kirkegaard also said.