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Korean Air's quarterly cargo revenue falls as tariffs threaten international shipping
Korean Air (003490KS) reported a decline in cargo revenue during the third quarter of the financial year as it saw an increase in risks due to tariffs imposed by the U.S. In its earnings report, the nation's biggest carrier reported that its cargo revenue fell 4.7% from one year ago to 700 million won (1 trillion won). The revenue of the company from its passenger business fell 7.5% over this period. The company stated that the growth of air cargo has slowed down due to a weaker demand for online purchases and increased tariff risks. The firm's industry outlook stated that trade tensions between China and the U.S. continue to cause uncertainty in the cargo shipping sector. The firm expects that online shopping will increase during the holiday season.
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Poland arrests eight suspects of planning acts of terrorism
The Polish security services detained eight suspects of planning to commit acts of sabotage across various regions, said Prime Minister Donald Tusk on Tuesday. Officials claim that Russia has used tactics like arson and cyberattacks to target Poland in an "hybrid warfare" it is waging against nations who support Ukraine's war with Russia. Russia has denied these accusations. Tusk reported on X that "ABW (the interior security agency), working with other services in the past few days, arrested eight people from various parts of country, suspected of preparing sabotage acts." He added that "further operational activity is continuing" but did not give any details. Tomasz siemoniak, minister for special services on X, stated that "the matters... concern the reconnaissance of military installations and critical infrastructure, the preparation of methods to carry out acts sabotage and the direct implementation of attacks." (Reporting and editing by Clarence Fernandez; Karol Badohal, Pawel Florkiewicz)
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Enagas Spain is on track to reach 2025 targets
Enagas, the Spanish gas grid operator, said Tuesday that it was on track to reach its 2025 goals after turning a profit in the first nine-months of the year. The swing was due to a combination of gains from disposals, the revision upwards of the amount awarded by an arbitrator in relation to an investment in Peru and operating costs that were in line with the previous year. The company reported a profit of 262.8 million euros ($306.5 millions) compared to a net loss of 130.2 million euros in the same period 2024. This was due to a capital loss from the sale an asset in the United States. The firm announced earlier this year that it would invest over 4 billion Euros by the end decade. This will be mainly in hydrogen infrastructure as the company diversifies to manage a network for hydrogen infrastructure and also targets ammonia capture and CO2 businesses.
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The ROI-EU is given a bad 'Draghi Report'. But it may not matter: Klement
Mario Draghi's eponymous Report, in which he urged the European Union (EU) to increase productivity and resilience of its economy by investing heavily, has been out for more than a full year. The EU's follow-through has been widely criticized. The region might not have to worry about this. The former president of the European Central Bank, when he presented his report on EU Competitiveness in 2024 urged the EU to continue reforms that would improve productivity. On September 16, the European Commission held a conference at a high level to assess its progress. While the Commission tried to take credit for 34 legislative initiatives and 33 flagship projects, it was widely criticized for moving too slowly. He is right. The EU continues to fall behind. The United States has seen its productivity grow faster than Europe in the past 15 years. Since 2020, the Eurozone labour productivity has grown at a meager 0.7% annually. This is less than half of the U.S. annual growth rate of 1.5%. Investment and productivity are the most effective levers that governments have to boost GDP and raise the taxes needed to control deficits. The OECD's most recent long-term projections predict that the GDP growth rate in Europe will increase from the low levels of the past five years. However, this growth will only be 1.3% in real terms per year, far behind the projected 2.1% growth for the U.S. REARMAMENT BOOSTER Things may not be as bad as they appear. One example is that the new "Readiness 2030", a rearmament program in Europe, will provide 150 billion euro in loans through the SAFE initiative (Security Action for Europe), which are not reflected by the OECD long-term projections. If EU member states raise their defence expenditures in line with new NATO goals, then the total could reach 800 billion euro in the next 10 years. This would result in an additional investment in defence of 4,5% of EU GDP in ten year. This could boost European growth in a significant way. BBVA research shows that European defence spending has a higher fiscal multiplier than the U.S. The fiscal multiplier of U.S. defense spending is usually in the range 0.5-1.0. However, the multiplier for European defence expenditures is consistently higher than 1.0. BBVA's analysis showed that, for every 1% increase in GDP spent on defence in Europe, the trend GDP of the region increased by 1.6% within two years. After this, the effect of the expenditure fades. If deployed all at once, 150 billion euro in defence loans could boost EU GDP by 1.6% within two years. The spending will be spread over 10 years. This could mean that the region's GDP continues to grow over the next decade. This would be amplified if the region reached the 800 billion euro goal. EUROPE'S GROWTH Powerhouse Germany is one country that has already committed to an increase in defense spending. Germany, the largest economy in Europe, plans to raise its defence budget from 3.5% of GDP to a total of 3.5% by 2030 instead 2035 like NATO demands. Next year, Germany will begin rolling out its 500 billion Euro infrastructure investment program. The German government has, unlike many other EU members, been able agree on a budget, and implement necessary processes in order to get money flowing. Germany will spend 58 billion euro per year in infrastructure starting in 2026. This is up from 38 billion euro in 2025. The majority of these investments are in transport infrastructure. Another large portion is in energy transformation and digital infrastructure. These investments will likely give Germany's productivity and GDP growth an important boost. According to a new study, German government infrastructure investments have a multiplier fiscal above 2, with levels in Germany and in the Euro zone approaching 2.5 after three years. If this is true, Germany's infrastructure expenditures could boost German GDP by a staggering 29% in ten years. This would boost EU GDP by 7 percent over the next decade. Germany's infrastructure investment may not be as successful as it seems, because some investments would have been made regardless. Even if the program is only half as effective, Germany's economy could grow by 1.4% annually for the next decade. This would give the EU a 0.3% boost in GDP growth. If you add this to the 0.6% increase in GDP growth that is expected from Readiness 2030 in the EU, Europe's growth could be equal to or even exceed that of the U.S. in the next 5 to 10 years. Draghi couldn't have asked for a more positive outcome. The views expressed are those of Joachim Klement who is an investment strategist with Panmure Liberum - the UK's biggest independent investment bank. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI, can help you keep up. Follow ROI and X on LinkedIn.
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Phillips 66 and Kinder Morgan are eyeing a new pipeline to boost US West Coast fuel supplies
Phillips 66 & Kinder Morgan began Monday to solicit shipper commitments in support of a proposed pipeline that would move fuel from Texas' refining hub into Arizona & California, bolstering supplies amid a recent spate of refinery closings. The new pipelines, if constructed, could ease the strain placed on West Coast fuel supplies by the closures planned for Phillips 66’s Los Angeles refinery at the end of the year and Valero Energy’s Benicia refining plant next year. These refineries together produce 20% of California fuel needs and also help to meet the needs in neighboring states. Regulators have been scrambling to find alternatives for the planned closures. The system proposed to the public by Phillips 66 & Kinder Morgan includes construction of a pipeline that will run from Borger in Texas to Phoenix. In a joint press release, the companies said they would also reverse the flow direction on an existing Kinder Morgan pipe that delivers fuel to Phoenix from Colton in California. The Phillips 66 Gold Pipeline will also reverse the flow of products currently delivered from Borger, Texas to St. Louis Missouri. The companies claim that reversing the flow will allow more fuel to be delivered from refineries in the Midwest of the United States into the Western Gateway pipeline, a proposed new pipeline from Borger, Texas, to Arizona. GasBuddy analyst Patrick De Haan stated on the social media platform X that this could be a huge deal for drivers in California, Las Vegas and Arizona. Fuel prices are expected to increase further due to the planned refinery closings. De Haan stated that the new pipeline system would allow Gulf Coast refiners an increase in capacity for feeding these pipelines. This is especially true in states with political advantages. Magellan Pipeline (a subsidiary of ONEOK) began gauging public interest last month in a new pipeline to transport refined products to El Paso, Texas and the Phoenix region. (Reporting from Sumit Saha and Shariq in New York, with editing by Matthew Lewis.)
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Maersk tests Brazilian-ethanol blend to make cleaner marine fuel
Maersk, a Danish shipping company, announced Monday that it is testing a mixture of Brazilian ethanol blended with marine diesel and methanol - also known as "bunker". This blend will be used to power its vessel engines in an effort to further reduce carbon emissions. Why it's important This initiative could help open up a new market to the Brazilian ethanol industry, while also reducing the carbon footprint of maritime shipping. At present, this sector accounts for approximately 3% global greenhouse gas emissions. By the Numbers Maersk, which accounts for 15% of the world's maritime shipping market is currently testing a fuel blend that contains 10% ethanol. The fuel blend could generate a demand of 50 billion liters per year if the entire industry adopts it. Brazil's production is expected to be around 35 billion liters this year. KEY QUOTES Danilo veras, Maersk Latam's Vice President of Regulatory Policies said: "This is the very first time that ethanol has been burned in a four-story two-stroke engine. It's a new level of research and concern." CONTEXT Veras says that Maersk chose Brazilian ethanol as a test, because it is derived from sugarcane fields or corn, if corn-based. This reduces the potential impact of deforestation. What's Next? Maersk plans to complete the ethanol blend test in methanol powered vessels by October 23. Bunker fuel tests will follow. If the tests are successful, Maersk will begin negotiations with Brazilian ethanol producers such as Raizen, Copersucar Inpasa FS Atvos. (Reporting and writing by Roberto Samora, Fernando Cardoso, Lisa Shumaker).
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Burgum, US Interior secretary, says that the key Alaska LNG pipeline study is expected to be completed in this year.
Interior Secretary Doug Burgum announced on Monday that the backers of an 800-mile (1 287 km) proposed gas pipeline in Alaska, championed by U.S. president Donald Trump, expect to finish a major engineering and cost study before the end of this calendar year. It has been discussed for years, but Trump's desire to increase U.S. fossil fuel development has given it new life. The pipeline is the result of a joint venture by Glenfarne, a U.S. energy company, and Alaska Gasline Development Corporation. Glenfarne announced earlier this year that it would make a decision about the project by 2025. It had also hired Australian engineering company Worley to produce a Front-End Engineering and Design study (FEED), which is a cost and engineering estimate. Burgum spoke at an American Petroleum Institute event. Trump, since returning to office in 2017, has pledged to advance the mammoth plan to transport gas from Alaska’s north to be chilled before being shipped overseas as liquefied gas. Glenfarne representatives, AGDC representatives and Worley representatives were not available to comment immediately. Reporting by Valerie Volcovici, Washington; Nichola Groom, Los Angeles. Editing by Sonali Paul.
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Morocco expects modest economic growth, but a 5.5% budget increase in 2026
The Moroccan finance ministry submitted Monday to the parliament of the country a draft budget for 2026 totaling 761.3 billion dirhams (83 billion dollars), an increase of 5.5% over a year earlier. According to the government's draft budget, the country expects the economy to grow at a slower rate next year, down from the 4.8% it grew in 2025. This is due to uncertainty on the global markets and a projected average grain harvest. In its budget for 2026, the government stated that it would prioritize improving health and education as well as reducing regional inequalities. Protests led by youth In recent weeks, anger about public services has spread throughout the Kingdom. The document shows that the Moroccan government expects the public investment to rise by 12% next year to 380 billion Dirhams, mainly due to spending on infrastructure, such as ports, airports, and railways, in preparation for the FIFA World Cup 2030. Document shows that the country's fiscal surplus is expected to decrease to 3% of its GDP by 2026, from 3.5% in 2018, as increased tax revenues continue to offset higher public investment expenditure. The estimated financing needs for 2026 are 48.744 milliards dirhams, a decrease of 23.26% compared to 2025. Reporting by Ahmed El Jechtimi, editing by Mark Heinrich & Paul Simao
No injuries reported after fire at MOL refinery on the Danube in Hungary was contained
The fire at the main refinery of the Hungarian oil company MOL, located south of Budapest on the Danube River, has been put out. Firefighters are still on site.
MTI, the state-run news agency, reported that a fire started late Monday night at a feed unit. The fire did not affect production immediately.
"A fire broke out Monday night at the AV3 unit of the Danube refinery. The fire has been contained and firefighters are still on site. MOL stated in an email that the cause of the fire is still being investigated.
According to MOL’s official website, the Danube refinery in Szaszhalombatta has been operating since 1965. It can process 8.1 million tonnes crude oil per year.
Both the Danube refinery, and MOL’s other refinery located in Slovakia, are largely supplied with Russian crude oil via the southern spur of Druzhba's pipeline. (Reporting and editing by Jamie Freed, Shri Navaratnam and Anita Komuves)
(source: Reuters)