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Explosive attack stops crude oil pumping in Colombia's Cano Limon - Covenas pipeline
A crude oil pipeline in Colombia's north has been shut down due to an explosive attack, Cenit, the operator of the state-owned oil company Ecopetrol said on Wednesday. Cenit said that the attack took place in a rural part of the Arauquita Municipality. It did not result in any injuries or deaths, but it prompted the company to activate its emergency protocols in order to contain the spill. Cenit didn't attribute the attack directly to a particular group. However, the Colombian armed forces claim that there are dissidents from the Revolutionary Armed Forces of Colombia, or FARC, in the area. Cenit reports that the Cano Limon - Covenas pipeline is often targeted by terrorists. It can pump up to 210.000 barrels of crude oil a day across 773 kilometers.
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US eliminates tariff exemptions for low-value products
White House announced on Wednesday that the United States has suspended a "de minimis exemption" which allowed low-value commercial goods to be sent to the United States free of tariffs. The White House announced that, under an executive order signed on Wednesday by President Donald Trump, packages sent to the U.S. valued at less than $800 outside the international postal system will be subject to "all applicable duty" as of August 29. Trump had earlier targeted packages coming from China and Hong Kong. The White House has said that the tax and spending bill recently signed by the President repeals the legal basis of the de minimis exemption globally starting July 1, 2027. The White House stated in a factsheet that Trump is taking action faster to suspend the de minimis exception than OBBBA demands, to deal quickly with national emergencies, and to save American lives and business. The postal service will charge two different tariffs for goods shipped. Either an "ad-valorem duty", equal to the tariff rate in the country of origin, or a six-month specific tariff, which ranges from $80 to $220, depending on the tariff rate. (Reporting and editing by Susan Heavey, Howard Goller and Christian Martinez)
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Trans Mountain Canada plans to open the season for capacity expansion later this year
Mark Maki, the CEO of Canada's Trans Mountain Oil Pipeline, said that the operator may begin a formal process to gauge commercial interest this year in the first project of several potential ones to increase the capacity of the system. This process, called an "open-season," will determine if there is sufficient interest from shippers to introduce chemical additives which reduce friction in pipelines, allowing increased flow. Maki stated that adding these drag-reducing compounds could increase daily delivery volumes of the 890,000.00 barrels per day pipe by 5% to a 10%. The capital cost would be between C$10,000,000 and C$20,000,000. The Canadian government owns the Trans Mountain pipeline which transports oil from Alberta to the west coast of British Columbia, where it is then shipped overseas to markets such as China. Last year, a C$34 billion expansion completed the pipeline capacity by tripling it. Trans Mountain says that the pipeline could reach its maximum capacity as early as 2027-2028. "Canadian oil shipping companies want capacity." They also want certainty. "They don't want us to be in a situation where we are short barrels," Maki stated in an interview. Canadian oil exports to the U.S. currently are exempt from tariffs. However, ongoing trade tensions between Canada and its southern neighbour have led Canada - which is the fourth largest oil producer in the world - to diversify their exports. A new oil pipeline connecting the United States to foreign markets has been gaining support in public opinion polls, but no private companies have expressed an interest in developing such a project. Trans Mountain also explores adding additional pumping station to increase flow along the line as well as construction of up to 40 kilometers (12-24 miles) of new pipes to increase the diameter of the line at certain locations. Maki stated that the cost of these projects has yet to be determined. He added that an open season would take place for these projects in 2026, with a date in service sometime in 2029. He said that if all of the Trans Mountain improvement projects are approved, Canada's oil export capacity could be increased by between 200,000 to 300,000 bpd. Canada will export an average of 4,2 million barrels per day (bpd) in 2024. This is about 80% its total production. CDN$1= US$0.72
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Sources say Safran chooses France for major investment over Canada and the US
Two people with knowledge of the matter say that the French aerospace company Safran will choose France to house a new carbon brakes factory worth 400 million euros ($458,48 million). This follows a competition between France, the United States, and Canada. People who asked not to be identified said that the politically sensitive decision could be made as soon as Thursday. The decision is subject to the approval of the board of the aerospace supplier and has been overshadowed in part by the debate about energy prices. Safran, the company that pioneered the use resilient carbon brakes in Formula 1 racing cars and aircraft, declined to comment. Location of the fourth plant in France is under close scrutiny. President Emmanuel Macron, who has made reindustrialisation a priority political goal, is pushing Europe to increase investment there. In 2019, the partially-state-owned French company plans to open a factory in Lyon, France’s third largest city, for energy-intensive brake production. This will join three existing plants already in France, Kentucky, and Malaysia. COVID-19 AND SOARING Energy Prices In 2020, the COVID-19 pandemic stymied the idea. And in 2022 plans to renew the project in order to capitalize on a rise in air travel were delayed for 18-24 more months due to the escalating energy prices in Europe following Russia's invasion in Ukraine. Safran said that it would consider three main criteria, including competitive energy prices and stable and clean supply based on nuclear and hydraulic power. It will also look at a 10-year price visibility. In December last year, Olivier Andries, the CEO of a major French company, also mentioned criteria such as "economic and political stability". He said that France was his company's top choice, but that the abundant hydroelectric power in Quebec and Oregon's regulated prices for energy were also attractive options. Sources said that the race eventually narrowed to France and Canada. Carbon brakes last longer and are lighter than traditional brakes, but they require a large capital investment to build large industrial facilities. These large facilities consume a lot of gas (from which the carbon can be extracted) and electricity for large ovens. Electricity can account for up to 40% of costs. Industry sources claim that Safran and the French state EDF had fought in the past over the availability of supplies at affordable prices. However, tensions have eased since the recent change of management at EDF. Safran's brakes unit competes against RTX, a Collins Aerospace subsidiary, for airline contracts. Both suppliers are able to benefit from the high margins of aftermarket repairs, as brakes undergo regular refurbishment after heavy usage. Safran has a unit that specializes in carbon brakes, which are used for Formula 1 cars. McLaren entered the sport with Safran in 1984.
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Fed policy decision generates most governor dissents since 1993
Federal Reserve Governors have voted in the most dissenting manner since the beginning of the U.S. Central Bank's policy meeting, which lasted two days. Governor Christopher Waller, and Fed Vice-Chair for Supervision Michelle Bowman, voted against the decision of the central bank to keep its benchmark overnight rate at 4.25% to 4.50%. They preferred to lower it by a quarter percent. According to the St. Louis Fed, this was the first time since December 1993 that two members of Washington's Board of Governors dissented from a policy decision made by the Federal Open Market Committee. Fed governors rarely express formal opposition, and the majority of FOMC dissenting vote stems from disagreements between regional Fed bank presidents. Last September, Bowman dissented from the FOMC consensus because she wanted a smaller cut in rates than her colleagues. In October 2019, two regional Fed presidents were the last to vote against the FOMC consensus. Dissenting votes at the FOMC tend to be rare. Up until Wednesday, there had been no Fed meeting in this year that generated formal opposition. Only two dissents occurred in 2024, and none in the years 2023. Waller and Bowman both indicated their willingness to ease rates ahead of the policy gathering. Waller's desire to lower borrowing costs for short-term loans was justified in a July 17 speech when he stated that "the economy continues to grow, but the pace has slowed considerably, and risks to the FOMC’s employment mandate are increasing." Bowman dismissed concerns that President Donald Trump’s import tariffs will drive up inflation in her remarks on June 23. She said that as long as inflation was contained, it would be "time to consider" lowering interest rates at the July 29, 30 meeting. Trump has criticized Fed chair Jerome Powell, for not heeding the White House's demand that interest rates are cut immediately. Waller and Bowman are both members of the Fed board appointed by the current President. Contrary to Waller's and Bowman's approach, the majority of Fed policymakers are waiting and watching to see what happens with economic and monetary policies. Although inflation pressures are lessened, many officials worry that Trump's tariffs could increase price pressures in the future, which would argue against easing policy. Waller has made a number of public comments arguing that any increase in inflation caused by tariffs is a temporary problem that central bankers can ignore. He is increasingly concerned that the job market will stagnate and wants the Fed's help to prevent that. The Fed's policy setting committee is notable for its dissenting votes, which show the depth of debate between central bankers. Fed officials say that they are an indication that policymakers do not get stuck in groupthink as some critics claim. The number of dissenting votes tends to rise during times when the economy is uncertain and facing challenges. (Reporting and editing by Paul Simao, Andrea Ricci, and Michael S. Derby)
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Old Dominion misses quarterly estimates as freight slump drags on
Old Dominion Freight Line's revenue and profit for the second quarter fell below Wall Street expectations on Wednesday as its freight services continued to be muted in a macroeconomic environment that was tough. In afternoon trading, shares of Thomasville-based LTL carrier, which serves companies in retail, manufacturing and automotive sectors as well as healthcare, fell by about 9%. Trucking rates in the U.S. have been pushed lower by persistent overcapacity and low freight volumes. Old Dominion is still managing to operate in a challenging operating environment, which has lasted longer than expected. CEO Marty Freeman added that the "challenging" economy continues to impact demand for services. The company's revenue for the third quarter fell by 6.1% compared to last year, to $1.41 billion. Profit per share also dropped by 14%, to $1.27. According to LSEG data, analysts had on average expected revenue of 1.42 billion dollars and a profit per share of $1.29. The company said that the decline in revenue was primarily due to lower shipment volumes and lighter weights, despite higher freight prices. In a press release, CEO Marty Freeman stated that the decrease in revenue has had a deleveraging impact on many of our operational expenses. Operating ratios, which are a key measure of operating expenses as a percent of revenue for a company, have increased to 74.6%, up from 71.9% one year ago. However, they improved since the first quarter. A higher ratio indicates a rise in costs and lower profitability. Daniel Imbro, Stephens analyst, said that the company has continued to control its costs during this recession. This is especially true given June's softer top-line figures. (Reporting and editing by Pooja Deai, Maju Samuel and Abhinav Paramar in Bengaluru)
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EU wheat prices rise, boosted by Russian prices
The price of European wheat rose on Wednesday, after the session had seen a sharp fall. This was due to strong Russian prices as well as concerns over Germany's crop. The benchmark September milling wheat price on Paris' Euronext closed at 227.37 euros per metric tonne, up 0.7%. A trader stated that "Euronext's not increasing because funds are selling", pointing out the high Russian prices. Russian farmers have started to sell their new crop more after an unusually low start. However, they are still demanding high price as many ships are waiting in export ports to load supplies, traders reported. In the next few days, a cargo of 63,000 tons wheat bound for Egypt is expected to arrive in French ports Rouen and La Pallice. Egypt's State Grain Buyer said in late June that it expects wheat shipments to come from France and other European nations as it continues its efforts to diversify the supply sources and bolster Egypt's strategic reserves. The traders were skeptical that large volumes of exports delayed had been shipped to other countries to supply. Traders said that the repeated rains in Germany and Poland during this week have caused quality damage at the last minute to some wheat that was ready to be harvested and disrupted harvesting. One German trader stated that the quality of German wheat has suffered some damage. Rain almost every day is the worst thing you can imagine. There is still the chance of a good crop, if weather conditions change. After all, most German wheat is harvested in August. In Germany, rain will continue to fall into the first week of next year. Rain has also disrupted the harvest in Poland. One Polish trader stated that "heavy rains in Poland and only a few sunny days have caused harvesting to be disrupted, and there is much uncertainty about the quality of wheat among the farmers." "I estimate that only 20% of Poland’s wheat has been harvested. The results vary greatly from region to region." Farmers talk about low quality criteria (low falling numbers) for wheat. This may mean that more than expected of Poland's crop will only meet animal feed standards. Reporting by Sybille De La Hamaide and Michael Hogan, both in Hamburg. Mark Potter is the editor.
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Portugal invests $4.6 billion, mainly private, in ports by 2035
The government of Portugal announced on Wednesday a plan to invest 4 billion euros ($4.6billion) over the next ten years in order to modernise and expand its major ports. 75% will be carried out by private companies. Infrastructure Minister Miguel Pinto Luz announced that the investment will be made in six port, including Sines (the closest deep-water European Port to the U.S. Coast), where the existing terminal is being extended and a brand new one built. He said that port activities in Portugal have "potential" to attract new investments, given the country's privileged position. The extensive Atlantic coast can be used as a gateway into the Iberian Market and to connect with trans-European transportation networks. Pinto Luz announced that 15 new exploration concessions will be launched. According to the new law, private operators can enjoy a maximum of 75 years instead of the current 30 years. These investments are expected to increase cargo movements to 125 millions tons per year by 2035. This is a 50% rise compared to 2023's most recent data. Container throughput will also increase 70% to 6.5 Million Twenty-Foot equivalent Units (TEUs).
Air India plane crash - reactions around the world
Authorities said that more than 200 people died when an Air India flight bound for London, with 242 passengers on board, crashed shortly after it took off from Ahmedabad in western India.
What world leaders have said to date:
INDIAN PREMIER MINISTER NARENDRA MOTI, ON X
The tragedy in Ahmedabad shocked and saddened all of us. "It is beyond words."
I am thinking of everyone who is affected in this tragic hour. "I have been in contact with ministers and authorities working to help those affected."
BRITISH PREMIER MINISTER KEIR STAMMER, ON:
The scenes of the crash of an aircraft bound for London, carrying British nationals, in Ahmedabad city are heartbreaking.
"I'm being kept informed as the situation evolves and my thoughts are with passengers and their family members at this deeply distressing moment."
BRITAIN'S KING CHARLES, IN A STATEMENT ON X:
The terrible events that occurred in Ahmedabad early this morning have left my wife and me utterly shocked. We send our deepest sympathies and prayers to the families and loved ones of those who have been affected by this tragic event in so many countries.
U.S. SECRETAIRE OF STATE, MARCO RUBIO ON X:
"Heartbroken by the news of a tragic airplane crash in Ahmedabad (India). "My prayers are with those who have lost loved ones in this terrible incident."
PAKISTAN'S PRIME MINISTER SHEHBAZ SHARIF on X:
We are deeply saddened by the crash of Air India near Ahmedabad. "We extend our condolences and sympathy to the families who are grieving the loss of this tragic flight."
Our thoughts and prayers go out to all those who have been affected by this tragic event.
The Vatican's Secretary of State, On X, said: "Deeply moved by the tragedy involving a Air India plane near Ahmedabad His Holiness Pope Leo XIV extends his deepest condolences and prayers to the family members and friends of the victims, as well as assurances of prayers for those involved in the recovery effort."
His Holiness invokes divine blessings for healing and peace on all those affected by the death of loved ones.
BANGLADESH CHIEF Adviser MUHAMMAD YUNUS IN A MESSAGE to MODI
We extend our condolences and deepest sympathy to the families of those who have lost loved ones in this tragic accident.
"We offer our full and unwavering support to the Government and people of India."
MARK CARNEY CANADA'S PRIME MINISTER, ON X : "Canada is deeply moved by the crash in Ahmedabad of a plane bound for London, with 242 passengers, including a Canadian." In the wake of this tragedy, Canadian officials are in constant contact with their counterparts. "Our thoughts are with those who have been affected."
URSULA VON DER LEEYEN, PRESIDENT OF THE EUROPEAN COMMISSION, ON X: “My deepest sympathies to the families and loved one's grieving this terrible death."
"Dear @narendramodi: Europe stands with you and your people in this time of sadness."
RUSSIAN PRESIDENT VLADIMIR PUTIN TO MODI IN AN OFFICIAL TEELEGRAM PUBLICED ON KREMLIN WEBSITE
Please accept my sincere condolences for the tragic effects of the airliner accident at Ahmedabad Airport. Please convey your sincere sympathies and support to families and friends of those who died, and wish a speedy recovery to everyone injured in the accident.
ITALIAN PRIME MINISTER GIORGIA MELONI, ON X:
"I express the condolences of both the Italian government and myself to the families of those who died and our complete solidarity with the Indian people at this time of great sadness."
PHILIPPINE PRESIDENT FERDINAND JR. ON X
"On behalf of Filipinos, I offer my deepest condolences and prayers to Prime Minister Narendra Modi and the Government of India. My heartfelt sympathy also goes out to the loved ones and families of those who have lost their lives."
The victims should be remembered with dignity and the efforts to comprehend this tragedy must bring comfort to the people left behind.
FRENCH PREMIER EMMANUEL MACRONE, ON X
We have been deeply affected by the plane crash that occurred in Ahmedabad. "In this time of sadness, I send my heartfelt condolences to the loved ones of the victims and Prime Minister @NarendraModi."
AUSTRALIAN PREMIER MINISTER ANTHONY ALANESE, ON X
The news of the passenger plane crash in Ahmedabad was absolutely devastating. Australia is thinking of everyone who has been affected in this tragic time.
Our government receives regular updates, and we continue to closely monitor the situation."
IRISH PRIME MINISTER, MICHEAL MARTIN: "My prayers and thoughts are with the Indian people after the horrible plane crash that occurred in Ahmedabad today." I am thinking of the families and emergency services who are on the scene, as well as the passengers.
GENERAL SECRETAIRE OF BRITISH Airline Pilots' Association AMY LEVERSIDGE
Pilots from around the world are saddened to hear this. The British Airline Pilots' Association offers condolences for all the victims.
It is essential that a thorough and complete investigation be carried out now without any interference or unhelpful speculating about the contributing factors in order to avoid future tragedies." (Compiled by Hritam and Manvi Mukherjee in Bengaluru, edited by Andrew Heavens.)
(source: Reuters)