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CK Hutchison’s halted Panama port operation weighs on earnings
?CK Hutchison said that its cargo traffic and 'port earnings were?affected by a halt in operations in Panama. It also added that there had been little progress on a sale of the majority of its ports businesses for $23 billion. Li Ka-shing's conglomerate, owned by Hong Kong’s richest man, Li Ka, is embroiled in a diplomatic dispute since U.S. president Donald Trump objected to Chinese control of ports on the Panama Canal. This was followed by the cancellation by Panama of the concessions it had in the country. CK Hutchison’s ports division reported a 1% decline?in throughput. However, earnings before interest tax, depreciation, and amortization (EBITDA), despite the HK$496?million hit from Panama, rose?4%. Panama Ports Company's (PPC) is seeking more than $2 billion from Panama in damages through arbitration, after being removed from operations at two ports near the Panama Canal for nearly 30 years. The legal battle has complicated the plan of the group to sell dozens ports around the world, including the Panamanian Terminals, to a consortium that includes BlackRock, Mediterranean Shipping Company, and another strategic investor, which sources identified as China's COSCO. Frank Sixt, Group Finance Director at a earnings conference, said that there was "absolutely" nothing to report in terms of the transaction. CK Hutchison's retail business helped to boost the group's underlying profits by 6.7% in the first six months of the year.
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One person killed in blast at Rotterdam Port Energy Facility
Officials said that a blast occurred at a storage area for 'petroleum' products in the?Port of Rotterdam,?the Netherlands, on Thursday. One person was killed and several others were injured. The cause is unknown. Gunvor, a major trading company in energy commodities, said that an "incident occurred"?during the maintenance of a storage tank. Police spokesperson said that no immediate signs of sabotage were present and?that the investigation was looking at all possibilities. Rotterdam, Europe's biggest port, is home to?oil refining facilities?,?liquefied gas terminals? and?multiple chemical plants? Shell, Exxon 'Mobil, BP, and Gunvor Energy, among others, are energy giants that operate at the port. Around 11:30 am (0930 GMT), the explosion took place. Gunvor has said that it is cooperating with the local authorities. Shell stated that the explosion had no impact on its operations at the port. The spokesperson for Rotterdam Port said that the LNG terminals were not affected. Exxonmobil has shut down all of its 191,000 barrels/day Rotterdam Refinery units due to an outage in power, according to a Wood Mackenzie alert sent to customers. Exxonmobil didn't immediately respond to an inquiry for comment. Rotterdam Port said that there was no "connection" between the explosion and the power outage. Reporting by Charlotte Van Campenhout, Inti Ladnauro and Richard Lough. Writing by Richard Lough. Editing by Toby Chopra, Hugh Lawson and Toby Chopra.
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Petronet India says it is unclear about September LNG deliveries from Qatar
Petronet LNG, India's largest gas importer, does not have a definitive liquefied gas supply plan with its main supplier Qatar. This was revealed by its CEO on Thursday as the Middle Eastern producer reviewed force majeure from month to month. In March, Qatar declared force majeure for LNG exports after Iran hit two of Qatar's fourteen production trains. The U.S. - Iran conflict has also 'disrupted fuel shipments via the Strait of Hormuz. This route carries around a fifth of global oil consumption, as well as large quantities of LNG. After Petronet's earnings for the June quarter, A K Singh said to the media: "They haven't given any definite plans for supply of LNG in September." "Everything is tied to the Strait of Hormuz, and their initial?plans." Singh stated that Indian companies import LNG from Oman and the United States, Nigeria, Angola and Nigeria to make up for the shortage of LNG supplies from Qatar. PETRONET STATES FORCE MAJEURE HAS IMPACTED 56 CARGOES TO DATE He said that Qatar declared force majeure for supplies in August. The measure has affected 56 of the company’s Qatari LNG shipments. He said that the Qatar deal allows the delivery of delayed cargoes until April 2028 when the existing long-term agreement ends. Petronet received Qatari LNG cargo last month on the tanker Tembak. Another cargo is due to arrive this month. According to LSEG's trade flows, Petronet's Dahej Terminal is expected to receive a LNG cargo from a vessel Al Gattara loaded with a cargo from Ras Laffan on Sunday. Singh stated that the company has suspended its operations on?its three tankers Disha, Raahi and Aseem which were chartered to?import LNG from Qatar. He said that Petronet would be receiving 600,000 tons of LNG this year from the Australian Gorgon project under its 1.2 million ton per year supply agreement with ExxonMobil. Petronet imports 1,42 million tonnes of LNG per year from the Gorgon Project, where ExxonMobil is a shareholder, as part of a separate, long-term agreement with the U.S. energy giant. (Reporting and editing by Nidhi verma)
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German police confirm that investigation of suspected explosive device found on rail tracks is underway
German police confirmed on Thursday that they were evacuating nearby buildings to allow the explosive item, found on rail tracks in 'the 'Bavarian town Treuchtlingen, to be safely moved. Bavarian police announced on X they were clearing buildings in the area as a precaution. A spokesperson?added two to three homes are being evacuated in order for the object to be moved. The object was discovered in the southern area of 'the Bavarian City. Police also stated on X that experts are analyzing X-rays of the object. The robot is lifting the object to allow for further examinations, it stated. Bild magazine described the object as an elongated metallic object. However, they did not give a source. German authorities have been on high alert for over a week because of an attempted drone attack at Leipzig airport, in eastern Germany. An unmanned aerial device with explosives near the runway was discovered. Treuchtlingen is a city of 12,000 residents located 150 km (93 miles), northwest of Munich.
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Iran and the US claim competing control of Strait of Hormuz
The Strait of Hormuz, the newly appointed head of Iran’s Basij paramilitary group said on Thursday. This was a day after U.S. president Donald Trump claimed that the United States held "total" control of the strategic waterway. Hossein Taeb claimed that the U.S. tried to undermine what he called the Islamic Republic's popular in the region by launching a war in the Strait of Hormuz. However, they were defeated once again despite their claim that Iran had neither an air force or a navy. Taeb told the semi-official Fars News that "Today, you can see that the Strait of Hormuz has been placed under the?management and control of Islamic Republic," adding that Iran is continuing its 'course in total security. The strait was effectively closed after the beginning of the war which began on February 28 with the U.S. and Israeli strikes against Iran. This strait used to be the route through which one fifth of all oil and LNG in the world were shipped. The U.S. then imposed a blockade against Iranian ports and shipping, claiming it would ensure freedom of navigation by vessels traveling to and from non Iranian ports. The two countries signed an interim agreement in June declaring a ceasefire permanent and calling for the return of freedom of navigation to the Gulf. After a few months, the deal collapsed after Iran resumed limited attacks against vessels it claimed were violating the 'agreement'. Washington then re-started strikes in Iran's south provinces to weaken Tehran's capability to target vessels in the Gulf. Rasoul Sanaei Rad, a senior military official, said that Iran wouldn't reopen Strait until the other side met its obligations under the interim agreement. According to Fars News, he added that the U.S. couldn't achieve the reopening unilaterally. Sanaei-Rad warned that Iran will respond more aggressively in a future conflict. He said: "In the event of a future war, Iran will be more aggressive and firmly stand our ground." (Reporting and editing by Dubai Newsroom, Toby Chopra & Sharon Singleton).
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Maguire: The boom in renewables in Europe is causing a fall-off of gas demand.
In recent years, the question that has defined Europe's energy history has been whether there is enough gas in the region. This question is becoming outdated. After the Russian invasion of Ukraine, traders, policymakers and utilities became obsessed with storage levels, LNG cargo arrivals, and winter weather forecasts. Gas inventories were the main measure of Europe's security in terms of energy. A new trend is emerging in the power system of the continent, suggesting that Europe may be increasingly asking the wrong questions. It is not a question of whether Europe will be able to secure sufficient gas. The question is not whether Europe can secure enough gas supplies. The combined electricity generated by Europe's solar and wind farms will surpass the output of gas-fired plants in 2026 for the first time ever. This may seem like another milestone in the clean energy industry. It could be a sign of a major structural change in the European gas market. RENEWABLES ARE NOW THE CENTRE OF ATTENTION Gas used to generate more electricity than the combined output of Europe's wind- and solar-powered fleet. Data from the energy think tank Ember?shows that in 2016, solar and wind combined monthly output generally hovered around 30 to 45 terawatt-hours (TWh), whereas gas-fired production often exceeded 100 TWh. Today, the gap is gone. Solar and wind combined output has increased to 80-110 Terawatt Hours per month, while gas-fired power generation has been steadily losing ground. Renewable generation has been able to match or exceed?gas production for long periods of time in 2025 and 2026. This is not just the result of good weather. Gas-fired power generation in Europe has increased modestly from 250 gigawatts (GW) to 400 GW over the last quarter century. Over the same time period, wind and solar power capacity has risen from 20 GW up to 750 GW. In Europe, wind and solar power is now installed at nearly double the rate of gas-fired power. That distinction matters. Weather can explain temporary shifts in generation. Changes in the footprint of generation fleets drive structural shifts. Europe has been steadily building a power system based on renewable resources, rather than fossil fuels, for the past two decades. After installing sufficient renewable capacity, the decline in fossil?generation is no longer a policy goal but a mathematical result. The data suggests that Europe has crossed this threshold. Fewer months of gas burning Even more interesting are seasonal generation statistics. Gas has historically been the mainstay of Europe's energy system. Demand peaks in winter, but falls in spring and summer. Now wind and solar are increasingly dominating the April-through-October period. By 2026, the renewable energy sector will have reached new highs and coal and gas production will be at multi-year lows. As renewables provide a greater share of electricity, the traditional gas-burning season is getting shorter. This could be a game changer for the gas market. Each month, the use of renewable energy reduces gas consumption and lowers imports of gas. This is a major source of gas demand in Europe. HIDDEN STORAGE STORY Gas inventories may have the most significant impact. Storage has been a crucial insurance policy in Europe since 2022 against disruptions of supply and seasonal demand spikes. If the power sector gas demand continues to shrink, Europe might not need as much gas in storage during summer or as little gas withdrawn during winter. Storage is essential for cold snaps and times of low renewable production. As wind and solar power continue to replace gas, the continent may find that its need for gas inventory is gradually decreasing. The debate is now "How much gas does Europe actually need?" This shifts the debate from "Does Europe have enough gas?" to "How much does Europe really need?" BRIDGE FUEL NOT MORE? The trend is reinforced by the broader historical context. Natural gas has been the main replacement fuel in Europe for power generation and industry since the 1990s. Renewables now pose a similar threat to gas. Years ago, policymakers referred to gas as a fuel that bridged the gap between coal and "renewables". The power system in Europe is increasingly looking like it's approaching the other side of this bridge. Europe does not just produce cleaner electricity with each new wind farm or solar park. It is reducing the amount it has to import, store and burn. For a continent who spent years worrying about whether they would have enough fuel to make it through the winter, the ability to use less gas in the first instance may be the most significant energy development. 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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Air India now tests all pilots for drugs after a captain's positive test for marijuana
According to an internal memo, Air 'India will start mandatory substance testing for all pilots starting Thursday. The tests will go beyond the'regulatory requirements'. The tests are to screen for substances or medications that are prohibited by aviation regulations. They will be conducted in conjunction with training sessions at Gurugram Academy, at offices and briefing centres, and after flights at designated locations. The test will also be conducted on the pilots of Air India Express, a budget airline. Air India didn't immediately respond to an email seeking comment. Airline rules currently require that at least 10% their flight crew be tested for psychoactive drugs each year. Air India stated in a memo that "we feel it is now important to go even further." The initiative was meant to maintain?safety and reassurance for passengers and other stakeholders. Authorities are investigating an incident that occurred on August 4, involving an Air?India Airbus A320neo, which was flying from Phuket to?Delhi and suddenly lost 300 feet (91 meters) of altitude while?cruising. A source familiar with this matter said that the captain of the flight tested positive for marijuana during a confirmatory drug testing. Reporting by Abhijith Ganahapavaram. (Editing by Emelia S. Sithole-Matarise, Mark Potter.
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Heron Power to invest $100 million in new factory for advanced grid equipment
Heron Power, a'startup' run by a former executive at EV maker Tesla said it planned to build a factory in California for $100 million to produce advanced transformers to be used on the U.S. electrical grid. Heron will convert an old 286,000-square-foot distribution warehouse, 30 minutes south-southeast of San Jose, into a factory to produce Heron Link - a 5-megawatt mid-voltage power-conversion system for large-scale energy projects and data centers. In February, the company announced that it had raised $140m in a Series B round of funding. Investors Andreessen Hoowitz and Breakthrough Energy Ventures were included. Drew Baglino is the CEO of Heron, and he spent 18 years working at Tesla. He believes that software-controlled chip-based converters can compete against conventional transformers filled with?steel and oil. SHORTAGE of CRITICAL Components Baglino wants to take advantage of the rapid transformation of the U.S. grid as the demand for data centers, heat pumps, and electric vehicles grows. The infrastructure of transmission and generation is not prepared for the electrification. U.S. Energy Department officials pointed out during a meeting in March that much of the U.S. grid is still based on infrastructure and engineering from the 1960s and 1970s. The country is now facing a shortage of critical components that are needed to maintain it. Baglino stated that "there's definitely a challenge in supplying new equipment." He said that it could take up to four-years to receive a standard transformer, as the majority of grid components are imported. The power industry will spend an estimated $1 trillion in the next decade on new power plants, solar power, battery charging stations, and high-voltage transmission cables. Heron plans to "start mass production" of its equipment in late 2027. Baglino refused to name any customers but stated that he had received strong interest from data center developers and electric utilities. Baglino stated that "any grid which is rapidly changing requires this type of electronic." (Reporting and editing by David Holmes; Tim McLaughlin)
The commodities supercycle has arrived. How can investors get involved? : Taosha Wang
Commodities supercycles have the power to reshape market trends for many years, even decades. We appear to be back in one, as the Iran War has amplified a number of long-term bullish tendencies. Many investors are now asking how to engage in the supercycle, rather than whether they should. Oil recorded its biggest monthly gain ever following the U.S. and Israeli strike on Iran in February. Add to that the substantial gains in copper and gold since mid-2025, and the race to find energy, metals, and minerals to fuel the artificial-intelligence arms race. A commodities supercycle is underway.
Commodities supercycles are long, powerful waves that are driven by major structural changes. Think of the oil booms of 1970s or the urbanisation boom of China in the early 2000s.
How can investors participate?
Commodities tend to be treated as one asset class. However, a bullish market does not always occur in the same way across all of them. Leadership tends to change. Rotation within an asset class is as important as the overall direction.
As an example, while a geopolitical event may immediately lift the oil price, copper and gold prices may fall or even lag as investors reduce their crowded positions, or reassess risks to growth.
In 2022, energy prices spiked following Russia's invasion in Ukraine. Meanwhile, some industrial metals fell as concerns about recession grew.
We're seeing such divergence again today.
After the Iran War began, oil prices soared by 64% as energy supplies were squeezed. This acted as a hedge for portfolios against volatility in equity markets. Gold fell by 12% in March, its worst month since 2008. This was largely due to the fact that it had been inflated for months by heavy speculative purchases and was among the few liquid assets that investors could sell when margin calls were made.
What are the most important things that investors need to keep in mind when they're considering riding the latest commodity waves?
Small Pool, Big Waves
Investors should first remember that even small changes in the allocation of commodities can have a "massive" impact on prices.
Commodities play a huge role in the real economy but are not as important for investors as stocks and bonds. Energy and materials account for less than 6% of S&P 500 compared to more than 30% in the case of the "Magnificent 7" tech giants.
The price is determined by the margin. Even if a small amount of capital is moved from broad equities and bonds to commodities, whether via physical exposure or listed options, the price impact could be significant. A small market will only absorb so much new capital before prices adjust.
Another key issue is interconnectedness: the movement of one commodity can change the outlook for other commodities.
Many commodities are interconnected through the potential substitution of demand or as raw materials. High natural gas prices, for example, can increase oil consumption. Increasing energy costs affect the price of food, fuel and fertiliser. In some industrial applications, copper and aluminium are interchangeable.
Inventories are another factor to consider. While firms may value cost-efficiency in a situation where supply is not constrained, geopolitical events can lead to a shift towards higher inventories.
Iran is a good example. The ability of Tehran to block the Strait of Hormuz, which is a choke point for energy and other goods, has highlighted how vulnerable these products are.
In the future, both governments and businesses will likely place a higher priority on the security of supply for many goods. This will lead to a greater stock of strategic materials. This could lead to a structural premium for the entire complex.
STOCKS OR BARRELS?
Next, you will need to decide whether or not you want to own the commodities themselves or related equities.
Commodity-related stocks are affected by many factors. These include the hedging policies of each company, their capital allocation decisions and pipelines of projects, as well as their position within the commodity value chain.
Take the energy industry. Consider the energy industry.
Not all producers upstream benefit in the same way, of course.
The U.S. has not suffered any direct damage during the current conflict. Due to their different geological profiles and production techniques, these producers have greater flexibility in adjusting the rate of production.
Many U.S. companies were also well-adapted to the price regime that existed before the Iran war, which was roughly $70 a barrel. This allowed them to generate a healthy cash flow. The windfall at current prices could be significant.
Energy companies, no matter where in the world they are located, also have their own unique?risks relating to management, debt, long-term strategy concerns, and other issues. These issues do not need to be considered when investing directly in commodities.
Positive Convexity
Investors should also not overlook the positive convexity of commodity return profiles. The price upside is usually much greater than the downside.
The physical nature of commodities and their direct link to the productive activities necessary to keep an economy humming are at the root of this.
Investors can short sell or delay the purchase of financial assets when they rise in price.
It is rare that the same logic applies to tangible commodities where it's difficult to delay or reduce consumption quickly. Prices may increase and eventually cause demand destruction, but not quickly enough to avoid a sudden squeeze.
This asymmetry can be one of the reasons commodity cycles can become more powerful than investors expected once they have taken hold. Understanding this can make the difference between being in a good position for a commodity cycle or being run over by one.
The views expressed are the author's. Taosha is the portfolio manager at Fidelity and creator of "Thematically thinking" newsletter. This column is a favorite of yours? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn 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 seven days a weeks.
(source: Reuters)