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Airbus leans toward Saab while Franco-German fighters unravel
Airbus has been looking at Saab, a Swedish company as its preferred future partner. This is because the failure of the Franco-German fighter program has reshaped European defense alliances. Airbus, the company that represents Germany and Spain on the 'fighter market', has other options besides collaborating with the manufacturer of Gripen combat aircraft. High-level contacts have been made on a separate project that involves Britain, Italy and Japan. Airbus and Saab are in exploratory discussions with each other since at least six months, boosted by the improved defence relations between Germany, Sweden and Germany, according to sources. Saab stated that any collaboration would be a decision made by a politician. A spokesperson stated that Saab has an "open-door" policy and is open to collaboration with various players in the defence industry. Airbus had no immediate comment. Sources said that until now, the talks were largely conceptual in order to avoid a premature breakdown of the FCAS Fighter project. The upcoming divorce between Airbus and Dassault Aviation, which is expected to become official at the Berlin Airshow, could give Airbus more freedom to pursue a Nordic Partnership. Michael Schoellhorn, CEO of Airbus Defence and?Space in Berlin, confirmed that Saab is a potential partner but added that it was still too early to exclude other options. There are many potential partners. Saab. Saab. Leonardo has opened the door for Airbus, and its paymaster Germany, to join the separate GCAP project, between Britain, Italy, and Japan. Lorenzo Mariani, CEO of Lorenzo Mariani said that Berlin was a "particularly valuable partner". Analysts claim that the collapse of FCAS, after nine years, is a blow for European defence co-operation. The decisions made about what happens next will have a lasting impact on European air power. Douglas Barrie is a senior fellow at IISS for military aerospace. He said, "It shows how difficult it is to align the military, industrial and political priorities." POTENTIAL HURDS Sweden remained independent in the last round of fighter aircraft development. It built the Gripen, while France developed the Rafale, and Britain, Germany Spain and Italy jointly developed the Eurofighter. It has not yet revealed its plans for the next generation. Initially, it partnered with Britain, and is now conducting research into a Gripen replacement, with decisions expected in 2030. According to people familiar with the situation, Sweden is willing and has the technology necessary to work with Airbus. Since months, the two sides have been gaining ground. When visiting Germany in September last year, Swedish Defense Minister Pal Jonson stated that industrial cooperation was "blossoming". Saab and Airbus began discussing collaboration on unmanned technologies in?December. Sources said that although the talks were primarily focused on the support of existing crewed aircraft such as Eurofighter and Gripen, they could be a springboard to deeper cooperation. Berlin's path or not, there are still obstacles to overcome. It is unclear to what extent German and Swedish needs are similar to those of France. GCAP, according to insiders, is limited by the 2035 deadline that Japan and Germany agreed upon. This makes it difficult for Germany to be offered anything more than a minor role. There are also questions about whether a country can do it alone. Dassault - the only European company to have built a fighter using domestic engines - says it's ready to do it again, even though "French finances are stretched." Sources denied that this was the beginning of a new project. However, Airbus will be lobbying for German companies at the air show. Schoellhorn downplayed the possibility of going solo. He said that Germany has repeatedly made it clear, including on the 'political side', that they continue to be European. Analysts say that despite fiscal pressures and a limited domestic demand to keep costs low, European nations producing fighters other than France are likely to continue to pursue alliances. This could extend to the Middle East. "It does not make the product cheaper but it makes it more affordable." Barrie stated that some of these things are really hard to do by yourself, except for Americans or Chinese. (Additional reporting from Johan Ahlander. Ludwig Burger. Angelo Amante. Sarah Young. Joanna Plucinska. Michel Rose. Mark Potter is the editor.
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Two crew members missing following suspected US strike on tanker near Oman
Officials from the maritime industry said that two crew members are missing and another is injured after a suspected U.S. missile strike on a fuel tanker near Oman's coast. Ambrey believes that the 'blockade of Iranian ports by U.S. Ambrey, a British maritime security organization, said that the blockade of Iranian ports was likely to be responsible. In the past, crews were warned to gather at the bow of the vessel before an attack. Another maritime security source said that the ship was also likely to have been?hit by a U.S. rocket. The United Kingdom's Maritime Trade Operations agency reported that a Palau-flagged chemical/oil product tanker reported a?engine room fire? 20 nautical miles northeast from Oman's Port of Sohar. According to British maritime risk-management group?Vanguard, the Omani Navy responded immediately to the distress call of the Settebello. According to MarineTraffic, the?tanker? was partially loaded? and last located near Oman's coastline on June 1st. The operator listed in the databases as being based in India could not be reached to comment. The United States launched a blockade of Iran related shipping on the 13th of April after Iran severely restricted shipping through Strait of Hormuz - a major global oil & gas route. U.S. Central Command reported that as of 8 June, U.S. Forces had disabled seven noncompliant?vessels and redirected 134 other vessels which were compliant, while allowing 42 vessels to pass supporting humanitarian aid. The U.S. military reported that U.S. forces disabled an unladen Marivex tanker on Monday in the Gulf of Oman after it tried to sail to an Iranian port, in violation of a 'ongoing blockade of Iran. The ships being targeted are Iranian vessels and so-called'shadow fleet tankers', which are 'older vessels with no Western insurance, used to transport sanctioned crude oil, and sailing under various flags in order to conceal their true ownership, the cargo they carry, and whereabouts. Reporting by Jonathan Saul, Ahmed Elimam and Alex Richardson; editing by Jason Neely and Alex Richardson
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Trump: Iran's negotiations with Trump have been delayed too long, and they will pay the price
Donald Trump, the U.S. president, said on Wednesday that Tehran had taken too long to reach a deal. It would now have to "pay the price", after Iran and the United States exchanged attacks in the region amid reports of efforts to continue negotiations. Trump said in a post on social media that Iran is "all talk and no action." They've taken too long to negotiate an agreement that would have been good for them. Now they will pay the price !!!" Trump's remarks?come after an official who knows the situation revealed that Qatari negotiators travelled to Tehran on Wednesday morning in an attempt to finalize an accord, following consultations with the United States. White House representatives could not be reached immediately for comment about?Trump’s post or'reported' negotiators' travel and consultations. (Reporting and editing by Katharine Jacks Russell and Susan Heavey)
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Protesters disrupt the start of German Air Industry Showcase
On Wednesday, protesters blocking roads to 'Berlin’s ILA airshow and shouting slogans like "Free Palestine" forced many delegates to walk. Witnesses reported that dozens of police officers were on the scene. A couple of them were seen carrying away a protester. Buses couldn't reach the venue and hundreds of people had to walk to the event. This year, the ILA airshow, which dates back to 1909, will host 750 exhibitors from 37 countries. The build-up to the show saw the cancellation of a Franco-German flagship fighter jet project, which 'became bogged-down in industrial rivalries. This underlined 'the struggles Europe has in building its military capability. (Written by Matthias Williams and edited by Thomas Seythal).
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Taliban: Pakistani air strikes in Afghanistan kill at least 13, Taliban claims
The Afghan Taliban government reported that Pakistani air strikes in three provinces of Afghanistan killed at least 13 people, including 11 children. This is a resurgence of a conflict which has claimed hundreds lives this year. Taliban spokesperson Zabihullah Mojahid stated that at least?14 other people - including children and women – were injured by strikes that violated Afghanistan’s airspace, and bombed homes of civilians in the provinces Kunar, Khost, and Paktika. The Pakistani government said that the "calibrated attacks" along the Pakistan-Afghanistan frontier killed 26 militants. They were in response to recent attacks on the country's northwestern region. Attaullah tarar, Pakistan's Information Minister, said that based on reliable intelligence, the targeted camps and hideouts were carried out with "precision and accuracy". Four targets, including a training center, a hideout, and an ammunition stash, were destroyed. Islamabad accuses Kabul of harbouring militants who, it claims, plot attacks against Pakistan. According to Armed Conflict Location & Event Data, militant attacks in 'Pakistan' have increased four-fold since 2022. This was the year after the Taliban regained power in Afghanistan. The Taliban denied these allegations, and claimed that militancy is a problem within Pakistan. "WE WILL TAKE REVENGE" The renewed violence between former allies could disrupt a long-lasting truce in the fighting between Islamabad, and Kabul. They fought their most intense battle in many years in February. In March, the two countries started a dialogue to reduce tensions. China was tasked with mediating a resolution to the conflict. Fighting has ceased since then but there have been sporadic clashes along the 2,600 km (1,600 mile) border. Haji Ali 'Khan, tribal elder from Khost said that one of the airstrikes killed 10 people in a village, including women and kids, after midnight. The family whose home was bombed is a local villager. "They have no connection to the TTP nor do they know them," said he, referring the Pakistani Taliban. "Either the authorities provide security in this area, or they allow the people to protect themselves.... We will either sacrifice ourselves or take revenge on our own." Reporting by Mohammad Yunus Yawar, Mushtaq Ali in Peshawar and Hritam Mukherjee, Saad Sayeed, and Himani Sarkar; editing by Himani Sarkar and Lincoln Feast.
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Ukraine slams Mariupol port'significantly restricting' its use
Kyiv announced?on? Wednesday that Ukrainian forces had struck "several" key facilities in the Russian-occupied port of Mariupol. This attack has "significantly reduced" its ability to be a vital logistics hub for Moscow’s war effort. According to Ukraine's Drone Forces, the port had no power after strikes on its energy management and infrastructure. They said that they had "carried out" the operation in conjunction with the 1st Azov Corps, and the SBU security service. The statement said that the port had been 'used by the enemy for military logistic, as well illegal exports of Ukrainian grain and coal to Russia. "The enemy?s ability to use Mariupol a logistic hub is severely limited." The 1st?Azov 'Corps? posted a video showing drone footage of the ships, electrical station and other structures that were attacked. The strikes on Tuesday are part of a growing Ukrainian campaign that targets Russian military logisticians?far from the front line. Analysts say this has hampered Moscow’s battlefield advancements.
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Ukraine warns that Russian attacks on Odesa port threaten export collapse
UAC, Ukraine's biggest farmers' union, said that Russian attacks on Ukraine’s Black Sea ports had already caused "serious" damage to the export terminals and threatened a significant?reduction in shipments. This includes key agricultural exports. The hub of Odesa is the main port for exports of Ukraine, including iron ore. In recent months, Russia increased its attacks on port infrastructure. It has targeted?grain termini as well as storage and export facilities for sunflower oil. Ukraine's agricultural products are dominated by grain?and vegetable oils. "The situation in ports around Odesa has reached a critical level." UAC stated that systematic Russian shelling was destroying Ukraine's logistics heart. The businesses have spent all their financial resources on repairs. The union said that without a?framework program and foreign funds to support it, it was impossible for terminals to be restored on their own. The union has not specified how much money is required to restore terminals. According to World Bank estimates the total recovery costs for Ukraine's transport sector are estimated at $96.3 billion by the end of 2025. Around 60% of the losses in transport are due to the disruption of access to ports. At the ports are dozens of terminals for grain and oilseeds, some of which are owned by major foreign companies. UAC noted that if terminals are unable to recover quickly from a failure, exports could collapse, storage areas would overflow and farmers might lack the capital required for the next planting campaigns. This poses a serious threat to the food security of Ukraine as well as the rest of world. Official data revealed that Ukraine is a major global grain exporter. It has exported more than 34 million metric tonnes of various grains in 2025/26. In the same period of 2024/25, Ukraine exported 38.6 millions tons of grain. (Reporting and editing by Tomaszjanowski)
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The guesthouses of Latvia's Land of Blue Lakes are empty due to fear of Ukrainian drones
Martins Kiscenko, the owner of Birdwhistles, said that all eight rooms at the guesthouse in a rustic, two-storey wood barn located in the Latvian forest, 50 km away from the Russian border were vacant. This is something that never happens during this time of the year. The couples who had booked two wedding parties cancelled them at the last minute because they did not want to make their guests scramble to find shelter in case of a drone alert. Eastern Latvia has a beautiful and tranquil woodland area known as Land of Blue Lakes. There's not much to do in this region, so tourists flock there every summer. Fishing in the clear, cold waters. Birdwatching. Hiking in forests of birch trees straight as poles. After a long day of hiking, you can end the trip by singing folk songs in your cozy cabin. Tourists are staying away from the region because they fear being forced to seek shelter in the event of an attack by Ukrainian drones. No drones have been seen for the past two weeks. This gave hope that things had improved. On Monday, however, a French NATO aircraft was forced to shoot down another drone. Kijasko said, "Now we know it won't be easy", hours after the incident. Since March, stray Ukrainian military drones are entering the airspace over Latvia and its Baltic neighbours. The NATO and Kyiv countries claim that Russian signal jamming diverted the weapons from their intended targets in Russia. The incursions are not causing any harm, but they have caused the residents to be regularly ordered to take shelter. This is impossible in Kiscenko’s wooden guesthouse. It has no basement and heavy walls. "That wasn't a requirement when i built it," says Kiscenko dryly. Two?drones exploded last month in the middle town of Rezekne where tourists usually come to see a ruined castle on a hilltop. Two other drones caused a fire at an oil storage facility near the town of Rezekne. Authorities are trying to convince Latvians to continue to holiday as normal in the region. Prime Minister Andris Kuulbergs plans to spend his summer holiday 'in the region', according to his spokesperson. It may already be too late. Kijasko stated that a survey of her association of tourism business showed that 85% faced cancellations because of drone fears. Some businesses lost over half their future business. Kijasko said that tourists should not stay away. She said, "We live in this area and don't really feel threatened." "The likelihood of a car accident in Riga being much greater than having a drone land on your head is very high." (Editing by Peter Graff).
Maguire: Germany's industrial growth could be re-ignited by the power of Germany.
Germany's electrical output will grow by more than 10 percent in 2026. This could be a lifeline for the industrial sector, which has been near stagnation over the past few years.
According to the energy think tank Ember, total utility-supplied electric output has increased by more than 10 years. It now stands at 209 terawatts hours (TWh).
This surge in power production?has coincided?with tentative signs of stabilisation?in parts of the manufacturing sector of the country,?including?some energy-intensive sectors such as chemicals.
The total output and activity levels of Germany's vital industrial base are still well below their previous peaks. And the total electricity produced by utilities is around 19% lower than its all-time high set in 2017.
Germany's clean energy supplies are nearing multi-year highs, and the annual growth of total electricity is expected to be the highest in many years.
POWERING A TUNNAROUND
This shift is important because the availability of energy and its affordability has been a major constraint for German industry ever since the energy crisis in 2022, which was triggered by Russia’s invasion of Ukraine.
In response, several major European energy importers have cut their purchases of Russian gas and oil. This has led to a sharp tightening on local energy markets.
Fuel and power prices surged, causing German businesses to lose money, forcing them to cut back on production and trigger a contraction in energy-intensive industries that are the basis of Germany's manufacturing model.
The reverse dynamic is now beginning to emerge.
Wind and solar power are increasing, and they inject large amounts of electricity at low cost into the grid. This helps to stabilize supply and cap wholesale prices.
The average wholesale spot power price in Germany has been around 96.4 Euros per Megawatt Hour so far in 2026. This is a relatively flat rate compared to a year ago and the lowest in the last two years.
Even a modest reduction in electricity costs can have a disproportionate impact on industrial users' profitability and production decisions.
Early signs indicate that there may be some ease in the air. The producers of energy-intensive chemicals and goods are among those who have been hit the hardest in recent years. They show tentative signs of stabilisation along with the increase in power supply.
A STRUCTURAL?SHIFT in Supply
This time, the key difference is the source of expansion.
Germany does not depend on fossil fuels, nor imports for supply. Instead, it relies on renewable energy produced domestically. The system is dominated by wind, but solar energy has been gaining ground, and it's setting records.
This is important for two reasons. The first is that renewable energy has near-zero marginal cost, so increases in production tend to lower overall electricity prices.
Second, electricity generated domestically reduces the exposure to volatile fuel markets globally, improving supply security, predictability, and reliability for industrial users.
These dynamics together create an operating environment that is more favorable for manufacturers today than it was before the energy crises.
LIMITATIONS ON THE REBOUND
This does not guarantee a complete industrial revival.
German manufacturing continues to struggle with a weak global demand, increased competition from abroad and structural changes, especially in sectors like autos and chemicals.
The recovery will likely be slow.
The power system itself is not without its own constraints. Grid bottlenecks and intermittent renewable energy, as well as the need for increased storage capacity, could all be limiting factors in how quickly a rise in generation can translate into a consistent drop in prices.
While electricity production is on the rise, total demand still hasn't recovered, reflecting the cautious attitude of industrial users.
The Energy-Industrial Feedback Loop
The direction is still becoming more clear. The industrial sector in Germany does not require a return of ultra-cheap electricity to stabilize -- it requires predictability, scale, and gradual cost relief.
Expansion of electricity supply has begun to achieve this.
The availability of more power can?support higher industrial production, which, in turn, increases electricity demand and encourages further investment in generator capacity.
This feedback loop can help to rebuild the competitiveness and scale of Germany's industrial base.
A NEW POWER CHAPTER
Germany's economy has long been linked to its factories.
After the energy shock, however, this link may have been broken and the road to recovery could be in the opposite direction.
The current surge in supply of electricity will not only light up homes and charge cars, but it will also reset the economics for manufacturing in one of the leading manufacturing hubs in the world.
The next chapter in Germany's industrial history may not start on the factory floor but on the grid.
The opinions expressed are those of the columnist, author. This column is a great read! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
(source: Reuters)