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Enagas, a Spanish company, has a positive first-half net result
Enagas, the Spanish gas grid operator, announced on Tuesday that it had made a profit of 176 millions euros ($205.66) during the first six months of the year. This was after it suffered a loss of capital on the sale an asset in America last year. The swing was also influenced by gains from a sale and the revision upward of the amount awarded in arbitration for an investment in Peru. Enagas recorded a net loss in the first six months of 2024 of 211 millions of euros, due to a capital loss of 360 million of euro on the sale an asset in America. The Spanish company is diversifying by managing a hydrogen infrastructure network, as well as focusing on ammonia and carbon dioxide capture. In order to achieve this, it announced earlier this year that it would invest over 4 billion euros in the next decade. More than three-quarters of this amount will be allocated for hydrogen infrastructure. Enagas gained 41.2 million euros from a World Bank decision to increase the amount that the company had been entitled to in an arbitration over an investment for a natural-gas pipeline in Peru known as Gasoducto Sur Peruano. It said that gains from a sale in Mexico brought in another 5.1 millions euros. The company stated that it was on track to meet its goals for the year.
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Drop in US Treasury yields benefits Indian rupee
The Indian rupee edged slightly higher on Tuesday, and the dollar-rupee premiums increased as fears over the economic impact of U.S. president Donald Trump's tariff war pushed down the yields on U.S. Treasury bonds, the greenback, and crude oil. The rupee was slightly higher at 86.2650 against the U.S. Dollar by 11:10 am IST than it had been when it closed earlier that day, at 86.2925. In Asia, the dollar index remained at 97.9 after falling by 0.6% on Monday. This was due to a drop in U.S. Treasury rates that saw 10-year yields reach a two-week low. The yields on short-term U.S. Treasury bonds also declined, helping to boost the premiums for long-term dollar-rupee forwards. The implied yield on the 1-year dollar rupee rose to a two-week-high of 2.03%. A fall in rupee liquidity in the banking system also helped boost very near-tenor swap rates. Indian assets mostly ignored a media report stating that a deal between India and America is unlikely to be reached before August 1. Equities and rupee held on to modest gains, while the yield of the benchmark 10-year bonds was barely changed. Next month, India will face steep reciprocal levies for exports to the U.S. in the absence a deal. The rupee's trajectory is still pointing towards further weakness. Both the 86.00 level and the 86.20 level have been breached. Amit Pabari said that this opens the way for a move towards 86.50 to 86.80. The rupee has also suffered from a lack of foreign portfolio flows, in addition to the uncertainty surrounding global trade dynamics. In July, overseas investors sold a net of about half a million dollars worth of local stocks. The outflows for the year to date are at almost $9.5 billion. (Reporting and editing by Ronojoy Mazumdar; Jaspreet K. Kalra)
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The holes in EU Russia sanctions bring attention back to Trump's oil threat
EU sanctions unlikely impact Russia's oil revenues severely India and China could continue to buy discounted Russian crude Trump's secondary sanctions may pressure Russia, but they could also risk a global oil price spike Ron Bousso LONDON, JULY 22 - The latest European Union effort to restrict Russia’s oil revenues is unlikely to harm Moscow’s war effort significantly, leaving U.S. president Donald Trump’s threat of secondary sanction as one of the last remaining economic levers for pressure on the Kremlin. The EU agreed to the 18th set of sanctions against Russia on Friday, which Foreign Policy Chief Kaja Kallas described as one of the most robust ever. The price cap for Russian crude is now $47.60 per barrel, down from $60. This means that shippers and insurers who are trying to avoid sanctions cannot make purchases above this level. The new cap that takes effect September 3 also includes a mechanism that ensures it's always 15% below the average Russian crude price. Import bans on refined oil products derived from Russian crude are a significant addition. The ban would most likely take effect next year and closes a loophole that was created when the EU stopped the majority of imports of Russian refined products after Moscow invaded Ukraine in February 2022. The EU's decision to halt most imports of Russian crude and refined products in the wake of Moscow's invasion of Ukraine in February 2022 led to a sharp increase in European fuel imports from China, India, and Turkey. These initial measures were only partially effective, however, because refiners from these three countries increased their imports of Russian feedstock as a result of the price caps. According to Kpler, India would be the largest loser of the new ban. India accounted for 16 percent of Europe's diesel and jet fuel imports last year. In 2024, India will import 38% of its crude oil from Russia. The new ban will exempt countries who are net exporters. This means that the Gulf producers, such as Saudi Arabia and the United Arab Emirates, with their large refineries, could take over the Indian refineries' slack and export more fuel into Europe. PAIN AND GAIN Since 2022, Western sanctions have targeted Russia's oil industry. They are carefully designed to prevent a major energy price spike while also aiming to limit the revenues of Moscow as the third largest oil exporter in the world. The sanctions haven't had much success on this point. In 2024, Russia's crude and oil product export revenues will reach $192 billion. This is significantly higher than the $110 billion defence budget for that year. This compares to oil export revenues of $225 billion for 2019. According to estimates by the International Energy Agency, despite a slight decline in Russia's oil production to 7,23 million barrels a day in June, revenues rose $800 millions from May to $13.6 Billion, thanks to higher oil prices globally. This is partly due to the fact that Russia found some workarounds. For example, it developed a vast, opaque network of oil tankers and insurance schemes, which allow Russia to export its crude oil over the price cap. In addition to 342 tankers already sanctioned, the EU's latest package also included 105 additional tanks that had violated the original price cap. Moscow will find ways to avoid the worst effects of these new sanctions. Perhaps by expanding its shadow fleet, or by obscuring further the source of oil with measures like mid-ocean transfers between ships. India and China are likely to continue purchasing discounted Russian crude in order to benefit their own domestic markets while redirecting fuel exports that were previously bound for the EU towards new markets. The new EU measures will not choke off the financial lifeblood of Moscow, even though on paper the new price cap may reduce the oil revenues in Russia. SECONDARY TRUMP TAILORS The "secondary sanctions" that President Trump threatened to implement last week would hit the finances of Moscow by imposing 100% tariffs on countries who buy oil from Moscow unless the Kremlin agrees to an agreement to end the conflict in Ukraine within the next 50 days. The secondary tariffs would severely restrict the ability of any country to trade with Russia, which is the largest economy in world. Would Trump really take such a drastic step? Trump has been expressing frustration towards Russian President Vladimir Putin over the past few weeks. Secondary sanctions may be the only effective tool left, given that multiple rounds of EU sanctions and U.S. sanctions against Russia have not had much of an impact on Moscow’s war chest. This is the exact problem in a global market for energy. This drastic escalation in the West's war on Moscow would likely result in a sharp rise in the global oil price and inflation, two things that the U.S. President does not want. It's possible that this is why, despite the recent developments, both Moscow and oil traders appear to be relatively unfazed at the moment. You like this column? Check out Open Interest, your new essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Malaysian tourist arrivals are up 20% between Jan and May, says the ministry
The Tourism Ministry reported that Malaysia had 16.9 million foreign tourists arrive from January to the end of May this year. This is a 20% rise from 2024. In a written response to the parliamentary question on Monday, the Tourism Ministry said that about half of Malaysia's international tourists arrived from Singapore, with 8.34 millions visitors. Indonesia was next, at 1.82million, China came in at 1.81million, and Thailand had 1.06million, according to the ministry. The ministry also noted that arrivals from "long-haul" markets such as Australia and United Kingdom had increased by 16.6% and 8,7%, respectively, in comparison to the same period of 2024. The ministry stated that "this increase in foreign visitor number clearly reflects the efficacy of various initiatives implemented the government by strategic approaches, progressive policy such as the Visa Liberalisation Plan, and support and incentive given to industry actors." In 2024, the Southeast Asian nation recorded just 25 million international tourists arrivals, which is less than its target of 27 million. Malaysia's tourism ministry has stated that it aims to have 47 million international tourists arrive in Malaysia by 2026. It will focus on markets like Central Asia, Middle East, Southeast Asia and Europe. (Reporting and editing by David Stanway; Danial Azhar)
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Bloomberg News reports that China's Cosco wants to have a veto in the deal for Li Kashing's port.
Bloomberg News reported that China Cosco Shipping, the state-owned Chinese shipping company, is seeking to join a global consortium acquiring the overseas ports of Hong Kong business tycoon Li Kashing. The company is requesting veto or similar power within the entity that will be taking over 43 ports. The report cited people who were familiar with the issue to say that Cosco argued that these rights are essential to prevent any decisions which could be potentially detrimental to China's interest. The report states that CK Hutchison Holdings, a subsidiary of Li, and the original group, including BlackRock's Global Infrastructure Partners and Terminal Investment, a company owned by Italian billionaire Gianluigi Apponte, agreed to allow Cosco full access to information about the project, for which discussions are ongoing and no decisions have yet been taken. The consortium aims to acquire two strategically significant ports along the Panama Canal. Cosco, CK Hutchison BlackRock, and Terminal Investment have not responded to our requests for comment. Could not verify the report immediately.
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Officials say that the death toll in the Bangladesh Air Force jet crash has risen to 27.
Officials said that at least 27 people died after a Bangladesh Air Force (BAF) training jet crashed in a Dhaka campus of a school and college. 88 other people, including some children, were treated in hospitals. The F-7 BGI aircraft, which was on a routine mission to train in the capital at the time of the crash, crashed shortly after taking off from Kurmitola airbase on Monday afternoon. The military claimed that the plane suffered a mechanical malfunction. Sayedur Rahman is the special assistant of the chief advisor on health. He told reporters that 27 deaths had occurred and 88 people were hospitalized with burn injuries. The government declared a national day of mourning with all flags at half mast and special prayers in all places of worship. The military confirmed that the pilot was one of those who died in the accident, and said a committee would be formed to investigate the events. According to Jane's Information Group, the F-7?BGI aircraft is the most advanced and final variant of China's Chengdu J-7/F-7 family. Bangladesh signed a deal for 16 aircrafts in 2011, and the deliveries were completed in 2013. This crash follows the worst aviation disaster of the past decade, when an Air India flight crashed into a medical school hostel in Ahmedabad. The plane killed 241 people and 19 more on the ground. (Reporting and writing by RumaPaul; editing by Christopher Cushing, Kate Mayberry).
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Sources say BNSF has hired Goldman Sachs, CSX is looking for bankers, and Union Pacific has sparked a rail M&A competition.
Sources said that BNSF Railway hired Goldman Sachs while CSX Corp was in discussions to hire financial advisers. Union Pacific's interest of acquiring Norfolk Southern sparked a deal wave in preparations for a potential reshaping of the U.S. rail freight industry. The move by BNSF and Jacksonville's CSX, both owned by Warren Buffett and Berkshire Hathaway respectively, comes after Union Pacific started exploring a possible acquisition of Norfolk Southern. This could create a 200 billion dollar coast-tocoast rail network, marking the largest consolidation in this sector for decades. Any deal will be subject to intense regulatory scrutiny, and is still far from certain. Goldman and CSX refused to comment. BNSF didn't immediately respond to a comment request. In extended trading, shares of Norfolk Southern rose 2.4%. Berkshire purchased BNSF in 2010 for $26.5 billion, paying the remaining 77.4% that it did not already own. In 2023, Canadian Pacific acquired Kansas City Southern and formed the first rail network that spans Canada, the U.S., and Mexico. This deal came after a failed bid from Canadian National. It shows how quickly the competitive pressures in this sector can escalate. Union Pacific, BNSF and CSX followed closely behind with revenues of $24.3 billion, followed by Canadian National Norfolk, Canadian Pacific Kansas City, BNSF and CSX. The people who spoke to us said that the talks between Union Pacific Norfolk Southern are in their early stages. Surface Transportation Board approval is required for any merger, and this could take two years. David O'Hara said that CSX is a better match for Union Pacific than Norfolk Southern. O'Hara stated that Union Pacific would buy anyone in the East who wanted to be available. "Whoever is left in the cold will eventually be bought by Burlington Northern, that will almost certainly happen." (Reporting from Sabrina Valle, New York; additional reporting from Jonathan Stemple, New York; AnshumanTripathy and ArsheeyaBajwa, Bengaluru. Editing by Anil d'Silva, Lincoln Feast.
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Sources say that BNSF Railway has hired Goldman Sachs to acquire railroads.
Two sources with knowledge of the situation said on Monday that the Berkshire Hathaway owned BNSF Railway was working with Goldman Sachs in order to investigate the acquisition of a competitor railroad. The deal would be the latest in a series of M&As that have taken place in the rail sector. This is due to rival Union Pacific possibly acquiring Norfolk Southern for $200 billion to create a coast-to-coast railway network. The merger of Union Pacific and Norfolk Southern will create the U.S.'s first single-line West-to East freight railroad, changing the competitive landscape in the industry for competitors like BNSF. BNSF didn't immediately respond to a comment request. Semafor, the first to report the news, said that it was not clear whether BNSF intended to target Norfolk or CSX (the other East Coast carrier). In extended trading, shares of Norfolk Southern rose 2.4%. (Reporting and editing by Anil D’Silva, AnshumanTripathy and ArsheeyaBajwa from Bengaluru and Sabrina Valle from New York.
As Tropical Storm Wipha approaches the northern coast of Vietnam, heavy rains are expected
The state weather agency predicted that up to 50cm (20 inches) could fall, causing flooding and mudslides.
According to the National Weather Forecast Agency, as of 0600 hrs, Wipha was located 60 km off of the coast of Haiphong City, with winds speeds up to 102kph.
The agency stated that after making landfall on Hung Yen province and Ninh Binh Province, Wipha will weaken into a low pressure event by Tuesday night.
So far, no casualties or damages have been reported. The wind and rain in Haiphong - an industrial base with important ports - were moderate Tuesday morning, according to witnesses.
A resident of Cat Ba Island, Haiphong said: "We can go outside this morning because the wind isn't too strong." Pham Minh Chinh, the Prime Minister, declared an emergency on Sunday for coastal provinces in Wipha because it could lead to flooding and landslides.
Airlines have cancelled or rescheduled hundreds of flights. Some airport, train and port services have also been suspended.
Vietnam's long coastline, which faces the South China Sea is susceptible to deadly typhoons. Typhoon Yagi caused damage of $3.3 billion and killed 300 people last year. (Reporting and editing by John Mair; Khanh Vu)
(source: Reuters)