>> THIS IS "THE ASIA TRADE." I AM SHERY AHN IN TOKYO. >> I AM PAUL ALLEN IN SYDNEY. A BIG WEEK OF EARNINGS AND CENTRAL-BANK DECISIONS.TRADERS LOOKING AT DEEPER FED RATE CUTS. CHINA'S PRESIDENT EMPHASIZES STABILITY AND THE MESSAGE AFTER TOUTING DOMESTIC DEMAND AS THE MAIN DRIVER OF ECONOMIC GROWTH. WARNER BROS.SAID TO CONSIDER REOPENING SALES TALKS WITH GUIDANCE POTENTIALLY EXAMINING A SECOND BIDDING WAR WITH NETFLIX. MARCO RUBIO ISSUES A WARNING TO EUROPEAN LEADERS AT THE MUNICH SECURITY CONFERENCE. SHERY: ...

Core Insights - Rio Tinto Group reported solid growth in iron ore production and a 5% year-over-year increase in consolidated copper output for Q4 2025, supported by strong asset performance [1][8] Production and Technology - The company achieved its first copper production at the Johnson Camp mine in Arizona using proprietary Nuton technology, marking a significant milestone for cleaner and more efficient copper recovery [2] - The Johnson Camp deployment targets approximately 30,000 tons of refined copper over a four-year demonstration period, aiming for the lowest carbon footprint in the U.S. [3] Overall Performance - Rio Tinto's total copper production reached 883 kilotonne (kt) in 2025, an 11% increase year-over-year, driven by strong performance at the Oyu Tolgoi site and Kennecott mine [4][8] - In comparison, Ero Copper Corp. produced 19,706 tons of copper in Q4 2025, while Southern Copper Corporation recorded 242,172 tons, showing marginal growth [5][6] Market Position and Valuation - Rio Tinto's shares have gained 56.6% over the past six months, outperforming the industry's growth of 36.4% [7] - The company is trading at a forward price-to-earnings ratio of 12.92X, below the industry average of 16.43X, with a Value Score of B [10] Earnings Estimates - The Zacks Consensus Estimate for Rio Tinto's 2026 earnings has increased by 12.7% over the past 60 days [11]

Core Viewpoint - The ASX 200 experienced a decline of 1.4% due to fears that AI could disrupt software companies while also being too costly, despite a weekly gain of 2.4% [1] Group 1: Software Sector Impact - The ASX tech sector has lost 23% of its value over the past month due to concerns about margin erosion from AI [2] - Software companies are facing margin compression from multiple angles, with the software as a service model being particularly challenged [4] Group 2: Individual Stock Performance - WiseTech Global shares fell 10.4% to $42.62, Xero shares dropped 4.5% to $73.49, and TechnologyOne shares decreased 7.1% to $20.17 [3] - Austal shares plummeted 22.8% to $4.87 after reducing earnings guidance by 18% due to an accounting error [8] - Webjet shares fell 25.2% to 58¢ after canceling takeover talks and cutting profit guidance [9] - Nick Scali shares declined 22.3% to $18.48 due to weaker sales in Australia and New Zealand [10] Group 3: Banking Sector - Commonwealth Bank shares decreased 1.4% to $176.20, National Australia Bank shares fell 1.1% to $46.01, and Westpac shares dropped 1.2% to $40.52, despite a strong net profit from Westpac [6] - ANZ shares were an outlier, rising 1.3% to $40.89 after brokers upgraded profit expectations [7] Group 4: Mining Sector Outlook - A significant week is anticipated for major miners BHP and Rio Tinto, with earnings reports expected to reflect boosts from rising copper prices and iron ore strength [13]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Rio Tinto (RIO) - Rio Tinto currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [2][3] - The stock has shown significant price performance, with a 2.61% increase over the past week, contrasting with a 1.38% decline in the Zacks Mining - Miscellaneous industry [5] - Over the past quarter, Rio Tinto shares have increased by 43.34%, and by 60.41% over the last year, significantly outperforming the S&P 500, which has moved 1.65% and 15.6% respectively [6] Trading Volume - The average 20-day trading volume for Rio Tinto is 4,121,970 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for Rio Tinto have been revised upwards, increasing the consensus estimate from $7.07 to $7.97 [9] - For the next fiscal year, three estimates have also moved upwards with no downward revisions, indicating positive earnings momentum [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Rio Tinto is positioned as a strong buy candidate with a Momentum Score of B, making it a noteworthy option for investors seeking short-term gains [11]

Executive Team Change - Isabelle Deschamps, Chief Legal, Governance & Corporate Affairs Officer, will leave Rio Tinto in 2026 after five years in her role to pursue new opportunities [1] - Deschamps will remain in her position until at least mid-2026 to ensure continuity during the succession process [1] - CEO Simon Trott acknowledged Deschamps' contributions in strengthening governance and supporting business development [1] No Intention to Bid Statement - Rio Tinto has confirmed it is no longer considering a merger or business combination with Glencore plc, as it could not reach an agreement that would deliver value to shareholders [1] Joint Acquisition for Low-Carbon Aluminium - Rio Tinto and Aluminum Corporation of China Limited (Chalco) have entered into a joint venture to acquire Votorantim's 68.596% controlling shareholding in Companhia Brasileira de Alumínio (CBA) [1] - The transaction will be structured with Rio Tinto owning 33% and Chalco 67% of the joint venture [1] - The acquisition price is set at R$10.50 per share in CBA, representing a premium [1] Fourth Quarter 2025 Production Results - Rio Tinto reported exceptional production performance in the fourth quarter of 2025, achieving record quarterly iron ore production in the Pilbara [1] - The company noted a strong recovery from extreme weather interruptions earlier in the year [1]

Core Viewpoint - Rio Tinto Group (RIO) has demonstrated strong stock performance, with shares increasing by 36.7% over the past three months, significantly outperforming both the industry and the S&P 500 [1][9]. Stock Performance - RIO shares closed at $97.24, nearing its 52-week high of $98.60 and well above its 52-week low of $51.67, indicating solid upward momentum [3]. - The stock is trading above both its 50-day and 200-day moving averages, reflecting confidence in the company's long-term prospects [3]. Production and Growth - The company has boosted copper output by 11% in 2025, achieving a total production of 883 kilotonne (kt), which is an increase of 11% year-over-year [9][12]. - RIO's first copper production at the Johnson Camp mine in Arizona, utilizing proprietary Nuton technology, marks a significant milestone for cleaner and more efficient copper recovery [11]. - The Johnson Camp project aims for approximately 30,000 tons of refined copper over a four-year demonstration period, with a focus on low carbon emissions [12]. - Iron ore shipments from the Pilbara facility rose by 7% year-over-year, while aluminum production increased by 2% in the same period [13]. Strategic Partnerships and Projects - In January 2026, RIO and Aluminum Corporation of China Limited (Chalco) formed a joint venture to acquire a controlling stake in Brazilian aluminum company CBA, enhancing RIO's green aluminum footprint [14]. - The Rhodes Ridge joint venture has approved a $191 million feasibility study to develop a major undeveloped iron ore deposit in Western Australia, targeting an initial production of 40-50 million tons annually [15]. Challenges and Market Position - Despite solid performance, RIO faced challenges such as weather-related disruptions affecting iron ore volumes and planned maintenance reducing copper output [16]. - The company operates in a competitive market with major players like BHP Group and TMC [16]. Financial Outlook - The Zacks Consensus Estimate for RIO's bottom line for 2026 has increased by 6.4% in the past 60 days, indicating positive market sentiment [19]. - RIO is trading at a forward price-to-earnings ratio of 12.84X, below the industry average of 16.31X, suggesting potential undervaluation [21]. Conclusion - Steady progress in growth projects, higher copper output, and advancements in iron ore and aluminum operations position RIO for sustained growth, making it an attractive opportunity for investors [22].

Company Overview - Compass is a leading global contract caterer, serving 5.5 billion meals annually across more than 25 countries, and is recognized as a well-managed business [2] - The company derives approximately 75% of its revenues in U.S. dollars, highlighting its international operations [4] Currency Change Announcement - Compass announced it will change the currency of its share trading from sterling to U.S. dollars effective April 1, 2024, to align its trading currency with its reporting currency, thereby reducing foreign exchange volatility [1] - This move is part of a broader trend among British companies, with many now reporting in currencies other than sterling [8] Industry Context - The change in trading currency follows a recent adjustment in FTSE Russell's membership rules, allowing companies trading in dollars or euros to be considered for inclusion in the FTSE U.K. Index Series [5] - Other major companies, such as InterContinental Hotels Group, have also adopted this practice, indicating a shift in how British firms operate in global markets [6] Historical Perspective - The trend of companies reporting in foreign currencies is not new, with major firms like HSBC, AstraZeneca, and Shell having transitioned to dollar reporting in recent years [8][11] - Historically, Avis Europe was an early adopter of non-sterling reporting, having faced challenges in the past when attempting to report in the European Currency Unit [9][10] Market Reactions - The announcement from Compass has sparked discussions about the potential for more U.K. companies to follow suit and possibly list on the New York Stock Exchange, reflecting a growing trend of British firms seeking to align with global financial practices [4][13]

Market Overview - The Australian sharemarket closed flat on February 10, 2026, with the S&P/ASX 200 ending 2.7 points lower at 8,867.40 after a 1.9% rally the previous day [1][9] - The index is currently 2.72% below its 52-week high and has shown virtually no change over the last five days [2][9] Sector Performance - Financials sector declined by 1.1%, primarily due to significant losses in insurance companies [2][9] - 8 out of 11 sectors ended higher, with Information Technology being the best-performing sector, gaining 2.14% [5][9] - Miners advanced by 1% on the back of higher iron ore prices, with BHP Group rising 1.1% and Rio Tinto gaining 1.4% [5][9] Top Gainers - Silex Systems Limited (SLX) led the day's gains, closing at $7.240, up $0.560 or 8.383% [3][9] - Other notable gainers included DroneShield Limited (DRO) up 7.301%, Deep Yellow Limited (DYL) up 7.142%, Zip Co Limited (ZIP) up 6.072%, and Superloop Limited (SLC) up 5.579% [3][9] Bottom Performers - Steadfast Group Limited (SDF) and Insurance Australia Group Limited (IAG) were the bottom performers, down 9.46% and 6.19% respectively [2][9] - AUB Group Limited (AUB) fell by 6.115%, while CSL Limited (CSL) and Suncorp Group Limited (SUN) also experienced declines of 4.979% and 4.237% respectively [2][9] Individual Stock Highlights - Treasury Wine Estates shares rose by 8.1% after resolving a dispute with U.S. distributor Republic National Distributing Company [7][9] - Gold stocks increased by 1.3%, with Genesis Minerals up 2.8% and St Barbara rising 4.4% [6][9] - Energy stocks advanced by 0.6%, with uranium miners Deep Yellow and Paladin Energy up 7.1% and 5.5% respectively [7][9]

Core Viewpoint - Kirkstone Metals Corp. has appointed Matthew Schwab as an Advisor to the Board, leveraging his extensive experience in uranium exploration to enhance the company's growth strategy [1][2][3]. Company Overview - Kirkstone Metals Corp. is a Canadian mineral exploration company focused on uranium assets that support the transition to clean energy. Its flagship project is the Key Lake Road Uranium Project located in Saskatchewan's Athabasca Basin, a leading uranium district globally [5]. Key Appointments - Matthew Schwab, a respected exploration geologist with a decade of experience, has joined the Advisory Board. His previous roles include CEO of Kraken Energy Corp. and Senior Exploration Geologist at NexGen Energy Ltd., where he was pivotal in discovering the Arrow uranium deposit [2][3]. Strategic Growth - CEO Clive Massey expressed enthusiasm about Schwab's appointment, highlighting that his expertise in strategic growth and industry relationships will be crucial for accelerating exploration and development, ultimately delivering long-term value to shareholders [3]. Stock Options - The company has granted 1.6 million stock options to directors, officers, advisors, and consultants, exercisable at $0.79 per common share for a term of five years [3].

Core Insights - The announcement of "Project Vault" by the U.S. government aims to establish a strategic stockpile of critical minerals to enhance domestic supply chains and national security [1][2][4] - The initiative includes a Direct Loan of up to USD 10 billion from the Export-Import Bank of the United States to support partnerships in critical mineral production [3] - The focus on critical minerals, particularly titanium, is crucial for defense and aerospace applications, highlighting the need for secure supply chains [7][9] Company Overview - SAGA Metals Corp. is focused on the exploration of critical minerals, particularly titanium, which is essential for defense and aerospace sectors [1][11] - The company's flagship Radar Ti-V-Fe Project in Labrador has shown a 100% drilling success rate in 2025, with high grades of titanium, vanadium, and iron [10] - SAGA's strategic positioning in the critical minerals sector aligns with the U.S. government's initiatives to strengthen supply chains and reduce reliance on foreign sources [11][21] Industry Context - The U.S. is taking steps to counter China's dominance in critical minerals, particularly in refining processes, through initiatives like Project Vault [4][5] - The emphasis on allied coordination and preferential trade frameworks aims to stabilize critical mineral supply chains and mitigate risks associated with price fluctuations and supply disruptions [5][6][17] - Critical minerals are foundational for modern technology, with applications ranging from mobile devices to electric vehicle batteries and defense systems [12]