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Heatwave in France leaves thousands without power
The authorities in northern France scrambled on Wednesday to restore power to thousands of homes that were affected by a 'power cut' amid a scorching heatwave which has been sweeping western Europe for days. In the effort to restore power, healthcare centres and critical sites are being prioritized. Generators have been?provided? for retirement homes after Tuesday's outages were blamed on an?incident with a transformer, they? added. Officials said that the incident was an accident and related to this heat wave. "Nobody was injured." According to Climate Monitor, record-breaking temperatures in Europe have caused disruptions to transport networks, and schools and tourist attractions to close. Meteo France, the French weather agency, has stated that conditions are similar to "a heatwave" in August 2003 which lasted 16-days and caused an estimated 88,000 excess deaths throughout Europe. The current heatwave was driven by an Omega block weather pattern, a shape which allows temperatures to build day after day. The World Meteorological Organisation says that Europe is heating up at a rate more than double the global average. This makes heat waves?more likely. Heatwaves have forced builders to change their working hours to avoid disasters. Retailers struggle to keep up with demand for portable air conditioners and fans, while farmers harvest grain after an afternoon ban due to fire hazards. Dozens of people drowned when they jumped into water to escape the heat. The grid operator in Britain asked generators to provide more power amid temperatures that are expected to reach record highs later on Wednesday. British health authorities issued a "red-heat" alert for the second time,?warning of a life-threatening risk to the healthiest, the elderly and the sick. The heat and speed restrictions have caused Britain's train operators to advise only essential travel on the two hottest days, Wednesday and Thursday. On autopsy, it was revealed that two children in the south-east of France died from excessive heat after being left in a car. The regional prosecutor stated that their mother claimed that the children were in her car without knowing. The Italian health ministry issued the highest heat alert in 16 cities, including Florence, Milan, Rome, Turin, and Verona. Meteorologists predicted that conditions would worsen, particularly in the 'central and northern regions', and that heatwaves were likely to peak between Sunday and monday. The temperature could reach 41 degrees C between Tuscany, Emilia and Liguria. In coastal areas like Liguria, the combination of extreme heat and humidity can cause temperatures to feel as high as 45 degree C (113 F). (Reporting and editing by Clarence Fernandez, Sarah Young, Giselda Vasgnoni)
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Prologis, based in the U.S., makes a $16.6 billion offer for UK Segro Public after being rejected
Prologis announced on Wednesday that warehouse landlord Segro had rejected its PS12.6billion ($16.62billion) all-share acquisition proposal. The British firm urged shareholders, to pressure the British board to engage the U.S. Logistics firm. Prologis argued that the FTSE 100 company has traded at a persistent discounted to its net 'asset value. It also faces structural constraints, including limitations on its balance sheet which prevents it from unlocking 'value in its data center development pipeline and artificial intelligence. Prologis urged Segro shareholders to encourage the Segro Board to engage with Prologis in order to present a binding proposal to Segro's shareholders. Segro was not immediately available for comment. According to the terms of a proposed merger, Segro shareholders received 0.084 Prologis shares per?share held. This implies a value of approximately 925 pence each, which is a 24.7% increase over Segro's Tuesday closing price. The move is the latest attempt to buy a London-listed company by a U.S. company, as lower British valuations continue attracting American buyers who have deeper pockets. According to British takeover regulations, the company has until July 22nd to make a "firm" offer for Segro. If it does not do so, they are free walk away. $1 = 0.7580 pound (Reporting and editing by Mrigank Dahniwala in Bengaluru, Thomas Derpinghaus).
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Kenya signs $1.2 Billion deal with Chinese firm for Nairobi Airport expansion
Davis Chirchir, Kenya's Transport Minister, announced on Tuesday that the government of Kenya has signed a contract with China Road and Bridge Corporation for an expansion of Jomo Kenyatta International Airport. The agreement is worth 154.2 billion shillings ($1.2 billion). East African nation plans to?triple the capacity of the?Nairobi Airport from 7.5million passengers per year to 22million. The project was previously stopped last year when Kenya cancelled an agreement with India's Adani Group for 2024 following the indictment of its founder?in the United States. Chirchir posted on his X page that the project scope included the construction of a terminal building, modernization of the existing infrastructure and improvement of the airside and 'landside operations. Kenya aims to maintain its position?as regional aviation hub, as countries such as?Ethiopia? and Rwanda?invest heavily in the construction of new airports to attract airlines?and travellers? Last week, Chirchir stated that the government had appointed Africa’s Trade and Development Bank and?Africa Finance Corporation as the financial agents for the project.
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FT reports that Germany has scrapped plans to build F126 Frigates
The Financial Times reported that Germany is planning to scrap a multi-billion euro project to build 'F126 'frigates. This could be a major blow to Rheinmetall as it hopes to win its largest contract. The report, citing two sources familiar with the issue, said that Defence Minister 'Boris Pistorius' and other officials informed senior MPs and industry officials of their intention to abandon plans for six F126 frigates. According to a report, the?country plans to purchase eight smaller MEKO A200 frigates from rival warship manufacturer TKMS instead. A request for comment was not immediately responded to by the German Defence Ministry or Rheinmetall. Armin Papperger, CEO of Rheinmetall, said that the company was preparing to sign a contract to take over the F126 program from Dutch shipbuilder Damen in the second quarter. The F126 frigates are capable of striking targets both above and below water.
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Train service resuming after nationwide IT disruption fixed, German railway operator says
Deutsche Bahn announced in a press release that train service was restored across 'Germany early Wednesday morning after a nationwide disruption of the digital railway radio system had been resolved. A spokesperson for the company stated that "our IT experts have been working non-stop" to resolve 'the issue. They have also succeeded. Services are now slowly resuming. Earlier, Deutsche Bahn halted all trains, citing a problem with the Global System for Mobile Communications for Railways (GSM-R), the main communication device between train drivers and traffic control centers. Deutsche Bahn stated that services may still be limited and it 'would 'issue vouchers for taxis and hotels to passengers, as well as 'offering replacement transport when?possible. The cause of the incident was not disclosed by Deutsche Bahn. Reporting by Christoph Steitz, Christine Uyanik, and Christian Kraemer, Editing by Franklin Paul Jamie Freed, and Stephen Coates
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FedEx expects revenue to rise 11% by 2026, but shares fall after margin drop
FedEx beat estimates for its quarterly profits?and projected an 11% increase in revenue by 2026. However, shares fell 5.7% after a margin drop in the core express segment. Delivery giant also predicted earnings per share between $16,90 and $18,10 for the year. It has shifted its fiscal year from May to coincide with the calendar, instead of its previous year-end. Analysts are still working on'models' that will allow them to compare the new forecast with their previous one. It also follows its June 1 spin-off of its freight trucking division, FedEx Freight. This is part of a multiyear effort by FedEx to streamline its operations and reduce costs. FedEx and UPS have to navigate the changing U.S. Trade Policies, including the ending of duty-free shipments for "de minimis", low-value e-commerce from China-linked discount retailer Shein?and Temu. This has had a negative impact on volumes. LSEG data shows that while its adjusted profit for the fourth quarter of $6.31 surpassed analysts' estimates of $5.96 but margins at its Federal Express core segment dropped to 7.7% compared to 8.4% a year ago as employee costs, fuel costs and outsourced transportation costs rose. Strong domestic demand helped boost quarterly revenue by 12.6%, to $25 billion. This was higher than the $24.04 billion expected. FedEx announced it would also buy back up to $1 billion worth of shares in 2026. Wall Street is focusing on the performance and results of FedEx's package delivery business. It is experiencing a?softness? in ecommerce, along with emerging strength? in the premium overnight business. FedEx's core segment, express, reported a revenue increase of 14%. The freight trucking division's revenue grew by 5%. Federal Express's segment operating results improved in the third quarter due to higher U.S. domestic package yields and International Priority Package yields, the company stated in a press release. Reporting by Nandan Mandyam from Bengaluru, and Lisa Baertlein from Los Angeles. Editing by Vijay Kishore.
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FedEx expects a 11% increase in revenue by 2026 after strong fourth-quarter profits on pricing
FedEx, a global delivery company, said that it expects its revenue to increase?about 11 percent and earnings per share to be in the range of 16 to 18 dollars. This comes after reporting on Tuesday a higher profit for the fourth quarter, helped by increased rates. FedEx's fiscal year has been aligned with the calendar. The fiscal year of FedEx ended on May 31, previously. This comes just weeks after FedEx Freight was spun off on June 1, as part of a multi-year effort to streamline its operations and reduce costs by billions of dollars. FedEx reported an adjusted profit per share of $6.31 for the quarter ending May 31 compared to $6.07 one year earlier. The quarter's revenue increased 12.6%, to $25 billion. This was largely due to strong domestic demand. FedEx and UPS are navigating the evolving U.S. Trade Policies, including the end of U.S. Duty-Free, "de minimis", low-value e-commerce from major China-linked discount retailer like Shein and Temu. This has had a negative impact on volumes. Wall Street is focusing on the performance of FedEx's package delivery business. It is still experiencing a softness in ecommerce, while gaining strength in its premium overnight business. FedEx's core segment, express, reported a 14% increase in revenue. The freight trucking division's revenue increased by 5%. Federal Express' segment operating results have improved in the last quarter, due to higher U.S. domestic package yields and International Priority package returns," the company stated in a press release. The world's biggest?air cargo operator reported an increase of?66% in fuel costs during the third quarter. It has a fleet of 391 turboprops and 391 cargo planes. (Reporting from Nandan Mandayam, Bengaluru; Lisa Baertlein, Los Angeles; editing by Vijay Kishore).
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El Nino could increase gas exports from Argentina to Brazil according to OLACDE's executive
A representative of the 'Latin American and 'Caribbean 'Energy Organization' (OLACDE), said that the El Nino phenomenon could cause Argentina's natural-gas sales to 'Brazil' to increase in the spring months in the Southern hemisphere. A strong El Nino will increase rainfall and frequency in Argentina. This would allow for greater use of hydroelectric power plants. The phenomenon will cause drought in western Brazil. This will require more natural gas to produce electricity at thermal power plants. Guido Maiulini of the strategic advisory department told Friday that Argentina may be able to export surpluses due to El Nino's impact on the Parana River. OLACDE is a regional organisation of 27 countries. Maiulini didn't estimate the amount that?gas sales, which are currently done ad-hoc, could increase. For the first time last year, Argentina exported gas to Brazil through Bolivian pipelines from its Vaca Muerta shale. REGIONAL GAS MARK Argentina is developing Vaca Muerta, located in the western part of the country. This area holds the second largest unconventional gas reserves worldwide and the fourth largest oil reserves. According to OLACDE a greater regional integration of gas is possible due to Vaca Muerta’s unconventional?resources? and?unmet demands in certain markets. OLACDE estimates that expanding regional trade would require an investment of $18 billion for infrastructure in 'Brazil and Uruguay, Paraguay and Chile, Bolivia, Argentina, Bolivia, Brazil, Uruguay. This includes a new gas pipeline connecting the Argentine province Santa Fe with 'Brazil Porto Alegre' and modifications to an existing pipeline linking Argentina to Bolivia. Maiulini said Argentina is currently negotiating with Brazil new gas export deals using pipelines located in Bolivia. (Reporting and writing by Eliana Razewski, Leila Miller, Editing by Rod Nickel).
Andy Home: The ROI-Congo pivots to the west under cover of cobalt control
Cobalt ambitions of the Democratic Republic of Congo are becoming more and more apparent.
Export restrictions were used by the world's biggest producer of the strategic metal used in everything from stealth bombers to mobile phones, to "drain" the market and raise prices.
Kinshasa, as it gains more control of its cobalt industry, is also trying to lessen its reliance on Chinese operators, and pivot toward the West, particularly the United States.
The rebalancing is accompanied by new attempts to integrate the artisanal and small-scale mining (ASM), a minefield of ethical issues for Western cobalt purchasers, into official sector.
MOVING MARKETS
Congo has restricted cobalt exports from February of last year. A full ban was replaced by a quota-based system in October.
Shipments only started picking up again early this year due to teething problems with the new administrativesystem.
China's import numbers are still very low. According to the World Bureau of Metal Statistics which collects customs data, the largest buyer of Congolese Cobalt imported only 5,000 metric tonnes between January and April. This is down from nearly 200,000 tons during the same period in 2025.
Stocks accumulated in previous years due to Congolese excess production cushioned the supply shock until recently.
Cobalt prices have been flat so far this season, but at $26.00 a lb they are more than twice as high as before Congo stopped exports in early 2018.
Supply chain tension is increasing.
The price of cobalt hydrxide, which is the form in which the metal was shipped by Congo has continued to rise, and it now trades at a level that is equal or even higher than the metal price.
According to Ying Lu of Project Blue consultancy, this price?inversion is reshaping supply chains as refineries use more metal in order to produce sulphate - the type cobalt that battery manufacturers use.
This may not just be a passing trend. Project Blue says that this shift in pricing "suggests the market is charging a premium for cobalt units originating from the DRC".
Securing Access
As U.S. investments begin to flow into Kinshasa, China's refiners will find it more difficult to secure access to Congo cobalt.
The Congo's mineral wealth, especially cobalt, was the foundation of the?U.S. brokered deal last June with Congo and Rwanda that ended years of hostilities.
Recent announcements indicate that the deal is beginning to work.
Virtus Minerals is a U.S. critical minerals platform that bought privately-owned Chemaf Copper and Cobalt Mines in May. It aims to resume full operations following years of uncertainty.
The Congo's Entreprise Generale du Cobalt has signed a Memorandum of Understanding with Trafigura, a trading house in the United States and EVelution for the supply of the latter's new proposed cobalt refinery.
The Lobito Atlantic Railway is another U.S.-backed project that links the Congolese Copper Belt with the Angolan Port of Lobito.
Western operators have a new alternative to the Chinese-backed TAZARA rail, which carries goods to the Tanzanian port Dar es Salaam.
ARTISANAL ARTISANAL ARTISANAL ARTISANAL ARTISANAL ARTISANAL ARTISANALL 'GOLDSTANDARD'
EGC must ensure that ASM it provides to its Western partners are ethically pure.
Illegal mining in Congo, and often under dangerous conditions, casts a shadow on the market for?cobalt.
Kinshasa tried to integrate its shadow mining industry before, but with limited success.
A new venture between EGC and Mercuria, a trading house, aims to create a "Gold Standard" for responsible ASM mining of cobalt at the Kasulo Mine site.
If Congo is to reduce its dependency on China by opening up new markets in the United States, it must assure Western consumers that they are not purchasing "blood cobalt".
More Power
The events of this year have conspired together to increase Congo's influence over the cobalt markets even further.
Sherritt International’s Canadian refining operation is under serious scrutiny after the latest round of U.S. Sanctions forced the company's joint venture operations in Cuba to be discontinued.
Ambatovy's nickel-cobalt operations are being sold to a new owner after they were destroyed by a cyclone that hit Madagascar in February.
The nickel refineries in Indonesia, another non-Congo cobalt source, are under pressure due to reduced mining quotas, and the difficulty of obtaining?sulphuric acids, which many require for their processing.
Congo is a country that already produces 70% of the world's mine supply.
This power is being used to redefine not only the cobalt markets but also the strategic position of the country in the global race for critical minerals.
Andy Home is a columnist at. This column is great! Check out Open Interest, your new essential source for 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.
(source: Reuters)