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Carney says that Canada could increase its duties on US aluminum and steel
Mark Carney, the Prime Minister of Canada, said that Canada may increase its counter-tariffs against U.S. steel and aluminum if a broader deal is not reached with President Donald Trump in 30 days. Trump raised import duties on aluminum and steel to 50%, up from 25% in early February. The industry demanded an official response. Trump's decision could harm Canada, the U.S.'s largest metals supplier. Carney said that he agreed with Trump on Monday that both nations should work to conclude a new security and economic deal by the 21st of July. Carney said at a press briefing that Canada would adjust its counter-tariffs against U.S. aluminum and steel products on the 21st of July to reflect the progress made under the larger trading agreement between the United States. Carney did not immediately match Trump's tariff hike in June, saying that he wanted to make progress in the talks to establish a new economic relationship and security. On March 13, Canada imposed 25% of retaliatory duties on a list steel products valued at C$12.6 Billion and aluminum products valued at C$3 Billion. In an announcement made on Thursday, Canada announced new rules for procurement, which will allow Canadian producers and their trading partners with tariff-free access to compete in federal procurements. Carney stated that Canada would set new tariff-rate quotas at 100% of the levels in 2024 for imports of steel from non-free-trade agreement partners, "to stabilize and prevent harmful trade divergence." According to the Royal Bank of Canada (RBC), Canada exports over 90% of all its steel and aluminum to the U.S. It also consumes around a fifth of the U.S. steel exports and about 50% of the aluminum exports. This highlights the importance of the metals trade between these two countries. Carney has also announced a number of infrastructure projects, ranging from oil and gas pipelines, to the doubling of housing capacity, all of which require tons of aluminum and steel. Carney, in response to questions from the press, said: "We are united on working towards all forms of assistance for the industry... and that begins with purchasing Canadian steel and aluminium for federal projects." The government will use Canadian steel and aluminium in Canadian products as part of its new measures. It will also create a taskforce to monitor the evolution of the steel and Aluminum markets under the tariff regime. (Reporting and editing by Rod Nickel; David Ljunggren, Andrea Ricci, and Rod Nickel)
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Nigerian Navy cracksdown on oil theft and arrests 76 ships in two years
The Nigerian Navy said that it had arrested 76 ships and at least 242 suspected in anti-oil-theft operations and destroyed over 800 illegal refinery sites during a 2-year crackdown. In recent years, Nigeria's oil sector has been crippled by rampant theft of oil from wells and pipelines. This has damaged government finances and reduced exports. Vice Admiral Emmanuel Ogalla, Chief of Naval Staff, said that since June 2023, the naval authorities had seized 171,000 barrels and millions of litres illegally refined fuels. Ogalla stated that the navy began checking oil cargoes at Nigeria's major export terminals to combat oil smuggling at its source in January. The navy has purchased patrol boats, new ships, and three AW 139 Trekker AW 139 helicopters. The navy is building two more seaward-defence boats, and will receive two 76 meter offshore patrol ships from Dearsan Shipyards in Turkey.
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France tightens its grip on Eutelsat with a 1.35 billion euro share sale
According to the Finance Ministry, Eutelsat will be the largest shareholder in France following a capital increase of 1.35 billion euros ($1.55 billion), which was designed to help the satellite company compete better with Elon Musk’s Starlink. Capital injections will give a boost to Eutelsat's debt-ridden company, which this year has attracted unprecedented attention from European governments searching for alternatives to Elon Musk Starlink. The ministry announced that France's state-owned shareholding agency would inject 717 millions euros into the company. This is more than half the total amount. A government official announced that the agency would also purchase the stake owned by France's Bpifrance, the state-owned investment company. This will bring France's stake in Eutelsat to 29,99%. The French government is proud of its support for Eutelsat. We support a crucial stage of its development by participating in the capital increase. "Satellite connectivity is an issue of strategic importance for our industrial and technological sovereignty," said Finance Minister Eric Lombard.
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UK Royal Navy ship sails through Taiwan Strait
A British Royal Navy Patrol Vessel has sailed across the Taiwan Strait. A Navy spokesperson confirmed this on Thursday. The passage was in accordance with international law. The spokesperson stated that "HMS Spey’s routine navigation through Taiwan Strait was a part of a long planned deployment and took place fully in compliance with international laws." The Ministry of Defence of Britain did not specify when the passage occurred. China, which claims Taiwan to be its own territory and says that the strategic waterway is theirs, The last time that a British warship passed through the strait in 2021 was when HMS Richmond, en route from the East China Sea to Vietnam, was deployed. The Chinese military warned the ship away at that time. The passage is published at a moment when Britain and China seek to repair their relationship. Prime Minister Keir starmer will visit Beijing in the latter part of this year, the first time a British leader has visited the country since 2018. (Reporting and editing by William James and Alexandra Hudson; reporting by Sam Tabahriti)
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The defence opportunity could make flying taxis possible.
Executives in the industry told the Paris Airshow that opportunities in emergency healthcare, defence and cargo could make flying taxis possible in the coming years, after the Trump administration recently backed the sector. This month, President Donald Trump told regulators that they should speed up the certification process to help accelerate the development and deployment of electric vertical takeoff and landing (eVTOL) aircraft. He was aiming to give the U.S. an edge over Asia with this technology. The executive order has given a new impetus to a sector that has been struggling to gain the approval of regulators and critics. Kyle Clark, the founder and CEO of BETA Technologies said at the show, "We take many spears. People say 'batteries too heavy.'" "But in reality, if the planes are placed in the right locations, there will be real benefits." In order to make flying taxis viable, they need to be able to scale up. They say that emergency medical services, cargo, and defence, could be a good alternative for helicopters, in areas such as passenger and goods transportation, or rescue missions. BETA, Joby Aviation, and Archer Aviation all participate in the U.S. Air Force Agility Prime Program. This program aims to develop autonomous cargo aircraft and hybrid-electric planes. Joby and Archer previously signed contracts for military services worth up to $142 Million and $131 Million, respectively. JoeBen Bevirt, the founder and CEO of Joby Aviation, said: "We are very grateful for the support we have received and the lessons we have learned." "We believe there are incredible opportunities in the defence sector." BETA's Clark who flew the conventional takeoff-and-landing aircraft in Paris said that BETA had a very clear position on defence. The company was committed to providing reliable aircraft for every mission. He said, "We've been to about 10 bases." We've performed 1,000 takeoffs and land landings for the military. Our dispatch rate is exceptional. We didn't just dabble there. We have contracts. "I think we have hundreds of millions of dollars in defence contracts." Wisk Aero and the three companies said that Trump's order had a major impact on the prospects of this sector. At the Paris show, U.S. Transportation Sec. Sean P. Duffy, and acting FAA Administrator Chris Rocheleau, announced a U.S. led alliance with Britain Canada Australia and New Zealand in order to streamline certification of eVTOLs worldwide. Wisk Aero is owned by Boeing and is different from its competitors in that it focuses on the launch of fully automated services. Sebastien Vigneron, CEO of the company, said: "We have all the support we need. We have the support from the government and the industry. And then we have money." Fully automated flight could be a challenge to convince the public. BETA's Clark stated that once the aircraft are in the customer's hands, the business case will be obvious. He claimed to have flown passengers between the Hamptons and JFK Airport in New York with only $7 worth of electricity. He said that you can flip opex into capex for recurring costs. This will tell you the type of customer and application you are looking for. "It is not just a weekly flyer. It's three, four or ten times a day flyer that takes advantage of the electric propulsion." (Reporting and editing by Mark Potter.
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Spain's watchdog reviews grid control rules
The Spanish Competition and Energy Watchdog announced on Thursday that it had updated the rules for power plants regarding the voltage control of the power grid in order to increase the role renewables play. It has been a long time coming, and the Spanish government's report on the causes for the massive blackout in Spain and Portugal that occurred on April 28, recommended its approval. According to the government investigation, a sudden surge in voltage caused the power outage. These updated rules, which are mostly 25 years old, include new requirements when it comes voltage control mechanisms for renewable plants such as solar and wind. These plants will now be able offer voltage control services previously only available to conventional power plants, such as thermal power plants that use coal, gas or nuclear energy. When grid operator REE calculated power mix for the next day, they could only rely on conventional power plants as the majority of the voltage control capability. In a press release, the authority stated that the new framework "gives homogeneous treatment" to both renewable energy and other generation facilities. It said that the review was approved by the Spanish government last week. The blame game has intensified over the blackout after discrepancies between the investigations conducted by the Spanish Government and the grid operator of the country. The former blames both the grid operator, for miscalculating energy mix on that particular day, and power generators for failing to maintain a proper voltage level in the system. However the latter puts the blame squarely on the power plants. The grid operator made a proposal in 2021 that led to the development of this update. (Reporting and Editing by Louise Heavens, Pietro Lombardi)
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TCS, an Indian company, says that none of its systems was compromised in the M&S Hack
Tata Consultancy Services has said that none of its systems or users have been compromised as a result of the cyberattack which led to the theft and misuse of customer data by retailer Marks and Spencer. It is a client of Tata Consultancy Services for more than 10 years. Keki Mistry, an independent director at TCS, told the annual shareholders meeting that "no other TCS customers were affected" as no TCS users or systems had been compromised. Mistry said that TCS was not included in the scope of the investigation. It is the first public comment made by India's top IT services provider on the cyber-hack. M&S didn't immediately respond to an inquiry for comment. TCS is a technology service provider for the British retailer. TCS won a $1billion contract in early 2023 to modernise M&S legacy technology, including its supply chain and its omni-channel sales. It also increased its online sales. M&S's "highly targeted and sophisticated" cyberattack, which it disclosed in April, will cost around 300 million pounds ($403 millions) in operating profits and there is a high likelihood that online services will be disrupted until July. Financial Times reported last month that TCS was internally investigating if it was a gateway for a hacker attack. Tata Group chairman N Chandrasekaran missed the annual meeting of the company due to "exigencies". The chairman's absenteeism comes after the Group's airline Air India crashed in Ahmedabad, India last week. All passengers but one were killed. (Reporting and editing by Sai Ishwarbharath B, Haripriya Suresh)
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Pakistan is worried that militants could flourish on its restive border if Iran becomes unstable
In a recent meeting with President Donald Trump, Pakistan's Army Chief expressed concern that separatists and jihadists along the Pakistan-Iran frontier could exploit any fall in authority in Iran. Both sides of the 900km (560 miles) border are occupied by anti-Iranian, anti-Pakistan groups. Israel's officials have stated that as they bomb Iran's nuclear programme, they want to destabilize or topple the Iranian government. Pakistan is also concerned that Israel has set a precedent by attacking nuclear installations in another country. In May, nuclear-armed rivals Pakistan & India engaged in a four-day war. After a lunch with Pakistan's Army Chief, Field Marshall Asim Munir on Wednesday at the White House, Trump stated: "They are not happy about anything", in reference to Pakistan's view of the Israel-Iran Conflict. Pakistan's army said that both leaders stressed the importance of resolving the conflict. Pakistan has condemned Israel’s attack against Iran as a violation to international law. Shafqat Khan, the spokesman of Pakistan's Ministry of Foreign Affairs said that Thursday, "This is a very grave issue for us what is happening in Iran, our brotherly nation." It threatens regional security and has a profound impact on us. Some militant groups along the border welcomed the unrest. Jaish al-Adl, an Iranian jihadist organization formed by ethnic Baluch and Sunni Muslim minority groups and operating from Pakistan said Israel's conflict against Iran was a huge opportunity. In a June 13 statement, the group stated that "Jaish al-Adl extends a hand of brotherhood, friendship, and solidarity to all of Iran's people and calls upon all of them, particularly the people of Baluchistan and the armed forces to join the ranks." Pakistan is also concerned that militant separatists of its own Baluch minority, who are based in Iran will seek to intensify their attacks. Maleeha Ldhi is a former Pakistani Ambassador to Washington. She said, "There is a fear that ungoverned space would be fertile soil for terrorist groups." Pakistan shares unstable borders with India and Afghanistan, a country ruled by the Taliban. It doesn't want to add another volatile border on its long border. In the Iran-Pakistan region, ethnic Baluch are a minority who has complained of discrimination in both countries and started separatist movements. The region in Pakistan is called Balochistan, and the same is true for Iran. Iran was closer to India than Pakistan until Israel bombed Iran. Pakistan and Iran even exchanged air strikes in the past year accusing one another of harboring Baluch militants. The attack on Iran has shattered alliances as India did not condemn Israel's bombing campaign. China also expressed its deep concern about the security situation of Balochistan. The area is a focal point of Beijing's multibillion-dollar infrastructure investment program for Pakistan, which focuses on the new Chinese port of Gwadar. Baluch militants in Pakistan have targeted Chinese personnel and project. Tehran has accused the United States, Israel, the Gulf nations and Pakistan of supporting the anti-Iran Baluch group on the Iranian side. Simbal Khan is an analyst in Islamabad who believes that the various Baluch groups may merge into a movement called "Greater Baluchistan", which aims to create a new nation out of the Baluch areas from Pakistan and Iran. "They will all fight together, if it blows up," Khan said. (Reporting and writing by Saeed Shah and Charlotte Greenfield, both in Islamabad. Editing by Toby Chopra.
Asia's high-sulfur fuel oil nears record highs
LSEG and market data indicate that the cracks in Asia's 380 cst high sulphur fuel (HSFO) closed on Friday at a record high.
LSEG data show that the 380-cst HSFO/Brent cracked for June closed at a premium of $3.70 a barrel, which is the highest ever recorded. The 380-cst HSFO/Dubai cracked closed at a $4.45 premium per barrel.
Market sources and analysts stated that HSFO cracks were supported during recent trading sessions because of the expectation of seasonal strength in the market and lower crude prices.
Markets usually firm up in the second half of the year, as summer power generation peaks across the Middle East. This also caps exports.
Emril Jamil is a senior analyst at LSEG Oil Research and he said that the expectation of a stronger seasonal demand for power generation has made the high-sulphur complex stronger in comparison to Dubai, and this has led to broader intermonth spreads.
Once sufficient inventories have been built up, the cracks will likely be under downward pressure.
In recent sessions, the spot benchmarks of HSFO remained at a maximum. Singapore's cash differentials were pressured by the abundance of prompt supplies.
Ivan Mathews of Vortexa's APAC Analysis said that the higher HSFO cracked prices are mainly due to a fall in crude oil prices. He added that market fundamentals have not changed recently. (Reporting and editing by Shinjini Ganuli; Jeslyn Lerh)
(source: Reuters)