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Maguire: Energy transition to divide manufacturers on both sides of the Atlantic
In the coming decades, manufacturers in North America and Europe will embark on radically different paths with regard to power sources. This could have a profound impact on the future of goods producers both on the east and west coasts. Natural gas will remain the primary power source in North America thanks to the vast gas deposits found across the region. By the mid-century, a European push to reduce reliance on fossil fuel imports will see most factories run on electricity. Diverging power paths have their own risks and benefits, and can impact on the competitiveness and efficiency of businesses. Two of the largest economies in the world are building very different energy bases for the producers of finished goods, components and other products and the jobs that they create. GEOLOGIC LOGIC The geology of both regions is a key factor in determining the choice between gas and electric power systems. According to the Energy Institute, North America and Europe both rely heavily on natural gas as a source of energy. Gas will account for 36% in North America, and 24% in Europe, by 2024. North America, however, is the largest natural gas exporter in the world, mostly in the form liquefied gas. Europe is heavily dependent on foreign nations to supply its gas. Europe's heavy dependence on imports was known for decades. However, it only became a major problem after the Russian invasion of Ukraine 2022. This led to sharp reductions in gas flow in the months that followed. Price Pain The fallout of Russia's invasion in Ukraine sent ripples through Europe's economy. The prices of electricity and natural gases rose at different rates, which in turn has helped to drive energy policy decisions since. According to Open Energy Tracker, electricity prices in Germany -- Europe's biggest economy and the former top importer Russian gas -- have averaged 50% higher than the 2010-2020 average. The rise in electricity prices has caused a dramatic increase in the cost of power for households and businesses, as well as a reduction in overall energy consumption and statewide efforts to improve energy efficiency. According to LSEG, however, the increase in electricity prices has been dwarfed in comparison to the regional natural gas price increases, which have averaged more than 90% higher in 2025 than the average from 2010 to 2020. The outsized increase in regional gas prices compared to electricity has cemented the support for Europe's electrification effort, even though electricity remains far above average. In recent years, the average price of electricity in the United States has risen much faster than the national natural gas price, which has led to a growing demand for gas to remain the main power source. The U.S. Energy Information Administration reports that the average electricity price in the United States is around 40% higher than the average from 2010 to 2020. Natural gas prices in the U.S. are about 12% higher than the average for 2010 to2020. MANUFACTURING A CHANGE According to DNV consultants, the diverging price trends of gas and electricity are expected to accelerate electrification among manufacturers in Europe. However, the dependence on gas for power will continue in North America. While European and North American manufacturers consumed nearly the same amount electricity in 2024, around 3,800 petajoules, by 2050 European manufacturers were using almost 30% more electricity than North American counterparts. By 2050, the share of manufacturers who are powered by electricity will also change significantly. Electricity will be the primary energy source for approximately 33% of European manufacturers and 27% of North American producers by 2025. By 2050, it is expected that 48% of European manufacturing will be electrified. This compares to 34% in North America. As a result of the increased electricity consumption by European manufacturers, natural gas usage by factories on the continent will drop sharply. Around 28% of European manufacturer's are currently powered by gas. However, only 11% will be by 2050. Gas-powered vehicles are expected to remain the same in North America through 2050. FALLOUT The projected shifts in energy sources pose a risk to manufacturers on both sides of the Atlantic. The projected growth in LNG exports in North America could lead to increased competition among power generators, industrial users and gas suppliers, which would result in higher gas prices for businesses. At the same, a greater deployment of renewable energy, nuclear reactors, and other power supplies could serve to lower electricity costs and give manufacturers who use electricity a competitive advantage. The increasing dependence on regional electricity markets in Europe will expose manufacturers to price volatility and possible outages, particularly in areas with old networks. All European electricity users will likely face years of rate increases due to the extensive grid upgrades required to allow further gas reductions. This will reduce manufacturer margins. It may not be the manufacturers who decide whether Europe's drive for electrification or North America's promotion of gas is the best strategy. Due to the low shipping costs between the two regions higher-cost competitors will be undercut by cheaper overseas rivals who make similar products. Most consumers will choose the cheaper version of similar products, no matter what power source was used in its production. 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 information. 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Egypt increases domestic fuel prices for the second time in this year
The official gazette of Egypt announced that Egypt increased prices on a variety of fuel products Friday. This is the second price increase in this year. It's part the government's policy to reduce subsidies and alleviate a budgetary deficit. After a nearly 10% increase, the price of a variety of petroleum products has increased by 10.5% to 12.9%. Get 15% off in April . Egypt said recently that it hoped this would be the final major increase in fuel prices if global markets remain stable. Diesel, the most widely used fuel in Egypt, was raised from 15.50 Egyptian pounds to 17.50 Egyptian pounds. The International Monetary Fund stated in March that Egypt was committed to reducing its energy subsidies, and bringing the domestic prices to actual costs by December. This is part of efforts to reduce an enormous current account deficit. The government has said that it will continue to subsidise the diesel fuel, even if this means raising prices for other fuels to cover the subsidy. IMF loan of $8 billion has forced the government to reduce fuel, food and electricity subsidies. Egypt's current accounts grew by 12% in the second quarter. The deficit was $2.2 billion According to the central bank, imports of oil-based products have risen to $500 million, up from $400 million just a year ago. Gasoline prices rose by up to 12.9% depending on the grade. For example, 80 octane gas increased to 17.75 pounds, 92 octane to 19.25 pounds, and 95 octane to 21 pounds.
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BHP's China Jimblebar ore stocks are rising as trade talks stall amid contract negotiations, say sources.
Sources said that stocks of BHP's iron ore have piled up in major Chinese ports at the highest level in three months. Trade has stalled because the miner is still in negotiations with China's government-run buyer to secure a new contract. Sources claim that China Mineral Resources Group (CMRG), a subsidiary of BHP, told steel mills last month to stop buying BHP's Jimblebar Fines. Two sources said that inventories of Jimblebar Fines in some Chinese ports had risen to around 2.6 millions metric tons by October 14. This was the highest level seen since July. They also added that the stock-building pace increased from late September. According to one source, the number of Jimblebar Fines in stock at the Caofeidian Port, located in North China, which is among China's busiest ports for the handling of this key steelmaking component, has increased by 26% since the end of September to 800,000 tonnes as of October 13. CMRG has not responded to an 'emailed request for comments. Due to the sensitive nature of the issue, all sources requested anonymity. Jimblebar fines is a medium-grade cargo used by mills to produce sinter ore, which in turn is processed into hot metals for crude steel. BHP is the owner and operator of the Jimblebar Mine in Western Australia. Two sources claim that some mills cannot take delivery of Jimblebar Fines cargoes they have purchased earlier and which were offloaded in Chinese ports. CMRG, which was established in 2022, aims to centralise the purchasing of iron ore in the largest steel-making consumer in the world and negotiate better terms with miners. Two sources confirmed that CMRG is still negotiating with BHP on their contract for 2026. BHP's spokesperson responded to an inquiry by email: "We are currently in commercial negotiations...we do not know of a BHP-wide product ban." The spokesperson said, "Overall demand has been healthy for iron ore due to strong steel production. We continue to enjoy strong relationships with customers in China." Jimblebar fines' temporary shortage has not yet supported prices, as other products like Rio Tinto’s flagship Pilbara product could substitute the cargo and its trading volume was relatively small. The price of iron ore has fallen by almost 2% this month, mainly due to concerns about the prospects for a growing supply and a falling demand. (Reporting and editing by Florence Tan, Muralikumar Aantharaman and Melanie Burton; Additional reporting in Melbourne by Melanie Burton)
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Hackers hack into airport systems in Canada and the US to criticize Trump, praise Hamas
According to news reports and officials, hackers took control of the public address system at four airports on Tuesday, three in Canada, and one in the United States. They broadcast messages that praised Hamas and criticized President Donald Trump. According to the Kelowna Royal Canadian Mounted Police, an "advertising streaming service" was compromised at the Kelowna Airport International in British Columbia. Unauthorized content was shared. The RCMP declined to give further details and said that it is working with other agencies on the investigation. According to a spokesperson for the airport, hackers broadcast messages and music in a foreign tongue over the PA system of Victoria International Airport (British Columbia). A spokesperson for the airport said that hackers had accessed the PA system through third-party software. The airport then switched to an in-house system to regain full control. The Canadian Centre for Cyber Security has assisted the RCMP and the airport with their investigation. In a Wednesday social media post, U.S. Transportation Sec. Sean Duffy revealed that hackers also took over the PA system of Harrisburg International Airport. He said that the U.S. Federal Aviation Administration (FAA) and airport officials were investigating this breach. The FAA didn't immediately respond to our request for comment. Hackers also breached flight information screens and the public address system at Windsor International Airport, Ontario on Tuesday evening. They displayed "unauthorized announcements and images," according to officials. According to a statement from the airport, the breach involved a "cloud software provider" that the airport uses. "Our systems returned to normal soon after," the airport said. These four airports are feeder airports. The busiest airport, Kelowna served just under 2 million passengers in 2024. This compares to more than 25 millions travelers that passed through Vancouver International Airport, British Columbia's biggest airport. (Reporting from Seattle by Dan Catchpole; editing by Sonali Paul.)
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New York approves power lines for Micron's $100 Billion Semiconductor Plant
On Thursday, Governor Kathy Hochul said that the New York State Public Service Commission had approved a new underground transmission line linking an existing Clay Substation to Micron Technology's proposed megafabrication facility in Onondaga County. Hochul's release stated that the two-mile 345-kilovolt cable is an important piece of infrastructure in Micron's $100 billion investment planned in Central New York. This investment will be the largest private investment ever made in the history of the state. Micron expects to create 9,000 jobs directly through the project over the next 20 years. Hochul stated that the project will transform Central New York. "We are moving forward quickly with all due speed, deliberation and speed," Hochul added. The approval of the transmission line follows an agreement signed in 2022 between Micron, the chipmaker and New York State when Micron selected the area for its advanced manufacturing facilities. The megafab is expected to produce up to one-fourth of all U.S. semiconductors by 2030. The commission also approved the environmental and construction plans of the first phase of project, which includes the eastern expansion and installation of equipment connecting the Micron facility to the Clay substation.
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CSX exceeds its quarterly forecasts on the basis of higher intermodal volumes and merchandise pricing
CSX's third-quarter revenue and profit were above Wall Street expectations on Thursday, as improved intermodal volumes and increased pricing in merchandise offset the impact of lower coal prices. The railroad operator saw its shares rise 3% after the announcement. The East Coast Railroad Company has been hampered by the weakness of the coal market due to the lower demand for energy as consumers switch to natural gas. In a recent earnings call, COO Mike Cory stated that "our domestic coal business continues with steady trends throughout the year." After President Donald Trump signed an executive order earlier this month to increase coal production and benefit railroad operators, the demand for coal is expected rise. LSEG data show that CSX's adjusted per-share profit was 44 cents. This is higher than the average analyst estimate of 42 cents. The company's revenue for the quarter ending September 30 was $3.59 billion, slightly higher than analysts' estimates of $3.58. CSX reported that the quarterly revenue fell 1% over the previous year, primarily due to lower export coal prices, a decrease in merchandise volume, and higher merchandise pricing. These factors were partly offset by an increase in other revenues and a growth in intermodal volumes. The quarter-over-quarter decline in coal revenue was 11%, despite a 3% decrease in total volume. The Jacksonville-based company, which forecasts fiscal year 2025 capital expenditures of $2.5 billion excluding hurricane reconstruction spending, has set a target for the amount. CSX drafted interline and Intermodal earlier this year. Service agreements BNSF Railway & Canadian National Railway Peer Union Pacific announced that it would be acquiring rival Norfolk Southern in July. $85.9 billion deal. If approved, the tie-up could create the first coast to coast single-line freight rail network in the United States. (Reporting and editing by AnshumanTripathy in Bengaluru, AatreyeeDasgupta from Bengaluru)
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Spirit Airlines will lay off another 365 pilots as part of restructuring
Spirit Airlines announced on Thursday that it would lay off 365 pilots, and reduce the status of 170 others in the first quarter 2026. This is part of the company's restructuring efforts. Spirit Airlines, the ultra-low cost airline that filed for bankruptcy in August for the second consecutive year, said it would reduce its network by 2026 in order to achieve profitability in 2027. The company stated that as part of its ongoing restructuring it is taking further steps to align the staffing within our organization with previously announced capacity reductions and smaller operating fleet sizes. Spirit Airlines is planning to reduce its fleet by almost half. 100 aircraf It will not accept its commitment Buy 52 Airbus Planes with 10 other options. The company also said that it plans to adjust its staffing levels based on volume across all of its maintenance stations. It will close the maintenance stations in Baltimore and Chicago, as well as its warehouse operations. This closure is set to take place from January 1, 2026. The company previously furloughed 330 pilots, and plans to furlough 270 more pilots in November. The company has also decided that it will furlough 1,800 flight attendants - about one third of its cabin staff - effective December 1. Spirit stated in a filing in which it said that furloughs will save the company an estimated $211 million. Reporting by Rajesh Singh in Chicago, and Doyinsola Oladipo in New York. Editing by Diane Craft and Deepington Babington.
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Wall Street is over; Zions raises concerns about regional banks
Wall Street fell on Thursday as signs of weakness among regional banks frightened investors who were already on edge due to the U.S. - China trade tensions. Zions Bancorporation shares fell after the regional lender disclosed an unexpected loss in two loans made to its California division. This added to investor anxiety about hidden credit pressure as lenders navigate economic uncertainty while interest rates are still relatively high. Western Alliance's slump also fueled concerns about regional banks after it announced it had initiated a lawsuit for fraud against one of their borrowers. Investors were watching the S&P 500, which recently reached record highs. They also watched for developments between Washington DC and Beijing following their trade war that escalated last Thursday. U.S. president Donald Trump has announced that he will impose 100% tariffs against China on November 1. He also promised other trade measures to punish the second largest economy in the world after China imposed restrictions on rare earth mineral exports. Tom Hainlin is an investment strategist with U.S. Bank Wealth Management, Minneapolis. TSMC, world's leading manufacturer of advanced semiconductors and a strong advocate for artificial intelligence, has a positive outlook on spending. Even so, AI-related heavyweights like Tesla, Meta Platforms, and Palantir lost ground. Salesforce's shares soared after it forecast revenue of over $60 billion by 2030, which was above Wall Street expectations. Wall Street has reached record highs in this year due to optimism about AI and the expectation of interest rate reductions by the U.S. According to LSEG, the S&P 500 is up 12% in 2025 and valued at a high 23 times expected earnings. This is a five-year record. The robust earnings of major U.S. Banks this week provided fresh signs of economic strength at a moment when official macroeconomic data is still delayed because the government shutdown continues. According to LSEG, analysts expect S&P500 aggregate earnings to increase 9.2% during the third quarter. This compares with an expected 8.8% growth two weeks earlier. After Travelers Companies reported quarterly revenue that was below expectations, the S&P 500 Insurance Index fell sharply. Marsh & McLennan, an insurer, reported flat operating margins as well as a slowing of growth in the risk and insurance businesses. Its stock price also dropped. The preliminary data shows that the S&P 500 fell 42.10 points or 0.63% to 6,628.96, and the Nasdaq Composite dropped 105.77 or 0.47% to 22,564.31. The Dow Jones Industrial Average dropped 298.48, or 0.65% to 45,954.83. The Philadelphia Fed Business Index fell 12.8 points in October, while economists polled estimated an increase of 8.5. Fed Governor Christopher Waller stated that he supports an additional rate cut in October, due to mixed readings about the state of job market. Hewlett Packard Enterprise fell after the company's annual revenue and profit forecasts were below Wall Street expectations. J.B. Hunt's shares soared after it reported its third-quarter profit.
The future of Serbia's oil supply is unclear as US sanctions loom
Sources told AFP that Serbia has enough crude oil and fuel to meet its demand for the near future, but the U.S. Sanctions set to take effect on October 1, cast a cloud over the nation's energy security in the long term.
The Russian-owned NIS oil company said it had sufficient crude and fuel stock after Serbian president Aleksandar Vucic announced that the U.S. wouldn't extend a waiver of sanctions originally announced in January.
NIS has not disclosed inventory levels or the length of time supplies will last. Four sources with knowledge of the situation said that the refinery can operate for up to two months, and still provide enough refined products to meet demand.
Gazprom, a Russian company, owns 44.9% of NIS. A Gazprom investment unit has 11.3% and the Serbian Government 29.9%.
Uncertainty about long-term energy security
NIS is Serbia's sole oil refinery, and it supplies around 80% or more of the country's gasoline and diesel, as well as 90% of its jet fuel and heavy oil demand.
The U.S. announced sanctions against Russia's oil industry on January 10, but they had been repeatedly delayed.
Foreign banks could stop dealing with NIS once they become enforced. This would leave domestic banks without the necessary capacity.
According to a Serbian fuel industry insider who requested anonymity, "Authorities must immediately ensure NIS access to domestic financial market and then, within the next two months, do whatever is necessary to keep Pancevo refinery operating."
There is no other alternative to the refinery for the market supply.
NIS is owned by Russia's Gazprom, Gazprom Neft and Gazprom.
In an earlier report, it was reported that NIS struggled to find oil traders in other countries, and its former clients sought alternative fuel suppliers at home due to the impending sanctions.
JANAF PIPELINE AFFECT
The crude oil for NIS' Pancevo refinery, which has a capacity of 4.8 million tons/year, is transported via Croatia's JANAF pipe.
JANAF confirmed Friday that it will have to stop supplying NIS once the sanctions come into effect. However, they will ask the U.S. Office of Foreign Assets Control to extend their licence.
Vladislav Veselica is a JANAF member who said that NIS must now provide evidence for why the license should be extended.
He said that the lawyers of the company in the U.S. will file for an extension on Friday. NIS represents more than 30% JANAF revenue. Reporting by Ivana Skularac, Robert Harvey and Edward McAllister Editing by Gareth Jones and Edward McAllister
(source: Reuters)