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Kuwait Petroleum Corp tries to revive a pipeline lease-leaseback agreement
Kuwait's national oil company announced on Tuesday that it is looking to revive the project of leasing out its crude oil pipelines and then leasing them back. Kuwait joins Gulf counterparts like Saudi Arabia and United Arab Emirates who are leveraging private capital to acquire strategic energy assets. Media reports last week citing sources familiar with the situation said that the company was considering leasing a part of its network to fund an investment plan covering everything from upstream and petrochemicals. Kuwait Petroleum Corp, at a forum in Kuwait on Tuesday, did not disclose figures. This move is similar to the lease-and-leaseback deals made in recent years by Saudi Aramco and Abu Dhabi National Oil Company, as well as Bahrain's Bapco Energies. These deals offer upfront cash for the payment of tariffs over time. Kuwait's official news agency reported earlier this month that BlackRock will open a Kuwait office and have appointed Ali AlQadhi as the head of operations. BlackRock's involvement in the potential KPC deal was not immediately apparent. BlackRock did no respond immediately to a comment request. Kuwait Petroleum Corp announced in late 2023 that it would spend $410 billion between 2023 and 2040 to implement a strategy aimed at increasing production to 4 million barrels of oil per day. Kuwait Gulf Oil Company (KPC), a KPC-owned subsidiary that operates in the Neutral Zone, shared with Saudi Arabia has made significant progress in the Dorra Gas Field Project in partnership with Saudi Aramco. Initial engineering designs have been completed, KPC said at the forum. Kuwait also wants to implement a program to drill offshore oil explorations wells as part of an overall push to increase reserves and production capability. Reporting by Ahmed Hegagy. Writing by Tala RAMAdan and Sarah El Safty. Editing by Kirby Donovan and Ros Russel.
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Sources say that Mercuria intends to remove large quantities of aluminum from LME storage.
Three sources with knowledge of the matter have confirmed that Mercuria plans to remove almost 100,000 metric tonnes of aluminum from the London Metal Exchange's warehouses. This could result in a reduction in the dominant position held by the commodity trader. Since May, Mercuria, a Swiss company, has held over 90% of all aluminium warrants (title documents conferring ownership) 0#LMEWHL>. LME data shows that as of September 4, LME's holdings of aluminium on or available warrant totaled more than 426,000 tonnes . Aluminium is not illegal in the United States. Mercuria announced on September 5 and 8 that it would cancel nearly 100,000 tonnes of aluminium for delivery to LME registered warehouses at Port Klang in Malaysia. The sources claimed. Mercuria declined comment. The backwardation or premium for the cash aluminum contract is around $5 per ton. Sources in the industry say that cancellations of warrants in a backwardated market are rare, as the premiums would normally encourage deliveries to the LME. The LME (owned by Hong Kong Exchanges and Clearing) has not made public statements regarding Mercuria's aluminium cancellations or holdings. The LME did not respond directly to questions regarding Mercuria's aluminium holdings. The LME stated that it has several arrangements in place for preventing any influence from large or dominant positions. The report added that "the LME Special Committee has at times directed market participants to take certain actions in order to reduce large positions on the exchange relative to current stock levels." Globally, the aluminium market appears to be roughly in balance. According to the consensus of analysts in their latest quarterly survey, there will be a small surplus this year of 200,000 tonnes and 281,500 tonnes next year. The global primary aluminium supply is estimated to be around 74 millions tons this year.
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Investors in the Gulf are awaiting US Fed decision
Gulf equities had a mixed start to trading on Tuesday, as higher oil prices provided some support. However, investors remained cautious ahead of the highly anticipated monetary policies verdict from the U.S. Federal Reserve scheduled for Wednesday. Investors are closely monitoring the updated "dotplot" of policymakers and Jerome Powell's guidance. The Fed's position has a lot of weight in the Gulf region, where the majority of currencies are pegged with the U.S. Dollar, thereby anchoring the regional monetary policies. Saudi Arabia's benchmark index rose 0.1% after bouncing from a two-year low in the previous session. Consumer discretionary shares and utilities stocks led to this improvement. Crude, a major driver for Gulf economies, rose to $67.52 per barrel at 0632 GMT. This was largely due to disruption risks from Ukrainian attacks against Russian energy facilities. Fawaz Abdulaziz Al Hokair & Co soared 10%, extending the gains from the previous day, after the company named a new chairperson. Dubai's main stock index was flat during choppy trading as a slump of more than 3% in the telecom monopoly Emirates Integrated Telecommunications (also known as "du") tempered gains made by real estate and industrial shares. Mamoura Diversified Global Holding sold its 7.55% stake to du for 3,15 billion dirhams (858 million dollars) in a secondary stock sale. Emaar Properties, the real estate giant, increased by 0.7%. Salik, the toll operator, added 0.6%. Deyaar Development's stock fell 1% after the appointment of its new chief financial officer. ADNOC Drilling, which has risen by nearly 1%, is the main driver of Abu Dhabi's benchmark index, rising 0.3%. Space42, the U.S.-based Viasat and a joint venture to enable global Direct-to Device (D2D), have announced their plans to create Equatys. Qatar's stock market index rose 0.4% with all sectors showing positive returns. This was boosted by the 0.5% rise in Qatar National Bank (the region's biggest lender). The "QCD Money Market Fund" is the first tokenized money-market fund in the Dubai International Financial Centre. (Reporting and editing by Janane Vekatraman in Bengaluru, with Amna Mariyam from Bengaluru)
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Nigerian FOB levies on imports are suspended after industry protest
Nigeria's Finance Ministry has ordered an immediate suspension of the levy on imported goods. Companies had claimed that the levy would increase the cost of doing businesses and hamper economic recovery. In a late-Monday directive, Finance Minister Wale Edun stated that the Nigeria Customs Service's (NCS) 4 percent Free on Board (FOB), introduced last month, would be suspended in order to address concerns raised by business. Edun stated in a press release that "Following consultations with stakeholders from the industry, trade experts and relevant government officials it became clear that the implementation 4% FOB charges poses significant challenges for Nigerian trade facilitation and the business environment as well as economic stability." Importers, business groups and others had warned against the tax, claiming that it would raise the price of goods, cause inflation and harm Nigeria's competitiveness in the trade market at a time the country is trying to reduce currency volatility and slow growth. The ministry stated that the suspension would allow for an in-depth review of the framework of the tax and its wider economic implications. It added that it would be working with the Customs Service and other stakeholders to create a "more equitable and efficient revenue structure". Nigeria, Africa's biggest economy, is trying to increase non-oil revenue amid falling crude production and increasing fiscal pressures. Businesses have protested against what they consider arbitrary taxes that increase costs and complicate trade. (Reporting and editing by Gareth Jones.)
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Allegro, an e-commerce company, teams up with DPD to launch a delivery program
Allegro, Poland's biggest e-commerce site, announced on Monday that it has signed a new contract with courier DPD to deliver parcels through the company's delivery service. Allegro is scaling and diversifying its logistics. Why it's important Allegro has taken steps to reduce its delivery costs. For example, it increased the merchant co-financing through its loyalty program and developed its own logistic muscle. KEY QUOTES Allegro stated in a filing that the agreement was part of its ongoing efforts to diversify and scale up the Allegro Delivery program by increasing cooperation with its logistic partners. By the Numbers Allegro stated that the agreement covered deliveries to DPD’s automated parcel machines and pick-up/drop-off points, as well as directly to customer addresses. Allegro said the contract will run until April 2020. Allegro has no volume commitments as part of the agreement. CONTEXT Allegro has launched its own delivery program, where it is responsible for the entire delivery process. Initially, Allegro teamed up with Orlen and then added DHL.
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SpiceJet, India's SpiceJet, adds eight more Boeing 737s to its fleet ahead of the festive rush
SpiceJet, the Indian budget airline in trouble, announced on Tuesday that it would lease eight more Boeing 737s to bolster its fleet for the upcoming winter and festive season. The airline has now added 18 Boeing jets to its fleet, including 10 previously leased Boeing jets that are scheduled to be delivered starting in October. SpiceJet signed several settlements with lessors, creditors and others in the last few years. However, it has struggled to expand its capacity. Last week, Carlyle’s Commercial Aviation Investment and Servicing unit paid $89.5 million in settlement to the airline. In June, the airline suffered its second consecutive quarter loss due to a weak demand for leisure travel on certain routes in the midst of India-Pakistan's worst fighting in decades. The company also noted that the delay in bringing its aircraft back into service was a major problem. (Reporting and editing by Sumana Niandy; Urvi Dugar)
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French and Benelux stocks: Factors to watch Tuesday
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. BNP PARIBAS The French bank is one of the biggest in the Eurozone. It said Tuesday that it aimed for a ROCE ratio of 13% by 2028. They also expected a CET1 of 12.5% in 2027. VUSIONGROUP After reporting a net loss of 9.7 millions euros in the first half of the year, French electronic equipment maker Vusiongroup has raised its full-year target. COFACE Christina Montes De Oca, the CEO of Coface in France, has been appointed as the new Chief Executive Officer for North America. De Oca takes over position after Oscar Villalonga. Aéroports de Paris ADP, a French airport operator, reported a single-digit increase in its monthly traffic figures for August. The total was just over 37 million passengers. In a Tuesday statement, the French distributor of petroleum products said it was committed in exploring and considering possible options. This came as a reaction to press reports about "rumors regarding possible transactions" on group's shares capital. WENDEL, BUREAU VERITAS Wendel, a France-based investor, said that it would begin divestment through an accelerated booking process of 23.3 millions shares it owns in Bureau Veritas. This will reduce its stake to approximately 21.4%. EXAIL TECHNOLOGIES Exail Technologies, a French industrial machinery manufacturer, confirmed its annual goals after reporting a half-year revenue totaling 220 million euros. Pan-European market data: European Equities speed guide................... FTSE Eurotop 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt items......... CAC-40................. Paris items............ World Indices..................................... survey of world bourse outlook......... European Asset Allocation........................ News at a glance: Top News............. Equities.............. Main oil report........... Main currency report.....
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U.S. aims to target China's grip over global ports with sweeping maritime missions
According to three sources who are familiar with the plan, U.S. president Donald Trump's government is on a quest to weaken China’s global network ports and bring in more strategic terminals to Western control. This is part of an ambitious effort by the United States to increase its maritime influence. It is also designed to alleviate growing concerns in Washington about being at a disadvantage in the event of conflict with China. The people said that Trump administration officials believed the U.S. Commercial Shipping Fleet was ill-equipped to support the military during wartime and Washington's dependency on foreign ports and ships is excessive. Three people have said that the White House may consider supporting Western or American firms to purchase Chinese stakes at ports. The three people did not name any firms, but cited BlackRock's proposal to buy CK Hutchison's port assets in 23 countries including Panama Canal as a good case study. They asked to remain anonymous because they were not authorized to speak publicly about the issue. Requests for comments from the White House or U.S. Treasury were not answered. Sources say that, in addition to Panama, U.S. officials are also concerned by Chinese holdings of maritime infrastructure, including in Greece, Spain, the Caribbean and U.S. West Coast Ports. A spokesperson for the diplomatic mission of China in Washington stated that China has a normal level of co-operation with foreign countries within international law. The spokesperson stated that "China has been against unilateral sanctions, which are illegal and unjustified. This includes so-called long arm jurisdictions and actions that violate and undermine the legitimate rights and interest of other countries through economic coercion and hegemony. Beijing officials did not reply to our request for comment. The U.S. Government views Chinese investments in ports around the world as a threat to national security, said Stuart Poole Robb, founder and chief intelligence officer of KCS Group. He said that he was concerned about China using its assets to espionage or gain a military advantage, or disrupt supply chains in times of geopolitical crisis. GREEK PORT IN CENTRAL FOCUS Three sources confirmed that the U.S. will examine Chinese interests in the Greek Port of Piraeus. Piraeus, located in Athens in the eastern Mediterranean region, is an important hub for trade routes linking Europe, Africa, and Asia. COSCO, one China's largest port and shipping group, owns 67% of the Piraeus Authority. Sources close to Chinese shipping investors in Greece have expressed concern that Washington could target COSCO operations in Greece. COSCO and Greek government have not responded to comments. Greek officials previously stated that they were not informed of any plans to take control of Piraeus. Washington has already set COSCO as a target. In January, the Department of Defense included state-owned COSCO on its blacklist of Chinese military-linked companies. The designation does not entail immediate bans for U.S. businesses doing business with the listed companies, but it can be interpreted as a sign that further actions are being considered. The Development Research Center of the State Council (an official think-tank of China’s governing cabinet) said in a recent paper that the United States intended to attack China’s international influence through exaggerating the ‘China threat theory’ and use this excuse to force allied countries to choose sides in supply chain agreements. The U.S. Administration has announced measures to increase America’s small commercial maritime presence in the world. This includes encouraging domestic shipbuilding. It also wants to expand access U.S. controlled shipping registries and review global maritime chokepoints to assess shipping risks. China has a vast network of ports that it owns or leases through its state-controlled companies, such as China Merchants in Shanghai and SIPG. A report by the Council of Foreign Relations (a U.S. think tank) published last year stated that China, through its various companies, had invested in 129 ports projects around the world as of August 2024. According to U.S. Navy estimations, China's shipbuilding capacity is 230 times greater than that of U.S. shipyards, so it may take decades for the U.S. to catch up. The U.S.'s maritime push has contributed towards tensions between the U.S. and China, who see port and shipping assets integral to their Belt and Road initiative. This is at a moment when both superpowers have already been at odds over trade and tariffs. MEDITERRANEAN GATEWAY UNDER REVIEW The U.S. Federal Maritime Commission began a review in March of seven chokepoints on the maritime route. It stated that it wanted to identify "regulations, policies or practices" that create unfavourable conditions for shipping. This review examines the Strait of Gibraltar which separates Spain and Africa at the entrance of the Mediterranean Sea. Two sources claim that the Spanish Prime Minister Pedro Sanchez's desire to strengthen trade relations with China has caused Washington to be concerned about Beijing's access its ports. When asked to comment on Chinese port investments, a spokesperson for the Spanish Foreign Ministry said: "We do not know of any concerns or approaches from third parties in this regard and it is therefore not appropriate for us comment." A spokesperson for the Spanish Port Authority confirmed that COSCO holds concessions to operate container ports in Valencia and Bilbao. Since returning to the White House, Trump has taken a number of steps to increase U.S. power over the oceans. In April, he signed an executive directive to revitalize shipbuilding capacities to expand the U.S. controlled vessel fleet. His administration is looking at a proposal for a new shipping registry to be established in the U.S. Virgin Islands. This registry would allow vessels to fly a U.S. flag without meeting the more stringent standards of the U.S. domestic registry. The U.S. will soon start charging Chinese-built or Chinese flagged vessels fees when they call at U.S. port. Trump also wants to seize the semi-autonomous Danish Greenland territory, which is close to the Arctic and has important shipping routes. Sources familiar with the plans say that this is the most ambitious attempt by the U.S. since Richard Nixon tried to boost domestic shipbuilding, commercial ship registry and U.S. maritime power. Poole-Robb, a KCS analyst, said that the U.S. will likely continue to build alliances and partnerships in order to counter Chinese economic growth and power in the near to medium term. CARIBBEAN SHIPMENT CONCERNS According to three sources, the United States is also concerned about Chinese investments in Jamaica's Kingston Terminal, which is a major maritime transhipment hub for the Caribbean because of its location and deep water port facilities. China Merchants owns a share in the company that operates Kingston's container port, along with France's CMA CGM. JISCO, a Chinese metals company, bought the Alpart refinery west of the capital and Port Kaiser in 2016. According to a June study by the Center for Strategic & International Studies, China's presence at Kingston posed the biggest security threat for the United States of all Beijing port projects in Latin America & the Caribbean. On a visit to Kingston in March, U.S. Secretary of State Marco Rubio, described China's strategy as being characterised by "predatory practices", using government-subsidised companies to "underbid everybody" and acquire assets. A State Department spokesperson responded to Rubio's remarks by saying that the presence of untrusted equipment in critical infrastructure around the world, such as ports, increased the risk for U.S. security. Jamaica's Ministry of Foreign Affairs and Foreign Trade spokesperson said that it was unaware of any U.S. communication about the reduction in China's influence on the Caribbean nation's maritime trade. During the first Trump administration, there was some resistance to Chinese investment in the area. Bruce Golding, former Jamaican prime minister who brought Chinese investment to the Caribbean nation, said: "I expect that the U.S. will increase pressure on us to reduce our engagement with China." COSCO, on the other hand, has invested with local partners at the ports in Los Angeles and Long Beach, the United States. The White House has not responded to a question about COSCO's U.S. investment. A senior executive at the Chinese operator of Darwin Port said that the U.S. firm Cerberus in Australia, founded by U.S. deputy secretary of defense Stephen Feinberg has expressed interest in purchasing the lease. Anthony Albanese, the Australian Prime Minister, has promised to return the strategic port in the north to Australian ownership. He also reiterated this position during his July visit to China. Albanese's Office referred to Albanese’s previous comments. A U.S. official of defense, when asked to comment on the matter, said that Feinberg had not participated in any discussions or made any decisions about any acquisitions in which his former company might be interested. Since the end of the term of President Joe Biden, Democratic and Republican legislators have scrutinized China's ownership of its ports. A U.S. Port official who is familiar with the issue confirmed this. Carlos Gimenez said in February that the United States cannot and will not stand by as Communist China undermines our interests at ports.
What is the US and Europe doing in response to the Houthi attacks on the Red Sea?
In a group message that accidentally revealed plans by the U.S. for an attack on Yemen's Iran aligned Houthis, senior Trump officials including Vice President JDVance and Defense Sec Pete Hegseth accused Europe "freeloading"
The attacks by the Houthis on ships in Red Sea have impacted trade between Europe and the U.S.
What is the situation in the Red Sea?
In response to threats by the Houthis to resume attacks on ships crossing the Red Sea, the U.S. launched massive military strikes against them on 16 March that resulted in the death of at least 31 people.
The Houthis, a group that has controlled most of Yemen in the last decade, announced on March 12 that they would resume their attacks on Israeli vessels passing through the Red Sea and Arabian Seas. This ended a relative calm which began with the Gaza ceasefire.
Since the threat, there have not been any seaborne attacks reported on shipping. However, Israel and the U.S. claim to have intercepted drones and missiles launched by Yemen.
The Houthis launched over 100 attacks against ships near Yemen's coastline since November 2023. They claim to be in solidarity with Palestinians in response to Israel's conflict in Gaza with Hamas militants.
According to the U.S.-based company Project44, which specializes in supply chain management, after the attacks, traffic through Suez canal will drop by 75% by 2024. Transit times have also increased by seven to fourteen days on average, as shipping companies choose longer routes.
The U.S. has also been forced to launch a costly offensive against drones and missiles after its air defences have been exhausted.
What has Donald Trump said about the U.S. STRIKES ON HOUTHIS?
Trump warned the Houthis, in a Truth Social posting that "HELL WOULD RAIN DOWN ON YOU LIKE YOU HAVE NEVER SEEN BEFORE", if they didn't stop their attacks.
The White House stated that by launching these attacks, Trump’s government "was standing up to terrorism" and protecting international trade.
Five of the 10 largest importers of goods through the Red Sea were EU countries, according to the statement. The statement also stated that the Houthis had attacked U.S. commercial vessels and warships on 145 occasions since 2023.
Although no response has yet been received, the Houthis have stated that they are ready to "respond with escalation".
WHAT SHIPPING TRAFFIC DOES IT AFFECT?
Houthis has sunk at least two ships, taken another vessel and killed four seafarers.
According to a report from the U.S. Defense Intelligence Agency, published in April 2024, the attacks affected at least 85 countries as well as at least 29 major shipping and energy companies.
According to the report, the majority of the targeted ships were owned and operated by European companies. However, at least eight of them were owned and operated by U.S.-based companies.
Shipping companies have avoided the Red Sea since the beginning of the attacks, choosing expensive alternative routes in Africa that have hurt their profits.
Rolf Habben Jansen, Hapag-Lloyd's Frankfurt-based Chief Executive Officer, said that he didn't expect a rapid resolution of the crisis.
Rolf Habben Jansen, during a 2024 financial presentation, said: "Two to three weeks ago I would have felt more optimistic about when it will be open. Now, I am even more concerned."
Maersk, a Danish shipping company, said that last year the diverting of shipping around Africa's Cape of Good Hope had a "cascading effect" on alternative routes hubs by creating congestion.
Maersk CEO Vincent Clerc stated in February that the Houthis must "degrade their capability (to launch an attack)" or a ceasefire will be needed in Gaza to allow shipping to return to Red Sea.
What are countries doing to combat the HOUTHIS?
The former U.S. president Joe Biden announced in December 2023 that his administration would form a multinational coalition consisting of at least twenty countries, called Operation Prosperity Guardian, to protect shipping through the Red Sea.
The mission included Britain, Bahrain Canada France Italy the Netherlands Norway Seychelles Spain. Operation Aspides was created by the European Union in February 2024 after France and several other countries refused to join the U.S. led mission.
According to an EU official, Aspides has intercepted 4 ballistic missiles as well as 18 aerial drones, 2 sea drones, and protected over 400 commercial vessels.
Aspides stated last week that traffic in the Bab al-Mandab Strait immediately decreased after the U.S. Air Strikes on Yemen.
In addition, the U.S. and Britain conducted five airstrikes together against Houthi targets last year. The U.S. is continuing separate strikes.
Australia, Bahrain Canada, Denmark, Netherlands, New Zealand and Bahrain provided non-operational assistance for the joint strike.
A spokesperson for British PM Keir Starmer informed reporters on March 18 that Starmer and Trump discussed U.S. airstrikes against Houthi targets which Britain supported through routine air-to–air refuelling.
The French navy accompanied CMA-CGM vessels in the past, but in February 2024 the company halted its operations through the Red Sea. In January it said that the company was not yet ready to resume these operations due to ongoing security concerns. Reporting by Elizabeth Piper in London and Jonathan Saul, Lili Bayer and John Irish in Paris; Renee Maltezou and Alex Richardson in Athens. Writing by Charlie Devereux. Editing by Alex Richardson.
(source: Reuters)