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Texas grid warns of risks when data centers and crypto sites fail voltage testing
According to the Texas grid operator, several large data centers and crypto-facilities planning to connect to the Texas power grid ahead of summer peak demand failed to pass 'key reliability tests. This increases the risk of power failures just as electricity usage reaches its seasonal high. Data centers are causing power grids to be stressed across the United States. Data centers, unlike traditional industrial customers who tend to draw electricity steadily, are designed to disconnect from the grid as soon as there is a problem to protect equipment and maintain services. This makes them a potentially unstable and unpredictable force on grids that are already under pressure due to rising demand. The Electric Reliability Council of Texas, in a report dated 21 May, said that four groups of large electricity consumers, including data centers, were abruptly disconnected during a test of their ability to handle voltage disturbances. It can cause wider outages when large customers suddenly reduce their electricity use. ERCOT, which manages electricity in most of Texas said that it had reviewed approximately 20 gigawatts from large customers who wanted to connect to its system. This included eight projects, totaling about 3.9 gigawatts, which were aiming to begin before July 1. The company said that it had identified four large groups of power users who could trigger a demand trip of more than 5,000 Megawatts under certain fault conditions. These abrupt drops in demand were equal to the electricity consumed by a large city like Boston. ERCOT is currently reviewing test failures to develop plans for protecting the grid against?disruptions. ERCOT has made voltage ride-through failures a priority, as they are a growing risk with more data centers and crypto miners connected to the grid. ERCOT has recorded at least 26 instances since 2023 where data centers and crypto mining facilities were abruptly disconnected from the grid due to their inability to handle disruptions in electricity flow. A failed transformer in a west Texas substation caused 400 crypto-miners, oil and gas production and data centers to be unplugged without warning. According to ERCOT, the mass disconnection caused a surplus of nearly 1,700 megawatts, or 5% of total grid demand. It also forced 112 Megawatts to be shut down. ERCOT has tightened interconnection requirements and performance standards, and new rules have been introduced to ensure that such facilities are able to ride through voltage and frequencies disturbances without being disconnected. (Tim McLaughlin in Boston; Editing by Sanjeev Miglani)
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Finland suspects four persons in breach of subsea cables
The Finnish police, who are investigating the damage done to two subsea cables in the Baltic Sea last year, said that four people were suspected of a crime. Prosecutors will decide whether or not charges should be brought. Finland has seized a cargo ship, Fitburg, on December 31, 'while it was en route to Israel from Russia. They suspected that the cables from Helsinki to Estonia across the Gulf of Finland had been damaged. This is one of many incidents of this nature in recent years. The police?on Saturday said that they had investigated suspected aggravated crimes, attempted aggravated crimes, and aggravated interferences with telecommunications. They were referring the case to prosecutors in order to determine if any charges should be filed. The police said in a press release that the investigation had concluded with four suspects. Three of them remain under a travel restriction. After a series of power outages, telecommunications failures, and gas pipeline disruptions since Russia invaded Ukraine in 2022, the Baltic Sea region has been on high alert. NATO has increased its military presence by adding aircraft, frigates, and naval drones. (Reporting and editing by Terje Solsvik, Essi Lehto)
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Norway opposes tariffs and rejects US claims about forced labour
Norway's foreign minister has rejected a U.S. assessment that the Nordic country?failed? to prevent forced labor, adding?that?the allegation?was unfounded?and shouldn?t be used?by President Donald Trump?to justify new tariffs. The Trump administration proposed Tuesday tariffs of up to 12.5% on imported goods from 60 countries including Norway after concluding that they failed to curb the?trade in products made with forced labor, an assertion that many U.S. trading partners rejected. In a statement issued late on Thursday, Norwegian Foreign Minister Espen Barth Eide stated that "we strongly disagree" with the U.S. authorities' assessment of Norway not doing enough to stop forced labour. The Transparency Act was the first legislation in the world to prevent forced labour from being used to supply chains. Barth Eide said that he had told the U.S. authorities about this. Experts, business groups, and some human right groups say that Trump's threat to slap new tariffs on trading partners will not do much to combat?modern slave trade -- and may even make matters worse. (Reporting and editing by Terje Solsvik, Jagoda Darlandak)
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Brokers bet on winners of various sectors as the World Cup soccer tournament kicks off
Analysts predict that the 2026 FIFA World Cup in host countries will bring billions of dollars to their economies. This will be driven by an unprecedented surge in consumption, which will boost sectors as diverse as retail, athletic wear and tourism. The tournament is set to be held from?June 11, to July 19, and will be the biggest soccer event in history. It could drive consumer spending during a period when broader demand is fragile. According to FIFA's analysis of the socioeconomic impact, which was conducted in conjunction with the World Trade Organization (WTO), the first three-nation World Cup (WC), which includes the United States, Canada, and Mexico, is expected to bolster the global GDP by approximately $41 billion. Here are the stocks and sectors that brokerages believe will benefit from this once every four years event: HOTEL OPERATORS B. Riley estimates that a total 13.1 million World Cup visitors, including both ticketed and unticketed attendees generated 21.3 million hotel room nights across all online travel platforms. Analysts say that U.S. hotel chains Marriott, Hilton, and Hyatt, as well as the online travel platforms Airbnb and Booking Holdings, as well as Expedia, are likely to benefit from this event. Marriott expects World Cup momentum to continue into the third quarter. Airbnb predicts that hosts in New York, New Jersey and Boston will earn the most money during the World Cup. Airline Tickets Goldman Sachs thinks WC could have a?net positive' effect on U.S. Airlines. Goldman stated that "June tends to be a lower season for inbound leisure travel and corporate travel, while a significant portion of the peak outbound travel season occurs after the WC has ended." The war in Iran has caused a sharp increase in the price of jet fuel, forcing U.S. airlines to raise fares, which is causing budget-conscious Americans delay or cancel their summer vacations. BEER STOCKS Jefferies estimates that more than 1 billion pints will be consumed worldwide during the holiday season. This represents a 0.3% increase in?volumes for the industry. Markets such as the U.S.A., Mexico and Brazil are expected to improve. Analysts at Jefferies said that after five years of volatile beer prices, the market should improve in 2026. The timing of the tournament is also a plus. Roughly 75% of matches will be played in the U.S. while 84% of the matches involving participating countries are in the beer-drinking-friendly time zones, the analysts added. Bernstein, Goldman and Jefferies believe that Corona beer maker Anheuser-Busch InBev will be the main beneficiary. Anheuser-Busch InBev is the official beer sponsor of the WC. Heineken, world's second largest brewer, will also benefit from the exposure it has in Latin America and Europe. US RETAIL AND 'SPORTSWEAR Goldman predicts that a surge of merchandise demand by fans will push sales up at Dick's Sporting Goods, and Academy Sports. Analysts said that sportswear brands like Adidas, Puma, and Nike could benefit from increased brand exposure and marketing during the World Cup. Goldman pointed out that Adidas, the official sponsor of match balls, has sponsorship deals with multiple teams. This allows it to gain global exposure at the event. FOOD, RESTAURANTS, AND DELIVERY Citi said that traditional?grocers like Albertsons and Kroger as well as larger retailers such Walmart and Target are likely to benefit during the World Cup from increased household spending. Tourism and group viewings are expected to support a rise in restaurant demand. This could lift McDonald's Pizzas, Domino's Pizzas, Wingstops, and Chipotles, as well as food distributors like Performance Food Group, US Foods, and Sysco. MEDIA AND DIGITAL ?PLATFORMS Deutsche Bank analysts stated that they expect the men's World Cup in 2026 to generate the largest US advertising revenues ever. Morgan Stanley estimated that the tournament would generate between $300 and $400 million in advertising revenue to Fox, the broadcaster of the English-language rights. Deutsche Bank pointed out that Comcast's?Telemundo which holds the Spanish-language broadcast rights is another potential beneficiary. Citi stated that internet companies like?Alphabet?s YouTube and Meta Platforms?s Instagram could benefit from an increase in user activity. BETTING OPERATORS The World Cup is expected to increase overall betting volumes, and Deutsche Bank expects Flutter Entertainment to outperform DraftKings. Macquarie predicted that global wagers would exceed $50 billion, or nearly $0.5 billion each match. This is compared to the 35 billion dollars for the previous tournament in 2022.
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Argentina recommends awarding the dredging contract to Jan de Nul, and local partners, despite US concerns
The Economy Ministry announced that the Argentine government had recommended awarding an important?dredging contract in Argentina to Belgian dredging firm Jan De Nul, and its local partner Servimagnus. Rep. Brian Mast, chairman of the U.S. House Foreign Affairs Committee, warned in May about the "malign influence" of China in the bid to win the major contract for Argentina. Jan De Nul, and its local partner Servimagnus, denied any Chinese ties. * The recommendation is for the concession to dredge the Parana River and maintain it, as this river carries 80%?of?the trade of the country. In a late-Thursday statement, the ministry recommended that DEME, a Belgian competitor company, be rejected. *?Jan de Nul - Servimagnus? scored 66.20 in the technical evaluation stage, compared to 42.14 points for DEME. The statement said that both firms had submitted identical tariffs and received the maximum score for the economic component. DTA Engenharia, a Brazilian company, was declared inadmissible after failing to provide the required bid-maintenance guarantees. Before a final?award, a seven-day period has been opened for formal 'challenges' to the recommendation. The ministry added: * "The awarding of the contract will end the process and bring an end to the deadlock in the construction work on the waterway." * The waterway is a 3,400-kilometer natural river transport route that runs along the Parana River and the Paraguay River. It's essential for importing soybeans to Argentina, which are used in the production of oil, meal and other products.
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UAE markets benefit despite the stalled US/Iran peace talks
The stock markets of 'the United Arab Emirates' closed higher on Friday. Dubai outperformed its regional peers despite the fading hopes of a diplomatic breakthrough between Israel and the U.S. Hezbollah, a militia backed by Iran, rejected a ceasefire on Thursday in?Lebanon and Israel announced it?wouldn't withdraw troops from the?country?undermining U.S. president Donald Trump's attempts to halt fighting?and achieve a peace?deal? with Tehran. Dubai's main index of shares rose by 0.9%, boosted by gains in the industrial and utilities sectors. Salik Company, a toll operator, increased by 1.6% while Emirates Central Cooling Systems grew 2.5%. Abu Dhabi's benchmark indices settled 0.3% higher, with the largest utility company Abu?Dhabi?National?Energy rising 6.2%. Alef Education's stock rose 1% following the?full migration to Microsoft Azure of its digital learning ecosystem with Core42's sovereign cloud capability. Brent crude was down?0.32% to $94.73 per barrel at 1232 GMT. (Reporting from Mohd. Edrees, Bengaluru. Editing by Shailesh. Kuber.)
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Pentagon: US forces board a sanctioned oil tanker in the Indian Ocean
The U.S. Indo-Pacific Command announced on Friday that U.S. forces had seized the stateless sanctioned oil tanker Davina in the Indian Ocean overnight. Washington has placed a sea blockade against Iran, while Tehran has fired at ships to stop them from?sailing? through the Strait of Hormuz and entering the Middle East Gulf. In recent months, U.S. forces intercepted "multiple commercial and petroleum tankers" in the Indian Ocean. Indo-Pacific Command posted on X that "we will continue to enforce global maritime law to?disrupt illegal networks and 'interdict vessels providing materials support to Iran wherever they operate". According to data from ship tracking, the Davina is a supertanker that can carry up to 2 million barrels of crude oil. The U.S. placed sanctions on it in October 2024 because it was involved in?oil trade with Iran. Ship tracking data on MarineTraffic showed that the vessel, also known as the Lenore was last spotted on June 5, off the southern coast of Sri Lanka. Separate shipping data revealed that the vessel's?draft indicated it was almost fully?laden with an oil cargo. (Reporting and editing by Doina chiacu and Joe Bavier; Reporting and Editing by Susan Heavey, Jonathan Saul)
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Swedish court orders that seized cargo ships can be transferred to Ukraine
A Swedish court ruled on Monday that the seizure of an unidentified cargo ship in 'the Baltic Sea' was legal and that it could be sent to Ukraine where it is suspected of transporting grain illegally from Russian-occupied territory. The Swedish coast guard and police seized the Caffa in March off the southern Swedish coast, claiming it was operating under a false banner and had violated maritime and ship safety laws because of its lack of seaworthiness. According to the ruling of June 4, a lawyer for the owner Caffa Shipping Limited had challenged the seizure, and asked for the vessel's?release. The court stated that Ukraine was seeking the ship in connection with an investigation of suspected war crimes, including the removal and appropriation of property from Russian-occupied territories. Hakan Larsson, public prosecutor, said that in an email to?, "the court confirmed that the seizure was legal and that the vessel could be handed over to Ukraine." The district court ruled that the alleged conduct may constitute a crime of war under Swedish law. This cleared the way for the vessel to be transferred and the evidence it contained to the Ukrainian authorities. Larsson stated that the decision must be legally binding before any transfer of ownership can occur, and added?that owners have three week to appeal. The lawyer for Caffa?Shipping did not respond immediately to a further comment request. The police reported that the majority of the 11 crew members of the 'Caffa were Russians at the time of the seizure. According to the ship tracking service MarineTraffic, the vessel is a general cargo ship measuring 96 metres. Reporting by Jagoda darlak. Terje Solsvik, Mark Potter and Terje Slsvik edited the article.
Boeing builds trust with airline bosses as they see improved jet quality
Airlines are tentatively showing greater confidence in Boeing’s ability to produce jets of the highest quality, a move that could help the planemaker repair years of damage to its reputation.
The annual airline summit in New Delhi, held this week, struck a more positive tone regarding Boeing's recovery after overlapping safety, industrial and regulatory crises. However, executives also stressed that Boeing had much work to do.
Alaska Airlines CEO Ben Minicucci, who is based in Seattle, told the International Air Transport Association annual meeting that "we've seen an improvement quarter-to-quarter in safety and an improvement in our quality."
"Are they there yet? There's still much work to be done.
A door that was missing four bolts blew a new Alaska Airlines Boeing 737 MAX off at 16,000 feet in January of last year. The incident caused ripple effects throughout the industry, affecting suppliers, carriers, and passengers.
At the IATA annual meeting, airline critics are often heard. Last year, IATA chief Willie Walsh urged Boeing to take lessons from mistakes that led to a crisis that began with two fatal crashes of MAX jets between 2018 and 2019.
Tim Clark, President of Emirates, Boeing's largest customer, has recently been one of its most vocal critics.
Clark's annual press conference at the summit was more positive this year. He spoke of getting "clearer" messages from Boeing's newly appointed leadership.
He said he never met Ortberg’s predecessor Dave Calhoun, but praised the change in style.
He said, "It was great to meet the CEO of Boeing."
Clark, whose carrier has ordered 205 of the 777X, which is still not certified, in private, expressed growing confidence by Boeing.
He said, "I haven't seen any of the cautious optimism I was referring to in the past few years."
Ortberg, the new CEO, took over in August last year. He has promised to address safety and product quality issues and restore trust among regulators, employees and customers.
Boeing customers reported that the measures have shown some results.
Boeing has made improvements to the quality of its deliveries and is working hard to increase production.
Peter Barrett, CEO at SMBC Aviation - a major Boeing customer and lessor - said that there is still a long way to go, but the story is improving.
Airline Inspectors
Boeing's recovery is not taken by many as a given.
Alaska Airlines sent its own quality inspectors on Boeing's production line and ordered a quarterly audit.
Alaska's Minicucci stated that Boeing had undertaken a "very meticulous, deliberate process" in order to reduce the out-of sequence work. This disruption in normal factory flow was blamed for part of the oversight.
He said that Ortberg who moved to Seattle in order to be nearer the largest jet plants and Boeing Commercial Airplanes' CEO Stephanie Pope appointed last March regularly tour factories.
Minicucci stated, "They are getting out, they are walking the floor and they feel what is going on." "I don't think it is the same as in the past."
Other customers have noticed progress despite the brutal strike that halted Boeing's jet production last year.
Scott Kirby, CEO of United Airlines, who was part of the revolt among U.S. carriers that led to Calhoun's departure after the Alaska incident last week, claimed Boeing had "turned a corner".
Work Remains to Complete Recovery
Few airline chiefs are still in denial about the magnitude of the turnaround required to restore Boeing factories' status.
"When I went there last year... "I thought it was going nowhere with this rate," Clark said. He added that he would be returning this year to check out the progress.
Boeing has declined to comment specifically on airline opinions.
The airlines are not going to ease off their pressure on each other as they wait for the new jets just because the public is more positive.
Boeing's production is slowly stabilising, according to several airline executives who attended the IATA event.
Brad McMullen, Boeing's Senior Vice President for Commercial Sales, said: "We still have a lot to do but customers are very positive about our performance during the first five month of the year."
The regulators will now be evaluating the higher production after Boeing reached a temporary limit of 38 MAX aircraft per month. It is also seeking certification for models such as the 777X.
On Wednesday, the acting director of the Federal Aviation Administration stated that a higher output was not going to happen immediately.
Clark, who was originally due to receive the upgraded 777X by 2020, had little hope that the jet would be delivered before the next IATA meeting in June of this year. Boeing says it will now be delivered in 2026.
Clark stated that the important thing was that the aircraft would be certified according to the new Boeing's requirements: safety, new building methods and quality control. (Reporting and editing by Elaine Hardcastle; Reporting by Rajesh Kumar Singh)
(source: Reuters)