Latest News
-
California imports Saudi Arabian gas for the first time since 2022
Data from oil analytics company Kpler revealed that fuel importers in California received gasoline from Saudi Arabia’s Jubail industrial port after maintenance at India's world's biggest refinery helped to open up the rare arbitrage. Kpler reports that three gasoline shipments, totaling 886,000 barrels, from Saudi Arabia's Jubail industrial port have been discharged at Southern California's Olympus terminals in the last few months. California hadn't imported fuel from Saudi Arabia since the year 2022. In 2025, about 40% of the gasoline imported by the terminal came from Jamnagar. This was because Jamnagar had a maintenance shutdown in April. Yui Torikata, Kpler's analyst, said that this forced buyers to look to Saudi Arabia for an alternative supplier. Fuel imports to California rose to the highest level in four years in may, as the state with the largest oil consumption in America sought to compensate for refinery problems at home by using other unconventional routes. California regulators are proposing investments to increase fuel import capacity as the state prepares to close refineries that provide about 17% its fuel needs. Torikata stated that "there are concerns about the upcoming closures" of two refineries. Recent favorable freight costs also encouraged the large imports. (Reporting from Seher Dareen and Shariq Khan in London; editing by Barbara Lewis.)
-
Enel's profit in Italy grew by a hefty 1 billion euro in the first half of this year
Enel, the Italian utility, reported an increase of 1% in its core ordinary profit for the first half when asset sales are excluded. It also announced that it will launch a share-buyback program worth up to one billion euros in later this year. EBITDA (earnings before interest, tax, depreciation, and amortization) was 11.5 billion euro, which is above the analyst consensus of 11 billion euros. Enel reported a normal EBITDA between January and June of 11,4 billion euros. Enel stated that lower energy prices for end-customers and renewables in Italy affected its domestic margins. However, the positive impact from its Spanish business as well as grids in Italy or Argentina was more than offset. Enel has confirmed that it expects an EBITDA between 22.9 and 23.1 billion euro and a net income between 6.9 and 7.9 billion euro for the entire 2025 period. The Group's ordinary net profit rose by 4.4%, to 3.8 billion Euros, exceeding analysts' expectations of only 3.6 billion Euros. The net financial debt at the end June was 55.5 billion euro, down from the 55.8 billion euro forecast at the end 2024. Enel's shareholders granted the board in May the authority to launch an share buyback program worth up to 3,5 billion euros to reward investors along with dividends. The company announced that the first tranche will be paid from August 1, until December 31, at the latest. (1 dollar = 0.8744 euro) (Reporting and editing by Elvira pollina, Alvise Armellini, Keith Welr)
-
PG&E's profits miss estimates due to higher maintenance, operating costs
The utility firm PG&E Corp. narrowly missed Wall Street expectations for the second-quarter profits, due to an increase in operating costs. The company's total operating and maintenance expenses rose by 3.7%, to $2.86 Billion. It also said that wildfire claims, net recoveries, and the utility’s wildfire fund expenditure increased from one year ago. PG&E is responsible for a number of wildfires in California, including the most deadly. It has made investments to improve its grid's reliability. The utility stated that it would build 700 miles underground power lines, and upgrade 500 miles of wildfire safety systems between 2025-2026. Patti Poppe, CEO of the company, said that over 10,000 sensors have been deployed in high-risk zones to detect problems early and reduce outages. The utility said that it would also be working on supplying 10 gigawatts of new electricity from data center projects in the next ten year. The final engineering phase of 17 data centers totaling 1.5 GW is expected to start operations in 2026 or 2030. As tech giants look for places to build data centres to meet the increasing computational needs of artificial intelligence, electric utilities in the U.S. have seen a surge in requests for power capacity. In the second quarter, the company added 3,300 new electric grid customers. The total operating revenue for the quarter fell from $5.99 billion to $5.90billion. According to LSEG, PG&E's adjusted quarterly profit was 31 cents per diluted share for the period ending June 30. This missed Wall Street's expectations by one cent per share. In afternoon trading, the company's stock was down by 1.3%. (Reporting and editing by Shash Kuber in Bengaluru, with Sumit Saha reporting from Bengaluru)
-
Pirelli reduces revenue forecast for 2025 due to currency impact
Pirelli, the Italian tire manufacturer, lowered its revenue forecast for 2025 on Thursday as a result of expected adverse currency movements. The company has lowered its target to an estimated range of 6.7-6.8 million euros ($7.66-7.78 million) compared to its previous target of 6.8-7.0 millions euros. Pirelli reported that currency fluctuations caused a 2.9% loss in revenue compared to the first half of last year due to the weakening of the U.S. Dollar and the volatility of currencies of emerging countries against the euro. The firm has confirmed that it aims to achieve a margin of adjusted EBIT around 16 percent for the entire year. Why it's important Pirelli reported that 9 of the 15 board members voted in favor, while the Sinochem-linked members including Chairman Jiao Jian voted against. Chinese and Italian investors are fighting over the governance of the group. Sinochem, the state-controlled Chinese company, is Pirelli's biggest investor, with 37%, and Camfin, the Italian businessman Marco Tronchetti Provera's vehicle, has 27.4%. Camfin says that Pirelli's large Chinese presence is a threat to their ambitions to expand in the United States. Over 20% of the firm's revenues are generated in North America. By the Numbers According to company data, Pirelli, which is the only supplier of Formula One tyres, reported a core profit for the second quarter (adjusted EBITA) of 278.5 millions euros. This was up 0.7% on the previous year and exceeded the consensus estimate of 274million euros. The quarter's core profit margin was 16%. The Milanese firm's net profit for the second quarter was 136.8 millions euros, which is above the consensus of 123 million euro, and its revenues were 1.74 billion euros. This is in line with expectations.
-
Two rival governments could divide Sudan
Political analysts claim that Sudanese Paramilitaries have formed a parallel government with the army of the country, further pushing Sudan towards de facto splintering. Sudan's army, along with the paramilitary Rapid Support Forces(RSF), are fighting to control al-Fashir, the last foothold of the army in western Darfur, and an RSF stronghold. Last week, a coalition led by RSF announced members of a new parallel government. Analysts say that while it hasn't yet established institutions, or been recognized, a possible breakaway from its territory would precipitate a new split in Sudan after the 2011 secession by South Sudan. How did this happen? In 2021, the Sudanese army and RSF worked in tandem to remove the civilian politicians that had taken over the government of President Omar al-Bashir two years before. In April 2023 war broke out over the integration of RSF fighters in the armed forces. The RSF seized large parts of the country. However, the army forced them to leave the capital Khartoum earlier this year and move towards the west. The RSF has been calling the internationally recognized army-led administration illegitimate throughout the war and has taken measures to create its parallel administration. In May, the military installed Kamil Idris as prime minister. He has since appointed ministers for a new “Hope Government”. The formation of his cabinet has been hampered by disagreements between army leaders, and former rebels who have joined forces with the RSF. Some cabinet members have also ties to Bashir’s former party. This reflects the army's desire for Islamist support. WHAT DOES EITHER SIDE CONTROL? Sudan's army, from its capital during the war in Port Sudan at the Red Sea has retained control over Sudan's eastern and northern states. It also regained control of its central states, and Khartoum where it plans to relocate. RSF seized the majority of Darfur, with the exception Al-Fashir where fighting continues and mass hunger is a result. The paramilitary is also aligned with the SPLM-N, a rebel group that controls large swathes in South Kordofan on the border of South Sudan. West Kordofan, North Kordofan, and the oil-rich West Kordofan are still contested. The RSF recently expanded its international borders by taking control of the "border triangle" in the north with Libya and Egypt. HOW DID RSF BUILD ITS GOVERNMENT? The RSF, along with other Sudanese political groups and rebels, formed the coalition "Tasis", aiming to create a single government in all of Sudan. The coalition signed the constitution in May. It established a cabinet and a parliament. In July, the coalition announced that it had formed a presidential Council led by RSF chief Mohamed Hamdan Dagalo with Hilu, of the SPLM-N, as his deputy. In addition to the regional governors, there was also a former government official Mohamed Hassan al Taishi as prime minister. What does this mean for Sudan? Analysts believe that the formation of parallel governments may lead to a stalemate similar to Libya or worse, fragmentation as the RSF and other armed forces claim their territories. Both governments may also find it difficult to get the international support they need to rebuild Sudan’s economy and infrastructure. The U.N., and African Union, have both condemned the parallel government of the RSF. The RSF has also seen a proliferation of militias, which have helped the paramilitary to advance but are also difficult to control. Nyala in southern Darfur is the seat of RSF government. It has witnessed a rise in crime, including kidnappings. Residents and soldiers have also protested. The area has been frequently targeted by air and drone attacks. The coalition of the army, which includes former rebel groups and tribes militias, is also fragile. While the army is internationally recognized, and has support from regional powerhouses such as Egypt; many countries are still reluctant to deal with them because of the coup of 2021 and Islamist influence. The United States has also sanctioned Abdel Fattah al-Burhan, the army chief. (Reporting and editing by Helen Popper; Khalid Abdelaziz, Nafisa Altahir)
-
Exelon claims that the potential demand for data centers is greater than 30 gigawatts
Exelon, a major U.S. electric utility, has 33 gigawatts worth of data centers interested in connecting to their system. The company is exploring its options to add new power supplies to keep up with the demand explosion, executives at the company said on Tuesday. Electric utilities are receiving massive requests for energy to power Big Tech's AI data centers. This is driving U.S. electricity consumption to new heights and putting pressure on the grid. Three gigawatts of power is enough to run all the homes in California combined with New York, Texas and New York. Exelon reports that 17 gigawatts of this amount are already connected to its system. Another 16 gigawatts, which will be studied, are expected to join the formal pipeline before the end the year. Exelon provides service to more than 10 million customers via six transmission and distribution utilities that are fully regulated. Exelon, a Chicago-based company, is considering whether it can build and own power plants. Electric utilities are prohibited from doing so in several states of the United States. In these states, the regulated utilities are responsible for power lines while independent power producers operate and own power plants. In some states, such as Pennsylvania and New Jersey there are proposals to allow utilities to own and develop power plants. Calvin Butler, Exelon's CEO, said during a conference call with investors that "we want to be part the solution." "The demand is not met by the supply." Exelon's overall revenue for the second quarter was $5.43 billion. This compares to an average analyst estimate of $5.38billion, according to LSEG data. The earnings at PECO, Pennsylvania's largest natural gas and electric energy company, increased by 51%, to $136 millions, during the quarter. The earnings of its Commonwealth Edison unit, the largest electric utility company in Illinois, dropped 15.6% to $228 millions. The company confirmed its adjusted full-year profit forecast for 2025 of $2.64 - $2.74 per share. Analysts had expected $2.69 per stock. Exelon reported adjusted operating earnings per share of 39 cents for the period April-June, compared to analysts' estimates of 37 cents. Reporting by Laila Kerney in New York; Pranav Mathur, Katha Kalia and Aurora Ellis in Bengaluru. Editing by Shreya Biwas, Shailesh Kumar and Aurora Ellis.
-
President says that state-owned partnerships could take over the ports operated by CK Hutchison in Panama.
Panama's president Jose Raul Mulino stated on Thursday that public-private partnerships may take over two important ports near the Panama Canal if a court invalidates CK Hutchison's contract to operate them. CK Hutchison owns 90% of the local Panama Ports Company. This company had a 25 year concession to operate Balboa Port and Cristobal Port, which are located at the ends of the Canal. The concession was renewed in 2021. The contract is at the heart of a dispute after U.S. president Donald Trump threatened this year to take control of the waterway because China has influence over Panama's marine industry. CK Hutchison wants to sell its stakes in the Panamanian firm as part of a massive global deal Two suits were Filed with the Supreme Court The Panamanian Comptroller-General's Office filed a complaint this week, seeking to declare the agreement as unconstitutional, and nullify it on the grounds that the renewal had not followed the required legal steps including the Comptroller’s approval. Mulino said at a press briefing that he did not see the Panama Ports contract continuing, whether it was amended or not. Mulino said, "We'll wait for the decision," Mulino said in reference to the lawsuits. The comptroller has publicly criticized the contract for alleged irregularities committed by the former government, and the insufficient income generated by the deal to Panama. However, the full results from a recent audit conducted by his office are not yet available. Legal challenges in Panama have complicated a highly sensitive diplomatic plan by a consortium headed by U.S. asset management firm BlackRock, to purchase a significant portion of CK Hutchison’s global ports business. The deal has been praised by Washington but criticized by China. The deal has been made Increasingly politicized A U.S.-China Trade War is underway. Beijing claims it has important national interests in this transaction, and that the proposed deal is a betrayal to the country. The government of Panama is looking at partnerships with the state to operate a copper mine that was previously operated by Canada’s First Quantum Minerals. Their contract has been declared invalid. Unconstitutional Mulino explained that the idea was still in draft form, and would cover the ports as well as the mines through partnerships with state. (Reporting and writing by Elida Moreno and Marianna Pararaga; editing by Brendan O'Boyle).
-
Judges ask if Trump tariffs authorized by emergency powers
On Thursday, U.S. appellate court judges questioned whether President Donald Trump’s tariffs could be justified by his emergency powers after a lower federal court ruled that he had exceeded his authority in imposing sweeping duties on imported goods. The U.S. Court of Appeals, Federal Circuit, in Washington, D.C., examines the legality of the "reciprocal tariffs" that Trump imposed against a wide range of U.S. trade partners in April, and tariffs imposed by Trump in February on China, Canada, and Mexico. Judges pressed Brett Shumate, the government's lawyer, to explain the International Emergency Economic Powers Act, a 1977 law that was historically used to sanction enemies or freeze their assets. Trump is the first President to use IEEPA for tariffs. The judges often interrupted Shumate and hurled a barrage of questions at his arguments. One of the judges stated that "IEEPA does not even mention tariffs." Shumate stated that the law gives "extraordinary" powers in an emergency. This includes the power to completely stop imports. He said IEEPA allows tariffs to be imposed because it gives a president the ability to "regulate imports" in a time of crisis. The states and companies that challenged the tariffs argued they were not allowed under IEEPA, and that Congress and not the President has the authority to impose tariffs and taxes. Neal Katyal is a lawyer representing the businesses. He said that the government's argument claiming the word "regulate", includes the power of taxation, would be a vast extension of presidential powers. These arguments, which come just one day before Trump is planning to raise tariffs on imports from almost all U.S. partners, are the first time that a U.S. court has tested the extent of Trump's tariff authority. The president's foreign policy has been centered around tariffs, which he uses aggressively during his second term to leverage trade negotiations and push back on what he calls unfair practices. Trump said that the tariffs in April were a reaction to persistent trade imbalances between the United States and a declining manufacturing power. He said that the tariffs on China, Canada and Mexico are justified because these countries do not do enough to prevent illegal fentanyl from entering U.S. border. These countries deny this claim. Shumate cited an appeals court ruling from 1975 that authorized President Richard Nixon to impose a 10% surcharge on all imported goods in order to slow inflation. The decision also stated that the president was not authorized to impose "whatever rates of tariff he considers desirable." Shumate said that courts could not review a president’s actions under IEEPA, or impose any additional limitations that were not in the law. Several judges stated that this argument would essentially allow IEEPA to overwrite other U.S. law related to imports and tariffs. Katyal said that the Trump administration's arguments ignored the limited nature of Nixon’s tariffs as well as changes in the law since 1970s. Katyal stated that "no trade law has ever been interpreted in the past 200 years to give this power to the president." A panel consisting of eight judges appointed by Democratic Presidents and three by former Republican Presidents is hearing the case. The court's decision will not be made for some time, but the losing party is likely to appeal immediately to the U.S. Supreme Court. TRADE NEGOTIATIONS Tariffs have become a major source of revenue for the federal government. In June, customs duties quadrupled to $27 billion. This was a record. Through June, they had topped $100 billion in the current fiscal. This income could be vital to offset the lost revenue due to Trump's tax law, which was passed earlier this month. Economists warn that the duties could increase prices for U.S. customers and decrease corporate profits. Trump's intermittent tariff threats have disrupted financial markets, and U.S. businesses' ability to manage their supply chains, production and staffing, and set prices. A three-judge panel of U.S. Court of International Trade on May 28 sided with Democratic states and small business that challenged Trump. The court ruled that the IEEPA didn't authorize tariffs based on long-standing trade deficits. Federal Circuit allowed tariffs to be in place until it considered the appeal of the administration. The case won't affect tariffs imposed under traditional legal authority such as steel and aluminum import duties. Following smaller agreements with Britain and Indonesia, the president announced recent trade deals which set tariff rates for goods imported from Japan and the European Union. Trump's Department of Justice argued that limiting Trump's tariff authority would undermine ongoing trade talks, while other Trump representatives have stated that negotiations continued without much change following the initial setback at court. Trump has set a date of August 1, 2018 for the introduction of higher tariffs against countries that refuse to negotiate new trade agreements. At least seven other lawsuits have been filed against Trump's IEEPA citation, including those brought by small businesses in California and other states. In one of these cases, a federal judge in Washington, D.C., found against Trump. No judge has so far backed Trump's claim to unlimited emergency tariff authority. Dietrich Knauth, Noeleen Walder, Leslie Adler and Deepa Babington edited the article.
Trump imposes tariffs on Brazil of 50%, but excludes aircraft, OJ and energy
Donald Trump, the U.S. president, imposed a 50% tariff Wednesday on Brazilian goods in response to what he called a witch hunt against former President Jairbolsonaro. However, he softened his blow by exempting sectors like aircraft, energy, and orange juice from higher levies. This came as a welcome relief to many in Brasilia who, since Trump announced his tariff earlier in the month, had been calling for protections for major Brazilian exporters caught up in the crossfire. The shares of Embraer, a plane manufacturer, and Suzano, a pulp maker rose.
The Brazilian Treasury Secretary Rogerio Ceron said to reporters that "we're not in the worst case scenario." It's a better outcome than could have been.
The new tariffs are set to go into effect August 6, and not August 1, as Trump originally announced. The White House linked the tariffs in a Wednesday factsheet on Trump's executive orders to Brazil's prosecution against Trump ally Bolsonaro. Bolsonaro is currently on trial for allegedly plotting to overturn the 2022 election loss. The U.S. announced sanctions against a Brazilian Supreme Court judge overseeing Bolsonaro’s trial. They accused the judge of authorizing pre-trial detentions that were arbitrary and of suppressing freedoms of expression.
Trump's executive orders formalizing a tariff of 50% excluded dozens key Brazilian exports into the United States. These included civil aircraft, pig-iron, precious metals and wood pulp as well as energy and fertilizers. Embraer stated that an initial review indicated a 10% tariff, imposed by Trump back in April, remains in effect. The exclusion applies to the additional 40 percent.
Rafael Favetti is a partner in the political consultancy Fatto Inteligencia Politica, located in Brasilia. He believes that these exceptions may be a response to U.S. company concerns, and not a retreat from Trump's attempts to influence Brazilian politics.
He said that "this also shows Brazilian diplomacy has done its job correctly in raising awareness among U.S. businesses."
Mauro Vieira, Brazilian Minister of External Affairs, said he had met with U.S. Sec. of State Marco Rubio to reaffirm his country's willingness for negotiations on tariffs. This is a sign of a possible restart of the negotiations which stalled back in June.
Vieira said that Bolsonaro’s legal problems cannot be considered in negotiations. The State Department didn't immediately respond to a comment request.
A SMALLER EFFECT
Welber Baral, former Brazilian Trade Secretary, estimated that Brazil exports around 3,000 different types of products to the United States.
Barral stated that "there will be an effect." According to an analysis by the American Chamber of Commerce for Brazil, almost 700 products are exempt from the new tariffs. This represents 43.4% of Brazil’s total exports by value. Embraer, which exports 70% of its executive aircraft to the United States, and 45% of commercial aircraft, was a major concern for Bolsonaro’s leftist opponent, President Luiz inacio da Silva.
Analysts also warned that Suzano could suffer a severe impact, as it is one of the largest wood pulp producers in the world.
In Sao Paulo, Embraer's shares rose by 11% and Suzano's gained more than 1% during afternoon trading.
IBP, a lobbying group for oil, said that after oil products are listed as exempted from the new tariffs, oil shipments will resume to the U.S. Ibram, the mining lobby, stated that exemptions covered 75% of all mining exports. The executive order of Wednesday did not include any exemptions for coffee or beef, two important exports to the United States. Roberto Perosa is the head of Brazilian meatpacking group Abiec. The group represents producers of beef, including JBS, Marfrig and Marfrig.
Cecafe, a group of Brazilian coffee exporters, said in a press release that it would continue to work for coffee being included as an exemption. The battle over tariffs will continue as the political motivations behind them provide ammunition to the plaintiffs who have filed a lawsuit.
Alex Jacquez who worked at the White House National Economic Council for former President Joe Biden said that the new tariffs are a violation of "both the law and Trump’s stated trade policy." He said that the tariffs would only increase coffee prices. "We have a large trade surplus with Brazil. These punitive duties will not rebalance unfair trade. Reporting by Luciana Magialhaes and Gabriel Araujo in Sao Paulo; Lisandra Paraguassu, Marcela Ayres and Ismail Shakil, in Brasilia; Kanishka Singh, in Washington; Manuela Andreoni, in Ottawa; Brad Haynes, Rosalba o'Brien, in Washington.
(source: Reuters)