Ecopetrol’s president, Ricardo Roa, confirmed that the Colombian state-owned company would not conduct any business with Venezuela as long as US Office of Foreign Assets Control (OFAC) prohibitions were in effect.

This declaration represents an important position for Ecopetrol, particularly in light of recent geopolitical changes affecting the region’s oil and gas business.

According to local media W Radio, Roa’s comments come after Washington revoked Chevron’s operating license and gave the oil company one month to vacate the territory.

The Trump administration announced the decision after Venezuela did not comply with the commitments to receive illegal immigrants back, and continuing disputes over the elections in the country.

What influenced Ecopetrol’s decision

In a press briefing, Roa stated that the company will maintain a clear and responsible approach.

He further stated that it is a very important sign for the company and it is crystal clear that they will stay away from any negotiations and transactions with Venezuela under OFAC restrictions.

A key element that marks the path of Ecopetrol’s decision is the lack of the Antonio Ricaurte gas pipeline. This infrastructure is important for enabling energy exchanges between Colombia and Venezuela.

According to Roa, the lack of access to this pipeline hinders cross-border economic operations.

Another obstacle, along with logistical difficulties, is the lack of any certainty that gas could be exported from Venezuela to Colombia.

Without a robust energy commerce architecture in place, it would simply not make any business sense for Ecopetrol to conduct business in Venezuela, Roa said.

Ecopetrol’s fund-raising plans

Colombia’s state-controlled oil producer Ecopetrol plans to raise up to $2 billion in additional debt this year to support investments and is considering funding options through banks and capital markets, a company official said on Wednesday.

The debt will be allocated toward inorganic investments, including the acquisition of new assets or projects.

Corporate Vice President of Finance Camilo Barco stated in a call with investors that the company’s board had authorized $1 billion in structural debt and an additional $1 billion as a temporary measure.

Barco expressed confidence that the investment plan would gain momentum in the latter half of the year, necessitating some financing operations to execute the inorganic investment strategy.

Ecopetrol has outlined an investment plan ranging from $5.9 billion to $6.8 billion for the year, primarily funded by its cash reserves, which stood at $4.4 billion at the end of 2024.

Ecopetrol expects production to range between 740,000 and 750,000 barrels of oil equivalent per day (boepd) in 2025, Vice President of Hydrocarbons Rafael Guzman said.

The company reported an average production of 745,800 boepd last year, its highest level in nine years.

Ecopetrol reported a nearly 22% annual decline in net profit for 2024, impacted by a stronger US dollar and lower international oil prices.

The post Colombia’s Ecopetrol says it will not do business with Venezuela following US OFAC restrictions appeared first on Invezz

Uber Technologies Inc (NYSE: UBER) has had an incredible start to the new year but its year-to-date gains may only be a drop in the bucket compared to where the stock may be headed in 2025, according to Timothy Chubb.

The chief investment officer of Girard Advisory Services expects the ride-sharing stock to offer a few more positive surprises as we advance through the year.

On CNBC’s “Power Lunch”, the market veteran went on to count Uber stock among his highest conviction ideas for the next 12 months.

Uber’s growth story is underappreciated

Timothy Chubb expects Uber stock to extend its recent gains in the months ahead as it’s a “perfect example where the fundamentals of the core business are doing extremely well.”

The market, he’s convinced, is underappreciating user growth and engagement levels at Uber, as well as the strength of its free cash flow.

Last month, the ride-hailing giant came in shy of the quarterly earnings estimates and offered muted bookings guidance for its fiscal Q1. 

However, the Girard Advisory expert sees that the expected weakness is temporary and continues to believe in the long-term potential of Uber Technologies Inc.

However, shares of the multinational transportation company remain unattractive for income investors as they do not currently pay a dividend.

Uber is expanding into robotaxi services

Uber has recently debuted a robotaxi service in collaboration with Waymo in Austin, Texas – and plans on launching a similar service in a bunch of other cities by the end of this year.

According to Timothy Chubb of Girard Advisory Services, the New York listed firm could benefit rather significantly as it continues to commercialise autonomous vehicles in the United States.

All in all, the chief investment officer sees Uber stock trading at north of $100 by early next year, which translates to about a 31% upside from current levels.

Wall Street seems to agree with Chubb considering the consensus rating on Uber shares currently sits at “buy”.

Is it worth buying Uber stock in 2025?

Uber stock is currently going for about 16 times earnings, which is not particularly cheap compared to its historical price-to-earnings ratio of less than 10.  

But the company based out of San Francisco, California, may still be worth an investment at current levels as it’s expanding into robotaxis and advertising to diversify its revenue stream.

Together with the dominance Uber already has in ride-sharing and food delivery that continues to drive double-digit percentage gains in revenue despite the global scale, it’s reasonable to believe that its share price could push further up from here by the end of 2025.

Note that Uber share price is currently up more than 250% versus the pandemic

The post Uber stock: could it surpass $100 in 2025? appeared first on Invezz

Investors have been cautious about high-growth technology stocks in 2024, with broader market uncertainty and concerns over President Donald Trump’s tariff policies putting pressure on valuations.

The Nasdaq Composite has declined 6% so far this year as investors rotate out of last year’s best-performing stocks and software companies have not been immune to this downturn.

The iShares Expanded Tech Sector exchange-traded fund, which includes major software firms, has fallen 4.5% this year and is down 10% from its all-time closing high of $108.46 in February, according to Dow Jones Market Data.

However, analysts at Evercore ISI believe the recent sell-off presents a buying opportunity.

Kirk Materne, an analyst at the firm, wrote in a research note this week that investors should consider “leaning in” to software stocks, given their attractive valuations and potential for AI-driven growth.

AI monetization strengthens long-term outlook

Materne highlighted five software companies as his top picks: Salesforce, Microsoft, Intuit, Snowflake, and Workday.

He noted that all five are trading below their five-year average forward price-to-earnings ratios, making them more attractive after recent declines.

For instance, Microsoft is trading at 27.9 times forward earnings, compared to its five-year average of 29.5 times, while Salesforce is valued at 25.9 times, down from its five-year average of 40.4 times.

Beyond valuation, Materne pointed to artificial intelligence as a key growth driver for these firms.

Companies like Salesforce are already integrating AI into their platforms, offering tools such as Agentforce, an AI-powered customer engagement tool.

Since its launch in October, Salesforce has closed 5,000 deals for Agentforce, and Materne estimates the product could contribute $1 billion in incremental revenue by 2026.

“While it is super early days — the monetization of Gen AI has begun and will build momentum over the remainder of the year,” he wrote.

“We believe the big are going to get bigger in a Gen AI world and we believe the AI narrative in software will only get stronger as the year progresses.”

Dim financial forecasts, economic challenges pose risks

Despite the positive outlook, some risks remain.

Recent earnings reports from Salesforce, Microsoft, and Intuit included financial forecasts that fell short of analyst expectations, raising concerns about near-term revenue growth.

Additionally, broader economic challenges, including potential business spending slowdowns due to rising tariffs, could pose headwinds for the sector.

Trump’s new tariffs could impact business spending, forcing some companies to scale back technology investments.

However, Materne believes software firms are relatively insulated from these effects.

Many software contracts operate on long-term subscription models, limiting immediate financial risks.

Moreover, software solutions focused on efficiency and automation are likely to remain in high demand, even in a tighter economic environment.

“We believe the setup for software remains favorable when taking a 3-6 month view,” Materne wrote.

While risks persist, Evercore’s analysis suggests that investors willing to weather short-term volatility may find compelling opportunities in software stocks as AI adoption accelerates and valuations remain attractive.

The post Salesforce, Microsoft, and 3 other software stocks Evercore ISI wants you to buy amid market pullback appeared first on Invezz

US stock markets witnessed sharp declines this week as investors reacted to uncertainty surrounding President Donald Trump’s shifting tariff policies.

While analysts debated the impact of trade restrictions, Trump attributed the sell-off to ‘globalists,’ a term he has frequently used to describe individuals, corporations, and nations that he believes undermine American economic interests.

Speaking in the Oval Office on Thursday, Trump dismissed concerns that his tariffs were responsible for the market downturn.

Instead, he claimed that ‘globalist’ forces were resisting his administration’s efforts to reclaim economic power, though he did not specify what those efforts entailed.

His comments have reignited discussions about his broader economic agenda, which prioritises protectionist policies over international economic cooperation.

Tariffs not to blame, says Trump

Despite concerns from economists and investors that the market slide was linked to trade uncertainties, Trump insisted that his administration’s recent moves—including imposing a 25% tariff on Canada and Mexico before granting temporary exemptions—had nothing to do with the financial turmoil.

He maintained that his trade policies were designed to restore economic fairness and that any disruptions were temporary.

“There’ll always be a little short-term interruption,” Trump said, suggesting that markets might experience fluctuations but would stabilise as his policies took effect.

His repeated dismissal of market concerns highlights his administration’s broader stance that prioritises long-term economic restructuring over short-term investor sentiment.

Trump’s economic nationalism

Trump has frequently used the term ‘globalist’ throughout his presidency, framing it as an opposition to his economic nationalism.

While the exact meaning of the term remains vague, he has used it to describe multinational corporations, political opponents, and international economic alliances that he believes weaken American industry.

During his remarks, Trump referenced ‘globalist countries and companies that won’t be doing as well,’ linking them to the market’s struggles without elaborating further.

The term has also been criticised for its potential connections to conspiracy theories, particularly those with antisemitic undertones.

Groups such as the American Jewish Committee have noted that ‘globalist’ is often used as a coded term in such narratives.

Trump has continued to employ the phrase as part of his broader economic rhetoric, positioning himself against what he describes as a global economic system that disadvantages the US.

White House silent on policy impact

The White House did not immediately respond to requests for further clarification regarding Trump’s comments.

However, reports indicate that his administration is considering overhauling its approach to economic partnerships, particularly in relation to NATO allies and global trade agreements.

While Trump has repeatedly stated that his policies aim to benefit American workers, uncertainty remains over the potential consequences for markets and international relations.

Even as markets reacted to shifting trade policies, Trump maintained that the stock market was not his primary focus. “I’m not even looking at the market,” he said, reinforcing his stance that economic restructuring takes precedence over day-to-day fluctuations.

Despite this assertion, investors continue to weigh the impact of ongoing tariff negotiations and broader policy shifts on market stability.

The post Trump blames ‘globalists’ for stock market sell-off: ‘There’ll always be short-term interruptions’ appeared first on Invezz

The US labour market likely continued to add jobs in February, but concerns over trade policies, immigration crackdowns, and federal job cuts are creating an increasingly uncertain outlook.

Economists expect the upcoming Labour Department report to show an addition of 160,000 jobs, up from 143,000 in January, with the unemployment rate holding steady at 4%.

Despite resilience in hiring, businesses are navigating shifting economic conditions, including the Trump administration’s tariff threats and workforce reductions in federal agencies, which could shape employment trends in the coming months.

Hiring stays strong despite pressures

Despite growing economic headwinds, job creation has remained stable.

Employers added an average of 166,000 jobs per month in 2024, a slowdown from 216,000 in 2023 and significantly lower than the 603,000 monthly average recorded in 2021 during the post-pandemic economic recovery.

The February job figures are expected to reflect continued momentum in hiring, particularly in the leisure and hospitality sectors, which rebounded after disruptions caused by wildfires in Los Angeles earlier this year.

The ongoing economic expansion has persisted despite high interest rates, which were initially expected to trigger a slowdown.

The Federal Reserve raised its benchmark interest rate 11 times between 2022 and 2023 to counter inflation, bringing it to its highest level in more than two decades.

However, the economy demonstrated resilience due to strong consumer spending, improved productivity, and increased immigration, which helped ease labour shortages.

Inflation fell to 2.4% in September 2024, allowing the Fed to cut rates three times last year, but further reductions have been delayed as inflationary pressures persist.

Federal cuts and trade risks

The Trump administration’s recent workforce reductions at federal agencies are not expected to impact the February employment report, as the Labour Department’s survey was conducted before the job losses took effect.

However, these cuts are expected to make a visible dent in payroll data for March and beyond.

At the same time, the administration’s approach to trade policy is creating additional challenges for businesses.

Proposed tariff increases on imported goods could lead to rising production costs, which may influence hiring and wage decisions.

Economists caution that such measures could slow job creation, reduce disposable income, and increase inflationary risks.

If businesses react by cutting costs, the impact could be felt across multiple sectors, potentially leading to a more severe labour market slowdown.

Wage growth slows

Economists anticipate that workers’ average hourly earnings rose by 0.3% in February, a decline from the 0.5% increase recorded in January.

While this slowdown in wage growth may be welcomed by the Federal Reserve as a sign of easing inflationary pressure, it is unlikely to prompt an immediate rate cut at the central bank’s next meeting on March 18-19.

Market analysts tracking the Federal Reserve’s decisions indicate that Wall Street traders are not expecting another rate cut until at least May, with uncertainty surrounding inflation trends.

If inflation remains persistent, further delays in rate reductions could affect business investment and hiring decisions in the months ahead.

As economic pressures mount, employers and job seekers alike will be closely watching how policy decisions shape the trajectory of the US labour market.

With trade disputes, government job cuts, and wage fluctuations all playing a role, the stability of the employment sector remains a key concern for the broader economy.

The post US job growth likely remained strong in February, but trade and policy risks cloud outlook appeared first on Invezz