Latest News
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Italian and Norwegian Associations Deepen Offshore Wind Ties
Norway’s offshore wind association Norwegian Offshore Wind has signed a memorandum of understanding (MoU) with ANEV, the Italian National Wind Association to increase offshore wind cooperation.The signing of the MoU sets a framework for extensive cooperation between the two organizations and is a natural next step for the offshore wind cooperation between these two markets.The MoU covers cooperation in areas such as offshore wind, and power-to-x and energy storage from offshore wind.Envisaged activities are conferences, workshops, market visits and networking activities for the companies in the two organizations.“The Italian offshore wind market is attractive for our member companies, with a strong pipeline of floating offshore wind projects, an offtake model ready to be implemented into auctions this year and strong regional supply chains,” said Saverio Ventrelli, leader of the Working Group for Italy in Norwegian Offshore Wind.“ANEV is fruitfully working with Italian companies and policy makers to make the most of the potential of offshore wind for the decarbonisation and energy independence of our country, and the signing of this MoU represents an important opportunity for Italian and Norwegian companies to work synergistically to achieve these goals,” added Davide Astiaso Garcia, Secretary General of ANEV.
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UK to Revise Windfall Oil and Gas Tax
Britain plans to overhaul its windfall tax regime on oil and gas producers once current levies run out in 2030, it said on Wednesday as it vowed to transform the North Sea into a renewables hub.The government is asking industry players and others to provide feedback until May 28 on policy options including taxing what it calls "excess revenue". It did not announce specific price thresholds in this consultation.Any new regime would likely apply to the price producers receive after the use of financial products commonly employed to shield them from price fluctuations, according to the consultation document.In October, Britain's Labour government upped its windfall tax on oil and gas producers to 38% from 35% and extended the levy by a year to March 2030, bringing the headline tax rate on the sector to 78%, among the highest in the world.A 25% windfall tax was first introduced by the previous Conservative government in May 2022 in the wake of soaring energy prices following Russia's invasion of Ukraine. The tax was subsequently increased to 35% in November 2022, and extended by one year in March 2024.Oil and gas producers have argued that the windfall levy has hit profits and brought uncertainty over investments, hastening an already advanced decline of oil and gas output in the British North Sea.Energy minister Ed Miliband said that oil and gas production would continue to play an important role in the energy mix, and the government was committed to maintaining existing fields for their lifetime.Wednesday's plans reiterate the government's intention not to allow any new oil and gas licenses.Alongside oil and gas production, the government also wants to ensure that clean energy sources such as hydrogen, carbon capture and wind start to thrive, creating new jobs.(Reuters - Reporting by Muvija M, Sam Tabahriti, Shadia Nasralla; Writing by Shadia Nasralla and Sarah Young; Editing by Sachin Ravikumar and Christina Fincher)
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The biggest weekly oil drop since October due to tariff uncertainty and supply gains
The oil price was little changed on Friday, but is set to have its biggest weekly drop since October due to the uncertainty surrounding U.S. Tariff policy creating concern about the growth of demand at the same time that major producers are planning to increase their output. Brent futures were up 17 cents or 0.24% to $69.63 per barrel at 0315 GMT. U.S. West Texas Intermediate Futures rose 12 Cents, or 0.1%, to $66.48 per barrel. Brent, however, is set to drop 4.9% this week, its largest weekly decline since October 14. WTI will also drop by 4.8% this week, which is its largest weekly decline since the week of October 14. The U.S. trade policy, which is the largest oil consumer in the world, has caused a whipsawing effect on the oil markets. Vandana Insights, a provider of oil market analyses, said: "It appears that the financial markets have entered a panic mode. They are no longer easily calmed by Trump's postponements for one month and exemptions from import tariffs." She added, "Crude is now stuck at four-month lows. It's vulnerable to further declines." The U.S. president Donald Trump has suspended 25% tariffs on the majority of goods imported from Canada and Mexico, until April 2. However, steel and aluminum tariffs will still be in effect as planned on March 12. The amended order doesn't cover all Canadian energy products. These are subject to a separate 10% tax. Tariffs are seen as a hindrance to economic growth, and by extension the growth of oil demand. The uncertainty surrounding the policy also impacts the economy. The BMI research unit of Fitch said that the risks for oil prices are still to the downside, as new supply from OPEC+ producers and non-OPEC ones is expected to push the markets well into oversupply. Brent prices fell on Wednesday to their lowest level since December 2021, after U.S. crude stocks rose, and following the Organization of the Petroleum Exporting Countries (OPEC+) decision to increase its output quotas. The group announced on Monday it would proceed with its planned increase in April production, which will add 138,000 barrels of oil per day to market. As the U.S. considers steps to halt Iran's exports, some of the downward pressure on prices has ebbed. In his first major address to Wall Street executives, U.S. Treasury secretary Scott Bessent stated that "we are going to shut Iran's oil industry and drone manufacturing capability." Sources told Reuters on Thursday that Trump was considering a plan for inspecting Iranian oil tanks at sea, using an agreement aimed at weapons or mass destruction. This is part of his "maximum" pressure to reduce Iranian oil exports to zero. (Reporting and editing by Christian Schmollinger, Sonali Paul and Mohi Nrayan)
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Couche-Tard considers selling US stores if a deal is struck with Seven & i
Alimentation Couche-Tard, a Canadian company, said that it was in exploratory discussions with third parties regarding a possible sale of U.S.-based stores. This would allow it to gain regulatory approval if it were to reach a deal for the takeover of Japan's Seven & i Holdings. Circle-K, the operator that has bid $47 billion to buy 7-Eleven, has said that it has identified an American portfolio and is currently in discussions to "identify potential acquirers". A spokesperson for Couche-Tard said, "We are committed to working with 7&i to obtain regulatory approvals. We have presented a strong proposal to 7&i to demonstrate our commitment." Seven & i opposes the bid, claiming that U.S. Antitrust Law would make a deal impossible. Both companies have about 20,000 convenience stores between them. Seven & i appointed its first non-American CEO on Thursday and gave him the job of reorganizing the company to fend the bid. Stephen Dacus, the new chief executive, said that he spoke with Couche-Tard on that particular day. He added that the talks would continue. However, there were significant regulatory obstacles, especially in the United States, that stood in the merger's way.
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Iron ore prices rise, but a weekly loss is expected due to tariff issues
Dalian iron ore prices rose on Friday, ending a nine session losing streak. However, they were still set to fall by a significant amount each week, due to reports of a reduction in steel production in China, and a escalating trade war between Washington DC and Beijing. By 0302 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange rose 0.65% to 777.50 yuan ($107.28). The contract is down 3.12% this week. The benchmark iron ore for April on the Singapore Exchange is 0.14% higher, at $100.5 per ton. This week it has lost 1.89%. Analysts at ANZ said that Beijing's efforts in supporting economic growth had boosted sentiment on commodity markets. China announced more fiscal stimuli on Wednesday and promised to increase efforts to boost consumption and domestic demand. Chinese officials left the door wide open on Thursday to add more stimulus measures to those announced this week at the annual parliament meeting, if economic growth falters. Washington increased tariffs on Chinese products by 20%, and Beijing retaliated with a 10% increase. Hexun Futures said that the steel production cutbacks in China could increase iron ore supplies, increasing pressure on ore price. China will restructure the giant steel industry by cutting output, despite not announcing any targets in its latest intervention to reduce overcapacity. Hexun, in a separate report, citing the China Iron and Steel Association, said that despite this, steel daily production increased by 13% month-on-month in February. Crude steel output also increased 5%. Coking coal and coke, two other steelmaking ingredients, rose on the DCE, by 1.88% and 1.00 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange were flat. The Shanghai Futures Exchange traded sideways.
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China's coal exports increase in January and February despite the risks to outlook
China's coal exports increased 2.1% in the past year, according to official data released on Friday. The import arbitrage was still open, despite the risks that could affect the outlook of imports. China releases data for both months together to reduce the impact of Lunar New Year which can fall in either month. Data from the General Administration of Customs shows that imports from January to February were 76.12 millions metric tons. This is up from 74.52million tons the previous year. Two major industry groups last week called for limits on coal imports from China, especially low-quality coals, due to an oversupplied marketplace. A warm and unseasonably dry winter has affected both the demand for coal as well as domestic prices. Shenhua, a major coal miner, also suspended its spot imports in order to protect domestic sales from port stocks. The plan of Indonesia, a major supplier, to begin using its government-set benchmark prices for international transactions on March 1 will create uncertainty for buyers and could cause further imports this month. Analysts at Guosheng Securities stated in a report that the requirement to use government index – which ranges between $1.5 and $14 higher than the ICI index based on the grade coal – is expected to raise the cost of China’s coal imports. In a recent note, LSEG analysts stated that this will likely reduce China's coal demand and lead buyers to switch to domestic coal. Analysts at the China Coal Transportation and Distribution Association predict that imports of coal will drop by 1.9% this year to 525 millions tons, down from a record high in 2024. Guosheng Securities reported that thermal coal imports fell even more dramatically, falling 4.9% to 385 millions tons due to a weaker yuan as well as a narrowing of import arbitrage. China has also imposed 15% tariffs on U.S. imports of coal as tensions in trade between the two largest economies increase. Analysts say that shipments from the U.S. make up only a small part of imports, and could be replaced by other foreign suppliers. According to the Statistics Bureau, China's coal consumption will increase by 1.7% annually in 2024. (Reporting and editing by Christopher Cushing; Colleen howe)
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Weather-related disruptions in Australia have affected iron ore supplies to China for January and February.
China's imports of iron ore in the first half of 2025 dropped by 8.4% compared to the same period last year, due to weather-related disruptions in Australia, a major producer. Customs data released on Friday showed that the world's largest consumer of iron ore imported 191 million metric tonnes during January and February. This number equates to an average monthly of 95.5 millions tons. This compares to 112,49 million tons for December and 103.2 million tonnes in 2024. China combines data on imports for January and for February in order to reduce the impact of the Lunar New Year, which is a week-long holiday that changes every year. Analyst Shan Peng of trading company China Base Ningbo Group said that the annual drop is due to weather-related disruptions in Australia and Brazil, two major suppliers. The cyclone Zelia - the worst cyclone to hit Western Australia since April 2023 - has forced the suspension of operations at the major iron ore hubs in the state, Port Hedland & Dampier. Rio Tinto, world's biggest iron ore producer expects to lose 13 million tons from the cyclones which have affected Australia's westcoast and disrupted ore shipments in this year. (Reporting and editing by Amy Lv, Lewis Jackson)
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Investors take stock of US Trade Policy and see stocks fall, bond sales abate
After a turbulent week, investors were greeted with calm Friday, after the confusion surrounding U.S. Trade Policy and a global increase in borrowing costs. A steep selloff of bonds subsided and currencies stabilized, although stocks followed Wall Street lower. Overnight, the Nasdaq confirmed that it had been in a corrective phase since its peak in December last year. U.S. stock markets are facing headwinds due to a dimming outlook for growth in the largest economy in the world and uncertainty surrounding President Donald Trump's trade policies. Trump suspended on Thursday the 25% tariffs that he had imposed on most goods coming from Canada and Mexico, until April 2, the date he threatened to impose an international regime of reciprocal duties on all U.S. Trading Partners. Trump's rapidly changing trade policy has sent the markets into a tailspin. However, currencies such as the yen, the Swiss franc and gold have been some of the few assets that investors have sought out as they look for safety. The Japanese yen was near its highest level in five-months at 147.95, and on course for a weekly gain of 1.8%, while the Swissie reached a new three-month high of 0.8822 to the dollar. The gold price dropped slightly but was still close to a record at $2,904.62 per ounce. Tony Sycamore is a market analyst with IG. He said that the rapidly shifting sands from U.S. Tariffs have turned into quicksand, which businesses in Canada, Mexico and the U.S. are drowning in. I'm not very confident about investing money in the market at this time because there is so much uncertainty. "It's a terrible, horrible environment for investors to operate in." The sharp decline in European bond prices, triggered by Germany’s massive spending plan, showed signs of easing on Friday. Bund futures rose more than 0.8% while French OAT futures rose 0.7%. Bond yields are inversely related to bond prices. In Japan, the government bonds continued to be sold, but at a lower level than during the previous session. The yield on the 10-year Japanese Government Bond (JGB) rose by 1.5 basis points, to 1.53%. This is its highest level since 2006. Meanwhile, the yield on the 20-year bond increased by 2 bps, to a record high of more than 16 years, 2.22%. The euro has been on fire this week due to the surge in European borrowing rates. It is expected that the currency will have its biggest weekly gain in almost five years by Friday, at over 4%. It was last trading 0.07% higher, at $1.0794. The European Central Bank cut rates again on Thursday, but warned that "phenomenal uncertainties" could lead to inflation. This includes the possibility of trade wars or increased defence spending. Mark Wall, chief European Economist at Deutsche Bank said that the ECB is in a difficult position due to the imminent threat of U.S. Tariffs. This could lead to further policy rate reductions - or even a move towards stimulative territory – and the increasing commitment for higher defence expenditures over the next few years. This environment calls for a deft touch on the monetary lever, and the preservation policy flexibility. ASIA STOCKS UPBEAT MSCI's broadest Asia-Pacific share index outside Japan traded at 0.5% lower last week, but was on course for a gain of over 2.5% in a single week, the largest weekly increase since nearly six months. Investors continued to pour money into shares of artificial intelligence and were encouraged by Beijing's new policy. The blue-chip index of China, the CSI300, fell by 0.2% but is expected to gain 1.5% this week. Meanwhile, the Shanghai Composite Index is also on course for a weekly gain of 1.85%. Hong Kong's Hang Seng Index grew 0.3%, and was on track for a weekly gain of more than 6%. Goldman Sachs analysts wrote in a report that they expect fiscal easing to be significant this year. They also said there would be a greater focus on high-tech manufacturing and consumption. Japan's Nikkei fell 1.85%. Investors will be focused on the February U.S. Nonfarm Payrolls Report, which will give them further insight into the health of the largest economy in the world. After January's 143,000 job gains, 160,000 new jobs are expected to have been created in February. Investors are betting on more Federal Reserve rate cuts in 2019. This is due to a series of disappointing U.S. data and concerns about Trump's tariffs. Fed funds futures show just under 77 basis points of ease priced into this year. The dollar has also been pushed down, and is expected to drop by more than 3% in a week against a basket. Brent crude futures rose 0.27%, to $69.65 a barrel, while U.S. West Texas intermediate crude futures rose 0.2%, to $66.49 a barrel. (Reporting and editing by Jamie Freed; Rae Wee)
Singapore Airlines posts record annual profit, flags challenging macro
Singapore Airlines on Wednesday posted a record yearly profit and raised its dividend, reflecting strong travel demand in North Asia, but flagged geopolitical problems, supply chain snags and strong competition as difficulties dealing with the sector.
The city-state's flag carrier likewise highlighted strength in freight need towards the end of the fiscal year amid a shift to air freight by various carriers due to security concerns in the Red Sea region.
Cargo need enhanced towards the end of FY2023/24 on the back of healthy e-commerce demand, durable and growing sectors such as perishables and concerts, the company stated.
Singapore Airlines said the need for flight remained healthy in the very first quarter of fiscal 2024-2025 on the back of a choice up in forward reservations in North and South East Asia.
The carrier reported yearly net profit of S$ 2.68 billion ($ 1.99 billion) for the fiscal ended March 2024, compared with S$ 2.16 billion a year ago.
It also declared a last dividend of 38 Singapore cents each, greater than the 28 Singapore cents a year earlier.
Singapore Airlines, however, expects traveler yields-- a. procedure of average fare paid per mile, per passenger-- to. continue to moderate as airline companies expand capability, specifically in. the Asia-Pacific area.
The airline company market continues to deal with obstacles including. rising geopolitical tensions, an unpredictable macroeconomic. climate, supply chain restrictions and high inflation in lots of. parts of the world, it said.
SIAL stated it plans to redeem all staying zero-coupon. compulsory convertible bonds (MCBs) that it issued in June 2021. to support its balance sheet amidst an almost total shutdown of. flight during the pandemic.
The latest redemption, to be paid to eligible bondholders on. June 24, will see SIAL meet the accreted principal amount. payable of S$ 1.74 billion.
(source: Reuters)