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French spot prices rise due to higher demand and falling wind output
The French spot price rose on Monday as a result of an expected rise in electricity consumption, while the wind power generation is expected to decrease throughout the region. LSEG data show that the price for French baseload electricity for Tuesday at 0835 GMT was 19 euros ($21.51). This is up from a Friday closing price of 10 euro per MWh for delivery on Monday. Data showed that the German equivalent contract had not yet begun trading. Data showed that the contract for Monday deliveries had not also traded on Friday. In line with the overall bullish trend, France's residual loads are expected to be the most significant gains in the region Tuesday. Riccardo Paraviero, LSEG analyst, stated that the signal for tomorrow was sideways to bullish for Germany. This is due to the higher demand at home and the "significant" increase in residual loads in the neighbouring regions. He added that Germany will be a net-exporter during the sunny hours of Tuesday, due to increased solar power production. LSEG data indicated that the German wind output is expected to drop by 820 megawatts to 13 gigawatts on Tuesday, while French output will be reduced by 1.1 GW down to 9 GW. The data indicated that the German solar generation is expected to increase by 1.6 GW to 13.1 GW on February 2. On Tuesday, power consumption in Germany will increase by 1.3 GW - to 54.2 GW - while in France it is expected to rise by 1.6 GW – to 45.1 GW. The French nuclear capacity has increased by two percentage points, to 63%. The German baseload power for the year ahead increased by 0.2%, to 84 Euros/MWh. In France, it was between 62 and 64.3 Euros. The benchmark carbon contract in Europe was down by 0.8% to 68.24 euro per metric tonne. $1 = 0.8832 Euros (Reporting and Editing by Varun K K; Reporting by Alban Kcher)
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EUROPE GAS - Dutch prices are easing, but the market is seeking direction
Dutch wholesale gas prices fell on Monday, despite cooler weather conditions, lower renewable energy generation, and possible Asian demand for liquefied gas. According to LSEG, the benchmark Dutch front-month contracts was down 0.47 euros at 32.70 Euro per megawatt hour MWh, or $/10.98 mmBtu at 0838 GMT. Due to a British holiday, the British market will be closed, which may dampen overall trading activity. A drop in oil price could also affect wider sentiment. Analysts at Engie EnergyScan stated in a recent report that Dutch prices had fallen a bit, but that the market was still uncertain about the direction of the price. They said that the cooler temperatures and lower renewable output of energy this week will support gas demand in heating and power generation. Analysts also noted that Bloomberg reported Chinese LNG buyers have resumed buying cargoes on the spot market as prices are falling. They added: "These purchases would support prices if they are confirmed." Europe and Asia are competing for cargoes on the global market. Gas Infrastructure Europe reports that the European Union's gas storage facilities are currently 40.74% full. Greg Molnar said that storage injections had increased by 70% since the end April, when compared with the same period last year. The EU is on track to meet its target of 80-90% by the start of the next heating period, but it depends on the amount and quality LNG that comes to Europe, the Chinese demand for super-chilled fuel, and the European gas-for power consumption. The EU is expected to announce on Tuesday a roadmap for the phase-out of its remaining gas relations with Moscow. It has committed to ending these ties by 2027. However, legal options are limited. The benchmark contract on the European carbon markets fell by 0.51 euros to 68.23 euro per metric ton. Nora Buli reports from Oslo. Mark Potter edited the article.
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Oil falls, Taiwan's Dollar surges as central banks pack the week
Oil prices fell over 2% Monday, after the oil-producing group OPEC+ decided to increase oil production. Meanwhile, Taiwan's dollar surged up to nearly three-year-highs as world markets began a week of central banks. European shares were just below Friday’s one-month highs, while U.S. Equity Futures fell and overall trading was subdued due to public holidays in Japan China and Britain. Brent crude and U.S. West Texas Crude futures each fell by more than $1 after a decision made by OPEC over the weekend to increase oil production. This decision fueled concerns about an influx of more supply into a market that is clouded with uncertainty due to a lackluster demand outlook. The U.S. Federal Reserve meeting and the Bank of England meeting later this week are the main focus of attention as the markets await to see what the major central banks think about the growth and inflation outlook following the increased uncertainty caused by the U.S. Tariff policy. Donald Trump, President of the United States, said that on Sunday, the United States met with a number of countries, including China, to discuss trade deals. His main priority was to get a fair deal with China. In recent days, optimism about a possible de-escalation in trade tensions between China and the U.S. has helped boost markets. European shares are trading at levels just below those seen before Trump’s major tariff announcement on April 2, which roiled the markets. Jan von Gerich, Nordea’s chief market analyst, said that if trade agreements do not meet expectations there will be downside risk for the markets. The S&P 500 index has recovered around 17% since its more than one-year-old lows last month. TAIWAN DOLLAR SURFACE The Taiwan dollar was the star of the currency market after two straight sessions of strong gains against the U.S. dollar. The Taiwan dollar is poised to make its largest single-day increase against the U.S. Dollar since the 1980s. It could rise as high as 29,59 per U.S. dollars. Last trading was at 30.04. The 3% increase on Monday has fuelled speculation about a revaluation to gain U.S. concessions in trade and highlights a wider re-rating the economic prospects of the region. The Taiwan dollar has appreciated at a rate I have never seen before, said a senior executive in the financial sector of Taiwan. He spoke on condition that he remain anonymous as he was not authorized to address the media. The central bank allows hot money to enter Taiwan. Taiwan's Office of Trade Negotiations said on Monday that the U.S. tariff talks last week with Taiwan did not include the exchange rate, and Taiwan's central banks also did not participate in the discussions. The dollar fell 0.5% to 144.16yen, while the euro gained 0.21% in London, despite a UK holiday. The market is focused on this week's Federal Reserve meeting, where rates are expected to remain unchanged. Trump said that he will not remove Jerome Powell from his position as Federal Reserve chair before the end of Powell's term in May 2026. He called Powell "a total stiff", and repeated calls to the Fed for interest rate reductions. Nordea's von Gerich said, "The Fed is the main event and what is going on in politics is not forgotten." In Europe, attention was focused on Romania, where the hard-right eurosceptic George Simion has won the first round in Romania's presidential rerun election on Sunday. Political observers claim that a Simion win could isolate Romania, undermine private investment, and destabilise NATO’s eastern flank where Ukraine is fighting an invasion by Russia dating back three years. Reporting by Dhara Raasinghe. Wayne Cole contributed additional reporting from Sydney. Mark Potter (Editor)
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Volvo Cars sales slump 11% in April due to the decline of fully electric vehicles
Volvo Cars announced on Monday a 11% decline in April sales, to 58.881 vehicles, compared with a year ago, which sent its shares lower. Volvo Cars, owned by China's Geely and majority-owned, reported in a press release that sales of electric vehicles fell 32%, accounting for only 20% of the total volume of sales. The sales of all electrified vehicles, including plug-in hybrids and electric cars, fell by 16%, accounting for 45%. Volvo Cars under pressure from Donald Trump's new administration Tariffs Juggling is the task Working with Geely, to reduce costs and continue to sell cars to American consumers who prefer hybrids and combustion engine models. Despite stiff competition from Chinese automakers who sell more affordable EVs, the Sweden-based company wants to win Chinese customers along with its European counterparts. In April, shares of Volvo Cars rose by a staggering 45%. Withdrawal In the morning, its earnings forecasts for the next two-years in face of tariffs were down by 3%, bringing the year-to date slump to 29%. The company didn't provide any details on regional sales.
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Official: India Government finalising response after top court cancels JSW Steel-Bhushan Deal
A government official revealed on Monday that the Indian government had discussed with banks an order by a court to cancel JSW Steel’s four-year old buyout of Bhushan Steel and Power, and was finalising its response. The Supreme Court nullified JSW’s takeover of Bhushan Steel four years ago, under the country’s insolvency laws, and ordered its liquidation. This affected the deal’s bankers who had been paid. "I've already discussed (the order with) all lenders." We have taken a stance, we've studied the judgement and we've gotten our lawyers' opinion on the judgment," M Nagaraju said, secretary of India's Department of Financial Services. We are now deciding in the government how we will approach the judgement. We will be finalising soon." Bhushan Power had a debt of over 470 billion rupees (5.58 billion dollars) to its creditors at the time it was shortlisted by the Reserve Bank of India in 2017 to be admitted to the country's Insolvency and Bankruptcy Code (IBC). JSW Steel was the winner of the resolution application with a bid of 197 billion rupees ($2,35 billion) for Bhushan power. The acquisition is expected to be completed by 2021. JSW Steel shares fell around 1% Monday after dropping 5.5% on Friday. JSW announced to the exchanges that it would decide its next course of action on Friday.
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The global sustainability head at RPT-HSBC Asset Management will depart
HSBC announced on Friday that the top executive in sustainable finance at its asset management division will be leaving the company. This is the latest departure from the bank during a period of restructuring under the new chief executive. Erin Leonard's departure as global head of sustainability for HSBC Asset management follows that of Celine Herweijer who left the bank at the end last year. The bank is reassessing its environmental, social, and governance policies under Georges Elhedery, CEO. Both before and after Donald Trump's election, there has been a growing pushback in the United States against ESG. HSBC is one of the mid-sized banks that focuses on international corporations. Many financial firms have reduced their commitments to climate change and other issues. Leonard was the head of HSBC Asset Management’s Sustainability Office. This office, created in 2021, is responsible for managing its sustainable investment efforts and strategy. She was also in charge of the company's diversity, equity and inclusivity initiatives. A spokesperson for the asset manager stated that the responsibilities of this office had been spread across other businesses in the asset management division. Other sustainability-related initiatives have been consolidated under the Responsible Investment team led by Cathrine de Coninck-Lopez, the spokesperson added. Leonard was also a member of asset manager's Management Committee, but it is unclear if she has been removed. HSBC refused to comment. Elhedery, who assumed the role of CEO six months ago, has made a number of changes to the bank. He has reduced the number senior managers in the bank and reorganized operating divisions. By the end of 2026, the bank will have saved $1.5 billion annually. This is equivalent to 8% of its total staff costs. HSBC angered campaigners by abandoning its goal of achieving net-zero emission across its businesses by 2030 due to the slow pace in which the real economy is changing. The bank said on Friday that it is still committed to becoming a zero-emission bank by 2050. It has also begun to review its emission targets and policies. The bank also hired new executives including Danny Alexander, a former UK politician to lead a new unit that focuses on infrastructure financing and project finance related to the low carbon transition. In 2024, HSBC Asset Management will manage $179 billion of ESG and sustainable investments strategies. It is also a signatory to the Net Zero Asset Management initiative, a U.N. backed group of asset management companies working to align investment to net zero. (Reporting and editing by Virginia Furness, Simon Jessop, and Nia William)
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PMI data shows that Saudi Arabia's growth in the non-oil sector slowed down in April.
A survey released on Monday showed that Saudi Arabia's private sector non-oil activity expanded at a slower pace in April due to a sharp slowdown in the growth of new orders, while hiring rates were at their highest level in over a decade. The Riyad Bank Saudi Arabia Purchasing Managers' Index slid from 58.1 to 55.6, its lowest reading since August last year, down from 58.1. It is still firmly in the growth zone. The third consecutive month of decline in the new orders subindex, from 63.2 to 58.6, reflected the global economic uncertainty and the competitive pressures. Naif Al Ghaith is the chief economist at Riyad bank. He said that while output growth remains strong, it has been somewhat dampened by global economic uncertainty and pressures from competitors affecting consumer spending. "Despite this, the employment figures are still on the rise, showing a consistent growth trend since May last year." Businesses increased their staffing to meet the demand. The rise in employment is a result of rising sales and business activities. The survey found that the level of business optimism was lower than the average over the course of the survey. Saudi Arabia's economy grew by 2.7% in its first quarter. This was largely due to the growth of the non-oil sectors as the country continues its diversification away from hydrocarbons. The state statistics authority has expanded and updated its data collection in order to align the data with international standards. Reporting by Hugh Lawson; Editing by Hugh Lawson
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Australian Energy Group Congratulates Re-Elected Albanese Government
Australia’s oil and gas industry congratulates Prime Minister Anthony Albanese on Federal Labor’s re-election on Saturday and looks forward to continuing to work with the Government on necessary reforms for Australia’s long-term energy security and economic growth.Australian Energy Producers Chief Executive Samantha McCulloch said the decisive election result provided an opportunity for energy policy certainty and stability in the next term of Parliament. “Australia and our region’s economic growth and energy security needs reliable and affordable gas supply which requires continued investment in new gas exploration and development,” McCulloch said.“We look forward to working with the Albanese Government on advancing the shared goal of boosting Australian gas supply to ensure reliable and affordable energy for Australian homes and businesses.”McCulloch said the Government needed to address the regulatory delays and uncertainty in the environmental approvals system. “Australia has abundant gas resources, yet we face gas shortfalls this decade due to regulatory uncertainty, approval delays and policy interventions that have delayed new gas supply and damaged Australia’s investment competitiveness. Addressing these risks must be a priority for the new Parliament.” Australian Energy Producers has outlined key actions to unlock the economic, energy security and emissions reduction potential of Australia’s gas sector:• Boost Australian gas supply to ease cost of living pressures• Restore Australia’s global competitiveness for investment• Deliver real emissions reductions with gas and carbon capture, utilization and storage (CCUS)• Remain a reliable energy partner in our region.McCulloch said the election showed Australians do not support the Greens’ reckless policies, including a ban on new gas projects which would put Australia’s energy security at risk and drive-up energy costs.“With cost-of-living top of mind for voters, the Greens cannot be allowed to continue to hold legislation to ransom in the Senate,” McCulloch said. The Greens look likely to win two seats in the House of Representatives, when in 2022 they won four. Labor is on track to have 27 senators, the Coalition 26, the Greens 11, with others making up another six.
World Bank prices $225 million bond connected to Amazon reforestation
The World Bank provided a. $ 225 million, principalprotected nineyear bond connected to. reforestation in the Amazon, the worldwide loan provider stated on Tuesday,. calling it the biggest outcome bond it has actually ever priced.
The 2033 bond uses financiers a return linked to the. production of carbon removal units from reforestation initiatives. in Brazil's Amazon jungle, stated the bank.
The World Bank said this issuance marks the very first bond to. link financiers' financial go back to carbon removal, a departure. from previous offers tied to the sale of carbon credits from. avoided emissions.
Close to $36 million will be directed to support the. reforestation activities of Mombak, a Brazilian company working. with regional landowners to replant native tree types in the. Amazon. Separately, Microsoft consented to purchase the. carbon removal units.
The bond is 100% principal-protected, with the $225 million. earnings used to back the World Bank's sustainable development. initiatives worldwide, the loan provider stated.
The problem has a minimum surefire annual return of. about 1.745%, and approximately 4.362% if the tasks perform as. expected, according to the World Bank.
As demonstrated by the historic level of participation in. today's transaction, personal investors are eager to link. their monetary return to positive development outcomes in the. Amazon region, said Jorge Familiar, vice president and. treasurer at the World Bank.
With this biggest ever result bond we continue to be. encouraged by the growing interest in the structure along with. the expanded list of sectors supported.
The bond, issued by the International Bank for. Reconstruction and Development, was priced at par and will. fully grown on July 31, 2033. Settlement is scheduled for Aug. 20.
(source: Reuters)