South Africa Finance Head Cautions Against Rushing New Inflation Goal
'Such decisions should not be taken in haste, without the necessary technical and political engagements that achieve a genuine consensus grounded in a thorough consideration of the social and economic realities,' Enoch Godongwana said in his budget vote speech Tuesday
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Yahoo
36 minutes ago
- Yahoo
How does a weaker dollar impact US vacationers?
The decline in the value of the U.S. dollar this year has made Americans' vacations abroad more expensive than in recent years, which could stretch travelers' budgets more than anticipated. So far in 2025, the U.S. dollar has declined about 10% relative to a basket of popular foreign currencies, according to The Wall Street Journal's U.S. Dollar Index (DXY). The weaker dollar means that Americans' purchasing power overseas is generally lower than it was in the past few years, with vacationers facing relatively higher prices. "Welcome to inflation again," Clint Henderson, managing editor at The Points Guy, told FOX Business. "You're looking at prices being anywhere from 8% to as high as 14% higher across the board, especially in Europe, due to the weakness of the U.S. dollar." Dollar Slides To 3-Year Low On Report Trump Plans To Name Next Fed Chair Early "To put it in perspective, the U.S. dollar has been on a multiyear tear, so we've really benefited the last couple of years – it's just with the way things are now, prices are going to be slightly higher than they have been the past couple of years for Americans traveling to Europe specifically and also Asia, especially Japan," he said. Read On The Fox Business App Henderson noted that those who had already locked in prices months ago may not see the impact in that line item of their travel budget – though the dollar's decline is likely to still be felt in other aspects of travel spending. "Hopefully most folks have already locked in their hotel prices, so they're not going to be paying a lot more for hotels," he added. "But food costs, transportation costs… everything's going up in price." Trump Announces Higher Tariff Rates For More Countries In Letters Published On Social Media One bright spot for travelers' budgets can be found in relatively cheaper flights to and from vacationers' destinations, Henderson noted. "The good news is, I'm calling this the 'summer of savings' when it comes to airfare, because prices are down substantially for airfare, so hopefully any more expense you're paying when you're traveling has been sort of balanced by cheaper airfare," he explained. The dollar's recent downturn comes after it was relatively stronger than foreign currencies in the last few years. Tariffs Will Revert To April Levels If Countries Don't Make A Deal By August 1, Bessent Says David Bahnsen, managing partner and chief investment officer of the Bahnsen Group, told FOX Business that the main reason "is the fact that it had gone up 10% the year before, and in 2025 was just giving that move back." "The DXY right now is basically where it was three years ago – not higher or lower, though it spent most of the last three years higher than it is now, and it spent most of the ten years before that lower than it is now," he said. The volatility and downward trend the dollar has experienced this year stems from uncertainty over trade policy and tariffs, as markets take the higher costs into account. "The specific catalyst besides the fact that it was over-priced relative to other currencies and due for a correction is this trade and tariff volatility. Imports get more expensive with a weaker dollar even as exports get cheaper," Bahnsen article source: How does a weaker dollar impact US vacationers?
Yahoo
2 hours ago
- Yahoo
Ivanhoe Mines: Buy, Sell, or Hold in July 2025?
Written by Brian Paradza, CFA at The Motley Fool Canada Ivanhoe Mines (TSX:IVN) is painting a picture of explosive growth in 2025. Record second-quarter copper output, near-record zinc production, and a massive palladium-nickel-platinum project nearing its grand debut – it sounds like an investor's dream. Yet, the TSX mining stock sits 36% lower this year and trades nearly half off its 2024 peak, appearing potentially undervalued. This stark contrast makes Ivanhoe stock a fascinating, yet complex, puzzle for Canadian investors right now. So, what's the best move for July: buy, sell, or hold? There's no denying Ivanhoe Mines' operational momentum in 2025. The company's July 8th second-quarter (Q2) production report delivered fireworks. Its Kamoa-Kakula complex in the Democratic Republic of Congo (DRC) churned out a record 112,009 tonnes of copper. While output from the flagship Phase 1 and 2 concentrators dipped due to seismic activity at Kakula, the newer Phase 3 concentrator smashed records, operating 30% above its design capacity. Something good is taking shape here. Meanwhile, Ivanhoe's Kipushi zinc mine in the DRC milled a record 153,342 tonnes of ore, producing a near-record 41,788 tonnes of zinc at stellar average grades. A debottlenecking program underway promises even higher output in the second half of 2025. Most noteworthy is the mining company's Platreef project in South Africa, which remains firmly on track for first production during the fourth quarter of this year. Management envisions Platreef becoming the world's largest, lowest-cost producer of platinum-group metals (PGMs), nickel, copper, and gold. Bay Street analysts project Ivanhoe's revenue could skyrocket 10-fold in 2025, from US$40 million last year to over US$400 million, driven by production and sales ramp-ups. The DRC asset's brand-new, on-site copper smelter is scheduled to start heating up in September, with first copper anode production expected in October. This eliminates third-party processing costs and potentially boosts margins. Furthermore, recent copper price surges, fueled partly by trade policy noise (like potential U.S. tariffs), provide a favourable near-term tailwind. However, beneath Ivanhoe Mines's impressive production figures lie significant challenges that explain the stock's weakness. The seismic event at Kakula in May was a major setback, forcing a temporary shift to mining lower-grade areas and impacting Q2 performance. While recovery plans are progressing, the path back to full, high-grade mining is still unfolding. Accessing the richest copper zones on Kakula's western side is only expected towards year-end. Financially, Ivanhoe is still in the investment phase, where business risk is highest. The company has yet to generate a positive gross profit, and cash flow from operations remains negative. A massive US$750 million debt added during the first quarter weighs on its balance sheet. Until Platreef is fully online and Kamoa-Kakula consistently operates at peak capacity post-recovery, Ivanhoe isn't a 'de-risked' mining stock, yet. The mining stock remains highly sensitive to operational hiccups and commodity price swings. Execution risk is ever-present, especially with three major projects advancing simultaneously across different countries. The reliance on 'income from equity investment' prior to 2025, while not detailed in the recent reports, also reminds us that core mining revenue is still relatively new. Ivanhoe Mines stock is a Hold for now. It offers a compelling, high-growth narrative backed by world-class assets with significant potential for exponential revenue growth this year and beyond. Shares could soar if Platreef hits its year-end targets and Kakula recovers fully. However, the current picture is one of transition and lingering risk. The seismic impact, negative cash flow, and significant debt demand respect. The upcoming second-quarter financial results on July 30th are crucial. Investors need to watch cash burn and capital expenditure, and be encouraged by Ivanhoe's path to profitability as the mining business graduates to positive gross profits and works towards cash flow positive operations. Given near-term uncertainties and the proximity of Ivanhoe's earnings date (July 30th), jumping in aggressively right now may feel premature for most investors. The prudent move is to Hold. If you already own Ivanhoe, the long-term potential likely still warrants staying invested. If you've been watching from the sidelines, use the next two weeks to dig into the business's fundamentals and look for signs that operational recovery is accelerating and the financial strain is manageable. Confirmation of progress this month end could make late summer or early fall a more strategic entry point into this high-risk, potentially high-reward mining stock. The story is exciting, but July demands patience before placing your next bet. The post Ivanhoe Mines: Buy, Sell, or Hold in July 2025? appeared first on The Motley Fool Canada. Before you buy stock in Ivanhoe Mines Ltd., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Ivanhoe Mines Ltd. wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
2 hours ago
- Wall Street Journal
U.S. Treasurys Sell Off to End Week Lower
1550 ET – Traders sold Treasury securities Friday, sending yields higher, as a new round of tariff threats from President Trump clouded the outlook for inflation and interest rates. Investors this week parsed the potential effect of the budget legislation Trump signed over the weekend, which many economists expect to boost U.S. deficits in the years to come, potentially elevating the federal debt burden. After last week's relatively solid employment report Thursday, the latest jobless-claims data this week gave more encouraging evidence that the labor market is holding up. Together with more tariffs that threaten price increases, solid economic figures could lean against the Fed's propensity to cut rates. The benchmark 10-year yield finishes the week at 4.424% and the 2-year yield closes at 3.913%. ( @mattgrossman) 0908 ET – A risk-off trend continues, sending Treasury yields higher and keeping them on path for a second consecutive weekly increase. The tariff war goes on, with Trump announcing a 35% levy on imports from Canada starting in August. June U.S. consumer inflation index is due next week and some economists expect an acceleration due to tariffs. The 10-year is at 4.386% and the two-year at 3.888%. ( @ptrevisani)
