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Thyssenkrupp spins off its largest division by sales, the Materials Trading Division.
Thyssenkrupp announced on Tuesday that it plans to spin-off its Materials Trading division, which accounts for almost a third in the total sales of the German conglomerate. This announcement has been reported by and is part of the company's ongoing efforts to "turn itself into a holding company". The company has divested its hydrogen and marine divisions through individual stock listings in the past. Thyssenkrupp shareholders will vote on the issue of spinning off 49% in an extraordinary shareholder meeting scheduled for August 7. Jefferies analysts estimate that the segment has an enterprise value of EUR3.6 billion ($4.2 billion). Around 15,500 people work in the division that buys, processes and sells materials like steel and alloys. It also manages their warehouses. This division accounts for 17% of Thyssenkrupp’s total employees and EUR11.4 billion or almost a third of its sales. Thyssenkrupp stated that if approved, the separate listing would occur before the end the year. Thyssenkrupp's CEO Miguel Lopez stated that?tk Accelis?had made "impressive progress" in the past few years, calling it a "fully-integrated materials distributor and powerful supplier chain service provider". The German labour union IG Metall said that worker rights were secured in the reorganisation. This follows previous concerns. "IG Metall has strengthened and secured?key safeguards in difficult circumstances. Ingo Kloetzer, a representative of IG Metall, said that without?our negotiation, workers' rights in key areas would be greatly weakened.
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Israeli drone strikes kill four in southern Lebanon
The National News Agency of Lebanon (NNA), reported that Israeli drones targeted three vehicles on the southern border of Lebanon, killing four and injuring several others. In a double-tap attack, two people were killed when a drone struck a car at Mayfadoun village. The second strike was made after the villagers gathered. The agency reported that two more people were killed in a drone attack on the town Shoukin. The fighting in Lebanon between Israel-backed Hezbollah and Iran has decreased but not stopped completely since the announcement on Monday of an interim agreement between the United States, Iran and Iran. According to NNA's report, Israeli drones hovered above Beirut, while the Israeli military continued its assault on southern Lebanon. The Israeli military did not immediately comment on the reported attacks. Israeli troops have continued to occupy large areas of southern Lebanon, and have destroyed dozens of villages and removed their inhabitants. Israel's army said in a press release that it intercepted Hezbollah rockets fired at a southern Lebanon area where Israeli soldiers were conducting operations. Israel's military said that it also struck the launcher which fired some of these rockets. Israeli soldiers identified a suspicious vehicle and fired a warning shot at it before launching a strike to "eliminate the threat". Since Hezbollah launched strikes against Israel on March 2 in support of Tehran, Lebanon has become entangled in the regional conflict centered around Iran. According to the?Lebanese government, Israel launched an offensive which has resulted in more than 3,820 deaths and around 1.2 millions people being displaced. According to Israeli military announcements, at least 28 Israeli soldiers have died in Lebanon during the latest conflict. Four Israeli civilians were also killed by Hezbollah. Hezbollah did not say how many fighters were killed. Reporting by Maya Gbeily, Editing by Gareth Jones
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The U.S. uses an Iranian smuggling technique to sneak oil from the Gulf
US military has conducted a number of secretive oil transfers between ships to maintain Gulf energy exports. They have used aerial and water drones, as well as helicopters, in an operation that guides convoys to waiting tankers. The US military operation near the Strait Of Hormuz uses a technique that Iran has long used to avoid sanctions. Eleven people with knowledge of the operation identified two specific locations for the oil transfer - one off Fujairah, in the United Arab Emirates, and the other off Sohar's port in Oman. According to satellite images and shipping data, the transfer began in early May. At least 116 vessels were involved. Satellite imagery shows that as recently as Tuesday morning 12 pairs of ships were seen side by side in the Gulf of Oman. Eight of them off the coast of Sohar, Oman, and four near Fujairah. Images from last week show that on June 11, the activity peaked and 17 pairs of vessels were seen simultaneously transferring oil at both sites. Four sources, including an ex-U.S. official who was aware of the attack, said that the Apache helicopter shot down by Iran on the 9th, which sparked retaliatory U.S. bombings, played a role in the mission. Six pairs of tanker vessels were grouped together on satellite imagery in a small area near the port of Sohar, the day that the Apache helicopter was shot down. Could not confirm the role of the Apache in the operation. A U.S. Defense official responded to questions by saying that no Central Command forces were involved in the offshore ship-toship oil transfer operations. U.S. officials confirmed that a drone boat rescued both crew members. Previously, the Apache's involvement in the operation, the extent of the transfers and how they operate, as well as the Apache's role, had not been reported. Centcom was contacted by the White House. The Iranian government has not responded to inquiries about the transfer operation. These two locations, located in the Gulf of Oman, near the exit of Strait of Hormuz are very close to the borders drawn by the Persian Gulf Strait Authority. This is a new Iranian body established to manage the Hormuz Strait. The Islamic Revolutionary Guard Corps may use drones and missiles to attack ships that do not comply with Iran’s orders. Fujairah has experienced repeated Iranian attacks during this U.S. led operation. According to British maritime risk management company Vanguard, a "unknown projectile", which struck a tanker near the coast of Oman, hit 'this past weekend. Vanguard stated in a press release that the crew was safe, and the impact had caused some cargo leakage but not environmental damage. The statement did not say whether the tanker had been involved in a transfer from ship to ship. Iran's response to the U.S./Israeli conflict was to effectively close the Strait of Hormuz. This is where roughly a fifth of the world's oil consumption passes. This caused the largest global energy disruption in history, and sparked inflation all over the world. Ship-to-ship transfers are part of Trump?administration efforts to restore normal oil flow from the Gulf, even though they're risky and inefficient. Donald Trump, the U.S. president, said that Friday would be the reopening of Strait of Hormuz under a framework agreement with Iran announced earlier this week. Details are still vague. It was not possible to determine if the announced agreement had affected oil transfers. An investigation published on May 20 revealed that Iran had established its own system to guide ships through the Strait. This involved island checkpoints and diplomatic deals, as well as sometimes fees. STAGGERED Departures and Waypoints Eight sources confirmed that the U.S. Military is in full control of the American transfer operations, including the private security contractor involved with the transfers. According to satellite imagery and one source, tankers are required to sail to a rendezvous point before reaching the strait. They then stagger their departures to be around 3,000-4,000 meters apart. Four sources claim that their transponders and lights have been dimmed. One source said that the Americans "are obviously?watching" you at all times. The oil transfer begins when the tankers pass through the Strait just beyond the zone Iran has designated as its own. Many of the ships are Very Large Crude Carriers (VLCCs). The oil transfers take anywhere between 24 to 40 hours. The VLCCs are then loaded and sail through the Strait. This ship-to ship operation is possible because a few shippers are willing to navigate their vessels through this strait in order to deliver oil to waiting tankers despite the Iranian ban. The operation is dangerous. Noam Raydan is a Washington Institute senior fellow who specializes on maritime risk. He reviewed the findings. Iran has used the ship-to-ship method for years in order to avoid sanctions because it hides the source. Iran usually operates one pair of vessels at a given time to avoid detection, and also because its exports before the war were small. The U.S. led operation, which involves massive transfers, provides Gulf producers with better protection against Iranian retaliatory strikes so that they can move crude oil, condensate, and petroleum products to foreign buyers. The review included more than 12 satellite images, taken between 2 May and 11 June. These showed ship-to-ship transfers that involved state-owned Gulf oil tanker fleets as well as international vessels receiving the?oil. LSEG and Kpler data on shipping reviewed by revealed that tankers in the region met up repeatedly during the same time period. Based on imagery up to June 11, it is estimated that 90 million barrels or petroleum products have likely moved through the offshore system since early May. Based on the tankers carrying capacity, the volumes are still low compared to pre-war levels of approximately 20 million barrels per day that were passed through the Strait. Michael Froman wrote in a Friday note that "as the old rules are weakening, it is ironic that America now takes a page from the playbook used by China, Russia and North Korea. Their so-called dark fleets pioneered this technique precisely to evade U.S. sanctions and UN sanctions." He was referring the practice of sending vessels through the strait with no transponders. Trump made this comment in his comments on June 10, after the downing the Apache. Six sources who had direct knowledge of the operations said that the U.S. supported the?participating ships through a combination aerial surveillance, compliance screening, and monitoring instead of naval escort. No evidence was found that U.S. personnel were directly involved with the transfers. A review of shipping records shows that international tanker operators dominate the receiving side of the operation. Dynacom Tankers, a Greek company, has spoken of its attempts to find innovative ways to ship oil across the strait ever since the conflict began on February 28, 2008. George Procopiou (founder of Dynacom) told the Capital Link Shipping Conference in Athens on June 1 that "freedom of navigation" is essential. No one can impose any tolls, or other burdens. He said, "We're here to serve and Greece has a tradition of breaking blocksades since ancient times." "I won't go into details, but the hints should be enough for you to get my meaning." Dynacom has not responded to an immediate request for comment about the U.S. operations. A maritime source said, however, that the new system poses?its own risk to their industry. The source for maritime security said that there was a lack of reliable data. Transponders that communicate the location of ships are turned off and companies do not report through the usual reporting centers. This increases the risk of collisions between ships traveling at night without lights at speeds which make maneuvering difficult. Four sources with knowledge of the arrangements have confirmed that operators seeking to access the system must undergo a compliance assessment process before they are allocated transit window. This process involves submitting information to the U.S. Navy’s Naval Cooperation and Guidance for Shipping Office in Bahrain. Two preliminary documents of compliance reviewed by? Operators were required to provide geospatial track histories, beneficial ownership disclosures, cargo documentation, and be willing to allow cargo testing. Upon approval, the participating vessels will be assigned transit windows and remain in touch with the U.S. Military Office in Bahrain during the entire voyage. According to the shipping records examined by, Emirati exports make up a significant portion of the U.S. transfers. According to six of the sources, UAE's national oil company ADNOC was among the most active participants. Kuwait Oil Tanker Company is also involved in the transfers. TankerTrackers.com reports that 2.3 million barrels were siphoned off one of their ships on the coast of Sohar, June 6, which was one of the busiest transfer days. Five days later, the receiving ship Sea Ruby was seen off India's south-west coast, bound for China where cargo was to be discharged. Requests for comments from the UAE government, ADNOC, and Kuwait Oil Tanker Company were not answered. Raydan said, "I do not see a solution permanent to all this." "This is only a temporary fix in these exceptional times."
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UK minister rejects Thames Water rescue, nationalisation more likely
The British government rejected a PS10billion ($13billion) rescue plan for Thames Water. This increases the likelihood that the country's biggest water provider will be nationalised. Emma Reynolds, the Environment Minister said that she was "early in her assessment" of the proposals from creditors. She added that Ofwat would have the final word. The ruling should be made this summer before Thames runs out cash in the second half of this year. This is the only proposal on the table. The utility has been fighting off financial collapse for years, battling with PS20 billion in debt, heavy fines due to sewage pollution, and an aging infrastructure. BackLash Sewage Reynolds, a member of the House of Representatives, said that the plan would unfairly shift costs to consumers and delay environmental improvements. Reynolds was responding to public anger caused by years' worth sewage spills as well as rising bills. "We'll be ready for any eventuality, including SAR," said she, referring the special administration regime of the government, which is a temporary form of public ownership. The group of creditors, which included Invesco, Elliott Management, and Silver Point Capital?, said it didn't recognise Reynolds' characterisation. The spokesperson warned that SAR will require government support in the billions. SAR will keep the water flowing for Thames Water's 16,000,000 customers in London and Southern England. However, it could add to the public debt and discourage foreign investors from investing if there are large write-downs. Reynolds said that SAR can be triggered by either insolvency, or serious violations of license conditions including environmental standards. SYMBOLS OF FAILURE Thames Water is now a symbol of the failures in Britain's privatised sector for water. It has been blamed by some for the pollution of rivers, while its previous owners piled it up with debts and paid dividends. The government has declared the sector to be broken and is working towards a?overhaul, including plans for an alternative regulator that will replace Ofwat. Ofwat weighs the creditor plan, and balances record fines, including PS123 million in last year, against warnings of investment drying up without regulatory leniency. Last year, the U.S. Private Equity firm KKR walked out of a takeover offer amid uncertainty?over possible fines. Reynolds said that she is not convinced either by the creditors' demand to lower performance standards. The creditors plan would inject PS3,35 billion into Thames Water alongside a new PS6.55billion debt facility. PS9.4billion of debt will be written off. The plan, if approved by Ofwat, would need to be signed off by the High Court, and any changes in licences would have to go through a public consultation. Ofwat has not responded to the request for comment immediately. Thames Water stated that a market-led approach was the best solution to achieve its turnaround.
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U.S. gasoline drops below $4 per gallon for the first time since April
U.S. retail gasoline prices fell below $4 per gallon for first time since April, as optimism grew about a preliminary agreement between the U.S. and Iran, which could lead to a reopening of Strait of Hormuz - a vital passageway for oil supplies around the world. Crude oil prices fell by more than $4 per barrel after U.S. president Donald Trump announced the U.S.-Iran had signed a Memorandum of Understanding to end the near four-month conflict. However, it is still unclear whether this agreement will last. The drop in fuel prices may provide some relief for the Trump administration. They had promised to lower energy prices to consumers. Trump and Republican legislators, who are running to protect narrow majorities in the U.S. Congress during the midterm elections in November, have 'faced backlash due to the rising price of fuel. At $4 per gallon, consumers are viewed as having a psychological threshold that they must overcome before changing their behavior. Trump announced that the deal's text would be made public after the formal signing ceremony, which took place on Friday. He also stated that the Strait of Hormuz will be reopened in its entirety. Experts say that it may take several weeks before shipping activity returns to normal. This is because removing the mines from waterways?is an extremely complex process. Patrick De Haan is the head of GasBuddy's petroleum analysis. He said that the real test will be whether this relief can last. For now, the average national price could continue to fall, as long as there is no drastic reversal, and both the U.S.and Iran continue in a positive way. GasBuddy reports that the average U.S. retail gasoline price fell to $3.997 per gallon Sunday. This is the lowest it has been since mid-April. Prices are still 90.8 cents higher than they were at the same time last. According to the American Automobile Association, the national average price was $4.065 for Monday. According to De?Haan, Americans collectively spent $46 billion on gasoline more since the beginning of the war. Late March, gasoline prices surpassed $4 after Iran closed the Strait of Hormuz to most shipping. The Strait of Hormuz is responsible for nearly a fifth of all global oil flow. Consumer inflation surpassed 4% in 'May for the first three-year period. According to the Labor Department, falling gasoline prices have led to a moderated expectation of inflation among consumers this month. It is not yet clear if the relief will last. Bjarne Shieldrop, SEB's chief commodities analyst said: "This is fragile." It can easily fall apart. Schieldrop stated that there may be certain details in the U.S.Iran Memorandum which are impossible to overcome. U.S. gasoline is in a supply crunch. The'resilient domestic demand' and 'robust fuel exports" are threatening to put pressure on the already thin inventories, sending gasoline prices soaring. According to government data, in the first week of June, gasoline inventories fell to their lowest level for a decade. They were just 215.1 millions barrels. Tom Kloza is the chief energy advisor at Gulf Oil. He said that if no progress was made in clearing the strait and reinstating insurance for vessels, or in curbing the violence of Iranian proxy forces, then the reprieve could be short-lived. Reporting by Nicole Jao, New York; editing by Sanjeev Mikleni
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Trump's memo clearly states that Iran won't have nuclear weapons
Donald Trump, U.S. president, told reporters on Tuesday at the G7 meeting in France that Iran's memorandum with Iran clearly states that it will not possess a nuclear weapons. Trump announced that he would release the U.S. - Iran memorandum text in a 'formal' setting. President Trump also expressed his approval of the idea to send the Iran deal for review to Congress, as requested by some Republican legislators. Trump told reporters, "I've never sent it before, I never even considered it. But?I will," he said. "I'll send it to Congress." "I like the idea." Details of the U.S. agreement with Iran will be worked out in the next few weeks. Trump told reporters that he thought the next phase of negotiations with Iran would be completed within 60 days. "Iran is eager to make it happen. Trump said that he believes it will go quickly because they have to "get back to work" and their relationship has now been 'normalized. "It could go faster or a little longer, but it could also go quickly."
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Scientists find 64,000 sq. miles of coral reef that can survive climate crisis
Researchers found that scientists have discovered a coral reef area of nearly 166,000 sq km (64,00 sq miles) which is capable of recovering and surviving climate change. This was a?three-fold increase over what they had previously estimated. Scientists have identified a 'three-fold increase' in the area of coral reefs that are capable of surviving and recovering from climate change. A study of 45,000 coral surveys, along with decades of ocean and climate data, has revealed climate-resilient coral reefs in 71 countries. This includes parts of the Caribbean Ocean and Pacific Oceans. Emily Darling, director of the Wildlife Conservation Society's coral conservation and one of the report's authors, said that "coral reefs have often been framed as being beyond saving." This?research shows that it is not the case. We know where to look for hope and we only need political will. The countries are currently drafting action plans to protect 30% of their marine and land environments by the end of this decade. This target is known as "30 By 30". Darling stated at a press briefing that only 28% of reefs are currently protected or conserved. The opportunity and urgency is obvious, particularly as we prepare for a super El Nino. Stacy Jupiter, executive director and co-author of the WCS Global Marine Program said that the data would give governments the necessary information to determine where funds should be allocated and which reefs have the greatest chance of survival. She said that in certain cases where reefs fall below certain benchmarks of ecosystem function, we might need to triage and leave these places. (Reporting and editing by Lincoln Feast; Reporting by David Stanway)
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Russian exports of seaborne oil products down 15% m/m from June 1-15, according to data sources
According to LSEG and market sources, Russia's seaborne exports of oil products fell 15% a month on a monthly basis to about 3.3 mt in the first 15 days of June. This was due to?unplanned maintenance?following repeated ukranian drone attacks. Shipping data shows that the number of diesel loadings at the Baltic port Primorsk - Russia's main outlet for ultra-low sulphur fuel (ULSD) – dropped by 18% to 520,000 tonnes in the first half of June compared with the same period last year. Ukraine has intensified drone strikes on Russia's energy infrastructure, with the number of oil refining facilities targeted more than doubling since the beginning of the year. Alexander Novak, the Deputy Prime Minister, said that Russia's oil production was lower at the beginning of the year. He blamed unplanned refinery repairs. In May, the Kirishi refinery, owned by Lukoil, NORSI, and Rosneft’s Ryazan refinery all saw their crude processing and fuel production reduced. The traders also said that the increased domestic demand for agricultural products and holiday driving, as well as the increase in exports, has reduced export loads. Market sources predict that fuel exports will continue to drop by the end of June as drone strikes disrupt processing at TANECO Kuibyshev & Saratov refineries and other energy facilities. Novak said that a diesel export ban could be considered by Russia if it is necessary. Data from market sources revealed that Turkey, India and Saudi Arabia, as well as Singapore and other Asian countries, were the top buyers of Russian oil products by sea this month. Mark Potter, Mark Potter (Reporting in Moscow)
Hezbollah thinks Iran won't sign the final nuclear agreement if Israel remains in Lebanon
Hezbollah stated on 'Tuesday' that it believes Iran won't sign a final deal with 'Washington unless Israel leaves 'Lebanon', after Iran's top diplomat'said Israel's 'continued troop' presence in Lebanon will be considered a violation of the U.S. -Iran Memorandum of Understanding.
Israeli troops continue to occupy territory in southern Lebanon they captured during their three-month-long air and ground campaign against Hezbollah. The campaign began when the Iran-backed Hezbollah fired on Israel in support of Tehran, starting in?March 2. The fighting in Lebanon has slowed down but not completely since the Iran-U.S. Memorandum of Understanding. Israel also said that troops will remain in Lebanon's south.
Hezbollah is against Israel's occupation. The group's media said on Tuesday that it believed Iran would require an?Israeli pullout as part of the next U.S.Iran talks. These are set to begin after both parties formally sign their memorandums of understanding this Friday.
These talks will address sensitive issues such as the future of Iran’s nuclear program.
Hezbollah media office: "We think there won't be a nuclear deal between Iran & the United States without Israel withdrawing." This was the first time that the group had linked Israel's departure?to an possible nuclear deal.
The statement said that an Israeli withdrawal was not a condition for the talks, but rather a result. It claimed that it had been assured by Iran that any Israeli violation of the ceasefire in Lebanon would affect those upcoming negotiations.
Abbas Araqchi, Iran's foreign minister, said that the end of regional conflict must also include the end?of conflict in Lebanon and "the end" of "occupation" of Lebanese land.
He said: "A full end to the war cannot be achieved without the withdrawal of Israeli troops from the territories that they have occupied during this war."
Araqchi said that any Israeli attack on Lebanon or continued occupation of Lebanese lands "will be considered, in our opinion, a violation to the memorandum." Reporting by Maya Gebeily from Beirut, and Parisa hafezi from Dubai. Editing by Alison Williams and Alexandra Hudson.
(source: Reuters)