|Bid||42.54 x 1800|
|Ask||44.52 x 800|
|Day's Range||42.51 - 42.91|
|52 Week Range||38.04 - 51.87|
|Beta (3Y Monthly)||0.58|
|PE Ratio (TTM)||20.83|
|Forward Dividend & Yield||2.20 (5.12%)|
|1y Target Est||N/A|
Coal is widely used across the globe as a source of electricity. Find out how efforts to use cleaner energy sources are affecting the top coal stocks in 2019.
Engie North America, the Houston-based arm of French utility company Engie, is moving its headquarters from one office complex in the Galleria/Uptown area to another. Engie will move into 109,667 square feet at 1360 Post Oak Blvd. in the Four Oaks Place office complex beginning in December, according to press releases from JLL and Transwestern. The energy company will occupy floors four through nine in the building, which used to be home to BHP Billiton's Houston headquarters.
Total investment in the Ruby Project, in which BHP holds a 68.5% stake, is about $500 million, the miner said in a statement. The remaining interest in the project is held by state-owned Heritage Petroleum and the National Gas Company of Trinidad and Tobago. "Ruby aligns well with our strategy of maximizing value from our existing assets, bringing competitive near term value and volume growth," Geraldine Slattery, BHP President Operations Petroleum said.
Global miner BHP Group said on Thursday it has approved an investment of $283 million to fund the development of an oil and gas project in Trinidad and Tobago. Total investment in the Ruby Project, in which BHP holds a 68.5% stake, is about $500 million, the miner said in a statement. The remaining interest in the project is held by state-owned Heritage Petroleum and the National Gas Company of Trinidad and Tobago.
Australia's Stanmore Coal on Wednesday said it had received a takeover proposal from privately held Winfield Energy valuing the coal miner at up to A$435 million ($292 million). Privately held Winfield Group has boosted its coal exposure this year, buying a 12.5-percent stake in Queensland's Rolleston thermal coal mine from Japanese trading house Itochu in February, which gives it access to 2 million tonnes a year of thermal coal.
Investing in large-cap energy titans can add value and diversity to your portfolio. Luckily, the stock market is packed full of big energy companies that pay top dividends and regularly outperform.
(Bloomberg) -- Raw materials are reeling after President Donald Trump threatened new tariffs on Chinese goods, dashing hopes that the two sides might soon negotiate an end to the trade war that’s sapping global growth and demand for commodities.The Bloomberg Commodity Spot Index fell 2.5% Thursday, the biggest one-day drop in more than a year, before most markets began to stabilize Friday. Thursday’s fall was led by oil’s biggest sell-off in four years. Hog and soybean futures also fell as Trump questioned Chinese promises to purchase more U.S. farm goods. Among metals, copper in London extended losses into Friday, while mining equities including Glencore Plc and BHP Group Plc slumped.Commodities have been held hostage to trade-war fluctuations over the past year as the two top economies slug it out. Trump escalated his fight with Beijing Thursday, saying 10% levies will now be imposed Sept. 1 on $300 billion of Chinese goods after a round of talks Wednesday ended without a breakthrough. The sell-off in energy and building goods indicates investors see an end to the truce Trump struck with President Xi Jinping in June.“We’ve been bearish on the expectation that the situation would continue to deteriorate,” Vivienne Lloyd, an industrial metals analyst at Macquarie, said by phone from London. “It’s become clear that there are structural difficulties in achieving a deal, because some of the American demands just run counter to the spirit of China.”Some of the Trump-inspired swings began to reverse themselves by Friday. Gold, which had risen to a six-year high on a renewed for havens, began to retreat, with spot prices losing as much as 1%. Brent crude bounced back, while still heading for a 2.4% weekly loss.As hopes for a deal fade, investors are left focusing on a contraction in manufacturing and heavy industry across many major economies. Copper -- with its close links to shifts in economic growth -- could have a few hundred dollars left to fall if it breaks below resistance levels at around $5,800 a ton that have held throughout the trade war, Lloyd said. It traded at $5,810 a ton in London on Friday.“In terms of the impact on metals, we see it as a spectrum, with copper at the worst end of it, given its sensitivity to macro conditions,” Lloyd said. “At the other end would be the bulk commodities, which are typically traded by people who are much closer to the underlying physical markets. The distinction between the two is going to be key."To contact the reporters on this story: Dan Murtaugh in Singapore at firstname.lastname@example.org;Mark Burton in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has today downgraded Petra Diamonds Limited's (Petra) corporate family rating (CFR) to B3 from B2 and its probability of default rating (PDR) to B3-PD from B2-PD. Moody's has also affirmed the B3 rating on the $650 million senior secured notes due in May 2022 issued by Petra Diamonds US$ Treasury Plc, a wholly owned subsidiary of Petra.
(Bloomberg) -- One of this year’s best-performing stock markets has just hit a fresh record.Australia’s S&P/ASX 200 Index reached its highest level, having added about $240 billion in value this year as investors cheered a dovish central bank, a surprise federal election victory by the incumbent center-right government and skyrocketing iron ore prices.The gauge rose as much as 0.7% to 6,875.5 in early trading on Tuesday, pushing past its all-time high from November 2007.Anticipation that the Federal Reserve will cut interest rates this week, renewed U.S.-China trade talks and “reasonable” U.S. corporate earnings results added to momentum that’s been building in the benchmark over the last month, said Eleanor Creagh, a Sydney-based strategist at Saxo Capital Markets.“The ASX has really looked determined to breach and set fresh record highs,” she said.Up and OverThe decision by central banks around the world to pull back on interest rate hikes sparked a global equities rally amid bets that accommodative policies could bolster earnings. The Reserve Bank of Australia came out with back-to-back interest rate reductions in June and July, the first changes in policy since September 2016.The coalition’s shock election win in May triggered a relief rally with the finance sector rising 12% as investors rejoiced that the opposition Labor Party wouldn’t be able to curtail tax breaks for property and stock-market investors. Health-care stocks advanced as the outcome thwarted plans to cap the amount they can raise premiums.Skyrocketing iron ore prices also propelled the index higher. Benchmark prices for the steelmaking ingredient hit their highest in over five years, boosting miners including Rio Tinto Group, BHP Group Ltd. and Fortescue Metals Group Ltd. But the good times might be over for the material -- analysts expect prices to ease after this year’s enormous gains.Best and WorstCommunications services has been the best-performing sector this year. Technology was the next best, with the WAAAX stocks surging as investors seek exposure to the global rally that has sent U.S. tech equities soaring since 2017, followed by the miner-heavy materials.The energy sector, which has advanced 14% this year, was the worst performer on the ASX 200, followed by utilities.Magellan Financial Group Ltd. has been the top individual performer on the index, more than doubling in value amid a sustained surge in inflows. Produce company Costa Group Holdings Ltd. was the worst performer after cutting its guidance twice so far this year.Where to Now?Analysts disagree on where Aussie stocks will go after this year’s jump, with Citigroup Inc. and Morgan Stanley Wealth Management cheering the surge, and Goldman Sachs Group Inc. downgrading the market to underweight.Investors are piling into equities, and paying higher prices for them, at a time when cash is set to yield very little and interest rates are likely to remain low for quite some time, Creagh said.“It’s not something that’s going to be sustainable as a longer-term picture,” she said. “Deteriorating growth and the lackluster corporate earnings outlook is ignored at current equity prices.”High valuations going into the August earnings season have the potential to stymie the rally, said Karl Goody, a private wealth adviser at Shaw and Partners Ltd. in Sydney.“I’m really struggling with earnings season at the moment because I don’t think we’re getting the news which is needed to support the current multiples,” he said. “But, in saying that, every day the market just goes higher.”(Updates with comments throughout.)\--With assistance from Abhishek Vishnoi.To contact the reporter on this story: Jackie Edwards in Sydney at email@example.comTo contact the editors responsible for this story: Lianting Tu at firstname.lastname@example.org, Tim SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- In 1986, Arthur C. Clarke’s “July 20, 2019: Life in the 21st Century” was published. Now, exactly half a century since man first landed on the moon, Clarke’s book has turned out to be fairly prescient. For the moon landing’s 50th anniversary, Rebecca Jones of Car and Driver magazine published a thoughtful examination of Clarke’s many transport-related predictions, one of which was far off the mark. “For 2019’s low, low prices of $70,000, with easy credit terms, a new car will offer a lot,” Clarke predicted. Today, according to Edmunds, the average transaction price for a new car in the U.S. is actually about half what Clarke expected: $37,342. So how did Clarke, a noted futurist and scientific visionary, manage to be so wrong? There are two ways, via inflation figures, to look at Clarke’s assumed “low, low price of $70,000” for a new car in 2019. The first is to use the actual inflation rate when Clarke was writing(2), apply it to every year since, and see what a new car would cost in 2019 by that calculation. According to the Houston Chronicle, the average new car cost $11,838 in 1985. Applying 1985’s actual inflation rate of 3.8% per year until 2019 gives a car cost of $42,071, 14% above 2019’s actual cost of $37,028. The second is to determine what inflation rate would be necessary to turn the $11,838 cost of a car in 1985 dollars into a $70,000 car in 2019 dollars. That inflation rate is 5.9% per year — higher than the actual rate in 1985. That 1985 rate of 5.9% is high by today’s standards, but it probably was not outside expectations in the early 1980s. Annual inflation peaked at 13.3% in 1979, and even as that rate plunged to 3.9% by 1984, we can forgive an author — even of science fiction — for thinking that serious inflation might return. In 1986, the trailing 10-year average inflation rate was 6.4%; the trailing five-year inflation rate was 3.3%. The inflation rate needed to arrive at an average price of $70,000 in 2019 was less than what the country had experienced, on average, in the 10 years prior to Clarke’s writing. It’s not just that inflation faded significantly as Clarke was writing. Cars themselves became a different element of the U.S. consumption basket. The U.S. Bureau of Labor Statistics has helpfully created an entire consumer price index for new cars. Compare it to the overall urban consumers’ CPI, and we see something significant. For decades, cars were above the CPI trend line relative to its 1982-1984 baseline; since 1987, cars have been below the general trend line and have hardly moved at all since the mid-1990s. At the same time that cars have decoupled from the rest of the urban consumer price index, their quality has also improved significantly. It’s something I wrote about last year, in comparing two small coupes with dedicated fan bases, one from the early 1980s and one from today. Today’s car is more powerful, faster, more comfortable, has a better entertainment system and is much safer — for relatively less money — than it was in Clarke’s time. Clarke makes one final supposition about a 2019 car: that it’ll be purchased “with easy credit terms.” On that, he was not wrong. U.S. Federal Reserve data on new car loans show that rates peaked at more than 17% in 1982. Rates are currently 5.35%, after bottoming out in November 2015 at 4%. As Liz McCormick wrote this week in Bloomberg Businessweek, a decade of low interest rates is changing everything. Weekend readingA prototype of Ford’s electric F-150 pickup towed more than 1.25 million pounds of rail cars and cargo. In defiance of the White House, four major automakers have reached a compromise with California regulators and will increase the fuel efficiency of their fleets through 2026. Was the automotive era a terrible mistake? Amtrak will launch a nonstop Acela service between New York and Washington. At 2 hours, 35 minutes, it will be five minutes slower than the fastest Metroliner service traveling the same route in 1969. BHP Group Ltd. Chief Executive Officer Andrew Mackenzie lays out the case for evolving the company’s approach to climate change. Ratings agency Moody’s has purchased a controlling stake in California-based climate risk measurement firm Four Twenty Seven. Leonid Bershidsky says that Moody’s buy “could signify the beginning of a major shift in how markets price risk related to climate change.” Tracy Alloway on how “addbacks and debt financing to engineer artificial growth in a sluggish economic environment is actually representative of the entire market.” Hipcamp has raised $25 million, led by Andreessen Horowitz, “to fulfill our mission to get more people outside.” The Human Brain Project hasn’t lived up to its promise. Profile of Raj Chetty, the economist who would fix the American dream. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.(1) I’m assuming that his book, published in mid-1986, was being written a year earlier in 1985.To contact the author of this story: Nathaniel Bullard at email@example.comTo contact the editor responsible for this story: Brooke Sample at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
At least three institutional investors in Australia are pushing for global miner BHP Group to consider external candidates to replace Andrew Mackenzie as new CEO, sources with direct knowledge of the matter said. The move highlights nascent investor pressure on the world's biggest miner to consider drastic changes in management to tackle challenges such as cutting costs, an eventual return to lower iron ore prices, and rebuilding its reputation after a Brazil dam disaster. "We are quite firmly of the view that it needs to be an external candidate ... We just don't see anybody internally that could make a material improvement to the status quo," one of the three institutional investor sources said.
China consumes more than 70% of seaborne-traded iron ore. As a result, iron ore investors should track China's demand and outlook. Today, China released its trade data for June. China's iron ore imports were 75.18 million tons in June—9.7% lower YoY (year-over-year) and 10.2% lower month-over-month. In June, China's imports fell to the lowest level […]
The gold rally was primarily driven by three macro factors -- a dovish Fed and other major central banks, trade-related conflict across the world and fears of a global economic slowdown.