Latest News
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Heathrow Airport expansion plan of $64 billion chosen by UK
The government announced on Tuesday that it had chosen Heathrow Airport Limited’s plan of 49 billion pounds ($64 billion) to expand the country's largest hub over a more affordable option. After the government announced in January that it wanted to build a new Heathrow runway, they hoped the massive infrastructure project would help drive economic development. This decision ends decades of uncertainty over the future of the airport. Heathrow Airport was comparing its own plan with an alternative proposed by Arora Group. The group owns hotels and land around the airport and had estimated that it would cost 21 billion pounds, but did not include development costs. Heathrow was a "most viable option", according to the government, and it is most likely that the plan will be granted planning permission or development consent by 2029 - the end of this parliament. Heathrow Airport is owned by Ardian France, Qatar Investment Authority, and Public Investment Fund of Saudi Arabia. The airport estimates a 49 billion pound bill to build a new runway and relocate a section of London’s M25 orbital autobahn. Heathrow Airport, located west of London is Europe's busiest and most crowded airport. It operates at maximum capacity. Heathrow's two runways are comparable to those of Charles de Gaulle Airport in Paris, Frankfurt Airport and Schiphol Airport in Amsterdam. ($1 = 0.7620 pounds) (Reporting and editing by Andy Bruce, James Davey, and Sarah Young)
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French Development Agency lends 300 million euros to South Africa's Transnet
The French development agency has agreed that the state-owned South African logistics group Transnet will receive a loan of 300 million euros ($345.78 millions) for clean energy initiatives. Transnet is responsible for managing the rail freight network, ports and pipelines of Africa's largest economy. After years of underperformance, the South African government has been trying to revive the company. This has stifled commodity exports such as iron ore and coal. However, turnaround efforts are just beginning to bear fruit. Transnet and AFD announced in a Tuesday joint statement that loan disbursements will be linked to progress made on sustainability goals, such as Transnet's increased use of renewable energies. The statement stated that the financing would also encourage a shift away from road transport and towards rail. This includes the rehabilitation of 550 kilometers of railway as well as the modernisation port infrastructure.
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Russia urges LNG cooperation with China as it sees potential for boosting oil exports to China
Alexander Novak, deputy prime minister of Russia in Beijing on Tuesday, said that Russia is looking to increase oil exports to China as well as to enhance cooperation with regards to the supply of liquefied gas. Since the beginning of Russia's military operation in Ukraine, in February 2022, China and India are the two largest buyers of Russian crude oil. China imports approximately 1.4 million barrels per day of Russian crude oil via sea, and about 900,000. bpd by pipeline. The United States introduced sanctions last month against Russia's largest oil producers Rosneft, and Lukoil. Russian President Vladimir Putin denounced the sanctions, calling them unfriendly and saying that they wouldn't have a significant impact on the Russian economy. He also emphasized the importance of Russia to the global marketplace. Russia's crude oil exports to China and India have remained relatively stable despite conflicting reports. Novak said at a SinoRussian Business Forum in Beijing that Russia and Chinese partners have been discussing the possibility of increasing oil exports to China. He said, "We see the prospects of increasing oil supply via pipeline routes and sea." He said that the intergovernmental agreements allow for the extension of the terms for oil supply to China via Kazakhstan for a period of 10 years, until 2033. He later met Chinese Vice Premier Ding Xuexian, Russian government said. "Russia is a trustworthy supplier of oil to China." "We will continue actively working on expanding energy as a major area of partnership between China and Russia," Novak said at the meeting. Russia and China have also actively cooperated in the production and export of seaborne liquefied gas. Silk Fund, a subsidiary of China's state-owned energy giant CNPC, owns 9.9% of the Novetek project. U.S. sanctions against Ukraine have slowed down the export of LNG from Russia, particularly the new Arctic LNG 2 facility, and have also significantly reduced the use by the tanker fleet to transport fuel. Receive a 10% discount It received its first LNG cargo, from the sanctioned Russian Project at the end August. This was just days before a summit between President Xi Jinping and Russian President Putin. Novak said at the forum that it was crucial to continue creating conditions for joint projects through joint efforts in the face of external challenges. Mark Heinrich/Guy Faulconbridge edited the article.
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The Gulf markets are mixed in their reactions to the US rate cuts
The major Gulf stock markets were mixed early on Tuesday, after the Federal Reserve's dovish remarks revived hopes of a U.S. interest rate cut in December. Fed Governor Christopher Waller stated on Monday that the labor markets have softened enough to justify a rate cut of 25 basis points at the December meeting. However, any further easing depends on the release of economic data which was delayed due to the government shutdown. His comments follow New York Fed president John Williams' Friday comment that interest rates will likely decline "in a near-term." According to the CME FedWatch tool, investors now price in an 81% probability of a rate reduction in December. This is up from 40% last Monday. The U.S.'s monetary policy changes have an important impact on Gulf markets where the majority of currencies are pegged with the dollar. Dubai's main stock index increased 0.4%. Toll operator Salik Company gained 1.7%, while blue-chip developer Emaar Properties rose 1.1%. Dubai has approved a budget for 2026-2028 with 302.7 billion dirhams in expenditures, and 329.2 milliards dirhams in revenues. The state news agency announced this on Sunday. In Abu Dhabi the index rose by 0.2%. Saudi Arabia's benchmark stock index fell 0.2% due to a drop of 1.2% in the oil giant Saudi Aramco, and a decline of 3.2% in Saudi Tadawul Group. Bloomberg News reports that Saudi Aramco has been exploring ways to raise billions of dollars by selling various assets. The oil prices, which are a major catalyst for Gulf financial markets, eased Tuesday due to concerns that the supply of oil will be greater than the demand in the coming year. This is more important than worries that Russian shipments would remain under sanctions because the talks to end Ukraine's war have not been conclusive. Qatar Islamic Bank also lost 0.7%.
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Officials in Ukraine say that the Russian attack on Kyiv has killed six people and disrupted energy supplies.
Officials said that Russia launched a new barrage on Kyiv, the Ukrainian capital, Tuesday. The attack killed six people and injured 13, disrupted electricity and heating systems and caused other damage. Volodymyr Zelenskiy, the president of Ukraine, said that Russian forces had launched over 460 drones as well as 22 missiles. This was the second major Russian attack on Kyiv in a month. Zelenskiy wrote in a Telegram post that the primary targets of the attack were the energy sector, and all the things which keep normal life running. The air force reported that Ukrainian air defence units had shot down 464 drones and 22 missiles. The diplomatic discussions on ending the war gained momentum as Russia launched several waves of attacks against Kyiv. In recent days, Ukrainian, European and U.S. government officials have discussed peace proposals following a Washington plan that satisfied many of Russia's requests. ZELENSKIY CALLS FOR WEAPONS AND AIR DEFENCE "What is most important now is for all partners to work together towards diplomacy, through joint effort. Zelenskiy warned that pressure on Russia had to produce results. He called for Kyiv to continue receiving weapons and air defence. Zelenskiy stated that four Russian drones flew over Moldova and NATO member Romania, Ukraine's neighbors. Romania dispatched fighter jets in order to track drones that breached the territory of the country near the Ukraine border. One drone was still moving deeper into Romania, according to the Romanian Defence Ministry. Since Russia began to attack Kyiv’s ports on the other side of the Danube, Romania has experienced drones invading its airspace. Fragments have also fallen onto its land. DISRUPTION OF HEATING AND ELECTRICITY SUPPLIES Ukraine's Energy Ministry reported that Russian strikes disrupted the electricity supply to more than 102,000 Ukrainians in five regions. Tymur Tkachenko is the head of military administration in the capital. He said that damage had been recorded on 13 sites throughout Kyiv. Damage to residential and commercial structures and infrastructure. Kyiv officials said that heating supplies in several districts of the capital had also been restricted. Temperatures are unseasonably high, hovering around 8 Celsius. The Russians deliberately target civilian housing and infrastructure. Tkachenko, on Telegram, said: "Cynical terror." Moscow has denied that it deliberately targets civilians, despite the fact that thousands of civilians have been killed since its invasion began in 2022. It claims that civilian infrastructure, such as energy supplies, are legitimate targets in order to harm Ukraine's fighting ability. Officials from Ukraine also confirmed that the Black Sea port city of Odesa had suffered damage to its port and energy infrastructure, resulting in six injuries. (Reporting and editing by Peter Graff, Olena Hartmash, Pavel Polityuk)
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Indospace and Canada's CPPIB acquire six logistics parks valued at $336 million
IndoSpace, a warehouse developer in India, and Canada Pension Plan Investment Board CPPIB announced on Tuesday that they had acquired six industrial parks and logistics parks for 30 billion rupees (336.26 millions dollars) via their joint venture. In 2017, the Canadian pension fund, who owns 93% in IndoSpace Core, created a joint venture to acquire and develop logistic facilities. The two companies said that CPPIB had committed 14 billion rupees for the purchase of these parks located in India's most important logistics markets, such as Bengaluru and Chennai, Delhi, Mumbai and Pune. The warehouse developers are experiencing a rush of demand as companies place bets on China's economic growth and diversify their supply chain beyond China. According to estimates by consulting firm IMARC Group, India's warehousing industry is expected to double in size to $37 billion dollars by 2032. Anshuman Singh, Managing Director and Chief Executive Officer at IndoSpace, said: "As India cements itself as a global manufacturing center, we see an increase in demand for infrastructure that is high-quality and compliant. The CPPIB will invest $205 million in 2023 as part of a new fund that aims to raise $600 million for equity commitments.
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EasyJet UK exceeds its annual profit target and raises the target for holidays
EasyJet, the British airline, reported a better-than expected full-year operating result on Tuesday. It also upgraded its medium-term targets for its holiday business after exceeding its target early. The final quarter of 2018 saw mixed results for European airlines as they struggled to reduce spiraling costs, and the negative effects from air traffic controller strikes continue to weigh heavily on their balance sheet despite high demand. EasyJet's operating profit for its financial year ending September grew from 669.37 millions pounds to 703million pounds ($921.14million), exceeding the projections of LSEG analysts. easyJet Holidays, the high-margin division of the company, is expected to generate 450 million pounds (about 0.7632 pounds) in profit before tax by 2030. $1 = 0.7632 pounds (Reporting from London by Joanna Plucinska and Yamini in Bengaluru, editing by Subhranshu)
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Officials say that a major drone attack by Ukraine on southern Russia has killed three people and injured 16.
Russian officials reported that three people were killed, and at least sixteen injured in a major Ukrainian attack on southern Russia. Residential buildings in the Black Sea Port of Novorossiysk as well as the cities of Rostov -on-Don (Rostov) and Krasnodar were damaged. The Russian Defence Ministry reported that 249 Ukrainian drones had been downed overnight over Russian regions, including 116 in the Black Sea and 92 in the southern regions Krasnodar, Rostov, and Krasnodar. The Governor of Rostov, Yuri Slyusar, said that a painting shop, a storage facility, four apartment blocks and 12 homes were all damaged by the attack. At least three people died in it. Unverified footage posted on Telegram shows what sounds like a drone flying into a residential apartment building in Novorossiysk, home to a major port for oil. The explosion is a ball flame. Veniamin Kodratyev, the Krasnodar governor, said that the Kyiv government had launched one of its longest-lasting attacks on the region. He also revealed that an apartment block in Tuapse – a town located next to an oil export terminal – was damaged. He stated that seven apartment blocks had been damaged in Novorossiysk. Early on Tuesday morning, Russian forces invaded Kyiv, setting fire to at least two residential structures and killing a person. Senior Ukrainian official said. (Reporting and editing by Guy Faulconbridge).
Half United States at high risk of power shortage in next years, regulator states
About half of the United States is at increased threat of power supply shortfalls in the next decade that might lead to interruptions and electrical energy conservation measures, the North American Electric Dependability Corporation said on Tuesday.
As U.S. power usage rises from AI information centers and the electrification of structures and transport, efforts to include electricity generation have actually failed, producing an heightening supply-demand imbalance, NERC said in its annual Long-Term Dependability Evaluation.
We are seeing demand growth like we have not seen in years, stated John Moura, director of NERC's Dependability Assessment and Performance Analysis. Our facilities is not being constructed quickly enough to keep up with the rising demand.
The Midcontinent Independent System Operator, which runs the electrical grid in 15 states, was at high threat of shortfalls even at normal peak demand durations, NERC said.
Other grid operators at elevated risk, in which shortfalls might take place throughout extreme heat or cold, include PJM Interconnection, ISO New England, Texas and California operators. Parts of the northwest, northeast, southeast and midwest were better positioned to keep the lights on over the long term, NERC stated.
Sped up electricity demand added to the high-risk and elevated-risk locations, in addition to planned fossil-fired power plant retirements, which might leave service before new supply comes online.
NERC discovered that there are 78 gigawatts of validated generator retirements, and another 37 gigawatts with revealed plans for retirement, through 2034.
One gigawatt of capability can power as many as 1 million U.S. homes.
NERC is a North American nonprofit regulator that develops market standards, evaluations and forecasts focusing on the dependability and security of the electric grid.
(source: Reuters)