Latest News
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Neoenergia, a subsidiary of Iberdrola, will invest $10 billion to improve power distribution in Brazil
Neoenergia, a 'Brazilian division of Spain's Iberdrola plans to invest a total of 50 billion reais (about $10 billion) into its five power distribution companies by 2030, as it seeks to expand the sector. CEO Eduardo Capelastegui confirmed this. The new investment plan is backed by a 82% increase in the investment plan compared to the previous five-year period. It also includes the renewal of four distributor concessions for another thirty years. Capelastegui said that the focus would be on "expanding grids infrastructure", connecting more customers, and modernizing networks in order to increase resilience during more frequent extreme weather events. He said that distribution networks were critical for Brazil's energy transformation, as they enabled electrification, integration of renewable power, and growth in such areas as data centers, green hydrogen, and other technologies. Neoenergia may pursue acquisitions, if assets are available, said he, adding that Iberdrola views Brazil as its main emerging market. Iberdrola and Italy's Enel were involved in a dispute in 2018 regarding the purchase of a distributor, Eletropaulo. Now Enel Sao Paulo is facing legal proceedings that may lead to the loss of their?concession. This has fueled speculation that Enel will eventually divest this asset. Once about 20 distribution concessions have been renewed, it is expected that other divestment deals will be available this year. $1 = 4.8928 Reais (Reporting and writing by Leticia Ficuchima, Editing by Emelia Matarise).
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Wall Street cheers US job growth and chipmaker earnings by ignoring the high price of oil
Investors sent U.S. stock prices higher on Friday as new data showed strong job growth in the U.S., even though oil prices continued to rise due to ongoing fighting near Strait of Hormuz. The Dow Jones Industrial Average grew by 0.21%. The S&P 500 added 0.5% and the Nasdaq Composite rose 0.8%. Microchip Technology, which had forecasted first-quarter revenues above expectations, rose 1.4%. Qualcomm jumped about 4% while Nvidia grew 2%. The oil prices retreated from their early gains, after a new round of fighting in the Strait of Hormuz raised concerns about the ceasefire agreement between Iran and the United States. Benchmark Brent crude futures last moved a little higher to $100.24 per barrel. U.S. employment increased in April more than anticipated, while the unemployment rate remained at 4,3%. This indicates that labor markets are resilient and reinforces expectations that the Federal Reserve will leave interest rates unchanged. Ellen Zentner is the Chief Economic Strategist at Morgan Stanley Wealth Management. She said, "More strong jobs data leaves Fed where it has been for some time - watching and awaiting, focused on its?inflation mandate." Rate cuts are not on the horizon in the near future, but the lack of inflationary concerns in the report today should quieten some of the talk about a possible hike. MIDDLE-EAST CLASHES The U.S., Iran and UAE exchanged fire on the Gulf. This was a test of a ceasefire that had been in place for a month. Investors are left uncertain as both sides downplayed the situation. The market is taking advantage of every opportunity to put a quick stop to the war, said Jan von Gerich, Nordea's chief analyst. "But it appears unlikely that there will be an agreement. I think that there will be more disruptions along the Strait of Hormuz for a long time, and they won't be resolved anytime soon. European stocks fell. The STOXX 600 index for the entire continent was down 0.5%. Asian equities fell from recent highs, but remained on course for a strong week, supported by the revenue and spending plans of U.S. AI Hyperscalers that have boosted chipmakers in the region. MSCI's broadest Asian share index outside Japan dropped 0.8%. However, South Korea's KOSPI rose 0.1% and its weekly gain reached more than 135% - the largest since '2008 - thanks to rallies at Samsung and SK Hynix. This week, Taiwan's benchmark index rose 7% and Japan's Nikkei gained 5.4%. A DOLLAR INCH LOWER Sources familiar with the situation said that the dollar was edging lower, and headed for a second consecutive weekly decline. The yen, however, remained the focus of attention after Japan intervened in the currency markets to stop its slide in early May. The dollar last fell 0.26%, to 156.5 yen. It was heading for a second consecutive weekly decline against Japan's currency. The dollar's gains above 155 yen have been difficult to maintain after suspected interventions totaling nearly $70 billion in the last week. The euro was last trading at $1.178 while the Chinese yuan, Asia's best-performing currency, is hovering around 6.8 per dollar. This is close to its highest since 2023. The British pound and UK government bonds rose on Friday, after British Prime Minister Keir starmer announced that he would not be resigning despite the devastating losses suffered by his Labour Party during local elections. TARIFFS The U.S. Trade Court ruled that President Donald Trump’s?latest 10% global temporary duties are unjustified by a '1970s trade act. Analysts expect an appeal to be filed quickly and that the overall impact on U.S. levy will be minimal. Treasury yields rose in tandem with crude oil prices on Thursday, as traders fretted about inflation. However, they did not change much on Friday. The benchmark 10-year yield was 4.354% and down 4 basis points. Bitcoin is heading towards its sixth consecutive weekly gain at $79660. (Reporting from Lawrence Delevingne, Samuel Indyk and Tom Westbrook respectively in Boston, London and Singapore. Elaine Hardcastle and Mark Potter edited the story. Topra Chopra was also involved in editing.
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Rubio: US Church ties can withstand Trump criticizing Pope Leo
Marco Rubio, Secretary of State on Friday, said that the United States could have a productive relationship with the Catholic Church despite tensions over President Donald Trump's repeated criticisms of Pope Leo. Rubio visited the Vatican Thursday and told reporters that the meeting had been "very positive" before departing Rome. Rubio, when asked about Trump's criticism of Leo for his comments about the Iran War and other issues, said that Trump acts to the benefit of the U.S. Rubio said that Trump acts in the best interest?of the U.S. and "will always speak clearly about how he feels about the?U.S. Rubio stated, "I believe we can do that and continue to have a productive and fruitful relationship with the Church because it also plays an important part in the world." Rubio stated that the U.S. was prepared to give more humanitarian assistance to Cuba which is facing an energy crisis as the U.S. has blocked most oil shipments into the country. Washington issued sanctions on Thursday against a Cuban mining joint venture and a military-controlled conglomerate to pressure the communist leaders of the island to undertake reforms. Rubio stated that the U.S. had provided $6 million to Cubans in humanitarian aid through the "Church" and offered $100 million to 'the government of Cuba, but it refused to do so. (Reporting and editing by Alis Williams, Barbara Lewis and Barbara Lewis; Susan Heavey, Daphne Psaledakis and Simon Lewis).
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Satellite images show a possible oil spill near Iran's Kharg Island Export Hub
Satellite images this week showed a suspected oil spill covering dozens square kilometers of sea near Iran's main oil hub, Kharg Island. Images from Copernicus Sentinel-1 and Sentinel-2 satellites on May 6-8 showed a grey-and-white slick covering the waters west of the island's 8-kilometre (five-mile) length. Leon Moreland of the Conflict and Environment Observatory said that "the slick appeared visually consistent with oil." He estimated that it covered an area of about 45 square kilometers. Louis Goddard of 'consultancy Data Desk', which focuses primarily on commodities and climate, also agreed that it was likely an oil slick. He said the images were the largest since the start of the U.S./Israel war against Iran, 70 days ago. Requests for comment about the images were not immediately responded to by the U.S. Military and Iran's Mission to the United Nations at Geneva. Moreland said that the cause and origin of the spill are unknown at this time, adding that images taken on May 8 did not show any evidence of active spills. Kharg Island is the hub of 90% of Iran's crude oil exports. Most of it is headed for China. The U.S.?Navy is blocking Iran's ports to?stop Tehran's oil tankers from entering or exiting. Meanwhile, U.S. forces and Iranian forces are fighting in the Gulf. The war in the Gulf has also 'trapped hundreds of ships and caused the biggest disruption of crude oil supply worldwide, along with affecting global supplies of oil and gas products.
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Gold gains on US-Iran agreement, jobs data and gold prices
Gold extended gains on Friday following a stronger-than-expected ?jobs report, with prices ?also heading for a weekly ?rise ?as optimism over a potential end to the Iran conflict helped ease concerns about inflation and elevated interest rates. As of 1322 GMT, spot gold was up 0.8%, at $4,723.28 an ounce. Bullion is up 2.4% this week. U.S. Gold Futures increased 0.5% to $4733.00. Data showed that U.S. Employment increased more than anticipated in April, while the unemployment rate held steady at 4.3%. This indicates a resilient labor market. "Traditionally, we would think that a stronger-than-expected jobs number ?would strengthen the dollar and apply some pressure to gold. We did not see this happen today, said David Meger of High Ridge Futures, the director of metals. Gold is trading more like a risky asset than a safe haven at this time. Gold's rebound is linked to the prospect of de-escalation with Iran. With energy prices falling, we are seeing the likelihood for Fed rate reductions increase in the future. Due to its non-yielding characteristics, gold, which is typically seen as a haven in times of global turmoil, is under pressure due to rising interest rates. According to CME FedWatch, the market is now expecting a rate increase of 14% this year. This is down from 22% the previous day. U.S. forces and Iranian forces clashed and renewed attacks on the United Arab Emirates in the Gulf. President Donald Trump, however, said that a ceasefire still held despite this flare-up. Gold demand in India this week was muted as price recovery caused?potential purchasers to postpone their purchases. Meanwhile, premiums on China remained stable due to the safe-haven demand. Silver spot rose by 3.1%, to $80.88 per ounce. Platinum gained 0.2%, to $2,026.80. Both are headed for weekly gains. Palladium fell 0.3% to $1,476.18, but was down almost 3% on the week. Ashitha Shivprasad reports from Bengaluru.
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Russell: Exports of refined fuels from Asia to the US plummet after the closure of Hormuz
The impact of the 'crisis' on the physical fuel markets has worsened. While crude oil futures prices have fluctuated in line with headlines regarding the conflict between the United States, and Iran. Brent contracts fell 7.8% to close at $101.27 per barrel on Wednesday, despite the fact that a sustained and full reopening of the 'Strait of Hormuz is still a long time away. The United States and Israel's February 28th attack on Iran has led to a reduction in the volume of refined products shipped throughout Asia. The Strait of Hormuz is the main energy-consuming region in the world and the destination of about 80% of the pre-war cargoes. In April, the combined export volume of these three fuel types was about 3 million barrels a day (bpd), below the average in the three months before the start the conflict. According to commodity analysts Kpler, jet fuel is the part of the barrel that has been most affected. Asia's fuel exports fell to 596,000 BPD in April from 1.54 Million BPD in the three-month period prior to the beginning of the war. The Kpler data for April was the lowest since 2017. It shows that flow levels are about one-third lower than pre-conflict. Most of Asia's jet fuel exports are destined for other Asian countries who import it, while smaller quantities go to Africa, Europe, and North America. India's jet fuel exports fell to 48,600 barrels per day (bpd) in April, from 141,000 bpd before the war, and China's to 135,000 from 308,000 bpd. According to Kpler, the United Arab Emirates shipped zero jet fuel during the month of April, compared to an average of 106,000 barrels per day (bpd) in the three months preceding the war. Singapore assessment prices reflect the shortage of jet fuel cargoes. The price of oil ended at $158.91 per barrel on Wednesday. This is up 70% over the $93.45 it closed on the 27th February, the day before Israel and the U.S. launched their aerial attack against Iran. SUPPLY SQUEEZE The price of gasoil, the building block for diesel, ended at $141.30 per barrel on Wednesday. This is up by 55% compared to the level before the war. Kpler reports that Asia's transport fuel exports dropped to a 9-year low in April of 2,22 million bpd, down from a 3.54 million average in the three month period before the start the the?Iran War. Exports from Japan fell to 32,600 BPD in April, from 148,600 BPD before the conflict. South Korea's exports dropped from 507,000 to?451,000 BPD, India's to 371,000 from 494,000, and China's to 22,000 from 126 300. The same is true for gasoline. Asia's exports fell to 1,59 million bpd from an average of 2,28 million bpd during the three months before the Iran War. South Korea's shipments fell to 181,300 bpd (from pre-war levels) while China's decreased to 47,000 from 116,000. Data shows how quickly refiners in Asia have struggled to secure enough crude to keep refineries running. As commercial and strategic stocks are depleted, the longer the Strait of Hormuz is closed to most vessels the greater the likelihood that crude shortages will be in Asia. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Amazon's Chile datacenter moves forward after residents win environmental challenge
Patricio Hernández lives in the north of Chile's capital, Santiago. He and his neighbors fear that a massive Amazon data center could destroy their area. He said that the hill was very important for the community. It is a green area, a place to relax and for community. He and other local residents attempted to block the construction of the data center. They argued that the permit failed to take into consideration the possibility of building a high voltage power line, which they claimed would be needed to supply the site. They lost their case. Early April, environmental authorities ruled that the data center was allowed to proceed. They said any plans for a powerline should be evaluated separately. Amazon Web Services stated that it is aiming to have the data centers consume as little energy and water as possible and that its plan has met environmental requirements. Construction of data centers has exploded worldwide due to the growing demand for physical infrastructure for computer processing, artificial intelligence and data storage. Data centers are also a source of opposition due to concerns that they could be a drain on resources and cause noise pollution. Rafael Mattje, AWS Southern Cone's technology chief, said from New Zealand: "Our approach was to design the infrastructure with an emphasis on resource efficiency. We incorporated technologies that minimize energy and water usage." Last year, the branch of Jeff Bezos’ tech giant that is responsible for data centres announced a large expansion plan in Santiago. AWS announced that it would invest $4 billion in Chile over the next 15 years in order to build, maintain and operate infrastructure. This will make Chile its third largest hub in Latin America, after Brazil's Sao Paulo, and central Mexico. The new president of Chile, Jose Antonio Kast has promised to reduce redtape and increase connectivity through fiber optic cables. This could make Santiago more attractive for data center developers. "Chile is an industry magnet," said Sebastian Diaz a sustainable city expert and former advisor for Chile's National Data?Center Plan. He warned Chile and the region to balance attracting investments with protecting people and the environment from negative effects. AWS anticipates that its complex located in Santiago, about 8 km north of the center, will last for 30 years. The center will be one of over 900 AWS data centers worldwide and dozens in the Americas. The construction of the datacenter and any infrastructure related to it could have a dramatic impact on the lives of residents, according to Hernandez. He said, "We wake every morning to a hill of green that brings us joy in the gray city." (Reporting and writing by Nicolas Cortes, Carolina Fernandez, Sarah Morland. Editing by Stephen Coates.)
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Ukraine considers sending security experts in Baltic States amid drone incidents
The 'foreign minister' of Ukraine said on Friday that the country is considering sending a team to help improve air security in the Baltic States after two drones, allegedly from Ukraine, crashed into Latvia. NATO members Latvia and Lithuania, which border Russia have reported several incidents of this nature in the last few months, as Ukraine intensified its 'long-range attacks' against their enemy. Andrii Sybiha said that if it is confirmed that the drones were Ukrainian and were intentionally knocked from their course by Russia's electronic war, we will sincerely apologize to our Latvian Friends. He said that "we are also looking at the possibility of sending Ukrainian experts to directly help?strengthen airspace security for our friends in order to prevent any incidents," Sybiha said that Ukraine is trying to minimize the chance of such incidents recurring. Police and firefighters in Latvia said that four empty oil tanks had been damaged by the incident in Rezekne on Thursday, which occurred about 40 km (25 miles) from Russia's border. In the wake of these incidents, Latvia and Lithuania called on NATO to boost air defences. (Reporting by Yuliia Dysa; Editing by Alexandra Hudson)
Asia's sustainable aviation fuel tasks and agreements
Singapore prepares to need all flights departing the country to utilize sustainable air travel fuel (SAF) starting in 2026, its transport minister stated on Monday, as the citystate signs up with the international air travel market's. efforts to switch to greener fuel.
SAF, or alternative fuel made from renewable sources that. are utilized to power aircraft, is essential for the air travel sector. to reach its objective of net zero carbon emissions by 2050, but its. adoption remains in a nascent stage.
Following is a take a look at other SAF tasks and arrangements in. the Asia-Pacific area.
MALAYSIA
Malaysia has actually established an SAF blending mandate starting. with 1%, according to the National Energy Transition Roadmap. released by the federal government in 2023. It is targetting a 47% SAF. mixing mandate by 2050.
Malaysian state oil company Petronas and Japan's. second-biggest oil refiner, Idemitsu Kosan Co, signed a
initial arrangement
to team up on advancement and distribution of SAF in. October 2023.
Petronas and Malaysia's palm oil board have also signed an
contract
to study using cooking oil and palm oil waste as SAF. in August 2023.
Malaysian Aviation Group (MAG) has signed an SAF offtake. agreement with Petronas Dagangan, as part of efforts. to develop the green fuel on a business scale in Malaysia in. May 2023.
INDIA
India aims to have 1% SAF in airplane turbine fuel
by 2027
, doubling to 2% in 2028, the federal government stated in November. The SAF targets will at first use to global flights.
Indian Oil Corp will set up an 80,000-metric-ton. annually
SAF plant
with LanzaJet in Haryana, the refiner's chairman stated last. year. The business has a tie-up with LanzaTech for converting. waste gas to ethanol and into jet fuel.
SINGAPORE
Singapore announced on Feb. 19 it would go for a 1% SAF. target beginning in 2026 and prepares to raise it to 3-5% by 2030,. based on global developments and the wider schedule and. adoption of SAF.
The Civil Aviation Authority of Singapore (CAAS) plans to. introduce a SAF levy for the purchase of the fuel to be set at a. repaired quantum, based upon the SAF target and predicted SAF rate. at that time.
Singapore Airlines, The Civil Authority of Singapore, and. Genzero completed a
20-month SAF pilot
in November, and found that although Singapore is. operationally all set to provide SAF, more is required to support its. adoption.
Keppel Corporation Limited and AM Green have
signed
a memorandum of understanding in December to check out. chances to produce biogenic carbon-based sustainable. fuels, consisting of SAF.
Singapore Airlines started an one-year SAF pilot programme in. July 2022, working with ExxonMobil and Neste. The companies mixed 1,000 tonnes of cool SAF with jet fuel and. supplied the oil to Singapore Airlines and Scoot flights at. Changi Airport. Finnish refiner Neste operates the city state's only. SAF plant.
CHINA
There is no set SAF required in China since February 2024,. Its civil air travel administration said in its 2022. roadmap that carbon emissions in the sector will peak by 2035.
China's National Energy Administration revealed in. November 2023 that it would launch pilot projects to stimulate. domestic production and usage of
biofuels
, consisting of SAF and biodiesel. It did not offer details on. funding and timing.
In December 2023, China's State Power Financial investment. Corp announced a
plan
to produce 400,000 heaps each year of SAF in northern. Heilongjiang province. The plant will start as a pilot project. of 10,000 lots per year, the company stated. It is slated to. produce its first batch of fuel in late 2025 and will broaden to. 400,000 by 2030, according to an executive familiar with the. strategies.
In April 2023, Airplane and the China National. Air Travel Fuel Group (CNAF) signed a memorandum of understanding. to increase production and usage of SAF. U.S. industrial. conglomerate Honeywell has signed contracts to collectively. produce SAF with northern China's Tianjian Free Trade Zone in. 2023 and with southern Guangdong-based Oriental Energy Business. Ltd. in 2022, according to Honeywell and state-run. CGTN. The Guangdong facility will produce 1 million loads per. year of SAF, Honeywell stated, without discussing a timeline.
Hong Kong-based
Cathay Pacific Airways
set a target in March 2023 to use SAF for 10% of. its fuel by 2030. In October 2022, an A320neo Plane airplane left from. Tianjin and landed in Xian using a 5% SAF mix, with SAF. produced locally by Sinopec subsidiary Zhenhai Refining &&. Chemical Co (Zhenhai Refining), China Daily reported. In July. 2023, an Air China flight from Hangzhou to Beijing. significant China's very first use of SAF in a commercial flight, using a. 10% SAF blend, according to CGTN.
JAPAN
Japan is mandating that 10% of air travel fuel for. international flights utilizing Japanese airports be sustainable. starting in 2030, the Ministry of Economy, Trade, and Industry. said in May 2023.
Nippon Paper Industries Corp, Sumitomo Corp. and Green Earth Institute Corp agreed in. February 2023 to
jointly research study
bioethanol production made from woody biomass. The task,. Aims to produce bioethanol from Nippon Paper's if it prospers. mills in the 2027 fiscal year to be used as feedstock for SAF. production.
Fuji Oil Co Ltd started
preparation production
of bio-SAF at Sodegaura Refinery with Itochu Corp. in May 2023.
Eneos Holdings Inc agreed to study production of up. to 500 million litres (3.1 million barrels) of SAF and renewable. diesel annually collectively with Australian refiner Ampol. Japan's leading airlines, All Nippon Airways (ANA) and. Japan Airlines (JAL), have broadened their SAF purchases. by adding products from trading home Itochu Corp and U.S. producer Raven SR . Other business exploring SAF production in Japan consist of. Mitsubishi Corp, Boeing, and TotalEnergies SE .
SAF is set to replace 10%, or 1.34 million kilolitres, of. fuel utilized by Japanese airline business by 2030, according to. the Japan Transport and Tourism Research Institute (JTTRI).
PHILIPPINES
There is no set SAF mandate in the Philippines as of. February 2024.
Cebu Pacific flew an airplane from Singapore to Manila. powered by a 35% SAF mix from Neste in September 2022.
The airline signed a long-lasting tactical partnership with. Shell Eastern Petroleum to make SAF more commonly offered for. its fleet via the supply and purchase of SAF in Asia Pacific and. the Middle East, with an initial volume of a minimum of 25,000. metric loads per year.
AUSTRALIA
There is no set SAF required in Australia as of February. 2024. Qantas Group introduced the Sustainable Aviation Fuel. Union (SAF Union) in cooperation with Australia Post,. KPMG Australia, Macquarie Group, the local arm of Boston. Consulting Group and Woodside Energy on Nov. 11, 2022. Qantas and Jet SE will jointly invest A$ 2 million. ($ 1.34 million) in a biofuel refinery being set up in. Australia's Queensland state that would transform agricultural. spin-offs into SAF.
The refinery is anticipated to produce approximately 100 million litres. of SAF a year, with construction due to begin in 2024. This is the first investment from a $200 million fund Qantas and. Jet set up last June to begin the SAF industry in. Australia.
The airline company expects about 10% of its fuel to come from SAF. by 2030, and 60% by 2050.
Last November, Climate Leaders Union members Ampol. , Brisbane Airport, Deloitte, Qantas and Viva Energy. proposed the facility of an East Coast SAF. passage in their Scope 3 Roadmap.
Australia's very first Jet Zero-style council, designed on the. eponymous government-industry partnership for SAF production in. Britain, is anticipated to hold its very first conference this monetary. year ending in June 2023, stated a representative from the. Department of Infrastructure, Transport, Regional Advancement,. Communications and the Arts.
The council will match the Air travel White Paper, which. is expected to finish up early 2024.
NEW ZEALAND
There is no set SAF required in New Zealand as of February. 2024.
Channel Infrastructure NZ Ltd's scoping study for. green hydrogen and synthetic sustainable air travel fuel. production at Marsden Point is relocating to the
pre-feasibility
stage, supported by the federal government's Energy Performance and. Preservation Authority.
Air New Zealand and the New Zealand government. strategy to invest more than 2 million New Zealand Dollars
(source: Reuters)