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AirBaltic bondholders in Latvia agree to waive two interest payments
AirBaltic's bondholders agreed to allow the airline to?skip interest in?August?and November?as it?seeks?fresh investment?, the Latvian state-controlled airline announced on Monday. Holders of over 75% of the EUR380 million ($440 millions) in bonds issued by the airline with a coupon of 14.50%, voted to add the interest to principal rather than receive cash payments. The holders waived the?minimum liquidity requirement' until November. The company stated that "the approved resolutions ensure continuity of airBaltic operations. Passengers can book future travel with confidence. LSM, the national broadcaster, reported that Latvian Prime Minister Andris Kuulbergs stated that bondholders have not approved of the entire business plan proposed by the airline. He did not provide any details. He said that his government would ask the parliament to consider additional support for the airline. For example, converting its EUR50million bondholding into equity. AirBaltic announced last week that it is seeking approval from bondholders to raise EUR225 Million in interim financing for near-term liquidity requirements. The company is also proposing an even broader restructuring, whereby bondholders will swap part of their EUR380 million in debt for equity and the rest with up to EUR125 millions of new debt. The airline also said that other unspecified obligations will be converted into equity. According to the revised business plan, AirBaltic will reduce its fleet of Airbus A220-300 aircraft from 54 at present, to 36 by the end of 2026, and then gradually expand it to 40 by 2030. The plan, on a longer term basis, envisages a recapitalisation via EUR225?millions of new debt as well as EUR100?millions of fresh equity. Last month, Raman Singla, Fitch Ratings' director of ratings, said that airBaltic would need to deal with a projected cash outflow in 2026 of EUR156 million to continue to operate?as planned. Singla stated that the capital structure of the airline, which includes leased planes and "very costly" bonds due in 2020, is "not sustainable to our view".
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Russia's Far East will test drones and unmanned vehicles for trade with China
A Russian regional official stated that self-driving vehicles and drones could be used to transport goods between China and Russia's Far East. The brisk trade across the border has prompted a search for?new forms of cargo transportation?to avoid congestion. The Amur region of Russia, which?shares? a long border between China and Russia, is developing trial programmes with Chinese authorities in partnership, said the deputy chairman of the regional government, Pavel Puzanov. He was speaking at a business conference in Kazan. China is providing a lifeline for Russia's economy after it was sanctioned following the invasion of Ukraine by Russia in February 2022. It has bought Russian coal and gas, as well as selling its neighbour everything from cars to electronic goods. Rapid growth puts pressure on existing infrastructure and border checkpoints. PROJECTS INCLUDE DRONE BRIDGE OVER BORDER RIVE In one of the trials, the 'drone bridge' will be built between Blagoveshchensk in Russia and Heihe in China. Both cities are located across the Amur River. Puzanov stated that the drones would be used to transport high-margin goods such as electronic components up to 50 kg. According to a presentation at the forum, a second project developed by Russian autonomous driving company Navio would allow Chinese trucks without drivers to transport heavy freight between two cities. According to a presentation made at the forum, cross-border tests with a safety pilot in the cabin will be conducted in 2027. Fully autonomous operations are possible by 2028. The Chinese ambassador to Russia Zhang Hanhui stated that the trade between China and Russia rose by 26% from January to July. This could be a record-breaking year. Chinese data from January showed that China's trade with Russia in 2025 had dropped from a record high in 2024, and was the lowest it has been in five years. In 2027, passengers will be able to travel between Blagoveshchensk, Russia and Heihe, China, in just five minutes, without border checks. Reporting by Alessandra Prente and Helen Popper; Editing by Helen Popper and Alessandra Prente
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Germany's BASF CEO: Low river levels are preventing BASF from fully supplying some products.
The low water levels of the Rhine River have made it impossible for a German chemical company, BASF, to supply certain products, according to CEO Markus Kamieth. A prolonged drought is threatening to harm Germany's economy. Kamieth stated that although the drought has not had a significant impact on financial results, the risk that production will be disrupted is increasing every week. Despite the challenges, 'Kamieth' said that the situation was under control. He added that the group had been'significantly better prepared for extreme weather conditions than in 2018 when the Rhine water levels were depleted due to?drought. "Everything remains within manageable boundaries and, in comparison to?2018 this is a much smaller challenge for BASF," Kamieth said on the sidelines at the groundbreaking ceremony for an expansion of a rail and road terminal at the company's headquarters in Ludwigshafen. On Monday, the water level gauge at the Chokepoint of Kaub near Koblenz was around 6 cm (2.36 inches), well below the previous low of 25 cm (9.84 inches) set in 2018. Early August, analysts said that the Rhine's record low levels could halt German growth and drag Europe's largest economy back to stagnation. This is just when it was showing signs of a long awaited recovery. In order to maintain supplies at its main plant in Ludwigshafen - which gets about 40% of its raw materials from the river -?the company relies more and more on trucks, rail transport and low water vessels. Reporting by Patricia Weiss, Writing by Friederike Weine and Linda Pasquini, Editing by Ludwig Burger & Helen Popper
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Fuel shortages in Russia force Russia to receive Indian gasoline cargo
Three industry sources and LSEG data revealed that at least one cargo of fuel?from India? has entered the Russian domestic market as Moscow tries to alleviate fuel shortages caused by a?Ukrainian drone swarm on refineries. Russia has taken a number of measures to help support its domestic fuel market following repeated Ukrainian attacks against oil refineries that caused shortages and price spikes. These measures include the import of gasoline by rail from Belarus and Kazakhstan, as well as a ban on fuel sales. In July, Deputy Prime minister Alexander?Novak announced that Russia would import oil products in order to stabilize the domestic market. Sources said that an Oman-flagged ship loaded 68,000 metric tons of fuel at the Port Said Anchorage as part of a ship to vessel transfer from the tanker Agni which was loaded in India's Vadinar Port. Shipping data revealed that the tanker unloaded its cargo in early August at Vitino, a Russian Arctic port. Sources said that the gasoline was being transshipped to domestic buyers via rail and that shipments had already begun. Industry sources have previously said that traders sold Russia gasoline produced from Indian refiner Nayara Energy. LSEG data indicates that 'at least two additional gasoline cargoes are expected to arrive in Russian ports over the next two weeks. Last week, it was reported that Russia began seaborne imports from Asia of diesel into its Far East port. Reporting by Mark Potter Mark Potter (Editing by Mark Potter).
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Madison Air Solutions buys German fan manufacturer ebm papst for $5.4 billion
Madison Air Solutions announced on Monday that it will acquire German fan manufacturer ebm papst for $5.4 billion. This deal will expand its air quality business and ventilation. Madison Air is a part of billionaire Larry Gies Madison Industries. It specializes in indoor air quality and ventilation equipment for data centres and cleanrooms. Madison Air wants to expand its technology portfolio and strengthen its position in?Europe. Ebm-papst stated that the deal will?allow them to tap a booming U.S. market for data centres, where cooling systems are in high demand as operators deploy more powerful servers and chips. The deal gives us access to U.S. Capital Market, which can give us strategic options, CEO Klaus Geissdoerfer said. Madison Air will benefit from the technology and customer base of ebm papst, especially in Europe and Asia. This acquisition will help it to expand its business beyond North America. Ebm-papst, a major supplier of fans, motors and ventilator systems for air conditioning and refrigeration. The company stated that it would retain its headquarters and key R&D, production, and research operations in Mulfingen. Ebm-papst had a turnover of EUR2.24billion ($2.6billion) for the 'fiscal year that ended in 'March. Geissdoerfer aims at growing the core business up to EUR3.4billion by 2030.
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Iran threatens to escalate if US fails to honour the deal within a few weeks
Iran will escalate tensions along the Strait of Hormuz, and beyond, as well as launch an attack, if U.S. does not fully implement an interim peace deal in a few weeks. The official said that if the U.S. fails to meet this deadline and diplomacy fails then Tehran will launch a "timely" and "precise" military strike against the U.S. Naval Blockade of the Islamic Republic. In recent weeks, diplomatic efforts to bring Tehran back to the table and Washington to resume talks in accordance with a June agreement have failed. Iran's Foreign Minister has stated that the Strait?of Hormuz won't reopen until first the U.S. returns to the agreement, and the U.S. Treasury?Secretary warned of an unprecedented economic isolation for Iran. "Within a few weeks, Iran has set a deadline for the U.S. to implement all of the provisions of the agreement." The official said that this was a condition for future negotiations with the U.S. The official added that mediators would be sharing details about Tehran's deadline to Washington and other regional states. The official stated that "Iranians must be prepared for tensions to rise in the Strait of Hormuz, and other parts of the region. Iran will be ready to take difficult decisions and to act," Tehran's official stated that it was changing its strategy from defence to offense as it "lost confidence" in diplomacy with Washington. The official stated that "it is proven that the U.S. will not commit to a ceasefire and is unlikely to do so. Putting pressure on the enemy or relying upon mediators is unrealistic." (Reporting and editing by Michael Georgy, Andrew Heavens, and Parisa Hafezi)
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Oman claims that weather and technical difficulties are hampering the salvage of oil-spills and tankers.
The sultanate’s?state media agency? reported on Monday that weather conditions and operational difficulties were hindering salvage efforts of a grounded tanker leaking Russian crude in a marine protected area off Oman’s coast. Oman is coordinating the?salvage?operation with Ambrey, a risk management company. This is part of Oman's efforts to limit environmental damage caused by a spill estimated at 2,000 square kilometers. Environment agency of the government gave an official estimation of 400 sq km in August but has not yet issued an update. The Caroline Bezengi spill, which is the apparent result of an?unknown attack on the tanker in June, has affected a nature preserve and hit Oman's coast on Wednesday. The news agency reported that Mohammed bin Abdullah al-Rawahi said the difficulties were caused by the monsoon and the shallow, rocky site where the vessel sank. He was quoted saying that the conditions placed salvage vessels and equipment at "operational and navigable risks". He added that the operation was further complicated by damage to the vessel. A large area of the vessel had been flooded on one side. The vessel was under international sanctions and carrying approximately 800,000 barrels (or more) of Russian oil. It ran aground near an Omani marine reserve that is home to wildlife such as humpbacks whales and Socotra Cormorants. Ship-tracking data indicates that the Caroline Bezengi departed from the Black Sea port in Russia of Novorossiysk at the beginning of April and entered the Suez Canal by the end of May. It was built in 2001 and is part of Russia’s shadow fleet, which includes a number of older oil tankers that lack Western insurance coverage. They also sail under various flags to hide their true ownership. The ship is under sanctions by the European Union (EU), Ukraine, UK, Canada, and Switzerland.
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Maguire: The power system in India has just reached a tipping point of historic proportions.
India's electricity system has reached a milestone that tells an entirely different story than the usual one conveyed through data on electricity generation. India is a great market for coal and has been for many years. Coal is still responsible for approximately 70% of the electricity generated and remains a key component in the grid. A look at the installed capacity mix of the country suggests that something is happening beneath the surface. According to the most recent capacity data from Ember & Global Energy Monitor (GEM), renewable energy sources account for 331.7 GW of installed capacity, as opposed to 302.0 GW fossil fuels. This capacity split gives India's utility mix a?majority?share?of clean power for the first time. CLEAN SPLIT This milestone is not important because India suddenly became a clean energy system. This has not happened. It reveals instead a growing tension in India between what it is building and burning. It is important to make this distinction because the generation statistics are a description of today's electric system while the capacity numbers provide a glimpse into tomorrow's. Solar panels and windmills only produce when the weather permits. The capacity mix is a good indicator of where the capital is going, what infrastructures are being built, and ultimately what type power system India wants to build. India's transformation appears much more advanced when viewed through this lens than many observers believe. SOLAR SPOTLIGHT Solar power is the 'clearest evidence. In 2010, India only had 0.07 GW solar power. According to Ember, it now has 211 GW. Solar represents 33% of the total utility-scale installed capacity. This makes it the most clean energy source in the United States. It is hard to overstate the extent of this expansion. India's solar power fleet is now almost the same size as its coal-fired fleet, which totals 254.4 GW. The solar capacity alone is larger than India's entire power system, which was 211.4 GW in 2011, the year when it was installed. The pace at which recent additions have been made is even more impressive. India will add 75.5 GW solar capacity between 2025 and mid-2026 compared to just 3.8 GW coal capacity. Over the same period, clean capacity increased by 80 GW while fossil?capacity grew only by 5.4 GW. This does not mean that India has stopped producing coal. The coal capacity is still increasing and policymakers are committed to expanding dispatchable energy supplies to meet the rapidly growing demand for electricity. The challenge for the country is not to replace an existing system of electricity but rather, to build enough generation capacity to support a rapidly growing economy. GROWTH MARKET India's transformation is different from that of many other developed markets. In Europe, the energy transition focuses largely on substituting clean energy to fossil fuels. India's energy transition occurs as the country's overall electricity demand continues its upward trend. In this way, coal's absolute value can grow even though it is losing ground relative to other fuels. These numbers show this shift very clearly. In 2014, coal accounted for 59% of the installed capacity. By 2026 its share would have fallen to 40%. The total amount of fossil fuels has declined from almost three quarters in 2000 to under half today. The growth of renewables is much faster than coal. This distinction is important because power systems can change slowly and then suddenly. In the early 2010s, renewables eroded coal's dominance while not fundamentally changing the structure of the grid. But a number of milestones suggest that the balance may be shifting. Solar power was the first to surpass all other sources of clean energy. Hydro was the mainstay of India's nonfossil power fleet. Solar capacity is now roughly four times greater than hydro and wind capacity. Second, the majority of clean-capacity vehicles is emerging. The crossing of the 50% threshold is often symbolic but also attracts policymakers, corporate planners and investors. When a category of technology becomes dominant, subsequent investment decisions reinforce this dominance. Just a few steps ahead is the third milestone. Solar capacity now equals around 80% of coal. Solar could overtake coal in India as the largest source of installed power within 10 years if growth rates continue. This would be a significant psychological shift even if coal was the biggest generator of electricity. This is the next step in India's transformation. Next Steps It is no longer a question of whether India can build large-scale renewable energy capacity. This capability has been demonstrated. Now the challenge is to convert capacity growth into generational growth. This means investing in grid infrastructure, transmission systems, storage systems, and flexible energy resources that can balance large amounts of solar output. The success of the project will not be determined by how many solar panels you install, but rather by how much coal they eventually replace. For some time to come, Generation Data will continue to portray India as a coal-based story. But the data on capacity tells a very different story. These figures show that the future power system of a country is developing much faster than what headlines suggest. India may still burn coal. The power sector's centre of gravity has begun to shift, judging from what India is building. 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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Houthis claim to have attacked Saudi vessels near Yemen's Mocha
According to Yahya Saree, the military spokesperson for the Houthis'?Iran-aligned group in Yemen on Telegram Monday, the Houthis fired missiles at what they 'described' as a Saudi military ship and its four escorting vessels in the Red Sea.
Saudi authorities did not immediately confirm the report.
Mocha is a Red Sea Port near the 'Bab el-Mandeb Strait. This strategic chokepoint connects the Red Sea to the Gulf of Aden, and it is an important international shipping line.
The Houthis reportedly attacked a ship on Tuesday in the Bab el-Mandeb Strait, at the southern 'entrance to the Red Sea. According to the Yemeni transport ministry, four crew members died in the attack.
In July, the Houthis placed a naval blockade against Saudi Arabia on the Red Sea as a response to their accusation that Saudi Arabia was waging a siege in Yemen. Riyadh denied this claim.
Two sources within Yemen's internationally recognized government said earlier Monday that six missiles were fired by the Houthis at a ship in the Bab el Mandeb Strait.
Sources said that the ship was out of service since more than a year, and it had been deemed 'empty' at the time of attack. Reporting by Mohammed Ghobari; Writing by Eman Aboushassira, Editing by Michael Georgy and Kirsten Donovan
(source: Reuters)