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FAB, UAE's largest lender, beats expectations on the strength of non-funded income
First Abu Dhabi Bank, the largest lender in the United Arab Emirates by assets, exceeded first-quarter profit expectations on Tuesday. This was boosted by a strong increase in non-interest revenue from fees and commissions. Sources say that the results are part of a reorganization by FAB aimed at strengthening their business in Gulf and increasing shareholder returns. Sources told us last month that FAB will split its operations into four divisions, and have appointed Citi dealmaking veteran LinosLekkas to be its new head for investment banking. Hana Al-Rostamani, the new head of FAB since 2021, is following a number of departures of senior managers, including the former chief of global markets and its chief operating officer, both of whom left earlier this year. The company stated that it reorganized all of its segments in the period between January and March. In the quarter ending March 31, net interest income increased 3%, to 5 billion dirhams. Non-interest income rose 22%, to 3.8 billion. The income from fees and commissions increased by 23% compared to a year ago. LSEG data shows that the net profit rose by 23%, to 5.13 billion Dirhams. This was higher than analysts' expectations, which averaged 4.24 billion Dirhams. The bank's assets totaled 1.31 trillion dirhams, an increase of 6%.
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Grid collapse due to failure of interconnection between Franco-Spanish grids
According to Spanish grid operator REE, the massive blackout which hit the Iberian Peninsula Monday was caused by a sudden and large drop in electricity supply, which caused the grid interconnection to trip between Spain France. Energy Ministry, Monday evening, said that the network lost 15 gigawatts in just five seconds, at 1033 GMT. It did not explain the cause of the loss. REE's System Operations Chief Eduardo Prieto informed reporters that the power outage was greater than what European systems were designed to handle. This caused the Spanish grid to be disconnected from the French grid, which led to the collapse the Spanish electricity system. He said at a press conference that the electrical system had collapsed as a result of the disconnection, and the imbalance in band generation in our electrical system. In his national address, Pedro Sanchez stated that the ultimate causes behind the massive power outage on Monday morning have not been identified by REE and no hypothesis has been ruled out. The blackout, which lasted several hours, caused major disruptions throughout Spain and Portugal. On Monday evening, power was gradually restored to most parts of Spain and Portugal. (Reporting by Joan Faus, Inti Landauro and editing by Aislinn laing and Sonali paul)
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Access to the back sea for landlocked Burkina Faso, Mali and Niger through Morocco
Morocco's official news agency reported that the foreign ministers of Burkina Faso and Niger, three Sahel-dominated states ruled by military forces, said they endorsed an initiative on Monday offering them access through Morocco's Atlantic port to global trade. It said that the foreign ministers of their respective countries expressed their positions during a meeting in Rabat with Morocco's King Mohammed VI. Last year, the West African nations run by juntas who have been in power through coups for the past few years withdrew themselves from ECOWAS and formed a new alliance called the Confederation of Sahel States. Morocco, a major player in West Africa’s agricultural and financial sectors, announced in November 2023 its initiative to open up trade after ECOWAS imposed restrictions on trade with the three countries. Abdoulaye Diop, Mali's Foreign Minister, told state media that the initiative would "diversify our access to sea". Morocco's official news agency stated that the meeting was part of "the strong and longstanding relationships of the Kingdom with three brotherly nations of the Alliance of Sahel States". Visit takes place at a time when relations between AES and Algeria - Morocco's regional competitor - are deteriorating. Algeria has severed ties with Morocco, and now supports the Polisario Front in its quest for an independent Western Sahara. Morocco claims this territory as its own. It is also building a $1 billion port there. The AES group expelled French forces and other Western forces, and turned to Russia for military assistance. Morocco helped secure the release of four French agents held in Burkina Faso five months after Paris recognized Rabat as the sovereign authority over Western Sahara. Ahmed Eljechtimi, Sonali Paul (Editing)
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Iberia's power outage leaves people stuck in lifts, trains and supermarkets
Major power outages in Spain and Portugal have left many people stuck in lifts, on trains and in supermarkets. Others are walking home or stocking up in the supermarkets. At Atocha station, the main Madrid railway station, trains were at a complete standstill. The ATM screens were blank, and the police tried to direct people towards central gathering areas. Ana Cordero was a Puerto Rican tourist who had just left Madrid to go to Barcelona when the electricity went out. She and her partner were stuck on the train in Barcelona for three hours. She said, "After an hour or so the emergency battery (of the train) died. Then - the bathrooms didn't work." It was so stupid, because everything on the train was electronic. Even to wash your hand. The train was eventually evacuated, and the passengers walked along the tracks back to the station. She was concerned that the hotel rates would "go up, up, and up" in Madrid. Many supermarkets have closed in Portugal's capital Lisbon, as well as in Vilamoura, a resort town in southern Portugal. In a Madrid supermarket, shoppers were stocking up water, milk, and eggs. Some shelves were empty, and long queues formed at the checkouts. Joanly Perez is a 33-year old doctor from Madrid. "I left my job and power went out suddenly. People started buying," she said. "People don't know what could happen, so they buy basic necessities just in case." Oliver Ortiz (45), a butcher from the city of Madrid, also said that he bought tins "just in case". Some local shops in Madrid gave credit to customers who were frequent shoppers. In Spain, messaging services started registering the pleas of people stuck in elevators. One X user said: "I don't have much battery left. Someone advise me. I'm stuck in a lift and the LED light has its own battery. It's about to go off at any moment." Another person said that they were stuck in the lifts for over an hour, and added: "The worst part was not knowing when I would be out." A post online, which we could not confirm, showed window cleaners clinging to the Torre de Cristal in Madrid, Spain's tallest skyscraper. The lights at major intersections had failed and there was gridlock on many roads. Staff from the local padel-tennis equipment store used stop signs at a major intersection to manage traffic flow. The streets were crowded with pedestrians, and there was a long line at the bus stops. Beatriz Sanchez, 40 said that she had walked across Madrid for five kilometers (three miles) to pick up her two daughters from school. I picked them up one hour before the scheduled departure time. I was worried, but they were happy. "I didn't know whether the bus would run because all of the stops were packed, and I couldn’t get my car out of the parking lot." One father found that his children were not happy after he left them at school. His son then complained about the coldness of his school lunch. (Reporting and writing by Catarina Demony; writing by Charlie Devereux, editing by Kevin Liffey; reporting by Jennifer O'Mahoney; Elena Rodriguez, Corina Poons, David Latona)
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Tennis at Madrid Open cancelled due to large-scale power failure
The Madrid Open was called off on Monday due to a widespread outage in the Spanish capital. This forced the 15th seed, Grigor Dimitrov, and his British opponent Jacob Fearnley from the court. Scoreboards and overhead cameras were also without power. A spidercam that was left too close to court in the round of 32 match between Dimitrov and Fearnley, where Dimitrov won 6-4 5-4, had to be removed. The Madrid Open announced on X that "the nationwide power outage experienced in Spain on Sunday 28 April forced the cancellation both of the day and the night sessions." The microphone on Coco Gauff's post-match interview was cut short at the Arantxa-Sanchez Stadium after it lost power. She had defeated Belinda Bencic by a score of 6-4, 6-2, to reach the quarterfinals. The ATP reported that electronic line-calling systems were also affected, and spectators posted pictures of the dark hallways in the Manzanares Park Tennis Center. The ATP announced on its website that "two singles matches and a doubles match were in progress at the ATP Masters 1000 tournament when power was cut at 12:34 p.m., local time." Aryna Sablalenka and Iga Swaatek were due to play in the round of 16 in the women's singles later that day, but their match was postponed. Marta Kostyuk, a former Australian Open quarterfinalist, wrote in an Instagram post that her match against Anastasia Potapova had also been postponed. Matteo Arnaldi's round of 32 match with Damir Dzumhur was temporarily suspended because there was a power outage on Court Four. The match, however, was completed and Arnaldi won 6-3 6-4. Local media reported that the power outage affected also traffic lights, oil refineries and some airports as well as part of the Madrid Underground. Red Electrica, the Spanish grid operator, said that it was working closely with energy companies to restore electricity. (Reporting by Chiranjit Ojha in Bengaluru Editing by Christian Radnedge)
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India increases its purchases of ESPO oil from Russia in April, as Chinese demand declines
According to LSEG data and traders, India's purchases of ESPO blend oil from Russia increased in April to their highest level since August 20,24 due to a decline in demand from Chinese companies. ESPO Blend, the flagship grade of light crude oil that Russia exports from Kozmino to Asian markets is most popular with Chinese refiners. Chinese state refiners reduced their purchases of ESPO blend oil in March and April due to sanctions against Russian companies, seasonal maintenance and other factors. This left more barrels for India, the second largest buyer of Russian oil. According to LSEG data and traders, the Russian ESPO blend oil supplied to Indian ports has risen from just one cargo of 100,000 tonnes in March to 400,000 metric ton (or approximately 100,000 barrels per week) this month. Data shows that India has purchased the most ESPO Blend oil since August of last year. Recently traders started showing us ESPO volume as well. One source in India's oil sector said that there was a low demand for ESPO in China. India, which is the biggest buyer of Russian oil via sea, buys small quantities of ESPO blend because the logistics are complicated and the price is higher than Urals oil from Russia. According to LSEG, India will receive another 200,000 metric tonnes of ESPO blend in May. Traders believe that India could import more ESPO Blend next month due to the availability of this grade and the ongoing low demand for crude oil in China. The weakening of international benchmarks has also pushed the price of Russian oil, including ESPO blend, below the Western price limit of $60 per barrel. This may make it easier to buy the grade. Sinopec, a Chinese oil company, has resumed purchasing ESPO Blend in May. This may have an impact on India's purchase prospects. Reporting by Nidhi in New Delhi and in Moscow. Mark Potter is the editor.
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A large part of Spain and Portugal is affected by a power outage
A widespread power outage in Spain and Portugal on Monday paralysed the public transport system, caused traffic jams and caused flights to be delayed. Red Electrica, the Spanish electricity transmission company, said that the outage could last between six and ten hours. The cause was not known at the time. Officials have not ruled out the possibility of a cyber-attack. Traffic lights failed to work, creating gridlock in Portugal and Spain. The outage affected the transport networks, hospitals and elevators. In Madrid, there were hundreds of people standing in the street outside important office buildings. There was also a strong police presence, and officers were directing traffic, as well as driving through central atriums lit with lights. Sources familiar with the situation say that the Spanish and Portuguese governments met in order to discuss the outage which briefly affected France. In addition, a crisis committee has been set up in Spain. The Spanish Prime Minister Pedro Sanchez has visited the control centre of Red Electrica, a company that provides electricity transmission. The Spanish government stated that it was working to identify the cause and impact of the incident, and that all resources were being used to solve the problem as quickly as possible. Red Electrica stated that it is working with regional energy providers to restore power. Portuguese utility REN has activated plans to restore electricity in phases. The Madrid Open Tennis Tournament was suspended after the scoreboards and overhead cameras went dark. This forced 15th seed Grigor Dimitrov and his British opponent Jacob Fearnley to leave the court. The European Commission stated that it had been in touch with the authorities of Spain and Portugal, as well as the European Network of Transmission System Operators ENTSO-E in order to determine the cause of this outage. GRIDLOCK In Europe, power outages of this magnitude are rare. A problem with the hydroelectric power lines between Italy and Switzerland in 2003 caused an outage that lasted for 12 hours across the entire Italian peninsula. The air in Madrid was filled with police sirens, and helicopters hovered overhead. The Torre Emperador, a towering skyscraper located in Madrid's capital, was evacuated by stairway. As the signal on their cell phones fluctuated, worried parents tried to reach their child's school. In a video that was posted on X by the Madrid Mayor Jose Luis Martinez Almeida, he urged residents of the capital to minimize all travel and remain in their current location if at all possible. Airports reported delays. AENA, the company that manages 46 airports throughout Spain, has reported delays at all of its airports. Portugal's airport operator ANA has said that emergency generators have been activated at Porto and Faro Airports. This allows for the time being essential airport operations to continue. In Lisbon, the operation is ongoing with some limitations. It said that there has been no impact on Madeira or Azores airports. Reporting by Emma Pinedo; writing by Nina Chestney, editing by Andrei Khalip; Mark Heinrich, Bernadettebaum, Timothy Heritage and Timothy Heritage;
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Sources say that Greek shippers are returning to the Russian oil market because prices have fallen below G7 caps.
Three trading sources reported that Greek shipowners have returned to the Russian Urals oil market, as the price has fallen below the Western price ceiling of $60 per barrel. This allows them to offer transport and insurance while still complying with the sanctions. The Group of Seven countries has introduced a price cap that prohibits Western companies from providing insurance or transport services to Russian oil above $60 per barrel sold at the port of loading. Since December 2022, most Western shipowners have avoided working with Russian oil because of relatively high oil prices that kept Urals near or above the price cap. Since then, the main Russian oil shippers are tankers operated by companies in countries that did not join the price cap policy. According to three sources from the shipping and trading industry, in April a number Greek shipowners, including Minerva Marine and Dynacom, provided vessels for Russian oil shipment. The sources stated that these companies weren't present on the Russian oil markets last year. Three shippers did not respond to requests for comments. Due to the global trade tensions, oil prices have fallen this spring. Urals is now available at prices below $60 per barrel in Russian ports. This allows Western shipowners a return to using Russian crude. Calculations show that the value of Urals shipments FOB from Baltic ports and Novorossiisk was slightly over $50 per barrel on April 24. According to LSEG and shipping and trading sources, 15 of the 25 tankers that loaded Urals oil in April from the ports in Primorsk and Ust-Luga, and Novorossiisk, were managed by Greek shippers. Reporting by in Moscow. Renee Maltezou also contributed to the story in Athens. Mark Potter (Editing)
Iraq selects 11 companies for Grand Faw Port operation; decision to be made in January 2025
Iraq has selected 11 shipping companies that will compete for the Grand Faw Port Operation Contract. A decision is expected to be made in January 2025.
The shortlisted companies include China Merchants Port Group Co., Taiwanese container shipping line Evergreen, French shipping group CMA CGM, Mediterranean Shipping Company (MSC), India's Adani, Philippines-headquartered International Container Terminal Services (ICTSI), China's Cosco, and United Arab Emirates-based ABM Global Shipping LLC.
Farhan al Farousi, Iraq's Minister of Energy, announced that the country will select a company to operate in Iraq in 2026.
Daewoo Engineering & Construction of South Korea completed construction of five docks. They were then handed over to Iraqi Port Authorities on Thursday, during an inauguration that was attended by Iraqi Premier Mohammed Shia al-Sudani.
He added that Faw Port is expected to be operating at maximum capacity in order to receive 3.5 millions containers by 2028.
Grand Faw is one of a number of projects that aim to create a more direct transportation route between Europe and the Middle East, bypassing the Suez Canal.
Iraq began a 17 billion dollar project in 2023, to connect the main commodities port along its southern coast via rail and road to the border of Turkey. The aim was to transform the economy of the country after years and decades spent in war and crisis.
Fartousi said, "The Grand Faw Port will be pivotal in transforming the global transport trade to Europe via Turkey."
The Development Road aims to link the Grand Faw Port, located in the oil-rich southern part of Iraq, to Turkey. This will turn the country into a hub for transit, reducing travel times between Asia and Europe. (Written by Ahmed Rasheed, edited by David Evans).
(source: Reuters)