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The conflict in the Middle East may accelerate Europe's gas separation from Russia, says Vladimirov
The Iran war's natural gas price shock could accelerate Europe's decoupling with Russian energy while pushing the continent further into U.S. arms. Last week, an Iranian attack forced QatarEnergy to stop production, forcing the second largest liquefied gas exporter in the world. European benchmark gas prices soared by almost 50%. The European benchmark gas prices soared by nearly 50% as a result of the Iranian attack that forced?QatarEnergy, the world's second-largest liquefied natural gas exporter, to halt production last week. Qatar will only supply 4% of the gas imported by the European Union in 2025 according to the European Council. However, with this volume no longer available, the U.S. is now the largest gas exporter and producer. The U.S. could then use this leverage to force Europe to decouple from Russian gas. Since the Russian invasion of Ukraine, Western leaders have been trying to achieve this through sanctions. This trajectory should not be altered by any temporary relaxation of U.S. oil sanctions during the war. The threat by Russian President Vladimir Putin to stop Russia's gas exports to Europe last week will also provide additional impetus to reduce this dependence. Russian gas accounts for about 10% of EU imports. The EU mandates that all Russian imports end by September 2027. However, legal ambiguities or loopholes may prolong the dependence on Russian Gas beyond 2028. RUSSIA'S LONG-LASTING GRIP IN EASTERN EUROPE Gazprom, a state-controlled Russian company, is the largest supplier of super-chilled fuels in Central and Eastern Europe and Southeastern Europe. The TurkStream pipeline system, which connects Russia and Turkey, is the main route for the Russian gas that flows into Europe. Central and Southern Europe remain structurally vulnerable, unlike Northern Europe which has rapidly diversified its energy operations through new LNG terminals. Russian pipeline gas is more commercially attractive due to limited storage, fragmented tariffs for transmission and poorly integrated markets. The Americans had a very clear message at the Transatlantic Gas Security Summit in Washington, held just a few days before the start of the conflict, which was to accelerate the flow U.S. LNG in Europe's most vulnerable market. NEW ENERGY FRAMEWORK To accomplish this, senior U.S. and European officials are focused on the new flagship project, the Vertical Gas Corridor, which links Greek LNG terminals to Bulgaria, Romania Moldova and Ukraine. The Vertical Gas Corridor would fundamentally reorient Central European and Southern European trade flows towards Atlantic supply chains. This would lock in long-term LNG supplies and make the Balkans a frontier market for exporters. In order to support this initiative, U.S. gas exporters such as Cheniere and Venture Global agreed to supply 8 billion cubic meters (bcms) of gas per year through 20-year contracts signed with traders and governments from Central and Eastern Europe. This is roughly equal to 10% of U.S. exports of LNG to the EU by 2025. These buyers, in turn, have signed non-binding deals with European intermediaries for the purpose of supporting the flow LNG through these areas. The willingness of European leaders to sign long-term contracts for gas after over a decade of talking about the need to cut fossil fuel consumption highlights Europe’s new reality. Energy security concerns are more important than decarbonisation. The success of a Vertical Gas Corridor in the United States is not guaranteed. Tariffs across the border between Central and Southern European nations remain prohibitively expensive. Regional operators propose a new, "super-bundled", agreement which would allow suppliers the opportunity to reserve an entire corridor under a single contract. There are also infrastructure bottlenecks. In order to accommodate large flows, underground storage facilities in Bulgaria and Ukraine will need to be upgraded. In addition, without EU financial support to cover the additional costs required for transmission system operators upgrade the grid, Russian Gas delivered via existing pipelines would remain cheaper and undermine diversification efforts. For the Vertical Gas Corridor?to function at scale, LNG from Turkey must flow north. According to my calculations based on data from Argus and Argus, the country has a large amount of underutilised regasification capability, which totals 58 bcm per year. This is enough to increase U.S. LNG supplies to Europe by approximately 70%. Around half of this capacity could be used to ship volumes through the Corridor towards Ukraine and Central Europe. However, in 'practice, Russian gas continues to occupy a large share of Turkish transit capacities through TurkStream. In a geopolitical environment that is becoming increasingly fractured, Turkey might not want to align itself with the interests?Europe or the U.S. The U.S. has stated that its LNG exports are essential to Europe's industrial growth, economic security and its emerging infrastructure needs. And the conflict in Iran shows that this is likely correct. Some might question whether it is wise to deepen this dependence, given the fact that the US has decided to continue the war in Iran even though they knew the possible disruptions to the global energy systems. Europe has few options. It may be worth it to reduce Moscow's influence on the EU economies that are most vulnerable to economic and political pressure. You like this column? 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Avolta, a duty-free retailer, reports a lower annual revenue than expected
Avolta, a Swiss duty-free retailer, reported on Wednesday a?slightly?lower than expected annual turnover in a difficult environment. Avolta, which operates shops in airports, cruise liners, seaports, and other tourist destinations worldwide, reported a core revenue of 13.72 billion Swiss Francs ($17.63 billion) for 2025. This is up from 13.47 a year ago, but below analysts' expectations of 13.81 billion Swiss Francs according to a Vara Research?poll. In a press release, Chief Executive Officer Xavier Rossinyol stated that "even in a complex 'external' environment, such as the recent conflict affecting certain parts of Middle East, our size, diversification, and clear strategic directions give us confidence." The escalating 'Middle East conflict' has sent the global markets into a tailspin. It has also significantly dampened investors' economic optimism, as they fear that it will cause an oil price shock and raise inflation. The company confirmed its medium-term goals. It said it would propose a dividend?of 1.15 Swiss Francs per share for 2025. This is up from 1.00 Swiss francs an year ago.
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New York Times Business News - March 11, 2019
These are the top stories from the business pages of the New York Times. ? The?story has not been?verified and the?report does not guarantee their accuracy. Boeing has said it will delay delivery of certain 737 Max jets while it fixes a wiring problem, but that the delay won't prevent it from meeting its sales goal for 2026 of 500?Max planes. YouTube has added a tool that allows government officials, candidates for political office and journalists to report videos where artificial intelligence is used to display their likeness. - 'USA Today has named Jamie Stockwell as the new leader of its Newsroom. She is a former editor for The Washington Post and The New York Times. (Compiled by Bengaluru newsroom; Editing by Sonia Cheema) - On Wednesday, the Trump administration plans to resume?the Global Entry Program. This comes just a few weeks after the program was paused because of a partial shutdown of the Department of Homeland Security. (Compiled by Bengaluru Newsroom; Editing done by Sonia Cheema).
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Cathay Pacific reports 9.5% increase in annual profits on strong passenger demand and cargo demand
Cathay Pacific Airways announced a 9.5% increase in full-year profits on Wednesday, driven by a'strong passenger traffic recovery' and a robust cargo demand. The airline also said it would be increasing capacity this year, despite the geopolitical uncertainty. Hong Kong's flagship carrier's net profit topped HK$10.83billion ($1.38billion) in the year ending December 31. This was higher than the LSEG SmartEstimate prediction of HK$10.05billion and exceeded the HK$9.89billion recorded in 2024. Cathay Chairman Patrick Healy stated that the airline expects to increase passenger capacity by 10% this year, as they add frequencies and destinations to their network. This will also boost cargo capacity. The airline is facing headwinds due to the 'ongoing Middle East conflict', which has disrupted global operations and increased jet fuel prices, leading some airlines, including United, to increase fares and fuel surcharges. Healy stated in a press release that "the current global geopolitical climate is volatile and causes unexpected shifts in cargo and passenger traffic flows, as well as jet fuel prices." In '2025, revenue grew 11.9% to HK$116.8bn. This was largely due to a 15.8% increase in passenger revenue. The carrier carried 28.9?passengers in the year. This is a 26.5% increase from 2024. They achieved an 85.2% load-factor. Cathay has now made a profit for the third year in a row after?three years? of losses? due to the pandemic. During this time, it had also made?heavy layoffs?. ($1 = $7.8261 Hong Kong Dollars) (Reporting and editing by Jamie Freed; Additional reporting from Sameer Manekar, Bengaluru)
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South Korea auditor finds cost cutting and faulty approvals on the Jeju Air crash scene
The state auditor stated that the South Korean transport ministry has been cutting construction costs for more than 20 years and approving unsafe airport safety structures. This was revealed in a report about aviation safety management following a Jeju?Air accident which killed 179 people. In the 'December 2024 crash, a 'Boeing 747-800 was hit by birds and then belly-landed at Muan Airport. It overran its runway, killing nearly everyone aboard after it hit a concrete support of a localiser. Two flight attendants were the only survivors. In a report released on Tuesday, the Board of Audit and Inspection stated that the Ministry built a concrete embankment 2.4 metres (7.9 ft) in height to be used as a localiser (a landing guidance system) at Muan Airport 'to reduce earthwork costs without properly reviewing relevant rules. According to international standards, localisers should be designed so that they can break apart easily upon aircraft impact. It is responsible for the construction of airports. The ministry transfers the operation to Korea Airports Corp. (KAC), but remains responsible for safety certification. The auditor found that the ministry approved 14 localisers which were not compliant at eight airports, including Muan Gimhae Jeju. The auditor also stated that the ministry approved inspections and operating permits for up to 22-years, erroneously finding that frangibility standards were met. The report identified wider shortfalls in the prevention of bird strikes and other aspects of management of air safety, and informed the Ministry of 30 cases of procedural or wrongdoing failure. The Ministry of Land and Infrastructure and Transport "humbly" accepted the findings, and said that it would follow up with strict measures including localiser improvements and bird strike prevention. We were unable to reach the spokespersons of KAC or Jeju Air for a comment. A separate government-commissioned report ?found the crash might not have been deadly if there had ?not been a concrete embankment at the end of the runway, an opposition lawmaker said in January, citing a simulation ?contained in the report. Public disclosure of a full "investigative" report is still pending. It has missed the deadline of one year for the release a progress report. Since the crash, Muan Airport has been closed. When it will open is not known. (Reporting and editing by Ed Davies, Christopher Cushing, and Joyce Lee)
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Balcazar: Gas pipeline in Peru to be repaired this weekend
Jose Balcazar, the Peruvian president, said on Tuesday that the repairs of the main natural gas pipeline in the 'country should be 'finished' on Friday. This will allow natural gas supplies to return to normal this weekend. It could also bring the worst energy crisis the country has experienced in the past 20 years to an end. Transportadora de Gas?has worked to repair the Cusco Megantoni 'district' pipeline since early March when the rupture caused the government to impose emergency measures. Balcazar said that during a press briefing, the company anticipates reopening of natural gas supply on Saturday and distribution to be restored on Sunday. TGP's pipeline failure, which is the backbone system that supplies almost half of Peruvian electricity and the majority of LPG, forced gas rationing. This has pushed up energy prices, and exposed long-standing weaknesses in the Andean country's energy system. Balcazar said that in-person classes at schools and universities will'start back on Wednesday', after the government announced virtual classes due to rationing this week. Balcazar was a newcomer to the job, having been appointed by Congress in February following the ouster of his predecessor. The country is set to hold presidential elections on 12 April. Reporting by Marco Aquino; Writing by Brendan O'Boyle; Editing by Daina-Beth Solomon and Natalia Siniawski
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Local police in Switzerland say that at least six people have died in a bus fire.
A bus fire in a small Swiss town on Tuesday resulted in at least six deaths, prompting police to open a criminal probe. The Fribourg police confirmed that the bus was engulfed by flames while driving on a road near Kerzers. This town is located in the canton Fribourg and is about 20 kilometers (12 miles) from the Swiss capital Bern. Frederic Papaux is a spokesperson for the Fribourg Police. The police said that three injured persons were transported to hospital. Papaux reported that passengers escaped the bus in a panicked state, and were injured. No other vehicles were involved. The video shows the remains of the car after the fires have been extinguished. Papaux could not confirm unverified reports on social media that a passenger on the bus poured gasoline onto themselves or how the fire started. Guy Parmelin, the Swiss president, expressed his condolences to the victims and confirmed that an investigation was underway. In a statement posted on X, he said: "I am shocked and saddened that yet again people lost their lives in a serious Swiss fire." A fire in a Swiss ski resort called Crans Montana killed 41 people, injured 115 and shook Switzerland. Reporting by Olivia Le Poidevin, Editing by Neil Fullick
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La Prensa reports that China's COSCO Shipping has suspended operations at Panama's Balboa Port.
Local newspaper La Prensa on Tuesday reported that the Chinese shipping and logistics conglomerate COSCO Shipping has halted operations at the Balboa Port at the entrance of the Panama Canal. Could not immediately confirm the report. COSCO published a notice to clients, which was published by La Prensa. The company stated that empty containers should be returned to the Colon Container Terminal or the Manzanillo International Terminal in Colon Province. The newspaper reported that COSCO had not specified the reason for its suspension, or whether it was temporary or permanent. This move comes after a ruling by the Supreme Court of Panama in late January that canceled 'key port' contracts held by Panama Ports Company, a subsidiary owned by CK Hutchison from Hong Kong. APM Terminals - a Maersk unit - recently started 'temporary' operations at Balboa for a period of up to 18 months.
Analysts see a smooth transition after IndiGo's CEO quits
IndiGo shares rose Wednesday after the resignation of CEO Pieter Elbers. Analysts expected a smooth transition, despite the crisis last year.
After a 21.4% decline since early December, when it cancelled thousands flights, the?stock increased as much as 3.0% on that day to reach 4,512.90.
In a recent note, Jefferies stated that leadership transitions are usually smooth and backed by founder oversight. The brokerage cited operational stability amid the Middle East Crisis, clarity about summer schedules, and progress in?CEO successions as key factors for the near future.
HSBC stated that the airline 'is not expected to change its strategy in a major way,? with Bhatia likely focusing on operational efficiency and boosting the airline's reputation.
IndiGo, the company that controls about 65% of the market in India, one of the fastest growing aviation markets in world, was forced to cancel 4,500 flight in December because it failed to properly plan for "pilot rest and duty" rules. This left tens thousands of passengers stranded.
Elbers was reprimanded by regulators later for "inadequate oversight of flight operations and crisis-management."
Bhatia, in an internal memo describing his new role, referred to the December cancellations as the worst crisis in the 20-year history of the budget carrier.
On Tuesday, the global airline stocks stabilised after U.S. president Donald?Trump stated that the war could be "over soon". Fuel is typically between 20-25% of airline operating costs. (Reporting and editing by Sumana Naandy in Bengaluru. Urvi Dugar is reporting from Bengaluru.
(source: Reuters)