India’s market regulator has accused Bank of America of improperly sharing material nonpublic information related to a major block trade in 2024 and of misleading investigators during a subsequent probe, reported Wall Street Journal, citing people familiar with the matter.

The allegations stem from a yearlong investigation by the Securities and Exchange Board of India (SEBI) into a $180 million share sale involving Aditya Birla Sun Life Asset Management Co.

SEBI issued a “show-cause notice” to the Wall Street firm in November, outlining the alleged violations and seeking the bank’s response.

Bank of America is preparing its reply and is expected to seek a financial settlement, potentially running into millions of dollars, without admitting or denying wrongdoing, the report said.

Allegations around information sharing

According to the people familiar with the investigation, SEBI alleges that Bank of America’s deal team shared price-sensitive information internally with employees who were not directly involved in the transaction.

Such information included details about the timing and pricing of the block trade, which regulators classify as material nonpublic information.

The regulator’s notice also alleges that bank employees communicated with certain investors ahead of the transaction.

The Wall Street Journal reported in 2024 that some Bank of America staff had contacted clients before the deal was publicly announced to discuss its terms.

Regulators view such conduct as problematic because it can allow investors to “front-run” trades, positioning themselves to profit from anticipated price movements once the transaction becomes public.

Company records reviewed during the investigation indicated that bankers reached out to investors via WhatsApp, including HDFC Life, Jane Street, and Norges Bank.

Some of those investors told regulators that they had spoken with bank staff before the shares were sold to the market, according to the report.

Claims of misleading regulators

SEBI has also accused Bank of America of providing incomplete or false information when regulators initially inquired about the alleged leak of confidential details.

The bank first told authorities that its processes around the block trade were routine and compliant with market rules, the people said.

However, after conducting its own internal investigation, Bank of America later corrected its statements to SEBI.

The bank turned over additional records showing that individuals outside the core deal team had communicated with investors about the transaction.

The regulator’s notice further alleges that the firm failed to maintain adequate internal controls to prevent the leakage of confidential information related to capital-markets transactions.

Fallout and broader context

Block trades involve the sale of large stakes in listed companies, typically facilitated by banks that briefly take the shares onto their books before distributing them to investors.

While banks are allowed to gauge investor interest ahead of such trades, disclosure rules are strict because large sales can move stock prices.

Sharing nonpublic information ahead of announcements is illegal in India, the United States, and many other jurisdictions.

SEBI has previously sought detailed explanations from banks involved in the Aditya Birla Sun Life AMC transaction.

The probe has already had consequences for Bank of America’s India operations.

Several senior bankers have left the firm since 2024, including a former head of investment banking for India.

The bank has since been working to rebuild its local deal team and last year received regulatory approval to appoint Vikram Sahu as its chief executive officer for India.

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Samsung Electronics expects record, above-consensus earnings for the final quarter of 2025, underscoring the scale of an artificial-intelligence-driven rebound in the global memory-chip market.

The South Korean technology giant said demand linked to AI infrastructure has pushed chip prices sharply higher, restoring its semiconductor business as its main profit engine.

In preliminary results released Thursday, Samsung estimated that operating profit reached about 20 trillion won ($13.81 billion) in the fourth quarter.

The figure more than tripled from a year earlier and exceeded a FactSet-compiled consensus estimate of 17.679 trillion won.

It also surpassed the company’s previous quarterly record of about 17.6 trillion won, set in the third quarter of 2018.

AI fuels a memory chip supercycle

Samsung, the world’s largest maker of memory chips and smartphones, has been a major beneficiary of soaring prices for memory products over the past year.

The surge has been driven by the rapid adoption of artificial intelligence, as technology companies invest billions of dollars in data centers and AI infrastructure.

While Samsung’s profits were once dominated by its smartphone business, semiconductors have again become the company’s largest earnings contributor.

In recent periods, the chip division has accounted for more than half of total profits, reflecting the strength of the current “memory supercycle.”

Quarterly revenue for the October-to-December period is forecast to have climbed 23% from a year earlier to around 93 trillion won, Samsung said.

For the full year 2025, the company projected revenue of about 332.77 trillion won, up 11%, while operating profit was expected to jump 33% to 43.53 trillion won.

Samsung did not provide a detailed breakdown by business segment and is scheduled to release its full quarterly results, including divisional earnings, later this month.

Tight supply and rising prices

Analysts say the earnings surge reflects tight supply conditions across the memory market.

Chipmakers are prioritizing production for AI-related memory used in data centers and accelerators, which has limited availability for chips used in conventional servers, smartphones, and personal computers.

Counterpoint Research said the memory market has entered a “hyper-bull” phase, with current conditions surpassing the peak seen in 2018.

The firm estimates memory prices rose 40% to 50% in the fourth quarter of 2025 and expects similar gains in early 2026, followed by another rise of around 20% in the second quarter.

Nomura analysts expect the memory supercycle to last until 2027, while HSBC analyst Ricky Seo forecasts that the semiconductor uptrend could extend for four to five years.

Stock rally and competitive pressures

Samsung’s shares have reflected that optimism.

The stock more than doubled in 2025 and has risen a further 18% in early 2026.

Over the past 12 months, shares have been up more than 145%, although they traded down in the choppy trading following the earnings guidance.

Despite its strong performance, Samsung continues to trail domestic rival SK Hynix in high-bandwidth memory (HBM) chips, which are critical components in AI processors such as those designed by Nvidia.

Expanding HBM production capacity is expected to be a key focus for Samsung in the coming year.

Samsung is set to release its audited earnings and hold its quarterly earnings call later this month, when investors will look for more details on how long the AI-driven momentum can be sustained.

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Asian markets traded unevenly on Thursday as investors weighed geopolitical risks, mixed signals from the US labour market, and sharp moves in commodities, while corporate earnings optimism was led by Samsung Electronics, which expects record quarterly profits on the back of an AI-driven memory chip boom.

The day’s developments also included escalating US actions on Venezuela’s oil flows, Washington’s decision to withdraw from dozens of international bodies, and fresh details on a major Chinese cyber-espionage campaign targeting US political institutions.

Asian markets and oil prices

Oil prices steadied after a sharp slide earlier in the week, even as broader risk sentiment remained fragile.

US crude rose 0.5% to $56.31 a barrel, while Brent futures gained 0.58% to $60.31.

Prices had fallen on expectations of higher Venezuelan crude output following political upheaval in the country, but some analysts said the market reaction may have been premature.

Daniel Hynes, senior commodity strategist at ANZ, said in a Reuters report that comments by US officials about controlling Venezuela’s oil sales could imply continued sanctions or restrictions in the near term, which would be supportive for prices.

The recovery came after the US seized two Venezuela-linked oil tankers in the Atlantic, including one sailing under a Russian flag, as part of President Donald Trump’s push to exert influence over oil flows in the Americas.

Equity markets in Asia were mixed.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.42%, while Japan’s Nikkei fell 0.74%.

US equity futures also fell with Nasdaq futures declining 0.23% and S&P 500 futures sliding 0.14%.

Investors were also focused on US nonfarm payrolls data due on Friday.

Goldman Sachs expects an above-consensus increase of 70,000 jobs in December, with the unemployment rate seen edging down to 4.5%.

Recent data, including the JOLTS report, suggested a subdued labour market marked by low hiring and low firing, reinforcing expectations of two Federal Reserve rate cuts this year.

Trump pulls US out of UN bodies

In Washington, President Trump ordered the U.S. government to withdraw from 66 international organizations, including 31 United Nations entities and 35 non-UN bodies.

A White House fact sheet said the groups “no longer serve American interests,” directing agencies to cease participation and funding.

The decision extends the administration’s retreat from international climate diplomacy, including exits from the Intergovernmental Panel on Climate Change and the UN Framework Convention on Climate Change, which underpins the Paris Agreement.

Environmental groups warned the move could leave the US sidelined in global climate decision-making and forgo investment opportunities tied to clean energy.

Secretary of State Marco Rubio said the organizations were undermining US sovereignty and offered little in return for taxpayer funding.

The withdrawal comes shortly after the UN approved a 7% budget cut amid a financial crisis worsened by unpaid US dues.

China hacks US congressional email systems

Separately, Financial Times reported that Chinese intelligence agencies hacked email systems used by congressional staff on several powerful House committees, including those focused on China, foreign affairs, intelligence, and armed services.

The intrusions, detected in December, are linked to a cyber-espionage campaign known as “Salt Typhoon,” operated by China’s Ministry of State Security.

According to people familiar with the matter, the campaign has allowed access to unencrypted phone calls, texts, and voicemails of Americans, and in some cases email accounts.

It has also intercepted communications of senior US officials.

Chinese authorities denied the allegations, accusing Washington of spreading disinformation.

Samsung Electronics’ profit estimates

In corporate news, Samsung Electronics said it expects record, above-consensus earnings for the final quarter of 2025, highlighting the strength of an AI-driven rebound in the memory chip market.

The South Korean technology giant estimated an operating profit of about 20 trillion won ($13.81 billion), more than tripling from a year earlier and surpassing its previous record set in 2018.

Quarterly revenue is forecast at around 93 trillion won, up 23%, while full-year 2025 revenue is projected to rise 11% to 332.77 trillion won.

Analysts say tight supply and surging demand for AI-related memory have driven prices sharply higher.

Samsung shares have more than doubled over the past year, though the company continues to trail rival SK Hynix in high-bandwidth memory chips used in AI processors.

Samsung is due to release its full, audited earnings later this month, when investors will seek further clarity on the durability of the AI-led momentum.

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Global copper demand is projected to increase by 50% by 2040, driven by growth in the artificial intelligence and defense sectors. 

However, according to the consultancy S&P Global, annual supplies are expected to face a shortfall of over 10 million metric tons unless recycling and mining efforts are increased.

Copper’s enduring popularity stems from its exceptional physical and chemical properties, making it indispensable across numerous sectors. 

Growing  copper demand and supply challenge

Copper’s status as one of the best conductors of electricity is a primary reason for its extensive use in the electronics and power transmission industries. 

Furthermore, its inherent resistance to corrosion ensures durability and reliability, particularly in infrastructure and construction applications. 

Copper’s malleability and ductility allow it to be easily shaped into wires, sheets, and pipes, which is crucial for manufacturing and transportation.

These combined characteristics solidify copper’s role as a vital material for modern technology and development.

According to Reuters, S&P’s report indicates that while the electric vehicle sector has boosted copper demand in the last decade, the metal’s requirement will surge even higher over the next 14 years. 

This increased demand will be driven by the AI, defense, and robotics industries, in addition to the consistent consumer need for appliances like air conditioners.

Global demand is projected to increase significantly, rising from 28 million metric tons in 2025 to 42 million metric tons annually by 2040, according to the report. 

The S&P report further indicated that, without new supply sources, almost a quarter of this projected demand is likely to go unmet.

“The underlying demand factor here is electrification of the world, and copper is the metal of electrification,” Dan Yergin, S&P’s vice chairman and one of the report’s authors, was quoted in a Reuters report.

AI boosts copper demand

AI is significantly boosting demand for copper, driven by the construction of numerous new data centers. 

Last year alone, over 100 new data center projects were initiated, with an aggregate valuation approaching $61 billion.

This substantial investment highlights copper’s crucial role in supporting the infrastructure for the expanding artificial intelligence sector.

The S&P report also indicated that the conflict in Ukraine, coupled with the initiatives of nations like Japan and Germany to boost their defense expenditures, is expected to stimulate demand for copper.

Copper is an essential component in almost all electronic devices. 

While Chile and Peru are the leading global copper producers through mining, China holds the position as the top copper smelter. The US is significantly reliant on imports, meeting half of its annual copper demand, and has enacted a tariff on certain categories of the metal.

In 2022, S&P released a comparable report forecasting copper demand under a scenario where the world achieves carbon neutrality—or “net zero”—by 2050.

Importantly, the current report excludes any potential supply derived from deep-sea mining.

S&P announced that the report, issued on Thursday, employs a new methodology. This approach forecasts copper demand using a base-case assumption that growth will occur independently of governmental climate policies.

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Germany’s industrial sector showed an unexpected burst of activity in November, offering a more nuanced picture of demand conditions in Europe’s largest economy.

Fresh data released on Thursday pointed to a sharp monthly rise in orders, defying market expectations of a decline.

The headline gain was shaped largely by large-scale contracts, while underlying demand improved at a steadier pace.

The data adds an important layer to recent signals from the manufacturing sector, which has been navigating weak external demand, cost pressures, and uncertainty across global supply chains.

Orders driven by major contracts

According to figures published by the Federal Statistical Office, industrial orders rose by 5.6% in November compared with October on a seasonally and calendar-adjusted basis.

The strong monthly rise was largely attributed to large-scale orders, which tend to be volatile and can significantly influence headline data in a single month.

These types of contracts often relate to sectors such as machinery, transport equipment, or large infrastructure-related manufacturing, where individual deals can be substantial enough to skew short-term trends.

Underlying demand shows modest growth

When large-scale orders are excluded, the data still point to an improvement, though at a more moderate level.

New orders increased by 0.7% in November compared with the previous month, suggesting that underlying demand conditions were firmer than expected.

This adjusted figure is closely watched by economists because it offers a clearer view of broader industrial momentum without the noise created by one-off contracts.

The November reading indicates that, beyond major deals, German manufacturers saw incremental gains in incoming business, reflecting a gradual stabilisation in parts of the sector.

Three-month trend strengthens

Beyond the monthly movements, the less volatile three-month data also showed a strengthening trend.

New orders between September and November were 4.0% higher than in the preceding three-month period, according to the statistics office.

This measure is often used to smooth out short-term fluctuations and provides insight into the direction of industrial demand over a longer horizon.

The rise suggests that, despite ongoing structural challenges, order books have improved compared with late summer, offering some relief after a prolonged period of weakness.

October figures revised higher

The November data release also included an upward revision to October’s figures.

New orders in October rose by 1.6% compared with September, exceeding the provisional estimate of a 1.5% increase previously reported.

Revisions are a routine part of Germany’s industrial data, as more complete information becomes available.

The adjustment reinforces the view that order intake toward the end of the year was somewhat stronger than initially indicated, adding context to the November surge.

Together, the latest figures highlight how Germany’s industrial performance remains sensitive to large contracts, while also showing signs of broader, if measured, improvement in demand across recent months.

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JPMorgan Chase has agreed to take over the Apple credit-card program from Goldman Sachs, marking a significant shift in the US consumer finance landscape and bringing an end to Goldman’s troubled foray into mass-market lending.

Under the deal, JPMorgan will become the new issuer of the Apple Card, one of the largest co-branded credit-card programs in the country, with roughly $20 billion in outstanding balances.

Mastercard will remain the payment network. The transaction, which is subject to regulatory approval, is not expected to close for around two years.

For JPMorgan, the agreement further cements its position as the dominant force in US credit cards.

For Goldman, it represents the final chapter of an experiment in consumer banking that has weighed on earnings and strategy for several years.

A strategic win for JPMorgan and Apple

The deal is expected to bring JPMorgan and Apple closer at a time when payments are increasingly embedded in smartphones, watches and other devices.

JPMorgan gains access to a large, loyal customer base that can be targeted with additional banking products, while Apple secures a partner with a vast consumer franchise to help finance and sell its hardware.

The move also adds to a series of strategic wins for JPMorgan chief executive Jamie Dimon, under whose leadership the bank has built scale across retail banking, cards and investment banking.

JPMorgan expects to book a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to its forward purchase commitment.

Executives have said they are confident the bank’s scale and experience in managing card risk will allow it to absorb and grow the program over time.

JPMorgan will issue Apple Cards to both new and existing customers.

The bank is also reportedly planning to launch a new Apple savings account.

Existing Apple savings customers at Goldman will be given the choice to stay or move their accounts to JPMorgan during the transition period.

Goldman exits at a steep discount

Goldman Sachs is selling the Apple Card loan portfolio at a discount of more than $1 billion, the Wall Street Journal reported, an unusual outcome for a large co-branded card program.

In stronger partnerships, card balances often sell at a premium of up to 8% or more.

The discount reflects the portfolio’s relatively high exposure to subprime borrowers and delinquency rates that have exceeded industry averages, raising concerns about potential credit losses.

Those risks slowed negotiations and contributed to hesitation from JPMorgan and other banks that previously considered a deal.

Goldman said the transaction would result in a one-time boost of 46 cents per share to its fourth-quarter earnings.

The bank expects revenue to be reduced by $2.26 billion due to the deal and portfolio markdown, offset by the release of $2.48 billion previously set aside for loan losses.

A partnership comes full circle

Apple and Goldman launched the Apple Card in 2019, promising a simplified, fee-free credit card integrated into the iPhone.

The card offers up to 3% daily cashback on purchases from Apple and other select partners; 2% from using Apple Pay; and 1% from using the physical card.

While the product attracted users, Goldman struggled with losses and operational challenges in consumer banking.

In 2023, Apple and Goldman confirmed they would end their partnership, and talks between Apple and JPMorgan began the following year as Goldman sought to unwind the relationship.

The announcement comes ahead of a closely watched earnings season.

JPMorgan, the largest US lender, is scheduled to report results on January 13, while Goldman Sachs reports on January 15.

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Shares of Tesco fell more than 5% on Thursday after the UK’s largest supermarket reported like-for-like sales growth that came in below market expectations, overshadowing a solid performance over the crucial Christmas trading period.

The retailer said the group’s like-for-like sales rose 3.1% in its third quarter, while sales over the Christmas period increased 2.4% year on year.

Both figures were below company-compiled consensus estimates of 3.6% and 3.4% respectively, according to RBC.

The miss weighed on investor sentiment despite signs of resilience in food spending.

Growth driven by food and market share gains

Tesco said sales in the 13 weeks to November 22 rose 4%, ahead of the Christmas rush, while festive demand helped lift its share of the UK grocery market.

According to Worldpanel data, Tesco’s market share increased to 28.7% in the three months to December 28 and climbed further to 29.4% during December, its highest level in more than a decade.

Food sales were up 5.2% over the Christmas period, driven by strong demand for fresh produce and party food.

Tesco chief executive Ken Murphy said he was “delighted” with the retailer’s Christmas performance, noting particularly strong growth in the Tesco Finest premium range, where sales jumped 13%.

The company said the robust festive trading meant it remained on track to deliver full-year operating profits at the upper end of its previously upgraded guidance of between £2.9 billion and £3.1 billion.

Tesco had raised its profit outlook in October following a steady first half.

Muted reaction despite festive boost

Despite the upbeat tone on profits, analysts were cautious on the overall results.

Kathleen Brooks, research director at XTB, said the numbers were not a “roaring success” given the shortfall against expectations earlier in the quarter.

She noted that while third-quarter like-for-like sales growth lagged forecasts, the pick-up over Christmas helped protect earnings and market share.

Online sales rose more than 11%, adding to the sense that Tesco remains well positioned despite a challenging consumer environment.

Brooks added that Tesco’s shares had been largely static in recent weeks as investors waited for a clearer catalyst, and that while the update may not excite markets immediately, it could support sentiment over time by showing the grocer can defend profits in a constrained economy.

“Tesco is up against higher expectations, so this light period of growth–and below-par contribution from its Booker segment–will be on investors’ minds,” Richard Hunter, head of markets at Interactive Investor, said.

“Also, the company didn’t increase its adjusted operating profit guidance, which was disappointing for investors,” he added.

Mixed consumer sentiment weighs on outlook

Murphy said UK consumer sentiment remained mixed, with a growing divide between households that were still spending freely and those under significant financial pressure.

“There’s no doubt that consumer sentiment is mixed,” he told reporters, adding that while many shoppers were counting every penny, resilient employment was helping to underpin spending.

He said consumers continued to prioritise food over discretionary items and still found room to enjoy Christmas.

That trend was echoed across the sector.

Marks & Spencer reported a 5.6% rise in underlying food sales over the Christmas quarter, but its clothing, home, and beauty division saw sales fall 2.9%.

Primark owner Associated British Foods said the UK clothing market was “difficult”, while Greggs warned of subdued consumer confidence and guided towards flat profits this year.

December’s solid food sales provided some relief for Britain’s major retailers, but analysts remain wary about the outlook.

Sticky inflation, cautious consumers, and intense competition are expected to continue shaping trading conditions into 2026.

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BT Group share price has remained under pressure, even as the FTSE 100 Index has jumped to a record high. It has dropped by 4% in the last six months, while the Footsie has jumped by 14%. This article explores what to expect this year.

BT Group share price technical analysis 

The daily timeframe chart shows that the BT stock price has pulled back in the past few months. It has dropped from a high of 215p in August last year to the current 179p. 

The stock has moved below the 50-day and 100-day Exponential Moving Averages (EMA). Dropping below these averages is a sign that bears have prevailed.

Most importantly, it has formed an ascending channel whose levels test the key support and resistance levels since November 25. This channel is part of the formation of the bearish flag pattern, a common bearish continuation sign.

It also remains below the Supertrend indicator, one of the most common bearish charts in technical analysis. Therefore, the most likely scenario is where it makes a bearish breakout, with the initial target being at 170.70, its lowest point in November. A drop below that price will point to more downside, potentially to the extreme oversold level at 162.5p.

On the flip side, a move above the upper side of the channel at 187p will invalidate the bearish outlook and point to more gains, potentially to the Major S/R Pivot Point at 200p. 

BT share price chart | Source: TradingView

BT faces major headwinds 

BT Group is making major milestones as the management continues to turn around its business. One of the approaches is to exit its international business, which will help it to refocus on the UK.

BT continued this process this week when it sold a specialized unit serving US federal institutions to 22nd Century Technologies. The deal will help the company focus on the UK and for BT International to operate as an independent unit. 

The company is also cutting costs, a process that will accelerate in the coming years. It has laid off workers, and the management expects that its workforce will be much lower in the future. As a result, costs in the year’s first half dropped by 3% to £8.3 billion.

Additionally, capital expenditure will continue falling over time now that Openreach’s solutions are in most parts of the country. 

On the other hand, BT Group’s finances show that its business is no longer growing as competition rises. Revenue dropped by 3% in the year’s first half because of the ongoing weakness in its legacy business. 

Service revenue in the country fell by 1% as the legacy voice business coincided with the softer retail pricing. The company’s profit before tax also declined by 11% to £862 million. 

City analysts expect that the company’s business to continue slowing down. The average estimate among analysts is that the company’s annual revenue in the FY’26 will be £19.82 billion, down from £20.3 billion a year earlier. They also expect the revenue to drop to £19 billion and £19.6 billion in the next two financial years. 

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Applied Digital stock rose by 7% in premarket trading on Wednesday after the data center operator reported second-quarter revenue that comfortably beat Wall Street expectations, underscoring strong demand for large-scale infrastructure tied to artificial intelligence workloads.

The company said revenue more than tripled year on year in the quarter, while losses narrowed significantly, as it continued to secure long-term lease agreements with major hyperscale customers.

Revenue surge driven by AI infrastructure demand

Applied Digital reported fiscal second-quarter revenue of $126.6 million, far above analysts’ expectations of about $88 million, according to data compiled by LSEG.

The result compares with revenue of $36.16 million in the same period a year earlier, reflecting rapid growth as customers seek capacity for AI training and deployment.

The company posted a net loss of $19.1 million, or 7 cents a share, a sharp improvement from a loss of $139.4 million, or 66 cents a share, in the prior-year quarter.

On an adjusted basis, Applied Digital reported break-even earnings, compared with analyst forecasts for a loss of 16 cents a share.

The earnings update lifted Applied Digital shares by more than 7.3% in premarket trading, with the stock trading at $31.74.

As of the previous close, the shares had surged more than 239% over the past year.

Hyperscaler leases strengthen long-term outlook

Growth has been underpinned by large, long-term leasing agreements with hyperscalers.

Applied Digital recently secured a $5 billion lease with a US-based hyperscaler covering 200 megawatts of capacity at its Polaris Forge 2 campus in North Dakota.

The company said it now has leases with two hyperscalers across its Polaris Forge 1 and 2 campuses in the state.

Combined, these existing agreements are expected to generate approximately $16 billion in lease revenue over their terms, excluding any potential renewal options.

Chief executive Wes Cummins highlighted the strategic advantages of the region, pointing to its cool climate and abundant energy supply.

He said these factors, alongside the company’s experience in delivering technically complex data center projects, position Applied Digital as a competitive provider for hyperscale customers.

Based on current and anticipated lease activity, Applied Digital said it expects to exceed its $1 billion net operating income target within the next five years.

The company added that this outlook is supported by projections for additional hyperscaler customers across new development sites.

Strategic shifts and business restructuring

Alongside its operational expansion, Applied Digital is reshaping its corporate structure as it pivots toward becoming a data center-focused real estate investment trust.

Last month, the company announced plans to spin off its cloud services business and merge it with Ekso Bionics to form a new AI-focused entity called ChronoScale.

Applied Digital said it will retain a 97% ownership stake in ChronoScale following the transaction.

The move is intended to separate the capital-intensive data center business from cloud operations, allowing each unit to pursue distinct growth strategies.

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The difference in price (premium) for immediate delivery of US West Coast jet fuel sold to Asia has expanded to its largest margin in almost two years, according to LSEG data released on Thursday, and quoted in a Reuters report. 

The growing disparity in pricing can be attributed to two key factors affecting global jet fuel markets. 

Dual pressure widens global price gap

Firstly, a decrease in the US supply, primarily stemming from temporary or permanent refinery shutdowns, has tightened the market on the Western side. 

Secondly, a deceleration in demand from China has had the opposite effect in Asia, making a greater volume of jet fuel available within that regional market. 

This dual pressure—reduced supply in the West and increased availability in the East—is the driving force behind the current widening gap in global jet fuel prices.

The Los Angeles jet fuel derivative price for February is approximately $40 per barrel higher than Asia’s benchmark.

Data indicated this level was last observed in mid-February 2024.

Hopes among traders are that the wider theoretical spread in jet fuel prices between the two regions will result in increased shipments from Asia heading toward the US West Coast.

Asia’s jet fuel prices are facing increased downward pressure, partly due to soft demand in China, according to Matias Togni, an analyst at NextBarrel. 

Data from the flight tracking service Airportia indicates a 1.6% reduction in China’s overall flight numbers compared to the same period last year.

US output down on refinery outages and closures

Analysts noted that fuel supplies in the United States are expected to become even tighter due to permanent plant closures, compounding the current reduction in output caused by refinery outages.

The price difference for jet fuel between Asia and the US West Coast has increased. 

This widening spread is primarily due to a reduced supply of jet fuel barrels on the US West Coast, a situation exacerbated by a prolonged shutdown at PBF Energy’s refinery in Martinez, California, Ivan Mathews, Vortexa’s head of APAC analysis, was quoted in the Reuters report.

Additionally, repair work has been ongoing on a jet fuel unit at Chevron’s El Segundo refinery (285,000 barrels per day) since it was damaged by a fire in October.

Jet fuel stocks on the US West Coast were nearing two-month lows, registering 11.19 million barrels as of January 2, according to data from the US Energy Information Administration (EIA). 

Furthermore, EIA data indicated a decline in the region’s refinery utilisation, which fell to 80% for the week ending January 2, down from 85.4% during the corresponding week of the previous year.

Supply is set to tighten further as Valero announced on Wednesday plans to gradually wind down operations at its 145,000 barrels-per-day Benicia refinery in California, starting in February. 

This follows Phillips 66’s decision to close its 139,000-bpd Los Angeles site late last year.

The two plants collectively make up approximately 11% of the US West Coast’s total refining capacity.

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