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Germany's retail and industrial sectors, as well as the energy sector, criticise the power subsidy plan
On Wednesday, representatives of the energy, retail and industrial sectors criticised Germany's plan for a reduction in electricity tax. They warned that it could have a limited impact and distort the competition. The average electricity price in Germany is 38 cents per kilowatt hour, which ranks fifth in the world. In early this year, the ruling coalition in Germany of conservatives (conservatives) and social democrats (social democrats) agreed to reduce electricity tax for all consumers to the European Minimum. The Finance Ministry's framework budget for the year 2026, which was presented on Tuesday, limited the relief planned to the industries of agriculture, forestry and industry. It excluded many consumers and companies, citing financial problems. The first dispute since the CDU/CSU and SPD took over government last month is the disagreement between the parties about the size of the subsidy. Alexander von Preen of HDE, the head of trade association, stated that "by breaching the coalition agreement the government has thrown away the trust of business and torn the rug from underneath companies." Sepp Mueller, deputy leader of CDU/CSU's conservative parliamentary group, stated that reducing the cost of electricity for all remained the goal of the party. Mueller said, "Now we need to discuss quickly when we can implement it." The German Chamber of Industry and Commerce said that the reductions were a slap on the face to many companies, as the government sold the scheme as a quick fix. Peter Adrian, DIHK's President, said: "Nobody understands why this small but important relief, which is already possible, should not be available, despite planned debt records." Katherina Reiche, Germany's Economy Minister, said on Wednesday that the country will present a concrete idea for a price of industrial electricity after the European Union implemented a new framework for state aids which would allow such subsidies. BDEW, the German utilities lobby, also warned about market distortions as well as a slowdown of renewable energy expansion. The BDI association says that the limited scope and many restrictions of this measure leaves too little room for lowering electricity prices to a level where they are internationally competitive. The ZDH Central Association of Skilled Crafts stated that an industrial electricity rate would distort the competition and harm small and medium-sized businesses. These companies must also co-finance these reliefs. (Reporting and editing by Ed Osmond, Holger Hansen and Christian Kraemer)
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Cutifani, Chair of Vale Base Metals, to step down. Pimenta will take over.
According to a filing with the Brazilian Securities Commission, Vale announced on Wednesday that Mark Cutifani would step down as Chairman of its copper-nickel spinoff Vale Base Metals in order to "pursue professional projects." The company announced that Vale CEO Gustavo Pimenta would replace him in July. This will "ensure strong leadership and alignment with Vale’s broader strategic goals" within the business. Vale, the iron ore giant, spun off its base metals division as a separate company with headquarters in Toronto by 2023. The goal is to eventually list it. Cutifani, who was chief executive of London-listed Anglo American for nearly a decade, until 2022, won plaudits. Cutifani stated in a press release that "we thought it would take two to three years to set them up (Vale Base Metals)," for an IPO. Since then, we have seen a 40% rise in productivity and a 20 percent reduction in costs. "Gustavo... is the one who will make the final decision as to whether and when to IPO," he said, without commenting about his new professional endeavors. Cutifani resigns just months after Shaun Usmar, a veteran mining executive, was appointed as CEO of Vale Base Metals. Marina Calero, an analyst at RBC Capital Markets, said: "The elephant in VBM's room is the timing for an IPO. We do not expect it to happen anytime soon."
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JSW Steel petitions India's highest court to review the Bhushan Power collapse.
JSW Steel, an Indian steelmaker, said it filed a review application before India's highest court on Wednesday in relation to the rejection by the court of its $2.3 billion acquisition plan of Bhushan Power and Steel. The Supreme Court of India, in its ruling on the resolution plan for JSW Steel to acquire BPSL, ordered the liquidation of the company four years after it was acquired. The court halted liquidation proceedings on May 26 after JSW Steel, and some BPSL creditors informed the Supreme Court they would be filing a review against the order. The court said the liquidation proceedings would continue until a petition for review is submitted and considered. Reports in May stated that the collapse of the deal has caused concern among potential buyers of distressed assets. Many lawyers and bankruptcy law specialists have said the ruling has caused concern to potential buyers of insolvent firms or bankrupt companies. JSW Steel said that the Supreme Court had cited serious procedural errors as a reason for its ruling. The company said that the order had no impact on them. (Reporting and editing by Shash Kuber in Bengaluru, Manvi Pant)
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EIA: US crude and fuel inventory falls due to higher demand
Energy Information Administration (EIA), a government agency, reported on Wednesday that crude oil and fuel stocks in the United States fell last week due to increased refining and demand. The EIA reported that crude inventories dropped by 5.8 millions barrels, to 415.1 million in the week ended June 20. This was more than analysts expected in a poll. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 464,000 barils in the past week. This week's report is all about supply and demand. The market is likely to stabilize following all of the geopolitical news reports if there's a significant drawdown in stockpiles. The decline in oil stocks was larger than expected. Oil prices increased. Brent crude futures traded at $67.97 per barrel by 10:55 am EDT (1455 GMT), up 83 cents. U.S. West Texas Intermediate (WTI) crude rose 90 cents to reach $65.27. The EIA reported that refinery crude runs had increased by 125,000 barrels a day. Utilization rates also rose, rising by 1.5 percentage points, to 94.7%, their highest level since July 20,24. The gasoline stock fell by 2.1m barrels and now stands at 227.9m barrels. This is also higher than the analysts' expectation of a 381,000 barrel build. The gasoline supply, which is a proxy of demand, increased 389,000 barrels per day (bpd) last week, to 9,7 million bpd. This was the highest level since December 2021. The data revealed that distillate stocks, which includes diesel and heating oil fell by 4.1 millions barrels to 105.3million barrels. This was in contrast to forecasts of a 410,000 barrel increase. The EIA reported that net U.S. crude oil imports increased last week by 531,000 barrels per day. (Editing by Margueritachoy)
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A2A, an Italian company, links district heating to warmth generated in data centres
BRESCIA (Italy), June 25, 2018 - Italian utility A2A, and French tech company Qarnot inaugurated on Wednesday a data center in Italy which aims to capture the waste heat from computers servers and direct it into a local heating network. The facility is located in Brescia in northern Italy and uses liquid cooling technology. The rapid expansion of data centers, and the increasing electrification in consumption, require large investments in electricity grids. Data centers offer an opportunity to cities that have district heating networks, said A2A CEO Renato mazzoncini at the inauguration. Brescia is expected to provide heating for more than 1,350 homes and reduce carbon dioxide emissions by 3,500 tonnes annually, which is equivalent to the capacity of 22,000 trees to absorb CO2. Mazzoncini said that "in (the Italian region) Lombardy, alone, we estimate 150,000 apartments can be heated in this way", Mazzoncini added. The project aims to address the global challenge of managing digital infrastructure that is becoming increasingly energy-intensive. Qarnot wants to increase its presence in Italy, as a high-performance computing service provider. (Reporting Giancarlo Navach. Mark Potter edited the story.
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Brazil increases the mandated level for ethanol and biodiesel in Brazil, Energy Ministry says
According to Pietro Mendes of the Mines and Energy Ministry, the National Energy Policy Council of Brazil (CNPE) approved on Wednesday increasing the percentage of ethanol in gasoline from 27% to 30% and the amount biodiesel to diesel from 14% to 15%. Mendes stated that the changes in fuel mixtures will be effective from August 1. Before This year The CNPE has decided to keep the biodiesel mix at 14%, despite industry groups' objections. Brazil's Ministry of Mines and Energy said in March that increasing the percentage of gasoline from 27% to 30% was a good idea Tests are a good way to back up your claims demonstrating "consistent performance", "real environmental impact" benefits." The International Energy Agency states that biofuels such as ethanol and biodiesel are important in decarbonizing global transport and reducing greenhouse gas emissions linked to burning nonrenewable fuels. Reporting by Ana Mano, Pedro Fonseca and Oliver Griffin Writing by Margueritachoy
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Owner says that the Three Mile Island nuclear power plant could restart in 2027.
Constellation Energy executives said that the former Three Mile Island nuclear plant in Pennsylvania could restart in 2027. This is about one year earlier than originally planned. The plant was put on a rapid track to connect with the regional grid. Constellation signed a contract in September last year to power Microsoft's data centers. This will pave the way for the reopening of Three Mile Island. Three Mile Island is widely known as the location of a partial nuclear meltdown that occurred there in 1979, which froze the industry. Constellation’s 20-year agreement to purchase power from Microsoft is indicative of the lengths to which Big Tech will go to support its artificial intelligence expansion. This began intensifying a year and a half ago. The reactor at Three Mile Island that is reentering service, and which will be renamed Crane Clean Energy Center was not involved in the 1979 accident. It shut down in 2019 due to economic reasons. Constellation CEO Joe Dominguez stated that "we're on the right track to making history ahead of time, helping America achieve economic growth and energy independence as well as winning the global AI race." Constellation announced the restart last year and said that it expected the plant would reopen in 2028. Officials from the company stated that they expect the process to be slowed down by the wait times associated with connecting projects to the regional power grid, operated by PJM interconnection. PJM can have a long queue of power projects. This is essentially an application and engineering study to connect a power station to the broader network. PJM covers 13 states, the District of Columbia and about 67,000,000 customers. In order to relieve some of this bottleneck, especially as data centers are rapidly spreading across PJM territory, the largest grid operator in the United States has accelerated its interconnection processes for selected projects. Nuclear power is gaining popularity after years of decline. New York announced this week that it intends to build a nuclear power plant. It would be the first in a decade to be built. In spite of the excitement, historically nuclear power plant construction has been overbudget and behind schedule. At least one nuclear power plant, the Palisades plant in Michigan, is currently being restarted. (Reporting and editing by SonaliPaul; Laila Kearney)
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As geopolitical tensions decrease, the focus shifts to US data
The gold price eased on Tuesday as the demand for safe-haven assets decreased due to a ceasefire agreement between Iran and Israel. Market participants were cautious in advance of important U.S. data. Gold spot was down 0.3% to $3,314.45 an ounce as of 0934 am EDT (1334 GMT), after the previous session saw prices at their lowest level in more than two weeks. U.S. Gold Futures dropped 0.2% to $3328.10. Daniel Pavilonis is a senior market strategist with RJO Futures. He said that despite the potential and momentum in the markets, gold has never reached new highs. "So, now I think that the path is more on the downside. It may reach $2,900 if the Middle East doesn't escalate." Donald Trump, the U.S. president, praised the end of war between Iran and Israel. He said he expected a new relationship with Tehran to prevent it from re-building its nuclear program. S&P 500 index and Nasdaq rose on Wall Street, hovering close to a record high. Investors will also be watching the second day's testimony of Federal Reserve Chairman Jerome Powell to Congress, which is scheduled to begin at 10:00 am ET. ET. Powell said on Tuesday that the decision to cut rates can only be made after considering the impact of tariffs, the inflation rate and the weakness in the labor market. The U.S. jobs and GDP data are scheduled for release on Thursday. Meanwhile, the Price Consumption Expenditure data (PCE) is due to be released on the Friday. Traders are closely watching this data to gauge the Fed’s future policy direction. Market participants currently believe that there is a greater than 85% likelihood of a September rate cut. Bullion is more likely to perform well in periods of uncertainty or when interest rates are low. Palladium fell 1.8% to 1,046.73 dollars. Platinum lost 0.8% and dropped to $1305.74. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
Gunmen kill 17 soldiers during attacks in Northern Nigeria
On Wednesday, local officials and security sources confirmed that at least 17 soldiers had been killed when gunmen attacked three army bases in northern Nigeria. This was the latest attack in a violent region.
Bandits are armed gangs that operate in the Northwest. They typically kidnap for ransom, and attack security forces.
The Nigerian Army has confirmed the attack on Tuesday, but it did not give details.
The army released a statement saying that "sadly, some brave warriors paid the ultimate price during the day-long fights. Meanwhile, four troops who were wounded in action in the battle are receiving treatment today for their gunshot injuries."
Two sources of security said that gunmen attacked the army's forward operations bases in the Kwanar, Dutse and Boka regions in Niger State as well as another base in Kaduna State. They fought for several hours.
Abbas Kasuwar Garba (chairman of Mariga district) and sources confirmed that all 17 deaths occurred at Kwanar Dutse Mariga.
It was an ambush. "They (gunmen), came out of nowhere and used heavy weapons to attack", said an army officer based in Niger.
The Nigerian Army has launched counterattacks and killed several gunmen.
Nigeria's military has been stretched by insecurity as it battles with armed gangs, Islamist groups Boko Haram, and an Islamic State affiliate.
Boko Haram is known to be active in Niger State. MacDonald Dzirutwe reported from Lagos, Garba Muhammad in Kaduna and Ed Osmond edited the story.
(source: Reuters)