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Argaam
a day ago
- Business
- Argaam
Oil prices climb as Brent tops $77
Oil prices rose on Thursday after Israel struck Iranian nuclear sites and both sides continued exchanging missile fire, while markets watched for any US decision on formally entering the conflict. Brent crude futures for August delivery climbed 1.15%, or 89 cents, to $77.59 a barrel by 02:44 p.m. Mecca time. US West Texas Intermediate (WTI) crude for July delivery also gained 1.52%, or $1.14, to $76.28 per barrel. Goldman Sachs said in a note on Wednesday that the geopolitical risk premium is currently estimated at around $10 per barrel, driven by reduced Iranian supply and the possibility of wider disruptions that could push Brent prices above $90. RBC Capital Markets analyst Helima Croft told Reuters that any perception of an existential threat in Iran could increase the risk of attacks on oil tankers and energy infrastructure, particularly if the US intervenes militarily.
CNBC
2 days ago
- Business
- CNBC
Here's how Wall Street is reacting to the Fed's updated rate cut outlook
Wednesday's Federal Reserve update kept intact a key interest rate projection that Wall Street was looking for, but it also raised concern about deeper structural problems for the U.S. economy. The official forecast from Fed officials still pointed to two interest rate cuts in 2025. But Fed officials also lowered the outlook for economic growth and raised the inflation forecast — sparking concern from some experts about potential stagflation in the U.S. economy, when sluggish growth is accompanied by stubborn price increases. Fed Chair Jerome Powell also cautioned against reading too much into the so-called "dot plot" of interest rate cuts in his press conference. A key worry would be that inflation stays above the Fed's 2% target, possibly because of tariffs, and makes it difficult for the central bank to cut rates even if unemployment starts to rise. "We expect the Fed to cut later this year, but look at the balance of shifts in these forecasts: we're going from stagflation-light to maybe stagflation-moderate," Frances Donald, RBC Capital Markets Chief economist, said on CNBC's " Power Lunch ." However, others seemed encouraged by the fact that there was still support for two rate cuts this year. "This is a dovish hold that keeps the door open to rate cuts in the second half of 2025. The Fed is clearly signaling that it is not in a rush, but is prepared to act if inflation continues to ease and labor market softness deepens," said Dan Siluk, head of global short duration & liquidity and portfolio manager at Janus Henderson Investors. "The upward revision to inflation forecasts may temper expectations for aggressive easing, but the unchanged 2025 rate path reassures markets that the Fed remains flexible." Here are other reactions from investors and Wall Street experts: David Kelly, chief global strategist at JPMorgan Asset Management, on "Power Lunch:" "I think they could hold rates all the way until the end of the year. ... Right now, do not hold your breath waiting for low rates from the Federal Reserve, because they don't seem to have any intention of delivering them." Jim Caron, chief investment officer of Morgan Stanley Investment Management's portfolio solutions group, on "Power Lunch:" "What the Fed is basically saying is that the risks to inflation are skewed to the upside. The risk to unemployment is also skewed to the upside. This is what I think is somewhat being confused as a stagflationary event for markets. This is really about a risk distribution. ... We're moving towards a no-rate cut environment going forward" Bill Adams, chief economist for Comerica Bank: "The Fed doesn't have great tools to combat stagflationary shocks like tariff hikes or Mideast oil supply disruptions." Richard Flynn, managing director at Charles Schwab UK: "The larger story here is that there is a clear misalignment between political expectations and monetary policy objectives, as the Fed continues to maintain a wait-and-see approach to gauge the downstream impact of tariffs on the broader economy before taking action." Jamie Cox, managing partner for Harris Financial Group: "The Fed continues to overplay the inflation story and isn't paying attention to burgeoning demand weakness. While the dot plot forecasts 3 rate cuts through 2026, the more likely scenario is 3 rate cuts by the end of 2025." Loretta Mester, former Cleveland Fed president and adjunct professor at the Wharton School, on "Power Lunch:" "Even though they may look through the price increases that come from tariffs, there's no compelling reason for them to make a change now in the policy rate, with the economy performing pretty well, and they're still uncertain about the second half. So I think they made the right move today by doing nothing with the funds rate." Simon Dangoor, head of fixed income macro strategies at Goldman Sachs Asset Management: "Today's FOMC meeting had a dovish tone with the dot plot continuing to signal two cuts this year despite upward revisions to members' near-term inflation forecasts. Implicitly FOMC members continue to expect stronger near-term inflation to prove largely transitory and their tolerance to upward moves in unemployment remains low. We expect the Fed to remain on hold at next month's meeting but think a path could open up to a resumption of its easing cycle later this year should the labor market weaken." Jerry Tempelman, VP of fixed income research at Mutual of America Capital Management: "Even though the Fed's median projection is still for short-term interest rates to be lower by half a percentage point by year-end, the skew of the 19 FOMC participants around that median projection is more hawkish than it was in March. As many as seven participants now project no change in short-term rates by year-end; in March only four participants were projecting no change." Scott Welch, CIO at Certuity: "The Fed is supposed to be independent, it's supposed to be data-dependent, and if you look at things that they're supposed to focus on — which is the labor market and inflation — there's just no reason for them to have cut today. The employment situation is cooling, for sure ... but nothing problematic just yet." Jason Pride, chief of investment strategy and research at Glenmede: "While the public line from Fed officials has so far stressed a patient approach, investors might soon expect to hear more diversity of opinion regarding the path for rates, especially as incoming data allow for more informed theses for the economic outlook." — CNBC's Sarah Min contributed reporting.
Bloomberg
2 days ago
- Business
- Bloomberg
Trump Weighs Iran Options as Israel Ratchets Up Airstrikes
President Donald Trump met with his national security team in Washington for more than an hour on Tuesday to discuss the escalating Middle East conflict, according to people familiar with the matter, fueling fresh speculation that the US is on the verge of joining Israel's attack on Iran. Trump spoke with Israeli Prime Minister Benjamin Netanyahu following the meeting, according to a White House official, as speculation swirled around how the US president might proceed. White House officials declined to comment or issue a statement following its conclusion. Today's guests: Ursula Marchioni, BlackRock, EMEA Head of Investment and Portfolio Solutions, Elsa Lignos, RBC Capital Markets Global Head of FX Strategy, Ole Sloth Hansen, Saxo Bank Commodity Strategy Head (Source: Bloomberg)
Yahoo
3 days ago
- Business
- Yahoo
ARC RESOURCES LTD. ANNOUNCES THE CLOSING OF ITS OFFERING OF SENIOR UNSECURED NOTES
CALGARY, AB, June 17, 2025 /CNW/ - (TSX: ARX) ARC Resources Ltd. ("ARC" or the "Company") announced today it has closed its offering of C$1.0 billion aggregate principal amount of senior unsecured notes (the "Offering"), consisting of C$550 million aggregate principal amount of 3.577% Senior Unsecured Notes, Series 3 due 2028 (the "Series 3 Notes") and C$450 million aggregate principal amount of 4.409% Senior Unsecured Notes, Series 4 due 2032 (the "Series 4 Notes", together with the Series 3 Notes, the "Notes"). DBRS Morningstar has assigned a rating of BBB with a Stable trend to the Notes. ARC intends to use the net proceeds of the Offering, together with the previously announced committed term loan and drawings under ARC's existing credit facilities, to purchase the Kakwa Assets from Strathcona Resources Ltd. pursuant to the definitive agreement announced on May 14, 2025 (the "Transaction"), and the balance remaining, if any, will be used for general corporate purposes. The Transaction is expected to close in early July of 2025. The Notes are direct, senior unsecured obligations of ARC and rank equally and pari passu with all other existing and future unsecured and unsubordinated indebtedness of the Company. The Notes were offered through a syndicate of agents co-led by RBC Capital Markets, CIBC Capital Markets, TD Securities, and Scotiabank. Credit Ratings Credit ratings are intended to provide investors with an independent measure of credit quality of an issue of securities. Credit ratings are not recommendations to purchase, hold, or sell securities and do not address the market price or suitability of a specific security for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant. Forward-looking Information and Statements This news release contains forward-looking information as defined under applicable securities legislation. Forward-looking information involves substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "intend", "believe", "should", "anticipate", or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking information. Forward-looking information reflects the Company's expectations, estimates and predictions only. Actual events or results may differ materially. In particular, this news release contains forward-looking information with respect to the intended use of proceeds of the Offering and the expected timing for closing of the Transaction. There can be no assurance that the plans, intentions, or expectations upon which forward-looking information is based will occur. With respect to forward-looking information contained in this news release, ARC has made various assumptions including that: the Transaction will close within the timelines contemplated; any regulatory approval required will be obtained within expected timelines; the conditions precedent to the agreement for the Transaction will be met; and counterparties to definitive agreements, including for the Transaction, will comply with their contractual obligations. Although the forward-looking information contained in this news release is based upon assumptions which management believes to be reasonable, ARC cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is subject to numerous risks and uncertainties including: potential delays with respect to the closing of the Transaction and changes to laws and regulations. This forward-looking information is made as of the date of this news release and ARC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results, or otherwise, other than as required by applicable securities laws. About ARC ARC Resources Ltd. is a pure-play Montney producer and one of Canada's largest dividend-paying energy companies, featuring low-cost operations. ARC's investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC's common shares trade on the Toronto Stock Exchange under the symbol ARX. Please visit ARC's website at or contact Investor Relations: E-mail: IR@ (403) 503-8600Fax: (403) 509-6427Toll Free: 1-888-272-4900ARC Resources 1500, 308 - 4 Avenue SWCalgary, AB T2P 0H7 SOURCE ARC Resources Ltd. View original content to download multimedia: 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
3 days ago
- Business
- Yahoo
Canadian copper miner Ivanhoe's slumping stock slashed by analysts
Canadian copper producer Ivanhoe Mines ( may face a long recovery in the Democratic Republic of Congo (DRC), where underground seismic activity and severe flooding at its Kakula mine recently halted work for 20 days. That's the chief concern among analysts cutting their price targets on the stock in response to weaker 2025 production guidance from the company last week. Toronto-listed Ivanhoe shares have not recovered from a nearly 20 per cent slump following the Vancouver-headquartered company's announcement on May 20 that mining operations were temporarily suspended at its Kakula underground mine two days earlier. Ivanhoe says it restarted the western portion of the copper mine on June 7, and now expects between 370,000 and 420,000 tonnes of copper from its Kamoa-Kakula Copper Complex this year. That's down from previous guidance of between 520,000 and 580,000 tonnes. 'This is a big setback. However, we believe the mine can recover and we should get more clarity on the long-term impact within the next six to nine months,' RBC Capital Markets analyst Sam Crittenden wrote in a note to clients on Monday. He cut his price target on TSX-listed Ivanhoe shares to $15 from $24. 'We believe the shares are already reflecting a lot of the downside risk, so we keep our Outperform, speculative risk rating,' Crittenden added. On Friday, BMO Capital Markets analyst Andrew Mikitchook called the restart of operations at Kakula an 'important step.' However, he lowered his price target on the stock to $21 from $24, citing challenges ahead for the Canadian miner. 'In our opinion, there will clearly be some impact on the pace of mining the highest-grade mineralization in the medium to long term,' Mikitchook wrote in a research report. The Kamoa-Kakula Copper Complex is Africa's largest copper-producing operation. Majority ownership is split between Ivanhoe and China's Zijin Mining, at 39.6 per cent each. The DRC government holds a 20 per cent stake. Ivanhoe shares fell 1.68 per cent to $10.52 as at 11:41 a.m. ET on Tuesday. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. 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
