Latest News
-
Dealmaking in US Upstream Oil and Gas Falls as Volatility Rages Investors
Enverus, an analytics firm, said that the volatility in energy and equity markets scared investors during the second quarter. This slowed the pace of mergers, acquisitions, and divestitures in the U.S. Upstream Oil and Gas sector. The decline in dealmaking comes after a string of massive takeovers of oil and gas companies in recent years. These deals culminated in $192 billion in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. In the first half of 2025, a total of $30 billion was exchanged. This is a 60% drop compared to 2024. Andrew Dittmar is the principal analyst of Enverus Intelligence. He said that volatility in equity and commodity markets has raised a yellow flag, slowing down dealmaking. The oil prices dropped to multi-year lows during the last quarter, after U.S. president Donald Trump announced a list of trade tariffs, sparking fears of a possible recession and drop in fuel demand. In April, the Organization of Petroleum Exporting Countries (OPEC) announced plans to reverse deep cuts in production. The price of oil also increased as traders' risk premiums rose due to the conflict in the Middle East. According to LSEG data, U.S. Crude Futures reached a low on May 5 of $57.13 a barrel before swinging up to a peak of $75.14 a barrel by June 18. Enverus reports that Houston-based EOG Resources, which is an exploration and production company, bought Encino Acquisition Partners in May for $5.6 billion. This deal was the largest of the second quarter. Viper Energy purchased Sitio Royalties in June for $4.1 billion. Enverus reported that these two transactions accounted over 75% for the second-quarter deal values. Dittmar stated that "the engine of M&A in the past few years has sputtered, stalling due to only a few targets remaining". He added that companies will need to look at buying assets overseas, whether in Canada or in other areas, such as Vaca Muerta in Argentina.
-
Iberdrola does not expect any financial impact from blackout claims
Iberdrola, Spain's largest power utility, said that it does not expect to be affected financially by any potential compensation claims relating to the blackout which hit Spain and Portugal in April 28. The grid operator REE, owned by Redeia, has acknowledged that the blackout was caused by an increase in voltage. However it has blamed the power utilities and the grid for the chaos in the cities. The company stated that both internal and external experts had analysed the event. They concluded that the companies in the Iberdrola Group were not responsible for the blackout. "Nor did they play any role whatsoever", it said. The company's assets in power and distribution contributed to the restoration of the electricity supply. Iberdrola denied any responsibility for the outage but said any claims that may arise would be covered under civil liability policies. The group has not received any legal claims relating to the blackout. Iberdrola reported that the blackout had contributed to an one-off loss of 135 millions euros ($158) in the first six months of the year. The company cited higher costs for services that maintain grid stability. The company reported the same 25 million euro charge for Portugal. Reporting by Pietro Lombardi Editing David Goodman
-
NextEra Energy beats quarterly profit estimates on renewables growth, AI-driven power demand
NextEra Energy beat Wall Street expectations for adjusted second-quarter profit on Wednesday. The company attributed this to its robust renewables division, which has seen a surge in power demand due to AI data centers and hyperscalers. According to the U.S. Energy Information Administration, the U.S. power consumption is expected to hit record levels in 2025 or 2026. The surge in electricity demand is due to the growing number of data centers for AI and cryptocurrencies, as well as an increase in electrification at homes and businesses. The S&P utility index also rose by 3.5% during the quarter ending June 30. Florida Power & Light reported a net profit of $1.28billion, an increase of 4% over the previous year. NextEra Energy Resources, the renewables division, added 3.2 gigawatts to its backlog in the third quarter. This included more than 1 gigawatt for hyperscalers. The backlog of the unit now totals around 30 gigawatts. NextEra, a company that operates solar, wind and natural gas energy centers as well as nuclear power plants, announced in Renewable energy is crucial to meet the rapidly increasing U.S. demand for power, citing challenges with expanding natural gas capacities. NEER posted a second-quarter net profit of $983 millions, compared to $552 million a few years ago. According to LSEG, the company reported an operating revenue of $6.70billion, falling short of analysts' estimates of $7.38billion. NextEra said that it also expects its dividends to increase at an annual rate of roughly 10% until at least 2026. LSEG data shows that the Florida-based firm earned $1.05 on an adjusted basis per share compared to analysts' average estimates of $1.01 per shares. (Reporting from Katha Kalia in Bengaluru and Pooja menon; editing by Tasimzahid)
-
World Court issues landmark opinion on States' Climate Obligations
On Wednesday, the United Nations highest court will issue a critical opinion about the legal obligations that states have in fighting climate change. This is expected to influence the future course of climate action around the world. Before the decision, climate activists gathered in front of the International Court of Justice with placards that read: "Climate Justice Now!" End fossil fuels. "What do you want?" Climate justice! Climate justice: When do we want to see it? Now!" The 15 judges at the ICJ are able to give a non-binding advisory opinion. Legal experts claim that it has legal and political significance and that future climate cases will be unable ignore the opinion. Joie Chowdhury is a senior attorney with the Center for International Environmental Law. She said that the ruling could be "one of the most important legal decisions of our time" because it deals with issues at the heart of climate justice. The U.N. General Assembly asked judges to answer two questions: What are countries' international obligations to protect climate against greenhouse gas emissions? And what are the legal implications for countries who harm the climate system. The court will begin reading its opinion at 1300 GMT (3 p.m.). During two weeks of hearings at the ICJ in December last year, wealthy countries from the Global North told judges that they should base their decisions on existing climate treaties including the 2015 Paris Agreement which is largely non-binding. Small island states and developing nations argued that stronger, and in some cases legally-binding, measures were needed to reduce emissions, and for the largest emitters of greenhouse gases, such as carbon dioxide, to provide financial assistance. PARIS AGREEMENT At the end of 2015 U.N. talks held in Paris, over 190 countries pledged to continue efforts to limit global heating to 1.5 degrees Celsius. The agreement failed to reduce global greenhouse gas emissions. The U.N. stated in its latest "Emissions gap report" that the current climate policies would result in global warming exceeding 3 C (5.4 F), above pre-industrial levels, by 2100. Climate-related litigation is intensifying as campaigners try to hold governments and companies accountable. According to figures released by the Grantham Research Institute for Climate Change and the Environment in London, nearly 3,000 lawsuits were filed in June across 60 countries. The results so far have been mixed. In May, a German court threw out the case between a Peruvian farm and German energy giant RWE. However, his lawyers and environmentalists argued that this case, which had dragged on over a decade, still represented a win for climate cases and could inspire similar lawsuits. In a recent advisory opinion, the Inter-American Court of Human Rights (which has jurisdiction over 20 Latin American countries and Caribbean) said that its members should work together to combat climate change. Even if it is only advisory, the campaigners believe that Wednesday's opinion by the court should be a turning-point. This ruling may also make it easier to hold other countries accountable for climate issues, such as pollution or emissions. The court has confirmed that inaction on climate change, particularly by major emitters is not merely a failure of policy, but a violation of international law, said Vishal Prasad from Fiji, one of the students who lobbied Vanuatu, in the South Pacific Ocean, to take the case before the ICJ. Lawyers say that although it is technically possible to ignore a ruling of the ICJ, countries tend to be reluctant to do so. Chowdhury stated that "this opinion is applying binding International Law, which countries already committed to," Chowdhury. (Ali Withers, Marta Fiorin and Farah Salahi contributed additional reporting from The Hague and Copenhagen; Stephanie van den Berg, Ingrid Melander and Barbara Lewis edited the article.)
-
Denmark records the highest number of nestlings of white storks in years
The white stork, once extinct in Denmark is now making a comeback, with the most nestlings it has seen in decades. This gives hope that the bird may one day be a common sight in this Nordic country. Storks Denmark is a group of volunteers working to help the species return. They report that 33 storks nestlings will be born in the Danish countryside by 2025. This is up from 15 nestlings last year, and the highest since the 1980s. In the late 19th Century, the white stork population in Denmark was thriving, with 4,000 pairs of nesting birds. However, due to agricultural expansion and the destruction of wetlands in Denmark, the population saw a rapid decline, which led to its local extinction. Although challenges still remain, the population rebound can be attributed primarily to changes in migration patterns as a result of warmer weather conditions and conservation efforts. Hans Skov is a member of the board at Storks Denmark. He said, "The way our agriculture works does not leave much room for the stork." Danish folklore associates storks with spring and good luck. Having a nest built on your roof is considered to be a protective charm. Climate change is warming up European winters. Storks are wintering more in Spain than South Africa. This increases survival rates by reducing migration distances. The Natural History Museum of Denmark tags five more nestlings with GPS devices this year to track the storks migration routes. Storks that migrate up to Germany also push further northward into Denmark, but they face difficulties in finding enough food for their young. Storks Denmark spends around 30,000 Danish crowns (4,700 dollars) per year on food. Nest owners also provide chicken or fish to the nestlings daily. Grethe Mortensen expressed optimism for the long-term future of this species after giving her husband a nest in their backyard on his birthday in 2023. She said, "I hope they keep coming to Denmark and that we do something for the storks to help them survive on their own." ($1 = 6.3802 Danish Crowns) (Reporting and writing by Stine Jacobsen; editing by Sharon Singleton).
-
EU to cut back on environmental laws more after criticism from industry
After reducing an initial set sustainability laws in response to industry criticism earlier this year, the European Union began consultations on further simplifying environmental policies. This move is part the EU's "simplification agenda" to cut red tape and help industries that claim complex legislation across the bloc makes it difficult to compete with their rivals from China and the U.S. where President Donald Trump has slashed regulations. In a consultation that was opened by the European Commission on Tuesday, it said they were screening environmental laws in order to determine those areas where administrative burdens for governments and companies could be reduced. The consultation text stated that the goal was not to reduce the EU's environment objectives or to lessen the protection provided by EU environmental legislation for human health, but rather to achieve them more efficiently without incurring avoidable costs. Jessika Roswall, EU Environment Commissioner, said that the goal was to "simplify our environmental legislation without compromising high environmental standards". Other EU proposals for streamlining laws include a substantial reduction in the number of companies that are covered by sustainability regulations, as well as a lowering of requirements for companies to verify their supply chains. These plans have been criticized by campaigners, businesses and investors who accuse Brussels of gutting the laws that help to manage climate risks and encourage capital into the green transition. The EU Ombudsman is currently investigating a complaint from campaigners accusing the EU executive of reducing sustainability policies without consulting the public first. The Commission is still deciding which environmental laws it will simplify. EU environmental policies cover a wide range of issues, from waste management and water quality to industrial pollution. Two EU officials said that "Extended producer responsibility" schemes were being considered, although some governments wanted other policies reduced, such as the EU's Anti-Deforestation Law. EPR programs make companies accountable for the way their products are recycled or disposed. Businesses have criticised them, saying that the EU rules overlap some national schemes and burden companies with doubled regulation. After the consultation period ends on September 10, the European Commission will begin to draft any proposed legislation. Reporting by Kate Abnett, editing by Mark Heinrich
-
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)
-
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.
Gold prices fall as US-Japan deal boosts risk appetite but the weak dollar limits losses
Gold prices fell on Wednesday, as risk appetite increased after U.S. president Donald Trump announced an agreement with Japan before the impending deadline for tariffs. However, a weaker dollar and lower Treasury yields helped to limit losses.
As of 0136 GMT spot gold was down by 0.2%, at $3,423.44 an ounce. It had earlier reached its highest level since June 16, during the session. U.S. Gold Futures also fell 0.2% to $3.437.70.
Trump claimed that the U.S. has struck a deal with Japan that includes a 15% tax on imports to the U.S. from Japan.
U.S. Treasury secretary Scott Bessent announced that U.S. officials and Chinese officials would meet in Stockholm, Sweden next week, to discuss extending the deadline for negotiating a deal to August 12.
Tim Waterer, Chief Market Analyst at CM Trade, said that if more trade agreements are signed before August 1, it could increase general risk appetite as well as reduce demand for gold.
"But if USD pressure continues, a return to 3,500 will remain a realistic prospect near-term for the precious metal."
After Trump announced the Japan trade agreement, Japanese shares led a rally in Asian stock markets on Wednesday.
The U.S. Dollar Index, which is a measure of the value of the dollar against other currencies, has been near its lowest level in two weeks, allowing gold priced in greenbacks to be more affordable for holders of other currencies.
The benchmark 10-year U.S. Treasury rate on Tuesday reached its lowest level since July 9.
Trump has continued to attack U.S. Federal Reserve Chairman Jerome Powell. He called him a numbskull who kept interest rates high, and he said he would be gone in eight months.
The volatility could easily decrease if the pressure to fire Powell eases. Matt Simpson, senior analyst at City Index, said that bears could be waiting to fade into moves under $3,500.
Other than that, silver spot fell 0.3% per ounce to $39.15, platinum was down 0.3% at $1,437.83, and palladium dropped 0.8% to 1,264.96.
(source: Reuters)