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Hungarians reduce power consumption as Danube water levels drop to record lows, causing an energy crunch
Hungarian households and companies have cut their electricity consumption in an unprecedented manner this week, following a government call to ease the pressure on the grid due to a severe drought. Some residents, standing at the historic Margaret Bridge's foot on the record-low Danube, said that climate change has finally become a reality. Hungary's sole nuclear power plant that uses the Danube as a cooling agent has been forced to close down largely due to the river levels. This has created an energy crisis, stretching Hungary's capacity to supply electricity to its limit, and imports are on the rise. The river levels can affect the plant's ability to run at 10% or more of its full capacity. It's sad and frightening, and it is a serious warning for society to be more careful with its resources... The Danube is a serious wake-up call," said Krisztina Németh, a resident of Budapest, who was wearing a straw cap to protect herself from the heat. People have created eerie cairns to mark this moment. The Prime Minister, Peter 'Magyar, has thanked households and companies who have reduced their electricity consumption by up to 700 megawatts each day during the peak consumption hours between 5 pm and 10 pm. He also wrote on Facebook that there are more difficult days ahead. Magyar stated that "the heatwave is expected to peak tomorrow and today... therefore voluntary reductions in electricity consumption are important between 5 pm and 10 pm." Switching off the air conditioning Unnamed energy analyst said that industrial users were responsible for most of the power saving. However, with the total demand now exceeding 7,000MW, 600MW would be equivalent to the amount saved by turning off one million air conditioners. Magyar reported that 837 large and medium power users had made voluntary cuts, while the state railway suspended freight transport from 5 pm to 10 pm. This translates into a daily saving of up to 90 MW. Authorities have said that decorative lights at a few famous Budapest landmarks were also turned off. Prime Minister said that households also did a good job. We try to use our air conditioners as little as we can at home. Electrical appliances are only used when they are absolutely necessary. Csongor, a Budapest-resident, said, "I think everyone should do the exact same thing." The voluntary savings made by households are even more impressive when you consider that the previous government heavily subsidised household energy bills, which was a system not conducive to decreasing consumption. The European Union recommended that Hungary end this scheme. Magyars' new government that took office in May has said so far it will "keep" the subsidies, and pledged to put?EU money into the grid. The OECD warned last month that Hungary's recurring flooding and droughts have high and increasing costs. Climate scenarios indicate that agricultural losses will increase and infrastructure disruptions are likely to occur. In a report published on July 27, it was stated that Hungary could be among the European countries most likely to suffer from severe droughts and river flooding in the future. (Reporting and editing by Hugh Lawson; Additional reporting by Balazs Kristof, Krisztina Feynyo and Krisztina Tán; Reporting by Krisztina Thán)
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Sinograin auctions off two-thirds its soybeans to make room for US cargoes
Sinograin, China's state stockpiler, sold 67% of its 501,000 metric tons of soybeans at a second auction held in recent weeks on Wednesday. The company is trying to make space for U.S. cargoes. Sources said that soybeans from the 2022-2025 crop sold on average at a price of 4,013.5 Yuan ($594.84) a ton. Deliveries are scheduled between October and December. Sinograin's?previous Friday auction -- the largest since January -- sold about half?the 504,000 metric tons of imported soybeans?at a price of 4,033 Yuan per ton. Traders have said that they expect the stockpiler state to continue auctions in the next few weeks. China is expected meet its commitment to purchase?25 millions tons of U.S. soy beans annually until 2028. The U.S. Department?Agriculture confirmed Tuesday private sales of 132,000?U.S. The U.S. Department of Agriculture confirmed private sales of 132,000 tons of?U.S. soybeans on Tuesday. Sources reported that the sale was made after Beijing purchased an unusually large amount of U.S. soya beans on Friday. On Monday, the?USDA confirmed a part of the deal.
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Russia claims to have struck seven Ukrainian warehouses that contained drone components
Russia said on Wednesday it had struck seven 'logistics centers in Kyiv, and the surrounding area overnight that were used to store or 'distribute goods for dual-use?and drones components.? And that its forces have hit three cargo vessels in the Black Sea. Could not independently verify the claims of the ministry about the nature and quantity of goods stored at the target sites. The attacks, which Ukrainian officials said killed at least fourteen people, were part an intensifying bombing campaign against what Russia claims are targets related to Ukraine’s drone forces. Since July 18, Ukrainian drones have attacked at least 20 warehouses owned by Russia's largest e-commerce retailer Wildberries, destroying many of them. They also continue to attack Russian oil refineries. Kyiv claims it is "bringing the war to the Russian people" and attempting to increase the cost of the conflict for Moscow. The Russian Defence Ministry reported that its forces have attacked four logistic centres in Kiev, including the Nova Poshta Innovation Terminal and Logistics Centre?which is described as the largest automated sorting center for dual-use items - those with both civilian and potentially military applications. The ministry said that its forces used long-range drones and ground-launched?strike missiles. The?ministry said that Russia also struck three warehouses around Kyiv including another major Nova Poshta?sorting compound which, it claimed, stored aircraft-style drones?and components. Defence Ministry: The three cargo vessels that Russia attacked were struck south of Odesa port. The Defence Ministry claimed, without providing any evidence, that the ships were delivering military hardware and weapons to the Ukrainian military. (Reporting in Moscow; Additional reporting by Jekaterina Glubkova in Tokyo. Editing by Andrew Osborn, Mark Trevelyan and Mark Osborn)
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Israel's El Al Airlines doubles second-quarter net profit despite Iran conflict
El Al Israel Airlines announced a doubling of its second-quarter profit on Wednesday. The airline cited recovery from the initial impact of fighting between Israel & 'Iran' despite a sharp increase in jet fuel prices. On February 28, the U.S., Israel and other countries launched airstrikes on Iran. During this time Iran fired missiles towards Israel. This effectively closed Israel's commercial airspace, forcing El-Al and its rivals to fly only limited routes. The conflict was briefly ended by a ceasefire on 8 April. Israel has not been dragged back into conflict despite the fact that Iran and the U.S. continue to attack each other. El Al has a near-monopoly in Tel Aviv as many foreign airlines are yet to resume their flights. This is similar to the situation during the Gaza conflict, when El Al held a near-monopoly. Gil Feldman, Chief Financial Officer, said: "We enter the second half of this year in a strong financial position. We have a solid and liquid balance sheet." The Israeli flag carrier reported a quarterly?net loss of $132 millions, up from $66million a year ago. It said that the $55 million hit was due to the conflict with Iran. The revenue rose from $777 to $986. It has a 'backlog of orders' worth $1.4 billion, based on advance bookings. The company plans to increase seat capacity up to 10% by the third quarter. The company has returned older Boeing 777 aircraft and added two 'Boeing 737' to its fleet of short-haul aircraft. Load factor for the?airline was 90% in the second quarter. This is down from 92% one year ago. According to CFO Feldman, "Based on our current business trends, order backlog, and the continued high demand we expect continued growth."
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German Police examine suspicious object at Leipzig Airport
German police are investigating a suspicious item?found on Wednesday near a runway at Leipzig/Halle Airport after an overnight security incident which temporarily disrupted the airport's operations. A police spokesperson confirmed that the southern runway at the airport, which is a major hub for the logistics company DHL, was closed while experts examined the object with 'explosives disposal technology. Authorities also investigated?reports that an unidentified flying object?could be linked to the incident. The spokesperson stated that several aircraft, including one passenger flight, had been diverted overnight. However, operations returned to normal the next morning. German airports have been put on alert following a series of unauthorised drone 'overflights' at sites including military installations, energy terminals and seaports. The German Federal Police?warned that the overflights may have been organised by Russian agents. Russia has denied any involvement in these incidents. (Reporting and editing by Thomas Seythal, Friederike Heine)
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Maguire: Why natural gas won't disappear from the US power grid
Since years, the narrative of the energy transition has pointed towards a future that is dominated by batteries and renewables, with natural gases eventually falling into the background. The evolution of the U.S. power system, however, suggests a much more complex reality. The solar and wind power outputs are growing quickly and taking a greater share of the electricity production every year. As power demand increases, due to data centers, electrification, and new manufacturing investments, natural gas is still deeply embedded in the U.S. Grid. There are many reasons, both economic and practical: abundant domestic resources and infrastructure, unparalleled operational flexibility, and the growing demand for reliable electricity around-the-clock. They suggest that natural gases will not be able to give up their central role in the energy sector any time soon. FUEL TO BURN The first reason is that the United States has a surplus of natural gas. The shale boom transformed the United States from a major gas importer to the world's largest natural gas producer. The U.S. has massive reserves of gas in the Permian basin, Appalachia’s Marcellus and Utica Formations, the Haynesville Shale and other producing areas. These reserves provide hundreds of trillions cubic feet (technically recoverable) of gas resources, and almost 584 trillion cubic foot of proven reserves. The country's resources are so rich that production continues to be near records. This abundance is important. The United States, unlike many other countries who must import fuel supplies to generate electricity, can do so with an abundant and relatively cheap domestically-produced resource. This is a huge advantage for utilities and policymakers who are concerned with energy security. PIPELINE PRIMACY Infrastructure is another benefit of natural gas. The U.S. built an extensive system of pipelines, storage facilities, processing plants, and power stations based on gas production and consumption. Gas-fired generators are already available in the country, and there is a nationwide pipeline system that can transport fuel from regions of production to markets across the nation. The infrastructure represented trillions in investment. Although renewable energy can be built relatively quickly, replacing reliability services that the existing gas system provides would require huge additional expenditure on transmission lines and storage capacity, as well as alternative dispatchable generation technologies. Existing assets are important in energy markets. Few energy systems have assets as vast as the American natural gas network. RELIABILITY IS KEY! Gas is a good option, but it's not because of underground reserves or pipeline infrastructure. Flexibility is the key. Electric grids must maintain a balance between demand and supply. Generation must be matched with consumption every second of the day. Even though solar and wind energy are becoming more abundant and cheaper, they only generate electricity when the weather cooperates. The solar production decreases each evening. Wind production can vary dramatically over hours, days and weeks. Gas-fired plants can fill this gap. Modern gas turbines are able to ramp up output quickly when required. Gas plants are often used to cushion the grid during periods of extreme heat or cold weather, as well as unexpected supply disruptions. It is difficult to duplicate this operational flexibility at scale. Battery storage is expanding quickly and is valuable in managing fluctuations of short duration. Batteries are expensive and cannot be used for backups that last more than a day. Also, technologies to provide reliable power during extended periods with low renewable outputs are limited. Grids need electricity at all times, not just during favorable weather conditions. Demand for flexible gas is increased by the use of renewables It may seem counter-intuitive but the success of renewable energies could be one of the biggest drivers of gas demand. Grid operators are increasingly in need of resources to balance intermittent supply as solar and wind power enters the system. Evening demand can spike sharply after a daytime surplus. Long periods of cloudiness or low wind can cause large generation deficits. The greater the amount of renewable energy that is available in the system, then the more valuable it will be to have resources ready to respond quickly if the renewable output drops. Gas and renewables, from this perspective, are complementary technologies rather than direct competitors. When available, solar and wind can provide electricity at a low cost. Gas is a reliable alternative to solar and wind when they are unavailable. This partnership helps to explain why many areas continue to add renewable generation while simultaneously relying upon gas-fired capability to maintain system stability. DEMAND GROWTH CHANGES ALLTHING Gas is also likely to stay in place because the U.S. power grid is facing a challenge that it hasn't faced for years: a rapidly increasing electricity demand. After a decade or so of relatively flat consumption rates, utilities now have to scramble to accommodate data centres, artificial intelligence infrastructures, semiconductor manufacturing, industrial relocation efforts, and transportation electrification. The industry is increasingly predicting sustained growth in load through the 2030s. To meet the demand, you need a generator that can be quickly deployed and that operates at high rates of utilization. Construction timelines for nuclear projects are often long. Permitting and completing transmission projects can take many years. While large-scale storage is expensive, most U.S. power plants are several decades old and face supply chain bottlenecks. Gas plants are a familiar technology, with mature supply chains, and a long history of operation. These advantages are of great importance to utilities that face immediate reliability issues. ECONOMICS STILL MATTERS Economic arguments are also compelling. U.S. Natural Gas Prices have been relatively low for most of the last decade, thanks to shale gas production. Gas-fired plants are relatively cheap to build when compared with other alternatives, such as nuclear power generation. It is also important to note that a large part of the fleet already exists. Utilities don't need to spend money on new systems in order to continue using assets already built and connected to grid. The economic inertia suggests that natural gas will continue to be a major component for the electricity sector. This does not mean that the energy transition has stalled. In the coming decades, wind, solar and batteries will account for an increasing share of U.S. electric supply. There is a difference between a fuel that loses market share and one that becomes irrelevant. The growth of natural gas in the US power sector is no longer undisputed. Its combination of?abundant domestic supply, existing pipeline, affordability, and unmatched operational versatility gives it a claim to being indispensible that no other resource has currently. The grid of the future may be cleaner and renewable than that of today. If reliability is a non-negotiable requirement, then natural gas will remain a key component of the grid. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. 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DHL confirms its outlook and bolsters the buyback program after Q2's beat
DHL, the German logistics group, increased its share-buyback program by EUR 500 million ($ 577 million) and reiterated its yearly forecasts following its second quarter results that exceeded market expectations. The group announced that the program, which was launched in 2022, will now be worth up to EUR6.5billion and run until 2027. DHL's revenue for the second quarter rose by 13% from a year earlier to EUR22.4 billion. This was above analysts' expectations of EUR20.41 billion in a consensus provided by the company. The group stated that the increase in fuel prices was due to higher fuel costs and higher shipment volumes by 'DHL Express. These results show that logistics companies benefit from a volatile trading environment marked by geopolitical tensions, tariff uncertainty and shifting supply-chain routes. DHL was one of the first major European logistic companies to increase its outlook for 2026 in July. It has since been joined by peers like Hapag-Lloyd, Maersk, DSV, and Kuehne und Nagel. Rico 'Luman, senior analyst for ING in the area of logistics and 'automotive, said that the Middle East -conflict would support the direction of logistics service providers until 2026 even if a resolving is?reached this year.
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Russian strikes on Kyiv region kill 14 and damage warehouses according to responders
Emergency service officials reported that overnight, Russian strikes in Ukraine's capital of Kyiv resulted in 14 deaths, 27 injuries and damage to warehouses. The military administration reported that seven sites in the 3 million-person capital were pounded by an attack that began at midnight. In Kyiv, authorities reported that one person was killed and 24 injured. Buildings were also damaged. "There could be more people underneath the rubble," wrote Mayor Vitali Klitschko on Telegram, after rescuers rescued two people from the wreckage of a warehouse that was destroyed during the attack. Search and rescue operations continue. He added that an ambulance driver was one of the 24 injured. Four of those are still in critical condition. The Russian defence ministry announced on Wednesday that it had struck supply centers and logistic hubs in Kyiv, and the surrounding area, accusing these of being used to military purposes. Klitschko claimed that the attack caused fires to spread in storage and warehouse areas. However, initial reports that an apartment building of 20 stories was on fire proved false. He said that a large fire broke out in the city's suburbs and that debris from a missile fell next to a residential building. The Kyiv Military Administration said that the attack had caused an ammonia leaking, which emergency crews are tackling. Witnesses heard "explosions" throughout the city. Klitschko claimed that air defence units were scrambled in order to repel the attack. In the last few weeks, Russia has intensified its attacks on Kyiv. Several of these have occurred in the last?month. Ukraine has hit the logistics hub of Russian retailer Wildberries in Russia. This is one more damage it has caused recently. Could not independently verify all reports. Russia and Ukraine both deny that civilians were targeted in the conflict that was sparked by Russia's full scale invasion of Ukraine on February 20, 2022. Reporting by Jekaterina Glubkova and Ron Popeski; Editing by Sanjeev Mglani and Kate Mayberry, Clarence Fernandez
German police investigate drone discovered at Leipzig Airport, DHL operations impacted
Sources familiar with the incident said that a DHL cargo plane hit an unknown object while descending from Leipzig/Halle Airport in eastern Germany over night, which led to a 'unscheduled landing' in Hanover.
The authorities said that they were investigating the drone, which was found overnight near a runway of the airport. According to the Bild newspaper, the drone contained a detonator. A spokesperson for the police said that the southern runway at the airport, which is a major hub of logistics company DHL, was closed as explosives experts examined a drone.
The spokesperson stated that several aircraft, including one passenger flight, had been diverted overnight. However, operations returned to normal in the morning. German airports have been put on high alert following a series unauthorised drone 'overflights' at military installations, energy terminals as well as seaports and logistic companies. Federal police said that the drone?overflights may have been arranged by Russian agents. A DRONE WAS FOUND NEAR RUNWAY According to Bild, a drone containing a detonation device was found in the vicinity of an Ukrainian cargo plane just before midnight on February 2. One cargo plane was forced to abort landing while air traffic was diverted. The cargo plane then struck an unknown object, before landing in Hanover where minor nose damage was discovered. A spokesperson for the interior ministry confirmed that a drone was found at the airport, but gave no further details. European security agencies are investigating a number of incendiary devices that were hidden in parcels and caught fire in 2024. This has raised concerns about the sabotage of air cargo operators. Some of the devices have been found in a DHL facility in Leipzig, and in freight shipments traveling across Europe.
Russia has denied any involvement. DHL Group CEO, Tobias 'Meyer, said that the German logistics company was still examining the overnight incident. Meyer stated during a call to discuss quarterly results that "we have plans for situations like this and will try to ensure the 'influence on our customers is as low as possible." Markus Wacket, Friederike Inverardi, and Miranda Murray contributed to the reporting. Thomas Seythal and Ludwig Burger edited by Sabine Wollrab, Kevin Liffey, and Thomas Seythal.
(source: Reuters)