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France's Macron and Indonesia's Prabowo discuss strategic partnerships
On Wednesday, French President Emmanuel Macron and his Indonesian counterpart Prabowo Subito will meet in Jakarta to discuss defence ties. This is Paris' largest arms client in Southeast Asia. Indonesia is the second stop on Macron's regional tour after Vietnam where both countries signed deals valued at over $10 billion. He will fly to Singapore Thursday. Indonesia's Foreign Ministry said that the two countries would discuss "existing partnerships" without giving any specific details. In 2022 the two countries will sign an $8.1 billion deal for defence that includes an order of 42 Rafale jet fighters from France's Dassault. They also signed a number of agreements, including those relating to ammunition and submarine development. "Some commitments require follow-up and Indonesia showed interest in other military hardware but there have been no advances yet," said Khairul FAHMI, a military specialist at the Institute for Security and Strategic Studies, an Indonesian-based institute. Rafale jets are not yet delivered to Indonesia. According to Antara, the chief of Indonesian Air Force Mohamad Tonny Harjono stated in February that six aircraft would arrive in Indonesia by early 2026. In addition to the Rafale agreement, Indonesia also signed a 2024 agreement with the French shipyard Naval Group for the purchase of two "Scorpene", and announced in 2023 the purchase 13 long-range radars by France's Thales. Prabowo was Minister of Defence when these deals signed. Paulo Castellari, the new CEO of Eramet, is part of Macron's delegation to Indonesia's mineral-rich Indonesia. Eramet Chairwoman Christel Bories said that they would be looking to discuss mining permissions in relation to Weda Bay Nickel Mine. Indonesia has the largest known nickel reserves and is the world’s leading producer. Eramet, along with other companies, have complained about the reduction in volume allowances. The group has also been in discussions with Indonesia's newly established sovereign wealth fund Danantara about investments in the battery supply chain. Eramet is still interested to enter nickel processing, despite having dropped a plan last year to build a BASF plant. (Reporting and writing by Ananda Teresia in Jakarta and Stanley Widanto, in Paris. Editing and proofreading by John Mair.
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Sources say that the US has granted Chevron a narrow permission to retain assets in Venezuela
Three sources familiar with the decision confirmed on Tuesday that the Trump administration had granted a limited authorization to U.S. oil company Chevron, allowing it to retain assets in Venezuela. This included its stakes in joint ventures for oil with PDVSA. In recent weeks, Chevron and other European companies had been in discussions with Washington officials to get authorizations for their assets and stakes in Venezuela due to President Donald Trump’s restrictive policies. The guidelines were issued as the administration let the Chevron's license to operate in Venezuela expire Tuesday. Joe Biden, the former U.S. president, had granted that license over two years ago. Sources said that under the new authorization Chevron is not allowed to operate oilfields, export oil, or expand its activities in Venezuela. It also stated its intention to avoid paying any payments to the administration of President Nicolas Maduro. Chevron issued a statement Tuesday saying: "General License 41B expired and Chevron’s continued presence in Venezuela is in compliance with all laws and regulations applicable, including the sanction framework provided by the U.S. Government." PDVSA and the U.S. Treasury Department did not respond to comments immediately. It wasn't immediately clear whether the guidelines for Chevron will be extended to PDVSA's other foreign partners. Two sources say that executives from Chevron Venezuela notified Venezuelan authorities and contractors of the new instructions on Tuesday. The oil service and procurement contracts Chevron signed have been terminated. The wind-down period, which was set out in the previous license, to complete transactions including the export of Venezuelan oil into the U.S. has expired, despite the statement made by U.S. Special Envoy Richard Grenell, last week, that a 60 day extension would be granted following a meeting between Grenell and a Venezuelan official. Trump accused Maduro in February of not making progress in migrant return and electoral reforms towards the restoration of democracy. Maduro, his government, and other countries have rejected the sanctions imposed by the U.S., calling them an economic war. They also praised the resilience of the country. Venezuela is an OPEC country with the largest crude reserves in the world. Venezuela's oil production is only a fraction of its previous level due to a lack of investment, poor management at PDVSA, and U.S. sanction since 2019. The licenses granted to Chevron, and other foreign oil companies in recent years have supported a small recovery of Venezuelan oil production to around 1 million barrels a day.
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Executive says that the largest California utility has seen a 40% increase in interest in data centers.
PG&E's, California's biggest electric utility, saw a 40% increase in the number of requests from developers of data centers across the northern part the state for power supplies this year, a company executive said on Tuesday. California's Silicon Valley has one of the oldest and largest data center markets in the world. However, analysts say that the high cost of electricity and the price of land will prevent the state from capitalizing on the surge of artificial intelligence data centers currently being built across the nation. PG&E said, however, that it sees signs that the state has still room to grow. PG&E launched a new process last month for data center developers who are interested in connecting with the utility's network. PG&E supplies power and natural gases to 16 million people across northern and central California including Silicon Valley. Mike Medeiros is PG&E’s vice president for South Bay Delivery. He said that the so-called "cluster study" yielded 4.1 Gigawatts in interest on top of 8.7 Gigawatts previously announced by the company during its most recent earnings call, held late April. Medeiros stated that not only has the pipeline of data centers within PG&E grown, but also the size of these projects have increased since last year's study on clusters. The typical data center that PG&E wanted to power last year had a capacity of 50 to 100 Megawatts. Currently, proposals range from 500 megawatts up to 1,000 megawatts. Medeiros explained that "we're seeing a big change in the type of homes customers want. Some of this might be due to land availability, or simply scale and efficiency of building larger." Data centers for AI, unlike earlier ones, are used to train large language models like ChatGPT and can be located further from the city center. California's oldest data centers are located in Silicon Valley, in the western part, but many of the proposed new developments are in the inland areas, such as Contra Costa County and Fresno. PG&E is not expected to connect all data centers that make inquiries. This is due to the short timelines set by operators and developers, as well as the backlog of equipment required to build the grid.
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Polish utility PGE Q1 profits jump on lower CO2 emissions costs
PGE, Poland's largest energy utility, reported on Tuesday a core profit of 4,33 billion zlotys (about $1.16 billion), up 71% from the previous year. This was primarily due lower CO2 emissions costs and regulatory revenue increases. The results are in line with preliminary estimates that were reported by the company in mid-May. Why it's important PGE, along with other Polish utilities is experiencing structural changes in the energy landscape of Poland as renewables slowly replace coal, which has long dominated. According to data from the Forum Energii think tank, coal's share of Poland's electricity generation fell to 57.1% by 2024. Renewable energy sources, however, reached a new record at 29,6%. CONTEXT The rise in the company's core profits was driven primarily by lower CO2 emissions costs and higher government-regulated payment for grid stabilization and capacity mechanisms. The result was also positively impacted by the improved results of electricity sales to customers, and increased revenue from heat sales. By the Numbers The net profit of PGE for the first three months rose by over 170%, to 2,42 billion zlotys. Sales revenue increased by around 2%, to 17.17 billion Zlotys. This compares with 16.84 billion Zlotys one year earlier. Cost of goods sold for the company was 13.34 billion Zlotys during the quarter. This is down 11% compared to 15.05 billion Zlotys at the beginning of 2024.
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Portugal wants EU to press France reluctantly on power connections
Portugal, following a major blackout on the Iberian Peninsula last month, said that the EU must enforce the common market rules in order to integrate the Iberian power grid with wider Europe. This will overcome France's unwillingness to add interconnections. Experts and officials say that the blackout in Spain, which began on April 28 and left Portugal's mainland without electricity, could have been avoided if both countries had interconnections for power supply, rather than relying solely on their own power stations. Last Wednesday, energy ministers from Spain and Portugal wrote to EU energy commissioner Dan Jorgensen to ask him to step up. The Portuguese Energy Minister Maria da Graca Carvalho said to reporters at an event near Lisbon, that France has a large amount of nuclear power and is not interested in importing renewable energy cheaper from Iberia. She added that the European Commission could "pressurize" France to conform with the rules on the EU electricity markets. "If Portugal does something that is deemed a barrier to internal market, then the Commission will not waste time sending us a notice with an alert. We expect France to be treated the same way," Carvalho stated. Iberia, with a share of only 3%, is behind the EU target that all countries should have 15% or their energy systems interconnected to broader European networks by 2030. The strengthening of an existing interconnector that connects France and Spain is expected to be finished this year. A new underwater powerline that spans the Bay of Biscay will be completed in 2028. Carvalho says that although RTE, the French grid operator, has looked into the feasibility of two more interconnections to Spain across the Pyrenees in the future, they will not be included in France's plan until 2035. This "worries her". (Reporting and editing by Gareth Jones.
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Think tank: EU sanctions have cost Kosovo 600 million euros in unpaid funds
According to a GAP Institute report, Kosovo has been denied more than 600 millions of euros in external funding for environmental protection projects and energy projects, among others, ever since the European Union implemented sanctions in 2023. Kosovo's Government disputes the amount, but a report by a local organization gives one of first independent assessments on the impact of sanctions on one of Europe’s poorest country for its role in inflaming ethnic tensions in the north of its Serb majority. The GAP Institute reported that "the measures... have had significant financial and development consequences, costing Kosovo approximately 613.4 millions euros in projects suspended or indefinitely deferred." The funds affected are related to various financial instruments which have contributed to Kosovo's growth since its independence from Serbia. According to the report, environment and energy are the most affected sectors, with more than 460 millions of euros stalled. This is a major blow to a country which desperately needs to reduce the reliance it has on coal-fired energy generation. In the first half of this year, at least 150 millions euros were identified as funds that had been stalled. The EU hasn't publicly stated how much money is being delayed. The Kosovo government disputes these figures. A spokesperson said that aside from the 7.1 million euro it claims to have lost due expiration of contracts, these funds are "neither lost nor at risk", because they will be resumed when sanctions are lifted. Kaja Kallas, the EU's chief of foreign policy, said that the bloc will begin lifting sanctions "gradually", on condition that tensions between Kosovo and the north are de-escalated. Senior diplomats told reporters that EU funded projects would receive technical assistance in the coming weeks, but there is no plan at this time to distribute funds. Some EU members do not recognise Kosovo as a country, making lifting sanctions difficult. The diplomat stated that "the gradual lifting is not very substantial" and that it was unlikely the EU could move forward in funding. Kosovo is aspiring to be a member of the EU. Albin Kurti, the Prime Minister, has played a role in stifling the process by raising tensions and closing Serb institutions in the north, as well as by banning the Serbian dinar inside its borders and by stifling trade. Reporting by Edward McAllister, Fatos Bytyci and Sophie Walker
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South African rand falls as gold prices weigh
The rand of South Africa fell against the dollar Tuesday as risk sentiment increased following Donald Trump's decision not to impose tariffs on Europe. At 1510 GMT the commodity-backed currency of the country traded at 17,8900 per dollar, down about 0.2% from its previous closing. The Top-40 index on the stock exchange was flat, with mining companies facing pressure due to the drop in gold prices of more than 1%. Gold Fields, AngloGold Ashanti, and Sibanye Stillwater are all South African mining companies that traded lower for most of the trading session on Tuesday. Shares of Harmony Gold fell even more after the company announced that it had agreed to purchase Mac Copper Ltd, an Australian miner, in a $1.03 billion deal. Investors in the United States will be focused on this week's central bank interest rate announcement. Economists surveyed by predict that the South African Reserve Bank will cut its main rate of interest by 25 basis points on Thursday, to 7.25%. Inflation in South Africa remained below the SARB target range of 3%-6% in April, while the local currency recovered from recent losses and now trades below 18 dollars per unit. Data released by the central bank earlier that day showed that South Africa's composite leading Business Cycle indicator increased 1.1% from month to month in March. The yield on South Africa's benchmark government bond for 2030 was down by 5 basis points to 8.84%. Reporting by Bhargavacharya and Sfundo parakozov, Editing by Bernadettebaum and Andrea Ricci
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US Judge extends the topping period for Citgo Parent's auction to June 2
According to a Tuesday filing, a U.S. Federal Judge has extended until at least June 2, the deadline for rival bidders to enter bids during a court-organized sale of shares of Citgo Petroleum's parent company. Citgo Petroleum is owned by Venezuela. Last month, Delaware Judge Leonard Stark accepted a $3.7billion offer from Contrarian Funds affiliate Red Tree Investments, as the opening bid for the auction of shares. The auction was intended to compensate 15 creditors who were affected by debt defaults and expropriations. Red Tree and other rival consortia were given until the 28th of May to submit their submissions Competing Last week, lawyers for Venezuela requested that parties take more time to review parallel lawsuits before other U.S. courts which could have an impact on the price or conditions of certain bids. According to a proposed new calendar by some creditors the final hearing of the auction would still take place in July, after a "special master" appointed by the court overseeing the process of sale recommends a winning bidder next month. Several Venezuelan creditors who were involved in the case of Delaware, which lasted eight years, have filed lawsuits to recover the same assets. Last week, a New York court dismissed arguments from one of the creditors groups. The Venezuelan lawyers requested the extension. They wrote: "This is an important development in the sales process." The Venezuela parties respectfully request an extension to the topping period in order to allow bidders or potential bidders to account for what the special master called a "cloud of uncertainty" that hung over bidding. In court motions, some creditors supported the extension. (Reporting and editing by Nick Zieminski, David Gregorio and Marianna Pararaga)
Volvo Cars will cut 3,000 jobs as part of a restructuring
Volvo Cars, based in Sweden, announced on Monday that it would cut 3,000 jobs - mostly white collar - as part of the restructuring announced last week. The company is struggling with high costs and a slowdown in demand for electric vehicles as well as uncertainty about trade tariffs.
Volvo Cars is owned by China's Geely Holding and announced a program to cut costs by 18 billion Swedish crowns (US$1.9 billion). The company also warned that layoffs were inevitable.
According to the earnings report, 43,500 employees worked full time for the automaker and 3,000 were employed by staffing agencies.
Volvo Cars stated in a press release that the reductions would primarily impact office-based jobs in Sweden, and represent approximately 15% of the global office-based workforce.
The automotive industry is going through a difficult time. Hakan Samuelsson, CEO of Hakan Samuelsson, said that to address this issue we need to improve our cash generation and lower our costs structurally.
The group also retracted its financial guidance when it announced its cost-cutting measures last month. It cited unpredictable markets, weaker consumer confidence, and trade tariffs as the main reasons for the turmoil in the auto industry.
On Friday, U.S. president Donald Trump had threatened to impose 50% tariffs on imports from Europe from June 1. But on Monday, he reversed his decision.
Back away
From that date, restore a deadline of July 9 to allow talks between Washington and Brussels.
Samuelsson is on Friday
Customers would be responsible for a large part of any cost increases due to tariffs, and a 50% tax could prevent the importation of one of the most affordable electric vehicles, the EX30 made in Belgium, to the U.S.
(source: Reuters)