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Sicily's Cyclone Harry tests Italian insurance requirements
* Insurance coverage for sea storm surges is not mandatory Consumer confidence could be undermined by a case, warns regulator EIOPA data shows that Italy has the largest gap in Europe between insurance coverage and catastrophe risks. By Giselda Vagnoni CATANIA (ITALY), July 23: A cyclone which caused more than EUR1billion ($1.14billion) of damage on Sicily's coastline has exposed Italy's efforts to expand mandatory insurance for natural disasters. Many businesses were not covered for the risks that they faced in January when Cyclone Harry hit from Messina all the way to Syracuse. Some discovered that their policies covered earthquakes, flooding and landslides, but not storm surges or damage caused by cyclones. "If I'm near the sea, I will insure against a?storm surge,?not a river flood," Luca Faro said, the owner of a restaurant located in the small town of San Giovanni Li Cuti. Faro claimed he had suffered damages of about EUR400,000 to his windows, roofs, and refrigeration equipment as well as lost income for two months, yet received only EUR20,000 from the state and nothing from insurance, despite having a mandatory policy. It was introduced in Italy last year that businesses must have insurance on assets like equipment, buildings, and land. Those who do not opt-in could lose access to disaster assistance. Historically, many small and medium-sized businesses, which are the backbones of Italy's economic system, have relied on support from the government after climate-related catastrophes. Unipol estimates earthquakes, flooding and storms will cost the Italian government around EUR7 billion per year. With the?public debt expected to be the highest in the Euro zone, Rome cannot afford to continue to pay for rising costs. Sicily's Business Association called the financial fallout of Cyclone Harry "paradox", which will lead to thousands of companies receiving little or no compensation. "In theory, businesses are insured, but they lack coverage in practice for the damages that have been incurred," said Marco Causarano of Confindustria, the small business lobby in Catania, a city in eastern Sicily. Guenther Thallinger, Allianz's board member, said that mandatory insurance is "very,?rarely, a solution". Instead, the discussion should be focused on risk awareness and adaptation, as well as risk avoidance. Scientists claim that a moist atmosphere and warmer seas linked to climate changes exacerbated the storm by increasing wind speed, rainfall, and coastal flooding. The highest wave ever recorded by the Italian Institute for Environmental Protection and Research, ISPRA, was 16.66 meters (55 feet) on January 20. Catania's normally bustling beachfront is still plagued by damaged roads and shuttered businesses five months after the storm. The aftermath of the cyclone could undermine trust in catastrophe insurance, just as the European Union pushes businesses and insurers to shoulder a larger share of climate-related loss. A report from the Brussels-based think tank Bruegel found that EU weather and climate catastrophes cost EUR822 billion between 1980 and 2024. Of this amount, a quarter occurred in the past four years. The report stated that only around 25% of the disaster losses in Europe were insured. Italy was behind many other European countries. Adolfo Ulso, the Minister of Industry and Commerce, said that Italy had to protect itself from catastrophic events like Cyclone Harry which "hadn't been anticipated previously" at ANIA's annual meeting earlier this month. He did not elaborate. ITALY HAS ONE OF EU'S WIDEST PROTECTION GAPS The EIOPA, the insurance regulator of the European Union, said that Italy had one of the largest gaps in the coverage for natural catastrophes and the risk associated with them. Analysts said that the "protection gaps" will likely widen due to climate change, which is expected to bring stronger storms and more intense heatwaves in the Mediterranean. Unipol reported that of the approximately EUR101 billion cumulative losses in Italy between 2014 and 2025, EUR18,7 billion were covered by insurers, and the remainder by the private sector and public sector. Italy's mandatory insurance against natural disasters (Nat-Caf), is intended to close that gap. ANIA reported that although only 15% of Italy's 4.5 million business were insured by the end of 2025 coverage had doubled within a year. Paolo Angelini is the head of Italy's insurance watchdog IVASS. "Mandatory Insurance... marks a significant achievement?after 30 years' of botched efforts." Angelini stated in June that the standard contract only covers some risks and excludes others. He added that a gap between the risk faced by companies and the insurance they purchase could weaken confidence in the industry, reduce take-up rates and make it harder to pool premiums. Sicily's Business?lobby claims that the problem is exacerbated by insurance policies which impose deductibles up to 15 percent and exclude interruption of business, leaving businesses to bear a portion of the damages as well as lost revenue. If you want to cover your company for adverse weather conditions such as cyclones, storms, storm surges, and strong winds or hail, then you will need a weather-related event policy. This does not include storm surges. "I paid EUR1,500 to the Nat-Caf, but only received the EUR20,000 contribution that the state?gave everyone," said Pinella?Alia, who runs a?Catania beach club, adding that she couldn't find an affordable storm surge policy. Insurance gaps have implications that go beyond disaster recovery. Without reliable coverage, banks could be less willing than ever to lend. Investments may slow down and the pressure on government finances will increase. Insurance companies are likely to increase premiums and reduce exposure in areas of high risk, fueling concerns about the emergence of "insurance deserts", such as those in California and Florida. There had never before been a Cyclone Harry along the east coast of Sicily. Angelini, from IVASS, said that if it happens again within five years, insurance rates will rise.
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EIA data show that the US demand for jet fuel reached a record high last week due to the Soccer World Cup.
Data from the U.S. shows that the demand for jet fuel in the U.S. reached a record last week, as soccer fans descended on New York and New Jersey to watch Spain play Argentina in the World Cup final. Energy Information Administration reported on Wednesday. The data shows that the U.S. jet fuel product supplied, which is the EIA’s way of measuring the demand for fuel based on how much fuel is leaving refineries and primary sources of supply, reached 2.15 million barrels a day in the week ending July 17. EIA data shows that the previous weekly record was 2,11 million barrels per day in December 2017. Giovanni Staunovo, an oil analyst at UBS, said that the World Cup was probably responsible for the increase in jet fuel demand. The first North American World Cup for more than 30 years was attended by record numbers of fans, who overcame early concerns about the impact that FIFA's high ticket prices and visa uncertainties in the U.S. might have on the world's largest sporting event. Analysis showed that more than half of the group stage matches had a capacity crowd, with the rest being only a few hundred people short. On July 19, the final match of the tournament, in which Spain defeated Argentina's defending champions in a dramatic, tense affair, took place in a New Jersey stadium packed with over 80,600 spectators. U.S. Transportation Security Administration reports that more than 2.9 millions passengers have passed through its airport security checkpoints in July. The increase in air travel during World Cup was welcome news for U.S. refining companies, who had been focusing their operations on maximizing jet fuel production over the?recent months as the Iran War?raised concerns about supply?around the globe and drove record demand to U.S. exports of fuel. EIA data shows that U.S. refiners and fuel blenders produced jet fuel at an average of 2.14 million bpd last week and 2.18 millions bpd in the previous week. This was a record for this time period. This year's World Cup, which was played in three countries (U.S.A., Canada, and Mexico), has seen a surge in air travel. In a June report, the International Air Transport Association stated that "fans following their team across venues will create inter-regional and cross-border flights." (Reporting and editing by Shariq Khalifa, Liz Hampton)
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Russia claims it has struck Ukrainian ports
On 'Wednesday, Russia announced that it had attacked the Ukrainian cities of Odesa and Chornomorsk. It said it had hit port infrastructure and vessels which it claimed were supporting the Ukrainian army. The Russian defence ministry stated that the latest strikes targeted a dry cargo ship at Chornomorsk Port, as well as military?cargo storage and fuel and oil storage tanks. The ministry said that a dry cargo ship and bulk carrier were also targeted by the drones. They were transporting military supplies to Odesa. In a separate statement, the ministry said that Russian drones had also 'hit three warehouses' storing Ukrainian drones. In a statement published late Wednesday evening by the Russian Defence Ministry on Telegram, it was revealed that Russian drones struck four cargo vessels?and one bulk carrier throughout the day in Black Sea waters as well as in the port of Chornomorsk. The statement said that the vessels were carrying cargoes for the Ukrainian military. Could not independently verify the contents of the statement. Russia and Ukraine, nearly 4-1/2 years after the start of the 'war, have increased?military activities in and around Black Sea and Sea?of Azov. Each?side has attacked dozens of?"ships, including oil tankers, cargo vessels, and other ships. Mark Trevelyan, Ros Russell, Ron Popeski, and David Gregorio edited the article.
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Football-Argentina's football Association denies reports that Tapia was summoned to US courts
The Argentina Football Association (AFA) said on Wednesday that it is "completely false" to claim that Claudio Tapia, the treasurer of AFA and Pablo Toviggino were ordered by U.S. court judges to provide 'evidence'. The AFA did acknowledge, however, a third-party was summoned before a U.S. Grand Jury and could potentially provide evidence regarding several people, including representatives from the organization. Local media reported that FBI agents had detained Tapia, Toviggino and the Argentina team at New York’s JFK Airport before they boarded the charter flight after the World Cup Final. They also requested Tapia’s devices. Infobae, a media outlet in Argentina, reported that U.S. authorities were investigating?more $300 million in AFA commercial contracts?. This comes amid a wider scrutiny of Argentine finances after raids conducted in December in a'money laundering probe. A witness said that federal agents questioned Tapia and Toviggino in a bus parked at the airport for 30 minutes as the Argentinean team 'prepared to board their flight. The Port Authority of New York & New Jersey, which is a transportation agency, referred the matter to the FBI. The FBI declined comment. The association did NOT name the third person summoned by U.S. courts, but they stressed that U.S. officials had not targeted Tapia nor Toviggino. It is a lie to say that Claudio Tapia, or Pablo Toviggino has been called to testify before the United States Justice System. The association also said that it was false to say their cell phones, or other electronic devices had been seized. The statement stated that the document "in question" did not impose any personal measures on the AFA President or Treasurer. It also does not impose any procedure obligations on them, nor does it record any seizure or confiscation property belonging to either of them. Reporting by Lucila Tsvetkova and Maria Tsvetkova, writing by Natalia Siniawski and editing by Daina Beth Sola and Toby Davis.
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Kinder Morgan's profit exceeds expectations for the second quarter on higher natural-gas volumes
U.S. Pipeline Operator Kinder Morgan beat Wall Street expectations for a?second quarter profit on Wednesday, thanks to higher volumes of gas transported by its pipelines. U.S. Pipeline companies benefit from the booming oil and natural gas production in the Permian basin, and from rising demand for natural gas due to LNG exports. The company reported that it transported approximately 47,886 British thermal units per day of natural gas in the last quarter, compared to 44,818 Btu/day in the previous period. According to LSEG, the Houston-based company?posted a?profit adjusted of 37 cents for the three months ended June 30 compared to analysts' estimates of?? per?share. Varun Sahay, Bengaluru. Diti pujara, editing.
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Southwest Airlines' third-quarter profits are expected to be below expectations due to fuel prices rising
Southwest Airlines predicted third-quarter profits?below Wall Street's expectations on Wednesday. After renewed U.S. - Iran?fighting, fuel prices rose again. This overshadowed the benefits from strong?travel demands and gains made by?assigned seats and extra legroom offerings. The shares of the carrier dropped more than 2% during extended trading after it predicted adjusted earnings for full year of $3.25 - $4.25 per share. This was below its previous forecast at least $4. U.S. Airlines have increased fares, baggage fees and schedules in order to offset the soaring fuel costs that have added billions of dollar to industry expenses. U.S. airlines' fuel bills jumped by 85% to $6.7 billion in just May. After the start of the 'Iran War, jet fuel prices increased by more than twice as much and the Strait of Hormuz traffic was heavily disrupted. Prices fell sharply after a fragile U.S./Iran truce ended in June but then climbed as hostilities resumed?in July. This week, oil prices are approaching a six-week peak as threats and attacks on other regional shipping routes have renewed fears about supply disruptions. It is becoming increasingly difficult for airlines, due to the volatility of fuel prices, to predict their costs and profits. Southwest paid an average fuel cost of $3.92 a gallon during the second quarter. This was lower than its forecasted price range of $4.10 - $4.15 a gallon. According to the 'jet-fuel forward curve' as of July 17,?it anticipates fuel costs for the third quarter of $3.70 - $3.75 a gallon. Fuel costs are expected to rise, but Delta and United will be able to absorb the cost increase with higher fares. Southwest predicted third-quarter adjusted profits of 50 cents to $75 cents per share. This is below analysts' estimates of 82 cents. The company's adjusted second-quarter earnings were 94 cents a share, which was higher than the average analyst estimate of 51 cents a share. Operating revenue increased 16.4%, to $8.7 Billion. (Reporting by Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar)
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US NTSB does not rule out the possibility of age and service in Ryanair 737 engines incident
The U.S. National Transportation Safety Board announced on 'Wednesday that it had not ruled out the possibility of age or service problems in a?investigation into an occurrence in which a passenger was partially sucked out a broken window in a Boeing 737 NG after an engine failure. The letter contradicts Ryanair CEO Michael O'Leary, who on Monday said that an initial investigation found "foreign objects damage", and not the age of the aircraft or its servicing conditions. Jennifer Homendy, Chair of the NTSB, wrote to O'Leary in a letter that the NTSB had not reached this conclusion. Our investigators are still evaluating whether age or service issues were a factor. She asked him to refrain further from public comments about the investigation. Ryanair and Boeing didn't immediately respond to our requests for comments. According to Federal Aviation Administration and video, the NTSB is currently investigating the incident that occurred on July 10, in which a part of the aircraft's engine broke away and smashed a window shortly after taking off from Thessaloniki, Greece. The plane was headed for Germany when it lost pressure. It landed in an emergency. O'Leary said that the initial indications would indicate a foreign object damaged to the engine during takeoff in Thessaloniki. However, analysts were unable to confirm this. O'Leary stated that the aircraft was 18 years old, and the engine had been overhauled and fully serviced in the last two year. He said that in approximately?28-days, a 'draft report' on the incident will be released. This will be followed by a detailed report. FAA Administrator Bryan Bedford said last week that the incident, which had echoes to two Southwest Airlines Boeing 737 NG flights in 2016, and '2018, prompted a reevaluation of?the response?to these incidents. He added: "I do not think early indications show (the recent Ryanair issue) is a replica of what the Southwest Airlines incident was." (Reporting and editing by Aurora Ellis; David Shepardson)
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Farnborough Airshow: Boeing and Airbus battle it out as orders surpass 300
As the Farnborough International Airshow nears its conclusion in the United Kingdom, airlines have revealed over 300 plane orders. Boeing has a slight advantage over European rival Airbus in the race for sealing deals, according to a tally. Here are some of the biggest deals, with 327 firm orders. This is slightly more than?the previous Farnborough airshow in 2024. The?tally falls short of the 800 orders that were expected, due to supply-chain issues and production bottlenecks. SMBC AVIATION CAPITAL Boeing and SMBC Aviation Capital have announced that they have ordered 100 737-MAX aircraft, 60 737-10 jets and 40 737-8. SMBC announced that it had placed a firm 100 Airbus A320neo family aircraft order, including 65 A321neos and 35 A320neos, for delivery to begin in the first half of the decade. RIYADH AIR Saudi carrier exercised options on 28 Boeing 787 Dreamliners placed in 2023. 20 of these aircraft were converted to the larger 787-10 version. The firm has also confirmed the purchase of six Airbus A350 1000 aircraft, bringing its total A350 1000 order book up to 31 aircraft. PHILIPPINE AERIALLINES Boeing has announced that it received a "new order" from Philippine Airlines for up to twenty 787-10 Dreamliner twin-engine widebody jets. The order is composed of 15 firm orders, and five options. The airline has also placed orders for nine Airbus A350s and secured purchase rights for another five. It expects to receive its first Airbus A350 in early 2030. AERCAP The leasing giant AeroCap has placed an order to deliver 15 Boeing 787 Dreamliners between 2033 and 2033. FLYNAS Saudi Arabia's budget airline Flynas has confirmed an order for 25 more Airbus aircraft. Flynas has now committed to Airbus 235 aircraft. OTHER ORDERS: Uganda Airlines has announced that it has placed orders for four Boeing 737 MAX narrowbody planes and four Boeing 787 jets. Boeing and MSC Air Cargo have announced that MSC Air Cargo has ordered five 777-8 Freighters. IBA, an aviation intelligence and advisory firm, said that Luxair had ordered two Boeing 737-10s worth $124m, based upon estimated prices after discounts. Shohin Airlines, a Tajikistani carrier, has ordered four Airbus A320neo family aircraft. BermudAir, a startup airline, has ordered 10 Airbus A220 aircraft to expand its routes. BermudAir plans to order up to 20 A220 aircrafts by 2030. EMBRAER JETS Brazilian aircraft manufacturer Embraer announced that Japan's Fuji Dream Airlines had placed a firm two-jet order for the?E175 regional jet. Embraer has already included the?order in its backlog. Abra, a South American airline group, also ordered Embraer 20 E2 aircraft. This was the first order Embraer received from this airline group. Embraer announced that Spanish regional carrier Binter has ordered five E2 aircraft from the Brazilian planemaker, increasing its fleet of Embraer's latest generation regional jets. ENGINE ORDERS British 'Airways has announced that it will be using Pratt & Whitney GTF engine for up to 63 incoming Airbus A320neo aircraft. Singapore-based BOC Aviation has placed its largest ever engine order of up to 300 CFM International engines to support the expansion of its Airbus and Boeing narrowbody fleet. IndiGo, India's largest carrier, signed a "memorandum-of-understanding" with CFM International for more than 1,000 LEAP-1A engine purchases. This would be a record for CFM International, who has been criticized by the industry over maintenance delays.
Grid operator PJM takes emergency measures to prevent large-scale US electricity outages
PJM, America's largest?power grid operator said that it had ordered generators?to run at maximum output? and brought idle?power _plants?online immediately on Thursday night, due to the escalating heat dome.
PJM’s orders, as detailed on its website for emergency procedures, were aimed to preserve reliability, as it?sought?to maintain power on a network serving 67,000,000 people?across Mid-Atlantic, South, and Washington, D.C., and the world’s largest concentraion of data centers.
Even before the heatwave this week, PJM was 'trying to overhaul a shaky system that had been pushed to?the?edge by soaring?energy consumption from data centers and electric cars.
PJM’s “transmission security” action included preparing resources for demand-response to reduce electricity consumption if needed. Grid operators were also instructed to inform management, government agencies, and consider public conservation appeals.
The report did not order voltage reductions, or tell electric utilities to reduce power to their customers.
PJM didn't respond to a?request? for additional comments immediately.
All available resources are deployed to reduce the risk of a customer outage if transmission conditions worsen or if supply becomes tighter.
Practically, the move was made to avoid rolling blackouts and?other measures of last resort in a region including densely-populated Baltimore-Washington. (Reporting by Tim McLaughlin, Editing by Chris Reese & Jamie Freed).
(source: Reuters)