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Minister says cost of UK's rail HS2 project could soar to $138 Billion
Transport Minister Heidi Alexander revealed on Tuesday that the bill for Britain's high-speed rail line, HS2, could reach a staggering?103 billion pounds ($138billion). This is?the latest in a series of cost overruns for?the beleaguered project. HS2 was originally designed to increase capacity and catch up Britain with other European countries that have extensive high-speed network. The spiraling budget and delays in the project meant that successive governments had to drastically reduce the length of this new line. This put the future of the entire?project' at risk. Alexander stated on Tuesday that a new analysis shows cancelling the order now would cost the same as continuing. She said that the cost of the line connecting central London to Birmingham is now estimated between 87.7 and 102.7 billion pounds. Services will not begin until 2036 or 2039, a decade later than originally planned. Alexander stated that "taxpayers, passengers, and communities along the route have been let down for years by mismanagement of HS2". She added that she is confident in a team who had delivered London's Elizabeth Line. NO STOP IN CENTRAL LONDON UNTIL 2040 AT LEAST The first trains into Euston Station in central London will not operate until 2040-2043. Trains that run before then will terminate at Old Oak Common, west London. Alexander blamed the previous government for their decision to build the "world's fastest train" with a highly engineered and bespoke railway. He also said that inflation, inefficient delivery and underestimation were the reasons behind the cost increases. HS2 was intended to modernize Britain's mostly Victorian era?railway system and improve connections between London and northern England. The cost was estimated to be 32 billion pounds by 2011. As the cost of the bill grew, the connections to northern cities like Leeds and Manchester had to be cut off in the early 2020s. The bill was estimated to be 56 billion pounds by 2018, but multiple reports have since put it at closer to 100 billion.
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Portuguese Cabin Crew Union to Join June 3 National Strike
A union spokesperson announced on Tuesday that members of the Portuguese 'cabin crew' union SNPVAC had voted to join an upcoming?June 3,?nationwide?strike which will disrupt flights operated TAP, Ryanair, and EasyJet. Portugal's largest umbrella union, CGTP called the general'strike' in protest of the government's 'labour reforms'. SNPVAC stated that it could not be indifferent to what it called a "unprecedented assault on fundamental rights and established rights" by the Government. TAP, the largest airline in Portugal, operates about 300 flights a day between the airports and the base. Ryanair?and easyJet are the next two airlines, then smaller carriers like?Azores Airlines. One of the most controversial measures in the labour reform is that it makes it easier for employers to dismiss their employees with a good reason. Another is the lifting of limits on outsourcing. Reporting by Sergio Goncalves, Editing by Charlie Devereux and Aislinn laing, and David Goodman
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British Airways extends Middle East flights to August 1,
British Airways delayed the resumption of flights to Dubai, Doha and Tel Aviv for a month to August 1, according to its website. Since the U.S. and Israeli war against Iran began late in February, a number of airlines have cancelled flights to or from?the area. British Airways spokesperson said that due to the current situation in the Middle East, they have altered their flight schedule to give more clarity to 'our customers. IAG's long-haul carrier plans to cut flights to the Middle East once?services return, and permanently drop Jeddah from its list of destinations, as it announced in April. The airline also plans to reduce services to Dubai and Doha to one daily flight. The spokesperson stated that "we are keeping the situation under constant review, and we're directly in touch with affected customers to offer them a variety of options." (Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala)
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WHO official: Test shortages hinder the fight against Ebola virus in Congo
A World Health Organization official stated that limited testing capacity is slowing the response to the Ebola outbreak. According to the WHO, there are at least 500 suspected Ebola cases and 130 suspected Ebola deaths. The disease has spread into Uganda. We have shipped 12 tons of supplies. Six more are expected to arrive today. Anne Ancia said that the samples included personal protective equipment (and) for frontline healthcare workers. Ancia stated that there is "great uncertainty" about the scope and scale of the Bundibugyo Ebola outbreak, and increased surveillance, testing, and contact tracing are underway. She stated that testing for the Bundibugyo was limited, with only six possible tests per hour. She said it took weeks for the outbreak to be detected, in part because the tests used at the outbreak site were designed for the Zaire strain. She added, "The capacity for surveillance and investigation is very limited in the region as a whole." Ancia stated that funding shortages had a huge impact on WHO's capability to fight Ebola. Ancia?said that the United States officially left the WHO at the end of January, and President Donald Trump has cut global health spending. However, the U.S.'s cooperation in fighting the outbreak is working "very well". She said, "We understand we can't receive funding. It's okay. But we want to continue talking, exchanging information and collaborating." OCHA, the U.N.'s humanitarian office, said it had received only 34% of the $1.4 billion funding requested for its appeal in the Democratic Republic of Congo for this year. It added that more than half of that money came from Washington.
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Mexico City Races to Finish Metro and Airport Upgrades for World Cup
Mexico City has less than a month left before the World Cup begins. The city is scrambling for key renovations, such as those to its metro stations and main airport. Locals have expressed frustration at the construction works that they feel are more aimed at tourists than Chilangos (as the residents of the city are called). Work crews are currently building a pedestrian-and-bicycle corridor on Calzada de Tlalpan. The two-kilometer long, or a little over one mile, route is expected to be open by the end of May. Construction has caused lane closures, congestion and a number of lane closures along one the busiest routes in the capital. Blanca Abascal is a local teacher who lives in the neighborhood. "But the situation has been chaotic. At night, we cannot sleep due to the noise." Mexico, Canada and the United States will co-host this year's World Cup. Mexico City will host 5 games starting with the Mexico group match against South Africa on 11 June. Renovation work is currently underway at metro stations such as San Antonio Abad, Auditorio and other locations in the central and western parts of the city to upgrade stained-glass, entrances and platforms. Halim Castro, 22, a student at a university said that the projects are more focused on aesthetics rather than structural maintenance. "Resources can be used for more important improvements, like maintaining the metro, which is very old." Mexico City officials, who claim that the metro system transported more than 1.2 billion passengers last year describe the upgrades as necessary. Metro director Adrian Rubalcava stated that preparations for World Cup helped to accelerate necessary work. He said that the opportunity would allow for deeper work to be done at stations in need of urgent attention, and will improve their condition over time. Some residents also expressed concern about the distribution and allocation of public investments. Arturo Castro is a retired retiree who has called for "broader urban planning". Renovations at the Benito Juarez International Airport have caused some parts to be closed, causing delays for passengers arriving in the capital. "The situation is unsustainable at the airport:?the constant renovations, disorganization and flight delays. Total chaos," said Francisco Ramos a 42-year old architect who visited the airport last week. The President Claudia Sheinbaum said that the project is progressing according to schedule, including upgrades at Benito Juarez Airport and Felipe Angeles, the other airport in the city. She said that they would be finished on time for millions of visitors, including athletes. (Additional reporting by Diego Ore. Editing by Rosalba o'Brien.)
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South Korea's NOFI purchases about 68,000 tonnes of corn in tender, traders claim
The European traders reported that the leading South Korean animal feed manufacturer Nonghyup Feed Inc. purchased a total of 68,000 metric tons of animal 'feed corn at an international auction seeking up to 138,000 tonnes on Tuesday. The corn was bought in one shipment for arrival in South Korea on or around September 25. The price was $278.49 per ton, cost and freight. Plus a $1.50 surcharge for additional port unloading. The traders reported that the bid for a?second corn?consignment? also requested in the tender was rejected, and no purchase was made. The purchased corn shipment was to be shipped from either the U.S. Pacific Northwest coast between August 17, and September 5, or the U.S. Gulf between July 28, and August 16, or South America between July 23, and August 11, and South Africa between August 7, and August 26. NOFI bought feed wheat at a tender held on Tuesday. The reports reflect the assessments of?traders, and it is still possible to estimate?prices and volumes later. Reporting by Michael Hogan, Hamburg. Mark Potter (Editing)
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South Korea's NOFI purchases up to 65,000 tonnes of feed wheat through a tender, traders claim
European traders reported that the leading South Korean animal feed manufacturer Nonghyup Feed Inc. purchased between 55,000 and 65,000 metric tons of animal feed wheat at an international auction on Tuesday. The total cost of the consignment was estimated at $292.99 per ton, including freight and cost (c&f), plus $1.50 for port unloading. Trading house Cofco was suspected to be the seller. The wheat was expected to arrive in 'South Korea around September 10 The tender sought wheat from a wide range of origins, excluding Argentina and Pakistan. The shipment was requested from the U.S. Pacific Northwest Coast, Australia or Canada from August 2 to August 21.?From the U.S. Gulf from July 13 to August 1. From Europe between July 18 and August 6. The reports reflect the assessments of traders, and further estimates of volumes and prices are possible in the future. Michael Hogan, reporting from Hamburg. Mark Potter (Editing)
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Since the Ukraine War, Russia has been increasing its energy ties to China
China has increased its purchases of Russian gas and oil since the beginning of the conflict in Ukraine 2022. Moscow and Beijing declared a partnership with "no limitations" just days before war broke out. Energy relations between Russia and China are expected to be a major topic at the meeting of Vladimir Putin with Xi Jinping in Beijing, on Wednesday. Here are some facts about energy ties between the two countries. Gazprom, the Russian energy giant, supplies natural gas to China through a pipeline of 3,000 km (1,865 miles) called Power of Siberia, under a $400 billion, 30-year deal signed at the end of 2019 Exports will increase by a quarter in 2025 to 38,8 billion cubic metres (bcm), surpassing the planned capacity of 38 bcm. In September, during Putin's trip to China, the two countries agreed to raise the annual volume of gas on the route from 42 bcm to 44 bcm. China agreed in February 2022 to purchase up to 10 billion cubic meters of gas per year?by the end of 2027, via a pipeline that will connect Sakhalin Island to Russia's Far East. Later, the countries agreed to increase the volumes to 12 billion cubic meters. Russia's exports of gas to China are still a fraction of its record 177 Bcm delivered to Europe annually in 2018-19. The share of Russian gas in European Union imports fell during the Ukraine conflict, especially?in terms of pipeline flows. Russia was the EU’s second largest liquefied gas supplier with a share of 16% last year, but the gap between the EU’s main LNG partner - the United States - widened significantly. Russia and China are still in discussions about a new Power of Siberia 2 pipe that can deliver 50 bcm of natural gas to China via Mongolia each year. Gazprom started a feasibility study for the pipeline in 2020. However, the project is now more urgent as Russia looks to China as its main gas customer. Gazprom CEO Alexei Miller stated in September that both countries had signed a legally binding memorandum on the pipeline. However, a contract has yet to be finalized. According to TASS, China's Customs data cites that Russia's liquefied gas exports to China increased by 18.2% last year to 9,79 million metric tonnes. China is the largest purchaser of seaborne gas in the world. After Australia and Qatar, Russia is the third-largest LNG supplier to China. OIL China is the top client of Moscow for oil shipments by sea and pipelines. The sanctions imposed by the West on Russia for its involvement in the Ukraine war have led to a surge in exports. China's General Administration of Customs reported that China's imports of Russian oil were 2.01 million barrels a day (bpd), or 100.72 millions metric tons, in?2025. This represents a 7.1% decline. This represented 20% of China's total imports by volume. Yury Ushakov is Putin's aide for foreign policy. He said that Russian oil exports reached 31 million tons in the first quarter 2026. China is the largest oil consumer in the world. It mainly purchases crude oil from Eastern Siberia to the Pacific Ocean (ESPO), which is exported via the Skovorodino Mohe spur on the 4,070-km (2.540-miles) ESPO pipe. This pipeline connects Russian oilfields with?refineries and ports in China. Transneft, the Russian oil pipeline operator, has announced that it is expanding the ESPO pipe to increase exports through Kozmino. The expansion work should be completed by 2029. China imports oil as well from the Pacific island of Sakhalin in both Sakhalin Blend oil and Sokol oil grades. Since July 2025 when exports were increased to 1 million barrels a day, the 'availability' of ESPO blend oil has remained high. Transneft keeps exports via Kozmino around this level. The Russian government has agreed to increase its oil exports via Kazakhstan to China by 2.5 million tonnes per year, to 12.5 millions tons. (Reporting and editing by Gus Trompiz, Vladimir Soldatkin)
Bousso: The energy market is in a twilight area because of the ceasefire between Iran and ROI
The Iran war ceasefire will bring much-needed relief to the economies that have been hit by the worst energy crisis in history. But hopes of a quick return to normal oil and natural gas flow from the Middle East are most likely misplaced. U.S. president Donald Trump agreed on Tuesday to a ceasefire for two weeks, provided that Iran halted its blockade of gas and oil shipments through 'Strait of Hormuz', the narrow waterway which typically handles?one fifth of the global oil trade. Abbas Araqchi, Iran's Foreign Minister, said Tehran would "halt counter-attacks" and ensure safe passage of vessels traversing the strait.
Uncertain is the exact time frame in which the ceasefire will be fully implemented. Iran continued to attack Israel and Gulf states shortly after Trump announced the deal, highlighting its fragility. In its sixth week of fighting, the war has already claimed over 5,000 lives in nearly a dozen different countries. It has also severely damaged regional infrastructure including oil and gas installations. The financial markets welcomed the news. The Nikkei index in Japan rose 5%, reaching a new high. Brent crude fell 13%, to $95 per barrel, by 0300 GMT. Traders priced in an easing of the supply risk.
QUICK RELIEF VAULT
The temporary ceasefire and reopening the Hormuz Strait would allow Middle Eastern exporters of oil to move significant volumes that have been trapped in the Gulf since hostilities started, providing immediate relief to global energy markets.
Kpler, a firm that provides analytics services, estimates that around 200 tankers are presently containing 130 million barrels crude oil and 46 millions barrels refined fuels in the region. Another 1.3 millions tonnes of liquefied gas is also stuck on vessels waiting for safe passage.
The disruption was particularly severe for Asia, where 60% of its gas and 80% of its oil imports come from the Middle East. Following the abrupt cuts in fuel deliveries, several countries were forced to reduce industrial production and ration supplies. These trapped volumes could therefore be released to ease the greatest pressure on Asian economies and energy systems.
The problem is not just clearing up the backlog. It is one thing to get tankers out of Gulf, but it's another to convince shipowners and chartered vessels to return.
The unprecedented blockade on Hormuz caused a severe disruption to global shipping markets, as it reduced tanker availability and pushed freight rates up to record levels. Shipowners will likely be extremely cautious when reentering the area during what, at best is a shaky, time-limited ceasefire. They fear that their vessels and crews may once again get trapped if hostilities return.
This caution will also constrain any attempts to restore normal export flows.
OIL PRODUCTION IN LAG
Kpler reports that Middle East oil exports via Hormuz fell by 13 million barrels a day (bpd), which is equivalent to 13% of the global demand. Saudi Arabia and the United Arab Emirates were able to divert some shipments via alternative routes. However, regional producers had to close down an estimated 7.5 millions bpd production in March. This included 2.8 million bpd for Iraq and 1.9million bpd for Saudi Arabia.
As things stand, it is unlikely that much of this production will return quickly.
It can take several weeks to restart oilfields in the Middle East. Saudi Aramco, the UAE's Adnoc and other national oil companies may hesitate to restore production until they have more clarity about the duration of the ceasefire.
Repairs to refineries, fields, and export terminals that have been damaged by drone and missile strikes could take months or even years. A shortage of skilled workers and specialised equipment could also slow down restoration efforts in the region.
It is important that producers do not restart refineries and fields if they are unsure of the availability of tankers to transport crude oil, diesel, and jet fuel.
If Washington and Tehran agreed to a permanent cessation in hostilities, which led to a full reopening the Strait of Hormuz and oil and gas trade could return to normal operations. Even in this more optimistic scenario, however, the war will likely leave lasting scars to global supply.
According to Saul Kavonic of MST Marquee, who is the head of energy analysis, in the medium-term, oil markets could be 3 to 5 millions bpd tighter than pre-war expectations over the next several years due to damage done to export infrastructure, and the need to "rebuild depleted inventory",
The two-week-old ceasefire that is now in place risks becoming a temporary fix to what has become a global energy crisis of unprecedented proportions unless the warring sides reach a more firm peace agreement. The opinions expressed are those of Ron Bousso a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn 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)