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Kremlin: EU should consider Nord Stream explosions when discussing Ukrainian membership
The Kremlin stated on Friday that the European Union must consider Ukraine's suspected role in blowing up a Nord Stream gas pipeline in September 2022, when deciding whether or not to grant EU membership for Kyiv. Dmitry Peskov, the Kremlin's spokesman, was commenting on German federal prosecutors charging a former Ukrainian officer with being involved in the blasts. The man, identified only as Serhii, was accused of co-perpetrating a war crimes and acting for?Ukrainian government entities. The authorities in Kyiv stated on Thursday that they didn't have enough information about the case to be able to answer in detail the allegations of?German prosecutors. Peskov stated that the case demonstrated the involvement of the Ukrainian government in what he termed "a terrorist attack targeting critical European Union Infrastructure". Peskov said to reporters that this was a very significant case and all EU countries should take it into consideration when discussing the prospects for Ukraine's EU Membership, closer ties with EU and other issues. The explosions caused damage to the Nord Stream 1 'pipeline, a 'vital route for Russian exports of gas to Europe. They also damaged the Nord Stream 2 branch which was yet to be put into service. Moscow has accused Kyiv for years of being responsible for the explosions that followed Russia's "full-blown" invasion of Ukraine on February 22, 2022. Kyiv has denied that it ordered, carried out or was officially involved in these explosions. Russia and Western nations have called the explosions sabotage. (Reporting and editing by Gareth Jones, Dmitry Antonov)
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Wall St Week Ahead: Investors watch for Fed clues and earnings signs, as tech wobbles
Investors will be looking for clues to the possibility of an impending rate hike and the early signs of a crucial earnings season in the coming weeks as they gauge the strength the U.S. Stock Market's rally. The second half 2026 began 'this week, much like the first half did.' Heavyweight technology shares were swaying the major indexes. The minutes from the Federal Reserve's meeting last month, along with earnings from Delta Air Lines, PepsiCo and other companies, may provide new signs for a market that has been shaky in recent weeks. The market has seen gains over the last few months thanks to tech shares, and in particular semiconductors. The benchmark S&P 500 rose 14.9% during the second quarter, which ended on Tuesday. This was its best quarter since 2019. In recent months, this group has seen dramatic swings, with some steep drops to close out the week. Over the last month, other sectors such as financial, industrial, and healthcare stocks have done well, giving investors hope of a healthy market rotation. Joe Mazzola is the head trading and derivatives strategy at Charles Schwab. He said, "I'll be watching to see if that broadening persists." If you start to see a prolonged pullback of some technology winners, will that mean the market is going backwards? INVESTORS GET RATE INSIGHTS FROM FED MINUTES. The interest rate outlook has changed from the expectations of equity-friendly rates cuts at the start of the year to the projections of increases in the months ahead. These expectations of rate hikes were slightly reduced on Thursday after a less-than-expected job report. Following the Federal Reserve's meeting last month, which was led for the first time by Kevin Warsh as its new chairperson, hawkish bets were on the rise. He said the Fed would be focused on price stability and inflation that is above its 2% target. The minutes of that meeting will be published on Wednesday. Warsh warned that the Fed would not 'hold the hand of the market any longer and had thrown out its forward guidance as to what it might do in the short term. This could make the minutes of future Fed meetings more significant. Matthew Miskin is the co-chief investment strategy at Manulife John Hancock Investments. Investors and markets will be asking: what is the new Fed Chairman and updated (Fed Policymaking Body) looking for in order to determine the future path of interest rates? Investors said that a key issue was how Fed policymakers viewed the inflationary impact on energy prices. Prices had declined in recent months due to the Iran war spikes. The extent of the divisions among Fed officials is another important topic. Bonds can be more attractive to investors than stocks if interest rates rise. This is because higher interest rates increase borrowing costs for both consumers and businesses. LSEG data showed that Fed fund futures were trading at roughly equal odds late Thursday night. The central?bank is expected to raise rates before its meeting in September. The Labor Department's data on Thursday showed that U.S. employment growth was slowed dramatically in June. This eased some concerns about a rate hike. "If the Fed does become more restrictive and begins a tightening process, this is a risk for the market and valuations," James Ragan, director of investment research and co-CIO at D.A. Davidson. "I think it's important to get more information about what the Fed is thinking. SEASONAL PIVOTAL EARNINGS The release of data on manufacturing and services could clarify the inflation trend in a week that is relatively light for U.S. Economic Data. In recent months, stocks have recovered from the declines caused by the U.S./Israeli conflict over Iran. The S&P 500 has risen more than 9% since 2026 while the Nasdaq Composite, which is heavily tech-heavy, has risen 11%. The market's rise was fueled by the surprising strength of first-quarter corporate profit. This has raised the bar as the second-quarter report season heats up this month. Next week, two early reports will be released: Delta snacks and beverage maker PepsiCo. They offer different perspectives about consumer spending trends. According to LSEG, IBES, the S&P 500 is expected to grow earnings in the second quarter by over 24%. Keith Lerner is the chief investment officer of Truist Advisory Services. He said that if the north star is earnings, then the most important thing to do for earnings season is to confirm the earnings trajectory this year, and ensure the upward momentum will continue into next year. (Reporting and editing by Michelle Price, David Gregorio, and Lewis Krauskopf)
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Electric school buses are used to support the fragile US power grids in summer heat
The batteries in over 200 electric school buses in the United States are helping people to find relief when temperatures soar. When temperatures soar, you can find relief. Yellow electric school buses from California to North Carolina are returning power to the grid, relieving some of the strain during summer heatwaves. More than a hundred more buses are expected to be online. Power plants are dwarfed in terms of the energy stored by school buses and other electrical vehicles. But attempts to use their batteries to send power to electrical systems (known as Vehicle-to-Grid, or V2G) show how EVs can strengthen strained power grids. According to the World Resources Institute (WRI) Electric School Bus Initiative, fully deployed V2G project involving approximately 230 of the country's 6,700 electric busses can now supply up to 8 megawatts-hours at any given time. PJM, which is the largest U.S.'regional grid,' will require more than 160,000 Megawatts to meet the peak demand of 67 million Americans this week. This week, the U.S. has experienced record-breaking heat. It's still very early. Steve Letendre is a senior advisor at the Vehicle Grid Integration Council, a trade association. Some electric school buses have batteries that are larger than 200 kilowatt hours. They can recharge when the demand is low, and then send electricity back to the utility. During the summer months, they are usually unused. WRI reported that at least 31 utilities in 21 U.S. States are involved with V2G projects. WRI data indicated that the number of electric buses in use should double over the next few years to 14,625, which is 3% of all fleets. Many of them will be V2G enabled. To make a significant difference, the capacity of V2G electric bus projects must grow exponentially. ICF, a consulting firm, forecasts that the U.S. grid will add 445,000 megawatts by 2030. This is partly due to the boom in data centers. TECHNOLOGY FACE MULTIPLE BARRIERS V2G projects are faced with a number of obstacles, including upfront costs and the lack of a universal V2G standard. Standards and regulatory frameworks are still years away. Owners and operators of electric vehicles are concerned that the repeated charging and discharge of a vehicle's battery may accelerate its degradation and that V2G use could invalidate a warranty. Electric buses emit no tailpipe pollutants, but critics who oppose vehicle electrification or government/public investments in alternative energy projects claim that they could tax the grid. Many schools use solar energy to charge their devices. GOLDEN STATE BUS INITIATIVE California is leading the U.S. when it comes to developing and adopting V2G technology for school buses. The largest project in the country is the Oakland Unified Schools District where Pacific Gas & Electric, and transit provider Zum, operate a fleet of 74 buses that generate 2.1 gigawatt hours of electricity per year. Next month, a separate Zum project in collaboration with the San Francisco Unified Schools District will?launch. The project is expected to?surpass the Oakland project with a fleet of 104 starting buses that return about 3 gigawatt hours of energy per year during peak times. In 2027-2028, the fleet will double to 238 buses. California requires that all electric school buses funded by state programs have Vehicle-to Grid capability. The state is also funding V2G infrastructure projects and has the largest utilities in California -- PG&E, Southern?California Edison and others -- as partners. The Branford Public School district in Connecticut will be using 46 electric buses that are V2G capable by August. Cherokee Boys Club in North Carolina will operate 21 electric buses for Cherokee Central Schools, which are tribally run. Duke Energy has funded a V2G test program. Donnie Owle, the service manager at Cherokee Boys Club is working on an initiative to use?buses that are used as emergency shelters in schools as generators. Daniel Thomas, the director of administrative services for Glades County Schools in South Florida, says that he does not have any funding to support V2G, but plans to cool 13 Blue Bird electric busses when the next storm hits. Thomas: "We hope that it will never come, but Florida is Florida."
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Sources say that Russia is set to import North Asian jet-fuel amid fuel crisis
According to 'three sources who were briefed about the issue, Russia is preparing to import jet fuel via traders from Japan, as it 'confronts a fuel shortage - after Ukrainian attacks on its energy infrastructure. Two sources said that at least 200,000 barrels (of jet fuel) are expected to be loaded from Chiba in Japan in the first half July, and shipped first to South Korea. They added that the cargo will then be expected to be loaded onto another tanker, probably via a ship-to-ship transfer at South Korea's Yeosu Port before heading?to Russia. The final destination of the cargo was not immediately known. Sources declined to be named because they were not authorized to speak with the media. The Russian ministry of energy?didn't respond to a comment request. The South Korean Industry Ministry and the Japan Ministry of Economy, Trade and Industry didn't respond to comments immediately. Kpler ship tracking data revealed that a previous shipment of jet fuel by Russia was for 22,000 barrels?from Yeosu, South Korea in Febuary 2022. The cargo was delivered to Vladivostok in the Far East. Fuel crisis caused by drone attacks in Ukraine on Russian oil refineries, depots and refineries is disrupting Russians daily lives. Moscow has imposed'restrictions' on fuel purchases. Farmers have also warned that they may not be able to harvest their crops. Kpler data shows that Russian jet fuel exports to Turkey have dropped to about 13,000 barrels a day. Last year, Russia exported about 30 bpd. Reporting by Asia Energy Desk Additional reporting from Seoul Bureau Editing by Florence Tan & David Goodman
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Russian fuel crisis leads to rush for Chinese electric vehicles
A Moscow car dealer is struggling to meet the 'demand' for new electric vehicles imported from China, as drivers try to avoid a fuel shortage that has caused long queues and skyrocketing prices in much of Russia. In recent weeks, the escalating Ukrainian attacks on Russian energy infrastructure has caused gasoline and diesel to be restricted in many regions. According to calculations, retail gasoline prices have reached some of the highest levels ever recorded in Europe. The Russian EV market has been slowed by the harsh climate and distances in Russia. Some motorists are switching to EVs because of the rising fuel costs. EN Cars, a company that specializes in Chinese brands, sells two to three EVs a day. This is up from two to three a week just a few short weeks ago. He said that the demand for both budget and premium vehicles has increased since fuel prices have become more complicated. Sergei Udalov executive director of the analytical agency Autostat said that sales volumes of EVs, plug-in hybrids, and electric vehicles are increasing, but they remain low because manufacturers and importers weren't ready for this gasoline crisis and didn't have enough inventories. He said, however, that if this crisis persists, the sales of Chinese goods will grow significantly in the near future. SALES ACCELERATING - The showroom was filled with electric SUVs from Chinese automaker Geely. Fuel prices were up by more than 12% between January and April, which led to a rise in demand for EVs. Autostat reports that the top-selling EVs and hybrids in Russia are from Chinese manufacturers Geely Dongfeng GAC and Chery. Evolute is the top-selling EV in Russia, and is made from Dongfeng assembly kits. According to Autostat and Ministry of Industry and Trade, the number of plug-in hybrids sold in the five months of this year was 24,600, an increase of?125% on the previous year. Meanwhile, the sales of fully electric vehicles rose by 19%, to 4,460. Fuel shortages accelerated sales in June. According to Autostat's Sergei Tselikov, the number of plug-in hybrids registered last week was 1,754, up by nearly a third from the week before and almost 50% over the average weekly rate this year. According to the digital map service 2GIS, the number of charging stations in Russia increased by 20% between July 2026 and 2017. Vasiliy, a customer in the dealership said that he was happy to have already purchased a hybrid car and an EV. He said, "Especially under the current circumstances, I've had no problems at all." Though he added that he didn't expect the general interest to last. "I live on a farm in a private home. I installed my charging station at home. It is difficult to charge in Moscow. According to Autostat, EVs and plug-in hybrids only accounted for 4.3% of Russia’s total car sales last year. Russians are increasingly equipping their vehicles with special equipment in order to switch from diesel and gasoline to liquefied gas, which is more readily available and cheaper. Izvestia quoted the national association of gas fuel as saying that the use had increased by 35% between March and April last year. (Anastasia Lyrchikova contributed additional reporting. Writing by Alessandra Prentice. Mark Potter (editing)
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Sources say that MBK Actis and Bain are bidding for KKR Central Tank Terminal.
MBK Partners Actis and Bain Capital are among the bidders of KKR's Central Tank Terminal - a Japanese liquid storing company. The deal could be worth over $600,000,000 including debt. One of the sources said that binding bids must be submitted by August. Sources spoke under condition of anonymity as the matter is private. KKR Capital and Bain Capital declined comment. Actis stated that it does not comment on speculation about deals. MBK or Central Tank Terminal didn't immediately?response to a comment request. Central Tank Terminal stores and?handles liquid goods, including oil products, chemicals and other cargoes, near major Japanese port sites. KKR purchased Central Tank Terminal in 2021 from an affiliate Macquarie Infrastructure and Real Assets for an undisclosed amount. Central Tank Terminal provides storage, management and logistics services for liquid chemicals. According to its website, it also manages and designs tanks and loading equipment, leases storage, transport and equipment, and provides?truck transportation?services. According to its website, the company has sites in key Japanese ports including Kawasaki and?Yokohama?, Nagoya?, Osaka?, Kobe?, Hiroshima?, and Moji?. According to a separate website, the group has also a South Korean operation?through Central Terminal Korea (formerly?Taeyoung Industry). (Reporting from Yantoultra ngui in Singapore, Kane Wu in Hong Kong and Anton Bridge in Tokyo. Editing by Christian Schmollinger.)
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Lagarde will not rule out an early departure by the ECB
Christine Lagarde, President of the European Central Bank (ECB), said that it is still possible for her to leave before the end of her term in 2027 in order to "weigh in" on French politics. However, running in the French presidential elections next spring was not currently on Lagarde's agenda. In response to a French newspaper's question, "Would you rule out the possibility of leaving early to participate in French politics?" she replied: "It is possible." I think that the French debate on presidential elections needs to include a European perspective. Lagarde previously downplayed resignation rumours. She said that a "ship's Captain" would not leave in turbulent times as inflation soared due to an oil price spike triggered by the Iran War. She stated that her baseline was to "remain in the position until the end of her term at the beginning of October 2027." She did not say it again, but she seemed to be ruling out running for the French elections next spring. She said, "I will think about it" before adding: "I am joking." I don't believe that's on the agenda at this time. She said that her main task would be to "bring an argument for Europe into national politics". Lagarde stated that she would "speak with both a French and an European voice, because I am deeply both," regarding her potential role in the elections. "I would tell the students that France must play an important role in our continent's economic future. "Our economic prospects are uncertain without the European environment, anchoring and structure," she said. Balazs Koranyi is the reporter. Mark Potter edited the article.
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Chief Minister of Kerala, India says that MSC did not consult the state on its $1.4 billion port investment.
BENGALURU - The state's chief Minister said late Thursday that the MSC Group had not consulted Kerala about its $1.4 billion investment planned in Vizhinjam Port in partnership with Adani 'Ports' and 'Special Economic Area'. Adani Ports announced on Tuesday that MSC will acquire a 49 percent stake in the Vizhinjam port. This is expected to be 'the largest private foreign investment in India’s port infrastructure. The world's largest container shipping company, based in Switzerland, is?MSC. "I conveyed the State Government's strong resentment to the management of?Adani Ports and Special Economic Zone Ltd", Chief Minister V.D. Satheesan?stated?in a?post?on X. The government must approve any change to the shareholding structure of a concessionaire. This will be done strictly in accordance with the terms and conditions of the concession contract and the applicable regulations. Adani Ports didn't immediately respond to our request for comment. The shares of the company fell by as much as 1 % on Friday, and they were last down by 0.2% during afternoon trading. After the announcement, the stock gained?about?6% over the last three trading sessions. Vizhinjam, India's first deep-water container transshipment?port, is expected to handle domestic and region cargo at a cheaper cost than routing it through Sri Lanka. Adani Ports, a private concessionaire, is developing and operating this port.
Take Five: War and peace
Data releases are slowing down, earnings season is not yet underway and no major rate decisions are imminent. However, the markets will be kept busy by a NATO summit, Kevin Warsh's inaugural meeting as head of the Federal Reserve, and an uncertain oil price.
Rae Wee, Lewis Krauskopf, Amanda Cooper, Marc Jones and Alun John in London all give their take on the upcoming week.
1/ 'SCOURING FOR CUES' Investors will be looking for more clarity about the direction of U.S. rates in the coming week as they analyze the minutes from the latest Federal Reserve Meeting -- the first meeting under the new chairman Kevin Warsh.
The minutes of the June meeting will be examined on Wednesday to determine if there are any divisions in the central bank, and what policymakers think about the impact of the recent drop in energy prices. Investors interpreted the meeting as being surprisingly hawkish, and bets on rate increases increased following it. Warsh has stated that he will adhere to the Fed's inflation target of 2% and "disappoint anyone" who expects a loose monetary policy. PepsiCo's and Delta Air Lines' reports will give the markets an early look at a crucial second-quarter U.S. earning season.
NATO's TRUMP CARD On July 8-9, Turkey will host the leaders of the 32 NATO member countries as well as other nations from the Gulf. This is shaping up to a pivotal 2-day summit for a fraying military alliance. Last year's summit produced a historic?commitment by member countries to spend 5% of their GDP (except for Spain) on defence. Leaders are under pressure in Ankara to meet the commitments made at the last summit and avert new threats by U.S. president Donald Trump to pull out of the 77-year old Atlantic alliance. Mark Carney, the Canadian Prime Minister, is a strong advocate of a new NATO Bank. This news could be a welcome distraction from the usual money talks and worries about U.S. security.
The deeper and more difficult question is also there. Can an alliance built on consensus be as fast as it needs to be in order to meet the global challenges of today?
It's too calm...
You'd be blind and miss it if you blink. Oil futures have returned to the levels they reached 'before the war began in late February. Brent crude futures have fallen from a four-year peak of $126 per barrel in May to just over $70 today, following a rapid decline.
In 2022, just a few weeks after the Russian invasion of Ukraine, Brent futures for the front month were still 13% higher than pre-war prices, and crude oil delivery was 10% more expensive. The global inventory levels are not at their lowest, but need to be replenished after record-low drawdowns. Oil flows through the Strait of Hormuz in fits and start. The production facilities that were damaged in the war have not yet recovered to their original state. Few may have considered the risks of a further leg up in crude oil prices. The OPEC+ meeting on Sunday could provide some additional insight.
4/ EUROPE’S FACTORIES BUSTER The growing trade gap between China, the European Union and China is causing anxiety in Brussels where the EU’s trade chief just met with China’s commerce minister.
In the next few days, a slew of new data and events will help put this situation in context.
German and French data on trade for May will be released, along with industrial production in Germany - Europe’s traditional economic powerhouse. Investors and politicians are looking for signs that the ceasefire between the U.S.A. and Iran has boosted the industry. Volkswagen's decision to close four German factories, and cut up to 100,000 jobs, is a further indication of the state of manufacturing in the heart of Europe. These plans will be discussed by VW's supervisory council at its meeting on July 9, according to reports.
Join the Club The Reserve Bank of New Zealand announces their rate decision on Tuesday, and investors believe that they will join Australia's central bank in raising rates. Some brokerages have reduced their 'rate-hike predictions after the fragile U.S. Iran ceasefire brought oil prices?back to pre-war levels. However, inflation is expected remain above RBNZ target band for a while.
This strengthens the argument for tighter policies, even though they could result in further weakening of the labour market. According to the International Monetary Fund, New Zealand's recovery from the oil price shock and increased global uncertainty has been delayed.
In other parts of Asia, data on inflation due this week from China, Thailand and the Philippines could show further effects of the rise in energy prices resulting from the Middle East conflict.
(source: Reuters)