Gold has overtaken the euro to become the second largest reserve asset globally, with its share in global foreign reserves reaching 20% by the end of 2024, compared to the euro's 16%. This shift is attributed to record purchases by central banks, which have doubled their annual gold acquisitions since 2022, reflecting a strategic move away from traditional fiat currencies amid geopolitical tensions and inflation concerns.
The decline in the dollar's share of global reserves to 46% indicates a broader trend of diversification among central banks, particularly in response to the freezing of Russian reserves and fears of inflation. This trend is expected to continue, with countries increasingly viewing gold as a safe haven asset, which could lead to sustained demand and higher prices in the future.

Gold Reserves

Oracle's stock surged nearly 8% after the company raised its annual revenue growth forecast, now expecting at least $67 billion for fiscal 2026. This optimistic outlook is driven by robust demand for its cloud services, particularly from businesses integrating artificial intelligence (AI) into their operations. The new forecast indicates a growth rate of approximately 16.7%, up from a previous estimate of 15%. The company's cloud services and license support unit reported a quarterly revenue of $11.70 billion, reflecting a 14% year-over-year increase, which also exceeded analysts' expectations.
CEO Safra Catz highlighted that the total cloud growth rate is projected to increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026. This growth is attributed to Oracle Cloud Infrastructure (OCI) and the company's ability to embed generative AI capabilities into its cloud applications at no extra cost. Industry analysts note that Oracle's multi-cloud strategy and the increasing reliance on OCI by enterprise customers are significant factors driving this growth, positioning Oracle favorably in the competitive cloud services market.

Cloud Momentum

DHL Group is set to invest approximately &euro;500 million ($575 million) over the next five years to enhance healthcare logistics services in Africa and the Middle East. This strategic move aims to capitalize on the growing demand for healthcare products, particularly in light of increasing population and healthcare needs in these regions. The investment will focus on specialized logistics for time-sensitive shipments, including vaccines and medical devices, which are critical for improving healthcare delivery.
The company is particularly targeting five key markets: Egypt, Saudi Arabia, Kenya, South Africa, and Dubai. This expansion aligns with a broader global investment strategy of &euro;2 billion in healthcare logistics, with Africa and the Middle East expected to receive about 25% of this funding. The initiative is also a response to the rising demand for pharmaceuticals in Africa, projected to reach $33.8 billion by 2030, indicating a significant growth opportunity for DHL in the healthcare sector.

Healthcare Expansion

Disney is laying off several hundred employees globally as part of a cost-reduction strategy, focusing on areas such as marketing, TV publicity, and corporate financial operations. This move is part of a broader effort to adapt to the changing media landscape, where consumers are increasingly moving away from traditional cable packages towards streaming services. The company has already eliminated over 8,000 roles since 2023, aiming to cut $7.5 billion in annual costs.
The layoffs come despite Disney's recent strong financial performance, with a reported 13% year-over-year drop in linear network revenue, while direct-to-consumer revenue increased by 8%. This shift underscores Disney's pivot towards digital distribution and streaming, which is now a central focus for the company. The stock remained stable following the announcement, indicating that investors are cautiously optimistic about Disney's long-term growth strategy.

Job Cuts

Oil prices increased nearly 3% as OPEC+ decided to maintain its output plans, with Brent crude futures settling at $64.63 per barrel. The rise was primarily driven by supply concerns stemming from wildfires in Alberta, Canada, which have disrupted about 7% of the country's crude oil output. The decision by OPEC+ to raise production by 411,000 barrels per day in July was anticipated, but traders had expected a larger increase, leading to a market reaction that favored higher prices.
The geopolitical landscape also contributed to the price surge, with increased risks following Ukrainian drone strikes against Russia. Additionally, a weaker U.S. dollar made oil cheaper for foreign buyers, further supporting price gains. Analysts from Goldman Sachs and Morgan Stanley predict continued production increases, suggesting that the market fundamentals remain tight despite the anticipated demand slowdown.

Oil Surge

Azeri state energy company SOCAR is set to sign new agreements for oil and gas exploration in Azerbaijan, including partnerships with Exxon Mobil and BP. This development follows a memorandum of understanding signed between BP and SOCAR, indicating BP's commitment to explore and develop two oil blocks in the Caspian Sea. Azerbaijan boasts significant oil reserves of 7 billion barrels and natural gas reserves of 1.7 trillion cubic meters, positioning it as a key player in the energy sector.
Azerbaijan aims to increase its natural gas exports by 8 billion cubic meters by 2030, leveraging existing and new fields. This strategic move aligns with the country's goal to enhance its role in the global energy market, particularly in supplying Europe with natural gas. The agreements with major players like Exxon Mobil and BP could bolster SOCAR's operational capabilities and financial performance, potentially impacting the competitive landscape in the region.

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