Latest News
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Authorities say that a major drone attack on the St Petersburg oil terminal and port was carried out by Ukraine.
Authorities in St Petersburg, Russia's second largest city and the surrounding Leningrad area said on Saturday that a major Ukrainian drone strike overnight had hit a local oil pipeline and port. Alexander Beglov, the Governor of St Petersburg, said that the city with a population of 6,000,000 had been subjected to a "large scale" drone attack. The city's oil storage terminal was also hit. He stated that there were no injuries and the aftermath had been handled. Alexander Drozdenko, Governor of the Leningrad Region, said that drones struck the port of Vysotsk on the Gulf of Finland. The port is located about 170 kilometers (105 miles), northwest of St Petersburg. The port is used to handle oil, grain and coal, as well as liquefied gas. Drozdenko stated that 72 drones were shot down in the Leningrad area. Ukraine has intensified its strikes against Russian energy infrastructure this year, leading to fuel shortages across parts of Russia. St Petersburg is about 900km (560miles) from Ukrainian-held territory.?Kyiv drones have occasionally attacked St Petersburg. The city's oil-terminal and a moored ship were among the targets during the St?Petersburg International Economic Forum held in June. The governor of Pskov Region, south?of St Petersburg said that more than 30 'drones were shot down overnight. He reported minor injuries and damage, including to the factory in Velikiye-Luki. Reporting by. Felix Light is the author. Mark Potter (editing by Felix Light)
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Yemen's Houthis warn Saudi Arabia of their targets in response to Iran's flight to Sanaa
Yemen's Houthis claimed on Friday that their forces had engaged Saudi "warplanes", which they claimed 'attempted to stop an Iranian civilian aircraft from landing at Sanaa International Airport', according to the military spokesperson for the group Yahya Saarea. Sarea, an Iran-aligned group, warned they would "target Saudi airports and vital interest on land and sea" if Saudi Arabia continued to violate Yemeni airspace. He added that flights between Sanaa, Iran and Tehran would continue despite "possible consequences". Al Masirah TV, a Houthi-run channel, reported on Friday that an Iranian plane landed in Sanaa to fly the group's delegation to Tehran for the funeral of Iran’s late Supreme leader Ayatollah Ali Khamenei. Other passengers included more than 200 patients. Saudi Arabia led the military coalition which intervened in Yemen after the Iran-aligned Houthis took over the capital Sanaa in 2015. The Saudi-led coalition claimed early on Saturday that the Houthis' statements against the Kingdom were an attempt to "divert the attention" away from the group's "violations". It warned it would react firmly with "unprecedented force" against any attempts to attack the kingdom or violate Yemen's sovereignty. The Houthis demonstrated their missile and drone capabilities in Yemen's?war by attacking Saudi Arabia, targeting oil installations and critical infrastructure. Reporting by Eman Abohassira, Menna Alaa el-Din and Editing by Louise Heavens Philippa Fletcher David Gregorio
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Heatwave disrupts Fourth of Jule events in eastern US
The Fourth of July festivities were disrupted by a 'dangerous heatwave' that swept across large swathes of the central and eastern U.S. The Great American State Fair, which was a major event in President Donald Trump's celebration of the 250th anniversary of the United States, was also affected by the heat. The Great American State Fair was temporarily closed Friday afternoon as temperatures reached 101° Fahrenheit (38° Celsius). The organizers said that they expect the fair to reopen by?5 pm, with modifications such as cooling tents and spritzing stations. The emergence of the "heat dome," a system of high pressure that traps hot air over a large area, caused record-breaking temperatures to spread from the Midwest to the east of the U.S. earlier this week. More than 185 million people, or more than half of the U.S. population, were under heat alerts on Friday. National Weather Service reported that on Friday there were heat alerts for over 185 million people, more than half of the?U.S. In some parts of the nation, heat indexes can reach up to 115 F (46 C). Forecasters and government officials warned that this heat wave could be deadly. The government urged Americans to be hydrated and seek shade when attending public events and gatherings during the Fourth of Independence weekend. There were cancellations of events along the Eastern Seaboard during the Fourth of July weekend. This is when Americans usually 'gather to barbecues, parades, and fireworks displays in celebration of the 1776 Declaration?of?Independence. The Salute to Independence Parade in?Philadelphia was canceled due to extreme heat. The decision was made after temperatures reached 103 F in Philadelphia on Thursday. This tied a record set back in 1901. Heat-related disruptions were also felt in other parts of the region. Haddon Township in New Jersey canceled its annual Fourth of July parade. Watertown, upstate New York, cancelled its Independence Day concert. Boston officials have delayed the entrance to an annual riverside celebration of fireworks by four hours. The event was originally scheduled to begin at noon, but now it will start at 4 p.m. Reporting by Ahmed Aboulenein, Washington; Nathan Layne, New York. Editing by Mark Porter and David Gregorio.
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Heatwave disrupts Fourth of Jule events in eastern US
The Fourth of July celebrations were ruined by a 'dangerous heatwave' that swept through much of central and eastern U.S. On Friday, the heat wave forced officials to cancel or postpone dozens parades, concerts, and fireworks displays in celebration of the 250th anniversary of America. The Great American State Fair, a centerpiece event of President Donald Trump's efforts to celebrate the 250th anniversary of the United States of America on the National Mall of Washington was temporarily closed on Friday afternoon due to temperatures of 101 degrees Fahrenheit. Organisers have said that it is expected to reopen, weather permitting, at?5 pm, with modifications such as cooling tents and misting station. The National Weather Service reported that record-breaking temperatures reached the east coast of the United States from the Midwest this week. Over 185 million people received heat alerts for Friday. In many areas, peak heat indexes could reach?up to 115 degrees Fahrenheit. Forecasters and government officials warned that the heat wave was potentially deadly. They urged Americans to celebrate the Fourth of July outdoors, stay hydrated and seek shade, and be on guard for signs of heat illness. At least seven states have reported event cancellations, including a "major Independence Day Parade" in Philadelphia, as well as "events" in Maryland's Takoma Park, and Loudoun County in Virginia. Ahmed Aboulenein reported from Washington, Nathan Layne from New York and Mark Porter edited the story.
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PJM, the largest US power grid, intensifies emergency measures to prevent blackouts
PJM, the largest U.S. power 'grid operator, said?Friday he was on a federal alert for reducing electricity consumption in his territory due to generator failures, massive overloading of?its transmission lines and a spike in ac usage from prolonged sweltering temperatures. PJM said it had told utilities that they could reduce the electricity supplied to customers if they were under contract. PJM serves 67,000,000 people in the Mid-Atlantic, South, and Washington, D.C. area. This week, spot wholesale electricity prices in Northern Virginia, the home of the largest 'collection of data centres in the world, soared past $2,000 per megawatt hour. This compares to a?about 40?per MWh if PJM was not in distress. According to industry analysts and PJM operations data, the surge in prices is mainly because it's becoming expensive to supply power accross congested high voltage power lines.
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Alupar and Axia win power transmission projects in Brazil
A consortium led by Brazilian power company Alupar secured the largest lot in Friday's power transmission auction in Brazil, while Axia Energy won the other three projects. The consortium of Alupar, the Infra II Investment fund and other partners'secured' the installation of underground transmission in the metropolitan area of Sao Paulo with a proposal that offered to take 48 percent of the maximum revenue the project could generate. The auctioned lots on Friday were the most expensive, with the highest?investment expected at 1.1 billion reais (212.9?million). Axia Energia was awarded the remaining projects in Sao Paulo state, Mato Grosso state, and Mato Grosso do Sul with 668 million reais of required investment. According to the results released in Sao Paulo by the B3 stock market, Axia's winning offers offered a discount of more than 50% on the?allowed revenue in three cases. Brazil reauctioned four 'power transmission projects' after MEZ Energia - a company which had won concessions for 2020 and 2021 - failed to progress with them.
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Ivory Coast increases renewable energy with new solar power station
Ivory Coast opened a solar power plant of 52.4 megawatts (MW) on Friday as part of its 'efforts' to increase the % share of regenerative energy in their electricity mix, and achieve climate goals by 2021. The world's biggest cocoa producer wants to be a major energy supplier in West Africa. It aims to use 46% renewable energy by 2035. Ivory Coast has an installed capacity of approximately 3,000 MW. Most of this power is generated by oil and gas plants. It exports electricity to Ghana, Burkina Faso. Benin, Togo, and Mali. At the opening ceremony, Mines Minister Mamadou Sangafowa Coulibaly stated that "Today's Ceremony fits perfectly with Ivory Coast's strategy... to accelerate its energy transition through diversifying the electricity mix by expanding renewable energy capacity." According to PFO Africa, which is a 100% Ivorian infrastructure investment group, the Ferke Solar Plant?will?supply electricity for 370,000 households and directly serve about 2,000,000 people in primarily?the northern Ferkessedougou Region?. Construction ?of the plant was ?financed by PFO ?Africa subsidiary PFO Energies and it will operate on a Build-Own-Operate-Transfer basis. (Editing by Ayen deng Bior, Editing by Emelia sithole-Matarise).
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Yemen's Armed Forces Threaten Saudi Targets over Iran Flight to Sanaa
According to a military spokesperson, Yahya Saarea, Yemen's armed force alleged that they had confronted Saudi 'warplanes' attempting to prevent an Iranian civilian aircraft from landing in Sanaa International Airport. Sarea reported that the Iran-aligned group had warned they would "target Saudi airports and vital interest on land and sea" if Saudi Arabia continued to violate Yemeni airspace. He added that flights between Sanaa, Yemen and Tehran would continue despite "possible" consequences. Houthi Al Masirah TV reported earlier on Friday, that an Iranian aircraft had arrived in Sanaa. The group's delegation was then flown to Tehran for the funeral of Iran's Supreme Leader Ayatollah Ali Khamenei. Among the passengers were more than 200 patients. Saudi Arabia led a coalition of military forces that intervened militarily in Yemen in 2015. This was after Houthis, who were aligned with Iran, seized Sanaa as the capital. The Houthis demonstrated their drone and missile capabilities in attacks against Saudi Arabia, which targeted oil installations and other vital infrastructure. (Reporting and editing by Louise Heavens, Philippe Fletcher and Eman Abouhassira)
US automakers, homebuilders and materials are hit by Trump's trade war
The latest trade war escalation by Washington has put pressure on the shares of U.S.-based companies. Earnings in many sectors are expected to be affected, including those in automakers, retailers, and raw materials.
Donald Trump has imposed 25% tariffs for imports from Mexico, Canada and the United Kingdom. The tariffs cover more than $900 billion in annual U.S. exports to Mexico and Canada.
Trump doubled the duties on Chinese imports from 10% to 20% in order to punish Beijing for the U.S. overdose crisis. The duty is on top of the 25% tariffs that were imposed in his first term.
China responded by imposing additional tariffs between 10%-15% on some U.S. exports as of March 10. Canada and Mexico, meanwhile, were ready to quickly retaliate.
The main Wall Street indexes fell on Tuesday, with the biggest declines coming from stocks that are sensitive to economic conditions such as banks and airlines. On Monday, the S&P 500 index suffered its worst day this year after U.S. Tariffs were confirmed.
AUTOMOBILES
S&P Global estimates that the new duties on imported cars from Mexico and Canada will cost U.S. automakers 10% to 25% of their EBITDA.
S&P Global stated in a report that Trump's tariffs of 25% on steel and aluminum imports would increase costs for industry. The steel and iron industries accounted for 15 percent of the net shipments in 2024.
Analysts at J.P.Morgan also expect that automakers will bear the direct costs of tariffs on Canada, Mexico and some suppliers, dealers, and consumers.
They said that this could cost General Motors $14 billion (or virtually all the earnings before taxes and interest it is guiding to worldwide this year) or Ford $6 billion (or about 75% of its EBIT globally this year).
Ford has three factories in Mexico. According to Mexico's AMIA, it exported less than 196,000 vehicles to North America during the first half 2024. Of these, 90% went to the U.S.
According to a Barclays report published in November, Stellantis produces 39% of North American vehicles either in Mexico or Canada. General Motors, Ford Motor, and Ford Motor Canada each produce 36%, and 18% respectively.
Three GM plants are located in Canada. They produce the Chevrolet Silverado heavy duty truck, as well as the V8 engine with dual clutch transmission.
Ford and General Motors shares have fallen by 2.8 and 5.8% respectively on Tuesday.
HOME BUILDERS
The new tariffs are likely to increase costs for U.S. builders who import raw materials from neighboring countries.
Tuesday, the PHLX housing index, which had fallen by about 4.8% this year so far, dropped 1.2%.
S&P Global stated that tariffs on products like appliances, electronics and cabinets from Mexico and China could increase the price of building a house.
It said that the building materials industry is experiencing margin pressure due to higher costs for commodities, labor, and freight. The new tariffs may further impact margins.
AEROSPACE SUPPLIERS
According to the Aerospace Industries Association, Canada is the U.S.’s top exporter and third largest importer of aerospace products.
Tariffs may increase costs for suppliers who are already under pressure and for their customers, such as Boeing. Boeing shares fell 6.4%.
Canadian manufacturers also produce landing gear and engines for Boeing, Airbus and General Dynamics Gulfstream.
Mexico's aerospace hubs, Queretaro & Chihuahua are growing rapidly, and are attracting major suppliers like Honeywell.
Steelmakers
According to data from the American Iron and Steel Institute, steel imports will account for approximately 23% of U.S. consumption by 2023. The largest suppliers are Canada, Brazil and Mexico.
In 2024, Canada's abundant hydropower resources, which aid in its metal production and export, accounted nearly 80% for U.S. imports of primary aluminum.
Alcoa, the aluminum producer, said that Trump's plan of imposing a tariff on imports could cost around 100,000 U.S. workers and wouldn't be enough for it to increase production in this country. Its shares dropped 3.1%.
Shares of U.S. Steel and Nucor fell between 5% to 8%.
Airline Tickets
The S&P Composite 1500 Passenger Index fell 6%, and was heading towards its worst day for more than a month.
Michael Ashley Schulman is the chief investment officer of Running Point Capital. He said that as retailers and other businesses warn customers about tariff-related price increases, they feel less able to spend on holidays and vacations.
Businesses may reduce corporate travel to keep costs down and margins high. (Reporting and editing by Arpan Varrahese, Shilpa Majumdar and Shilpa Varghese in Bengaluru. Kanchana Chakravarty and Shivansh Tiwary are based in Bengaluru.
(source: Reuters)