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Maersk boosts profit outlook as container demand defies trade fears
Shipping group A.P. Moller-Maersk raised its profit forecast for the full year on Thursday as global demand showed resilience in spite of concerns about trade wars. Maersk, considered a barometer for world trade, has said that it expects container volumes in the global market to increase between 2% and 4 %, as opposed to a range from a 1% growth up or down. Estimated in May Maersk's second-quarter earnings report stated that a contraction in U.S. exports was "more than offset" by a strong increase in imports to other regions including Europe. Vincent Clerc, CEO, said that despite market volatility and historic uncertainty in global trade the demand for our products remained strong. We responded with speed and flexibility. Maersk expects to earn between $8 billion and 9.5 billion dollars in underlying earnings this year, up from its previous guidance between $6 billion and 9 billion. Maersk's EBITDA grew 7% on an annual basis in the second quarter, to $2.3 billion. Analysts had expected $1.98 billion. Analysts in a poll conducted by the company had predicted $12.61 billion. Sales between April and Juni increased 3% on an annual basis to $13.1 billion. Reporting by Jacob GronholtPedersen; editing by Terje Solsvik
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High electricity costs are a harsh reality for Britain's AI dreams: Bousso
NESO report: Data centre energy consumption to triple by 2035 The cost challenge of nuclear and offshore wind investment is highlighted The UK has the highest wholesale electricity prices of all developed economies Ron Bousso LONDON, 7th August - Britain's ambitions to boost its economy and tap into the AI revolution face the harsh reality of the fact that the abundance, clean, and reliable electricity supply required to achieve this is unlikely to be realized any time soon. The Prime Minister Keir starmer has laid out a number of major industrial policies to revive Britain's stagnant economy. This includes pouring money into the artificial-intelligence industry which, according to the government, would increase productivity and generate over $50 billion in gains each year. The data centres that run AI are highly energy-intensive and often require a separate source of power to operate. According to grid operator NESO the UK's electricity demand is expected to increase from 319 terawatt-hours in 2024 up to 450 TWh by 2035. Data centres are expected to triple their power consumption during this period. The government's plans to modernise and expand the country's aging power system through low-carbon sources of energy could paradoxically complicate this effort by increasing Britain's already high energy costs. EXPENSIVE PLANS UK power prices are the highest in any developed country. Wholesale electricity prices increased by 40% from a year ago to $115 per megawatt-hour on average, according to International Energy Agency. This was mainly due to an increase in gas-fired generation during cold weather conditions and a reduction of wind output. This compares to average prices of $100/MWh in Germany and France, as well as $48/MWh in the United States. The British government wants to lower energy prices through a combination of measures, including reducing the grid's dependence on natural gas, increasing renewable power generation and battery storage, improving transmission infrastructure, and connecting grids with neighboring countries. These upfront investments, however, will initially increase the cost of electricity for consumers. Off-Course Offshore wind represents the flagship of Britain’s renewable energy policy. The government aims for offshore wind capacity to increase to 43-50 gigawatts (GW) by the end decade from the current 15 GW. Despite rising construction and finance costs, the government increased the maximum guaranteed price for offshore wind projects or the strike price in the auction this year by 11% compared to the previous round. This was a follow-up to a 66% increase in the last auction. The actual strike price of the contract for difference auction, which starts in this month, could be lower than government ceiling. Cost increases forced Danish developer Orsted to halt the development of its 2.4 GW Hornsea 4 off-shore wind project in May. Nuclear energy is a low-carbon alternative that the UK is also exploring. The UK government announced on 22 July that it had secured investment to develop the Sizewell nuclear plant, Britain's 2nd new nuclear plant within a decade. It is expected to become operational by 2030. Nuclear energy is a reliable source of low-carbon, steady energy. The current sizewell development costs of 51 billion pounds (38 billion pounds) are nearly twice the original estimate from earlier in the decade. This is due to inflation and increased material costs. Cost overruns in nuclear projects are not uncommon. The focus on offshore wind and nukes could increase the cost of electricity, reducing British industry's competitiveness and decreasing support for energy transition. CHOICE OR NO CHOICE Does the government offer any other viable options? Andrew Birch is the CEO of OpenSolar. He believes that Britain needs to liberalise their power market. This would require removing subsidies, such as CfDs, and letting the market determine which energy sources can best meet consumer demands. Although the idea is a good one, given that energy is so important to Britain, both in terms of its economy and security (especially with the AI race and the energy transition), the government will not be willing to relinquish control. A second option would be to transform the UK's old, centralised electricity system into an operation based on many small batteries and generators. This would also increase the grid's efficiency. It would cost billions in advance costs. All infrastructure and investment could be assessed by general taxation, rather than through energy bills. This would reduce sticker shock for consumers each month. This option is unlikely be to gain much political support because voters dislike higher taxes as much as they hate high energy prices. This leaves the possibility of increased private-public partnerships or government-financed investments. To avoid a sustained backlash, the latter would have to be clearly communicated to markets. If properly planned, UK investments in renewables, nuclear power, batteries, and transmission could pay off. However, given the many challenges, it is unlikely that the benefits will be felt for another decade. This spells trouble for Britain’s ambitious AI plans. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. 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New York Times Business News - August 7, 2018
These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. The new tariffs imposed by U.S. president Donald Trump on more than ninety countries went into effect at midnight Thursday. This accelerated a global economic war which is already affecting the U.S. United Airlines has resumed its operations after a nationwide system failure that grounded all flights on Wednesday. The Federal Aviation Administration warned of possible delays while the airline recovers. Trump increased the tariffs on Indian exports by 25%, bringing them to 50%. This was a punishment for India continuing to buy Russian oil. Trump and Apple CEO Tim Cook announced a $100 billion investment in Apple's U.S. Advanced Manufacturing and Supply Chain, with the goal of increasing domestic sourcing and avoiding threatened iPhone tariffs.
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Maguire: US energy exporters are likely to be disappointed by any US-Indian trade deal.
Many people see the new 25% tariffs on Indian goods imposed by U.S. president Donald Trump as a negotiation tactic to force India into buying more U.S. goods and energy in the future. India's energy importers have less flexibility than it may seem, despite the fact that India's economy is growing fast and ranks fifth in the world. India is limited in its ability to buy large quantities of U.S. coal, oil, LNG and refined products due to tight corporate margins, cost sensitive consumer markets, long-term import agreements and a slowing economy. India is located at the base Asia, so it's much closer to other energy exporters. However, it is not as close to the United States. This would result in higher shipping costs for India if it switched to U.S. origin products. The upcoming trade talks will no doubt be used to entice some Indian companies into making major U.S. investments and purchases, which could boost the mood in Washington D.C. The Indian market is unlikely to provide the massive and binding commitments of purchase that U.S. oil, gas, and coal exporters are looking for. TOUGH SPOT India's import requirements are not the only thing that it has to be concerned about. According to data from the International Monetary Fund, India's biggest export market is the United States. It accounted for almost 20% of Indian exports over the past few years. India's exports in 2024 to the United States will be just over $80 Billion, and its imports of the U.S. will total just under $45 Billion. It will be difficult for India to replace the lost U.S. customers with other buyers, as the U.S. market is twice the size of the United Arab Emirates, India's second largest export market. This means that the trade negotiators are committed to repairing trade ties as quickly as they can, and they will look at all possible ways of reducing trade imbalances. CRUDE CUT-PRICE India's rapid increase in its purchases of Russian crude since mid-2022 was a major concern for the U.S., Europe and other countries. It also became a focus during recent trade negotiations. Kpler data shows that the average monthly crude oil flow from Russia to India has jumped from 3.2 million barrels per month between 2018-2021 to 50 millions barrels per month since mid-2022. The more than 15-fold increase in Russian oil purchased by India has provided Moscow with vital import earnings as it deals with the fallout of its war in Ukraine and has seriously undermined efforts to reduce funding to Moscow. India's refusal of joining Western-led sanctions was a source of anger for the international community. However, India's willingness to increase imports from Russia ensured that refiners in India and their fuel consumers would be protected from any global oil price rise. In fact, it was the reverse as Indian importers managed to get steep discounts from Russian oil suppliers who were desperate for sales. These cheap barrels imported from Russia allowed refiners like Reliance, a major Indian company, to increase their supplies and drive the economic growth of India since 2020. Indian officials have said that they are only acting for their own benefit when it comes to the new tariffs, as the country has not acted in the best interests of its 1.4 billion people. Any aggressive shift away from cheaper Russian crude to more expensive U.S. oil would have a drastic impact on the Indian economy and would likely lead to an increase in fuel prices, which would be harmful for Indian consumers and refiners. Data from LSEG show that since 2022 the official price of the main grade Russian oil imported by India has averaged $70 a barrel, which is about $10 less than the main U.S. Crude for export during the same period. The real discount is probably greater than the U.S. price, as Indian importers are likely to have secured their Russian oil at lower prices. This means that Indian refiners will not be able to switch to U.S. Crude anytime soon, even under pressure. LONG SHOTS OF COAL & LNG U.S. negotiators have cited liquefied gas as a way to reduce trade gaps. A single LNG cargo costs several million dollars. Indian importers of energy products have less room to change the current U.S. suppliers. Indian gas importers have already signed long-term contracts with suppliers like Qatar and United Arab Emirates and are subject to stiff penalties if they break the contract. Even if Indian buyers were willing to cancel those deals and buy from the U.S., they could face an increase in shipping costs which would make the overall cost of cargo uneconomical. It takes around 30 days for an LNG tanker to travel from the U.S.A. to India, six times as long as the trip from Qatar. The U.S. coal industry will face similar challenges in removing Indonesia from India's coal pipeline. The shipping time from Indonesia to India is approximately 11 days. This compares to the 27-day trip on the East Coast of the United States. India's trade negotiators will have to look for other ways to reach a deal with the U.S. due to the gap between journey times and shipping prices. These are the opinions of a columnist who writes 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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SBM Offshore raises its 2025 outlook following strong half-year results
SBM Offshore, a Dutch oil and gas service company, raised its core profit and revenue estimates for the full year on Thursday following a strong performance in 2025's first half. The company that provides floating production services for the offshore energy sector expects to earn before interest, tax, depreciation, and amortization of about $1.6 billion in this year. This is $50 million more than its original guidance. The company also expects to generate a revenue direction of over $5 billion after predicting that it would surpass $4.9 billion by February. According to a consensus compiled by the company, analysts had on average projected revenue for the year of $4.96 Billion. In a press statement, CEO Oivind Tanen stated that the improvement in the first-half result and the increase in the outlook were due to the strong execution and commissioning of the two major floating production storage and offloading (FPSO) vessels in Brazil. The Amsterdam-listed firm reported a half-year EBITDA directional of $682 millions, an increase of 10% over the same period last year, and beating analyst's consensus of $673million. Tangen stated that the deepwater oil market is expected to remain robust due to the need for low-cost and emission-free production. SBM Offshore is a deepwater operator, which means that the production costs per barrel in this segment are lower than those in other offshore regions. This helps protect the company from volatility in oil prices, making its business more resilient to market fluctuations. In the first half, the group's directional revenues grew by 26%, to $2.31 Billion dollars. This was higher than analysts' expectations of $2.29 Billion. The turnkey segment - which builds and sells FPSOs - grew revenues by twofold in the first six months. SBM Offshore uses direction reporting to recognise revenue received from payments during construction phases, before lease contracts are activated. Reporting by Anna Peverieri, Gdansk; editing by Milla Nissi-Prussak
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Wall Street Journal, August 7,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. - Activist investor Starboard Value has a more than 9% stake in Rogers Corp and plans to seek another round of changes at the engineering-materials maker to boost shares. Disney's ESPN, TKO Group and World Wrestling Entertainment reached an agreement worth more than $1.6 Billion that gives the sports-media firm exclusive rights to WWE's highest-profile events. Apple and other electronics companies worried about trade issues will be happy to hear that U.S. president Donald Trump has announced that he will impose tariffs of approximately 100% on all chips entering the U.S. United Airlines began taking off flights again late on Wednesday evening, just a few short hours after the carrier halted departures due to a technology problem that affected all of its systems. The Federal Trade Commission (FTC) has blocked Edwards Lifesciences from acquiring medical device company JenaValve Technology. Microsoft recruits top talent from Google DeepMind to create a startup culture, and offer lucrative incentives.
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Indian helicopters rescue people trapped by floods in Himalayan State
Indian rescuers used a helicopter on Thursday to lift people to safety who were stranded in flood waters in Uttarakhand in the Himalayan State. This was nearly two days after an unexpected inundation of landslides and sudden flooding killed four and left dozens missing. Rescue teams were unable to reach the tourist destination of Dharali, in Uttarkashi district, in Uttar Pradesh, after a wall flooded the area and submerged homes and cars. Pushkar Singh Dhami said that the helicopter rescuers received the instructions they needed to ensure an effective operation. In a message on X, he said that "the heli-rescue operations... began in the affected area this morning." In images from the area, army rescuers used both their hands and machinery to move boulders off roads that had become muddy rivers. Officials from the state and army said that about 200 people were rescued on Tuesday and Wednesday. However, many more are still missing and stranded. Dharali is a small hamlet with 200 residents that sits 1,150m above sea level. It's a stopover for Hindu pilgrims who are climbing up to Gangotri. Anamika Mehra was on her way to Gangotri at the time of the floods and said, "We saw Dharali fall before our eyes." She told ANI that she was "very scared" but locals rescued her and the army arrived the next day. Climate change is blamed by some experts for the frequent floods and landslides that occur in Uttarakhand. (Reporting and writing by Saurabh Singh; Editing and editing by Clarence Fernandez).
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United Airlines cancels flights in US airports due to technology issue
United Airlines grounded all flights in U.S. airports due to a technical issue on Wednesday and warned that there would be more delays later in the evening. The airline stated that "due to a technological issue, we will be holding United mainline flight at their departure airports." United's weight calculation system has failed, according to a source with knowledge of the issue. Federal Aviation Administration of the United States announced earlier that it had issued a ground-stop for United flights in several U.S. Airports. As of 9:15 pm. FlightAware data showed that, as of 9:15 p.m. ET (0115 GMT Thursday), 824 flights, or 27 percent, were delayed on Wednesday. Reporting by Kanishka Singh, Jasper Ward and Shivani Tanna from Washington; editing by Sandra Maler and Jamie Freed.
Airlines suspend flights as Middle East stress increase
Concerns over a broader dispute in the Middle East have triggered international airlines to suspend flights to the region or to prevent afflicted air space.
Below are some of the airlines that have actually changed services to and from the region:
AEGEAN AIRLINES The Greek airline company cancelled flights to and from Beirut until Oct. 31 and to and from Tel Aviv up until Oct. 6.
AIR ALGERIE The Algerian airline company suspended flights to and from Lebanon until further notice.
AIRBALTIC. Latvia's airBaltic cancelled flights to and from Tel Aviv up until. Oct. 31.
AIR EUROPA. The Spanish airline cancelled flights to Tel Aviv until Oct. 2.
AIR FRANCE-KLM. Air France on Sept. 30 suspended Paris-Tel Aviv and Paris-Beirut. flights until Oct. 8. KLM has cancelled all flights to and from Tel Aviv till Oct. 26. The Franco-Dutch group's affordable unit Transavia cancelled. flights to and from Tel Aviv up until March 31, 2025, and flights. to Amman and Beirut up until Nov. 3.
AIR INDIA. The Indian flag provider suspended flights to and from Tel Aviv. till further notice.
BULGARIA AIR. The Bulgarian carrier cancelled flights to and from Israel up until. Oct. 15.
CATHAY PACIFIC. Hong Kong-based Cathay Pacific cancelled all flights to Tel Aviv. until March 27, 2025.
DELTA AIR LINES. The U.S. provider stopped briefly flights between New York and Tel Aviv. through Dec. 31.
EASYJET
The UK spending plan airline stopped flying to and from Tel Aviv in. April and will resume flights on March 30, 2025, a spokesperson. stated.
EMIRATES. UAE's state-owned airline company cancelled flights in between Dubai and. Beirut till Oct. 8.
FLYDUBAI. The Emirati airline on Sept. 30 cancelled Dubai-Beirut flights. up until Oct. 7.
IAG
IAG-owned British Airways cancelled flights to and from Tel . Aviv through Oct. 7, the airline company said in an e-mailed remark.
Spanish inexpensive carrier Vueling cancelled operations to Tel . Aviv until Jan. 12, 2025, while flights to Amman were cancelled. until more notification.
IRAN AIR. The Iranian airline cancelled all flights to Beirut till. further see, a company representative told regional media consisting of. the Tasnim news agency on Sept. 28.
IRAQI AIRWAYS. The Iraqi nationwide carrier suspended flights to and from Beirut. up until further notification, Iraq's transportation ministry stated on. Sept. 27.
ITA AIRWAYS. Italy's ITA Airways extended the suspension of Tel Aviv flights. through Oct. 31.
LOT
The Polish flag provider suspended flights to Lebanon until. further observe, it said in an emailed talk about Sept. 20.
LUFTHANSA GROUP. The German airline group, that includes Lufthansa, SWISS,. Austrian Airline Companies, Brussels Airlines and Eurowings, on Oct. 1. extended the suspension of flights to and from Tel Aviv until. Oct. 31 and Beirut up until Nov. 30. Flights to Tehran are. suspended till Oct. 14 for the group and until Oct. 26 for the. Lufthansa airline.
SunExpress, a joint endeavor between Lufthansa and Turkish. Airline companies, has actually suspended flights to Beirut through. Dec. 17.
PEGASUS
The Turkish airline company cancelled flights to Beirut till Oct. 7, a business representative stated.
RYANAIR. Europe's most significant budget airline company cancelled flights to and from. Tel Aviv till Oct. 26, pointing out functional limitations.
QATAR AIRWAYS. The Qatari airline temporarily suspended flights to and from. Beirut until additional notification.
SUNDAIR. The German airline company cancelled Berlin-Beirut and Bremen-Beirut. flights until Oct. 31.
UNITED AIRLINES. The Chicago-based airline suspended flights to Tel Aviv for the. foreseeable future due to security reasons.
VIRGIN ATLANTIC
The UK airline extended the pause of its flights to and from. Tel Aviv till completion of March 2025, a spokesperson said in an. e-mailed remark.
LEBANESE AIRSPACE SIGNALS
Britain recommended UK airline companies not to get in Lebanese airspace. from Aug. 8 until Nov. 4 citing prospective threat to aviation from. military activity.
(source: Reuters)