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British industrial parts manufacturer RS Group reports lower revenue due to Mexico's woes
RS Group, a provider of electronic and industrial components, warned on Wednesday that its annual 'like-for like' revenues would be lower due to the tough market conditions in Mexico. The distributor of?industrial and electrical equipment and solutions said that it expects to see a decline in its Americas revenues in the second half as tariff-driven concerns continue to constrain market conditions in Mexico. It expects to see a?decrease of 0.6%? in LFL revenue for the year ending on March 31 from 3.88 billion pounds (2.90 billion pounds) that it made last year. According to a compiled consensus by the?company, analysts?expect that the firm will log an annual revenue?of?2.92billion pounds. A strict cost discipline will help the firm to achieve a pretax adjusted profit that is marginally higher than the 'average market expectation' of 241 million pounds.
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Which firms will clean-up after the Iran War is over? Maguire
After the U.S. and Israeli air strikes against Iran are over, a new competition is likely to begin: the race for contracts to repair damaged oil and natural gas infrastructures and to restore shipping lanes – and influence – across the 'Middle East. The destruction does not stop in Iran. Fatih Birol, head of the International Energy Agency, warned that at least 40 energy assets in nine Middle Eastern countries have been "severely" or "very severely" damaged. It will take time to repair oil and gas fields and refineries, as well as pipelines, Fatih Birol said. Fatih Birol said that the current crisis is worse than both the oil shocks in the 1970s and the impact of Russia-Ukraine gas war combined. Engineering specialists are lining up for the rebuilding of pipelines that have been destroyed, while logistics companies can repair ports and terminals that have been bombed out. A select group of businesses is ready to turn the end to the conflict into a lucrative business boom. Here are some of the sectors and companies that could be competing for the many energy and port reconstructions projects likely to arise in the Middle East after the war ends and the cleanup begins. ENGINEERING CONGLOMERATES Once the fighting has stopped, multinational engineering giants are among the first to be called to the?Iran to assess the damage and create reconstruction plans. Companies with experience in the repair and construction of oil rigs, refining plants, pipelines, and natural gas liquefaction will play an important role in Iran’s recovery, and in restoring revenue to the country. The ultimate winners will be determined by political affiliations. Both the Iranian and U.S. government are expected to have strong opinions on how contracts should be divided up. After several weeks of constant?bombing, there should still be plenty of work for everyone. SLB (formerly Schlumberger), Halliburton and Baker Hughes, as well as the privately-held Bechtel Corp., are all major U.S. companies with large oil and gas engineering departments. The obvious candidates on the Iranian side are the Khatam-al Anbiya Construction company, controlled by the Islamic 'Revolutionary Guard Corps' (IRGC), and the Mapna Group - the largest oil, gas, and power contractor in the country. The Middle East is home to many international firms, including Italy's Saipem and France's Technip. Larsen and Toubro, India, and Dubai's Sidara, also have extensive operations there. They will therefore have the contacts and experience required to start work quickly. CNPC of China, NMDC in the United Arab Emirates and Petrofac from Britain are also regionally present and will likely compete to win bids. OIL & GASS MAJORS After pipelines and energy infrastructure are repaired, oil and gas producers around the world will look to step up to resume well site extraction and restore the region's refineries. National energy companies throughout the region will likely feature prominently. These include National Iranian Oil Company, QatarEnergy and Abu Dhabi National Oil Company. Shell, TotalEnergies (France), and Exxon Mobil (U.S.) are among the international oil majors with extensive operations in the Middle East. They will also look to protect their position. The destruction is so massive that it gives a'sense of opportunity. Israeli strikes have damaged four units in Iran's South Pars Gas Field, and Iranian attacks in Qatar's Ras Laffan Industrial City have caused extensive damage to the LNG facilities. It will take many years to repair. SHIPPING & UTILITIES Damage does not end at the wellhead. The region's ports, power grids, and water systems have all been affected, and require a similar amount of reconstruction. Recent bombardments have caused significant damage to large ports and merchant vessels in the Iranian waters, as well as scores of other naval and merchant vessels. The Strait of Hormuz, a narrow 'chokepoint' between Iran and Oman that passes roughly a fifth of world crude oil and LNG, has been closed. Reopening the Strait will be necessary for a return to normal energy flows around the globe. Specialists in marine salvage and harbour reconstruction will be needed to restore port facilities and clear shipping channels. The recovery effort is expected to take years. Tavanir, a state-owned company, and Mapna Group, a private group, operate the majority of Iran's transmission and generation networks. They will anchor the recovery efforts at home. Rosatom, the Russian company that manages Iran's Bushehr reactor, near recent strike zones faces a much more complex challenge. This is because any reconstruction effort supported by the United States will likely be challenged. Desalination plant that provide clean water to Iran and Bahrain, as well as parts of israeli electricity grid were also affected, extending the scope of rebuilding beyond Iran's border. Even if fighting ended today, there would still be years of reconstruction to come. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X 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 7 days a weeks.
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Western powers failed to secure shipping on the Red Sea. Hormuz is going to be more difficult
Western allies negotiating a way to protect energy shipping through the Strait of Hormuz face a harsh reality. A similar effort that began years ago in the Red Sea cost billions of dollars, and ultimately failed to defeat Yemen's Houthis. The Red Sea experience, which cost billions of dollars and resulted in four ships being sunk and more than $1billion spent on weapons, is a stark reminder of the Strait of Hormuz. This shipping artery, used by a fifth or the world's oil and LNG supply, has been blocked by Iran - an adversary more powerful than the Houthis. Iran's threats against the strait, and its attacks on the energy infrastructure of nearby Gulf nations has sent oil prices soaring. This is the biggest disruption in oil and gas supply in history. Without the reopening of the strait, energy, food, and other products will be more expensive. Kuwait Petroleum CEO Sheikh Nawaf Sabah Al-Sabah stated in a fiery live video stream to the CERAWeek Energy Conference in Houston, Texas on Tuesday that "there is no substitute for Strait of Hormuz". It is the world's Strait, according to international law and in practical terms. On Tuesday, U.N. Security Council Members were negotiating resolutions to protect the strait. Some nations, like Bahrain, took a strong stance, which would authorize the use "all necessary measures" to defend the strait – including the use force. The interview was conducted with 19 maritime and security experts, who discussed the many challenges that the U.S. faces in protecting the Strait. Iran has more sophisticated military forces than the Houthis. It also has an arsenal of drones, missiles and floating mines. The Red Sea is a much more difficult place to defend convoy operations than the Strait of Hormuz, said retired Rear Adm. Mark Montgomery. He was part of the 1988 U.S. oil tanker escorts that crossed the Strait of Hormuz in the Iran-Iraq War. This is a major concern for U.S. president Donald Trump, who must justify the Iran War to the inflation-weary American public now that gasoline costs nearly $4 per gallon. Analysts said that the spike in energy costs is unlikely to reverse itself until the waterway is opened. Trump has not been committed to U.S. involvement. He first said that the U.S. Navy would escort vessels when necessary, and then, more recently, he stated that other nations should lead the effort. Since the joint U.S. and Israeli attacks against Iran began on February 28, Iran has blocked many ships from entering the'maritime chokepoint. A lawmaker in Iran told state media that Iran is considering the idea of charging vessels who want to enter the strait a fee. THE HORMUZ QUAGMIRE In December 2023 the U.S. launched a mission to protect Red Sea shipping against the Houthis. European nations joined in a few months after. The Houthis sank 4 ships between 2024-2025, despite the fact that the allies destroyed hundreds of missiles and drones. The passageway that once carried 12% of the world's trade is now mostly avoided by shippers, who prefer to travel around the Horn of Africa, a journey which takes much longer. Joshua Tallis is a naval analyst with the research firm CNA. The danger zone surrounding the Strait of Hormuz can be up to five times larger than the Houthis attack zone surrounding the Bab el-Mandeb Strait which flows into the Red Sea. The Iranian Islamic Revolutionary Guard Corps is a professional army with access to funding and its own weapon factories. Military experts say that to provide escorts in the Strait, up to 12 large warships like destroyers would be needed, supported by drones, helicopters and jets. This is to "account" for the limited space available for maneuvering. To protect against drones and explosive-laden unmanned or manned vessels, overhead air coverage is essential. Analysts at SSY said that while a destroyer could intercept missiles, it couldn't sweep mines simultaneously, manage GPS disruption, or counter drone-boat swarms coming from multiple directions. Analysts think that Iran's IRGC fighters are hiding missiles and drones in caves and buildings along the steep mountainous coast. Experts said that in some areas, the shore is so close to ships, drones can swarm them within five to ten minutes. "There are drones, ballistic missiles and floating mines. Even if you could destroy these three capabilities, there would still be suicide operations," said Adel Bakerawan, Director of the European Institute for Studies on the Middle East & North Africa. Tom Sharpe, retired commander of the Royal Navy, says that the U.S. has not faced these threats in the Red Sea. He said that the stakes are high for dealing with these threats. If (the Americans) lost a destroyer, that would change the equation. Sharpe said that 300 people could be killed, referring to the?potential death of U.S. sailors. U.S. Secretary of Defense Pete Hegseth stated earlier this month that there is no evidence that Iran has mined the Strait. This was after reports that Iran deployed a dozen mines along the waterway. Bryan Clark, a Hudson Institute expert on autonomous warfare, says that a combination of mine clearance, military escorts, and air patrols will eventually allow the strait to be reopened. Clark said that it could take months to finally erode the IRGC's threat.
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Openreach uses Google AI to accelerate fibre rollout and reduce emissions
Openreach, a BT-owned network provider, said that it has 'expanded' its partnership with Google Cloud to use artificial intelligence in order to speed up fusing broadband and reduce emissions from one of Britain’s largest commercial vehicles fleets. Openreach runs the largest broadband network in the UK. The partnership was first reported by and uses Alphabet's Google data tools to analyse routes, idling, and fault patterns on its 24,000 van fleet. This covers over 200 million miles (322 millions km) per year. James Tappenden said that Openreach's managing director, James Tappenden, was able to see measurable and practical benefits by applying Google Cloud's technology. The company claimed that the system already reduced unnecessary travel and fuel consumption, as well as supporting a quicker shift to electric vehicles. It said this had saved around 10,000 tonnes CO2 equivalent annually. The network builder also said that it was?using Google AI models to map 35,000,000 homes and national transport corridors. This would allow planners to identify if full-fibre cables could be installed faster. Openreach will invest 20 billion pounds (15 billion pounds) in the roll-out of its fibre network to 25 million premises before 2026. Sam Tabahriti, Alex Richardson and Sam Tabahriti report on the $1 = 0.7459 pounds.
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Libyan security forces recovered projectiles that exploded from a damaged Sharara crude oil pipeline
Libyan security authorities recovered two exploded munitions from a damaged crude oil pipeline at the Sharara oilfield on Tuesday, according to a Tripoli-based interior ministry. In a'statement,' the ministry stated that two exploded projectiles were an M-62 - a russian missile weighing about 250 kg - and fragments of a rocket 130 mm. After a fire broke at the pipeline last week, the National Oil Corporation, the state-owned oil company, redirected flow from the Sharara Oilfield via the El Feel Pipeline?to Mellitah Port and through the Hamada Pipeline to storage tanks in Zawiya. The ministry posted pictures on its verified page on Facebook showing remnants of the exploded projectiles near what looked like a damaged pipeline. The ministry stated that "the projectiles were handled in accordance with approved security and technical procedures. The site was completely secured and all necessary measures taken to ensure safety and prevent potential risks." According to two engineers, the incident has forced El Feel to shut down completely since Thursday. One engineer said that production is expected to resume in El Feel within a week or 10 days. Since the 2011 uprising, Libyan oil production has been repeatedly closed for a variety of political and technical reasons. Sharara, one of Libya's biggest oil production areas, has a capacity between 300,000.00 and 320,000.00 bpd. The field is connected to the country's 120,000 bpd Zawiya refining plant, located about 40 km (25miles) west of Tripoli. A joint venture between NOC and Repsol, TotalEnergies OMV, Equinor, is responsible for the field's operation. Mellitah Oil and Gas is the joint venture between NOC and Italy’s Eni that operates El 'Feel.
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As war disrupts Asia's second-car market, Lamborghinis are stranded on the island of Sri Lanka
Umar Ali Hyder Ali, who runs a used car business in Japan, has been plagued by headaches since the U.S. and Israeli attacks on Iran last month. Hyder Ali has lived in Japan for 20 years. He ships his used cars to South Asia, the Middle East, and Africa. The vehicles are sought after for their relative good condition and durability, thanks to the strict Japanese regulations which require regular inspections and maintenance. He woke up days after the start of the war to find out that one of his shipments, which included more than 500 vehicles, was stuck at sea. The vessel couldn't get into Sri Lanka as the port was full of cargo diverted from Dubai. He said that the cars we had already sent to Sri Lanka sat in the ocean waiting to be loaded because there wasn't enough space. The vehicles were finally offloaded last week at the Hambantota Port, more than ten days late. Hyder Ali's troubles illustrate how the Middle East Crisis and the Near Closure of the Strait of Hormuz is upending the business of used-car dealers in Japan and South Korea. These are mostly small businesses, but together they make up a global industry. Hyder Ali stated that PORT CONGESTION CAUSES "PANIC" The port congestion caused "panic", among Japanese shipping companies. Some of them cancelled shipments. Other companies suggested diverting cargo into ports in Pakistan and China. One company asked for $5,000 on each vehicle. He said that some of his cars may be brought back to Japan. Kobe Motor in Yokohama ships 18,000 cars a month, mainly to Sri Lanka where small Toyotas and Hondas are popular. He has 50 used luxury cars, including Rolls-Royces and Lamborghinis, that he is currently offloading in Sri Lanka and China, because his ships were unable to reach Dubai, where Middle East customers were waiting. He said that air freight was an option for certain clients but only the wealthy could afford it. Japan and South Korea export used cars worth $19 billion in total last year. Japan accounted for slightly more than half. Trade data revealed that more than a third of the 883,000 second-hand cars South Korea exports last year were shipped to the Middle East. According to data from the finance ministry, the UAE was Japan's top destination for used vehicles last year. It accounted for 224,000 units or 15% of all used car export volumes. Dubai is at a bottleneck due to the Strait of Hormuz. This narrow shipping lane connects Iran and Oman. Exporters will face increasing pressure if the war continues, including higher oil costs, currency fluctuations, lower auction prices, and even possible shipping route cuts. SHIPMENTS FROM SOUTH KOREAN HALTED The conflict in South Korea has stopped shipments in what is normally the busiest time for used car dealers. Demand usually peaks between March and September due to construction and travel in the Middle East. Kang Tae Yang, an official with a shipping firm, revealed that activity at a complex for storing vehicles in Incheon has dropped sharply. Around 80% of the cars stored there are usually destined for the Middle East. Kang Tae-yang, a shipping company official, said that more than 70% of the vehicles he owns are currently in storage. He added that vessels at sea have either paused or diverted their voyages rather than continue to their intended destinations. The vehicles parked in storage facilities at Incheon were unable to move due to disruptions to the transportation system, and those loaded on ships did not reach their intended destinations. Some ships are planning to unload their cargo in alternative locations, such as the Middle East, or even further away to avoid the Strait of Hormuz. Dealers stated that this was a decision largely made by shipping companies, and dealers were in discussions with them to understand contingency plans. "We have no other choice than to wait and hold mode whenever war breaks out," said Jin Jae Woong, president of the used car dealership Automobile International. Middle Eastern buyers are fond of models such as Hyundai Motors' Avante MD and Kia K3? Jin stated that the conflict began just when prices would usually begin to increase. He added that his company paid about 40 million won per month to "store" vehicles purchased in South Korea. He plans to buy cars in advance during the recession, assuming that demand will increase once the conflict is over. Exporters have limited options when it comes to finding alternative markets. Ventus Auto's president Yun?Seung hyun said that Africa and Latin America lack the demand to absorb more sales. Containers that his company sent in late January should have arrived at Dubai's Jebel Ali port in early march, but are still delayed. Ships operated by South Korea’s HMM are stuck near Mumbai in India's west. He said that rising oil prices also increased freight rates. Ventus Auto, which generates annual revenues of 6.6 billion won, is largely dependent on the UAE. The disruption is a serious risk because it's impossible to know where the cargo will be shipped. "There is no solution at this time," Yun said.
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The Trump administration is temporarily allowed to unfreeze Chicago Transit Funding by a judge
A U.S. Judge on Tuesday ordered President Donald Trump’s administration to temporarily unfreeze approximately $3 billion in funding in Chicago for rail projects. On Friday, the?Chicago Transit Authority filed a lawsuit against?the U.S. Transportation Department's Federal?Transit Administration. The suit claimed that federal officials had refused to reimburse at least $9.5 millions in grants approved by former Democratic President Joe Biden. The city called the funding suspension a political act of retaliation. U.S. district judge Thomas Durkin granted CTA's request to issue a temporary restraining?order?to demand the funding, but put his decision on hold until this Friday in order to give federal government the time?to appeal. The ruling is a part of an ongoing legal battle between the Trump Administration and Democratic-governed Cities over?the withholding billions of dollars of previously approved federal funding for transit. Similar lawsuits have been filed in New York. The CTA called the ruling on Tuesday "a massive step towards restoration of funding for this historical project." Durkin's decision noted that the Transportation Department only applied concerns about compliance with anti-discrimination law to major projects in Chicago, New York and other cities. This indicates that reviews are "a pretext for some interest unrelated to compliance." Chicago is the second largest U.S. city for public transportation, with a daily average of about one million trips. Transit agency said the frozen grants were crucial for modernizing and expanding the "L," Chicago’s system of elevated and underground trains. The funding had been frozen to upgrade a century-old rail structure and extend a rail line by 8 km (5.5 miles). Chicago requested an "emergency" order, warning that if funding was not provided by Friday the project would be halted. The lawsuit claimed that the federal government was trying to "hold hostage billions of dollar in federal grants for vital infrastructure projects in Chicago." The Department of Transportation did not comment immediately, but last week said it would "fight" to ensure federal dollars are not used for discriminatory, illegal and wasteful contracts. New York's Metropolitan Transportation Authority sued the administration in the last week after the government refused to pay nearly $60 million towards a $7.7-billion subway project. A federal appeals court decided earlier this month that the government must continue to make payments for the $16 billion New York Hudson Tunnel Project, after the Department of Transportation had suspended over $200 million in payments. (Reporting and editing by Franklin Paul, Lisa Shumaker, and David Shepardson)
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MercadoLibre will invest $11 billion this year in Brazil
MercadoLibre, an e-commerce company, said that it would invest?57 billion reais (about $10.9 billion) in?its main market Brazil this coming year. This is a 50% increase from 2025. MercadoLibre stated that the money, which includes operating costs and expenses will primarily be used to expand its logistics, strengthen its ecommerce marketplace platform, and?increase its credit portfolio for its fintech Mercado Pago. The company, based in Uruguay, but relying on Brazil for more than half of its revenues, plans to expand 14 fulfillment centers in Brazil this year. This will bring the total number up to 42. MercadoLibre said it would 'create 10,000 jobs by 2026 in Brazil, focusing on financial services, technology and logistics. By the end of the year, the 'total number of workers in the country will be more than 70,000. The company announced earlier this month that it would invest $3.4 billion in Argentina this year, its third-largest revenue market behind Mexico and Brazil. ($1 = 5,2546 reais). (Reporting and editing by Kyra Madry.)
Uganda's economy expanded by 8.5% during the quarter ending December
The Finance Ministry reported that Uganda's economy grew by 8.5% in the December quarter, up from 5.4% in the same period last year. This was due to strong consumer demand, high construction activity and other sectors.
In a late-night post on 'the X platform,' the ministry said that construction on a $5 billion pipeline that will help Uganda export crude oil to 'international markets has reached 80%.
The 1,443 km (897 miles) long (EACOP), will begin from the oilfields in western Uganda and end at the port of Tanga, on Tanzania's Indian Ocean coastline.
After a long delay, the 'east African' country plans to begin commercial oil production from the 'fields' in the second half of the year. These fields are operated by France TotalEnergies and China CNOOC.
The ministry said that the government forecasts that it will earn $558.04 million in revenue from oil exports in 2026/2027.
(source: Reuters)