International News 20 August 2025
-
BHP Reports Weakest Annual Profit in Five Years as Iron Ore Prices Slide
BHP Group posted its lowest annual profit since 2020, pressured by weaker iron ore prices and softer Chinese steel demand. Underlying attributable profit for the year ending June 30, 2025, fell 26% to US$10.16 billion, missing Visible Alpha’s consensus of US$10.22 billion. The company declared a final dividend of US$0.60 per share, down from US$0.74 last year, bringing the full-year payout to US$1.10 per share — its lowest since 2017 despite slightly beating estimates. Average iron ore selling prices dropped 19% as global supply from Australia, Brazil, and South Africa expanded, though stronger copper prices provided partial support. CEO Mike Henry emphasized that long-term fundamentals for steelmaking materials, copper, and fertilizer remain resilient amid global economic uncertainty. Reflecting confidence in future demand, BHP raised its net debt target to US$10–20 billion and outlined capital and exploration spending of US$11 billion over the next two years. However, capex is expected to ease to around US$10 billion annually from 2028–2030. The miner continues to streamline operations, recently facing cost overruns of up to US$1.7 billion at its Jansen potash project in Canada, exiting a US$942 million nickel venture in Tanzania, and agreeing to sell copper assets in Brazil worth up to US$465 million.
Gold Holds Steady Ahead of Fed’s Jackson Hole Symposium and Ukraine Peace Talks
Gold prices steadied on Tuesday (Aug 19, 2025) as investors awaited key signals from the Federal Reserve’s annual Jackson Hole Symposium later this week and weighed U.S. efforts to help broker an end to the war in Ukraine. Spot gold inched up 0.2% to US$3,337.06 per ounce at 04:11 GMT, while U.S. gold futures for December delivery rose 0.1% to US$3,380.70. Markets are closely watching Fed Chair Jerome Powell’s speech on Aug 21–23, which could provide clarity on the central bank’s policy outlook. Traders currently assign an 84% chance of a 25-basis-point rate cut at the next Fed meeting, according to CME’s FedWatch tool. Analysts noted gold remains in consolidation mode as it awaits fresh catalysts, with potential dovish signals from the Fed seen as pivotal. Beyond monetary policy, geopolitical factors continue to support safe-haven demand. U.S. President Donald Trump reaffirmed Washington’s commitment to Ukraine’s security in talks with President Volodymyr Zelenskiy and said he had initiated discussions with Russian President Vladimir Putin to arrange a possible peace meeting. Meanwhile, UBS raised its gold price target for March 2026 by US$100 to US$3,600, citing persistent U.S. macroeconomic risks, weakening dollar usage, and strong investment demand.
https://internasional.kontan.co.id/news/harga-emas-stabil-jelang-simposium-jacson-hole-pekan-ini
SoftBank Invests $2 Billion in Intel Amid U.S. Chipmaker’s Struggles
SoftBank Group will invest US$2 billion in Intel Corp, the companies announced on Monday (Aug 18, 2025), marking the latest financial lifeline for the U.S. chipmaker facing mounting business pressures. The Japanese conglomerate will purchase Intel’s common stock at US$23 per share through a new share issuance, giving it less than a 2% stake but making it Intel’s sixth-largest shareholder, according to LSEG data. The move comes as reports surfaced that the U.S. government is considering acquiring up to 10% of Intel, following pressure from President Donald Trump for CEO Lip-Bu Tan to step down over alleged ties to Chinese firms. Intel’s stock jumped 4.6% after news of the potential government stake. SoftBank declined to comment further on its Intel investment, which adds to its aggressive expansion in 2025. Earlier this year, the company committed US$30 billion to OpenAI and led a US$500 billion funding round for Stargate, a mega data center project in the U.S. The Intel deal underscores SoftBank’s strategy of deepening its footprint in advanced technologies while supporting key players in the global semiconductor supply chain.