Four of Japan's largest commodity houses — Mitsubishi Corporation, Mitsui & Co, Marubeni and Itochu — posted record first-half profits as the Iran war lifted oil above $100 a barrel and copper hit $14,875 a tonne. Mitsui said the Middle East conflict will add ¥40bn ($253mn) to annual earnings and flagged further upside in its LNG business. Mitsubishi raised its full-year net income forecast 9% to a record ¥1.2tn and announced a ¥1tn ($6.3bn) share buyback, sending its shares up 8% while the Nikkei 225 fell 1.4%.
CEOs warned that Donald Trump's unpredictable foreign policy after the Democrats regained Congress could prolong the conflict and fuel inflation. Katsuya Nakanishi of Mitsubishi cautioned that resource-price spikes may stoke inflation, while Kenichi Hori of Mitsui said geopolitical risks will remain unpredictable. Berkshire Hathaway is the biggest shareholder in the trading houses, amplifying the windfall for Warren Buffett's portfolio.
Source: Financial Times Companies · Summarized by HeadlinesBriefing