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What are the main recommendations for reforming UK’s water sector
A report published on Monday detailed a plan for overhauling Britain's water industry, aiming to protect consumers, investors and the environment. After releasing sewage levels that were unprecedented into rivers and lakes in England and Wales, the privatised water industry sparked widespread outrage. The Labour government promised major reforms after it was elected. Here are some of the highlights from the 88 recommendations made by the Independent Water Commission in the report: SINGLE WATER RULATOR The report recommends that a single regulator for water in England, and another in Wales replace the fragmented regulatory systems. The report stated that this would simplify oversight, close regulatory holes, and boost investor trust as the sector faces significant challenges due to climate change and population increase. OWNERSHIP OVERVIEW The Commission recommended tighter control over water company ownership, governance and investor priorities. It also suggested that the regulator be able to block ownership changes if it felt investors were not prioritizing the long-term interest of the company or its customers. It was recommended that regulators set "minimum" capital requirements to make companies less dependent on debt, and more financially resilient. ECONOMIC REGULATION The Commission called on a reset in economic regulation, with a "supervisory approach" for tailored supervision and earlier intervention. The Commission also recommended changes to Price Review to attract low-risk, long-term funding and ensure appropriate investment. NEW REGIONAL AUTHORITIES The report recommended creating eight regional water planning agencies in England and a national authority in Wales. The new authorities would be in charge of developing water investment plans and streamlining the existing planning process, as well as directing funding, and ensuring accountability for all sectors who have an impact on water. LONG-TERM National Strategy The Commission has called for the development of a National Water Strategy that covers at least 25-years and includes regular milestones. The strategy should be a guide for water use across sectors and supported by ministerial priority to guide regulations. NATIONAL SOCIAL TARIFF The report recommended that a national social tarif be implemented to provide consistent assistance to low-income consumers who are struggling to pay their bills. This would help reduce regional disparities. STRONGER ENVIRONMENTAL RULATION The report called for stronger environmental regulations, including better monitoring, stricter rules regarding abstraction, sludge and drinking water standards, as well as water supply. The report recommended mandatory water meters, revised tariffs and expanded rainwater harvesting. The report also identified areas where environmental legislation needed to be updated. INFRASTRUCTURE The report demanded reforms to the way water infrastructure is monitored, managed and delivered. This included new requirements that companies map and evaluate their assets. Reporting by Catarina demony. Mark Potter (Editing)
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EU ramps up retaliation as US tariff deal prospects diminish
According to EU diplomats, the European Union is looking at a wider range of countermeasures that could be taken against the United States. This comes as the prospects of an acceptable trade deal with Washington are fading. Diplomats report that a growing number of EU member states, including Germany are considering implementing a wide range of "anti-coercion measures" which would allow the bloc to target U.S. service and other sectors if negotiated deals were not reached. The European Commission (which negotiates trade deals on behalf of 27 member countries) had seemed to be on track for an agreement where the EU would have still faced a 10% U.S. duty on most of its exported goods, but with some concessions. These hopes seem to have been dashed following President Donald Trump’s threat to impose 30% tariffs by August 1 and the talks between EU Trade Commissar Maros SEFCIOVIC and U.S. counterparts last week in Washington. Sefcovic who said that a 30% tariff on transatlantic trade would "practically prevent" it, gave a sobering report to EU envoys about the current situation on Friday. The EU diplomats said that the U.S. counterparts he met with had proposed divergent solutions, including a base rate of well over 10%. Each interlocutor had a different idea. One diplomat stated that no one could tell what (Sefcovic), would work with Trump. The chances of the United States reducing or eliminating their 50% tariffs on aluminum and steel, and 25% on automobiles and auto parts are limited. 'NUCLEAR OPTION' Washington also rejected the EU demand for a'standstill' arrangement whereby no tariffs will be imposed following a deal. Diplomats claim that Trump cannot be restrained on issues of national security. This is the reason for Section 232 investigations into timber, semiconductors, and pharmaceuticals. EU diplomats report that the mood among EU member states has shifted, and that they are now more willing to respond, even though a negotiation solution is still their preferred choice. The EU currently has a package of tariffs that are suspended until the 6th of August. It is on goods worth 24.5 billion dollars (21.5 billion euros) from the United States. The EU still has to decide on another set of countermeasures for 72 billion euro of U.S. imports. The EU has also been discussing the use of its "anti-coercion instrument" (ACI), which allows it to take retaliatory action against third-country countries who put economic pressure on their member states to alter their policies. It would be possible to restrict U.S. investments, or limit U.S. access to financial services or public procurement markets, if the bloc was more focused on China. France has always backed the ACI. Others have resisted what they see as a nuclear alternative. Trump has threatened to retaliate against other countries who take action against the United States. Ursula von der Leyen, President of the European Commission, said last week that ACI was designed for situations beyond normal. She added: "We're not there yet." It would require a majority of 15 EU countries, which represents 65% of its population, to be able to use it. Diplomats in the EU say that it would only do this if it felt confident about passing it. However, there are signs of increasing support, including Germany, who has said it should be taken into consideration. Reporting by Philip Blenkinsop, Andrew Gray and Andrew Heavens; editing by Andrew Heavens.
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Two people killed and widespread damage caused by Russian attacks in Ukraine
The Russians attacked Ukraine overnight with hundreds of drones and missiles, killing two and injuring 15, causing fires and damage to several areas of the country. Ukrainian President Volodymyr Zelenskiy confirmed this on Monday. The night sky was lit up by explosions and drone engines were heard throughout Kyiv. Ukraine's airforce said that 426 drones had been launched along with 24 missiles. 23 drones hit their targets across Ukraine. Zelenskiy, a Telegram user, wrote: "Russian attacks are always against the humanity. A kindergarten in Kyiv was burned along with residential buildings and civilian infrastructure." Russian media reported that Ukraine also conducted drone attacks. This caused chaos at airports in Moscow where thousands of passengers were forced to wait in long queues, or sleep on the ground, after their flights had been cancelled or delayed. The Russian defence ministry reported that it has shot down 117 Ukrainian drones over night, including 30 in the Moscow area. Nearly three-and-a half years after Russia's full scale invasion began, the war in Ukraine is still going on. Efforts led by U.S. president Donald Trump to achieve a ceasefire have been unsuccessful. Zelenskiy stated on Saturday that he wants to speed up the ceasefire negotiations, and Kyiv has proposed new talks for next week. Dmitry Peskov, Kremlin spokesperson, said in comments broadcast on Russian state television Sunday that President Vladimir Putin is ready to move toward a peaceful settlement but that Moscow’s main goal remains to achieve its objectives. Trump is increasingly frustrated by Putin. Last week, he announced a series of weapon supplies to Ukraine including Patriot surface-to air missile systems. Last week, the European Union approved additional sanctions against Russia. These included measures designed to further damage Russia's oil and energy industries. Zelenskiy, who spoke on Monday, said that only real pressure against Russia could stop the aggression. 'UNBELIEVABLE WAR' Putin has not yet accepted a proposal by Trump for a ceasefire that was swiftly endorsed in Kyiv. After seeing the damage caused to Kyiv by Russian airstrikes, French Foreign Minister Jean-Noel Barrot stressed the need for increased pressure on Russia. "This is the reason the massive package we adopted on the European level last week is welcomed. It increases pressure against Vladimir Putin and increases the cost for this unimaginable war," said he. Sources said that Putin's conditions include a legally-binding pledge that NATO would not expand eastwards; Ukrainian neutrality, limits to its armed forces and acceptance of Russia’s territorial gains. Zelenskiy said that Ukraine would never recognize Russia's sovereignty in the occupied regions, and that Kyiv retained its sovereign right to decide if it wanted to join NATO. Officials from the city of Kyiv said that in the latest attack, a central metro station, commercial properties, shops, homes and a kindergarten have been damaged. Many people sought shelter in underground stations. Residents of Kyiv stood in a haze amongst shattered windows and scorched walls to survey the damage caused by a drone that hit the lower floors an apartment building. Ivano-Frankivsk's mayor said that his city, located in western Ukraine, had suffered the most intense attack during the war. Four people, including a child, were injured in Ivano-Frankivsk by the state emergency service. Kharkiv's mayor reported that the city, Ukraine's second-largest, had been hit by 12 air strikes over night and an industrial building for civilians caught fire. (Reporting and editing by Stephen Coates and Himani Sarkar, with additional reporting from Valentyn girenko and Olena Harmash; Additional reporting by Max Hunder)
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Zimbabwe's spodumene imports rise 30% despite low lithium prices
Official statistics show that Zimbabwean exports of spodumene, a mineral containing lithium and essential to battery production, increased by 30% in the first six months of 2025, despite low global lithium prices. According to figures obtained on Monday by the Minerals Marketing Corporation of Zimbabwe, Africa's largest lithium producer exported 586.197 metric tonnes of spodumene between January and June. This compares to 451,824 tons in the same period of last year. Prices of lithium, which is used to power batteries for renewable energy technologies, have fallen by nearly 90% in the last two years. This is primarily due to an oversupply. However, producers are still optimistic about the long-term prospects of the metal, given the global push to cleaner energy sources and to electric vehicles. In a recent statement, Zimbabwe's MMCZ state minerals marketing company said that despite the continuous increase in demand for lithium metal, prices in the sector had declined. The report added that "Lithium Prices are expected to improve on a medium-term basis." China's Zhejiang, Huayou, Sinomine, Chengxin Lithium Groups, Yahua Groups, and Tsingshan dominate Zimbabwe’s lithium mining. They produce concentrates, and ship them back to their own country. According to MMCZ, these companies have invested more than $1.4 billion to acquire and develop lithium assets since 2021. The country in southern Africa says that it will ban exports of lithium concentrates by 2027, to encourage more local processing. Huayou has begun building a lithium sulphate facility in Zimbabwe. The company, which will export 400,000 tons in lithium concentrate to Zimbabwe by 2024, said it had started construction of a plant that can produce 50,000 tons per year. Sinomine announced plans to build an $500 million lithium-sulphate facility at its Bikita Mine in Zimbabwe. Lithium Sulphate is a product intermediate that can be refined to a battery grade material, such as lithium hydroxide and lithium carbonate.
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Severstal blames low rates and high rates for 55% drop in Q2 profits
Severstal, a leading Russian steelmaker, blamed a high interest rate on a drop of 15% in metal demand in the first half 2025. This, combined with low prices, led to a 55% decline in net profit for the company in the second quarter. In order to combat inflation, the central banks raised their key interest rates last year. The rate was the highest since the early 2000s. The regulator began cutting rates last week and is expected cut them further during a rate setting meeting this week. The tight monetary policies of the central bank led to an economic slowdown, especially in the construction industry, which is one of the largest consumers of steel. Alexander Shevelev, CEO of Severstal, said that the second quarter in 2025 would be extremely difficult for the Russian economy and metals industries. In order to maintain its financial stability, the company has said that it will not be paying dividends. Shevelev continued, "The high interest rate is restricting demand for metals, which declined by 15% on an annual basis in the first half due to lower consumption in the sectors of construction, engineering and energy." Shevelev said that the strong rouble - which has risen by 45% this year against the U.S. Dollar - was limiting its access to the export markets. Shevelev had said earlier that some Russian steel factories could be closed to balance the market. In its presentation of financial results, the company stressed that the anticipated interest rate reduction will have a positive effect on steel demand. The net profit for the second quarter was 15.7 billion Russian roubles, or $200.3 million. This is a 55% drop from last year. (Reporting and writing by Nastyalyrchikova; editing by Guy Faulconbridge).
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The growth in renewable energy supply in Germany is outpacing the demand growth
On Tuesday, wind and solar production in Germany is expected to increase, reducing the pressure of growing demand. In France, however, it is expected that supply will fall from its current high levels. LSEG data shows that the French baseload electricity contract for Tuesday had reached 58 euros ($67.51 per megawatt-hour (MWh) at 0855 GMT. The German equivalent contract, however, was not traded. On Friday, both Monday contracts were not traded. Naser Hashemi, LSEG analyst, said: "An increase in wind and solar energy (in Germany), counterbalances a slight rise in demand. This results in a bearish price trend for Tuesday's delivery." LSEG data indicated that the German wind power production was expected to increase by 9.8 gigawatts to 16.8 GW Tuesday, whereas French output is projected to fall by 4.4 GW - 5.6 GW. The data indicated that the German solar generation is expected to increase by 7.3 GW to 15 GW on February 2. Analysts at Engie Energy Scan say that wind generation in Germany will remain high for two more days before dropping towards the end of this week. In France, it could drop as soon as Tuesday. The French nuclear capacity fell by six percentage points, to 72%. Four reactors were offline due to an unplanned shutdown and one reactor was offline because of an unplanned shutdown. EDF, the operator, said that the Penly 2 reactor was taken offline on Monday morning following maintenance work performed in the non-nuclear area of the plant. Work is underway to reconnect the unit. On Tuesday, power consumption in Germany will rise by 1.3 GW, to 51.5 GW. In France demand is expected to increase by 1 GW, to 44.6 GW. LSEG data revealed that the German baseload power for the year ahead was down by 1.4%, at 85.46 euro/MWh. The French equivalent fell 1%, at 62.10 euro/MWh. The benchmark contract on the European carbon markets rose by 0.5%, to 70.22 Euros per metric ton.
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India's UltraTech Cement surpasses profit expectations as price increases help
UltraTech Cement (India's largest cement maker by capacity) posted a profit for the first quarter that was above expectations, thanks to higher prices. The shares of the company that were up 0.7% prior to the results are now trading 0.5% higher. UltraTech's cement volume grew by 9.7% during the quarter ending June, which is lower than the range of growth projected by four brokerages. Construction is slow during the April-June quarter, due to monsoon rains. Analysts claim that UltraTech's contracts, including those with India Cement and Kesoram have protected its sales volume from weather-driven volatility. According to brokerage Ambit Capital the average cement price rose 2% year-on-year in the third quarter. This continues the steady recovery this year following last year's slump. UltraTech's consolidated profit for the quarter ending June 30 was 22.26 billion rupies ($258.11million), exceeding analysts' estimates of 21.56 rupies, according to LSEG data. Net profit grew 48% on a stand-alone basis from the previous year.
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Thames Water's future is brighter with a new UK water regulatory overhaul
According to a report published by the government, Britain should restructure its water regulations to protect consumers, investors, and the environment. It also needs to give companies more breathing room on sewage fines. After releasing record amounts of sewage in rivers and lakes to anger the public, the Labour government promised major reforms after it was elected. Thames Water is the largest water company in the UK with 16 million customers. Its debt pile has brought it to the edge of nationalisation. Jon Cunliffe was the former Deputy Governor of the Bank of England and led the review of this sector, published on Monday. He said that the separate financial and environment regulation of the industry has failed and the financial regulator Ofwat needs to be replaced. He suggested that a formal turnaround system should be set up, allowing struggling companies to recover through "regulatory forgiveness". Thames Water warned that the current system will force it to pay 1.4 billion pounds worth of pollution fines and penalties in the next five year, pushing the company towards financial ruin. Cunliffe's proposals were deemed "significant" by Cunliffe, but critics said that they didn't go far enough. Environmentalists blame water companies, claiming they prioritize profits over sewage. They want radical changes such as nationalisation. Giles Bristow is the CEO of Surfers Against Sewage. He said that removing Ofwat, and replacing it with a more dazzling regulator will not stop sewage dumping and profiteering if finance and ownership structures remain the same. Cunliffe was given a mandate by the government, and he could not consider nationalising the sector of water which had been owned privately by regional water companies from 1989. INVESTMENT IS NEEDED According to plans set forth by Ofwat in response to climate change and population growth, British water companies are expected to receive more than 100 billion pounds ($134billion) in investment over the next five-year period. This will be funded by a 36% average increase in customers' bills. Cunliffe said to the BBC that a major jump in bills wouldn't have been necessary if industry and regulators had increased investments steadily over the years. Steve Reed, the Environment Minister, will be responding to Sunday's promise by Steve Reed that he would halve sewage contamination by 2030. The government does not want to see Thames Water enter special administration (a temporary nationalisation), because they do not want their 17 billion pounds in debt on the balance sheet of the nation. A group of senior Thames Water creditors is trying to take control of the company in a desperate attempt to avoid going into administration. It welcomed Cunliffe’s report. It is in the public's interest to recognize that regulatory support is required to reset struggling businesses and return them to compliance and performance, while maintaining long-term investor trust," said a source near a Thames Bondholder. Cunliffe’s recommendations would have the government direct the new regulator, to improve investor confidence while also protecting the consumer and the environment and setting up regional planning authorities.
The chemical industry in Europe is looking for a way to survive.
After years of losses, and the rapid expansion of global capacities led by China, Europe's petrochemical sector is in disarray.
The European industry is struggling due to high production costs, and the ageing of plants. This has made the region more dependent on imported primary chemicals, such as ethylene, propylene and ethylene. These are the building blocks used in plastics, pharmaceuticals, and many industrial products.
Jim Ratcliffe said at a recent event that Europe was "sleepingwalking" into an industrial decline, referring to a unit found in petrochemical plant.
The billionaire, along with other leaders in the industry, has criticised a perceived lack of political action.
This month, the European Commission pledged to support domestic chemical production deemed crucial for its industries. These include ethylene and propylene. The European Commission plans to increase state aid for modernising plants and to require that public tenders prefer goods made in Europe, similar to EU legislation 2023 for metals and mineral.
It may be too late for the damage to be reversed.
It's like being aboard the Titanic - you can't remain in denial. Giuseppe Ricci is the head of industrial transformation for Italian energy group Eni.
Ricci, Eni's vice president of Versalis, said that the company's Versalis business has lost over 3 billion euro ($3.5 billion) during the past five years. This is despite the fact that the firm closed down Italy's two last steam crackers, and invested 2 billion euro in bio-refineries, chemical recycling, and other green technologies.
Dow, ExxonMobil TotalEnergies and Shell, as well as other global groups, are closing or reviewing the European chemical assets.
The majority of planned closures are aimed at crackers, which convert hydrocarbons to ethylene or propylene.
In a document published by eight EU countries in March on petrochemicals, it was stated that up to 50,000 jobs may be threatened by the closure of additional crackers in Europe before 2035.
Most EU plants are small or mid-sized, and their average utilization rate is below 80%. This level of utilization is considered uneconomical.
According to Wood Mackenzie, up to 40% of EU ethylene capacity, which is 24,5 million metric tonnes, faces a high or medium threat of closure. This includes shutdowns that have been announced as early as late 2024.
Robert Gilfillan is the head of Wood Mackenzie's plastics and recycling market. He said that "the proportion of European crackers exposed to risk is higher than other regions."
The United States and Middle East, however, use cheaper feedstocks such as ethane - a byproduct of shale gases.
NEW DEPENDENCY
According to ADI Analytics, North America's ethylene production capacity will increase to 58 millions metric tons from 54 million metric ton by 2030.
Huang Yinguo, CEO of the China National Chemical Information Centre, said that China will increase its ethylene production capacity by 6.5% per year between 2025-2030, at which time it will be producing nearly 87 millions metric tons annually.
This is more than three times the current EU capacity.
Chinese producers also build outposts in Southeast Asia for export to Europe and North America, to bypass Western tariffs and carbon taxes on China-made products.
In May, reports from the petrochemical industry organizations of Japan and South Korea stated that, due to their inability to compete, they have maintained low utilization rates since 2023.
The European Union faces a difficult choice. Either they intervene decisively, or the chemical foundation of Europe will erode.
In their document of March, France, Italy, and Spain demanded a "Critical Chemicals Act" as the latest EU data showed that the region was an annual net importer for ethylene and propylene in the period from 2019-2023.
Stephane Sejourne, EU Industry Commissioner, said that Brussels would identify strategic production and supply sites.
He told reporters in this month that "first and foremost, it's about sovereignty - keeping our steam crackers."
But sovereignty has a price. Citi analyst Sebastian Satz says that most European crackers have been in operation for over 40 years, while only 11 years are required to be considered old. Eni stated in a March presentation that ethylene production costs $800 per metric tonne in Europe when using naphtha, but only $400 in the U.S. with ethane. In the Middle East, the cost is around $200.
"SLEEPWALKING INTO DECLINE"
Some companies bet big on their survival.
INEOS operates in Cologne one of Europe's leading petrochemical plants. It is currently building a 4 billion Euro ethane Cracker in Antwerp, the first cracker built in Europe for over 30 years. The cracker will have a production capacity of 1,45 million metric tonnes of ethylene per year.
The plant is due to be online by 2026. It aims at competing with Chinese production while meeting local demand and reducing carbon footprint.
Consolidation is creating global giants in the Middle East.
Borouge Group will be formed by a $60 billion merger of Abu Dhabi National Oil Company with Austria's OMV. This will make it the fourth largest polyolefins manufacturer in the world. The company intends to export polymers into Europe and compete directly with U.S.-based firms as well as Asian ones.
Analysts believe that Europe's petrochemical industry will not disappear completely, but rather become the domain of only a few major players.
Enzo Baglieri is a professor of Operations and Technology Management at SDA Bocconi School of Management, Milan. He said that only major European companies will be able to continue producing ethylene. ($1 = 0.8604 euros)
(source: Reuters)