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Zelenskiy’s plane was almost struck by drone on Tuesday according to Norway PM
On Wednesday, Norwegian Prime Minister Jonas Gahr Stoere said that the 'plane taking the Ukrainian president Volodymyr Zelenskiy to Oslo - for the funeral of Norway's king - was almost?struck? by a drone as it took off from Moldova on?Tuesday. "His plane almost got hit by a drone when it was taking off from Moldova." Stoere said that this is what he faces. He did not specify his source or the distance the drone was from the plane. Stoere made no comments about Zelenskiy or his plane. The arrivals and departures of Chisinau Airport were temporarily suspended on Tuesday due to two?Russian 'drones' that had entered Moldovan airspace. Flightradar24 data shows that several flights headed for?the city's capital landed in airports outside of Moldova or were placed into holding patterns. A drone crashed in a field and ignited a fire. The second drone continued into Romanian airspace. The Moldovan president Maia Sandu condemned the intrusions and called them a "serious danger to people's life". She also condemned an attack at a border crossing between Ukraine, which killed two people. Zelenskiy marched behind the coffin of King Harald V in Oslo on Wednesday. He was joined by other heads of state. After the funeral, he left Norway. Stoere said in a statement on Tuesday he would be meeting the Ukrainian leader that evening. Their discussions will focus on Ukraine’s air defence. Zelenskiy said that while he was visiting Norway, 'there would be discussions with companies participating in the Freyja initiative for creating a European Anti-Ballistic System.
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EIA: US power consumption will surpass previous records in 2026 and '27, as AI usage surges.
?U.S. The U.S. Energy Information Administration stated in its Short-Term Energy Outlook on Wednesday that power consumption would reach record levels in 2026-2027 due to the AI-hungry data centres and electrification. The EIA predicted that the power demand would rise from 4,195 billion kilowatt hours (kWh) at a record in 2025, to 4,270 billion in 2026, and 4,349 trillion?kWh by 2027. The demand for electricity is increasing as more homes and businesses are using less fossil fuels to heat and transport their vehicles and use more electricity. EIA's report stated that despite a pause on connecting new data center projects to the grid in Texas, the West South Central Region accounts for the majority of the total electricity sales growth. According to the EIA, power sales will reach?1,527 kWh in 2026 for residential customers, 1,542 kWh commercial customers and 1,059 kWh industrial customers. These forecasts are compared to all-time records of 1,515 billions kWh in 2025 for residential customers, 1,493 for commercial customers and 1,064 for industrial customers. The EIA says that as renewable energy output increases, coal's share in power generation will decline from 17% to 16% by 2025, and then to 14% by 2027. Natural gas' share will remain at 40% until 2026, but will drop from 2025. According to the outlook, renewable energy will increase from 24% to 25% by 2026, and to 27% by 2027. Nuclear power will remain at 18% until 2026, and then to 20% in 2027. This is the same as it was in 2025. Gas sales for residential customers will drop to 12.5 billion cubic foot per day in 2026, while commercial customers will increase to 9.5 billion cubic feet a day. However, industrial customers and power generators are expected to rise to 23.9 bcfd. These figures compare to all-time records of 14,3 bcfd for residential customers in 1996, 9.9 for commercial customers in 2025, 23.8 for industrial customers in 1973, and 36,8 for power generation in 2024.
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Ariane, Europe's space rocket, wins Amazon Space Gathering boost
Arianespace, the operator of Europe's flagship rocket programme, announced on Wednesday that Amazon 'Leo' has ordered six more launches using Europe's 'Ariane 6' launcher. Amazon has now ordered 24 Ariane launches by 2031, following the announcement made at a space conference in Paris. ArianeGroup's commercial arm announced that new flights on the Ariane 64 high-capacity version will start in 2029. Emmanuel Macron, French President, praised the deal during the opening of a 2-day space summit that was boycotted by a number of?top U.S. companies, including Blue Origin, owned by Amazon founder Jeff Bezos. This followed what sources described last week as White House pressure regarding the summit's Europe led agenda. Amazon plans to offer broadband internet worldwide with its network of low-Earth orbit satellites. This will compete against SpaceX's Starlink which boasts millions of users around the world. Amazon relies on the Atlas V rocket, a joint venture between Boeing and Lockheed Martin, to launch its satellites into space. The deal on Wednesday shows that Europe is increasingly reliant on its prime launcher, as the U.S. faces a supply shortage. However, Elon Musk's SpaceX remains the dominant European launch company. Arianespace has launched 100 Amazon Leo satellites on three Ariane 6 missions this year. Amazon was previously required to launch half its initial 3,232 satellites before this summer. However, that requirement was waived in June when the company cited shortages in supply. Arianespace announced earlier on Wednesday that it would announce new business, bringing the total number of "extra launches" to 10. A spokesperson stated that it currently has about 30 orders, with slots in 2029 or 2030.
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Delta is urged to be neutral in the unionization effort by Democratic Senators
Two?Democratic Senators on Wednesday urged Delta Air Lines' CEO Ed Bastian to stay neutral in the ongoing attempts by some airline.flight attendants unionize. In a letter seen by the?Senators, Elizabeth Warren and Ed Markey, they said that flight attendants at the Atlanta-based carrier have been trying for years to organize. They argued that management's attitude is "threatening future pay and benefits to flight attendants if they decide to organize", and called it inappropriate. Delta welcomed discussions with senators. Delta fully supports our employees' rights to decide if union representation is the right choice for them, and maintains a strict non-interference policty," it said. The airline added that they "respect every employee's decision and do not tolerate harassment, bullying or intimidation, regardless of whether their views about union representation." In June, more than 170 House members also wrote to Bastian to urge him to remain neutral regarding the efforts of flight attendants, fleet service workers and technicians to organize. They wrote: "We encourage Delta to respect these workers' rights by adopting a neutrality contract that commits the company to following the law, not interfering in union organizing activities, and refraining from intimidation, retaliation or any other illegal interference." Delta employees began a coordinated campaign to organize a trade union in November 2022. "Delta Flight Attendants have exercised their right to organise for 'years and leading coordinated union campaigns ever since the 1990s," Warren & Markey wrote. They cited reports that 'Delta said joining a Union would jeopardize benefits of its employees and published an official Delta anti union website. The senators pointed to emails sent by Delta last summer, in which the flight attendants were told that signing union authorization cards could cause "inner chaos" within the company. They said workers can now organize without fear or interference under the law. Once a majority has voted in favor of the union, it can request a representation election at the National Mediation Board. Delta's Pilots are represented by the Air Line Pilots Association.
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Bombardier wants to fill 500 US job openings despite Trump's threats
Bombardier continues to recruit American workers for 500 "open jobs" in the U.S. Some of these jobs will be for a new Fort Wayne service center, Indiana. It is scheduled to open mid-November. Sources in the industry said that despite Trump's threats to ban the Montreal-based company, Bombardier is still able deliver planes to U.S. clients despite the trade dispute between Canada and the U.S. escalating. The latest round of U.S. retaliatory actions against Canada, which was introduced on Tuesday, did not affect the aerospace sector. On Wednesday, a?White House official stated that the Trump administration was preparing options and actions regarding Bombardier. Trump agreed last year to reinstate the multi-decade agreement that grants tariff-free status for airplanes and component parts. Some Republican legislators have reached out to the White House because they are concerned that Bombardier may lose access to one of its largest markets, which represents about half of their sales. U.S. Senator Roger Marshall (a Republican candidate for reelection in November) said that he would fight for the jobs of Bombardier in his state where it employs?about 1,500 people. He said, "I've taken this concern inside the Oval Office," on?X Tuesday. Jerry Moran, a Republican senator from Kansas, said he reached out to President Trump on Monday to "ensure that he is aware of Bombardier's significant contributions to Kansas." Trump's threats against Bombardier risk worsening a bitter trade dispute between Canada and the United States. The tariffs that the Trump administration has imposed have become a major issue for Democrats in their bid to regain control of Congress during the November midterm elections.
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Container ship arrives in UK from China via Arctic
The container ship arrived in Britain on Wednesday, after a 'historic voyage' from China via the Arctic. This is part of plans to encourage more ships to use this route as an alternative to the Suez Canal that could be shorter and safer. The Dubai Tower reached Teesport, off the northeast coast of England on August 15 after arriving from eastern China. The Arctic route, which is significantly faster than freighters that go through the Suez Canal or around the Cape Good Hope, is meant to be a start for a regular container service from Europe via the North Sea Route. South Korean container ships are also currently making a similar journey, joining China and Russia as shipping firms test?cargo service along the route. This is more feasible due to the faster melting of Arctic sea-ice. As the U.S. war with Iran continues, the route offers shorter journeys while avoiding?security risk in the Middle East. Weather and sailing conditions can be unpredictable, and the commercial feasibility of this route is not certain.
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Sources say that a fuel storage tank caught on fire during a drone attack in Russia's Novorossiisk
Two industry sources reported on Wednesday that a fuel storage tank caught fire at the Novorossiysk Fuel Terminal during an overnight drone attack?on Russia's Black Sea port city?of Novorossiysk. Telegram Mayor Andrei Kravchenko said that drone debris had fallen on several business premises and near a residence in Novorossiysk. The Novorossiysk Fuel Oil Terminal?did not immediately respond to an inquiry for comment about the?fire? or its impact. Sources claim that a tank at the terminal containing 'oil products' with a volume of approximately '37,000 cubic meters? caught fire. Sources said that repeated Ukrainian drone strikes have caused increased disruptions to oil exports out of Novorossiysk in recent months, which has led to a shortage in tankers available and loading delays. The terminal is capable of handling up to 5,000,000 metric tons?of oil-based products per year or approximately 400,000 to 450,000 tons each month. According to its website, the terminal's storage facilities are able to store a variety of?oil products. The combined capacity is up to 119,000 cubic meters. The terminal can load tankers at two dedicated berths that can accommodate vessels up to 60,000 tonnes deadweight.
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Official: Kuwait Petroleum offers refined fuels and oil outside of Hormuz for buyers
A company official announced on Wednesday that Kuwait Petroleum Corp offers its customers the option to transfer their crude oil and petroleum product outside of the Strait of Hormuz for safe transportation to final destinations. Khaled Al-Sabah is the managing director for international marketing at KPC. He spoke at the APPEC conference. He said that buyers and shipping firms are avoiding cargoes lifted from?ports within the strait because of the risks associated with the U.S. - Iran war. The crude oil from other Middle Eastern producers, such as Qatar and the United Arab Emirates, is also available for sale at ports outside of the Strait. Emad A. M. Al-Kandari is the deputy managing director of KPC's international marketing. He said that when it was safe to do so, they would pass some ships through the Strait of Hormuz. Documents reviewed by revealed that the company offered to deliver naphtha from ships in a few?tenders held in August and September. Market sources said that some of its cargoes sold at a premium of up to $60 per metric tonne to Japan's quoted prices on a?delivered?basis. KPC offered free naphtha before the U.S./Iran War began. In June, it resumed its cargo?offers for the first since the war began in February. Data from the shiptracker Kpler revealed that Kuwait exported an average of 200,000 barrels of naphtha per day in the first two months of 2018. This dropped to zero by April. In the last two month, its exports have remained at half pre-war levels.
Manishi Raymondchaudhuri: ROI-China Shock 2.0 has reshuffled the winners and losers
China is exporting its way out of an internal slump, causing what many Western governments refer to as a "second China shock." This strategy may be causing trade wars overseas, but it also creates a whole new group of potential domestic beneficiaries.
In recent months, the dichotomy of China's robust export sector and its flagging economy was on full display. China's export?growth was 24% on a year-over-year basis in July, and it posted a $113 Billion trade surplus. This follows similar figures in June. It is now on track to achieve another trillion-dollar surplus by 2026. It recorded a disappointing GDP growth of 4.3% in the second quarter and subdued sales growths of 0.6% in May and 1.3% June.
This split is no accident, but reflects Beijing's policies. Over the past decade, China has been trying to dominate advanced manufacturing by gaining a large market share for products like electric vehicles (EVs), batteries, and solar cells. Western policymakers call this "China Shock 2", echoing a period in early 2000s when China's growth as a manufacturing exporter caused industries to be disrupted across Europe and America. Today, governments claim that a new wave subsidized Chinese green-tech and electric vehicle exports threatens industrial jobs and undercuts producers. Europe responded with a combination sectoral tariffs and more stringent cybersecurity regulations, as well as exhortations for China to appreciate its currency. Donald Trump, the president of the United States, has also increased tariffs. Beijing, meanwhile, has taken only modest steps to boost domestic consumption. This so-called anti-involution campaign, which aims to curb the price wars that are destroying domestic profitability, has met with limited success. Chinese companies were forced to adapt. In order to protect lucrative international revenue streams against?global fragmentation', companies are increasingly manufacturing in core consumer markets. This allows them to bypass trade barriers and build local support while also insulating supply chains from geopolitical disruptors. This is also not an organic change, but a part of Beijing's "Globalization Phase 3.0".
This new road map creates the potential for winners and losers to emerge in the second largest economy of the world.
National Champions
Unsurprisingly, the firms that are best placed to benefit from China's policy changes are concentrated in sectors that dominate its export landscape. China will hold 65% of the global intellectual property in 2024, which includes firms involved in the EV/battery supply chain. BYD, Geely and CATL are the global leaders in EVs and batteries. They not only control large market shares but also have globally diverse manufacturing bases and supply chain.
Midea, a consumer electronics giant, and Haier, a global manufacturer, both have fully integrated systems that combine localized R&D, manufacturing, and distribution in Southeast Asia and Latin America.
Some of the other potential winners are companies that manufacture critical components for which there are few or no Western alternatives. Zhongji Innolight, Eoptolink and other companies produce optical transceivers which are heavily integrated into global AI hardware supply chains and data centers. The large production pipelines they have in Southeast Asia may help them to be protected from possible trade disputes with Western customers. Some of these companies could also be caught in the crossfire of the escalating conflicts. According to a report, the White House may consider a ban on U.S. exports of Chinese data centre components.
YUAN PLAYS
Beijing may allow its currency to appreciate in response to criticisms about its trade imbalances with Europe and the U.S., thus creating a new set of corporate "winners". As of August 7, the yuan had appreciated by 3.6% versus the dollar, and 5.5% versus the euro. Over the past decade, the yuan has depreciated by 6% against the euro, even though Europe's trade gap with mainland China more than doubled. The yuan's depreciation against the dollar has been a modest 2%, while the U.S. trade deficit with China grew by 10% in the same period. This dynamic shows how deep the undervaluation is.
Companies with large euro-denominated liabilities would be the obvious beneficiaries of the yuan appreciating against the euro. Their liabilities will shrink as the yuan appreciates. This category includes large state-owned companies like Sinopec.
A strengthening dollar would also benefit China's state-owned airlines, the "Big Three": Air China (China Southern), China Eastern and China Eastern Airlines. Their massive debts in dollars would be reduced to local currency.
WATCH OUT FOR HEADWINDS
Even the companies that are best positioned to thrive in this new environment will need to be aware of headwinds.
One thing to note is that strong exports may not translate into high equity returns. In the first half of the year, BYD's overseas deliveries increased by more than 70% compared to the same period in last year. However, the stock price has fallen due to a fierce internal price war. Beijing's new policy could be hampered by exogenous shocks. The energy price shock caused by the U.S./Iran war has impacted Chinese airline stocks in a big way since February. Due to a shortage of global refining capacity, this conflict could cause jet fuel prices to remain high even if an interim agreement is reached.
The first "China Shock" was a major turning point in the industrial world, triggering a new era of globalization. This time around, Chinese firms can't rely on increased cooperation and lower barriers to trade, but instead will likely face an environment characterized by fragmentation and conflict, as well as meaningful pushback from the world's major economic powers.
You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. (Writing and editing by Margueritachoy and Anna Szymanski; ManishiRaychaudhuri)
(source: Reuters)