Key Takeaways
- Glencore (GLEN) has indicated it emerged "just fine" from copper tariffs and foresees the Chinese coking coal market balancing in the coming months, despite current tightness.
- The UK S&P Global Construction PMI for July plummeted to 44.3, significantly missing estimates of 48.8 and signaling a sharp contraction in the sector.
- Bayer (BAYN) CEO anticipates more job reductions over the next 18 months as part of ongoing restructuring efforts, though no specific new targets were announced.
- Poland's new President, Nawrocki, has affirmed strong support for the nation's most important alliances, including with the United States.
Glencore (GLEN), a leading commodity trader and miner, has provided an update on its market positions, noting that it navigated recent copper tariffs "just fine." This resilience comes amidst a period where the company has been actively managing its commodity exposures.
Looking at the coal market, Glencore's CEO highlighted the current tightness in the Chinese coking coal market. However, the chief executive also expressed an expectation that this market will achieve balance in the coming months, suggesting a potential stabilization in prices and supply dynamics. This outlook is crucial given China's significant role in global commodity demand.
Meanwhile, the United Kingdom's construction sector experienced a notable downturn in July. The S&P Global Construction PMI dropped to 44.3, falling short of both the estimated and previous figure of 48.8. A reading below 50 indicates contraction, signaling a significant slowdown in construction activity across the UK. This marks a continued decline in construction output, with commercial and civil engineering segments seeing accelerated rates of contraction.
In corporate news, German pharmaceutical and life sciences giant Bayer (BAYN) is bracing for further workforce reductions. While the CEO did not specify new job cut targets, he indicated that more reductions are anticipated over the next 18 months. This follows previous restructuring efforts aimed at streamlining operations and reducing bureaucracy within the conglomerate. Bayer has already cut 3,200 jobs since the start of the year, with layoffs expected to continue into 2025.
On the geopolitical front, Poland's new President Nawrocki has emphasized continuity in foreign policy. President Nawrocki stated, "I will support our most important alliances, including the one with the US," underscoring Poland's commitment to its international partnerships. This statement provides reassurance regarding the stability of key diplomatic relationships under the new leadership.
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.