Latest News
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FT reports that Germany has scrapped plans to build F126 Frigates
The Financial Times reported that Germany is planning to scrap a multi-billion euro project to build 'F126 'frigates. This could be a major blow to Rheinmetall as it hopes to win its largest contract. The report, citing two sources familiar with the issue, said that Defence Minister 'Boris Pistorius' and other officials informed senior MPs and industry officials of their intention to abandon plans for six F126 frigates. According to a report, the?country plans to purchase eight smaller MEKO A200 frigates from rival warship manufacturer TKMS instead. A request for comment was not immediately responded to by the German Defence Ministry or Rheinmetall. Armin Papperger, CEO of Rheinmetall, said that the company was preparing to sign a contract to take over the F126 program from Dutch shipbuilder Damen in the second quarter. The F126 frigates are capable of striking targets both above and below water.
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Train service resuming after nationwide IT disruption fixed, German railway operator says
Deutsche Bahn announced in a press release that train service was restored across 'Germany early Wednesday morning after a nationwide disruption of the digital railway radio system had been resolved. A spokesperson for the company stated that "our IT experts have been working non-stop" to resolve 'the issue. They have also succeeded. Services are now slowly resuming. Earlier, Deutsche Bahn halted all trains, citing a problem with the Global System for Mobile Communications for Railways (GSM-R), the main communication device between train drivers and traffic control centers. Deutsche Bahn stated that services may still be limited and it 'would 'issue vouchers for taxis and hotels to passengers, as well as 'offering replacement transport when?possible. The cause of the incident was not disclosed by Deutsche Bahn. Reporting by Christoph Steitz, Christine Uyanik, and Christian Kraemer, Editing by Franklin Paul Jamie Freed, and Stephen Coates
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FedEx expects revenue to rise 11% by 2026, but shares fall after margin drop
FedEx beat estimates for its quarterly profits?and projected an 11% increase in revenue by 2026. However, shares fell 5.7% after a margin drop in the core express segment. Delivery giant also predicted earnings per share between $16,90 and $18,10 for the year. It has shifted its fiscal year from May to coincide with the calendar, instead of its previous year-end. Analysts are still working on'models' that will allow them to compare the new forecast with their previous one. It also follows its June 1 spin-off of its freight trucking division, FedEx Freight. This is part of a multiyear effort by FedEx to streamline its operations and reduce costs. FedEx and UPS have to navigate the changing U.S. Trade Policies, including the ending of duty-free shipments for "de minimis", low-value e-commerce from China-linked discount retailer Shein?and Temu. This has had a negative impact on volumes. LSEG data shows that while its adjusted profit for the fourth quarter of $6.31 surpassed analysts' estimates of $5.96 but margins at its Federal Express core segment dropped to 7.7% compared to 8.4% a year ago as employee costs, fuel costs and outsourced transportation costs rose. Strong domestic demand helped boost quarterly revenue by 12.6%, to $25 billion. This was higher than the $24.04 billion expected. FedEx announced it would also buy back up to $1 billion worth of shares in 2026. Wall Street is focusing on the performance and results of FedEx's package delivery business. It is experiencing a?softness? in ecommerce, along with emerging strength? in the premium overnight business. FedEx's core segment, express, reported a revenue increase of 14%. The freight trucking division's revenue grew by 5%. Federal Express's segment operating results improved in the third quarter due to higher U.S. domestic package yields and International Priority Package yields, the company stated in a press release. Reporting by Nandan Mandyam from Bengaluru, and Lisa Baertlein from Los Angeles. Editing by Vijay Kishore.
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FedEx expects a 11% increase in revenue by 2026 after strong fourth-quarter profits on pricing
FedEx, a global delivery company, said that it expects its revenue to increase?about 11 percent and earnings per share to be in the range of 16 to 18 dollars. This comes after reporting on Tuesday a higher profit for the fourth quarter, helped by increased rates. FedEx's fiscal year has been aligned with the calendar. The fiscal year of FedEx ended on May 31, previously. This comes just weeks after FedEx Freight was spun off on June 1, as part of a multi-year effort to streamline its operations and reduce costs by billions of dollars. FedEx reported an adjusted profit per share of $6.31 for the quarter ending May 31 compared to $6.07 one year earlier. The quarter's revenue increased 12.6%, to $25 billion. This was largely due to strong domestic demand. FedEx and UPS are navigating the evolving U.S. Trade Policies, including the end of U.S. Duty-Free, "de minimis", low-value e-commerce from major China-linked discount retailer like Shein and Temu. This has had a negative impact on volumes. Wall Street is focusing on the performance of FedEx's package delivery business. It is still experiencing a softness in ecommerce, while gaining strength in its premium overnight business. FedEx's core segment, express, reported a 14% increase in revenue. The freight trucking division's revenue increased by 5%. Federal Express' segment operating results have improved in the last quarter, due to higher U.S. domestic package yields and International Priority package returns," the company stated in a press release. The world's biggest?air cargo operator reported an increase of?66% in fuel costs during the third quarter. It has a fleet of 391 turboprops and 391 cargo planes. (Reporting from Nandan Mandayam, Bengaluru; Lisa Baertlein, Los Angeles; editing by Vijay Kishore).
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El Nino could increase gas exports from Argentina to Brazil according to OLACDE's executive
A representative of the 'Latin American and 'Caribbean 'Energy Organization' (OLACDE), said that the El Nino phenomenon could cause Argentina's natural-gas sales to 'Brazil' to increase in the spring months in the Southern hemisphere. A strong El Nino will increase rainfall and frequency in Argentina. This would allow for greater use of hydroelectric power plants. The phenomenon will cause drought in western Brazil. This will require more natural gas to produce electricity at thermal power plants. Guido Maiulini of the strategic advisory department told Friday that Argentina may be able to export surpluses due to El Nino's impact on the Parana River. OLACDE is a regional organisation of 27 countries. Maiulini didn't estimate the amount that?gas sales, which are currently done ad-hoc, could increase. For the first time last year, Argentina exported gas to Brazil through Bolivian pipelines from its Vaca Muerta shale. REGIONAL GAS MARK Argentina is developing Vaca Muerta, located in the western part of the country. This area holds the second largest unconventional gas reserves worldwide and the fourth largest oil reserves. According to OLACDE a greater regional integration of gas is possible due to Vaca Muerta’s unconventional?resources? and?unmet demands in certain markets. OLACDE estimates that expanding regional trade would require an investment of $18 billion for infrastructure in 'Brazil and Uruguay, Paraguay and Chile, Bolivia, Argentina, Bolivia, Brazil, Uruguay. This includes a new gas pipeline connecting the Argentine province Santa Fe with 'Brazil Porto Alegre' and modifications to an existing pipeline linking Argentina to Bolivia. Maiulini said Argentina is currently negotiating with Brazil new gas export deals using pipelines located in Bolivia. (Reporting and writing by Eliana Razewski, Leila Miller, Editing by Rod Nickel).
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UN agency: UN evacuation plan for ships stranded in Gulf underway
The United Nations shipping agency announced on Tuesday that an evacuation plan is in place to allow hundreds of ships with 11,000 seafarers stuck?in?the Gulf to sail through the Strait of Hormuz. This follows the agreement between Iran and the U.S. to end hostilities. A spokesperson for the United Nations said, "We've started to contact the ships in order to begin the evacuation." The International Maritime Organization's (IMO) spokesperson said that the evacuation would begin as soon as possible. The IMO stated that it had?secured the necessary safety assurances and verified conditions for safe sailing. In a press release, IMO Secretary General Arsenio Dominguez stated that "this?large-scale?operation will be carried out closely in cooperation with Iran and Oman as well as all other coastal'states' in the region. The United States, too, are involved." Oman's Defence Ministry said in a separate advisory that the evacuation process, under the IMO Plan, which has been discussed for months, would be phased. It said that "given the elevated collision risk in the current climate,?a gradual and managed evacuation of vessel traffic was required." The Omani Ministry said that the "so-called Traffic Separation Scheme" was not safe to use at the moment and two temporary routes north and south could be used as evacuation routes. The advisory from the Ministry stated that "parties coordinated by IMO will contact each vessel individually to inform them of the?transit date they have been assigned." The scheme adopted by the IMO in '68 established routes through Iranian - and Omani waters. The waters surrounding Hormuz are a major risk due to floating mines. (Reporting and editing by Gareth Jones, Andrew Cawthorne and Jonathan Saul)
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Nord Stream 2 pipeline owner sues EU over Russian gas ban
A public document revealed that the owner of the Gazprom controlled Nord Stream 2 pipeline has filed a lawsuit against the European Union at the second highest court in the bloc, attempting to overturn the EU's phase-out of binding gas imports from Russia. In response to Moscow's invasion of Ukraine in 2022, the EU passed a law requiring all Russian gas imports to cease by late 2027. This would cut off all ties with Europe’s former largest supplier. The ban prevented the revival of the Nord Stream System - two double pipes under the Baltic Sea built by Russia's Gazprom state-controlled company to deliver 110 billion cubic meters of gas to Germany annually. Both structures were damaged by an explosion that occurred in August 2022. Russia accused Ukraine of the attack. Kyiv denied any involvement. Nord Stream 2 AG (the Swiss entity that owns a pipeline of the same name) has filed a suit before the EU General Court to overturn the EU ban. They claim that the EU ban is effectively securing the pipeline. Gazprom owns Nord Stream 2 AG. The applicant argues that the regulation essentially denies it the ability to use its pipeline commercially. The lawsuit stated that this is de facto expropriation, without compensation. Gazprom didn't immediately respond to an inquiry for comment. Both the European Parliament's and the Council of the EU's spokespeople declined to comment on the lawsuit. Nord Stream 2 is completed. However, Germany halted it just before Russia invaded Ukraine. The pipeline never began to operate. Nord Stream 1 has been delivering gas to Germany since more than a decade. The EU enacted its Russian gas embargo using a law which?required the approval of a strengthened majority of EU member countries. This was done to override?opposition by Hungary and Slovakia. Nord Stream 2 AG argued in its lawsuit that the Russian gas embargo was a sanction like measure that required approval from all EU member states. The lawsuit was filed on April 27th and published last week in the official journal of the EU. After the explosions, only one of the four pipelines - a part of Nord Stream 2 - remained intact. This month, Russian President Vladimir Putin stated that the pipeline could begin pumping gas "tomorrow." Before 2022, the EU will import around 40% of its gas. This dropped to 13% in the last year. (Reporting and additional reporting by America Hernandez, editing by Philip Blenkinsop & David Gregorio; Additional reporting by Kate Abnett)
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TotalEnergies CEO: We must invest in Gulf pipelines so as to avoid Hormuz.
By America Hernandez PARIS, June 23. CEO Patrick Pouyanne told an energy conference held in Paris that TotalEnergies must 'prioritise' the construction of pipelines to?export gas and oil?from the Middle East without having to send ships through the Strait of Hormuz. Pouyanne was asked to share his lessons learned over the past three-months of the Iran crisis, as Total is the major oil company most exposed to the Middle East. The Iran war has crippled the waterway that carries a fifth of the world’s oil to global markets. "The Strait of Hormuz is a real threat. We must act." "There is only one way to ensure that it does not remain a danger: we must invest into pipelines in order to bypass the Strait of Hormuz, this is our absolute priority," said he. Pouyanne also mentioned other export routes through Syria, Abu Dhabi and Iraq. Pouyanne explained that if you were in Iraq, and needed to reach the sea you could either go through Kuwait or Saudi Arabia or head towards Syria or Turkey. He said that Total found oil in Iraq in 1929 and built a?Iraq to Syria pipeline in just six years. The?world's biggest tanker of the time transported the oil across the Mediterranean, to a refinery in southern France. He added, "If our predecessors were able to do it 100 years ago, I think we should be able to do it again today."
Kenya signs $1.2 Billion deal with Chinese firm for Nairobi Airport expansion
Davis Chirchir, Kenya's Transport Minister, announced on Tuesday that the government of Kenya has signed a contract with China Road and Bridge Corporation for an expansion of Jomo Kenyatta International Airport. The agreement is worth 154.2 billion shillings ($1.2 billion).
East African nation plans to?triple the capacity of the?Nairobi Airport from 7.5million passengers per year to 22million. The project was previously stopped last year when Kenya cancelled an agreement with India's Adani Group for 2024 following the indictment of its founder?in the United States.
Chirchir posted on his X page that the project scope included the construction of a terminal building, modernization of the existing infrastructure and improvement of the airside and 'landside operations.
Kenya aims to maintain its position?as regional aviation hub, as countries such as?Ethiopia? and Rwanda?invest heavily in the construction of new airports to attract airlines?and travellers?
Last week, Chirchir stated that the government had appointed Africa’s Trade and Development Bank and?Africa Finance Corporation as the financial agents for the project.
(source: Reuters)