profits

United States President Donald Trump has lambasted the nation’s biggest oil and gas giants as Houston, Texas-based Chevron reported record earnings while consumers struggle with soaring petrol prices.

“I don’t like it,” Trump told reporters on Monday in reference to the blockbuster second-quarter earnings, as his war on Iran has kept oil prices high for months.

“Chevron, too much money. ExxonMobil, too much. Too much money.”

Trump’s comments came on the heels of an interview Chevron CEO Mike Wirth gave on the Fox News programme Sunday Morning Futures with Maria Bartiromo. Writing on his Truth Social platform, the US president berated Wirth for not crediting his administration’s efforts to help the oil industry.

“The only thing he [Wirth] conveniently forgot to mention is that, without the genius, foresight, strength, and stability of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD!”

Chevron reported its highest quarterly profits in six years on Friday. Adjusted earnings per share came to $6.06, or $12bn, as tensions between the US and Iran strained global oil supply chains in the strategically vital Strait of Hormuz, where roughly one-fifth of the world’s energy supply travelled through before the war, sending prices soaring.

Chevron rewarded its employees. Wirth praised them for their work and said in an email that most workers would receive a bonus equivalent to half their monthly base pay, the Reuters news agency reported, citing an internal email.

Al Jazeera has not been able to independently confirm Reuters’ reporting.

Chevron’s strong earnings come as the company is less reliant on Middle Eastern production operations than its competitors, allowing it to reap the benefits of higher global oil prices during the quarter. Brent crude, the global benchmark for oil prices, was 23 percent higher than in the first three months of the year.

“Being less dependent on the Strait of Hormuz is definitely helping them. It’s also the refining they’re able to do here. The fact that Chevron has less than 5 percent exposure there gives it some protection,” Bill Drolet, executive director, mergers & acquisitions at The Post Oak Group investment bank, told Al Jazeera.

“More than 70 percent of Chevron’s production is concentrated in America, and that’s where it’s making its biggest margins right now.”

Chevron also benefitted from the president’s move to open up oil production in Venezuela after US special forces abducted the country’s president, Nicolas Maduro, in January. Chevron had stayed on in the South American nation even after former President Hugo Chavez nationalised oil production.

Chevron did not respond to Al Jazeera’s request for comment.

Competitors also performed well. ExxonMobil on Friday posted its best quarterly profits in four years, but they fell short of analysts’ expectations. Earnings raked in $9.2bn.

Exxon did not respond to a request for comment.

On Thursday, Valero Energy reported its highest ever second-quarter profit, with net income coming in at $3.7bn as US refiners reap the benefits of tensions choking oil production across the Middle East.

But those benefits have not reached consumers, who are feeling the strain at the petrol pump. Petrol prices are above $4 a gallon (3.78 litres) across the US. The average price for a gallon of petrol is $4.09, down from $4.11 this time last week, but up from $3.82 a month ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.

By comparison, when the US and Israel first struck Iran in late February, the average price was $2.98.

An analysis from Bank of America published in April showed consumers spending as much as 4.2 percent of their income on petrol in March, up from 3.9 percent in 2019. Lower-income earners are hit much harder, with more than 10 percent of households spending more than 10 percent of their monthly income on petrol.

This comes as pressure on the US Strategic Petroleum Reserve continues. The reserves hit their lowest level since 1983 this week, according to the Department of Energy. They fell by 2.8 million barrels over the week to 304.8 million barrels.

Political pushback

The condemnation of the oil industry has come from across the political spectrum.

“A decent industry would say, ‘this was money we didn’t earn, it’s a windfall we get from our cartel pricing scheme.’ Not these corrupt, greedy and grasping rogues,” Democratic Senator Sheldon Whitehouse of Rhode Island wrote in a post on X on Sunday.

But lowering prices might not be as easy. Beyond pressure from consumers, companies across the corporate United States are beholden to a concept called shareholder supremacy. This means that while lowering prices might be in the best interest of pinched consumers, it may not be possible given the legal framework and companies’ fiduciary responsibility to shareholders.

“They’ve [oil companies] got shareholders they’re responsible for. They could reduce share buybacks or dividend payouts, but right now, I don’t see oil companies doing much,” Post Oak Group’s Drolet said.

He said if he were advising a member of Congress or the president, providing relief to consumers might be easiest by suspending the so-called gas tax, which varies by state. In Texas, for example, the gas tax accounts for 20 cents per gallon, while in California, it is 63 cents per gallon.

“From a political standpoint, the best thing our government can do is suspend gas taxes, especially in California. If they put a temporary hold on taxes, that would help everybody get through this challenging time.”

Al Jazeera asked the White House if that policy is on the table, but the press office did not respond.

Heading into the US midterm elections, cost of living remains among the highest concerns for consumers. In a Washington Post/Ipsos poll last month, 54 percent of respondents said that high prices and the economy were a chief concern heading into November.

“They see the price of fuel and net profit for Exxon and Chevron and feel that they are abusing US consumers, especially as US consumers have access to the correct fuel, whereas other areas around the world have shortages [such as Germany, Philippines],” Babak Hafezi, professor of international business at American University, told Al Jazeera.

“The reality is that as the war [On Iran] progresses, the impacts of the lack of supply will create full price and supply shocks.”

Amid Trump’s comments, Chevron’s stock is on the downturn in midday trading, tumbling more than 2 percent from the market open. However, it is up more than 1.1 percent over the last five days.

ExxonMobil is down 0.5 percent for the day and 0.1 percent over the last five days.

SEOUL, July 27 (UPI) — South Korea’s Hana Financial Group said Friday it posted record earnings for the first half of this year, driven by its banking and brokerage businesses.

The Seoul-based financial conglomerate noted its net profit amounted to $1.6 billion during the first six months of 2026, up 4.4% from a year earlier. Its flagship subsidiary, Hana Bank, made the largest contribution, with a bottom line of $1.45 billion.

Non-banking affiliates also delivered robust results. Hana Securities, one of the country’s major brokerages, more than doubled its net income to $186 million year-on-year during the January-June period.

During the third quarter, Hana Financial said it would spend $171 million on share buybacks and cancellations, bringing the annual total to $478 million. It also plans to increase 2026 dividends payments by 26.5% from a year ago.

The company expects overall cash dividends for this year to reach $820 million, up more than 10% from 2025.

Hana Financial CFO Park Jong-moo said that the group would raise its target for return on equity, or ROE, to 12% from the previous goal of 10%. The group’s ROE stood at 10.62% in the first half.

ROE measures how efficiently a company generates profit from the shareholders’ equity. In other words, Hana Financial aims to earn 12 cents of yearly net profit for every dollar of shareholders’ equity.

“We will create a virtuous cycle in which higher ROE leads to greater shareholder returns and enhanced corporate value,” Park told an earnings call. “We have raised our ROE target to 12% and set our shareholder payout ratio at 50% or higher.”

Hana Financial shares rose 1.46% on the Seoul bourse Friday before falling 1.36% Monday.

Reporting from Sacramento — A war between a healthcare union and the dialysis industry it wants to organize has morphed into one of the most expensive ballot measure campaigns in California history.

Proposition 8, sponsored by the Service Employees International Union-United Healthcare Workers, would shrink the profits of hundreds of dialysis clinics across California. If enacted by voters, the measure would require clinics to provide rebates to insurers and pay a penalty to the state on business revenues that exceed 115% of certain costs to deliver care.

A coalition led by DaVita and Fresenius Medical Care, the two companies that control a combined 72% of the dialysis market in California, has given $110 million to a campaign to beat the measure — contributing to the most money raised for such a campaign in state history.

Opponents view Proposition 8 as an existential threat to the dialysis industry and its patients, and say the 95,000-member SEIU-UHW is using the ballot measure to deliver an ultimatum to its foes: Acquiesce to the union’s demands or pay for an expensive campaign.

“Proposition 8 puts California patients at risk in an effort to force unionization of employees,” DaVita Chief Executive Kent Thiry said in a statement. “There is an established and accepted process for employees to vote a union up or down. Instead of following that process, SEIU-UHW is pursuing a dangerous initiative that puts patients at grave risk.”

Thiry’s group warns that dialysis clinics may open for fewer hours, or would shutter altogether if the measure becomes law.

Dave Regan, head of SEIU-UHW, says his union wants to rein in a dialysis industry he says is “predatory.” The union has raised $18.8 million for the Proposition 8 campaign.

DaVita and Fresenius reported billions in operating income last year and have been accused by critics of various tactics to increase profitability, such as steering patients to private insurance or not giving employees enough time to adequately clean stations.

DaVita has been ordered to pay damages and settled lawsuits for more than $1 billion in the last five years, including $253.5 million in damages awarded in June to the families of two patients who died of cardiac arrest after receiving care at its California clinics. The company has said it would appeal that decision.

“The reason Prop. 8 is on the ballot is because they have a terrible business model and they’re gouging patients and insurers,” Regan said.

After years of expensive squabbles in the Capitol, Regan traveled to Denver, home to DaVita headquarters, to meet with Thiry for the first time on the eve of the June deadline to withdraw ballot initiatives this year.

Assemblyman Adam Gray (D-Merced), the leader of a moderate bloc of Democrats in the Legislature, acted as intermediary. Gray said he spent weeks trying to bring the two sides together in hopes of breaking a stalemate and finding common ground.

But the eleventh-hour conversation over dinner came too late to negotiate a cease-fire and call off the proposal.

Regan initially described the visit as a “social meeting” he attended at Gray’s request. He later said the timing was coincidental and he never intended to strike a deal with Thiry to pull Proposition 8 from the ballot.

“Nothing consequential even came up,” Regan said. “Nothing was proposed. There was no kind of an agreement of any sort and it was a social discussion.”

Thiry said it “was definitely not a social meeting,” but declined to elaborate.

Now voters are left to decide the fate of the 80,000 patients who receive dialysis treatment at nearly 600 licensed clinics each month in California, according to figures from the Legislative Analyst’s Office.

SEIU-UHW argues its measure will provide an incentive to dialysis companies so they invest more money into patient care. Under the measure, clinics could keep more of their profits if they increase costs for care.

Kathy Fairbanks, a spokeswoman for the opposition campaign, said the industry believes that voter approval of Proposition 8 would force most clinics in California to operate in the red.

“You can’t keep doing that week after week, month after month, year after year,” she said. “This is going to devastate the clinics in California and, by extension, all the patients.”

An analysis by the Legislative Analyst’s Office, the Legislature’s nonpartisan fiscal advisor, said reducing revenues would make for-profit clinics “less profitable or could even be unprofitable.”

Proposition 8 excludes the salaries of managerial staff and some overhead charges from the cost calculation for patient care, which would further reduce profits.

“This to me is classic labor trying to, not just regulate a business, but affect how they operate,” said Rob Stutzman, a Republican political consultant who is not involved in the Proposition 8 campaign.

Scrutiny of dialysis clinics sparked a legislative proposal to establish staff-to-patient ratios in the industry for the first time. The bill, sponsored by SEIU-UHW, stalled in the state Legislature last year.

Gov. Jerry Brown vetoed another bill this year aimed to halt an alleged dialysis industry practice of encouraging patients to sign up for private insurance and funneling money to nonprofits to help patients pay off premiums. Dialysis corporations make most of their profits off group or individual insurance plans, which are billed much more than Medi-Cal or Medicare for the same services.

“Right now they have every financial incentive to keep staffing and other direct patient services at a bare minimum because then they reap every dollar in profit margin,” Regan said.

SEIU-UHW has a history of turning to the ballot amid labor disputes.

Regan called off a pair of ballot initiatives in 2012 to limit charges for care at private hospitals and require nonprofits to spend at least 5% of revenues on charity care after the California Hospital Assn. agreed to a partnership that could help the union’s organizing efforts.

The partnership soured and the union filed two measures the next year to limit prices for care at private hospitals and executive salaries at nonprofit hospitals.

The union pulled the initiatives back in 2014 as part of a new agreement with the hospitals to campaign together to raise Medi-Cal reimbursement rates in exchange for an easier path to organizing thousands of potential union members, among other provisions.

A Sacramento judge shot down another SEIU-UHW ballot initiative to cap hospital executive pay in 2016. That same year, the union pushed a ballot initiative to increase pay for workers, which helped spark a legislative deal to raise California’s minimum wage.

This year alone, the union filed 11 ballot initiatives in California — seven at the local level and four statewide initiatives. Most of the initiatives failed to qualify or the union abandoned its effort.

One of the local measures would have placed revenue caps on the Watsonville Community Hospital. The union withdrew the initiative after it reached a collective bargaining agreement with the hospital, said Duane Dauner, the former chief executive of the California Hospital Assn. and a leader of the campaigns against the local initiatives. The hospital also agreed to form a committee to monitor and control pricing, said Sean Wherley, a spokesman for SEIU-UHW.

SEIU-UHW also sponsored five local initiatives in cities with Stanford Health Care community clinics. Measure F in Palo Alto and Measure U in Livermore, the only two to appear on the Nov. 6 ballot, would limit the amount of money hospitals can charge for patient care. Stanford claims the union pushed the measures to pressure its hospitals to make it easier to unionize.

Wherley said the union is not organizing at Stanford’s healthcare facilities.

“He thinks initiatives are the solutions to bypass ordinary labor relations activity and tries to literally force the hospitals, doctors, dentists and others into unionization or he will proceed,” Dauner said of Regan.

Gray, the state legislator, pointed to several state policy battles this year, including a ban on soda taxes and a deal on consumer privacy protections, as examples of other special interests using the ballot as leverage.

“I support direct democracy, but I certainly think the initiative process, by everybody, has been used in ways that certainly weren’t intended,” Gray said.

Regan said SEIU-UHW didn’t qualify Proposition 8 to pressure the dialysis industry to strike a deal. He said the union wants to improve healthcare, and ballot initiatives are an effective way to make important policy changes.

He pointed to 17 minimum wage and Medicaid expansion initiatives the union supported in other states since 2016 that he said were not linked to organizing efforts.

“Most of the stuff that we do is in pursuit of the common good, whether it’s the minimum wage or Medicaid expansion,” Regan said. “The dialysis industry should be required to do more than criticize the union because they don’t want to talk about their business models or profits.”

Get the latest California politics news »

taryn.luna@latimes.com

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Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.

The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.

Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.

The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.

In a presentation with analysts, Netflix executives touted global expansion plans.

“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”

Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.

Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.

The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.

By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.

Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.

Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.

“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.

On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”

“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”

The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.

In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.

Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.

As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.

In 2022, Netflix had also faced investor pressure when it reported declining subscribers for the first time in more than a decade. That pushed the company to delve into other areas including advertising, gaming and cracking down on password sharing.

Published on 07/07/2026 – 11:28 GMT+2•Updated
11:34

The South Korean technology giant Samsung said on Tuesday it expects operating profit of about 89.4 trillion won (€51bn) for the April-June quarter, roughly nineteen times the 4.7tr won (€2.7bn) it earned a year earlier and more than it made in the previous three years combined.

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The extraordinary numbers reflect the same force reshaping the memory industry worldwide: the race to build AI data centres has pushed chip prices to record highs.

According to Citi Research, average selling prices for DRAM memory rose 44% quarter on quarter, and NAND flash 53%, as AI demand spilled beyond specialised high-bandwidth memory into the conventional chips that go into phones, servers and PCs, with customers now chasing longer-term supply contracts.

The estimate beat analyst forecasts, but far from celebrating, the market sold.

Samsung shares fell by over 10% before closing nearly 7% lower, dragging rival SK Hynix and the wider Kospi index down with them.

Samsung’s stock has more than doubled this year alone, so a historic quarter was already priced in, and leveraged local ETF products tracking the shares have made them prone to outsized moves.

There was also a blemish in the numbers as revenue of 171tr won (€97.6bn), though up 129% year on year, came in slightly below forecasts.

“We believe the slight revenue miss was largely driven by more moderate DRAM price hikes than expected, which likely spooked investors who are increasingly pricing in structural strength in memory prices,” said Jing Jie Yu, an analyst at Morningstar.

Hanging over everything is durability.

Investors are increasingly asking whether the technology giants bankrolling the AI build-out can sustain their spending without piling up debt against a payoff that remains unproven, the worry behind last week’s chip sell-off across Asia.

Samsung publishes its full results, with a breakdown by division, on 30 July, a report the market will scour for clues about whether the boom is structural or simply another memory cycle nearing its peak.

Additional sources • AP

South Korean technology giant Samsung Electronics says it expects to post a 19-fold jump in its profits, driven by global demand for artificial intelligence (AI) memory chips.

The company forecast that it made 89tn won (£44bn; $58bn) between the start of April and the end of June, marking its third record quarterly operating profits in a row.

Major South Korean firms like Samsung release forecasts of their earnings ahead of official detailed reports to help guide investors.

Samsung’s latest forecast, released on Tuesday ahead of its full results due later in July, comes as demand for semiconductors continues to outstrip supplies – which has pushed up prices.

Samsung said in its preview, known as earnings guidance, that it brought in around 171tn won of sales during the quarter, more than double the amount for the same period last year.

The company’s projected earnings mark one of “the best quarterly performances ever”, which was close to the tech sector record set by Nvidia earlier this year, said industry analyst Marc Einstein from Counterpoint Research.

“This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand,” he added.

Samsung is one of the world’s biggest semiconductor manufacturers, making chips for firms like Nvidia and Google. The shares major tech firms have soared in recent months due to surging demand for chips.

Shares in Samsung have more than doubled in price since the start of this year, while South Korean rival SK Hynix has jumped by more than 200%.

The strong performance of both firms has helped lift the value of South Korea’s benchmark share index, the Kospi, by more than 80% this year.

Johannesburg, South Africa – Mansa Musa, the 14th-century emperor of the Malian Empire, often comes to mind whenever African gold enters the conversation. Renowned for his immense wealth, he is often described as the richest man in history, largely due to the vast gold resources of his empire.

Yet centuries after Mansa Musa’s reign, Africa’s relationship with gold remains paradoxical. The continent possesses some of the world’s richest gold deposits, but much of the wealth generated by the industry continues to be captured elsewhere. According to the United Nations Environment Programme (UNEP), Africa holds about 40 percent of the world’s gold reserves.

Although Africa remains one of the world’s most gold-rich regions, it continues to occupy the lower end of the global value chain. Gold extracted across the continent is largely exported, mainly to the United Kingdom, where it is refined, traded and priced. As a result, the most profitable stages of the industry remain concentrated elsewhere, creating a persistent gap between extraction and value capture.

“Africa’s position reflects structural constraints, including limited refining capacity, capital bottlenecks and historical trade patterns that favour exporting unrefined gold, allowing offshore markets to capture the highest-value margins in refining and trading,” Kate Collett, insights analyst at Africa Practice, told Al Jazeera.

Increasingly, African governments are not only seeking to extract more gold but also to retain greater control over it. That ambition extends beyond mining policy. Across the continent, policymakers are increasingly viewing gold as a strategic financial asset that can strengthen reserves, reduce external vulnerabilities and support greater economic sovereignty.

A shift in global reserves

Gold has re-emerged as a strategic reserve asset in an increasingly fragmented global economy. Unlike fiat currencies, it is widely seen as retaining value during periods of inflation, geopolitical tension and financial uncertainty.

Across the Global South, central banks have increased gold accumulation in recent years as part of efforts to diversify reserves and reduce exposure to external financial systems. This trend is visible in major emerging-market economies, including China, Russia, India and Turkiye, according to data from the World Gold Council.

By accumulating gold, central banks reduce reliance on foreign currencies and hold reserves outside the direct control of any single financial system.

African countries have joined this shift in an effort to strengthen economic stability, build reserve buffers and increase financial sovereignty.

Within Africa, Ghana, one of Africa’s leading gold producers, has increased the proportion of locally produced gold purchased by the central bank under its domestic gold accumulation programme, according to Bank of Ghana reporting and policy communications.

Nigeria has pursued broader reserve diversification strategies, including increased interest in gold as part of efforts to strengthen the composition of its external reserves, according to central bank statements and analysis by international financial institutions, including the International Monetary Fund (IMF) and the World Gold Council.

Tanzania requires approximately 20 percent of gold output from mining companies and traders to be allocated for sale to the central bank under its reserve-building framework, according to Bank of Tanzania regulations. Guinea has tightened licensing and export controls in its mining sector, part of wider efforts to increase state oversight and capture more domestic value.

According to analyst Thea Fourie, head of regional analysis for the Middle East and Africa at S&P Global Market Intelligence, rising gold prices have reinforced these shifts. “This trend aligns with a broader geopolitical shift towards de-dollarisation … including the development of alternative payment systems and increased use of local currencies in trade,” she told Al Jazeera.

For African producers, this changing global financial environment has accelerated the use of gold as a tool of economic sovereignty, analysts say.

Capturing more of the value chain

Across the continent, governments are also trying to retain more value from domestic production by tightening oversight of mining and reshaping how gold moves from extraction to export.

Ghana has expanded its central bank gold purchasing programme. Tanzania has strengthened regulatory control linked to domestic sales and reserve-building requirements, while Guinea has tightened licensing enforcement and export rules aimed at improving domestic processing and value retention.

In Guinea, authorities have also cancelled mining licences deemed unproductive and restricted exports of unprocessed gold in an effort to encourage local refining. Namibia continues to restrict the export of unprocessed minerals, reinforcing efforts to increase domestic value capture.

Artisanal mining, often operating outside formal systems, is increasingly being treated as part of the formal gold economy rather than a parallel informal sector. Governments are seeking to formalise production, reduce smuggling and increase tax and export revenues.

“These programmes can help countries retain more value from their mineral resources by reducing smuggling, formalising artisanal mining and creating incentives for local refining and downstream industries,” Collett said.

But integration remains uneven. Many small-scale miners still operate outside formal channels due to limited access to finance, markets and technical support.

“As commodity prices rise, this gap between legal status and how the sector operates on the ground is widening, with value still flowing outside formal systems,” she added.

Resource nationalism in the Sahel

In the Sahel, military-led governments in Mali and Burkina Faso have pushed further towards state control of mining assets, framing reforms as part of a broader effort to reduce economic dependence on former colonial partners.

Mali’s President Assimi Goita has overseen a restructuring of the mining sector, expanding state involvement and promoting domestic processing capacity. With Russia emerging as a key partner after a break with France, the government is also developing a state-controlled gold refinery in Bamako.

Burkina Faso has increased state participation in mining and sought to expand national gold reserves. Alongside Mali and Niger under the Alliance of Sahel States, it has pursued deeper economic coordination. Plans for closer monetary cooperation have been discussed, though they remain in development.

However, most large-scale mines in the region remain operated by foreign companies due to limited domestic technical capacity.

According to Fourie, of S&P Global Market Intelligence, this shift reflects a broader wave of resource nationalism driven by fiscal pressures and security challenges.

“These governments have also deepened ties with non-Western partners, reshaping longstanding trade and diplomatic relationships,” she said.

But analysts caution that tighter state control can deter investment if regulatory frameworks are unclear or not consistently applied.

“The quest for African resource sovereignty should not be reduced to the Sahel juntas’ spectacular enforcement, with executives locked up in jail, and inflammatory narratives,” Collett said.

A long road to control

Despite growing policy momentum, full control over the gold value chain remains distant. Moving from extraction to refining and pricing within African economies requires sustained investment in infrastructure, skills and industrial capacity.

Building internationally certified refineries and attracting long-term capital will take time, even as governments push for greater oversight.

“When the measures are introduced in an opaque manner, when there is no stakeholder engagement, is when investor confidence starts to slip,” said Beverly Ochieng, senior analyst at Control Risks.

Some governments have managed to balance tighter control with investor confidence by maintaining clearer regulatory engagement and consultation with industry stakeholders.

For now, much of the value generated by African gold continues to flow abroad.

“The experiment with the state mining operators will be one to watch … whether they are able to meet international standards, sell the gold and set prices,” Ochieng said. “And ultimately, at the back of it is whether this government will be stable enough to see through this process.”

Still, many analysts believe the direction of travel is set.

“I think in the long run, we are seeing more African governments taking steps to ensure the entire value chain remains in-country … Maybe in a couple of decades, we might see a sort of gold OPEC emerging from African countries,” she said.

Published on
25/06/2026 – 10:43 GMT+2

Micron, one of only a handful of companies able to make advanced memory chips at scale, said on Wednesday that revenue in the third quarter reached $41.4 billion (€36.5bn), more than four times the $9.3 billion (€8.2bn) it recorded in the same period last year.

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The figure also comfortably beat the roughly $35.7 billion (€31.4bn) analysts had forecast, while profit climbed even more dramatically.

The Idaho-based group posted net income of $28.24 billion (€24.9bn), or $24.67 per share, against less than $2 billion (€1.7bn) a year ago. Adjusted earnings of $25.11 a share sailed past the $20.49 expected.

The market reaction to the impressive results was immediate.

Micron shares rose more than 15% in after-hours trading to around $1,213, leaving the company valued at roughly $1.16 trillion (€1tn).

The stock has now climbed about 700% over the past year, one of the most dramatic re-ratings of any large company through the AI boom, reflecting a fundamental shift in the economics of the AI build-out.

The vast data centres being constructed by hyperscalers such as Amazon, Microsoft, Google and Meta, which have collectively earmarked hundreds of billions of dollars in capital spending this year, depend on enormous quantities of high-bandwidth memory, a specialised chip that sits alongside the processors made by Nvidia and others.

Micron has said its entire 2026 output of these chips is already sold out under fixed-price contracts.

According to CEO Sanjay Mehrotra, the results reflect what he called the strategic value of memory in the AI era.

The company pointed to a series of multi-year customer agreements that it expects to make earnings more durable and predictable, a notable claim in an industry long defined by brutal boom-and-bust cycles.

Margins to rival the biggest names

What has startled analysts most is Micron’s profitability.

The company reported a gross margin of around 85% for the quarter, a level that now rivals or exceeds those of far larger technology names such as Nvidia and Meta, an extraordinary position for a memory maker historically squeezed by volatile chip prices.

The tightness of supply, with new factories not expected to add meaningful output until 2028, has handed producers exceptional pricing power.

Micron’s guidance was more striking still.

The company expects revenue of around $50 billion (€44bn) in the current quarter and adjusted earnings of roughly $31 a share, implying the boom is accelerating rather than fading. It is ramping up investment to match, lifting planned capital spending to about $27 billion (€23.7bn) this fiscal year and signalling a further jump in 2027, management told analysts during the earnings call.

The results offer reassurance to investors betting that AI infrastructure spending remains robust, with Micron’s order book serving as a real-time gauge of that demand.

The open question, as ever in the memory industry, is how long the upswing can last before supply catches up. Even the most bullish observers acknowledge that risk has not completely disappeared.

June 15 (Asia Today) — Salt-damaged farmland once unsuitable for either agriculture or aquaculture has become a source of pension income for residents of islands in southwestern South Korea.

Shinan County in South Jeolla Province operates what it calls a “Sunlight Pension,” sharing part of the profits from solar power projects with local residents. The program is regarded as a social economy model that connects large-scale renewable energy infrastructure with household income and local spending.

The county began distributing the pension on Anjwa and Jara islands in 2021 under a renewable energy profit-sharing program. It has since expanded the program to Jido, Saokdo, Imjado and Bigeumdo.

Under the program, part of the profits generated by solar power projects is distributed to residents through local cooperatives.

South Korea’s Ministry of the Interior and Safety regards the Shinan program as a social economy model that converts local resources into resident income while keeping spending within the community. The program brings residents, local government and private businesses together to ensure that some profits from power generation remain in the region.

The model is also consistent with the national government’s initiative to create “Sunlight Income Villages,” where communities receive income from renewable energy projects.

Shinan County enacted an ordinance in 2018 establishing a system to share profits from renewable energy development with residents. Residents do not directly pay the cost of building the power plants. Instead, resident cooperatives participate in the projects and receive dividends from the resulting revenue.

The dividends are paid through local gift certificates, encouraging recipients to spend the money within Shinan County.

“Existing residents are guaranteed dividend benefits, while benefits for new residents vary according to age to encourage younger people to move here,” a county official said. “New residents age 40 or younger are eligible immediately, without a waiting period.”

The program has produced measurable results.

Renewable energy development dividends generated cumulative revenue of 24.71 billion won, or about $16.1 million, between April 2021 and April 2025. Of that amount, 22.32 billion won, or about $14.6 million, was distributed through the Sunlight Pension.

An additional 2.39 billion won, or about $1.6 million, was distributed as a Sunlight Child Allowance for residents younger than 18.

Of Shinan County’s 16,483 residents, 13,284 are members of participating cooperatives, representing a participation rate of 81%.

The Anjwa Solar City power plant serves as the foundation of Shinan’s Sunlight Pension model.

The facility has a combined generating capacity of 288 megawatts, consisting of a 96-megawatt first phase and a 192-megawatt second phase. The first phase began commercial operations in November 2020, followed by the second phase in January 2023.

Plant officials said the project cost about 560 billion won, or approximately $366 million. It generates annual revenue of between 80 billion won and 85 billion won, or roughly $52.3 million to $55.6 million.

The history of the site is also significant.

The land was originally used for farming but became unsuitable for both agriculture and aquaculture because of salt damage and years of use as fish farms. A 2019 revision to South Korea’s Farmland Act allowed salt-damaged farmland to be used temporarily for other purposes, clearing the way for the solar project.

The land is scheduled to be restored to farmland after the solar facilities cease operations.

Anjwa Solar City is considered a leading example of South Korea’s resident-participation renewable energy profit-sharing system. Large solar projects can generate local opposition when residents receive few tangible benefits, making the profit-sharing structure a central element in securing community acceptance.

The Shinan model, however, may be difficult to reproduce in every region. Large renewable energy projects require several conditions, including government approval, resident consent and access to transmission infrastructure.

Project profitability and local acceptance must also be considered to maintain a stable dividend system.

“The Sunlight Pension was designed to ensure that development profits remain with residents and circulate within the community,” the county official said. “We plan to expand the profit-sharing program beyond solar power to offshore wind and other renewable energy projects.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260615010005065

Published on 03/06/2026 – 11:31 GMT+2•Updated
11:36

The Spanish fashion giant behind Zara, Inditex, posted net income of €1.4 billion in the first quarter, up 5.4% year-on-year and ahead of market expectations.

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Sales rose 5.8% to €8.7bn, or 8.8% at constant exchange rates, ahead of the roughly 8% analysts had anticipated.

Gross profit rose 6.9% to €5.4bn, helped by an improvement in profit margins, meaning the company kept a larger share of revenue as profit. EBITDA, a measure of underlying earnings, increased 7.3% to €2.6bn.

Inditex shares rose more than 5% on Wednesday after the company reported a strong start to the second quarter, with sales increasing 11.5% between 1 May and 1 June, reassuring investors that the Zara owner remains resilient despite signs of weakening consumer spending.

“Inditex continued its strong momentum with its latest results beating first quarter expectations, and also seen a strong start to the second quarter too, as sales grew more or less in line with the rate the company exited with in the previous quarter,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

The revenue jump from one of the world’s largest listed clothing retailers points to solid consumer appetite heading into the summer, despite concerns that a more uncertain economic and geopolitical backdrop could weigh on spending in the months ahead.

Navigating geopolitical risks

The results come as businesses around the world face growing uncertainty over the global economy and concerns that consumers may cut back on spending.

Inditex said its wide-ranging supply chain and flexible transport network had helped it keep products flowing to stores around the world despite recent disruptions.

“Ultimately, Inditex continues to have a resilient business model that can withstand significant economic pressures and currency headwinds,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

Valechha said strong customer demand and the company’s ability to source products close to its key markets had helped it keep collections up to date while limiting the need for discounts. Productivity improvements had also helped protect profitability.

Inditex also said that the current “geopolitical challenges” had an impact on the sales in the Middle East, a region that Barclays estimates accounts for about 5% of its revenue.

The company also warned that ongoing instability in the region could affect its performance in the months ahead.

Inditex faces a number of other challenges, including higher shipping costs and rising prices for raw materials such as cotton and polyester. Currency movements are also expected to weigh on results this year.

Inditex ended the quarter with 5,456 stores and a net cash position of €10.8bn.

The board has proposed a dividend of €1.75 per share for the last fiscal year, comprising an ordinary component of €1.20 and a bonus of €0.55, payable in two instalments in May and November 2026.

Despite the strong start to the year, Inditex left its outlook unchanged. It said it expects sales growth to continue into the second quarter, supported by strong demand for its spring and summer collections and ongoing improvements to its stores and operations.

However, the company said currency fluctuations are likely to reduce sales growth by around 1% over the full year. It also expects to invest about €2.3bn in the business during the current financial year.