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RUPEE INDIA-Raise in overnight swap rates, lower US bond yields increase forward premiums
The dollar-rupee premiums in India rose across all tenors due to a combination of an increase in the cost of borrowing rupees overnight and a drop in short-term U.S. Treasury rates, while the local currency remained flat on the spot market. The overnight dollar-rupee swap rate rose on Wednesday to 0.38 paisa, pushing near-tenor premiums up to a month-high and boosting long-term premiums, helped by a drop in the yield of one-year U.S. Treasury bonds. The 1-month forward premium increased to 12.50 paisa while the 1-year implied rate rose by 2 basis point to a 3-week high of 2,05%. The yield on the 1-year U.S. Treasury was at 4.08% last after it hit a 2-week low overnight. According to traders, tighter rupee liquidity within the banking system has pushed the overnight swap rate up. India's banking sector liquidity is at a low point for the past seven weeks, but is expected to rise in the next few days. This could help reduce near-tenor premiums. A trader from a large bank stated that "there is limited interest to run a position paid" citing the possibility of the Federal Reserve keeping rates unchanged for a longer period of time and the growing expectation of a rate reduction by the Reserve Bank of India at its policy meeting in August. The rupee, on the spot market, was almost flat at 86.37 U.S. dollars as of 12:15 pm, sandwiched between the positive signals from gains in many regional peers, and the routine dollar demand by local importers. The dollar index was steady at 97.5, while the Chinese yuan strengthened to a three-week high, buoyed by fresh signs of easing trade tensions and a persistently stronger-than-expected guidance fix by the country's central bank. U.S. officials and Chinese officials will discuss an extension of the August 1 deadline for negotiations on a trade agreement. (Reporting and editing by Jaspreet K. Kalra)
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Heat records in China strain power grid and raise health concerns
China warned against power disruptions on Wednesday as people struggled in the record heat to stay cool. The elderly were also warned to be careful of heat stroke. Energy officials reported that China's power supply was suffering while its demand soared, surpassing 1.5 billion kilowatts last week for the first. This is the third record China has set this month. It also coincided with China's first nationwide heat-related alert. The weather official Chen Hui said at a Wednesday press conference that "high-temperature weather... will have an impact" on the power supply and generation. He added that it would reduce hydropower production and decrease the efficiency of photovoltaic generators. The authorities will send alerts informing electricity suppliers of tactics like peak shaving and cross-regional power dispatching if they are needed, said Chen, a representative of the China Meteorological Administration. Jia Xiaolong is deputy director at the National Climate Centre. She said that since mid-March the number of days with temperatures above 35 degrees Celsius (95 Fahrenheit) has been the highest ever recorded. Authorities urged outdoor workers to reduce their activity during such "sauna" days, and asked elderly people to stay inside unless absolutely necessary. Since mid-March, temperatures have reached new records in Henan, Hubei and Shandong provinces in central China, in Shandong, in the east and in Sichuan, in the southwest. In northwestern Shaanxi, Xinjiang and Shaanxi, the average temperature has also reached its highest level ever. Jia reported that 152 weather observatories across the country recorded temperatures over 40 degrees C. One observatory in Xinjiang reached 48.7 degree C. He said that August could be as hot as or even more so than in previous years. (Reporting and editing by Xiuhao chen and Liz Lee, Christopher Cushing and Clarence Fernandez).
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TotalEnergies and CMA CGM Launch LNG Bunkering Logistics JV in Rotterdam
TotalEnergies, a French oil company, and the French shipping group CMA CGM launched a joint-venture to operate a LNG bunker supply system in the Dutch port Rotterdam. Europe wants to import more LGN, amid ongoing tariff negotiations and in an effort to reduce gas imports from Russia. TotalEnergies, the third-largest LNG player in the world and the largest US LNG exporter, is looking to import more LGN from the U.S. amid tariff talks. TotalEnergies announced that the 50/50 joint venture between two France-based companies will develop a 20,000 cubic metres LNG bunker ship with operations beginning in 2028. The agreement provides for a maximum of 360,000 tons per year of LNG to be supplied to CMA CGM. Patrick Pouyanne, Chairman and CEO of TotalEnergies, said in a press release that LNG is the best and most immediate solution available to reduce the environmental impact of maritime transport. (Reporting from Alessandro Parodi, Gdansk; editing by Milla Nissi-Prussak).
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Rain raises Rhine River levels in Germany but ships are only partially loaded
Commodity traders reported on Wednesday that rain has raised the water level on the Rhine River in Germany. However, most of the river remains too shallow to allow cargo ships to sail with their full loads. A heatwave and dry weather in June and Juli meant that the river was too shallow to allow vessels to operate at full capacity. Ship operators increased freight rates in order to compensate for ships sailing partially empty. This resulted in higher costs for cargo owners. The traders reported that the rain this week caused water levels to rise dramatically. Heatwaves have had a greater impact than anticipated, with fields that drain into rivers and smaller streams feeding the Rhine being especially dry. The shallow water on the Rhine continues to hamper shipping in Germany, including Duisburg and Cologne, as well as the chokepoint at Kaub. However, vessels can now carry larger loads, according to traders. At Kaub and Duisburg, vessels can sail at around 60% and 70% capacity. They said that more rain predicted in the coming days in river catchment regions is expected to raise river levels to normal levels by the end of this week. The Rhine is a major shipping route for commodities like grains, minerals and ores, chemicals, oil products including heating oil, coal, and other oil-based products. German companies faced production and supply problems in the summer of 2022, after a drought caused unusually low levels of water on the Rhine. (Reporting and editing by Michael Hogan)
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Maguire: Key US electricity prices and output trends to 2025.
In the first half of 2025, there were a number of milestones in U.S. power and electricity, including records for generation, retail prices, and demand. Here are some key data points to track the ongoing changes in the U.S. electricity and power sectors. These are being impacted by historical swings in federal policies, rapid deployment of clean energy and surging demand from consumers and businesses. OUTPUT GROWTH The U.S. electricity output between January and June 2025 will reach a new record as solar and wind farms produce at all-time levels. Data from Ember show that the total utility-supplied electric production from January to the end of June reached 2,188 terawatts hours (TWh). This was the highest ever for this period, and was up 4% compared to the same months in the year 2024. Solar output grew by 32% over the past year, and wind farm production reached a record. Clean energy electricity supply increased 6% in comparison to a year earlier, reaching 989 TWh. In the months of January to June 2016, clean power sources accounted for a record 45.2% of all electricity, up from 44.2% in the same period a year earlier. During January to June, fossil fuels produced 1,199 TWh or 54.8%. Gas prices increased in early 2025, resulting in a 4% decline in output from natural gas plants. In order to compensate for the drop in gas-fired electricity, utilities increased coal-fired energy output by 17% from January to June compared with 2024. Coal generated 16% of all power, which is the highest level for the first half of this year since 2022. Price Gains The U.S. Federal Reserve System data shows that retail electricity prices in the U.S. also reached new heights this year. In recent years, the cost of electricity in the United States has steadily increased due to a combination of factors, including the growth in electricity demand from data centers and AI applications as well as electric vehicles, air conditioners, and electric cars. The average electricity rate in June of 2025 was 6.7% higher than the rate in the same month in 2024. This means that the cost of electricity for households has risen at a pace that is more than twice as fast as the overall consumer price inflation in the United States during that time period. Electricity costs are rising due to the increasing spending of utilities on upgrading aging grids that struggle to handle higher loads and growing amounts of renewable energy. BLAME GAME U.S. president Donald Trump blamed Joe Biden's policies for the rise in electricity costs, arguing the subsidies for renewable energy sources have increased utility costs. Republican lawmakers have cited high electricity costs in California, which has some of the most aggressive clean-energy targets in the nation, as proof that clean-energy goals increase consumer energy bills and as a justification for cutting clean-energy support from the latest budget. However, electricity prices have risen in states that have a strong opposition to clean energy. The U.S. Energy Information Administration's (EIA) data shows that electricity costs in California, the state with the highest prices, have been around 31.5 cents/kWh on average this year, compared to just under 32 cents/kWh by 2024. Electricity prices in Iowa, Kansas, and Nevada have also fallen from a year earlier. These states have all seen a dramatic increase in the supply of clean energy in electricity production so far in this decade. Electricity costs have increased far more in states that have energy systems which have suppressed the growth of renewable energy sources than the national average. Florida, which bans wind power and limits state support for solar energy, has seen its average prices rise by 5% this year to 14.94 cents/kWh compared to 14.25 cents/kWh a decade ago. Indiana, Tennessee South Carolina, Wisconsin and other states have seen their electricity prices rise more than the U.S. national average this year. They have also experienced a slower growth in clean energy than California this decade. Electricity prices in these states are still below the national average of 16.75 cents/kWh, which is what they were so far this year. All utilities are responsible for delivering grid upgrades in the next few years, as power demand is on the rise across the country. Those states that have large solar and wind farms could avoid steep price increases in the near future, since generation costs for renewables are often lower than fossil fuel plants. In areas where there is little or no clean energy, utilities will have to increase the cost of electricity to consumers to continue operating fossil power plants. These utilities are also more exposed to fossil fuel prices in the future, as federal funding for clean energy is cut and policy measures continue to direct power expansion towards fossil fuels. This means that any additional increases in gas or coal costs due to increasing power demand could also be passed on by the consumers and could further increase the rise in energy bills for customers in areas lacking significant clean energy sources. 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. 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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Thai Airways will resume its trading on August 4.
The stock exchange announced on Wednesday that Thai Airways International, the flag carrier of Thailand, will resume trading by August. This marks the end to a long restructuring period sparked by the pandemic. The national carrier entered a bankruptcy-protected restructuring in 2020 and developed plans to restructure its debts of 400 billion baht (11,17 billion dollars). In order to achieve these plans, the national carrier reduced its workforce and fleet by half. The airline also named Piyasvasti Amranand as its restructuring committee along with several veteran bankers. Thai Airways has been losing money since 2012 due to the growing competition of budget airlines. The government has reduced its stake in the airline as part of its restructuring program, which means that it no longer qualifies as a state-owned company. The Stock Exchange of Thailand announced in a press release that "the SET has approved the removal of THAI's securities from the delisting list and the lifting of the suspension of the company, as well as the non-compliance designations." Thai Airways is making profits on a regular basis since 2023. In June, it ended the court-guided reorganization programme. The carrier has an option to purchase 35 additional Boeing 787-9 widebody jets. It also stated that it would exercise this option in the course of Thailand's negotiations with the United States. (Reporting and editing by David Stanway, Chayut setboonsarng)
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Equinor writes off $955 Million US Offshore Wind Costs
Equinor, of Norway, said that it had booked an impairment of $955 million on a project for offshore wind in the United States despite President Donald Trump's lifting an earlier ban. Interior Secretary Doug Burgum stated in April that the former administration of President Joe Biden failed to perform enough environmental analyses before approving Empire Wind's development in New York State. He stopped the project and dealt a serious blow to the U.S. Offshore Wind Industry. Burgum lifted its stop-work order a month after the original date, as part of a compromise reached with the government that could see the canceled plans for a pipeline revived. Equinor reported a lower net operating profit for the second quarter on Wednesday due to having booked a near billion dollar impairment in its U.S. off-shore wind projects. Equinor released a statement Wednesday that said, "This is affected by an impairment amounting to $955 million as a result of regulatory changes which have caused loss of synergies for future offshore wind project and increased tariff exposure." "Of these, $763 millions is related the Empire Wind 1/South Brooklyn Marine Terminal Project and the remaining is related the Empire Wind 2 Lease." Equinor, owned by the Norwegian government, won a federal leasing contract for Empire Wind under Trump's initial administration in 2017. It also received approval for its 2023 investment plans when Biden was in the White House. On the first day in his second term, Trump ordered an examination of offshore wind leasing and permitting, even though many analysts still believed that projects with full permits were safe. It said that the total book value of the company after the latest impairments is $2.3 billion. The project, which is expected to start operating in 2027, has an installed capacity of 810 Megawatts. This could provide enough electricity for half a million households per year. Equinor reported lower core results for the second quarter, as expected due to lower oil price. (Reporting and editing by Terje Solsvik, Jacqueline Wong and Gwladys Fauche)
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Delta's plans to use AI for ticket pricing is criticized by US lawmakers
Three Democratic Senators have asked Delta Air Lines' CEO Ed Bastian for answers about the airline’s plans to use artificial intelligence to determine ticket prices. They are concerned about the impact of this on travelers. In a letter sent on Monday, Senators Ruben Galego, Mark Warner, and Richard Blumenthal said that Delta's current and future individualized pricing practices will not only raise privacy concerns but also increase fares up to the 'pain points' of each consumer at a time where American families already struggle with rising costs. Senators cited comments made by Delta, a major airline in the United States. Delta plans to implement AI-based revenue management technologies across 20% of their domestic network before the end of 2025. The report said that a Delta executive told investors earlier the technology can set fares by predicting "the amount of money people are willing pay for premium products in relation to base fares." Delta said in a press release: "There are no fares that Delta has used, is currently testing or plans to implement which target customers with personalized offers based on their personal information or other." Delta said that dynamic pricing is used by the company for over three decades. Pricing fluctuates depending on factors such as overall demand, but not personal information about a particular consumer. Delta has said that AI-based dynamic pricing will be tested in order to eliminate manual processes and accelerate analysis and adjustments. It also stressed all customers would see the exact same fares and offers across all retail channels. Delta announced that it is testing AI to forecast demand for specific routes, flights and adapt to market conditions instantly, factoring in thousands of variables at once and learning from every pricing decision in order to improve future outcomes. Blumenthal, along with Senators Maggie Hassan & Josh Hawley, asked Frontier Airlines & Spirit Airlines in January to reveal whether they were using personal information of customers to charge passengers different fees on the same flight. Senators claimed that airlines "appear to be using customers' personal data to charge different fees for seats to passengers on the exact same flight", despite the fact that the fare was the same. Frontier and Spirit didn't immediately respond to Tuesday requests for comments on their current practice. David Shepardson, Leslie Adler, and Jamie Freed edited the article.
US FAA delays secondary cockpit barrier rule by one year
The Federal Aviation Administration agreed on Tuesday to delay for one year the requirement that newly delivered U.S. passenger planes have a secondary barricade to the flight deck in order to prevent intrusions. This was scheduled to go into effect in August.
Airlines for America, a trade group that represents American Airlines, United Airlines and Delta Air Lines, among other major carriers had asked the FAA for a two-year delay in compliance because the agency hadn't yet certified a second cockpit barrier and there were no approved manuals, training programs or procedures.
The agency stated Tuesday that this will give time for FAA certification to be completed and the installation of barriers.
The FAA adopted security standards for the flight deck after the September 11 hijackings of four U.S. planes. These standards are designed to prevent forcible entry and unauthorized access.
This rule will require aircraft manufacturers to install an additional physical barrier in new passenger planes in the United States. However, it won't be required to retrofit existing planes.
In 2023, the FAA stated that the additional barrier would protect cockpits from intrusions when the cockpit doors are open.
Last month, the Air Line Pilots Association urged FAA to "reject this latest stalling tactics" and install what it described as lightweight retractable security gates.
The union pushed for the rule. It said that at least 52 hijackings worldwide since 2001 "confirmed that aviation remains a terrorist target, underlining the persistent threat from hijackings."
Boeing, Airbus and Airlines for America argued for three years, but unions in 2023 wanted the rule to take effect immediately after publication.
According to a federal law passed in 2018, the FAA had to adopt rules by 2019. However, it has stated that it must follow certain procedural rules to be able to impose new rules.
In 2007, the FAA set up rules for flight deck security, which included requiring that the door must be locked if the aircraft is in motion, except when it's necessary to unlock it to allow authorized access. (Reporting and editing by Leslie Adler, Jamie Freed, and David Shepardson)
(source: Reuters)