Key Takeaways
- BHP (BHP) reported a 30% jump in annual underlying profit to $13.2 billion, driven by record copper prices and a strategic shift that saw the metal contribute 54% of group earnings for the first time.
- A commercial vessel was struck by an unknown projectile in the Strait of Hormuz, causing engine room damage and a crew casualty, further straining global energy supply routes as transit volume remains at historic lows.
- Google (GOOGL) plans to exit China-based manufacturing for Pixel products by 2027, moving production to Vietnam and India to mitigate supply-chain risks amid heightening U.S.-China trade tensions.
- Billionaire investors are reshuffling Chinese tech holdings, with Stanley Druckenmiller and David Tepper increasing stakes in Baidu (BIDU) to capitalize on the artificial intelligence boom while exiting other major internet players.
BHP's Copper Pivot Pays Off
Mining giant BHP (BHP) announced a robust 30% increase in underlying attributable profit for the 2026 fiscal year, reaching $13.2 billion. The result was underpinned by a 35% surge in realized copper prices, which allowed the metal to surpass iron ore as the company's primary earnings driver.
The company declared a final dividend of 99 cents per share, bringing the full-year payout to 172 cents, its highest in four years. CEO Brandon Craig highlighted the "engine room" performance of the copper division, which generated $18.2 billion in underlying EBITDA, even as production volumes saw a slight 3% decline.
Maritime Security Crisis in the Strait of Hormuz
The United Kingdom Maritime Trade Operations (UKMTO) reported that a vessel transiting outbound through the Strait of Hormuz was struck by an unknown projectile early Tuesday. The attack resulted in engine room damage and at least one crew casualty, with the Omani Coast Guard providing emergency assistance to the remaining crew.
This incident occurs as shipping through the strategic waterway remains severely depressed, with daily crossings falling from over 130 to single digits following regional conflicts. Market analysts expect the strike to add a fresh risk premium to Brent and WTI crude, as well as significantly higher insurance costs for maritime operators.
Tech Supply Chains and AI Reallocation
Google (GOOGL) has reportedly informed suppliers of its intent to move all manufacturing for Pixel smartphones, watches, and earbuds out of China by 2027. The move follows successful high-end production trials in Vietnam and reflects a broader industry trend of diversifying manufacturing hubs to avoid geopolitical exposure.
In the equity markets, 13F filings revealed that prominent U.S. investors are becoming highly selective with Chinese technology. Stanley Druckenmiller’s Duquesne Family Office initiated a $10.1 million position in Baidu (BIDU), while David Tepper’s Appaloosa Management nearly doubled its stake in the AI-focused firm to $148 million, even as he slashed holdings in Alibaba and JD.com.
Energy Policy and Market Ratings
China has unveiled its 15th Five-Year Plan for the oil and gas sector, targeting a 5% increase in domestic supply by 2030. The plan emphasizes energy security through the development of deep-water reservoirs and coal-to-liquid technologies, aiming to stabilize annual crude production at 200 million tonnes.
In analyst action, Argenx (ARGX) received multiple price target hikes following strong Q2 results, with RBC raising its target to $1,100 and Truist Securities moving to $1,095. Meanwhile, JPMorgan upgraded Swedish real estate portal Hemnet (HEM) to Overweight, sharply raising its price target to SEK 126 from SEK 81.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.