Anglo American: $3.7 Billion Loss. Diamond Market in Deep Crisis

The British-South African mining giant Anglo American published its financial report for 2025, exposing the scale of problems in the luxury goods sector. The company reported a net loss of $3.7 billion, a result drastically worse than analysts' expectations. The key factor influencing this outcome was the decision to reduce the book value of the company De Beers by another $2.3 billion. This is already the third such write-down in the last three years, indicating the persistent nature of a bear market in diamonds. The diamond industry is currently undergoing a fundamental transformation. Since the 1940s, De Beers has created demand through famous marketing campaigns, but now it must face competition from synthetic diamonds and changing preferences of Generation Z consumers.The current market situation significantly complicates the plans of Anglo American's management, which aims to simplify the group's structure. The CEO announced a strategy to exit the diamond, coking coal, and platinum segments to focus on copper and iron. This process coincides with the finalization of a merger with Canadian company Teck Resources, which just announced excellent results thanks to high copper prices. Parallel to the mining industry, Airbus reports profitability issues. The European aircraft manufacturer lowered delivery forecasts for the A320 model due to delays in engine deliveries from Pratt & Whitney. „Engine deliveries from Pratt & Whitney are significantly delayed compared to previous commitments, forcing us to revise production targets.” — Guillaume Faury While Anglo American struggles with a crisis, other industrial companies show greater resilience. South African Kumba Iron Ore recorded an 18% profit increase thanks to higher iron ore prices. Also, German Knorr-Bremse, despite a general slowdown in the industry, managed to increase operating profit by 20%. Investors on stock exchanges in London and Paris remain cautious, exacerbated by rising geopolitical tensions along the USA-Iran line and uncertainty about the future path of interest rates. Liberal media emphasize the necessity for corporate transformation towards green energy and copper. | Conservative media focus on the costs of restructuring and the risk of losing dominance in traditional sectors.