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Helicopters save people trapped by floods along a key India pilgrimage route
Indian rescuers used a helicopter on Thursday to lift people out of floodwaters in the Himalayan State of Uttarakhand. This comes two days after an unexpected inundation and landslide that killed four people. More are still missing. Rescue teams reached Dharali after the rain stopped. Tuesday's wall had submerged homes and cars, on the way to Gangotri, a Hindu pilgrimage town, in sludge. In a Facebook post, Pushkar Singh, the chief minister of Uttar Pradesh, stated that helicopters had brought stranded people to safety. Dhami stated that the destruction had been "massive", and the number of people missing was still being calculated. He said, in reference to the rescue efforts: "If we have good weather tomorrow then we'll bring everyone by today." The authorities said that about 400 people trapped in Gangotri are being rescued via air. Nine army personnel and seven civilians were among those missing. Families of missing persons gathered in Matli to search for their loved ones. Mandeep Panwar wanted to get to Dharali where his brother, who ran a hotel in the town and has been missing since Tuesday, is. If you look at the videos, it appears that our hotel was the first to be affected by the flood. Panwar said, "I haven't heard from my missing brother in a long time. Officials said that communication links between rescuers and residents were still disrupted because the mobile phone and electricity towers destroyed by floods had not yet been replaced. Visuals revealed that earlier, rescuers of the army used both their hands and machinery to move boulders off roads which had become muddy rivers. Northern Command reported on X that more than 225 soldiers were involved in the rescue. "We saw Dharali fall before our eyes," Anamika Mehra said, a pilgrim heading to Gangotri at the time of the floods. On the way to the temple, the hamlet of 200 people in Uttarkashi district is more than 1,150 meters (3,775 ft) above the sea level. Uttarakhand has a high risk of flooding and landslides. Some experts attribute this to climate change.
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High electricity costs are a harsh reality for Britain's AI dreams: Bousso
NESO report: Data centre energy consumption to triple by 2035 The cost challenge of nuclear and offshore wind investment is highlighted The UK has the highest wholesale electricity prices of all developed economies Ron Bousso LONDON, 7th August - Britain's ambitions to boost its economy and tap into the AI revolution face the harsh reality of the fact that the abundance, clean, and reliable electricity supply required to achieve this is unlikely to be realized any time soon. The Prime Minister Keir starmer has laid out a number of major industrial policies to revive Britain's stagnant economy. This includes pouring money into the artificial-intelligence industry which, according to the government, would increase productivity and generate over $50 billion in gains each year. The data centres that run AI are highly energy-intensive and often require a separate source of power to operate. According to NESO grid operator, the UK's electricity demand is expected to increase from 319 terawatt-hours in 2024 to 450 tWh in 2030, with data centre power consumption set to triple during that time. The government's plans to modernise and expand the country's aging power system through low-carbon sources of energy could paradoxically complicate this effort by increasing Britain's already high energy costs. EXPENSIVE PLANS UK power prices are the highest in any developed country. Wholesale electricity prices increased by 40% from a year ago to $115 per megawatt-hour on average, according to International Energy Agency. This was mainly due to increased gas-fired generation during cold weather conditions and reduced wind production. This compares to average prices of $100/MWh in Germany and France, as well as $48/MWh in the United States. The British government wants to lower energy prices through a combination of measures, including reducing the grid's dependence on natural gas, increasing renewable power generation and battery storage, improving transmission infrastructure, and connecting grids with neighboring countries. These upfront investments, however, will initially increase the cost of electricity for consumers. Off-Course Offshore wind represents the flagship of Britain’s renewable energy policy. The government aims for offshore wind capacity to increase to 43-50 gigawatts (GW) by the end decade from the current 15 GW. Despite rising construction and finance costs, the government increased the maximum guaranteed price for offshore wind projects or the strike price in the auction this year by 11% compared to the previous round. This was a follow-up to a 66% increase in the last auction. The actual strike price of the contract for difference auction, which starts in this month, could be lower than government ceiling. Cost increases forced Danish developer Orsted to halt the development of its 2.4 GW Hornsea 4 off-shore wind project in May. Nuclear energy is a low-carbon alternative that the UK is also exploring. The UK government announced on 22 July that it had secured investment to develop the Sizewell nuclear plant, Britain's 2nd new nuclear plant within a decade. It is expected to become operational by 2030. Nuclear energy is a reliable source of low-carbon, steady energy. The current sizewell development costs of 51 billion pounds (38 billion pounds) are nearly twice the original estimate from earlier in the decade. This is due to inflation and increased material costs. Cost overruns in nuclear projects are not uncommon. The focus on offshore wind and nukes could increase the cost of electricity, reducing British industry's competitiveness and decreasing support for energy transition. CHOICE OR NO CHOICE Does the government offer any other viable options? Andrew Birch is the CEO of OpenSolar. He believes that Britain needs to liberalise their power market. This would require removing subsidies, such as CfDs, and allowing the markets to determine what forms of energy are most efficient for consumers. Although the idea is a good one, given that energy is so important to Britain, both in terms of its economy and security (especially with the AI race and the energy transition), the government will not be willing to relinquish control. A second option would be to transform the UK's old, centralised electricity system into an operation based on many small batteries and generators. This would also increase the grid's efficiency. It would cost billions in advance costs. All infrastructure and investment could be assessed by general taxation, rather than through energy bills. This would reduce sticker shock for consumers each month. This option is unlikely be to gain much political support because voters dislike higher taxes as much as they hate high energy prices. This leaves the possibility of increased private-public partnerships or government-financed investments. To avoid a sustained backlash, the latter would have to be clearly communicated to markets. If properly planned, UK investments in renewables, nuclear power, batteries, and transmission could pay off. However, given the many challenges, it is unlikely that the benefits will be felt for another decade. This spells trouble for Britain’s ambitious AI plans. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. 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The prospect of a Trump-Putin summit lifts Russia stock, the rouble and Ukrainian bonds
The Russian rouble strengthened on Thursday, Moscow stocks rose and Ukrainian bonds rallied after the prospect that a meeting would be held between U.S. president Donald Trump and Russian President Vladimir Putin. In its best day in more than two weeks, MOEX, the main Russian stock index rose by over 5% and reached a peak of 2,915 - a level that is close to three months old. Gazprom, the gas producer, saw a 3.4% increase and Yandex, the technology company jumped by 3.2%. The SPB Exchange, a former foreign stock exchange that was subjected to Western sanctions before, has risen 7.5%. Yuri Ushakov, a Kremlin aide, announced that Putin and Trump would meet soon - the first time since 2021. In a client note, Alfa Bank analysts stated that investors hope the meeting will lead to a normalization of the geopolitical environment. "The shares of companies which benefit from the easing tensions have grown more strongly. These include Gazprom Aeroflot, and Sovcomflot." Stocks that are exposed to both countries gained as well. Ferrexpo, a Ukrainian miner, rose around 20%. Raiffeisen International, an Austrian lender, soared over 12%. The excitement spread to the FX market, as the rouble strengthened to a 2-week high against both the dollar and the Chinese yuan. According to LSEG, based on quotes from over-the counter exchanges, the Russian currency rose 0.7% and reached 79.45 per dollar at 1010 GMT. On the Moscow Stock Exchange, the rouble gained 0.6% against yuan, the most traded foreign currency in Russia. The announcement of a potential meeting between the leaders came just a day after U.S. Envoy Steve Witkoff met with Putin in Moscow to try to achieve a breakthrough in the Ukraine War. Data from Tradeweb showed that international bonds issued by Ukraine rose sharply as well. The 2035 and 2036 maturity gained more than 4 cents per dollar, trading between 52.5-56.7, their highest levels since mid-May. The GDP-linked warrant increased by 1.35 cents, to 76.4 cents. Reporting by Karin Strohecker, Gleb Bryanski and David Holmes; editing by Duncan Miriri & David Holmes
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Targa Resources surpasses profit expectations on record gas volume and boosts share purchase program
Targa Resources, a pipeline operator, beat its second-quarter adjusted core profits estimates due to record volumes of natural gases and natural gas liquids transported by its system. In addition to the $1 billion previously announced, the company has also announced a $1.0 billion new share repurchase plan. In premarket trading, shares were up 2.6% to $167.32. The demand for natural gas is on the rise, fueled by data centers that are energy hungry and an increase in domestic consumption. This has helped firms such as Targa who transport natural gas. The U.S. Energy Information Administration announced in April that the U.S. electricity consumption would reach new records between 2025 and 26 due to the rise of cryptocurrency and AI-focused data centers. The company's quarterly Permian gas inlet volume rose by about 11%, to a new record of 6.28 billion cubic foot per day, compared to the previous year. Meanwhile, NGL pipeline transport volumes also increased by about 23%, to a new record of 961,200 barges per day. According to LSEG, the Houston-based company saw its core adjusted profit rise 18% from a year ago to $1.16 Billion for the quarter ending June 30. This was higher than analysts' estimates of $1.14 Billion. The total revenue increased by 20%, to $4.26 Billion, mainly due to higher NGL volumes, natural gas prices and lower NGL prices. Targa provides natural gas and NGLs through its network across the Permian basin, Eagle Ford Shale, Bakken Shale, and other major U.S. Oil and Gas regions. The company transports and fractionates NGLs to produce products such as ethane and propane. (Reporting and editing by Vijay Kishore; Khusbu Jena)
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The Paris office of Israeli airline El Al was vandalised
The French Transport Minister Philippe Tabarot condemned the suspected vandals who daubed red paint on the El Al office in Paris. El Al's entrance was covered in red graffiti that read "Free Palestine". Tabarot, writing on X.com, said: "Acts of hate and anti-Semitism are not welcome in our Republic." Joshua Zarka the Israeli ambassador in Paris condemned this incident as well. He told reporters that the attack was "simply an attack" against a company in Israel and against Israel itself. France has seen an increase in hate crimes since the attacks by Hamas on Israel in October 2023, and Israel’s subsequent military operation in Gaza. According to data released in March, the police reported a 11% increase in xenophobic, racist or antireligious crime in 2013. These figures do not break down attacks by religion. The Paris prosecutor did not reply to a question about the investigation. (Reporting and editing by Richard Lough, Ed Osmond and Noemie Bacquie. Additional reporting and editing by Sudip K-Gupta.
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Cheniere Energy announces a jump in its second-quarter profits on the strength of LNG demand
Cheniere Energy announced a significant increase in its second-quarter profits on Thursday. This was largely due to the strong demand for liquefied gas (LNG). In 2024, the U.S. was the largest exporter in the world of liquefied gas. It had shipped 11,9 billion cubic feet of supercooled fuel per day. After Donald Trump took office, the commercial activity in this sector has increased. According to U.S. Energy Information Administration data, the country exported 884.1 billion cubic feet of LNG between April and May. This compares with 671.5 billion cubic feet a year ago. In the first quarter of 2016, LNG revenues were $4.52 Billion, up from $3.04 Billion a year ago. The company reported a net profit attributable solely to Cheniere for the quarter ending June 30 of $1.63billion, or $7.30 a share. This compares with $880m, or $3.84, per share, one year earlier. (Reporting from Tanay Dhumal, Bengaluru. Editing by Shailesh Kuber)
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Airbnb drops as fears about a slowdown in travel demand are renewed by a slower growth outlook
Airbnb shares fell 6% on Thursday before the bell, after the company announced slower growth for the second half of this year. This disappointed investors who had expected a rebound in demand following strong forecasts by major travel companies. Vacation home rentals' gloomy future was a setback for the industry. It had seen a rise in consumer confidence in July and expected budget-conscious Americans would return to vacations, despite inflation and tariffs. United Airlines and Hilton Worldwide forecast a strong growth in revenue for the fourth quarter last month. Booking Holdings, an online travel agency, also reported positive quarterly results last week. The initial tariff shock in April led to a large drop in bookings, said Danni Hewson. She is the head of financial analyses at AJ Bell. Investors are now focusing on the results of Expedia Group, which will be released after the bell. This will help them gauge the health and performance of the US travel industry. Airbnb's weak growth forecast was due to the comparison with last year, when bookings from Asia and Latin America were strong. The company anticipates that night bookings will moderate in the fourth quarter. The implied take rate or the ratio between revenue and gross bookings is expected to be flat in the third-quarter. Booking Holdings has seen an increase of 11.4% in the same time period, while Airbnb and Expedia have each fallen by 0.6%. Airbnb has a much higher price-to-earnings ratio of 28.41 compared to Booking, which is trading at 22.69. Expedia is at 11.57. (Reporting and editing by Ronojoy Mazumdar, Shinjini Giguli, and Kanchanachakravarty from Bengaluru)
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U.S. secures strategic transport corridor in Armenia-Azerbaijan Peace Deal
Officials have confirmed that when U.S. president Donald Trump hosts the leaders of Armenia, Azerbaijan and Georgia at the White House this Friday, it will culminate with the signing of an agreement for peace, which includes exclusive U.S. rights of development to a strategic corridor running through the South Caucasus. Since the late 1980s, Armenia and Azerbaijan are at odds. This is because Nagorno Karabakh - a region of Azerbaijan that was populated primarily by ethnic Armenians - separated from Azerbaijan. Both Armenia and Azerbaijan gained independence from the Soviet Union by 1991. Peace could be achieved in the South Caucasus. This energy-producing region, which borders Russia, Europe and Turkey, is also riven with ethnic conflict and closed borders. The anonymous U.S. officials confirmed that the Azerbaijani president Ilham Aliyev, and Armenian prime minister Nikol Pashinyan will join Trump for the White House signing ceremony and talks. The officials announced that they would sign a framework to create a "concrete path to peace" as well as to address a long-simmering issue of transit. Azerbaijan wants a corridor of transport through Armenia to connect the majority of its territory with Nakhchivan, a bordering Azerbaijani region that is an ally of Baku. The officials stated that under a carefully negotiated part of the documents which the leaders will sign this Friday, Armenia intends to grant the United States exclusive development rights for a prolonged period on a corridor for transit, known as the Trump Route for International Peace and Prosperity (TRIPP) and named after Donald Trump. Officials said that the route would be operated in accordance with Armenian law, and that the United States would sublease land to an infrastructure and management consortium. One of the officials stated that "through commercial means, this will unlock the area and prevent further hostilities". Officials said that the Armenian and Azerbaijani presidents will sign documents asking for the dissolution the Minsk Group. The group has been co-chaired since 1992 by France, Russia, and the United States to mediate in the conflict. Steve Witkoff, the U.S. Special Envoy to the region, visited in March. This was the first time that progress on the Armenian/Azerbaijan problem had been made. His team returned to the region several times in order to broker an agreement. U.S. officials think that a peace agreement between Armenia and Azerbaijan may lead to negotiations about the inclusion of Azerbaijan in the Abraham Accords. These are the normalization agreements between Israel and four Muslim majority countries, which Trump mediated during his first term. Trump is trying to portray himself as an international peacemaker during the first few months of his second tenure. The White House credited him for brokering a truce between Cambodia and Thailand, as well as sealing peace agreements between Rwanda and Democratic Republic of Congo and Pakistan and India. Trump has had less success in ending the Russian war in Ukraine, and the conflict in Gaza between Israel and Hamas. The summit will be held on the day Trump gave Russian President Vladimir Putin a deadline to stop his invasion of Ukraine, or else face additional economic sanctions. (Reporting and editing by Ross Colvin, Lincoln Feast, and Steve Holland)
Investors muted by Fed leadership change and mixed earnings
Investors were cautious in early trading on Thursday as they digested mixed earnings from corporates and continued to be wary of the leadership of the U.S. Federal Reserve.
The expectation of a more accommodating Fed policy has increased in response to weaker macroeconomic data from the United States and Donald Trump's nomination of dovish candidates for the Fed board. According to CME FedWatch, traders now price in a 95.2% probability of a rate cut for September, up from 63% by the end of July.
The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.
Dubai's benchmark index fell 0.4% due to declines in financial and real estate shares. Emaar Properties dropped 1% while Emaar Development fell 2.3%.
Emaar Properties, Dubai’s largest property developer posted a 39.7% increase in net profit for the second quarter attributable shareholders compared to last year, but a 9% drop from the previous period.
The benchmark Abu Dhabi index fell 0.1% due to a loss of 0.4% in International Holding, and a drop of 2.6% in Agthia Group which posted a loss in the second quarter. Burjeel Holding, on the other hand, surged by 4.8% after reporting a net profit that was more than doubled.
Saudi Arabia's benchmark index fell 0.2% with the majority of constituents reporting losses. Petro Rabigh dropped 1.6% after the petrochemical firm reported a net loss of 1,37 billion riyals for its second quarter.
Savola Group fell 1% after the food giant reported a 22% drop in net quarterly profit year-on-year.
The benchmark index in Qatar rose by 0.1%. Qatar Aluminum Manufacturing rose by 2.6% after reporting a 44 percent increase in net profit for the first half of the year. (Reporting and editing by Md. Manzer Hussain)
(source: Reuters)