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France looks to accelerate grid connections for data centres
The French energy ministry announced on Thursday that it would allow large data center?projects temporarily to connect to underground cable systems, as part of a revamp of its 'grid connection system', in an effort to reduce 'development times and attract investment. France has, along with much of Europe, struggled to cope in recent years, as data centres race to connect to the grid and reach market. Bottlenecks have led to the creation of "ghost projects", in which?companies purchase grid slots for development that may not be built. This crowds out rivals, and allows slots to be traded on a first come, first served basis. The government's electrification plan stated that as a?short-term fix?, it is looking at allowing some large projects to be connected to the underground cable system. A government official told journalists that "having more data centres" in the country would also mean moving towards digital sovereignty, and the decarbonisation (decarbonisation) of the economy. The official stated that the temporary underground connection could be available as early as the end of the month. It would allow power to be provided for several large projects and help them meet their tight deadlines. The grid queue will take longer to be reorganized. The ministry said that the energy regulator CRE has been conducting a consultation and a decision is expected to be made by the end the year. The regulator wants to increase 'France's appeal for investors by cutting connection costs and delays. In some European countries, these can last up to a decade due to long queues. Reporting by Forrest Créllin. Mark Potter (Editing)
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Lee's visit to Hanoi will see South Korea and Vietnam sign dozens of deals
South Korean and Vietnamese companies will reportedly'sign dozens of deals on Thursday, according to two sources in the Korean media. These non-binding corporate deals and contracts will follow the previous day's signing of 12 co-operation pacts between Lee and Vietnam’s top leader To Lam, which included one about Korean investment in a nuclear plant in southern Vietnam. Lee, after the meeting, said that "our two countries will enhance cooperation in joint research and talent-development in semiconductors and secondary batteries as well as biotechnology." He added that among the deals set to be announced on Thursday is a contract for supplying?rolling stocks to Ho Chi Minh City’s urban rail system. Hyundai Rotem announced that it had won orders for about $332 Million for a three-phase rail system in the city. South Korean media reported that the pact was one of more than 70 in various?industries,?ranging from consumer goods, advanced technology, infrastructure, and energy to finance. Two people familiar with plans confirm that dozens of business agreements are expected to be signed during the visit. The information they provided was not publicly available, so the people who spoke to them requested anonymity. SAMSUNG IS ONE OF THE DELEGATES ATTENDING THIS EVENT After a trip to India, Lee is accompanied by more than 100 Korean firms with operations in Vietnam, according to officials and the media. They added that these include Samsung Electronics as well as SK, LG, Lotte and POSCO Holdings. Samsung is the most prominent company in Southeast Asia after investing more than $20 billion over the past decades. Sources familiar with the talks have reported that it has made recent progress in years-long discussions?with Vietnamese officials for a potential back-end semiconductor plant. The central bank of Vietnam announced on Wednesday that it had granted a license to Industrial Bank of Korea for the opening of a fully-owned subsidiary in Vietnam. State media reported that Lee had asked Le Minh Hung to assist in resolving issues faced by Korean businesses in Vietnam, and 'open the door for their participation in strategic infrastructure projects. Korean companies raise issues such as tax refunds, access to incentives for investment and the rising wages of Vietnamese workers, which have been pushed by an influx of Chinese factories. $1 = 1,481.5000 won (Reporting and editing by Clarence Fernandez, Joyce Lee and Francesco Guarascio in Hanoi; Khanh Vu at Seoul)
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Japan's ethylene plants run rate reaches record low of 68.6% during March
The Japan Petrochemical Industry Association said that the utilisation rate for ethylene plants fell to a new record low in March. This was due to producers cutting output 'in anticipation of feedstock supply difficulties' and 'due to scheduled maintenance. Japan has 12 ethylene factories that convert naphtha (a crude oil byproduct) into basic chemicals like ethylene and propylene. These are used as intermediates to make resins, for example. Japan imports a little over 40% of its naphtha and depends on the Middle East for 95% of its crude oil, which is used to refine its own naphtha. The blockade of Strait of Hormuz has hampered procurement. An official from the JPCA stated that, due to the uncertainty of?naphtha supplies and the high costs associated with stopping and restarting crackers and maintaining the supply chain, producers are maintaining their operations at reduced run rates. The 68.6% rate of utilisation in March was the lowest recorded since January 1996. The minimum rate required to sustain operations is different for each plant but it's generally around 70%. Four units were undergoing maintenance in March, as opposed to none a year ago. This resulted in a total ethylene production of 272,600 tons, which is -38.8% lower than the previous year. The official said that shipments of major ethylene-derived resins such as polyethylene, polypropylene, and polystyrene were almost flat compared to a year ago, with inventory reductions supporting the decline. He added that stocks of these key products are sufficient to "meet the domestic demand" for at least three months. Manufacturers are increasingly concerned about the shortage of naphtha, a vital feedstock for petrochemicals. Despite government assurances that there is enough stock on hand, dozens of companies have announced actual or potential order stops earlier this month. (Reporting and editing by Yuka Obayashi)
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The Gulf market has been affected by the stalled US-Iran Peace efforts
The majority of Gulf stock markets fell on early Thursday trading in response to the stalled talks between Iran and the 'States. Both sides are still imposing restrictions on trade through the Strait of Hormuz. Iran seized two vessels in the Strait of Hormuz on Wednesday. This increased its control over this key shipping route, just one day after Donald Trump announced that he would suspend all attacks indefinitely. There was no indication, however, that peace talks were to resume. Mohammad Baqer Qalibaf, the top negotiator said that a complete ceasefire could only be achieved if there was an end to the blockade. Brent crude is now above $100 per barrel, as a result of the global oil supply pressure. The conflict in the Middle East, which has been ongoing since February, continues to cause economic strain and casualties. Saudi Arabia's benchmark Index fell 0.2% due to a 0.5% drop in Al Rajhi Bank. Saudi Aramco, the oil giant, gained 0.6%. Brent crude futures increased $1.26 or 1.2% to $103.17 per barrel. The Qatari Index?was down by 0.1%. First Abu Dhabi Bank dropped 0.3% in Abu Dhabi after the United Arab Emirates’ largest lender reported a first-quarter profit of 5.01 billion dirhams ($1.36billion), down by 2% on an annual basis. LSEG data shows that the quarterly profit was still higher than analysts' expectations of 4,38 billion dirhams. Dubai's main stock index rose 0.3% thanks to a 1.7% increase at Emirates NBD Bank, which reported an increase in quarterly profit. The top lender in the emirate?by assets? reported a 3% increase in its first-quarter profits to 6.4 billion Dirhams. This is up from 6.2 million dirhams one year ago.
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Lee's visit to Hanoi will see South Korea and Vietnam sign dozens of deals
South Korean and Vietnamese companies will sign dozens of business deals on Thursday. This is according to two sources, the Korean media, and President Lee Jae Myung, who is visiting Hanoi. The non-binding corporate deals and contracts will follow the 12 agreements signed by Lee with Vietnam's leader To Lam on the previous day. One of the agreements was for Korean investment in the new nuclear power plant in southern Vietnam. Lee, after the meeting, said that "our two countries will enhance cooperation in joint research in semiconductors and secondary batteries as well as biotechnology." He added that among the deals to be announced on Thursday is a contract for rolling stock to be supplied to Ho Chi Minh City’s urban rail system. South Korean media reported that it was one of over 70 pacts spanning industries from consumer goods, advanced technology, infrastructure, and energy to finance. They did not identify any specific companies. Two people familiar with plans confirm that dozens of?business deals were expected to be made during the visit. The information they provided was not publicly available, so the two people who confirmed it requested anonymity. After a trip to India, Lee is accompanied by more than 100 Korean firms with operations in Vietnam, according to officials and the media. They added that these include Samsung Electronics SK, LG Lotte POSCO Holdings HD Hyundai and HD Hyundai. Samsung is the most dominant company in Southeast Asia after investing more than $20 billion over the past 20 years. Sources familiar with the discussions have reported that it has made recent progress in years-long negotiations with Vietnamese authorities about a possible semiconductor factory. The central bank of Vietnam announced on Wednesday that it had granted a license to Industrial Bank of Korea for the opening of a 100%-owned subsidiary in Vietnam. State media reported that Lee requested Le Minh Hung, Prime Minister of Vietnam, to assist in resolving issues faced by Korean businesses in Vietnam. Korean businesses raise questions about access to incentives for investment, tax refunds, and the rising wages of Vietnamese workers, which have been pushed by an influx of Chinese factories. Reporting by Francesco Guarascio in Hanoi and Khanh Vu, Joyce Lee in Seoul. Editing by Clarence Fernandez.
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Fuel costs are increasing, so airlines are reducing their prices and cutting back on their outlook.
The U.S. and Israeli war against Iran, which has pushed up jet fuel prices, has shook the aviation industry around the world. Airlines have been forced to increase fares and revise financial forecasts. In recent weeks, jet fuel prices have increased from $85-$90 per barrel up to $150-$200 per barrel. This is a major financial blow to an industry that relies on fuel for up to one quarter of its operating costs. Here is an alphabetical list of the ways airlines are responding to this issue: AEGEAN AIRLINES The Greek airline anticipates that the suspension of Middle East flights, as well as a spike in fuel costs, will have "significant impact" on their first-quarter earnings. AIRASIA X Malaysian Airlines'?executives stated that the company has cut 10% of its flights in the group and imposed a fuel surcharge of around 20%. AIR CANADA The Canadian largest airline plans to reduce four of its daily flights to New York to 38 due to rising fuel prices. The four flights from JFK International Airport to be cut between June 1, 2026 and October 25, 2026. AIR FRANCE-KLM The airline group announced that it would increase the price of?long-haul tickets to offset rising fuel costs. Cabin fares will rise by 59 euros (50 euros) per round trip. KLM, the Dutch arm of the group, announced on April 16 that it would cancel 160 flights across Europe due to rising fuel prices. AIR INDIA The Indian airline said that it will change its fuel surcharge system from a flat surcharge for domestic flights to one based on distance. The Indian carrier said that surcharges for international routes do not compensate the steep rise in fuel costs. AIR NEW ZEALAND On April 7, the airline announced that it would cut flights in May and June, and raise fares. It was one of the first airlines to announce a large increase in ticket prices after the conflict began. The airline also suspended its earnings forecast for the full year due to volatility in the fuel markets. AIR TRANSAT The Canadian airline announced that it would reduce its planned capacity by 6 percent from May to October of this year. Cuts are expected to be made on routes to Europe, the Caribbean, and Cuba. AKASA AIR Akasa Airlines, based in India, announced that it would be introducing fuel surcharges ranging from 199 to 1,300 Indian Rupees ($2 - $14) for domestic and international flights. ALASKA AIR The airline retracted its profit forecast for the full year and warned that margins would be severely impacted by the sharp increase in fuel prices. It has also reduced capacity in certain markets. AMERICAN AIRLINES U.S. airline announced that it will increase the fees for checked baggage by $10 for each of the first two bags and $150 for the third bag for domestic and short-haul flights. The airline also reduced certain benefits for passengers in economy class. ASIANA AIRLINES Newsis reported that the South Korean airline would cut 22 flights from April to July because of fuel price increases. CATHAY PACIFIC According to a termsheet seen on Wednesday, the airline raised HK$2,08 billion ($265,58 million) by issuing three-year fixed rate notes with a yield of 3.78%. CEBU AIR The Philippines-based carrier said that the sharp rise in fuel prices is a major concern. It will continue to review pricing and network strategies and try to minimize the impact. CHINA EASTERN EXPRESS AIRLINES The airline announced that it would increase fuel surcharges on domestic flights starting April 5. Flights of less than 800 km will be charged a 60-yuan fee ($9), while flights above 800 km will be charged a 120-yuan charge. DELTA AIR LINES Delta announced that it would reduce capacity by 3.5 percentage points compared to its original plan, and raise fees for checked baggage in order to offset the rising costs of jet fuel. The increase will be $10 for first and second bags, and $50 on third bags. The U.S. carrier pulled all planned growth in capacity for the current quarter, and forecast profits below Wall Street expectations. EASYJET EasyJet has warned that it will suffer a larger half-year loss before tax of between 540 and 560 millions pounds (729 and 756 million dollars), which includes 25 million pounds of extra fuel costs for March. FRONTIER AÉRIENS Fuel prices have risen significantly since the airline's last forecast, prompting it to review its full-year outlook. GREATER BAY Airlines The Hong Kong-based firm said that it will increase fuel surcharges for most routes starting April 1, but keep them the same on routes to mainland China and Japan. HONG KONG Airlines Fuel surcharges will be increased by up to 35 percent on flights from Hong Kong to the Maldives, Bangladesh, and Nepal. British Airways' owner IAG stated in March that it did not intend to increase ticket price immediately as it had hedged a large amount of fuel for the short to medium term. INDIGO India's largest airline announced that it will introduce fuel charges for domestic and international flights starting March 14. The charge for flights into the Middle East is 900 rupees and for flights into Europe, 2,300 rupees. JETBLUE AERWAYS Joanna Geraghty is the CEO of the low-cost airline based in the United States. She told her employees, via a memo, that she would not be considering bankruptcy this year despite the fact that rising jet fuel prices threaten the financial recovery. According to a SEC filing, the company has entered into a debt financing agreement worth $500 million. KOREAN AIR Sources with knowledge on the subject say that South Korean carriers will be forced to enter emergency mode in April due to rising fuel prices. LUFTHANSA The airline group announced that 20,000 short-haul flight would be removed from the schedule until October. This is equivalent to 40,000 metric tonnes of jet fuel. The German company had previously announced that it would be grounding 27 aircraft servicing its CityLine short-haul subsidiary earlier than expected. PAKISTAN INTERNATIONAL FLIGHTS Fuel surcharges are cited as the reason for raising domestic fares up to $20 and international flights by up $100. QANTAS AIRWAYS Qantas, an Australian airline, said that it has delayed a planned A$150-million ($107-million) buyback. It also increased its fuel estimate for the second half 2026 from A$2.5-billion to A$3.1-3.33 billion. After cancelling "couple hundred flights" in March, the Scandinavian airline announced that it would cancel 1000 flights in April due to high fuel and oil prices. SPIRIT AIRLINES Air Current cited people familiar with the situation to report that the U.S. low cost carrier requested hundreds of millions in emergency funding from the Trump administration to offset the rising fuel prices and prevent a potential liquidation. SPRING AIRLINES Budget Chinese airline announced that it will increase fuel surcharges for domestic flights starting April 5. Details to be announced in due course. SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES Fuel prices have impacted the margins of this American airline, which has forecast a second-quarter loss below expectations. The airline had previously announced that it would increase the cost of checked bags by $10 each for the first and the second bag. This will bring the total to $55 and $45 respectively. The Portuguese airline claimed that its price increases would partially offset the impact of fuel prices changes on its revenues. THAI AIRWAYS The Thailand-based airline said that it would increase fares between 10% and 15% in order to combat rising fuel prices. The European airline, tour operator and travel agency cut their full-year underlying profit outlook and suspended revenue forecasts, claiming that they had incurred extra costs of about 40 million euros due to the March war, including repatriation and operational disruptions. TURKISH AIRLINES LUFTHANSA SunExpress is a joint venture of Turkish Airlines and Lufthansa. It announced that it would be imposing a temporary fuel charge of 10 euros per person on routes between Turkey, Europe and the Middle East, starting May 1. The fuel surcharge will be applied to all bookings made after April 1, for departures after May 1. Turkish Airlines announced on April 10, that it would not be distributing any dividends from its net profit for 2025, instead opting to "retain earnings in order to preserve cash". T'WAY AIR As part of the measures taken to combat the effects of war, the South Korean low-cost airline said that it would furlough cabin crew in May and/or June without pay. UNITED AIRLINES Scott Kirby, CEO of the U.S. airline, said that ticket prices could rise as much as 15% to 20% in order to offset an increase in jet fuel costs. The company has already implemented five fare hikes late in the first-quarter, along with increased baggage fees that it says have begun to offset rising fuel prices. The carrier forecast that it would also make profits in the second and third quarters below Wall Street expectations. It said they expected to recover just 40-50% of fuel price increases through fares in the second, but 70-80% by the third. VIETJET Vietnamese budget airline has announced that it has adjusted flight frequencies on certain routes due to possible fuel shortages. VIETNAM Airline Vietnam's aviation authority announced that the carrier will cancel 23 flights a week on domestic routes starting in April after it requested assistance from the government to remove an environmental tax on jet fuel. VIRGIN ATLANTIC Corneel Kster, the CEO of the airline, told The Financial Times that despite adding fuel surcharges on fares this year it will struggle to achieve profitability. VIRGIN AUSTRALIA Virgin Australia has said that it expects an increase of jet fuel costs of between A$30 and A$40 million in the second half of the fiscal year. It also anticipates a 1% decrease in capacity for the fourth quarter. VOLOTEA The Spanish low cost airline has introduced a new pricing strategy that links ticket prices with fuel costs. This could add an additional surcharge after purchase of up to fourteen euros per passenger per flight. The Globe and Mail reported that WESTJET, a Canadian airline, has reduced seat capacity in June. The Canadian Press reported previously that the airline would add C$60 ($44.50) to certain bookings, and combine flights due to rising costs.
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Bank FAB's quarterly profit in UAE drops slightly, but still beats expectations
First Abu Dhabi Bank, the UAE’s largest bank by assets, announced a net profit for the first quarter of 5,01 billion dirhams (US$1.36 'billion), down 2% from last year, but operating profit and operating income both increased. The Iran war has caused a global disruption in energy supplies and damaged energy infrastructure. This has affected oil and?gas producers in the?Gulf?. The bank stated that net profit was impacted by 300 million dirhams in "prudent managerial overlays" and that, without these overlays net profit increased by 3% year-on-year. The lender stated that the net impairment charges increased from 724 million dirhams to 1.1 billion, including the overlays "in response to an evolving external environment". The lender did not provide any further information. LSEG data shows that the quarterly profit was still higher than analysts' expectations of 4,38 billion dirhams. Last month, the UAE Central Bank announced measures to support banks' liquidity. These included?an enhanced access to reserve balances up to 30% of cash reserve requirements and term liquidity in both dirhams (the local currency) and U.S. dollar. Bank FAB's Operating Income grew by 6% to 9.34 billion Dirhams over the previous year period, while the operating profit grew by 5%. Deposits rose by 4% and loans grew by 8%. At the end of March total assets had reached 1,49 trillion dirhams, up 6% on a year-to-date basis. "We will continue to focus our efforts on our strategic goals, using a diversified funding base, strong capital position and liquidity buffers to navigate the global market from a place of strength," said Group CEO Hana Al-Rostamani in a press release. According to LSEG data, Bank FAB is owned by Mubadala, the sovereign fund of Abu Dhabi and by the Abu Dhabi royal family. The International Monetary Fund has revised its UAE growth forecast to 3.1% by 2026. This is almost 2 percentage points lower than the previous October's estimate. Next year, it expects a 5.3% increase.
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Asian shares fall from record highs on oil gains due to Iran risk
Asian shares fell from record highs Thursday, as oil prices 'extended their gains due to renewed shipping problems?in Gulf. This underscored fragile risk sentiment in the face of a 'peace deal that eludes both the U.S. European stocks are preparing for a weaker opening, with panregional futures down 1,1%. Wall Street futures fell 0.5% in Asia. Overnight, S&P 500 rose 1%, and Nasdaq rose 1.6%, to set new record-closing heights. This was helped by the strong start of earnings season, which has eased consumer concerns over the U.S. economy despite the rising cost of energy due to the "Iran War". MSCI's broadest Asia-Pacific share index outside Japan, which tracks Wall Street, had risen to an all-time high of 831.56 but soon began to sell. Last down 0.5%. Nikkei, the Japanese stock index, reached a new record for the second consecutive day. It then fell 0.9%. Taiwan and South Korea's markets also reached new highs before turning lower. Hong Kong's Hang Seng index fell 1.1% and China's blue chip index dropped 0.8%. Brent crude futures rose another 1.4% to $103.3 per barrel on Thursday, after soaring 3.5% overnight and crossing back over $100. Iran on Wednesday 'captured' two container ships that were trying to leave the Gulf through the Strait of Hormuz. Investors are watching the Middle East ceasefire, which is fragile, to see if it will last. The markets are on edge. "We are still in the no-war no-peace area, which means that even an unverified fear of escalation could jolt crude oil and send risk assets down," said Charu C. Chanana. Chief investment strategist at Saxo. Oil's rise, even without any clear trigger, shows that investors are still highly sensitive to tail risks. Overnight on Wall Street, shares of GE Vernova surged 13.75% after the power equipment maker raised its annual revenue forecast on the AI boom, and Boeing advanced over 5% after ?a smaller-than-expected quarterly loss. Tesla, the electric automaker, reported a positive surprise in its free cash flow for the first quarter. However, investors were sceptical about the company's projections of?sharply higher spending plans on AI and robots, which led to a 2% drop in shares after the bell. Treasury yields increased with oil prices. After a slight increase of 1 basis point on Wednesday, the yield for two-year U.S. Treasury bonds rose by 2 basis points to 3.8106%. The 10-year yield rose 3 bps to 4.3214% after being little changed overnight. The dollar held onto its small overnight gains. The euro remained steady at $1.17 after losing 0.3% overnight. It was just above the 10-day low of $1.1691. The risk-sensitive?Australian Dollar fell 0.2% to $0.7147. Markets are remarkably good at 'looking through risk. This may continue. The list of risks continues to grow as solutions remain elusive, said Laura Cooper. Global investment strategist for asset manager Nuveen. "The dissonance can't last forever... At some stage, what's being ignored may become the only thing that matters." (Editing by Kim Coghill & Shri Navaratnam).
The British Investment Initiative (BII) aims to invest $20 billion over the next five years
The chief executive of Britain's Development Finance Institution said that the institution aims to invest 20 billion pounds (15 billion dollars) in climate and other projects within five years by enlisting more private sector participation.
British International Investment (BII), which assists developing economies to reduce poverty and to respond to global climate change, will invest directly up to 8 billion pound of its own capital. This is roughly in line with its previous 5-year plan's lower target range.
BII CEO Leslie Maasdorp stated that for every pound invested by the UK?government owned BII, they aim to attract another pound of private investors, such as pension funds, asset?managers and insurers. This is about 40% more money than was raised in the prior period.
The drive to attract more private capital comes as international development institutions are under increasing pressure from richer countries including Britain who have cut official development aid in part to boost spending on defense.
Everyone in the G7 is facing declining capital injections because they have to spend more money on defence. Maasdorp stated that this has led to a reworking of the business model in favor of private capital investments.
Private capital mobilization was once a nice thing, but now it's a necessity. OECD data published earlier this month revealed a record-breaking drop in overseas aid by the richest nations of the world, including the UK.
BII and other development finance investors want to encourage private sector investment. They do this by offering to assume more risk in the event of a project's failure. BII, whose mandate extends from Africa to Asia to the Caribbean, has also launched a new 1.1 billion pound initiative called British Climate Partners. This initiative aims to reduce the reliance of countries like India and Vietnam on coal.
BII aims to direct a minimum of a quarter (by value) of all new investment towards countries classified as Least Developed by the United Nations, including Sudan, Uganda and Bangladesh.
Climate change is a major threat to many countries.
The BII stated that the share of new investment going to climate-focused projects in the next five years would increase from 30% to 40%, and those focused on women's empowerment from 25% to 30%.
The company will also look for opportunities to develop an entire market or sector, rather than a single business, in areas such as financial services, energy, trade, and digital infrastructure.
(source: Reuters)