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The Turkish Foreign Minister will visit Moscow to discuss Ukraine and the Black Sea
A diplomatic source revealed on Monday that Foreign Minister Hakan Fidan would reiterate Turkey's offer to host talks between Russia and Ukraine during a trip to Moscow in this week. He will also be discussing?Black Sea shipping safety? as well as the South Caucasus. The visit to Ankara on Tuesday and on Wednesday is in preparation for the NATO summit that Turkey will host on July 8-9, and after Kyiv requested Ankara's mediation by hosting a meeting of?leaders at a high level?. Since the Russian invasion of 2022, Turkey has maintained friendly relations with Moscow and?Kyiv. Fidan, according to a Turkish source, will meet his Russian counterpart Sergei Lavrov before meeting Vladimir Putin. Source: He will warn against "further escalation" in the Black Sea, and reiterate Turkey's proposal for a limited ceasefire over ports and energy infrastructure. In recent months, Ukraine has accused Russia of drone attacks on tankers near Turkey’s northern coast. An official in Ukraine said that Kyiv welcomes the offer of?Turkey hosting bilateral talks. President Volodymyr Zelenskiy has made this proposal?multiple times. Last month, the ambassador of Kyiv to Ankara said that he wanted closer ties with Turkey. This included joint productions in the defence industry. Fidan will discuss the developments in South Caucasus after Armenian Prime Minister Nikol Pashinyan's?elections? this month and while?Yerevan is working with Azerbaijan to reach a peace agreement that could speed up Turkey’s normalisation of relations with Armenia.
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China targets heavy truck electric-drive in a bid to reduce diesel demand
China has?launched a campaign to electrify heavy vehicles, a policy which is likely to 'accelerate' a move away from diesel fuel that reduces fuel demand while creating new opportunities for domestic battery and truck manufacturers. According to a message posted on the Ministry of Transport's website late Friday, by 2030 EVs are expected to account for 40% of all new heavy trucks sold in China, and 20% of its total fleet. That is 1.6 million cars. On some short-haul route around Beijing, the goal is 80%. This is the first specific goal the country has set for this sector. It surpasses Rystad's September prediction that electric heavy trucks will account for 9% or China's fleet in 2030. According to CVWorld.cn data, in 2025, the electric model will account for nearly a third (33%) of all new heavy trucks. This is a product that has grown quickly over the past two years, from a niche to a mainstream product, thanks to subsidies and an expanded charging infrastructure. As part of the "zero carbon highway" initiative, the new plan calls for a massive expansion of power infrastructure. It targets 3,000 charging stations and battery swapping stations by 2030. China may move to electric trucks even faster than government targets suggest. This is similar to the way that China's renewable energy rollout has accelerated ahead of government goals. Last year, EV giant CATL forecast that up to half of China's heavy trucks sales would be electric by 2028. The new plan said that to support the rollout of electric trucks, they will be given a higher priority in China's exchange programs. These programs offer subsidies for trading out older trucks. These trade-in programs were responsible for a previous surge of LNG truck sales in recent years, along with a decline in fuel prices. SUPER-CHARGING State-backed efforts to electrify trucks?will likely boost the domestic truck?makers. Many of whom have already begun to export their vehicles. This has sparked concern among European manufacturers who are worried about an influx cheap, high-quality goods. Beiben Trucks Group officials in Inner Mongolia, northern China, showcased during a Saturday state-sponsored tour a new dump truck model equipped with an EV battery EVE Energy's 200-250-kilometre-range battery that charges in just 22 minutes. Bai Xiaolong is a senior specialist at Beiben’s strategy development /department. She said that China is the main'market' for the company, given the limited charging infrastructure in other countries. However, the company exports about a 5th of its trucks. Southeast Asia has emerged as a hotspot for electric trucks overseas, Bai stated, especially in mining applications, in countries such as Indonesia.
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HSBC Hong Kong Mobile Banking Services restored after issues
HSBC said Monday that all 'digital'services were back to normal in Hong Kong before 2 p.m. local (0600 GMT) after customers experienced problems using the HSBC?mobile banking application earlier in the day. In an email to customers, the bank stated that "all our services were back to normal before 2:00 pm today." We apologize for any inconvenience caused. It had earlier stated that some customers were experiencing difficulty in accessing certain services, and it was working on a solution. HSBC 'didn't say what caused the problem or how many customers were affected. Reports stated that'some users were locked out of the application earlier in the day. Media reports from the time said that Hong Kong services of the bank also experienced a disruption in late January.
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Shippers remain cautious as one LNG tanker passes Hormuz following US-Iran agreement on deal
Data from a ship tracking system showed that India's Petronet had sent a liquefied gas tanker across the Strait of Hormuz on Monday, the first shipment since the United States reached a deal with Iran to reopen this strategic waterway. The limited traffic highlights the caution among shippers, who welcomed the deal but still await more details (including mine clearances in the strait) before allowing vessels to pass. The global oil price fell by about 4% on the Monday after the United States and Iran signed a memorandum in Switzerland on Friday, which outlines the steps to be taken to resume shipping across the Strait. The U.S. and Israeli war against Iran, which began on February 28, has stopped most shipping through the Strait. This is the route used by a fifth or more of the world’s oil, liquefied natural gas, and other vital products like aluminium and Urea. Data from Kpler showed that the LNG tanker Disha had been west of strait ever since it picked up its cargo in Qatar's Ras Laffan. Sources familiar with the situation said that the cargo would be delivered to India's Dahej terminal, even though the shiptracking data didn't indicate its destination. Petronet didn't immediately respond to an inquiry for comment. Ship tracking data from Kpler revealed that 155 tankers carrying oil and chemicals were estimated to be in the Mideast Gulf as of June 15. This is down from the 201 tanks at the end May. Oil Brokerage's estimate stood at 215 tankers. Anoop Singh is the global head of Oil Brokerage’s shipping research. The physical freight rate will probably remain high and the trading will be slow until then. Singh stated that if the traffic jams on either side were not restricted, they could be resolved in 8-10 days according to OB's calculations. In anticipation, shipowners have placed nearly 60 VLCCs, or Very Large Crude Carrier, more than usual in the few days before sailing to ports west of Hormuz. The Japanese Shipowners' Association spokeswoman said that the group, while welcoming the peace accord, wanted to "wait a little bit longer for'more concrete information'" when the U.S. Iran pact was signed on June 19th. The spokesperson stated that there had been reports of mines being laid in the region. She added: "Given this situation, we cannot just say, 'Right, let's move' based solely on the news about the agreement." Nippon Yusen is the largest?shipper in Japan. It said that it hoped to return operations to normal as quickly as possible. However, a spokesperson stated it was still too early to comment about the schedules of Japan linked vessels "stranded" in the Gulf. He refused to reveal how many of the company's vessels remain in the Gulf. A Mitsui ?O.S.K. Lines spokesperson stated: "We are aware that there have been signs of progress toward a ceasefire. However, our policy is unchanged. We will not resume navigation until safety has been confirmed."
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Bousso: Iran's fragile deal with oil offers relief, but there are still risks associated with the Hormuz pipeline.
Energy exporters and buyers will breathe a collective sigh of relief when the U.S. and Iran deal ends months of fighting. The fragile calm could not prevent future flare ups and cast doubt on how quickly or fully the tanker traffic in the crucial waterway will return to normal. Iran and the U.S. announced an agreement late Sunday night to lift the blockade on the Strait of Hormuz. This is where?a fifth of the world's oil and LNG passed before the?war broke out on 28 February. After both sides sign the agreement on Friday, it is expected that the Strait of Hormuz will reopen. This is good news for the energy markets that are in a crunch, but it leaves open the major disputes which sparked the U.S.-Israeli bombing campaign on Iran, such as the future of Tehran’s nuclear program. This ambiguity leaves room for confusion, disagreements and new confrontations. In fact, tensions are already rising again. Iran's refusal to link any deal with Israel's campaign in Lebanon against Hezbollah has threatened to derail talks. The Iranian-backed militia have exchanged fire repeatedly with Israel including at the weekend. The status of Hormuz is not clear. The deal gives Tehran a powerful tool, even though both the U.S.A. and Iran are committed to lifting the blockade. Iran's willingness to and ability to block the Strait for months has broken a decades-old Taboo. It raises the possibility that Iran could do it again, or just threaten to, whenever it wants to gain leverage over its Gulf neighbors or adversaries. This shift could have long-lasting consequences. Long after the flow of energy resumes, it is likely that shippers and buyers will be more cautious. Already, some significant adaptations have been made. Saudi Arabia has increased its shipments out of Yanbu, a Red Sea port, by a factor of three since March. The loadings have tripled to around 4.5 millions barrels per day. This is roughly 60% more than pre-war. United Arab Emirates have also increased exports out of Fujairah outside the Strait. Even after the reopening of Hormuz, it is unlikely that Riyadh or Abu Dhabi will reverse their shifts in full. The shipping behaviour may also change. Charterers and tanker owners will likely reduce their time in the Gulf to avoid being stuck if tensions erupt again. This caution will be reinforced by high insurance costs and concerns about security. These factors indicate that transit through Hormuz is unlikely to return to the pre-war level of 20 million barrels per day any time soon. In the months and years to come, a flow of 16 million bpd or more is more likely. This residual risk should help to support prices. Brent crude is now trading below $85 a barrel, down from $118 in March. However, a higher risk premium due to geopolitics and a more complex logistical system will likely prevent the price from fully reverting to its pre-war level of $60s. The Flood of Relief Reopening the Hormuz will lead to a multi-phased adjustment of global energy flows. First, the Gulf will be the source of this wave. The first wave of tankers will be those stranded in the Gulf during the blockade. They will start to leave almost immediately, supplying energy-starved countries and markets. Kpler estimates that around 60 million barrels worth of crude oil and refined products remain in floating storage inside the Gulf because they are unable to leave through Hormuz. Then, an influx will follow of vessels headed toward the Gulf in order to reduce the swollen Middle Eastern domestic inventories and resume export programs. Normalisation of logistics will take some time. Supply chains may take up to 60-90 days to fully rebalance due to port congestion, sailing distances and scheduling bottlenecks. It takes about three weeks to sail from the Middle East into Asia. This means that the return of shipments won't bring immediate relief to the most vulnerable markets. The impact of the conflict on global oil supplies will still be significant, even if it is not immediate. The regional producers can bring back 11 million bpd in oil production that was shut down during the conflict. They will also be able to reactivate refining capacity and LNG export capability. Some volumes may return in a few weeks, but the full recovery will take longer. It is difficult to restart fields, refineries, and export terminals following prolonged outages. Infrastructure damage caused by the war may take months, or even years, to repair. A?RESILIENT MARKET BUT STRESSED MARKET Reopening comes at a time when the balance between supply and demand is strained. The summer in the Northern Hemisphere is usually the time when global fuel consumption peaks, due to increased travel and air conditioning. The return of Middle East oil will, therefore, initially only slow down the rapid decline in global inventories. According to the U.S. Energy Information Administration, oil stocks dropped at an average rate of 5.3 millions bpd from March to May. Remember that the market has been surprisingly resilient during this conflict. The combination of commercial and strategically oriented?stock releases and the surge in U.S. imports, the weaker Chinese demand and the partial relaxation of sanctions against Russian and Iranian crude oil helped to cushion the shock. These measures did not eliminate the economic damage but they kept it manageable, effectively buying time for global economies. This time was running out fast, as inventories were dangerously low. The U.S. and Iran agreement 'comes at the right time. The agreement is not a good way to prevent a new confrontation between the U.S. and Iran because it does nothing but cover up the core issues at the core of the conflict. The message for oil markets is clear: although the acute risks from the supply shock are over, the structural vulnerabilities revealed during the war will remain. 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.
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Japanese shippers await details on Hormuz reopening, mine clearance
Japanese shippers welcomed the U.S. - Iran peace 'agreement' on Monday, which will reopen Strait of Hormuz. However, they are waiting for more details of the agreement?and the clearance of mines before allowing their ships to pass the chokepoint. The association claims that 38 vessels with Japanese connections are still stranded on the Strait of Hormuz. The U.S. and Israeli war against Iran, which began on 28 February, has largely halted shipping through the strait. This is the transit route of?roughly a five percent of the world’s oil and liquefied gas supply?alongside vital products such as aluminum and urea. The global oil price fell by?4% after U.S. president Donald Trump and Iran’s deputy foreign minister announced that they had reached an initial agreement to end the conflict and resume traffic through the Strait of Hormuz. A spokesperson from the Japanese Shipowners' Association stated on Monday that the group was happy with the peace accord, but wanted to "wait for more concrete details", which they expected to receive by June 19, the date the U.S. and Iran?pact will be signed in Switzerland. The spokesperson stated that there had been reports of mines being laid in the area. She added: "Given this situation, we can't just say, 'Right now, let's go,' based solely on the news about the agreement." Nippon Yusen is the largest shipper in Japan. It said that it hoped to return operations to normal as soon as possible. However, a spokesperson stated it was still too early to comment about the schedules of Japan-linked vessels stuck?in Gulf. He refused to say how many ships of the company remain in the Gulf.
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IFM Global offers a 'best and last' bid of $5.2 billion for Australia's Atlas Arteria
IFM Global Infrastructure Fund increased its bid to takeover 'Australia's Atlas Arteria a week ago, to A$7.40bn ($5.24bn). It called the revised offer its 'best and final proposal. IFM raised its offer for Atlas Arteria to A$5.10 from A$4.75. Atlas had rejected the previous bid a month earlier, calling it opportunistic. Atlas's bid price was announced at the end of April. The new offer represents a 17.8% increase. Atlas shares were up 0.4% to A$2.82 at 0015 GMT while the benchmark index rose 1.3%. The toll operator stated that a'report by an independent expert' also concluded the offer wasn't fair or reasonable. IFM's'statement' on Monday said that Atlas' independent directors' claims, 'that more value can be created by asset sales' are 'dishonest'.
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Manufacturers and unions warn that the UK is losing jobs to other countries due to high energy prices
A manufacturing group and a trade union warned that Britain risks losing?major industries due to high energy costs. They urged the government to do more to reduce?companies bills. In an industrial strategy announced a year earlier, Britain committed to reducing electricity costs in energy-intensive industries, by exempting these from certain green levies. Since then, the scheme has been expanded and retroactively applied. Industry group Make UK said a survey showed that more than half of its members had not seen any benefit from this strategy. A quarter of them had either moved their production overseas or were considering it. Stephen Phipson of?Make UK said that Britain faces deindustrialisation if manufacturers don't get relief from high prices. He called for the scheme to be extended?to all industries and?rolled-out more quickly. We cannot afford to delay our actions by political turmoil or further consultations. The Government must act immediately to save thousands of jobs in Britain. Keir starmer is facing discontent from his Labour legislators?after several U-turns. Some people are supporting Greater Manchester Mayor Andy Burnham in the event that he faces a leadership challenge, if he returns this week to parliament after a special elections. Starmer is under pressure from competing demands - such as those relating to defence and welfare - due to the 'Iran War. Phipson stated that extending the scheme to all companies would cost PS3 billion (about $4 billion) per year and eliminate 2.5 million jobs. The Trades Union Congress, a trade union federation, backed the call for greater relief. General Secretary Paul Nowak said the scheme should expand to "protect jobs and maintain factories and plants operating."
How will the UK social media ban for those under 16 work?
Keir starmer, British Prime Minister Keir said that he will impose a?ban on social media sites for under-16-year-olds and?restrictions to gaming and livestreaming platform in order to "give children their childhood back".
Below are details on what is being banned, the measures that will be taken, and when these measures should take effect.
BANNED: TIKTOK. YOUTUBE. AND INSTAGRAM
The government announced that it would ban children from using social media platforms. These platforms are designed to facilitate user-to-user interaction. The government said it would block children from using social media platforms whose purpose is to enable user-to-user social interaction and?
The government announced a ban on platforms such as Snapchat, TikTok and YouTube. It also includes Instagram, Facebook, Facebook, Instagram, Facebook, X.
The government stated that it does not intend to include messaging services such as WhatsApp or music streaming services in the ban. Exemptions will be reviewed.
How will the ban?be enforced?
Keir starmer, the Prime Minister of Australia, said that the ban will be enforced by 'action against social media platforms' rather than fining children who circumvent it.
Ofcom, the government's regulator of communications, will conduct a study in order to determine how to best verify that someone is older than 16 years old. They also plan to implement a new strategy for enforcement and fund it.
TIME OF THE BAN
Starmer stated that he aimed to pass the relevant regulations by Christmas so as to have the ban in place early next year.
In July, a full response to government's consultation on the topic will be published, detailing the details of the policy.
REGULATIONS?ON GAMING WEBSITES
The government has also announced that it will block all livestreaming, stranger communication and gaming sites for those under 16 years old.
Starmer stated that this would prevent strangers from contacting children via these sites.
GOVERNMENT WILL?LOOK AT CURFEWS AND RESTRICTIONS on SCROLLING
Next month, the government will provide more details in its response. It will also examine in greater detail overnight curfews and breaks in endless scrolling for those?under 18 years old.
The government has announced that restrictions on functionality banned for users under 16 will be automatically applied to 16 and 17-year olds. (Reporting and editing by Jan Harvey; Alistair Smout and Andrew MacAskill)
(source: Reuters)