Category: Market News

Total Graphite (LSE:TGR) has initiated a portfolio optimisation review after completing a significant operational turnaround at its Madagascar business and increasing production capacity at the Vatomina graphite project from 12,000 tonnes to 18,000 tonnes per year.

The review will examine a range of strategic alternatives aimed at accelerating the development of the company’s larger graphite assets in Mozambique and its downstream processing ambitions. Options under consideration include new funding arrangements, strategic partnerships, joint ventures, partial disposals and potential asset sales. Management noted that it has already received an initial expression of interest relating to certain assets within the portfolio.

As part of its growth plans, Total Graphite is updating feasibility studies for the Montepuez and Balama Central projects in Mozambique, together with its proposed anode materials facility in the United States. The work is intended to reflect current market conditions, technology developments and pricing assumptions while supporting the long-term advancement of the company’s approximately 150-million-tonne graphite resource base.

The company has also announced changes to its board structure to strengthen execution capabilities. Chief Financial Officer Thomas Hill has been appointed finance director, while Andrew Wright joins the board as a non-executive director. Christian Dennis has been named interim non-executive chairman following the departures of Mark Rollins and Michael Lynch-Bell.

More about Total Graphite plc

Total Graphite plc is a flake graphite producer and developer focused on building an integrated mine-to-materials supply chain to support energy transition industries worldwide. Its portfolio includes operating and development-stage graphite assets in Madagascar and Mozambique, as well as planned downstream processing facilities and battery anode material projects designed to serve higher-value graphite markets.

Powerhouse Energy Group (LSE:PHE) has become a participant in JUST-CIRCLE, a Horizon Europe Innovation Action programme backed by the European Union and valued at €5.85 million. The project, coordinated by Brunel University’s business school, brings together 14 organisations from nine countries to advance circular economy practices across a range of industries.

The initiative will focus on developing and validating new approaches to sustainability accounting, lifecycle assessment and circular business model innovation. Areas of application include agriculture, waste-to-energy, food services and circular water reuse, with the consortium aiming to create practical frameworks that can be adopted across multiple sectors.

As part of the programme, Powerhouse Energy will contribute its waste-to-energy expertise and operational data to support project activities. The company expects to receive approximately £225,000 under the consortium agreement, with 70% of the project funded through grant support. Management views participation in JUST-CIRCLE as both a high-profile collaboration and an opportunity to influence future sustainability and circular economy methodologies, while further strengthening the group’s position within the European low-carbon and resource recovery landscape.

Despite this strategic development, Powerhouse Energy’s investment outlook remains constrained by weak underlying financial performance. The company continues to report losses, negative cash flow and declining revenues, while technical indicators remain broadly bearish. Although involvement in initiatives such as JUST-CIRCLE demonstrates ongoing commercial and strategic progress, these advances have yet to offset the financial and operational challenges facing the business.

More about Powerhouse Energy

Powerhouse Energy Group is a UK-listed clean energy technology company that develops systems to convert non-recyclable waste streams, including plastics and end-of-life tyres, into syngas. The resulting syngas can be used in the production of hydrogen, electricity, heat, chemical feedstocks and other industrial products. The company’s technology is designed to minimise residual waste and operate on compact sites suitable for local deployment. Powerhouse Energy also owns Engsolve, an engineering consultancy that provides services focused on clean energy solutions and emerging technologies.

Pensana (LSE:PRE) said construction of its $250 million Longonjo rare earth project in Angola has reached 22% completion, with development remaining on schedule and within budget ahead of first mixed rare earth carbonate production targeted for 2027.

The company expects the mine to initially produce 20,000 tonnes of mixed rare earth carbonate annually, with output planned to increase to 40,000 tonnes per year from approximately 2029. Longonjo is projected to operate for more than two decades. Major infrastructure and construction activities, including earthworks, piling, on-site concrete production facilities, and procurement of long-lead equipment such as the sulphuric acid plant and ball mill, are progressing as planned. The project also benefits from access to the Lobito Corridor rail network and connection to Angola’s hydropower-supported electricity grid, supporting lower operating costs and reduced carbon intensity.

Pensana is enhancing its heavy rare earth recovery circuit to increase annual production of dysprosium and terbium to more than 122 tonnes. The upgrade is expected to establish Longonjo as one of the largest Western sources of heavy rare earths while improving revenue prospects through higher-value product streams.

Alongside mine development, the company is advancing plans for a modular separation and metallisation facility as part of its broader mine-to-magnet strategy centred on the United States. The initiative is supported by substantial funding commitments. Pensana has also secured a multi-party offtake framework involving industrial and automotive partners from Japan, the U.S. and Europe, while evaluating a potential NASDAQ listing to broaden access to American capital markets.

Despite operational progress, Pensana continues to face financial challenges. The company remains pre-revenue, losses are widening, free cash flow is negative, and debt levels have increased. While technical indicators suggest improving momentum and trend support, valuation metrics remain constrained by ongoing losses and the lack of dividend payments.

More about Pensana Rare Earths PLC

Pensana Plc is a rare earths development company focused on creating an independent mine-to-magnet supply chain serving magnet manufacturers as well as automotive and industrial customers across the U.S., Europe and Asia. Its flagship asset is the Longonjo rare earth project in Angola, which is designed to produce both light and heavy rare earth elements. The company is supported by strategic investors and a network of offtake partners spanning the global magnet industry.

The remarkable advance in artificial intelligence-linked technology and semiconductor shares may be entering a more vulnerable phase, according to Barclays, which believes investors should prepare for the possibility of a near-term market correction.

The bank notes that semiconductor stocks have risen at an exceptional pace, with the MSCI World Semiconductors index gaining around 50% in just two months. Such a move ranks among the strongest seen in more than two decades and has left positioning increasingly crowded.

Barclays strategists, led by Emmanuel Cau, argue that momentum-driven investors and systematic trading strategies have been key contributors to the rally, but their ability to provide further support may be diminishing as exposure reaches elevated levels.

A busy pipeline of technology IPOs and fundraising transactions is also expected to compete for investor capital, potentially reducing liquidity available for existing stocks.

At the same time, markets face an important test from upcoming central bank decisions. Investors will closely watch the Federal Reserve’s June meeting under new leadership, while the European Central Bank is still expected to pursue tighter monetary policy despite slowing economic growth.

“The combination of frothy technicals and a catalyst-heavy June suggests that the chances of a tactical pullback, especially in the narrow momentum space, cannot be dismissed,” the strategists wrote.

Although Barclays sees increasing short-term risks, it remains optimistic about the broader equity outlook. Strong corporate earnings and long-term investment trends continue to provide support, and the bank stresses that speculative behaviour remains concentrated in a relatively small segment of global markets.

“To be clear, we are not bearish Semis. But given the parabolic price action across the space recently, if it were to take a breather, this would likely play in favour of some rotation into less Tech heavy regions,” the strategists continued.

In the event that semiconductor shares pause their advance, Barclays expects investors to explore opportunities in software, aerospace and defence, as well as consumer sectors tied to discretionary spending such as luxury goods, tourism and leisure activities.

The bank added that any progress toward a U.S.-Iran agreement could further encourage a shift away from crowded AI trades and support markets that have lagged the technology-driven rally.

The worldwide smartphone industry is expected to experience its sharpest annual decline on record, with shipments forecast to fall 13.9% to 1.08 billion units this year, according to updated estimates from Counterpoint Research.

The revised outlook is weaker than the firm’s February projection of a 12.4% decline and reflects increasing pressure from a worsening shortage of memory chips, compounded by disruptions linked to the conflict in Iran.

Entry-Level Devices Bear the Brunt of the Shortage

Budget smartphones are facing the greatest challenges as semiconductor producers redirect manufacturing capacity toward higher-value AI-related components.

This shift has reduced the availability of chips for lower-cost handsets and significantly increased production costs across the segment.

During the first quarter, average smartphone wholesale prices rose 14%, even as global shipments fell 3.1% compared with the same period last year.

Counterpoint expects the imbalance between supply and demand to become more visible as pre-existing inventories are depleted, potentially forcing some smartphones priced below $150 out of the market altogether.

“Smartphone makers in the low and mid-tier are caught between cost increases they cannot absorb and consumers with limited spending power,” said Wang Yang, a principal analyst at Counterpoint, an independent research company that publishes quarterly smartphone shipment data.

“The question is no longer how to grow shipments or market share, but whether to remain in the market at all.”

Manufacturers Have Limited Options to Respond

Wang described the memory chip shortage as the most severe supply disruption the smartphone sector has encountered.

According to the analyst, companies have few practical ways to offset rising component costs, as significant price increases risk hurting demand while product modifications offer limited relief.

As a result, many manufacturers are facing mounting pressure on both margins and volumes.

Premium Brands Continue to Show Resilience

Higher-end smartphone makers have largely weathered the disruption more successfully.

Apple (NASDAQ:AAPL) reported record first-quarter revenue, supported by strong demand for its iPhone 17 family of devices.

Counterpoint expects Apple’s shipment volumes to remain stable in 2026 before growing by around 5% the following year.

The company’s stronger margins and more secure supply arrangements are expected to help it defend pricing and potentially capture additional market share.

Samsung Expected to Hold Up Better Than Rivals

Samsung Electronics (USOTC:SSNHZ) is also forecast to outperform much of the industry.

After maintaining steady shipment volumes during the first quarter, the company is projected to record a full-year decline of just 4%, substantially less severe than the broader market contraction.

Its diversified product lineup and relatively stable supply chain are viewed as key advantages.

Chinese Smartphone Brands Face Significant Headwinds

Brands with greater exposure to the budget segment are expected to encounter more substantial declines.

Counterpoint forecasts a 32% drop in annual shipments for Transsion, reflecting its strong dependence on devices priced below $150.

Meanwhile, Xiaomi and Honor are projected to see shipments decline by 28% and 20%, respectively.

With component shortages persisting and consumers becoming increasingly price sensitive, the smartphone market appears set for one of its most difficult years on record.

The arrival of several high-profile AI-related initial public offerings, including Anthropic, OpenAI and SpaceX (NASDAQ:SPCX), may create temporary challenges for financial markets as investors absorb an unprecedented amount of new equity supply, according to Standard Chartered’s Global Chief Investment Officer for Wealth Solutions, Steve Brice.

Speaking to CNBC on Tuesday, Brice said the market may require time to adjust to the scale of the upcoming listings.

“There’s going to be some digestion challenges of these IPOs coming through the market, and some of the broadening out usually does take place well, but it doesn’t necessarily happen in a totally smooth fashion,” Brice said.

Investor Optimism May Be Tested

Although Brice remains positive on the long-term outlook, he signaled a more measured stance toward markets over the coming months.

“I isn’t ‘super, super bullish at this point.’”

He suggested that a combination of seasonal factors, geopolitical uncertainty and large IPO launches could contribute to periods of weakness.

“We could see some weakness at some point over the summer months, and maybe that would fit into what’s happening in the Middle East as well,” he said.

Market Pullbacks Could Create Long-Term Value

Despite warning about near-term risks, Brice emphasized that any correction should be viewed within a broader investment context.

He said that market declines linked to new share issuance or geopolitical uncertainty could ultimately provide attractive buying opportunities for investors willing to look beyond short-term volatility.

The upcoming listings are expected to test investor appetite as some of the world’s most valuable AI and technology companies seek public-market capital.

Employment Data Could Offer Near-Term Support

Brice said stronger-than-expected U.S. labor market figures could help support sentiment in the near future.

However, he cautioned that any economic resilience may come under pressure if disruptions to global energy flows continue for an extended period.

In particular, he highlighted the importance of developments surrounding the Strait of Hormuz, one of the world’s most critical energy transit routes.

Oil Markets Remain Central to the Outlook

Crude prices have risen sharply amid ongoing tensions between Washington and Tehran, with Iranian ports facing restrictions and shipping through the Strait of Hormuz remaining heavily disrupted.

Brice noted that tightening supply conditions are increasingly affecting a wide range of industrial products beyond oil itself.

“Inventories are being run down at a rapid pace, not just in physical crude, but also across petrochemicals or urea and different inputs into the production cycle around the world,” Brice said.

According to Brice, sustained inventory depletion across key commodities and industrial inputs could eventually become a more significant challenge for global growth, inflation and overall market stability.

UBS urged investors to review and rebalance their holdings following the strong run in global equities, warning that heavy exposure to a small number of U.S. technology giants has increased concentration risk across many portfolios.

The S&P 500 posted a new record close on Friday, bringing its year-to-date gain to more than 10%. Investor sentiment was boosted by reports that Washington and Tehran were nearing a framework deal that could pave the way for the reopening of the Strait of Hormuz.

Globally, the MSCI All Country World Index has advanced 10.9% this year. UBS left unchanged its forecast for the S&P 500 to end the year at 7,900, supported by an expectation of 20% growth in corporate earnings per share.

Although the bank remains constructive on equities, it expects future market performance to become less dependent on mega-cap technology names. UBS believes leadership is likely to broaden, with investors rotating into different sectors and regions while volatility increases as capital flows shift.

To reduce concentration risk, the bank pointed to opportunities in Japan, China, emerging markets, Switzerland, health care and European consumer discretionary shares. UBS also emphasized that artificial intelligence-related investment is increasingly benefiting infrastructure projects, power networks and industrial suppliers in addition to the major technology companies currently in focus.

UBS noted that “the recent bond sell-off has created an opportunity to lock in attractive yields,” particularly in high-quality government debt with short- to intermediate-term maturities. The bank argued that investors may be overestimating the likelihood of tighter monetary policy from major central banks.

Looking ahead, UBS said uncertainty remains around the ultimate winners of the AI boom, warning that “it remains unclear which companies will emerge as leaders in monetizing AI.” As a result, investors could face continued volatility even after a strong earnings season across the sector.

Citi analysts continue to see upside for oil prices after fading expectations for a near-term U.S.-Iran agreement helped Brent crude rebound from recent lows around $91 per barrel.

The recovery in prices comes as geopolitical tensions remain elevated across the Middle East. Recent military actions involving Iran and U.S. forces near the Strait of Hormuz have reinforced concerns that regional stability remains fragile despite ongoing ceasefire efforts.

Talks between Washington and Tehran remain stalled, with negotiators divided over several key issues, including access through the Strait of Hormuz, Iran’s enriched uranium reserves and the role of Lebanon in any broader diplomatic settlement.

While a renewed ceasefire between Israel and Lebanon has eased some immediate concerns and helped prevent a sharper rise in energy prices, Citi believes a comprehensive agreement could still take considerable time to materialize.

Under the bank’s central scenario, shipping activity through the Strait gradually recovers during the third quarter. However, depleted stockpiles and the lengthy process of rebuilding inventories are expected to continue supporting crude prices.

Citi forecasts Brent crude will average $110 per barrel during the third quarter before moderating to $90 in the fourth quarter and eventually easing toward $80 in 2027. The bank also expects the market’s backwardated structure to remain intact.

The bullish view is driven less by total global inventories and more by where those inventories are located. According to Citi, stock levels in several key consuming regions, particularly Asia outside China, have already fallen below historical norms.

“Continued stock draws will take levels to recently unprecedented lows, causing a scramble to pull from better supplied areas, and strong backwardation to persist to replenish low stocks even after Strait reopening,” the analysts wrote.

The bank noted that the physical oil market has so far been supported by two temporary factors: weaker Chinese crude imports and large-scale releases from strategic reserves coordinated by the International Energy Agency.

China’s imports declined by roughly 4.3 million barrels per day between February and May, while emergency stock releases contributed around 3.3 million barrels per day during April and May.

Once those emergency supplies are exhausted, Citi expects tighter market conditions to become increasingly apparent.

Inventories of refined products remain particularly tight. Stocks of diesel, gasoline and fuel oil are already sitting near the lower end of historical ranges, helping maintain strong refinery profitability despite fluctuations in crude prices.

The International Energy Agency recently warned that if current inventory drawdowns continue, global stockpiles could approach critically low levels just as seasonal summer demand reaches its peak.

Goldman Sachs has challenged the argument that poorer nations are no longer catching up with wealthier economies, stating that much of the evidence supporting that view overlooks the importance of population size.

In a report published Monday, the bank said that when economic convergence is measured using population-weighted data, the process has remained a persistent feature of the global economy for more than four decades.

China, India and Other Asian Nations Lead the Trend

The bank pointed to Asia’s largest countries as the primary forces behind global convergence.

China has played a central role since the early 1980s, while India, Indonesia and Bangladesh have become increasingly influential contributors since the late 1990s.

Because these four countries account for more than two-fifths of the world’s population, their sustained economic growth has had a significant effect on global income patterns.

U.S. Growth Remains Unusually Strong

Goldman Sachs also highlighted the performance of the United States among developed economies.

Despite already ranking among the world’s wealthiest nations on a per-capita basis, the U.S. has continued to outperform most advanced economies in terms of GDP per capita growth.

This combination of prosperity and continued expansion makes the American economy an unusual case among developed markets.

Large Emerging Economies Continue to Close the Gap

According to the report, globalization has historically been especially beneficial for smaller economies that rely heavily on external markets.

However, Goldman Sachs found that large emerging economies—particularly those in East Asia—have maintained relatively strong convergence trends even outside periods of peak globalization.

This suggests that structural growth drivers in these countries remain powerful despite shifts in the global economic environment.

Emerging Markets Likely to Increase Their Global Influence

The bank believes the continuation of economic convergence will result in emerging markets accounting for an increasingly larger share of global GDP over time.

East Asian economies are expected to play a particularly important role in that shift, supported by favorable demographics, industrial development and ongoing productivity gains.

Future Convergence Faces Both Opportunities and Risks

Goldman Sachs said several factors could either accelerate or slow the convergence process in coming years.

Artificial intelligence could boost economic performance in countries with strong technological capabilities, including the United States, China, South Korea and Taiwan.

Conversely, a move toward greater protectionism could weaken global economic integration and slow convergence.

The report also highlighted climate change as a potential headwind, particularly for South Asia and parts of Africa, where economies may be more vulnerable to environmental and weather-related disruptions.

Morgan Stanley has outlined an aggressive long-term outlook for SpaceX (NASDAQ:SPCX), projecting that the company’s annual revenue could climb to $3.4 trillion by 2040, according to people familiar with the analysis cited by The Wall Street Journal.

A key component of that growth is expected to come from the company’s expanding artificial intelligence business, which the bank believes will become increasingly important to SpaceX’s overall financial performance.

The projections were reported as SpaceX launched its investor roadshow ahead of a planned $75 billion IPO. If completed as expected, the transaction would set a new record for the largest public offering globally.

Morgan Stanley forecasts that SpaceX’s AI division could generate approximately $190 billion in revenue by 2030. Total company revenue is expected to reach nearly $330 billion by that point.

The company generated $18.67 billion in revenue during 2025, compared with $14.02 billion a year earlier. However, SpaceX reported a net loss of $4.94 billion in 2025 after recording a profit of $791 million in 2024.

Revenue from artificial intelligence operations totaled roughly $3.2 billion last year.

Goldman Sachs has offered an even more optimistic assessment. According to a Financial Times report, the bank expects SpaceX’s AI-related revenue to reach approximately $322 billion by 2030.

Morgan Stanley is among the lead banks managing the IPO, working alongside Goldman Sachs, BofA Securities, Citigroup and J.P. Morgan on the landmark transaction.