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Malaysian tycoon Syed Mokhtar is urged to revoke the appointment of a port chairman who has been linked to Epstein
Civil society groups are calling on Malaysian billionaire Syed Mokhtar Al-Bukhary, to revoke Sultan 'Ahmed Bin Sulayem's appointment as executive chairman of logistics company MMC Port Holdings because of his alleged ties with the late?Jeffrey Epstein. Exclusively last week, it was reported that Emirati bin Sulayem would take over Malaysia's biggest port operator. This comes five months after he resigned from Dubai's DP World, amid scrutiny of his emails with financier Epstein. Epstein died in 2019 and had been convicted as a sex-offender. MMC Port operates seven ports on the Malacca Strait, one of the busiest shipping routes in the world. It is part of MMC Corporation. Syed Mohktar owns a controlling interest. Syed Mokhtar, the company and its shareholders have not commented publicly on the report. A joint statement from 31 organizations dated July 20, called for Syed Mokhtar to revoke Bin Sulayem’s appointment. The report cited financial and geopolitical risks. It noted that large financial institutions such as the UK Development Finance Agency and Canada's second largest pension fund had stopped new investments in DP World due to Bin Sulayem’s alleged connections with Epstein. It is fair to say Mr bin Sulayem's?notoriety has been boosted by the Epstein documents. "If he wasn't deemed indispensable by DP World, then there's hardly a reason?why he would be indispensable to MMC Ports," the report said. MMC 'Corp did not respond to requests for comments. Bin Sulayem, who hasn't publicly commented on Epstein's email exchanges, couldn't be reached for comment. Many users questioned his suitability after his appointment as MMC 'Port. Malaysia's Transport Minister said last week in response that the government could not?interfere with the management of private firms. It stated that it could only regulate the ownership structures of companies that operate concessions and national strategic assets. Reporting by Rozanna latiff in Kuala Lumpur, and Yantoultra ngui in Singapore. Editing by David Stanway.
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Bousso: The electrification of Europe's ROI will be a decade-long struggle.
Europe is facing a "death Valley" of high energy prices over the next decade, which threatens to erode their industrial base even if they achieve their ambitious plan to double electricity by 2040. The European Commission announced on Friday an Electrification Action Plan aimed to increase electricity's share of final energy consumption, from 23% to 46% in 2040. An interim reference target is 32% by 2030. The strategy aims to accelerate electrification in transport, buildings and industry while also tackling Europe's largest energy paradox -- "electricity can be more expensive than fossil fuels that policymakers would like consumers and businesses abandon." The?Commission?argues turning Europe into the first "electrocontinent" of the world would drastically reduce fossil fuel consumption, and the bloc's annual energy import bill could be reduced by up to EUR260 billion ($297billion) by 2040. The appeal is clear at a time when the security of energy has become a priority in geopolitics. The challenge is also clear. Europe is still largely fueled by fossil fuels. Oil, coal and gas account for over 60% of EU's total energy mix. Renewables only make up about one fifth. Despite the rapid expansion of renewable energy generation on the continent at a cost that is enormous, the continent has made much less progress in electrifying sectors such as transport, industry, and heating. Even though Europe has been steadily decarbonising its electricity production, electricity remains a small part of total energy consumption. Since over a decade, the share of electricity consumption in total energy has been stable at 23%. The disconnect highlights the magnitude of the task that lies ahead. It could determine the viability and future of European industry for the next decade. MASSIVE VULNERABILITY The energy crisis that followed Russia’s invasion of Ukraine on a large scale in February 2022 underscored the urgency to accelerate this shift. Loss of Russian pipeline gas forced Europe to make a costly and painful energy realignment. It had to replace the cheap imports from east with more expensive liquefied gas imported from global markets. The effects on industry were profound. Energy prices surged, causing a contraction of industrial activity. Manufacturers from metals to glass to chemicals to fertilisers struggled to compete against rivals from regions that benefitted from cheaper energy. Europe is still highly exposed to fluctuations in the fossil-fuel market. According to the European Commission's estimates, since the beginning of the Iran War in late February, oil and gas imports have risen in the region by about EUR50 billion. This has added fresh inflationary pressure. The Commission has proposed "a wide package of measures" to reduce energy costs. These include measures that aim to narrow the price difference between electricity and natural gas. These include lowering network charges, introducing smart meters, increasing the affordability of electric vehicles, expanding charging infrastructure and replacing gas boilers with heat pump systems. The EU's Emissions Trading System is the flagship policy of the EU on climate change. The reforms proposed would give industries a longer time frame to reduce emissions, while also providing more financial support for investments in clean technologies and domestic manufacture. HUGE PRICE TAG The scale of the investment required is staggering. According to a recent estimate by the Commission, upgrading and expanding Europe’s aged transmission and distribution network will require approximately EUR1.2 trillion in investment between 2040 and 2050. Tens of millions more will be needed to fund programmes designed to promote electrification within the transport sector, in industry and in buildings. There are reasons to be optimistic, though. According to the International Energy Agency (IEA), Europe spends about EUR60-EUR70 billion per year on power grids. This means that reaching the Commission’s investment target does not require a wholesale change in existing investment trends. The proposed relaxation of ETS requirements could also unlock additional funding, allowing companies to redirect their capital towards modernising production and infrastructure. The Commission wants the member states to also dedicate half of ETS revenue to decarbonising their domestic industry. Since 2013, the carbon market has generated approximately EUR260 billion of revenues. Even after all of this, however, the increase in investment still remains daunting. This is especially true as European governments are under pressure from Washington to increase NATO member contributions and to increase their?defence expenditure in response to the growing security threats? from Russia. Existential Risk Timing is the biggest issue. The benefits of the plan will only be realized gradually, even if it survives the political fights that lie ahead. This is unlikely given the divergent interests among the 27 members states. It takes years to build grids, charging systems, heat pumps, batteries, and industrial infrastructure. The challenge to Europe's competitiveness in the industrial sector, on the other hand, is urgent. European electricity prices are still more than double those in the U.S., and about 50% higher than China. This leaves energy-intensive industries at a structural disadvantage despite the decline from the extremes of the energy crisis in 2022. Europe's energy-intensive industries will need to be competitive with their rivals from Asia and North America for most of the decade. They must also expand electricity-hungry areas such as artificial intelligence and data centres. This is the unsettling reality that lies at the core of Europe's electrification policy. Electrifying Africa is not just a climate goal. It has become a necessity for a region that is limited in fossil fuel resources, exposed to geopolitical shocks and faces increasing costs of fuel imports. It is a question of whether Europe's industry can survive for long enough to reap its benefits. You like this column? 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. ($1 = 0.8753 euro) (Ron Bousso, Editing by Jan Harvey).
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Cathay Pacific reports stronger first-half profits on travel and cargo demand
Cathay Pacific Airways, based in Hong Kong, said 'on Wednesday that it expects a higher first-half-profit for 2026. This is due to a?stronger passenger and cargo demand?, an improved performance by low-cost carrier HK Express, and higher contributions from associates. The airline group 'forecast' a profit between HK$6 billion?and HK$6.5?billion ($765.39 mln to $829.12 mln) for the half-year ended June 30. This is up from HK$3.7 bln in the same time period a previous year. The results include a gain of HK$1.4bn from the partial dilution in Air China. The airline stated that, after removing the one-off item from the performance, it was driven by a solid demand for both its passenger and cargo operations. The results are coming as the aviation industry is grappling with a severe fuel cost shock. In June, the International Air Transport Association predicted that fuel costs for airlines would rise to $350 billion by 2025 from $252 billion. Jet fuel prices were estimated at $152 per barrel - almost 70% higher than 2025. Cathay admitted this headwind even though it reported stronger earnings. Cathay Cargo transported 9% more cargo than a year ago, and the total tonnage for the first half of the year was also up by 9%. Lavinia Lau, Chief Customer and Commercial officer at Cathay Expert and Cathay Pharma, said that semiconductors and pharmaceutical shipments were key growth drivers. Strong cargo flows into Southeast Asia from mainland China, along with resilient shipments to Hong Kong and mainland China, also contributed. Lau stated that the group will monitor the impact of new customs tariffs on low-value imported goods into Europe on the e-commerce?flows. Cathay Pacific grew 12% in passenger numbers from June 2012 to June 2013, while seat kilometers increased 6%. Passenger numbers increased by 17% in the first half of this year. The load factors remained stable despite the fact that June is traditionally a slower month. This was due to the rerouted traffic via Hong Kong in the Middle East conflict, and the Dragon Boat Festival holiday. The demand for premium cabins remained strong, driven by corporate travel and?premium holiday travel. Lau stated that the outlook for summer remains positive, especially across our long haul network. Budget airline HK Express had a'softer spot', with a 4% drop in passengers after the carrier lowered capacity to offset rising fuel costs. Lau reported that bookings for July were ahead of the previous year. The full results of the group are expected to be released in August. (1 Hong Kong dollar = 7.8391 dollars) (reporting and editing by Julie Zhu, Rajasik Mukherjee, and Christian Schmollinger).
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Canada cancels joint celebration of bridge with US, citing Trump's trade threats
The United States and Canada have canceled their planned joint celebration. The opening of the 'Gordie Howe International bridge between Windsor, Ontario and Detroit has been cancelled due to a 'trade threat from President Donald Trump. In an emailed message, Jenna Ghassabeh said that it would not be appropriate to hold a celebration between the two nations in light of the trade action that the United States threatened earlier this week. The bridge will open to traffic on July 27. Windsor Mayor Drew Dilkens told local media that a ribbon-cutting event was scheduled for July 24, with U.S. and Canadian officials attending. Canada is still "committed to" opening the bridge by July 27 but will celebrate the milestone "among Canadians", Ghassabeh stated. Trump announced 50% tariffs for a range of Canadian imports in response to the U.S. Administration's treatment of American cars, alcohol, and dairy products. The $4.7 billion?bridge named after the legendary Detroit Red Wings player was originally scheduled to open in June. Trump had threatened to halt the project in February, citing "Canada's refusal" to stock some U.S. alcohol beverages, as well as its tariffs on milk products and trade negotiations with?"China. After the U.S. & Canada reached a toll agreement this month, the bridge was opened. The new bridge will help to ease truck traffic on the Ambassador Bridge, into Detroit, the U.S. Canada border's biggest freight port. Commercial trucks carried $126 billion worth of trade in 2023. (Reporting and editing by David Gregorio in Toronto, with Ryan Patrick Jones reporting from Toronto)
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Airbus launches buyback program to target near-doubling of earnings in 2029
Airbus announced its medium-term goals on Tuesday. These included a near-doubling of profits, and stronger shareholder returns. This showed confidence in the company's ability to ramp up production at a time when a battered aerospace industry is turning the corner with regard to supply disruption. The largest civil aircraft manufacturer in the world said that it aimed to achieve a core profit between EUR12 billion and EUR13 billion ($13.69 to $14.83billion) by 2029. It also announced a EUR5billion share buyback program. This goal is a significant increase from the EUR7.13 billion in adjusted earnings before taxes and interest that Airbus generated during last year. It also exceeds a target of EUR7.5billion for 2026. Airbus wants to increase profits by increasing deliveries of aircraft to meet strong airline demand, while slowly overcoming disruptions in the supply chain and engine shortages which have constrained production across the aerospace sector. The company expects its commercial aircraft business to generate an operating profit of around EUR10 billion by 2029. J.P. Morgan analysts stated earlier this month that Airbus is likely to achieve this level of profit within its commercial aircraft business in three years. We have never seen such a high level of visibility before. Guillaume Faury, CEO of the company, told investors in London that we have put behind us many challenges and cleared the skies for moving forward. Airbus began the year slowly due to supply-chain and engines bottlenecks, but has since increased deliveries by increasing first-half handed over by 15% on an annual basis. Airbus has not changed its 2026 forecast, which includes an increase of 10% in commercial jet deliveries to 870. "We are in a better position with the supply chain." "We're still experiencing issues here and there, which will likely continue as we go higher. But it's in much better shape in the years coming out of COVID," Faury said to reporters late Tuesday. AIRBUS IS EXAMINING A350 PRODUCTION INCREASES Airbus has said that it is seeing a demand for wide body jets, and will be increasing production of the A350 in coming years. Airbus Commercial CEO Lars Wagner said that he expects protracted engine supply problems for smaller A320neo aircraft to be resolved by the year 2028. Airbus, however, said that it would 'push for more engines to be produced by RTX unit Pratt & Whitney in 2027 after a tug-of-war between new assembly plants and maintenance facilities for scarce supplies. Airbus also wanted to get more from CFM, a supplier that was already delivering the agreed-upon quantities. Pratt and Whitney said earlier on Tuesday the maintenance disruption which?has caused hundreds of aircraft to be grounded is easing. The?numbers of aircraft that have been grounded due to engine-related issues has decreased by 40% since the peak. Airbus confirmed that it is considering launching longer versions A220 and A350, but did not give a timeline for its decision.
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Trump announces that US airlines will be able to fly to Lebanon again for the first time since 1985
After meeting with Lebanon’s President Joseph Aoun on 'Tuesday', Donald Trump announced that the U.S. government would allow all domestic airlines to fly direct to Lebanon. In 1985, all U.S. flight were suspended after the hijacking TWA Flight 847, which was flying from Athens to Rome. The plane was forced to land in Beirut. A U.S. Navy Diver?died during the 17-day ordeal. U.S. officials must conduct an extensive security review at the Beirut Airport and certify it's safety before flights to Lebanon can resume. The U.S. airlines' willingness to resume flights was not clear. U.S. major airlines American Airlines, United Airlines, and Delta Air Lines have all halted their flights to Tel Aviv citing security reasons. The FAA stated that it was "looking forward to working with airline partners and our interagency partner to implement President's Directive and support the safe return of flights to Lebanon." U.S. State Department has issued a "Do Not Travel to Lebanon" advisory, citing the high tensions in Middle East. The?government in February ordered non-emergency U.S. employees and their families to leave Lebanon due to safety concerns. Trump ordered that the U.S. Transportation Department lifted a ban on passenger air service to Venezuela in January after the U.S. After the U.S. captured Venezuela's President,?Nicolas Maduro in a military action that month, passenger air service was resumed to Venezuela in early January. After seven years of service, American Airlines resumed its flight from Miami to Caracas in late April. (Reporting and editing by David Shepardson, Christian Martinez and Mark Porter.
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Boeing wants the US to intervene in record EU loan to Airbus
Boeing asked the U.S. Government to pressure the European Union on transparency regarding a EUR3 Billion ($3.43 Billion) loan package?to Airbus. This resurfaced trade tensions following the two sides?extending a tariff truce?over jet subsidy. Airbus is reportedly planning to develop a new aircraft as early as 2030. This could spark a new wave of competition on the global jet market. After a 17-year fight at the World Trade Organization, both sides achieved partial victories over their mutual claims about aircraft subsidies. This led to a transatlantic wave of tariffs that hit other industries. The ceasefire, which was due to end on July 6, is now indefinitely extended as both sides retreat from a new trade war in the aerospace industry. Boeing, in a letter sent to U.S. Trade Representative Jamieson Greer and seen by, said that it was surprised to learn of the European Investment Bank's announcement on June 29, announcing its largest corporate loan ever for Airbus. It asked the USTR for a "full account of the terms of the loan" and why it was in line with the 2021 truce accord, which required an "open and transparency process." Greer said to?CNBC that the USTR was looking at the loan with "great care" and he raised the issue with his EU counterpart. Greer stated that "we cannot accept a scenario where Boeing is forced to compete with an Airbus which receives unfair loans, and where Boeing must operate in a market-based system." These comments echoed the 17-year WTO dispute, in which Airbus claimed victory over Boeing and both accused each other that they were benefited by?unfair assistance. The WTO referred to earlier EIB loan as 'Airbus subsidies' but rejected U.S. allegations about their role. Boeing, however, noted that the announcement of the initial tranche of EUR1billion came only four days after the EU had adopted the decision to prolong the standstill agreement. Boeing stated in its letter that "at a minimum, this loan's timing is surprising." The EIB denied that it offered Airbus any unusual assistance. A spokesperson explained that this is a regular loan with interest as part of EIB’s overall financing activities. Thomas Toepfer, Airbus' Chief Financial Officer, told London reporters that the loans were taken "completely on market level". Boeing declined to comment. The USTR, European Commission and other agencies did not respond immediately to requests for comments. AEROPLANE DEVELOPMENTS The EIB announced that the loan package would support Airbus long-term investment through 2030. Boeing pointed out that Airbus CEO Guillaume Faury said Airbus planned to start the development of an A320neo replacement in the same year. Faury revealed the code word "eAction" for the project in an interview with Aviation Week, ahead of the Farnborough Airshow. Boeing's letter sent to the USTR stated that "the timing of this significant loan coincides with Airbus leadership publicly committing to launch date for a new aircraft, which further raises doubts about the size and intent of this historic package of economic assistance." Boeing said that the market conditions were not right yet for a new plane generation, but analysts expect both companies to "start the next development by the mid-2030s." Boeing's letter reveals a wariness about competitor funding, on both sides of this duopoly in the jet market. However, tensions have decreased since the WTO subvention battle. After briefly imposing tariffs, the Trump administration agreed last year to exempt aerospace from tariffs. Washington hasn't officially announced that it will extend the separate truce over tariffs related to the Airbus and Boeing dispute. But four people who are familiar with the issue said that both sides have effectively put the marathon WTO dispute behind them for now. The Trump administration is seen to be reluctant to use WTO tools, which would implicitly acknowledge multilateral rules that the president opposes. Trump has called for a meeting with his trading partners this month to discuss the impact of foreign jet imports.
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Alaska Air forecasts quarterly profit below estimates as jet fuel prices stay high
Alaska Air forecast third-quarter profits below Wall Street expectations on Tuesday as fuel prices rose due to renewed U.S. - Iran?fighting. Seattle-based airline Alaska Airlines expects its third-quarter adjusted profits to be between $0 and $1 per share. According to data compiled and analyzed by LSEG, analysts had on average estimated a profit per share of $1.38. In extended trading, shares of the airline fell 3%. U.S. airlines will face additional fuel costs of billions of dollars this year due to the increased oil and jet-fuel price caused by the war in Iran, and the prolonged disruption of shipping through the Strait of Hormuz. United Airlines alone anticipates an additional $6 billion in fuel expenses for '2026 compared to its original plan. After a fragile ceasefire between Washington and Tehran, prices of jet fuel fell sharply from their spring highs. However, after the hostilities resumed in July, the prices rose again. Alaska's economic fuel costs are expected to average $3.75 a gallon during the?July-to-September period. This is lower than the $4.43 it paid per gallon in the previous quarter. About a quarter or so of airline operating costs are fuel-related. This volatility has led carriers to increase fares, reduce flying and seek additional cost savings. Alaska is especially exposed to West?Coast markets where limited refining capacity and pipeline capacities can cause prices to be more volatile and expensive. It is trying to diversify by importing more fuels from Singapore. However, Singapore's refining margins have also risen earlier this year. Alaska currently sources about a fifth (or a little more) of its fuel from the United States and says it will eventually increase that percentage to 30-40%. Delta ?Air Lines earlier this month gave a stronger-than-expected third-quarter outlook, ?while United Airlines' forecast fell short of Wall Street estimates. Both carriers claimed that higher fares and strong demand helped offset the 'increased fuel prices, with premium travel remaining especially robust. Alaska's adjusted loss?of 92c per share was narrower than the analysts' average estimate, which was 99c per share. Data compiled by LSEG. (Reporting by Nandan Mandayam in Bengaluru; Editing by Pooja Desai)
Russian fuel shortages boost EV charging use, Rosatom says
Alexei Likhachev, the CEO of Rosatom, said that fuel shortages had prompted a rise in demand for electric vehicles. He predicted that this would lead more drivers to choose battery-powered cars. Fuel restrictions have been imposed across the country due to intensifying Ukrainian strikes against Russian energy infrastructure.
Likhachev, a reporter, said: "We have already seen a significant rise in the use of our electric charging stations."
He said that between June 21 and 28 the demand for Rosatom's?over 290 stations of charging rose by 40%.
Likhachev said that although the current situation is unlikely to lead to an immediate switch from internal combustion engines to electric, it may prompt car owners to consider the options in the future.
The development of the EV sector in Russia is still at an early stage due to severe weather conditions, long distances, and limited charging infrastructure. According to Autostat, the number of plug-in hybrids and electric vehicles in Russia was 208,000 at the beginning of April. It said that from January to May, 24600 plug-in hybrids were sold in Russia. This is 125% more than the same period in last year. (Reporting Anastasia Lyrchikova; additional reporting by Gleb Stolyarov; writing by Alessandra Prrentice, editing by Mark Trevelyan).
(source: Reuters)