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Bessent: Trump's tariff threat could ignite a fire in the EU during trade negotiations
Treasury Secretary Scott Bessent stated on Friday that Donald Trump believes that the European Union’s trade offers are not of high enough quality. He hopes that a 50% tariff threat by June 1 will "light up the EU" during negotiations with Washington. Bessent said to Fox News Channel, that other major U.S. trading partner are in good faith negotiating with the EU. Trump intensified his trade war on Friday, saying he "recommended" a tariff of 50% on EU goods beginning on June 1. Trump warned Apple he could impose a tariff of 25% on any iPhones made outside the U.S. Bessent made the shocking announcement a day after he concluded meetings with G7 finance leaders including Valdis Dombrovskis, Executive Vice President of the European Commission. The G7 Ministers Meeting in Banff Alberta Papering over deep divisions On Trump's tariffs, reach agreement on the efforts to reduce "excessive balances" in global economy. The conversation in Canada The problem was the lead-up to that," Bessent said. Bessent: "The problem was in the lead-up to that." He told Fox News other countries had made good-faith trade offers and that some talks had been advanced with them. Some Asian countries have come up with "very interesting" proposals. Bessent stated, "I believe that the president feels that the EU's proposals are not of the same standard as those we have seen from other important trading partners." He stated that he is getting feedback from certain EU countries that they do not know about the proposals coming from Brussels by the European Commission. Bessent stated, "I won't be negotiating on television but I hope this will ignite a fire in the EU." "The EU is having a problem with collective action." This group represents 27 countries in Brussels. Bessent stated that Trump was interested in bringing precision manufacturing, including semiconductors, back to the United States. "I believe that this external production is one of our biggest vulnerabilities, especially in semiconductors. Bessent added that a significant portion of Apple's components is in semiconductors. We would like Apple to help us secure the semiconductor supply chain.
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Volvo Cars CEO: Customers must pay for tariff increases
Hakan Samuelsson, CEO of Volvo Cars, said that the company's customers will be responsible for a significant portion of any tariff-related increases. He also stated that if taxes increase it may become impossible to import even one of their most affordable models to the United States. Donald Trump, the U.S. president, said on Friday that he would recommend a 50% tariff on all goods coming from the European Union beginning on June 1. He claimed the EU had been difficult to deal with in terms of trade. Samuelsson said that a tariff of 50% would restrict Volvo Cars' ability to sell the EX30 electric car made in Belgium in the United States. He added that he wouldn't speculate any further due to the nature of the threat of tariffs. Trump's tariffs against automotive imports have created turmoil in the auto industry. Some companies are altering their production plans to reduce costs associated with the duties while others are waiting to see if policies change. Volvo has tried to provide its customers an affordable electric vehicle with the EX30. Samuelsson stated that it had been "very severely affected" by tariffs due to being initially produced in China. Volvo had planned to sell the car on the U.S. Market at a starting price of $35,000. However, the high tariffs placed on cars manufactured in China forced Volvo to wait until the production began in Ghent in Belgium in April this year before selling it. The starting price of the car is now $46,195. Imports of vehicles from other automakers, such as Ford Motor General Motors, and Toyota Motor from Mexico, South Korea, or Japan, with lower prices, to the U.S. are at risk due to tariff uncertainty. Samuelsson expressed his optimism that Europe and the United States would soon reach an agreement, despite the threat from rising tariffs. "I think there will be an agreement soon." It would not be in either Europe's or the U.S.'s interest to stop trade between the two." The majority of Volvo Cars vehicles sold in the U.S., which accounted for 16 percent of sales last year, are imported. The company plans to add a new plug-in hybrid model at its Charleston, South Carolina plant in the near future. Samuelsson previously stated that this could be a midsized plug-in. Volvo's share price was down 5.0% by 1337 GMT.
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Saudi Aramco seeks investors in Jafurah infrastructure assets, sources say
Two people with knowledge of the situation said that Aramco, Saudi Arabia's oil giant, is looking for investors to help finance its $100 billion Jafurah Gas Project. Saudi Aramco is aiming to be a major player in the global natural gas market by 2030 and increase its production capacity of gas by 60% from levels reached in 2021. Jafurah is the largest shale project outside the United States. It will begin production this year, and increase to 2 billion cubic foot per day by 2030. In 2024, the U.S. will produce around 80 billion cubic foot per day of shale-gas. Aramco will remain the operator and retain the majority of assets, according to one of the two individuals. Second person: The investment in Jafurah is expected to help develop the project. Two people, who spoke under condition of anonymity as the process was private, have spoken. Aramco has declined to comment. Aramco could raise money through a potential deal for Jafurah at a time when oil prices are falling. This would be in line with recent efforts made by the oil giant to invest in its infrastructure. BlackRock and EIG are among the investor groups who took minor stakes in Aramco’s oil and natural gas pipeline networks, in two separate deals that were completed in 2021. This helped Aramco raise almost $28 billion. These groups have taken 49% stakes of Aramco Oil Pipelines & Aramco Gas Pipelines. Aramco still holds 51%. Aramco pays a tariff to the subsidiaries for crude oil and natural gas flows, which is backed up by minimum throughput commitments. Aramco has built infrastructure for the Jafurah Project, including a gas fractionation plant, gas compression system, a pipeline network covering approximately 1,500 km (932 mi). Aramco's Chief Executive Amin Nasser told local media in early 2014 that the total investment in Jafurah would exceed $100 billion within 15 years.
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Asian spot LNG price rises to two-week highest amid renewed demand
The price of Asian LNG spot rose for the third consecutive week to a record high. This was due to renewed demand and weak production in Malaysia, as well as Egypt's desire to secure large volumes for the remainder of the year. Average LNG price for July deliveries into North-East Asia Industry sources estimate that the price per million British Thermal Units (mmBtu) is now $12.40, up from $11.75/mmBtu a week ago. Alex Froley is a senior LNG analyst with data intelligence firm ICIS. He said that the market had been in a trend of rising since the recent lows it experienced at the beginning of the month. However, overall, the market remains far below its highs from mid-February. Froley attributes the increase to the interest of Asian importers, including Bangladesh and Taiwan. He also reports that Egypt is looking to secure large quantities over the remainder of the year. Laura Page, the head of LNG insights at Kpler, said that the Asian market continues its monitoring of LNG supply disruptions in Australia and Malaysia. Page stated that Australia's North West Shelf Plant ceased LNG exports from May 16-22. Meanwhile, exports of Malaysia's Bintulu Complex have been in a steep decline. She said that while some of the decrease is due to maintenance planned, the severity of it suggests there could also be a problem unplanned that affects capacity. Martin Senior, head LNG pricing at Argus said that weekly loads at Malaysia's Bintulu had fallen to a 13-year low. A growing number of vessels are waiting off the shore to the facility, awaiting production to resume. He also said that the hot weather forecasts in parts of North-east Asia and Southern Europe could increase early summer cooling demands. Gas prices in Europe rose at the Dutch TTF hub this week due to maintenance by Norway and concerns about the Ukraine peace talks, which haven't seen much progress. Kpler's Page stated that "looking ahead, TTF could increase slightly due to heavy pipeline maintenance in Norway. This is despite weather predictions anticipating strong renewable production and a gradual warming of temperatures across the continent." Froley, ICIS, said that Europe's underground storage of gas is growing and the supply is increasing. He added that possible EU storage targets reductions would prevent major price increases, but downsides could be limited if new Asian buyers enter the market at lower prices. S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in July ex-ship on May 22 at $11.646/mmBtu, a $0.55/mmBtu reduction from the July futures prices at the TTF Hub. Spark Commodities set the price of July delivery at $11.467/mmBtu. Argus had the same price. According to Spark Commodities analyst Qasim Afghan, the U.S. Arbitrage to North-East Asia via Cape of Good Hope has decreased but is still pointing to Europe. The arbitrage via Panama, however, continues to point towards Asia. Afghan said that on Friday the LNG market saw a drop in rates to $32,000/day for Atlantic and $20,750/day for Pacific. (Reporting and editing by Nina Chestney; Marwa Rashad)
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India and Pakistan both extend the airspace closures to each other's airline in a tit-fortat move
Both countries announced on Friday that they had extended restrictions to each other's airspace in a tit-fortat move. This comes amid continued diplomatic tensions following a short military conflict between the two neighbours earlier this month. Pakistan Airports Authority stated that the restriction was in place for "all aircraft operated, registered, owned or leased by India" until 4:59 am local time on Friday, June 24, including military planes. (2359 GMT, June 23) India's Civil Aviation Ministry issued a corresponding NOTAM (Notice to Airmen), saying Pakistani-registered, operated, owned, or leased aircraft, including military flights, would be barred from Indian airspace through June 23. This move extends the restrictions that were first imposed in November. Tensions erupted after a deadly attack in Indian Kashmir on tourists in April. This led to the worst conflict between nuclear-armed rivals in almost three decades. On May 10, the two countries reached an agreement on a ceasefire. Reporting by Ariba Shehid in Karachi, and Abhijith Gaapavaram in New Delhi. Writing by Surbhi Mitra in New Delhi. Editing by Toby Chopra & Frances Kerry.
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Portugal's TAP records larger loss as competition and strike bite
The net loss of the Portuguese airline TAP in its first quarter increased by 20% compared to the same period last year, as aggressive competition at Portugalia and a strike of pilots at their low-cost carrier impacted revenue. The airline reported on Friday a loss between January and the end of March. This period did not include this year's busy Easter holiday. Luis Rodrigues, the Chief Executive of Portugalia, said that the beginning of the year had been "challenging". He estimated the impact of the strike of 20 days at Portugalia as well as the late Easter holiday to the operating results of the company at between 30 and 40 millions of euros. Rodrigues stated that he was committed to turning TAP into "a sustainable, profitable and appealing company" despite the ongoing challenges of macroeconomic uncertainty and competitive pressure. A strong competition, mainly in Brazil, resulted in a drop of 4.9% in the passenger revenue per seat-kilometre available for the third quarter. The overall revenue fell by 4.5% to 823 millions euros. TAP was long earmarked for privatisation. However, the process is once again stuck after the centre-right coalition led by the Democratic Alliance coalition, which had been in power since two months, collapsed. After winning Sunday's election, the centre-right coalition has announced that it will sell TAP to Lufthansa, Air France-KLM, and British Airways owner IAG.
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Royal Mail faces UK probe after missing delivery targets
The British regulator Ofcom announced on Friday that it will investigate whether Royal Mail's service obligations for 2024/25 have been met. Royal Mail, the postal watchdog that oversees services, said that only 76.5% first-class mail was delivered in one working day and 92.2% second-class mail within three days. These are both well below the standards set by the watchdog. Royal Mail Chief Operating Officer Alistair Cochrane stated in a press release that "we are actively modernising Royal Mail and while this effort is beginning to yield results, we still know there is more to be done." Royal Mail was fined after it missed its delivery targets for 2023/24, 2022/23 and 2022/23. The firm, which has been in business for over 500 years, has proposed reforms to the national single-price service obligation that applies to first- and second class services and also suggested the introduction of additional reliability targets. Last year, the parent company of Royal Mail International Distribution Services, International Distribution Services, agreed to be acquired by Czech billionaire Daniel Kretinsky. The deal was delayed earlier this year, but is now expected to be completed in the second quarter 2025. (Reporting by DhanushVignesh Babu and Yadarisa Shabong in Bengaluru; Editing by Shailesh Kuber)
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Maguire: France's nuclear and solar power output is on the rise.
France's energy producers have raised clean energy production to six-year-highs this year. They've generated 95% of the country's electricity from clean sources, which is far more than any other European nation. Solar power generation was at a record high and nuclear power production reached its highest level since 2019. France's ability to maintain growth in clean energy despite lower hydro- and wind-power output shows the resilience of France’s power system. This contrasts with recent declines in clean power production across Europe. LSEG data shows that France's high energy production levels has also resulted in some of the lowest wholesale electricity prices in mainland Europe. These have been around 25 to 35 percent lower than rival nations such as Germany and Italy so far this year. The combination of a durable growth in clean energy and power prices below average highlights the importance of France’s energy sector as part of Europe's interconnected energy system. France is a key player within this system because it exports power. NUCLEAR DEPENDENCE France's nuclear fleet, which includes more than 50 reactors, is the backbone of the nation's power generation system. It accounts for about 70% of France's electricity. The country's nuclear reactors, some of which are over 40 years old, require complex and expensive maintenance. Warm river temperatures in the summer can affect other reactors, limiting their output potential. They may also pose operational risks when there is not enough cooling available to regulate fuel rod temperatures. France's energy firms have increased the generation capacity of alternative power sources to reduce its dependence on nuclear power. They also closed outdated nuclear power plants. According to the energy think tank Ember, this has led to a decline in the share of nuclear power in total power generation from 45% in 2018 to 39% by 2024. Solar and wind farms are the fastest growing sources of power generation and account for 30% of total generating capacity. Hydro plants are responsible for 16% of the total, gas plants for 12%, and bioenergy plants for 2%. CLEAN COMMITMENT France's energy firms have reduced coal-fired capacity by nearly half since 2019, while gas-fired capacity has remained largely unchanged. Ember data reveals that the country's electricity firms have nearly doubled their bioenergy plant capacities and increased hydropower capacity in the last five years. The French power system, which is based on a reduction of nuclear power while increasing its non-nuclear energy sources, has been able to maintain its clean status as the most environmentally friendly among major economies. In April, France's electricity system generated almost 98% of its power from clean sources. This is the cleanest monthly share since mid-2024. This clean power share is compared to 65% for the United Kingdom, 60 % in Germany, and 64% in Europe. France is the clear leader in clean power in the region. Price Impact France's electricity costs are among the lowest in Europe thanks to the increase of 17% in clean energy capacity since 2019. According to LSEG, France's spot base wholesale power costs in 2025 have averaged around 73 Euros ($82) per Megawatt Hour (MWh). LSEG data show that the average power price in Germany is around 98 Euros/MWh, 107 Euros/MWh for Poland and 125 Euros/MWh for Italy. These steep discounts on power prices to regional competitors have given French power firms a competitive edge in Europe's interconnected markets for power, since they can export surplus power profitably. France's cleaner power base is now available to power importers who rely primarily on fossil fuels. These are the opinions of the columnist, who is also an author. ($1 = 0.8863 euros)
Adani Group and Reliance announce more investments in North-Eastern India
In separate statements released on Friday, Indian conglomerates led Mukesh and Gautam Ambani, billionaires who own Indian conglomerates, said they would invest more to further develop their projects in India's northeast.
Gautam Adani, the chairman of Adani Group, announced at an industry conference in New Delhi that his company will invest 500 billion rupees (5.84 billion dollars) over the next ten years to develop infrastructure including roads, highways and green energy projects like hydro and pumped-storage.
He announced earlier this year that his ports-to power conglomerate would invest 500 billion rupies in Assam, the state located in northeastern India, to expand roads, airports and gas distribution.
Mukesh Amani, the chairman of Reliance Industries who spoke at the same event, said that the company, which had invested 300 billion rupees so far in the region, aims to raise this amount to 750 billion in the next five year.
He added that the oil-to-retail company will establish 350 biogas plants and build factories for fast-moving consumer products in the area. $1 = 85.6880 Indian Rupees (Reporting and editing by Janane Vekatraman, Nivedita Battacharjee).
(source: Reuters)