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E.ON expresses concern about German grid reforms
E.ON, Europe’s largest energy grid operator, expressed concern on Wednesday that the new rules on how much German power network operators can earn from investments would not reward their funding adequately. Nadia Jakobi of E.ON Finance, who spoke to investors following the presentation of nine-month results said that the uncertainty surrounding the regulation which determines power grid returns over the next five years starting in 2029 was "greater" than what we expected. The German grid regulator is in the final stages of finalising its reform proposal, which includes a cap on the earnings of grid companies to balance the need for lower consumer bills with incentives to investors. Jakobi stated that the current framework draft does not accurately reflect the grid operators' costs of financing. He added that E.ON could consider legal options in the event the final proposal did not meet the company's expectations. REGULATOR SETS RELEASES E.ON shares dropped to their lowest level in over two months, and were down by 4.5% as of 1226 GMT. Grid operators including E.ON say that they need to increase their earnings caps in order to pay for expansion of power grids, which is required to provide infrastructure for AI driven data centres. The regulator's current recommendations regarding grid financing reform are not public. Jakobi stated that the regulator indicated that the current version was "close to the final" and that "proposals in general must be attractive enough to encourage investments." Analysts at Bernstein said that it was not clear whether E.ON will have enough clarity by February 2026 for a decision on upgrading investments in German networks. E.ON had earlier announced that its investments had increased by 8% over the first nine-months of the year. It also confirmed its outlook through 2025. (1 dollar = 0.8575 euro) (Reporting and editing by Miranda Murray, Jane Merriman and Christoph Steitz)
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SpiceJet, an Indian airline, reports a larger loss due to a weaker passenger traffic
SpiceJet, the cash-strapped Indian airline, posted a larger quarterly loss on Tuesday. The drop in passenger traffic as well as rising foreign exchange costs were to blame. The company lost 6.34 billion rupees (roughly $72.1 million) in the third quarter of last year, compared to a loss 4.42 billion rupees one year earlier. SpiceJet is still struggling to increase its fleet capacity, despite numerous fundraises and agreements with lessors. The carrier is relying on wet lease arrangements to increase capacity in advance of the holiday season which falls during the third fiscal quarter. SpiceJet's passenger numbers dropped by 22.5%, to 751,000 passengers during the quarter. The company's revenues dropped by 13%, to 7.08 billion rupies. Ajay Singh is the chairman and managing director of the company. He said that while the results show short-term costs associated with fleet revival and expansion they are strategic investments which will begin to yield results in the current quarter. The eight-fold increase in foreign exchange losses added to the pressure on margins. The forex losses amounted to 1.88 billion rupees or 26.5% of the total revenue.
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Maguire: Gigawatt growth – How global power pipelines are taking shape.
Once projects currently in construction are completed, and power is directed onto electricity grids and generation systems, the global power generation capacity will increase by just under 25%. Global Energy Monitor's data shows that 1,450 GW of new power capacity are currently being built globally. When completed, this will increase the power footprint in the world from 8,000 GW up to 9,500 GW. The majority of fossil fuel capacity is being built by coal-fired power plants, with the remaining two-thirds coming from renewable energy sources like solar and wind farms. Asia is the region that accounts for nearly all of the planned capacity expansions. The Americas are currently the second largest area of construction. Here is a breakdown on the power pipelines currently being built, based on power sources and geographic locations. It also shows how new projects will impact the final mix of power generation. CLEAN BREAK Solar farms are the biggest contributor to the 950 GW clean energy capacity that is being built. Around 345 GW new solar power capacity is currently under construction. Around 267 GW of hydropower capacity are currently under construction. Wind farms follow with 251 GW. Around 82 GW new nuclear capacity, 7.5GW new bioenergy, and 1.8GW new geothermal energy are also under construction. GEM data indicates that clean energy sources currently account for approximately 46% of all power in operation. However, after the completion of a clean-heavy pipeline of construction, they will represent 49% of total power. FOSSIL MOMENTUM A third of global power pipelines being built will use fossil fuels. Around 275 GW of coal-fired generation is currently being constructed around the world. A further 215 GW is being built of gas-fired capacity, which will increase the total fossil fuel production capacity from 4,326 GW to 4,815 when all projects are completed. After all the clean and fossil fuel capacity is completed, the fossil fuel share in global generation capacity will drop to 51%. ASIA-DRIVEN Asia is the leading region for the construction of new power plants, with 84% of the projects under construction currently located in the area. Asia is home of around 83% all clean energy projects, and 85% all fossil fuels projects. This is a testimony to China's massive energy needs and manufacturing power in energy components. Asia has 99% of coal-fired power capacity in the world, and 68% of new gas-fired capacities are being built there. GEM data indicates that once the projects currently in construction are completed, Asia's share in global power capacity will increase from 53% to 58%. Around 65% of new power capacity will be powered by renewable energy. This will bring Asia's current power mix up from 37% clean and 63% fossil fuels to 44% clean and 56% fossil fuels. When projects are completed, the Americas will lose 21% of its current power capacity. Once current construction is completed, the mix of America's power capacity, which is currently fairly evenly split between clean and fossil sources, will change to 51% clean and 49% fossil fuels. Europe's share in global power capacity is expected to fall from 19% down to 17% after all construction projects are completed. The continent's share clean of total power will stay largely the same at 68%. After the current work is completed, Africa and Oceania are expected to continue having a share of approximately 4% in global power generation. Once construction is completed, Africa's clean-fossil energy capacity will change from 28% clean and 72% fossil fuels to 33% clean and 67% fossil fuels. Oceania will shift from an even mix of fossil and clean fuels to a mix of 54% clean fuels, 46% fossil after current construction projects have been completed. These are the opinions of the columnist, an author for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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Bousso: The IEA's optimistic oil forecast is a wink to Trump and a wake-up for the world.
The latest International Energy Agency outlook indicates that oil demand could continue to rise into 2050. This is a dramatic shift from previous reports, and it serves as a reminder of the importance of black gold in the global economic system. The IEA published its annual World Energy Outlook on Wednesday. It outlines different paths for energy demand up to 2050. This is a fairly routine release, but this year it has become a political issue. The U.S. administration of President Donald Trump has accused the Paris-based energy watchdog of politicising its report that suggests fossil fuel demand could plateau in 2030. Chris Wright, the Energy Secretary of the United States, has called the idea of peak oil demand "sensical". The 2025 report presented a new scenario that showed that oil consumption will not plateau by 2030, but instead will reach 113 million barrels a day at mid-century. This is an increase of around 13% over 2024. TROUBLING MESSAGE ABOUT GLOBAL WARMING The Current Policy Scenario's (CPS) "existing policies", which are baked into it, range from renewable energy mandates to fossil fuel extraction laws and construction standards. The CPS scenario, which is the most common among IEA's projections, takes a "prudent perspective" in regards to the adoption rate of new technologies. It therefore gives fossil fuels a greater role in the future. This reversal may be welcomed by former critics of IEA as a dose of reality that is needed to counteract the organization's green tendencies. To be fair, the previous scenarios were probably overly optimistic regarding the implementation of climate friendly policies and the move away from fossil-fuels. The message CPS sends is disturbing, even if you put aside the political issues. The report indicates that temperatures will rise by 2.9 degrees Celsius above pre-industrial levels in 2100. This is far more than the 1.5 degree target set by scientists to prevent the worst impacts of climate changes. If you're right, then the world is in serious trouble. CPS IS BASED ON QUESTIONABLE ASSURANCES However, the CPS is based on some very questionable assumptions. It assumes, first, that recent technological leaps, which led to a sharp drop in the price of batteries, renewables and electric vehicles, will stagnate or even decrease in certain countries until 2035. The report also assumes that internal combustion engine efficiency will slow after 2035. This is a trend that has lasted for decades. The CPS's optimistic oil demand forecast is based on a conservative estimate of the growth rate for EV sales. In 2025, EVs will account for 25% of global new car sales, up from 5%. The energy outlook is impacted by the projections related to automobiles because today, road transport accounts for 45% of oil consumption worldwide. The CPS assumes that the EV market share in the United States, India and China will remain at 15%. It is difficult to extrapolate from the fact that EVs have become cheaper and more advanced in recent years to project future demand. Will U.S. customers really continue to use an old technology when newer technologies become more affordable? The CPS also assumes that gasoline and diesel will continue to increase in consumption until 2050. This would require new refinery capacity. This type of investment, which is capital intensive, will not be possible unless oil prices continue to rise for a significant period. Obviously, higher gas prices will make internal combustion vehicles less competitive with battery-powered cars. CPS is based on the assumption that the barriers to the adoption and development of low-carbon technologies are only going to increase. These assumptions are somewhat baffling, given the huge investments that are expected to be made in this field globally. Investments in clean energy technologies are projected to reach $2.2 trillion by 2025. NET 'ZERO HOUR'? The IEA has a right to acknowledge the political and economical realities that have prevented the world from meeting various climate commitments. The IEA is correct to note that climate change has slowed down in recent years due to the shock of energy prices that came after Russia's invasion in Ukraine in 2022. Energy security has become the focus of attention, as opposed to energy transition. After President Trump withdrew the United States from the 2015 Paris Climate Accord on the first day his second term, the United States dealt a severe blow to energy transition efforts. Since then, he has rescinded many of the green policies and regulations that were the hallmarks of his predecessor. The energy transition remains an economic necessity. This is because the scientific consensus shows that the rising costs to prevent climate change are far greater than the costs associated with deploying cleaner technologies. The IEA's forecast will be a sobering read as world leaders and scientists gather at the COP30 Climate Summit in Belem Brazil. Subscribe to my Power Up newsletter to receive my weekly column, plus additional energy insights and links trending stories in your mailbox every Monday and Thursday. Subscribe to my Power Up Newsletter here. You like this column? Check out Open Interest, your essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Hindustan Aeronautics, India's Hindustan Aeronautics, posts 11% increase in quarterly profit. Key margin contracts
Hindustan Aeronautics Ltd. (HAL), supported by strong orders, reported a higher second-quarter result on Wednesday. However, weaker operating margins caused its shares to fall 3% following the results. For the three-month period ending September 30, the state-owned manufacturer of fighter jets' consolidated net profits rose 10.5%, to 16.69 billion Rupees ($189.89 millions). HAL has seen increased activity as a result of India's drive for self-reliance in the defense sector. In the Union Budget, the government allocated 6.81 trillion rupiahs to the Defense Ministry and earmarked an additional 1.8 trillion rupiahs for local procurement. HAL, however, reported a margin of earnings before taxes, depreciation and amortization of 23.5% in the third quarter, compared with 27.4% one year earlier. The total expenses rose 17.3% due to a 32.8% increase in the cost materials. HAL said in May it expected to maintain an EBITDA margin of around 31% this year. HAL has signed contracts with the Indian space agency ISRO, the Defence Ministry and other government entities related to space during the first quarter. Revenue increased 10.9% to 66.29 Billion Rupees. Peer Bharat Electronics announced a higher quarterly profit at the end of October.
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Japan's super-long JGB yields near 1-month high due to spending concerns
Investors cited concerns over Prime Minister Sanae Takayichi's plans to spend. The yield on the 20-year JGB rose by up to 2 basis points to 2,695%. And for the 30-year JGB, it rose by 2 bps to 3,195%. These are their highest levels since October. Takaichi announced this week that she would set a new fiscal goal extending over several years in order to allow for more flexibility with spending. This is a way to water down Japan's commitment towards fiscal consolidation. Takashi Fujiwara is the chief fund manager of Resona Asset Management’s fixed income division. The increase in yields was also a result of a poor outcome in the 30-year bond sale in the previous session. Fujiwara said that the sale of 30-year bonds would be limited, as the demand and supply may be equal. The Japanese finance ministry has cut back on the amount sold during the auctions. The market was spooked by the lack of demand for long-term bonds at auctions held earlier this year, which caused a spike in the yields. This prompted the Ministry to reduce the issuances of securities with maturities between 20, 30, and forty years. Fujiwara said that the ministry could announce a further reduction in 30-year bond sales during a meeting with primary dealers scheduled for later this month. The yields on short-dated bonds were not much different, with the 10-year JGB yield slipping 0.5 bp down to 1.685%. The yield on the five-year JGB was unchanged at 1.245%. However, the yield on two-year JGB rose by 0.5 bps to 0.935%. (Reporting and editing by Alexander Smith; Junko Fujita)
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EU Naval Force takes control of the dhow used by pirates in Somalia
An EU naval mission has taken over control of a dhow flying the Iranian flag that pirates used last week in an attack on an oil tanker off Somalia's coast and abandoned. Recent attacks by Somali pirates on ships off the Horn of Africa have rekindled fears about the safety of shipping routes that carry vital energy and goods into global markets. Operation Atalanta - the EU's naval force - said that the crew of the dhow were safe and in good health. It added that they worked with Somali authorities to find the pirates. The Indian Navy warship and the flagship of the operation closely monitored the dhow abandoned by alleged pirates off the coast of Somalia's northwestern tip. "The pirate group... operating in this area has definitely been disrupted." Pirates had taken the fishing boat, a dhow, in the beginning of this month. A few days later, they used it to board a tanker flying the Maltese flag, the Hellas Aphrodite. It was carrying Indian gasoline from India to South Africa. The EU navy force captured the tanker Friday. (Reporting and editing by Alexander Winning, Clarence Fernandez and Clarence Fernandez; Reporting by Vincent Mumo Nzilani & George Obulutsa)
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Maguire: Gigawatt growth – How global power pipelines are taking shape.
Once projects currently in construction are completed, and power is directed onto electricity grids and generation systems, the global power generation capacity will increase by about 25%. Global Energy Monitor's data shows that 1,450 gigawatts of new power capacity are currently being built around the globe. When completed, this will increase the power footprint in the world from 8,000 to 9,500 GW. The majority of fossil fuel capacity is being built by coal-fired power plants, with the remaining two-thirds coming from renewable energy sources like solar and wind farms. Asia is the region that accounts for nearly all of the planned capacity expansions. The Americas are currently the location of the second largest amount of capacity construction. Here is a breakdown on the power pipelines currently being built, based on power sources and geographic locations. It also shows how new projects will impact the final mix of power generation. CLEAN BREAK Solar farms are the biggest contributor to the 950 GW clean energy capacity that is being built. Around 345 GW new solar power capacity is currently under construction. Around 267 GW of hydropower capacity are currently under construction. Wind farms follow with 251 GW. Around 82 GW new nuclear capacity, 7.5GW new bioenergy, and 1.8GW new geothermal energy are also under construction. GEM data indicates that clean energy sources currently account for approximately 46% of all power in operation. However, after the completion of a clean-heavy pipeline of construction, they will represent 49% of total power. FOSSIL MOMENTUM A third of global power pipelines being built will use fossil fuels. Around 275 GW of coal-fired generation is currently being constructed around the world. A further 215 GW is being built of gas-fired capacity, which will increase the total fossil fuel production capacity from 4,326 GW to 4,815 when all projects are completed. After all the clean and fossil fuel capacity is completed, the fossil fuel share in global generation capacity will drop to 51%. ASIA-DRIVEN Asia is the leading region for the construction of new power plants, with 84% of the projects under construction currently located in the area. Asia is home of around 83% all clean energy projects, and 85% all fossil fuels projects. This is a testimony to China's massive energy needs and manufacturing power in energy components. Asia has 99% of coal-fired power capacity in the world, and 68% of new gas-fired capacities are being built there. GEM data indicates that once the projects currently in construction are completed, Asia's share in global power capacity will increase from 53% to 58%. Around 65% of new power capacity will be powered by renewable energy. This will bring Asia's current power mix up from 37% clean and 63% fossil fuels to 44% clean and 56% fossil fuels. When projects are completed, the Americas will lose 21% of its current power capacity. Once current construction is completed, the mix of America's power capacity, which is currently fairly evenly split between clean and fossil sources, will change to 51% clean and 49% fossil fuels. Europe's share in global power capacity is expected to fall from 19% down to 17% after all construction projects are completed. The continent's share clean of total power will stay largely the same at 68%. After the current work is completed, Africa and Oceania are expected to continue having a 4% share in global power generation. Once construction is completed, Africa's clean-fossil energy capacity will change from 28% clean and 72% fossil fuels to 33% clean and 67% fossil fuels. Oceania will shift from an even mix of fossil and clean fuels to a mix of 54% clean fuels, 46% fossil after current construction projects have been completed. These are the opinions of the columnist, an author for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
Einride, a self-driving truck company, will go public through a SPAC deal valued at $1.8 billion.
The Swedish autonomous trucking firm Einride announced on Wednesday that it had agreed to become public in the U.S. via a merger between Legato Merger Corp III and a blank-check company. This deal valued the company at approximately $1.8 billion.
Listing comes after a surge of electric vehicle startups that went public during pandemic-era SPAC with the goal of capitalizing on huge demand for clean energy vehicles and government incentives to purchase battery-powered automobiles.
Since then, a number trucking and vehicle technology startups, including Nikola, Lordstown Motors and Proterra, have failed due to competitive pressures and operational challenges. They also suffered from rapid cash burn because of high production costs and inability to reach profitability.
As they look to commercialize the self-driving tech, which is under intense regulatory scrutiny, autonomous trucking companies are seeking to automate logistics and shipping in order to meet the increased demand for faster freight deliveries.
Einride wants to increase its growth by attracting up to $100,000,000 in private equity investment. The deal was also strengthened by the $100m it raised from institutional investors in October.
After the transaction closes, the existing management of Einride will continue to run the firm.
A SPAC is a shell company that raises funds through an IPO in order to merge with a privately owned business and bring it public. This provides a faster route to market than a conventional IPO.
Einride, a Swedish company founded in 2016, has its headquarters in Stockholm. Its business revolves around self-driving technologies for trucks. The company has more than 25 enterprise clients, including GE Appliances, and has a fleet around 200 electric cars. (Reporting and editing by Shailesh Kuber in Bengaluru. Zaheer Kachwala is based in Bengaluru.
(source: Reuters)