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MOL Hungary says it has received Ukrainian oil through the Druzhba Pipeline
Zsolt Hernadi, executive chairman of MOL, told ATV that the company received a total of 35,000 tons?of?Ukrainian?crude via the Druzhba pipeline at Ukraine's request?after a fire and a hit near the pipeline. "The pipeline suffered 'no damage.' All the more so because a fire started after the (Russian) attack, and then they began to pump Ukrainian crude from other storages into the pipeline. Hernadi stated that after the fire started, the Ukrainian colleagues asked us to take control of the oil in order to prevent further damage and a fire. "And we bought (took over)?35,000 tonnes of Ukrainian crude that?arrived on the Druzhba pipe over 2-3 days." Since January 27, oil shipments from western Ukraine to 'Hungary and Slovakia' have been suspended through the Russian-operated pipeline. (Reporting by Krisztina Than)
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Sources say that the US is still struggling to derisk Congo's "war zone minerals" even after the pact.
Diplomats and industry officials say that the U.S. is making progress in its efforts to wrest Congo's strategic mineral resources from China. However, conflict, contested licenses and compliance requirements are still slowing Washington down as it advances into a dominant region. The U.S. is relying on the Democratic Republic of Congo to reduce the West's dependence on China for rare minerals. It has the largest cobalt reserves in the world, as well as rich copper and lithium deposits. Kinshasa handed Washington, after the U.S. signed a mineral pact with Congo in December, a list of 44 projects spanning copper and cobalt as well as lithium, tin and gold. The U.S. State Department stated that the U.S.-Congo Partnership is intended to unlock investment and support implementation of an agreement Washington brokered between Congo, Rwanda and Kinshasa, which Kinshasa accuses of supporting M23 Rebels fighting Congolese soldiers in its eastern part. Sources, including Congolese mining and government officials, say that several of the assets shortlisted are located in politically volatile zones or have permit disputes, which makes it unlikely for mining deals to be made quickly. The sources asked to remain anonymous because the discussions were sensitive. Source: CONGO slowing down deals A U.S. diplomat stated that Kinshasa deliberately delays new deals in order to force Washington to increase its pressure on M23. Could not independently verify this claim. The Congolese Government did not respond immediately to requests for comments. A senior government official called the allegations "speculation" in background. The official explained that "the agreement has its own pace: a time for receiving offers and a time for negotiations." Rwanda, which denies supporting M23, didn't immediately respond to comments. U.S. State Department said?the U.S. is "deeply worried" about violence in eastern Congo. It urged regional partners to strengthen the ceasefire and urged Rwanda to stop supporting M23 and withdraw according to December's peace agreement. Washington wants to see rapid progress in key deals. These include a proposal by Glencore to sell copper and coal assets to the U.S. backed Orion consortium; Virtus Minerals bid to acquire Congo-focused Chemaf; and the extension to the Lobito Corridor rail line. Kinshasa being included on the shortlist for the Rubaya mine, which provides about 15% of global colltan, and is under the control of?M23/AFC, indicates that Congo wants more U.S. actions against M23. This was stated by Joshua Walker, NYU's Congo Research Group. He said that investment is unlikely as long as the group controls territory. Some mines have already seen the influence of the United States on security. Alphamin Resources restarted the Bisie tin mining operation only after U.S. diplomats helped to ease fighting around the mine. However, it warns of renewed clashes which could threaten operations and access. PERMITTING GRIDLOCKS Michael Bahati is the chief analyst of Ascendance Strategies. He said that Congo's permitting gridlock was a structural barrier to new U.S. investments. However, some assets listed by Kinshasa are also mired in disputes and incomplete ownership and rights records. There are also slow transparency reports. U.S.-backed KoBold, which controls a global-class resource of lithium in Manono (Australia), is attempting to resolve a dispute with AVZ. Meanwhile, China's Zijin, located in the same 'area', is preparing to ship in June. The high-grade copper and cobalt assets of Chemaf, Gecamines, and other companies are hampered by political disputes and a history of permitting that discourages Western lenders. The sale of Chemaf to U.S.-backed Virtus is slowing down after owners indicated that the $30 million offer does not cover heavy debts. Kinshasa has signaled success, even for "easy wins", such as tailings refining or proposed cobalt refineries, is dependent on the governance reforms, and security guarantees, that only Washington can deliver. Geraud Christian Neema is an analyst of the geopolitics and natural resources in Africa. Washington continues to focus on assets that are "ready-to produce". He said that a longer-term change would require U.S. businesses to be willing to take on Congo-level risks and wait for years to see returns. WESTERN PROCEDURE Vs. CHINESE PACE Officials in Congo acknowledge that they want American players to move more quickly, but they say they can't circumvent their compliance obligations. Chinese firms are not bound to the same obligations as Western companies. These include anti-bribery tests, proof of clean title chains, and documentation of community impact risks. At Manono the Zijin head start in building roads, power, and port links has already shaped the project. KoBold Congo's Congo chief said that the company would look to share the infrastructure once ownership disputes are resolved. This pace reflects the compliance burden that U.S.-backed companies?face. It is evident that the Congo's mining industry has a different dynamic - Chinese companies can handle uncertainty better than Western firms, which allows Beijing-linked companies advance projects faster while U.S.-based companies are stuck in due diligence loops. NYU's Walker stated that Kinshasa is currently succeeding in bringing Washington further into its orbit of critical minerals, as it believes the attention given by the U.S. will result in security and political benefits. It is still unclear how the engagement will end up looking. The Chinese have already seized over 70% of Congo’s rare minerals, including copper and cobalt. Washington has yet to show any signs that it can loosen Beijing's hold. Maxwell Akalaare Adombila, reporting and writing from Dakar and Veronica Brown, and Jan Harvey, editing.
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Operating profit of Kuehne+Nagel, a freight forwarder, falls amid worsening economic conditions
The Swiss logistics company Kuehne und Nagel announced a 17% decline in its annual recurring?operating profits on Tuesday. They cited a deterioration in industry conditions as a result of?the challenging macroeconomic environment. Last year, the company's recurring profits before?interest, taxes and?cost savings program expenses, which do not include?these costs, dropped to 1,38 billion Swiss Francs. It?forecasts recurring EBIT between 1.2 and 1.4 billion francs for 2026. They expect to?benefit?from?productivity improvements through the accelerated development artificial intelligence solutions. The savings programme aims to reduce costs by more than 200 millions francs.
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Thales boosts profits with defence, avionics business
Thales, a French aerospace and technology company, reported a core profit slightly higher than expected on Tuesday. This was largely due to its main defence business and the demand for avionics. The largest European defence technology group said its adjusted operating earnings for 2025 rose?14% compared to a similar basis, to 2.74 billion euros ($3.20billion), while sales increased 8.8% to 22,14 billion euros and the new order intake edged up by?1% to 25,26 billion euros. According to a compiled consensus, analysts expected an average adjusted operating profit of 2.7 billion euro on revenue of 21,88 billion euros. The maker of digital and military radars predicted that operating profit margins would increase to between 12.6% and 12.8% in 2026. This is up from 12.4% the previous year. Revenues will also grow by 6%-7%.
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FT reports that BlackRock-backed group is trying to complete CK Hutchison port deal without Panama assets
Financial Times reported that a consortium backed by BlackRock is pushing for the completion of its 'acquisition' of CK - Hutchison’s global ports business? without two terminals located in Panama after the authorities seized these assets. The report cited people who were familiar with the negotiations as saying that the Swiss-Italian Mediterranean Shipping Company and the U.S. listed asset manager are'said to be in discussions with CK Hutchison about?buying 41 ports throughout Europe, Southeast Asia, and the Middle East. Could not immediately verify the report. BlackRock, MSC - and CK Hutchison - did not respond to a request for comment. Panama's top court declared in January that Hutchison's concession to the Panama Canal terminals was unconstitutional. This led authorities to seize the assets last month. Hutchison’s Panama Ports Company has launched an international arbitration against the Central American country. Hong Kong listed conglomerate has been trying to sell off its non-Chinese port business. This includes 43 terminals spread across?23 different countries. The two Panama Canal Ports?are the core of the $23 billion dollar deal announced last December, under which BlackRock would?take control of a majority of the remaining portfolio and MSC a smaller portion. (Reporting and editing by Sumana Nady in Bengaluru)
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Maguire: Europe's gas storage is under scrutiny after Qatar stops LNG flow
Gas inventories in Europe are at historically low levels. This could become a problem for utilities and industries across the region, following the halting of LNG by Qatar, world's third largest LNG producer. Gas storage operators in Europe have been compelled to reduce their stockpiles this winter due to a combination of high gas prices, higher than normal winter temperatures, and a subdued regional economy. As a result of record-breaking exports of natural gas liquefied from countries like the United States, Qatar and others, there were also expectations that the international gas market would be overflowing with gas by 2026. After drone attacks by Iran this weekend on Qatar's main LNG facility, the narrative of LNG abundance is now being replaced with expectations of shipping delays and sharply increased prices. Price Panic The benchmark wholesale price of natural gas in Europe jumped over 30% Monday, compared with the end of the previous week. Market participants were scrambling to adjust prices to reflect the impact of the loss in supplies from Qatar. According to Kpler the effects of a prolonged Qatar LNG shutdown would likely affect?all LNG flows, particularly to Asia's largest buyers. China, the top LNG importer by 2025, relied on Qatar to supply 29% of its LNG last year. India, number four in terms of LNG buyers relied on Qatar to provide 45%. China, India and South Korea are likely to increase their interest in other suppliers to plug any possible shortfalls resulting from the Qatar shut downs. This will lead to tighter LNG supplies for all destinations. EUROPE'S FEATURE Although the exact timeline for Qatar's outages is still unclear, gas storage and consumers across Europe need to quickly decide what they can do to avoid further gas depletion. They also must be careful not get caught in a panic buying spree that could drive global LNG prices higher. Gas inventories are already at record lows or multi-year lows. Many of Europe's largest gas consumers will be forced to increase their gas purchases even if gas prices continue to rise. Data from LSEG show that natural gas inventories started March in Germany – Europe's biggest gas consumer – at just 27% capacity. This compares to an average capacity of 64% for this time of the year since 2023. Gas stocks in the Netherlands, Europe's largest gas trading hub, are at only 10% capacity. This compares to an average of 48% for early March. Italy, Europe's largest gas consumer, has inventories of gas at about 50% capacity. This is better than many of its northern counterparts but still lower than the average of 60% in early March. Gas stocks in Europe are around 30% full, compared to 54% for early March. This means that almost all of the major gas consumers are being pushed to build up their stocks, despite the increased global competition and the already-rising price. These are the opinions of a columnist, who is also referred to as 'the author. You like this column? Open Interest (ROI) is your new essential source of 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 7 days a weeks.
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Commodity markets and China's new five-year plan
China's annual parliamentary session, which begins on Thursday, will see the unveiling of its five-year plan, which outlines Beijing's economic ambitions and sectors that are slated for funding and policy assistance. Although specific details of implementation are rarely provided, the document is a guide to policy-making and gives an indication of how the world’s largest consumer will steer its economy. What to look for when buying commodities CLIMATE AND POWER Climate activists hope that the plan will tighten controls on China's total carbon emissions. Beijing has promised to reach a peak in 2030, but without specifying what level. Analysts say that the massive rollout of renewable energy will continue. However, they are focusing on transmission lines and green consumption targets in order to integrate energy better into the grid, and to stop energy curtailment. The plan is not expected to be a strong opponent of coal-fired power generation. In fact, the shortage of electricity in 2021 will likely lead to record building under the current plan. In a research report, MERICS analyst Johanna Krebs said that Beijing may not be willing to pay the political price of destroying an entire industry at a time when a 'large part' of China is financially struggling. The level of investment in alternative fuels such as green hydrogen and sustainable aviation fuel, that China continues to make despite the pullbacks elsewhere, is also a focus. OIL AND GAS After a seven-year effort to reverse the decline in oil production, domestic production reached a record level last year. The next five-year plans may indicate how Beijing intends to react as output is set to reach a new peak soon. Beijing will also be able to gauge how it feels about the upcoming peak in oil consumption. In December, the National Energy Administration stated that China should 'push for a peak' in its upcoming five-year plan. Researchers at Sinopec's and CNPC's think tanks predict that natural gas will continue to be a top priority. They expect a growth rate of 5% per year on average over the next five-year plan. CRITICAL MINERALS China used its control of rare earths to negotiate a truce in the trade war with the U.S. Rare earths are mentioned only once in the current five-year plan. However, as Washington and its allies move to build alternative supply chain, keep an eye out for China's reaction. The focus will also be on domestic production and stockpiling. China announced a new push for both in proposals released last October. In February there was a rare announcement that copper would be studied as a system of commercial stockpiling. It is possible that China will also implement new policies in relation to the huge scrap market. In late 2024, the country may create a state-backed group for the purpose of consolidating the sector. Overcapacity This year's "fanneijuan" or anti-involution plan will help officials tackle overcapacity in industries from pork to steel. Look for stricter rules regarding new or replacement capacities in 'China's giant industry of steel. This could include tying production with carbon emissions. Over the last year, there has been talk about copper smelters?and refiners as well. Watch for signs that policymakers are planning to do more. FOOD SECURITY China is a country with many mouths to satisfy, but an agricultural sector that lacks the technological sophistication and scale of the United States or Brazil. Even Pay, director of policy research group Trivium China, says that more efforts will be made to change this. A special focus will be on the future of genetically modified crops. Despite being discussed for years in China, GM crops haven't been widely adopted due to high prices and consumer and farmer resistance. Analysts are also watching for signs of initiatives that will help China reduce its vulnerability to imported grains and soybeans, either by reducing the use of these grains in animal feeds or diversifying their import sources. Reporting by Lewis Jackson in Beijing, Amy Lv in Shanghai, Sam Li in Beijing, Daphne Zhang in Beijing, and Colleen Waye in Beijing; editing by Sonali Paul.
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Qantas CEO: airline does a good job of monitoring fuel price increases and hedging.
Qantas Airways' CEO Vanessa Hudson said?on Tuesday? that although the airline has "pretty decent" fuel hedging, the increase in oil prices due to the conflict between Israel, the U.S. and Iran is significant for the aviation sector. She said that the airline's stock fell for the second consecutive day, with a trading volume of up to 3.9%. The conflict has forced major Gulf hubs to remain closed for the fourth day. This includes the busiest airport in the world, Dubai, which is usually home to over 1,000 flights per day. This has left tens or thousands of passengers stranded, as aviation faces its biggest challenge since the COVID-19 Pandemic. Qantas doesn't use airports in?the Middle East? so it wasn't directly affected by the flight cancellations. However, the airline was helping to communicate with passengers from partner airline Emirates, who were trying travel to or out of the region. Last week, the Australian airline said that 81% of fuel was hedged in the second half of their financial year which ended June 30. The hedges were spread over a 24-month rolling period. The company estimated that its fuel bill for the second half of its financial year ended June 30 was A$2.5 billion ($1.77billion), including carbon costs and hedging. Japan Airlines Chief Finance Officer Yuji Saito stated on Monday that the airline 'planned to adjust their fuel surcharge for flights abroad, but did provide a timeline. He told reporters that on the domestic market, "since there's no surcharge?we offset part of the spike in price through hedging." Japan Airlines shares were down 3.5% at the start of trading on Tuesday. Shemara WIkramanayake is the CEO of Australia’s largest investment bank Macquarie Group. She said that on Tuesday, the conflict was likely to have an impact on the availability and cost of oil. Wikramanayake's company, one of the largest oil and gas traders in the world, said that there would be a delivery issue. $1 = 1.4094 Australian Dollars (Reporting and editing by Jamie Freed, Byron Kaye from Sydney, Hina Suzuki from Tokyo)
France's Macron says FCAS fighter jet program is not dead
French President Emmanuel Macron said the French-German-Spanish ?FCAS warplane programme was not dead ?and he hoped to ?discuss ?plans for progress on it soon with German Chancellor Friedrich Merz.
Sources said that in December, a meeting of the French, German, and Spanish Defence Ministers had failed to achieve a breakthrough regarding the'rescue' of the troubled program, where the countries were to build a jet to replace the 'France's Rafales' and Germany's and Spain's Eurofighters.
Macron responded "No" when asked in interviews by European newspapers, including Le Monde and Financial Times, if the FCAS Project was dead.
In the published interviews on Tuesday, Macron said: "The French assessment of FCAS is that it's a very good project. I haven't heard a single German voice tell me that it's not a good project."
He also expressed his hope that the FCAS project will progress.
(source: Reuters)