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Turkish Minister: NATO Article 5 is the same as NATO Article 4 in Turkey, Pakistan and Saudi Arabia defense pact
Hakan Fidan, Turkish Foreign Ministry, said that the Article 5 Mutual Defence Agreement of NATO is the same as a defence pact between Turkey, Pakistan and Saudi Arabia. The accord does not target Iran, he added. Fidan said that Turkish President Tayyip Erdoan wanted the alliance to expand and that Egypt, among other countries, was a possible candidate for membership. The regional powers have signed the "Mecca Joint Defence Agreement", bringing together Sunni Muslim U.S. Allies who are alarmed by a regional conflagration which has seen Iranian missiles fire on Gulf oil exporters. In a statement released jointly, the parties said that the agreement was intended to increase 'collective deterrence' against any acts of aggression. It also stipulates that any armed attack on any of the three countries would be considered an attack on them all. Fidan told the Anadolu News Agency that the new alliance wasn't aimed at Iran or other countries, but was rather "a general pledge" to support the security of the three allies. Fidan said that in consultations, the allies will decide what level, format, and form of support they want to receive in the event that an attack occurs. However, he added that no country is considered a threat if a member state has not been attacked. The Turkish army is the second largest in NATO. It has stated that it was open to expanding to other countries of the region and not to replace existing alliances. "NATO is an alliance of 32 nations. "We have?started as three countries, and we must take very modest but concrete steps," said he. He added that efforts to finalise this pact have been underway for the past two years and eight months. He said that an alliance would include a similar committee of ministers to NATO, as well as a Saudi Arabia-based general secretariat. However, operational details will be decided at the first meeting of the committee. "Our President's Vision is that we do not remain limited to just three countries. We grow and bring all (regional countries)?under one roof," he added, adding Egypt may join the pact after certain technical issues are resolved. Turkey, Saudi Arabia and Pakistan, as well as?Egypt, have formed a group in recent months to discuss regional issues, including the war against Iran. Turkey said that the group, dubbed R4, aims to strengthen its partnership by using concrete mechanisms. Fidan said that Turkey should also be part of an international coalition in order to protect Red Sea shipping from Houthi attacks, because Ankara's interest is shipping safety. Tuvan Gumrukcu, Susan Fenton, and Topra Chopra edited the article.
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Berkshire reduces cash stake, as buybacks increase and reports higher profit
Berkshire Hathaway started reducing its huge?stockpile in the second quarter. It invested billions of dollars in stocks, including 'Alphabet, and purchased billions more of its own. Conglomerate announced on Saturday that it repurchased $4.5 Billion of its own shares in the second quarter, and another $3.3 Billion in July. This is an acceleration of repurchases begun in March after a two-year break. Between?April to June, it bought more than $20 billion in stocks. This marked the end of 14 consecutive quarters where stocks were sold at a loss. Berkshire added $10 billion to its already large investment in Alphabet, the parent company of Google and YouTube. Berkshire finished June with $364.7 Billion in?cash. This is down from $380.2 Billion a month earlier. The second-quarter operating profits rose by 16%, to $12.98 Billion, or $9.068 per class A share. This compares with $11.16 Billion a year ago. The results were boosted by higher earnings from the BNSF Railroad, manufacturing, retail and service operations and foreign currency fluctuations. From $12.37 billion, net income has more than doubled to $25.67 billion or $17.928 per class A share. The year-ago results included a writedown of $3.76 billion for Berkshire’s stake in Kraft Heinz,?a packaged food company. This was the second quarter since Greg Abel, Berkshire's new chief executive, succeeded Warren Buffett as chairman. Investors and analysts are eager to learn how Buffett's management of Berkshire Capital differs from Abel's. Buffett had trouble deploying cash towards the end of his 60-year tenure at the head of the Omaha, Nebraska based conglomerate. The pace of stock repurchases has a similar pace to Buffett's peak pace in the early part of this decade. Berkshire’s largest year for stock buybacks occurred in 2021 when it purchased $27 billion worth of stock.
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Radev, Radev: Bulgarian airspace was affected by a drone explosion
In a statement released by the Bulgarian Prime Minister, Rumen Radev, he said that a drone had entered Bulgarian airspace via Romanian airspace and exploded near the village of Kardam. He said that the drone had entered Bulgarian airspace around 0810 local time (0500 GMT). It then landed in a field of sunflowers near the border to Romania. The explosion'site' is located 1,000 metres (3,281 ft.) away from Bulgaria's compression station on the 'Trans-Balkan Gas Pipeline', which stretches between Turkey and Ukraine. It's also 200 meters from Romania's 'compressor'station. Western governments are increasingly linking drone incursions to the Russia-Ukraine conflict. This has increased the frequency of these attacks and prompted NATO members to beef up their security measures. Radev stated that the surveillance and security along the Bulgaria-Romania border will be enhanced. He said that the site of the explosion was cordoned off, and that the exact type of drone would be determined after the remains of the drone and the site are examined. Radev said that it was confirmed by the fact that drones are still difficult to detect and identify. Radev also noted that the delivery of high-precision Radars to the Bulgarian Army had been delayed and vowed to take action. Reporting by Renee Maltezou, Stoyan Nennov and Philippa Fletcher; editing by Barbara Lewis and Philippa Lewis
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China closes its ports before Typhoon Dolphin reaches Japan's Okinawa
Typhoon Dolphin hit Japan's southern Okinawa Prefecture Saturday, injuring six people and cutting power to over 50,000 buildings. China closed ports and stopped ferries as it prepared for the storm's arrival on its eastern coast. Authorities reported that five elderly people in Okinawa, including three who fell because of strong winds, sustained non-life-threatening wounds. Another person was injured by strong winds in Kagoshima Prefecture. Kagoshima was affected by nearly 39,000 buildings without power, while Okinawa was only impacted by just over 12,000. Domestic airlines ANA and Japan Airlines cancelled flights from and to Okinawa. The maximum sustained wind speed was 162 kph (89.9 mph), with gusts up to 216 kph. In Japan, the two main areas that are expected to be affected by the earthquake and tsunami are Okinawa island and Amami Island in Kagoshima Prefecture. Dolphin is a typhoon of orange category, the second highest level, in China. Concerned about the 'risk of flooding and land slides,' authorities raised the level of emergency response for Dolphin to a level?III. This is the second lowest level. According to China's National Meteorological Center, the typhoon will most likely make landfall between Zhoushan City in Zhejiang Province and Fuding City in Fujian Province and is expected bring winds of up to 85 mph (38-45 m/s) near its center. Ports and airports are unable to operate. Through August 12, eastern China, including Shanghai and neighboring provinces, is expected to experience rain and strong winds. Forecasters predict that some areas in eastern Zhejiang may receive up to 600 mm (23.6 inches) of rain. Zhejiang has raised its coastal typhoon warning to the highest level. It has also halted all port operations, and suspended 162 passenger routes. Fujian has also suspended ferry routes. Ningbo Lishe International Airport in Zhejiang announced that it would cease operations at 11:30 pm (1530 GMT) Saturday, and will suspend all flights on Sunday. Shanghai's Yangshan port was cleared of ships by Friday evening, and some rail services will be suspended in the Yangtze River Delta from Sunday. The government reported that 78 international flights in Taiwan were cancelled due to the typhoon. The weekend was set to bring heavy rains in the northern part of the island, but authorities hadn't ordered any evacuations. China ordered ships passing through the Taiwan Strait to obey its traffic control instructions due to the typhoon. Taipei called the measures "ridiculous" and said that Beijing had no right to restrict the access to international waters. China claims Taiwan, a democratically-governed island. Both Taipei, and Washington, reject this claim.
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China closes its ports before Typhoon Dolphin reaches Japan's Okinawa
Typhoon Dolphin slammed Japan's southern prefecture of 'Okinawa' on Saturday. It injured 'five people' and cut power to '14,000 buildings'. Meanwhile, China closed its ports and ferry routes in preparation for the storm's arrival on their east coast. As of 0300 GMT the storm was located about 160 km (99 mi) northwest of Kume Island, Okinawa. It was moving north at a speed of 15 kph (9mph), according to the Japan Meteorological Agency. Okinawan government officials reported that five elderly people sustained non-life-threatening wounds, three of which were caused by the wind. ANA and Japan Airlines cancelled flights into the region. The sustained maximum wind speed of the typhoon was 162 kph (89.9 mph), with gusts up to 216 kph. Okinawa, and Amami Island in Kagoshima Prefecture will be the most affected areas in Japan. China National Meteorological Centre says Typhoon Dolphin is expected to land along China's east and south coast between late Sunday and Monday. It will most likely be between Zhoushan in Zhejiang Province and Fuding in Fujian province. Near its center, it is expected to bring winds between 85-101 mph (38-45 m/s). Through August 12, eastern China, including parts of Shanghai, and the neighbouring provinces will be affected by rain and strong winds. Forecasters predict that some areas in eastern Zhejiang may receive over 600 mm of rain. Zhejiang has raised its coastal typhoon warning to the highest level and suspended 162 passenger ferry services. Ningbo Lishe International Airport, Zhejiang, has announced that it will cease operations at 11:30 pm (1530 GMT) Saturday and all flights will be suspended on Sunday. Yangshan Port in Shanghai was cleared of all vessels by Friday evening, and some rail services?in the Yangtze River Delta will be suspended on Sunday. The government announced that 63 international flights in Taiwan were cancelled due to the typhoon. The weekend was set to bring heavy rains in the northern part of the island, but authorities hadn't ordered evacuations as of Saturday. China ordered ships to obey its traffic control instructions due to a typhoon in the Taiwan Strait. Taipei called the measures "ridiculous" and said that Beijing had no right to limit access to international waters. China, who claims strategic strait, too, as it views Taiwan, a democratically-governed territory, as its own. Both Taipei as well as Washington deny this claim.
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Taiwan says China's order to control traffic in the Taiwan Strait when a typhoon hits is 'ridiculous.'
Taipei has called China's attempts to implement traffic controls on ships heading into the Taiwan Strait when Typhoon Dolphin hits "ridiculous". Beijing does not have any right to restrict access to international waters. China, which claims democratically governed Taiwan as its territory, also claims a strategic strait that is used by billions of dollars in trade every year. Both Taipei, and Washington, reject this claim. Chinese state media announced on Wednesday that, due to the approaching typhoon and starting Thursday night, all ships entering the Taiwan Strait from the south must adhere to traffic control measures. It said that all vessels must adhere to the requirements, select'safe waters to shelter against the storm and follow the instructions given by the maritime management authorities on site to ensure safety at sea. The statement made by the relevant Chinese Communist department reflects ignorance, disregard and a violation of international norms and order. It's utterly absurd!" In a late-Friday statement, the Taiwan Mainland Affairs Council stated that it was utterly ridiculous! The Chinese Communists should not interfere in Taiwan's internal affairs, it said. Taiwan's Coast Guard released a statement at the same time stating that it had not detected "abnormal movement" by Chinese vessels nor had any shipping company reported "broadcast interference". The Coast Guard said that merchant and cargo ships passing through the area should ignore any Chinese broadcasts and report incidents immediately. The typhoon will make landfall on China's east side late Saturday or early Sunday. China's military?operates almost every day in the Strait. Taiwan's government rejects Beijing’s claims of sovereignty, saying that only the island's citizens can decide its future. (Reporting and editing by Edwina G. Gibbs; Ben Blanchard)
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US Postal Service reports $2.5 billion quarterly loss
U.S.?Postal Service announced a $2.5 billion loss for?the third fiscal quarter. This is nearly $600 millions less than the same quarter last. They also urged Congress to take a number of?actions?to address their mounting financial crisis. U.S. postmaster general David Steiner has said that legislation passed by the Senate to add dozens new ZIP codes will cost the cash-strapped USPS $800 million. He also said the agency wants approval for a new stamp price increase in January, rather than wait until July 2027. Steiner stated that without the action of?Congress in this year's budget, "our plans will certainly include changes to service, such as taking a look at service levels, closing thousands unprofitable postal offices and raising prices." He warned in June: "We are running out of money." Steiner stated that we are borrowing money from the?retirement fund of our employees to continue operating. He urged Congress to compensate for its losses and implement other reforms. USPS hired restructuring advisors in March to address its financial problems. Steiner stated that the key question was whether USPS should deliver to 170 millions addresses six days per week. This costs $3.4 billion annually and 70% of these routes are losing money. Around 58% of the 18,000 Post Offices in the USPS also lose money. The Postal Service has suffered net losses in excess of $120 billion over the past decade. This is because the most profitable product - first class mail - has declined sharply due to the move towards digital communication, while the agency still has to maintain expensive nationwide delivery operations. USPS announced in May that it would suspend non-essential spending on travel, office products and consultants. Postal Service announced in May that it would suspend payments to employers for a federal pension plan and raise the price of stamps for first-class mail from 78 cents to 82, starting July 12. By suspending employer pension contributions, you can save up to $15 billion by 2030. (Reporting and editing by Chris Reese, Aurora Ellis and David Shepardson)
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Russia dismisses German drone incident as 'fabricated provocation'
The Russian Embassy in Berlin on Friday dismissed a suspected 'drone attack' at a major German?air?freight hub as a "fabricated provocation", saying that it was yet another example of accusations made against Russia without any evidence. The?embassy expressed its concern over a new wave in anti-Russian hysteria that has swept Germany, according to a statement posted on the website of its German and Russian versions. The German Federal Prosecutors launched an investigation this week on what they described as a serious incident that could have affected foreign and domestic security. The drone was discovered late Tuesday night at the Leipzig/Halle Airport, an important civilian freight and NATO logistic hub in eastern Germany. It is also home to several giant An-124 aircraft operated by Ukraine’s Antonov Airlines. According to prosecutors, the?drone had?explosives as well as a detonator. A cargo plane, which was performing a go-around because of a runway closure at the airport, collided with what prosecutors believe to be another drone. The jet operated by logistics company DHL?suffered minor damage and was ultimately diverted to Hanover, in northern Germany. German officials and government members have not publicly blamed foreign countries for the incident. However, some legislators have pointed the finger towards Russia, who launched a full scale invasion of Ukraine in 2022. The?Russian Embassy said that it was "clear" that the hastily-fabricated provocation served only the interests of Kyiv, and the militarist side of the European political classes. In the past, German officials have often blamed Moscow on what they called hybrid attacks -- incidents of aggression which do not amount to war. Reporting by Thomas Seythal, Editing by Alistair Bell
Data centers aren't a real problem for US power. Douglas J. Arent: Outdated policy is.
The data centers are blamed for the rising cost of electricity in America. The real problem is not that AI and consumers are increasing energy consumption. The real issue is structural and began before the recent infrastructure boom.
The average residential electricity rates increased by 6% in the past year, which is more than double the inflation rate. About one-third of American homes now spend over 5% of their earnings on electricity.
Investor-owned utilities will file the most rate increase requests in 2025. This is their highest level since mid-1980s. There is clearly a problem.
The data centers that are driving the AI race and other industries moving towards electrification can be credited with these increases.
Electricity bills for residents in some states, such as Nebraska, New Mexico, and North Dakota have decreased.
According to two studies conducted by the Columbia University Center on Global Energy Policy, power costs are rising faster than inflation in the Mid-Atlantic region, California, the Northeast, and the Southeast, areas where data centers have been less prevalent.
Why does demand growth lower bills in some areas and raise them in others?
Two words: poor incentives.
BUILT TO SPLEND
Since the 1950s, American utilities have been rewarded for building new infrastructure and not for managing their existing assets. According to Federal Energy Regulatory Commission 'filings,' utilities receive reliable returns on their capital investments, typically between 9% and 10%. Upgrade an existing line or deploy software in place of new infrastructure instead? Answer is not so clear. Customers are liable for the cost of large capital investments, as the incentive is built in. In the past decade, this dynamic has been less viable due to the soaring inflation in the energy sector. Inflation, tight supply chains, and increased tariffs are driving up the cost of transformers that transfer electricity between circuits. The price of wire and cable has risen by 152%. These costs could be reflected in?customer's bills for many decades.
Climate change is another issue. Some utility bills in Florida now include "storm cost recovery surcharges". California bills have increased in the last five year to reduce wildfires. These increases are not an anomaly. These are ongoing, compounding costs that the ratepayers have to absorb.
This?backdrop' was the backdrop against which the data center boom occurred. It did not create a power affordability problem, but it exposed and accelerated an existing one.
Not Keeping Pace
This does not mean that data centers are benign.
Data center power demands will range from 5 megawatts to 200 MW by 2024. This is equivalent to about 200,000 homes. Massive new data campuses, with power demands of 1,000 to 5, 000 MW, have been proposed and are currently under construction. Data centers are expected to use 5% to 15 % of the total U.S. electricty by 2030. This has caused concern across the nation.
Grid upgrades are not free.
In areas where the grid is overloaded, new large loads can increase local costs. This is especially true if utilities pass these expenses on to consumers.
But the answer is not to limit demand. In fact, a broader view of the evidence suggests different solutions.
New electricity demand can lower prices for all when wind and solar energy is available at low cost and where large users pay their fair shares. This outcome is not guaranteed. The grid's ability to connect with low-cost supplies and fairly allocate upgrade costs will determine the outcome. It could be that data centers are required to pay for transmission upgrades.
Lower Costs, Better Rules
The major problem for U.S. grid operator is that infrastructure required to supply higher volumes of energy has not kept up with demand growth. PJM is the biggest grid operator in America, and it serves 13 Mid-Atlantic states. CGEP's studies reveal that there are real solutions available. Innovative uses of existing technology could increase the capacity of transmission lines already in place. Dynamic line ratings, for instance, use real-time weather information to determine the actual capacity of electricity lines, instead of relying solely on static assumptions which often overestimate what is needed. This approach helped a Pennsylvania?utility reduce congestion on monitored?lines by as much as 65%.
Upgrades to the lines themselves are another option. Replace steel-core wires by lighter, stronger carbon core alternatives to nearly double line capacity within months.
CGEP analysis shows that deploying grid-enhancing technology nationwide could result in savings of $180 billion by 2050.
Data centers can be part of the solution. Pilot projects in Arizona and North Carolina have demonstrated that data centers could be designed so as to not draw power from the grid when there is high demand.
These tools are a temporary solution. But more fundamental reforms are needed.
One possibility is to tie executive compensation for utilities to the efficiency of their systems, and not just on how much they build. Modernizing the permitting, interconnection and other processes that slow down new power plants and transmission systems could be a game changer.
Data centers, and other large, energy-hungry infrastructure, could also shoulder a fair portion of the energy costs?they generate, rather than passing these costs on to residential ratepayers.
States that have seen a decrease in electricity prices despite an increase in demand from data centres are not magic. They managed their supply, infrastructure and cost allocation in a sensible way. When these things are not managed properly, prices rise. These things do not need to.
(source: Reuters)