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Italy and Algeria reach agreement on terrorism and migration during summit
Documents show that during an intergovernmental gathering in Rome, Italy and Algeria signed agreements on energy, telecommunications, and fighting terrorism. After a visit to Algiers in March by Antonio Tajani, the Italian Foreign Minister Giorgia Melons met with Algerian President Abdelmadjid Tebboune. Italy reported that Algeria was Rome's top trading partner in Africa with trade valued at almost 14 billion euro ($16,4 billion), while Rome's investment there amounts to 8.5 billion. A document that was seen by us states that a memorandum on combating terrorism and financing will be signed between Italy, Algeria and Tunisia. The document didn't specify which threats were being addressed by the two countries. Both nations will agree to a plan for coordinating search and rescue efforts to save migrants from the dangers of crossing the sea from North Africa into Europe. Meloni’s right-wing coalition was elected to power in 2022 with a mandate of reducing migrant arrivals. Eni, the Italian energy company, signed this month a $1.3 billion production-sharing contract with Sonatrach to explore and develop hydrocarbons and oil in Algeria. The document stated that the two companies would sign an additional agreement to strengthen their collaboration on the sidelines the summit. Eni purchases gas from Sonatrach through a long-term agreement that has made this north African nation one of Italy's main fuel suppliers after Rome severed its ties with Russia’s Gazprom in response to Moscow's invasion into Ukraine. Separately, Sparkle Submarine Cable Company (TIM), a unit of Telecom Italia, will be sold by a consortium led the Italian Treasury in later this year. Sparkle has signed a preliminary agreement for a new submarine cable that will connect the two countries. The Foreign Minister Tajani stated that Algeria is a strategic partnership and that he was working to strengthen and diversify this relationship. He made the statement during a speech given at a forum of over 400 businesses from both nations. (Reporting and editing by Angelo Amante)
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Businesses deliver gloomy results even as markets celebrate Japan trade deal
The trade war between the United States and Japan, which has impacted businesses from chip makers to steel producers, caused a downturn in results. However, Japan's agreement lifted stocks as well as hopes that Europe could reach a similar deal. Investors cheered the news of a new trade agreement between Japan and the United States, which will lower tariffs on auto imports while sparing Tokyo from new taxes on other goods. This news sparked hopes of a deal being reached with the European Union before the Trump administration's August 1 deadline. Results from Texas Instruments, SSAB, and other steelmakers showed that the chaotic U.S. Trade Policy has already affected profits. It has also increased costs, disrupted supply chains, and impacted consumer confidence. Texas Instruments' earnings report for the quarter highlighted a weaker than expected demand from certain customers for its analog chips and tariff-related uncertainties. Texas Instruments and other chipmakers are not directly affected by Trump's tariffs. However, the price of chip-making equipment has increased, while some end customers have reduced their spending. ASM International, a Dutch manufacturer of computer chip equipment, warned late on Tuesday that the order intake by chipmakers was "lumpy". On Wednesday, its shares dropped 8.5%. Neil Wilson, an investment strategist with Saxo Markets, said that tariffs were hitting home. Investors around the world are anticipating a series of earnings reports this week. They hope that these will give them a glimpse into how companies are dealing with a variety of challenges, including tariffs, regulatory changes, currency fluctuations, fluctuating consumer spending, rising prices, conflicts in other countries, and volatile oil price. Companies have reported combined losses of $6.6 to $7.8 billion for the year between July 16-22, as the second quarter earnings season continues. The automotive, aerospace, and pharmaceutical sectors are the hardest hit by tariffs. General Motors, which reiterated its expectations of a tariff hit between $4 billion and $5 billion for 2025, accounted for the largest chunk. Nokia, a Finnish company, lowered its 2025 guidance late on Tuesday due to tariff headwinds as well as the weaker U.S. Dollar. According to CEO Johnny Sjostrom, the main issue for Swedish steelmaker SSAB is that tariffs cause more shipments to Europe of cheaper steel. In a press release, he stated that "the turbulence created by tariffs and trade obstacles resulted in an increased level of uncertainty", with the greatest impact being seen on the weakened European steel market. ASSISTANCE IN ELIMINATING FEARS The focus is on Washington, as countries scramble to complete trade agreements before the deadline next week. Under pressure from markets and intensive lobbying by industries, the White House has repeatedly refused. The threat of increased tariffs against other large economies, such as the European Union (EU), Canada, and Brazil, remains. Trump has also threatened to increase tariffs in certain sectors, including pharmaceuticals and chips. Analysts at Deutsche Bank said that the Japan deal was not the end. Tesla, Google parent Alphabet and Nestle, LVMH are among the largest companies that will report their earnings this week. The EU-China Summit on Thursday will test European unity and resolve as the bloc is under intense pressure from Beijing and the United States. Next week, U.S. Treasury secretary Scott Bessent will meet Chinese officials in Sweden.
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GE Vernova increases annual forecasts following second-quarter profit beating
GE Vernova, a maker of power equipment, raised its forecast for current-year revenue as well as free cash flow after exceeding Wall Street expectations on Wednesday. Its shares rose more than 4% during premarket trading. GE Vernova became independent after a three way split from General Electric last year. It raised its target for free cash flow to between $3 billion and 3.5 billion dollars, up to the earlier forecast of $2 billion to $2.5 million. They also expect 2025 revenues to be at the upper end of the range of $36 to $37 billion. The company's forecast also includes the impact of the tariffs imposed by President Donald Trump, in the current form, on the lower range between $300 million and $400 million, plus the inflation that results. The warning comes as the power industry braces for the impact that Trump's changing tariffs and policies will have on supply chains and costs, and threaten the future of offshore projects. According to data compiled and released by LSEG the company posted an adjusted profit per share of $1.77, exceeding analysts' estimates of $1.51, thanks in part to a strong performance by its power and electricification units. The U.S. Energy Information Administration predicts that power consumption in the United States will reach record levels in 2025 and in 2026. This is due to rapid expansions of AI and cryptocurrency datacenters, as well as an increase in demand from businesses and households. The core profit of GE Vernova’s power segment (which provides steam and gasoline turbines) increased by 27%, to $778 millions, while its electrification unit posted $332 million in profits, which is more than twice what it was a year earlier. The wind segment, which includes wind turbines, blades, and services, suffered a loss of $165m in the second quarter. This was due to higher service costs and tariffs at Offshore Wind. (Reporting and editing by Shinjini Ganuli and Pooja Deai in Bengaluru. Katha Kalia, Sumit Saha)
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Greece will draft urgent reforms in order to address water scarcity, says PM
The rapid decrease in water levels of Greece's reservoirs shows the water scarcity issues the country faces due to climate changes, said Prime Minister Kyriakos Mistiakos on Wednesday. Urgent reforms are required. Mitsotakis informed ministers that the water level in reservoirs that feed the capital Athens has dropped by 50%. The meeting was to discuss strategies to address water-related problems expected to arise in the next thirty years. Data showed that Europe was the continent with the fastest rate of warming. Last year, Greece, located on Europe's southernmost frontier, and using about 10 billion cubic meters of water per annum, had its warmest summer and winter on record. Some areas had no rain for months. He said that based on data, his country was ranked 19th worldwide in terms of the threat of water scarcity. "It's clear that Attica has seen its reserves drop by over 50% since 2022." He said that the water levels in dams have fallen to historic low levels. This means that they are producing less electricity. Greece will concentrate on desalination, and water recycling in order to produce more water. Government officials said that it is also looking at pumping water out of dozens coastal springs. Mitsotakis stated that more than 1,200 water projects, including irrigation, were underway. Greece has been planning to consolidate its hundreds of local water providers that are indebted for months. Greece also needs to deal with the issue of water leakage. Government figures show that the country loses half of its drinking water due to leaky pipes and theft - almost twice as much as the EU average (23%). The EU launched a campaign against the water crisis caused by climate change, which it claims affects 38% its population. (Reporting and editing by Ed Osmond, Renee Maltezou)
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The US-Japan Tariff Deal: Key Facts
On Wednesday, U.S. president Donald Trump and Japanese prime minister Shigeru Ishiba announced that they had reached a deal on trade which will include a 15 percent tariff on U.S. imported goods from Japan. Here's the latest information. THE DEAL In a Truth Social post, Trump stated that the deal included $550 billion in Japanese investments into the United States, and an improved market access to Japan for American products including automobiles and rice. Prime Minister Ishiba announced that Japanese autos, which make up more than a quarter (25%) of the country's total exports to the U.S. will be subject to an additional 15% tariff. This is a reduction from the previous 27.5%. He added that the U.S. had also agreed not to impose any limits on auto imports. Japan will maintain its current tariffs on the importation of agricultural products from the United States. Ishiba said that the country would import more rice but still within the existing tariff free quota. The maximum amount of loans and guarantees the Japanese government and state agencies could provide to encourage Japanese corporate investment into the United States was $550 billion. The "Japan Investment America Initiative", aimed to boost investment in sectors of economic security, including semiconductors. pharmaceuticals, shipbuilding and critical minerals. energy, autos, and AI technologies. Ryosei Aizawa, Japan's chief trade negotiator, met with Trump on Tuesday at the White House in order to seal the agreement. He said that steel and aluminum, which are subject to a 50% separate tariff, were excluded from the deal. Akazawa announced that Tokyo would drop the additional safety tests currently imposed on imported U.S. vehicles and trucks. Trump had complained about these requirements for years, saying they restricted sales of American-made automobiles in Japan. TARIFF DEADLINE Akazawa visited the U.S. for trade negotiations eight times between April and August. He met with officials from the U.S. including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent. The latest visit was made just days before the deadline of August 1, when the Trump Administration announced it would impose 25% tariffs on all Japanese imports. The U.S. represents Japan's largest export market. Economists warned that Trump's new tariffs would push the fourth largest economy in the world into recession. MARKET REACTION After the announcement, Japanese carmaker shares led Nikkei to an all-time high. They closed the day up 3.5%. Toyota Motor Corp.'s shares rose by 14%, while Honda Motor Co. gained more than 11%. (Reporting and editing by Lincoln Feast, Peter Graff, and Tim Kelly)
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Why is Russia so determined to seize the strategically important Ukrainian city of Pokrovsk
Over 100,000 Russian soldiers are advancing in the area to try and encircle Pokrovsk, a strategically important city located in eastern Ukraine. Here are some key facts about Pokrovsk - which Russians refer to by its Soviet era name, Krasnoarmeysk - and the long struggle for its control that began last summer. What is POKROVSK? Pokrovsk, a hub for road and rail in Ukraine's eastern Donetsk Region, had an estimated 60,000 residents before the war. The majority of people have fled. All children have been evacuated. According to Serhii dobriak, head of the military administration in the city, there are less than 1,500 remaining residents. The town is located on a major road that has been used to supply the Ukrainian military with supplies for other eastern outposts. These include the towns of Chasiv Yar in the Donetsk Region, which have been ravaged by intense fighting. Pokrovsk is about six miles west of the only coal mine in Ukraine that produces coking. Ukrainian steelmaker Metinvest announced in mid-January that it had suspended operations at the mine. Pokrovsk is home to a large technical university since 2014. It's the oldest and largest in the region. Shelling has damaged the university, which is now abandoned. Why does Russia want Pokrovsk? Moscow claims to have annexed Ukraine’s eastern Donetsk Region and control over 70% of its territory. Kyiv, as well as most Western countries, reject Russia's seizure and call it illegal. Capturing Pokrovsk (dubbed by Russian media "the gateway to Donetsk") and Kostiantynivka, to its northeast, which Russian forces are trying to envelop would give Moscow a base to drive north to the two largest remaining Ukrainian-controlled Donetsk cities - Kramatorsk, and Sloviansk. The control of Pokrovsk will allow Moscow to disrupt Ukrainian supply routes along the eastern front, and to boost its long-running campaigns to capture Chasiv Yar which is located on higher ground. This could give it more control over a larger area. The capture of this area would give Russia greater options for attacking the Dnipropetrovsk Region in Ukraine to the west. This is not a region that Moscow claims, but it does claim to have a small foothold there. What is the UKRAINE doing to defend Pokrovsk? Oleksandr Sryskyi, Ukraine's top commander, said that his forces are standing firm. In May he said that Ukraine has stalled and even pushed the Russian offensive against Pokrovsk. Officials in Ukraine claim that Russia has bombarded their forces with glide bombs, artillery and drones. They also say they have sent small groups of fighters into the field to gain more ground, rather than sending large infantry groups or armoured vehicles. Syrskyi estimates that Russia has 111,000 troops in the Pokrovsk region. During the defence of the city, President Volodymyr Zelenskiy made several senior personnel changes within the army. Ukraine claims that Moscow has suffered huge losses despite its best efforts to gain a breakthrough. Moscow claims that Ukrainian forces have suffered serious losses. Both sides do not disclose the full number of casualties. EVACUATION Ukrainian authorities have been working hard to convince the remaining residents of the city, mostly sick and elderly people, to evacuate. Dobriak, head of the military administrative, stated on Monday that vehicles were unable to reach certain areas, and people would have to evacuate on foot. He said that it was becoming increasingly difficult to deliver food, and that stores will have to close within the next few days. Anti-drone nets are used to cover one of the main roads, which Ukrainian forces refer to as "the Road of Life", to protect vehicles against Russian drone attacks. What does Pokrovsk look like now? Pokrovsk is a shadow its former self. It has no electricity, gas or heating, and it is without water. On May 21, footage showed severely damaged apartment buildings, streets littered with debris and some elderly people and cyclists. The sound of shellfire could be heard and roads were littered with the remains of wrecked vehicles and shells. Reporting by Andrew Osborn, Moscow; Anastasiia Mlenko, Kyiv. Editing by Peter Graff
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Japan's crude steel production falls for the third consecutive month in June
Japan's crude steel production, which is the world's third largest producer, dropped 4.4% from a year earlier in June. This was the third consecutive month that Japan saw a decline in output. The drop was due to a combination of sluggish demand in Japan and weak exports, amid high shipping volumes from China, its top producer. The Japan Iron and Steel Federation reported that the production, which was not adjusted for season, fell to 6.72 millions metric tons. The production was down by 1.7% compared to May. The decline in construction is due to a combination of factors, including rising costs for materials and labour shortages. The analyst also said that the slowdown in export demand has dampened production. However, the impact of the U.S. tariff increases on steel is minimal, as Japan only exports about 1,000,000 tons to the U.S. annually. China's exports of steel in June dropped 8.5% compared to May, to a new four-month-low of 9.68 millions tons. However, total outbound shipments for the first half of 2018 rose 9.2% on an annual basis to reach 58.15million tons. Steelmakers increased exports to prepare for expected weakness in demand due to U.S. Tariff increases. According to the analyst of the Federation, Japan's first-half steel production fell by 5%, to 40.55 millions tons. This is the lowest output since 2009 when the global financial crises hit the demand. The analyst stated that "while production recovered quickly following the financial crisis of 2009, the current slump is showing no signs and appears to be more serious." The Ministry of Economy, Trade and Industry predicted earlier this month that Japan's crude-steel output would fall by 2.3% from the previous year in the quarter of July to September. Reporting by Yuka Obaashi. (Editing by Jane Merriman.
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Copper reaches a two-week high on the hope of trade deals
The copper price reached its highest level in more than two weeks on March 15, as a U.S. - Japan trade agreement boosted sentiment. However, gains were limited by concerns about excesses and increasing inventories. The London Metal Exchange's three-month copper price was up 0.2% to $9,934 as of 0945 GMT, the highest since July 4. Copper is up about 4% in the last week, and it's approaching its peak of $10 020.50 that was reached on July 2. The global stock markets rose after U.S. president Donald Trump signed a deal on trade with Japan. Investors in metals are focusing on a possible trade deal with China, the world's largest consumer of metals. The meeting between U.S. officials and Chinese officials is scheduled to take place next week in Stockholm. The market was impacted by concerns about an oversupply. Data showed that the copper market had a surplus in the first five month of the year of 272,000 metric tonnes. A large stockpile of goods in the U.S. also weakened support. This was because traders had taken advantage of the higher prices due to the anticipation of tariffs, which were due to be imposed on August 1. Nitesh Sha, commodity strategist with WisdomTree, said: "We may see copper trading ranges once tariffs are implemented or even if they soften." The U.S. is going to use up its copper stockpile before importing any new units. Therefore, demand could be a bit low during that time of inventory depletion. LME inventories have risen 38% since June 27, indicating that copper flows are now being diverted from the U.S. Aluminium fell 0.5%, to $2.641.50 per ton, and zinc dropped 0.1%, to $2.856. Lead rose 0.8%, to $2.026, Nickel increased 0.1%, to $15.545; and Tin was up 0.3%, to $34,000. Click here to see the latest news in metals (Reporting and editing by Eric Onstad)
Sources say that the Marathon refinery in Texas has restarted its diesel and gasoline units.
Marathon has restarted the diesel and gasoline production units at its Galveston Bay refinery, which produces 631,000 barrels per day (bpd). This was confirmed by people familiar with the plant's operations on Tuesday.
Sources said that the refinery's residual hydrotreater unit (RHU), which produces 64,000 bpd, is shut down completely following an fire on the 14th of June. The date for restarting this unit has yet to be determined.
Marathon's spokesperson didn't respond to our request for comment.
Sources said that the 140,000-bpd fluidic catalytic unit-3 (FCCU-3), which produces gasoline, was shut down over the weekend. Production resumed on Monday.
A compressor failure shut down the Ultracracker, which produces 60,000 bpd of diesel. This happened on July 9, 2009. According to sources, it was repaired until late last week.
FCCUs convert gas oil to gasoline using a fine powder catalyst. The Ultracracker, a hydrocracker, uses a high-pressure catalyst in the presence hydrogen to convert gasoline to diesel.
The RHU has three units that use hydrogen to remove sulfur in motor fuels, according to US environmental regulations. The fourth unit, a hydrocracker, converts residual crude into diesel.
According to the U.S. Energy Information Administration, the Galveston Bay Refinery has the second largest capacity in the United States. (Reporting and editing by Janane Vekatraman; Erwin Seba)
(source: Reuters)