Latest News
-
Italy's State Railways chief will resign after a rift with the government
Sources said on Thursday that the chief executive of Italy’s state-controlled 'railway company Ferrovie dello Stato is expected to resign within the next few days after months if disagreements with the governing body. The relationship between Prime Minister Giorgia Melons government and the CEO of the company Stefano Donnarumma has been strained by the recurring delays and disruptions on the rail system, which are largely due to maintenance and upgrade work. Sources said that Donnarumma’s departure was decided by mutual consent during a Thursday meeting with Matteo Salvini, Deputy Prime Minister and Minister of Transport for the League far-right party. One source said that the main factors in the decision were the differing opinions about the future strategy of the group and the types of investments required for the network. Source: The government has expressed displeasure with Donnarumma for his past decisions such as the integration of two rail companies and also opposes his plan to use foreign funds to invest in high-speed rail. According to a source from the Transport Ministry, Donnarumma’s successor would be?selected from within the Ferrovie dello Stato 'group. Donnarumma became the new CEO of FS on June 20, 2024, after leading Terna as its power grid operator. According to sources,?Gianpiero Strasciuglio, the head of FS' train operator unit Trenitalia is the front-runner for his replacement. (Reporting and editing by Gavin Jones in Rome; Giulia Segriti, Rome)
-
Airbus unions strike for the first time over an increase in office attendance
French unions have called for a one-day strike and protest at Airbus on Thursday, as the European planemaker is moving to increase the number of 'on-site working days' -for white-collar employees- to at least four a week. This rare action at Airbus follows a letter from Guillaume Faury, CEO, dated June 9, in which he urged improved focus, better quality, and a "personal presence on-site," following a slow start of the year for commercial aircraft deliveries. Airbus is under pressure to deliver its 870-jet annual target while dealing with supply-chain?strains. The CGT union has called for employees to "voice their anger" under the windows of CEO Guillaume Faury at Airbus' Blagnac facility near Toulouse. The CGT said that more than 100 employees had rallied, but did not disclose the full number of staff involved. No reports have been made of any impact to?production. Separately the CFDT union?called a rally for the 30th of June outside the same building and said that it was examining possible legal actions, arguing Airbus applied its remote-working agreement 2024 in bad faith. FO, Airbus France’s largest union, demanded that any changes be put on hold pending the 7th July meeting of Airbus European Works Council and claimed management had assured it that hybrid working agreements would remain valid until 2028. Faury’s letter was reported first by Bloomberg, and it has been seen by. Airbus, whose main operations are in France, Germany and Spain, as well as Britain, has told? Airbus, which has its main operations in France, Germany and Spain?and Britain?, told? Airbus spokesperson confirmed that the group-wide hybrid work policy was now in place. Flexibility remained part Airbus' culture, but the priority for the company was to ensure close collaboration among employees. This policy is only applicable to professionals in the white collar sector, such as engineers. Hybrid working is not available to all technicians and assembly workers. A CGT representative stated that the union requested an official meeting next week with Faury following Thursday's actions. (Reporting Gianluca Nostro. Tim Hepher contributed additional reporting. Mark Potter, Matt Scuffham and Mark Potter edited the article.
-
The longest winning streak of 7 months for India's stock indexes is due to the oil slide
The Indian equity benchmarks posted their third consecutive 'weekly' gain on Thursday. This is the longest winning streak in seven months. Crude oil prices dropped to levels seen before the Iran-War and recent measures taken to bolster rupees and attract overseas inflows improved sentiment. The Nifty 50 gained 0.14% and reached 24,056. The BSE Sensex also rose 0.14%, reaching 77100.47. The indices had each risen by over 1% during the session before some profit-taking in the last hour. Investors trimmed 'their positions late in the day as markets are closed on Friday," said Ankur Punj. Wealth Brent crude dropped 1.4% to $72.7 a barrel after more tankers left the Strait of Hormuz, easing inflation and growth concerns for the third largest oil importer of the world. The?Nifty and Sensex gained 0.2% and 0.4% respectively for the week. The Reserve Bank of India Governor Sanjay Malhotra’s remarks denying a rate hike in the near future also helped to boost sentiment. Lower borrowing costs can support earnings, consumption, and valuations. Six out of 16 major sectors showed weekly gains. The mid-caps and small-caps both fell by 1.2%. The pharma index rose 2.1% after news that the U.S. FDA had reached out to Indian drugmakers about a crucial cancer drug. Two analysts say that investors' preference for sectors with less exposure to crude oil or El Nino risk aided the pharma and healthcare stocks. In the week following the RBI's decision to allow loans against foreign currency deposits, heavyweight financials, banks, and private lenders all rose by?1.3%, 0.9%, and?1.5% respectively. Bajaj Finserv AMC said that a below-normal monsoon was a short-term risk. However, the central bank's decision to mobilize foreign currency deposits and government's removal of bond taxes should encourage foreign investment and support markets. Metals posted a?a loss of 4.4% on a weekly basis, due to?weaker global prices and rising U.S. rate hike expectations for 2026. Interglobe Aviation, a stock company, climbed by 8.5% after lower oil prices eased concerns about the airline's costs.
-
One person killed after Russia attacks Ukrainian fuel stations and locomotives
Officials in Ukraine said that 'Russia' attacked three rail locomotives in Ukraine, killing one driver. It also hit two petrol stations. This is part of a recent escalation of strikes against Ukrainian infrastructure. Both Russia and Ukraine attacked fuel and transportation facilities in an attempt to cut off supplies?to their troops, and gain an advantage along the front lines?of a five-year war. Oleksandr P. Pertsovskyi is the CEO of the state rail company Ukrzaliznytsia. He posted on Facebook that a strike had hit a locomotive located in the Sumy region to the north-east and the Zaporizhzhia area in the south. Pertsovskyi stated that "two crews were able to escape in time, and no one was injured, but the third incident in Zaporizhzhia was tragic: the driver was able to escape,?but the assistant, who was in a rear cab, was not rescued." Pertsovskyi, a Pertsovskyi, told a reporter earlier this month that Russia has attacked over 100 locomotives in just a few months. He said the increase was "simply crazy". He said that Moscow was trying to bring Ukrzaliznytsia’s operations to a halt. Local officials confirmed that Russia also attacked petrol stations in Zaporizhzhia, Sumy and other areas. In the early part of this month, Ukrainian attacks against?Russian fuel logistic led to widespread disruptions in fuel supplies throughout many Russian regions as well as in Russian-occupied Crimea. (Reporting and editing by Andrew Heavens; Pavel Polityuk)
-
Airbus faces backlash from French unions over 4-day return-to-office push
French unions called for a one-day strike and protests at Airbus, as the European planemaker aims to increase 'the number of working days on-site for white-collar employees to 'at least four per week from?at least three. The CGT union has called for employees to "voice their anger" under Guillaume Faury, CEO of Airbus, at the Blagnac site near Toulouse. The company reported that more than 100 employees attended a rally held on 18 June, while others did not attend. The turnout on Thursday was not available immediately, and no impact to production has been reported. Separately, 'the CFDT union' called for a protest outside the same building, on June 30, and'said that it was examining possible legal actions, arguing Airbus applied its remote-working agreement of 2024 in bad faith. Airbus' largest union, FO, has called for all changes to be put on hold until a meeting of the Airbus European Works Council, scheduled for July 7. Management had assured that the hybrid agreement would remain valid until 2028. Bloomberg was the first to report on this dispute. In a letter dated June 9, Faury said that Airbus had to improve its focus, quality and "individual presence" at sites after a slow year-to-date in commercial aircraft deliveries. Airbus faces pressure to deliver its 870-jet annual delivery target despite supply chain strains and engine shortages. Airbus told?it was facing an unprecedented production ramp up while navigating in a volatile economic and geopolitical environment. Airbus spokesperson confirms the new group-wide hybrid work policy. Flexibility remains part of Airbus culture, but the priority is to ensure that employees are working together as closely as possible. This policy is applicable to white-collar roles such as engineers. Some assembly?workers, technicians and other technicians are not eligible for hybrid working. Airbus is a relatively rare company that experiences strikes. Its main operations are in France, Germany and Britain. Reporting by Gianluca Nostro. Tim Hepher contributed additional reporting. Mark Potter (Editing)
-
Caspian crude falls as Middle East supplies increase - traders
The prices of Caspian crude oil grades such as Kazakhstan's CPC Blend and Azerbaijan Azeri BTC are falling despite the growing pressure on European barrels, traders said. The difference between Caspian crude oil and Brent has weakened in line with the global trend. As Gulf oil supplies increase, physical cargoes in many regions are now at discounts to Brent. Iran is expected to boost sales after a temporary easing of U.S. sanction. On Wednesday, oil prices fell further, continuing the declines that began earlier in the week. They are now hovering at four-month lows as more tankers, which have been stranded on the Gulf coast, prepare to cross the Strait of Hormuz. The steep drop in oil prices follows a 60 day 'interim agreement' between the United States of America and Iran, which aims to end the conflict that began on February 28. The agreement has allowed for a partial return of shipping in the Strait of Hormuz, which was responsible for about a fifth (or more) of the global oil and LNG flow before the war. CPC Blend differentials are now about $4 per barrel cheaper than Brent, down from minus $0.50 per barrel earlier in the month. Azeri BTC is also less expensive, at around $3.50 per barrel. According to trading sources, both?grades?spurred during the heights of the conflict between Iran, the United States, and Israel. Premiums briefly exceeded $10 per barrel for Azeri BTC, and $8 per barrel for CPC Blend. CPC Blend is also under pressure from an increasing supply. Market participants say that loadings of the grade reached a record 1,83 million barrels per day in May, up from 1,67 million bpd last month. They are also expected to continue at this level in June. (Reporting and Editing by JoyjeetDas)
-
Sevastopol in Crimea imposes temporary electricity restrictions to households
Sevastopol has limited the power supply to homes in order to avoid overloading the network. This is according the the Russian-installed Governor of Crimea's biggest city, who spoke on Thursday. The Black Sea Peninsula is currently experiencing fuel and electricity shortages. Crimean authorities already have suspended fuel sales for private motorists. Sevastopol, on the other hand, has implemented restrictions to operating hours of public transport, shops and cafes. In 2014, Russia annexed Crimea, despite the fact that most countries don't recognise Moscow's authority in the region. Kyiv, however, has stated it will never cede this territory. The fuel supply to Russia has been disrupted by Ukrainian attacks on energy and logistics facilities in Russia. Mikhail Razvozhayev is the governor of Sevastopol in Moscow, home to Russia’s Black Sea Fleet. He has urged people to avoid using powerful appliances. This measure was forced. He said that it was necessary to reduce the load on the power grids in other regions to avoid an accident affecting the entire energy system. He said that on Wednesday the recent Ukrainian attacks had caused a power outage. He added that trolleybuses will not be operating and parents should keep their children at home. Ukraine has confirmed that its drones have hit the main substation of the Sevastopol Power Plant. Ukraine's strategy of using?long-ranged drones to target Russian energy installations is intended to savor a major source of war funding for Russia and show the Russians that a four-year conflict launched by Moscow has hit?closer home. Vladimir Putin, the Russian president, has stated that the attacks on civil infrastructure were meant to create discord in the Russian population. (Reporting and Editing by Joe Bavier).
-
Maersk confirms that two of its ships have safely exited the Gulf
Maersk, a shipping group, announced on Thursday that the Maersk Baltimore and a time-chartered ship had successfully traversed Strait of Hormuz. Maersk said in a press release that "the transits were completed after thorough security assessments and in close coordination with our security partners." The conflict in Iran, which began on February 28, has caused travel and cargo disruptions?across Middle East. Many vessels, such as those belonging to Maersk and competitors Hapag-Lloyd, CMA CGM and Hapag-Lloyd, have not been able to enter or exit the Gulf. Maersk announced that it will pursue an additional Hormuz transit at a future date, and the remaining two vessels will be used for intra-Gulf service. Maersk reports that of the 47,000 containers Maersk was destined for the Gulf at the start of the conflict, only 44,000 have been delivered, and 3,000 are still awaiting final delivery. Stine Jacobsen, Anna Ringstrom and Essi Lehto contributed to the reporting.
Maguire: Key reasons why Trump’s efforts to save the US coal industry may fail.
The U.S. president's efforts to revive coal in the United States tap into a powerful mix of energy security, industrial policy, and electoral politics. The data shows that structural factors are driving coal's decline.
Even if the government directs tens or hundreds of millions to coal producers and utilities the result will be a misallocation, increased emissions, and higher electricity costs.
There are four reasons that efforts to support coal could ultimately fail.
1. ECONOMICS ARE STUBBORNLY UNFAVORABLE
This could be a bad idea: subsidizing coal runs counter to the fundamentals of the market, leaving taxpayers with an uncompetitive sector while driving up electricity costs.
The share of coal in the U.S. electric generation fell from 60% in 2000 to 16% by 2025. Natural gas has become more popular, cheaper and easier to transport.
The market tells a different story. Since the early 2000s, no U.S. utilities have attempted to build any new coal-fired plants.
During the same time period, many gas-fired power plants were built, reflecting a much stronger economics as well as operational advantages.
The difference is apparent in the levelized costs of energy. Lazard data shows that the cost of power from a coal plant is approximately $115 per megawatt-hour (MWh), while a gas plant costs about $64/MWh.
When utilities are focused on minimizing customer costs, they have little incentive to select coal.
The economics of existing coal plants are even worse due to their age, high maintenance costs and inefficiency. Government subsidies are able to prolong the operation of coal plants, but only by extending their life.
2. CONSTRUCTION COMPLEX AND RISKY
This could be a bad idea: Because coal plants are slower and harder to build, they're more likely to experience delays and overruns in cost even with government support.
Construction of modern combined-cycle gas turbines (CCGT) is relatively simple and quick. In contrast, coal plants require large boilers, fuel handling systems and specialized infrastructure.
Gas plants can burn fuel without any preprocessing. Coal plants must handle large volumes of solid fuels, which require transport, crushing and storage yards. They also need elaborate combustion systems.
These systems also require expensive emissions-control technology and ash disposal system, which adds to capital costs and regulatory complexity. The land requirements are also typically larger.
The industry has lost a lot of knowledge. Few utilities or contractors are familiar with building coal-fired plants after decades of focusing on gas. The resulting?execution risk increases the possibility of unexpected costs and delays.
These factors together make coal projects more costly, slower and less predictable. This is true even when the environment is favorable.
3. LOGISTICAL BURDENS
The heavy transport and handling of coal can cause local opposition and increase costs.
Gas is much easier to transport than coal. Gas can be transported continuously and cheaply via pipelines, while coal is hauled either by rail, truck or barge.
According to the U.S. Energy Information Administration (EIA), approximately 1.14 pounds coal is needed to produce one kilowatt hour of electricity. One gigawatt of coal can be used to generate around 9,000 metric tonnes of coal each day. This is the equivalent of 90 freight cars in a freight train.
A gas plant of the same size, on the other hand, would consume approximately 170 million cubic foot of natural gas per day, a volume which can be easily pumped through existing infrastructure.
In order to expand coal power, it would be necessary not only to build new plants, but also make significant investments in storage, handling, and rail systems. These extra requirements increase costs and can create bottlenecks.
Local challenges are also posed by these projects. The increased rail traffic, noise and dust can cause opposition in communities. This makes it harder for projects to be approved and sustained.
The coal industry's competitiveness is further undermined by these logistical and social constraints.
4. Limited Export Upside
This could be a disaster: Key overseas markets may not export coal because they produce it themselves or are moving away from it.
The coal revival strategy includes a boost in export capacity. This could include proposals for a "gateway" linking Wyoming production with ports on the U.S. West Coast that are aimed at supplying Asia.
Asia dominates the global coal industry. China, India and Indonesia account for collectively more than 80% global coal supply. This region is also the leader in coal exports, which indicates a structural preference for supplying coal rather than importing it.
?U.S. While?U.S.
India is heavily dependent on coal and investing in alternative sources of energy.
If demand does not materialize, then large-scale infrastructure for export could be underutilized or stranded. Projects backed by the public could generate limited returns and lock in significant upfront costs.
COAL CRUX
These factors, when taken together, point out a fundamental mismatch in policy ambition and economic reality.
Government intervention can slow down coal's decline on the margins but it cannot change the structural forces which have made it less attractive than alternatives.
Subsidies instead risk prolonging the life of an aging infrastructure and encouraging expensive new projects that have uncertain returns. They also support export strategies which are unlikely to be sustained over time.
What appears politically appealing in the short-term could prove to be economically counterproductive.
These are the opinions of the columnist, an author for.
You like this column? 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 7 days a weeks.
(source: Reuters)