Copper and conflict trigger profit surge for Buffett-backed Japanese commodity traders

{"text":[[{"start":9.16,"text":"Four of Japan’s biggest commodity traders reported record profits on Wednesday on the back of energy market turmoil triggered by the Iran war and surging copper prices, as their chief executives remained on edge about the Middle East."}],[{"start":22.68,"text":"Katsuya Nakanishi of Mitsubishi Corporation warned of the potential for the Middle East conflict to drag on and push oil prices higher because of uncertainty about Donald Trump’s diplomatic strategy after the Democrats regained control of Congress in the midterm elections."}],[{"start":39.28,"text":"“Developments in foreign policy and geopolitics could have an impact, potentially prolonging the situation in the Middle East. And if resource prices rise as a result, there’s also a possibility that this could fuel further inflation,” he said."}],[{"start":52.64,"text":"Trump told the FT on Wednesday that the US had no immediate plans to attack Iran. The president played down speculation that he was preparing to escalate the conflict with the Islamic republic in response to pressure from Israel after the election."}],[{"start":66.36,"text":"Oil traders and analysts fear that Trump’s policymaking could become even more unpredictable after the Republican rout."}],[{"start":73.28,"text":"“The clean sweep raises more questions than answers, the most fundamental of which is whether Donald Trump will become a lame duck for the next two years or an angry duck,” said Tamas Varga, analyst at PVM Oil Associates."}],[{"start":86.04,"text":"Concern about US policy uncertainty was echoed by Mitsui & Co chief executive Kenichi Hori, who said that it was preparing for a world in which geopolitical risks “continue to be unpredictable rather than calming down”."}],[{"start":99.08,"text":"Mitsui said the Middle East conflict would boost annual profits by ¥40bn ($253mn) after a record first half as its global network of oil, gas and chemicals assets helped capture higher commodity prices and meet stronger demand."}],[{"start":114,"text":"Mitsui added that there would be “further upside expected” in the following year for its liquefied natural gas business, with higher volumes of fuel expected to be traded."}],[{"start":122.64,"text":"Mitsui, Marubeni and Itochu all said they achieved record first-half profits, while Mitsubishi Corporation said it was on track to achieve a record high for annual profitability."}],[{"start":null,"text":"

"}],[{"start":132.8,"text":"The bumper profits at Japan’s biggest trading houses, in which Berkshire Hathaway is the biggest shareholder, highlight the windfall for energy traders from oil prices that have consistently exceeded $100 a barrel in the past two months."}],[{"start":146.84,"text":"Their results followed bumper quarterly results for US and European oil majors, which have channelled the windfalls to shareholders."}],[{"start":154.84,"text":"Mitsubishi Corporation followed suit, launching a ¥1tn ($6.3bn) share buyback after raising its full-year net income forecast by 9 per cent to a record ¥1.2tn."}],[{"start":168.68,"text":"The trading houses, including Marubeni, were also boosted by copper prices, which have surged on expectation that the Trump administration could place tariffs on the metal used extensively in electrical infrastructure and appliances."}],[{"start":182.34,"text":"Copper prices peaked at $14,875 a tonne in early September, as the expected US tariffs added to strong AI-related demand and a long-term battle by miners to meet production targets."}],[{"start":195.6,"text":"The share buyback helped reverse a fall in Mitsubishi Corporation shares to end 8 per cent higher on Wednesday, in contrast to 1.4 per cent fall for the Nikkei 225."}],[{"start":210.66,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793792873_6734.mp3"}