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France’s EDF Reports $944M Impairment on US Offshore Wind Project
State-owned French power giant EDF is taking a 900 million euro ($944.4 million) impairment charge on the Atlantic Shores offshore wind farm project in the United States after partner Shell pulled out of the joint venture."We have every intention of pursuing the interests of the (joint venture) company to the end, but in order to reflect the new American political landscape ..., the board of directors has decided at this stage to depreciate the developments that we have carried out offshore at Atlantic Shore," EDF CEO Luc Remont told reporters.($1 = 0.9530 euros)(Reuters - Reporting by Forrest Crellin, Editing by David Goodman)
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Cuba opens the first of 92 new solar parks to combat energy crisis
Cuban President Miguel Diaz-Canel opened the first of 92 Solar Parks on Friday, as part of an initiative backed by China to reduce the number of blackouts that can last for hours in the Caribbean Island nation. The park in Havana is one of 55 that are expected to be online by this year. It will generate 1,200 megawatts. Last year, the outdated power grid of this Communist-run nation collapsed multiple times. A severe fuel shortage made it impossible for smaller clusters to operate diesel-powered generators which typically backup the system. Blackouts that lasted for years have weakened the economy, and prompted scattered protests by residents who are tired of the multi-faceted crisis which includes a scarcity of basic goods such as food and medicine. The government is heavily promoting the parks as a partial answer to people's problems, which they blame primarily on U.S. sanction. Diaz-Canel tweeted on Friday that "the recovery of the grid is a top priority, and this is its safest route." Cuba's maximum demand is around 3,500MW. However, it fails to meet 1,500MW of this, leading to power outages. Cuba and China agreed to boost solar energy in Cuba's grid in April, but neither government provided details on the financing. Hua Xin attended the Havana solar park's inauguration. Foreign journalists were not allowed to attend the event. Presently, less than 5% (or a little more) of Cuba's energy is derived from alternative sources. Cuba's 2030 goal is 24%. Marc Frank (reporting; Paul Simao, editing)
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Baker Hughes reports that the US oil and gas rig counts have reached their highest level since June.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for a fourth consecutive week to reach their highest level since last June. The number of oil and gas drilling rigs, a good indicator of future production, increased by four in the week ending February 21. Baker Hughes reported that despite this week's increase in rigs, the total count is still 34 or 5% lower than this time last year. Baker Hughes reported that oil rigs increased by seven this week to 488, the highest level since September. Gas rigs dropped by two to 99. Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S. gas and oil prices in recent years have prompted energy companies to concentrate more on increasing shareholder returns and paying off debt than raising production. Although analysts predicted that U.S. crude spot prices would remain the same in 2025, U.S. Energy Information Administration projected crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to around 13.6 millions bpd, in 2025. The EIA predicted a 73% rise in the price of spot gas Prices in 2025 will prompt producers to increase drilling activity in this year. A 14% drop in price in 2024 forced several energy firms in the industry to reduce output for the very first time since 2020, when the COVID-19 epidemic reduced demand for fuel. The EIA predicted that gas production would increase to 104.6 billion cubic feet per day in 2025. This is up from 103.1 bcfd and a record-breaking 103.6 bcfd. (Reporting and Editing by Marguerita Choy)
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After the US exit, countries warn that global climate assessments should not be delayed.
After the U.S. government withdrew, the European Union, Britain, and other climate-vulnerable countries raised concerns over the delay in the next global assessment on climate change by the U.N.'s Climate Science Panel. Next week, the Intergovernmental Panel on Climate Change (IPCC), the U.N. organization that brings together scientists from over 200 countries to assess Earth's health, will be meeting in Hangzhou, China to plan its next report. In a Friday joint statement seen by, Wopke Hoopstra, EU climate chief and 17 other countries, including Britain, Germany France, Spain, Marshall Islands, Guatemala and the Marshall Islands, said: "It is vital that all contributions from the working groups to the Seventh Assessment Report be prepared on time." The statement stated that "we owe it both to those who are suffering from the effects of climate change now and to future generations to make decisions regarding the future of our planet based on the best available evidence and knowledge." According to reports on Thursday, the Trump administration has stopped the participation of U.S. Scientists in the IPCC. They will also not be attending its meeting next week in Hangzhou. Officials familiar with these talks say that the countries who made the statement are concerned that the report will not be finished in time for the next Paris Agreement stocktake in 2028. Nearly 200 countries will evaluate their progress in curbing climate changes and agree on tougher measures in order to avoid escalating temperatures. Last month, Donald Trump ordered the U.S. again to withdraw from the Paris Climate Agreement and reversed the Biden administration’s climate policies. Elon Musk, the billionaire, is leading the effort to rid the federal administration of what he considers wasteful spending, and to slash its workforce. He has cut funding for climate related work, and removed employees who worked on climate justice, climate science and clean energy. In a second statement published by the Least Developed Countries on Friday, a group consisting of 45 of the most vulnerable nations in the world, the Least Developed Countries said that there was no excuse for delays. In a press release, they stated that "any backtracking in this process issue would be seen as what it really is: politization of science on the cost of vulnerable countries." "People living in developing countries have nothing to gain by restricting their access to IPCC science." During the COP28 Climate Summit in 2023, nearly 200 countries agreed to transition from fossil fuels. The IPCC's earlier report was the basis for the agreement. It detailed the dramatic changes humans had made to the climate of the Earth and the need to drastically reduce emissions to prevent further disasters. Reporting by Kate Abnett and Valerie Volcovici, editing by Giles Elgood
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Global equity markets mixed due to uncertainty over Trump's moves and geopolitical issues
Wall Street stocks fell but European shares edged up on Friday, amid uncertainty over U.S. president Donald Trump's rapid policies, including tariffs and spending cuts, as well as Germany's upcoming election. Since returning to the White House in late October, Trump has announced tariffs against several U.S. trading partner countries and launched a campaign to cut the federal workforce of 2.3 million people. These moves have caused concern among traders. Joshua Wein, portfolio director at Hennessy Funds, Chapel Hill, North Carolina, said: "The sell-off over the past couple of days was really about the uncertainty regarding the pace of the change in government." We all knew that there would be cuts in spending and layoffs, but this pace has created a level of uncertainty we've never seen before. The data released on Friday revealed that U.S. businesses have fallen to their lowest level in 17 months, showing that consumers and businesses are becoming more concerned about the Trump administration. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite Index all fell due to losses in consumer discretionary, industrial, and energy stocks. All three major indexes are also expected to finish the week lower. This week, European shares were volatile ahead of the German election on Sunday. Europe's Stoxx 600 index rose 0.45% on Wednesday, ending two days of declines. It is now heading for a weekly increase. The Dow fell 0.85% to 43799.85. The S&P 500 dropped 0.57% at 6,082.56. And the Nasdaq Composite was down 0.69% at 19,823.69. MSCI's global index of stocks fell by 0.23%, to 881.69. The index has fallen 0.25% in the past week. Overnight, MSCI's broadest Asia-Pacific share index outside Japan rose 1.45% and reached its highest level since November 8.
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Gold takes a break from profit-taking and targets eighth weekly gain
Gold prices fell on Friday, as investors took profits off the previous session's high. However, they were still set to make an eighth consecutive weekly gain due to strong demand for safe-haven assets amid fears over U.S. president Donald Trump's proposed tariffs. As of 10:07 am, spot gold fell 0.3% to $2.930.85 per ounce. ET (1507 GMT). Bullion is up around 1.7% after reaching a record of $2,954.69 last Thursday. U.S. Gold Futures dropped 0.4% to $2.945.20. Alex Ebkarian is the chief operating officer of Allegiance Gold. He said, "It was just a classic movement with new all-time highs and profit taking... but" gold's fundamentals remain strong. The price of gold has reached two new record highs in the past week, with prices trading above $2,950/oz. Investors' appetite for bullion is on the rise, as uncertainty surrounding global economic growth, and political instability, have highlighted investor appetite. The demand for gold at the moment is primarily driven by western investors and central bankers. Investors in ETFs appear to be jumping aboard the bandwagon," Commerzbank analyst said in a report. Trump announced a new round of tariffs earlier this week, including duties on lumber and wood products. This is in addition to the previously announced plans for duties on imports of cars, semiconductors, and pharmaceuticals. The tariffs are in addition to the 10% additional tariff imposed on Chinese imports, and the 25% tariff imposed on steel and aluminum. Ebkarian stated that the role of gold as a safe haven has not been fully realized, because the money is still sitting on the sidelines. Investors also monitor the U.S. Federal Reserve interest rate trajectory, as Trump's policies have been viewed by many as inflationary. A higher inflation rate could force the Fed to keep interest rates high, reducing the appeal of gold that doesn't yield. Silver spot was down 0.6% to $32.74 per ounce, and palladium dropped 0.9% to $968.78. Both metals are headed for gains this week. Platinum fell 1%, to $969.05. It is expected to decline by a week. (Reporting and editing by Maju Samuel in Bengaluru, Anmol Choubey from Bengaluru)
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Sources say that European military supplier KNDS is considering an IPO in the midst of a boom in the defence sector.
Two people with knowledge of the matter said that KNDS, a military defence system provider, is looking at an IPO as soon as the end this year. This comes as Europe's push to boost its defence sector sparks a rally. Sources, who spoke on condition of anonymity, said that the Franco-German firm has begun early discussions with advisers regarding a possible listing at Frankfurt in 2026 or 2025. They added that the Banks are yet to be named. The French state-owned holding agency (APE), declined to comment. KNDS, as well as its German family shareholders Wegmann-Group, did not immediately respond to requests for comments. The talks take place amid a recovery in the defence sector after U.S. president Donald Trump stated that Europe would have to increase its military resources significantly. After the U.S. urged European leaders to increase their military budgets, Germany's Hensoldt and Europe's largest ammunition manufacturer Rheinmetall led this week's gains. Rheinmetall's value has increased dramatically since the Russian invasion of Ukraine. It is now worth approximately 39 billion euros (40.87 billion dollars), up from 4 billion euros back in February 2022. KNDS formed in 2015 through the merger of German Krauss-Maffei Wegmann, a family-owned company famous for its Leopard tanks, and French state-owned Nexter. According to the website, both the German family and French Government remain joint owners. One person suggested that a complex shareholder structure could result in the company only floating a small portion of its shares. This would allow the company's family and state supporters to retain control stakes. They also warned that the company may decide not to list as a public business. At the time the article was published, it wasn't clear which shareholders would sell their shares in an IPO scenario or what valuation they might be seeking. According to LSEG Datastream on February 20, world defence companies are trading at 25,8 times expected earnings compared to 18 times three year ago. Iveco, Thyssenkrupp and other world defence companies trade at around 8 times the same valuation metric. KNDS is a manufacturer of battle tanks, armoured vehicle, artillery system, weapons station, ammunition, military bridges and battle management systems. It also produces battle management systems and protection and training solutions. According to its website, it generated revenue of 3.3 billion euro ($3.45 billion). KNDS, an investor in German gearbox manufacturer Renk, listed its shares last year at a valuation 2.15 billion euro and is expected to have sales of 1.1bn euros by 2024, according to preliminary results. KNDS increased its stake in Augsburg-based Renk last week to 25,1%. Renk's shares have risen 62% since the company made its debut on the stock exchange a year earlier. KNDS has approximately 9,500 employees worldwide and is incorporated in The Netherlands. According to its website, it supplies armies around the world with production lines located in France and Germany, and has various industrial partnerships. ($1 = 0.9543 euros)
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Savannah resumes lithium prospecting as Portugal overturns injunction
Savannah Resources announced on Friday that it will immediately resume prospecting work at its lithium project located in northern Portugal, after the government assisted it in overturning a precautionary order filed by landowners. Savannah, a London-based company, believes that the Barroso Project's deposit of lithium-bearing spodumene is the largest in Europe. The latest prospecting results indicate a deposit larger than the 28 million metric tonnes of high-grade battery lithium previously estimated. The EU's goal to reduce its dependence on countries like China for strategic raw material could hinge on this project. Savannah was forced to stop prospecting at Barroso in two weeks' time after the court ordered that the government revoke its permission for the company to enter land owned by others. Savannah said that in a press release, the government filed a "reasoned solution" citing a wider public interest and the court ended up overturning an injunction. Savannah's statement stated that the government claimed any delay in the work "would be more expensive and detrimental to public interest". It added that the company expected to compensate for the delays over the rest of the program. Savannah has only one venture, Barroso. It hopes to begin commercial production in 2027. The project will also complete its final environmental licensing and feasibility study in the second half this year. Reporting by Sergio Goncalves, Editing by Aiden Lewis
US fears Nippon quote for US Steel could hit vital steel supplies
Nippon Steel's. proposed $14.9 billion takeover of U.S. Steel would develop. national security threats due to the fact that it might hurt the supply of. steel needed for crucial transportation, building and construction and. agriculture jobs, the U.S. stated in a letter sent to the. business and seen .
The letter also cited a global excess of inexpensive Chinese steel,. and stated that under Nippon, a Japanese business, U.S. Steel would. be less likely to look for tariffs on foreign steel importers.
The Committee on Foreign Investment in the U.S. (CFIUS) stated. in its 17-page letter sent on Saturday to Nippon Steel. and U.S. Steel, and initially reported , that. decisions by Nippon could cause a reduction in domestic steel. production capability.
CFIUS added: While U.S. Steel frequently petitions for. ( trade) relief, Nippon Steel includes plainly as a foreign. respondent resisting trade relief for the U.S. domestic steel. market.
The letter offered a first peek of the national security. grounds that the Biden administration might utilize as a basis for. its expected relocate to block the merger, even as the business and. numerous market professionals questioned the strength of the arguments.
By almost any procedure, the concerns identified by the. committee are not ones that would fall under the nationwide. security bucket, however quite plainly into two others:. Nationalistic trade protectionism and electoral politics, stated. Michael Leiter, a CFIUS legal representative in Washington, D.C. not involved. in the offer.
If the federal government is really worried about maintaining steel. supply here in the United States, the genuine option is not to. block this offer, however instead to use the CFIUS hammer to guarantee. that Nippon Steel makes and maintains such financial investments, he. added.
The deal has actually ended up being a political hot potato, with numerous. Republican politician and Democratic lawmakers voicing opposition to it. Vice President and Democratic presidential prospect Kamala. Harris stated on Monday at a rally in Pennsylvania, the swing. state where U.S. Steel is headquartered, that she desires U.S. Steel to stay American owned and run. Her Republican politician. competing Donald Trump has actually promised to obstruct the offer if chosen.
China looms big in the background of the trade concerns. described by CFIUS. According to the committee, China's. persistent usage of market-distorting federal government interventions. has permitted the country to unfairly get supremacy in the worldwide. steel market, as it exports substantial surplus steel that. synthetically decreases worldwide prices.
It also mentioned 2022 data that showed China produced about 54%. of overall global crude steel and was the largest exporter.
In a 100-page action letter seen and sent on. Tuesday, Nippon Steel stated it will invest billions of dollars to. preserve and increase U.S. Steel facilities that otherwise would. have actually been idled, indisputably permitting it to maintain and. possibly increase domestic steelmaking capability in the United. States.
Nippon likewise declared a guarantee not to move any U.S. Steel production capability or jobs outside the U.S. and would not. interfere in any of U.S. Steel's decisions on trade matters,. consisting of choices to pursue trade procedures under U.S. law. against unfair trade practices.
The deal, Nippon added, would develop a more powerful worldwide. rival to China grounded in the close relationship in between. U.S. and Japan.
Nippon even proposed a national security contract, targeted at. lightening CFIUS concerns, with promises that a majority of U.S. Steel's board of directors would be non-dual U.S. citizens,. including three independent directors approved by CFIUS to. supervise compliance with the contract.
Nippon is tossing a financial lifeline to U.S. Steel while. allowing it to stay led and handled by U.S. individuals with. government oversight, said Nicholas Klein, a CFIUS attorney with. DLA Piper. I would think that CFIUS might mitigate the risk of. reduction in steel production capability through supply guarantee. and other typical mitigation measures.
The committee, which reviews foreign financial investments for. nationwide security hazards, also sees danger occurring from Nippon's. growing presence in India, where production costs are much lower. than in the U.S.
Nippon Steel has no economic incentive to, and will not,. import Indian-origin ... steel into the United States to compete. with or weaken U.S. Steel, which would straight contradict. the basis for Nippon Steel's multi-billion dollar financial investment,. the business countered in their Tuesday letter.
(source: Reuters)