Trump tariffs stymie M&As and IPOs during what was expected to be a record-breaking quarter
The global trade war started by U.S. president Donald Trump, and the subsequent market turmoil, has shattered bankers' expectations for a strong start to Wall Street deals in 2018. Dealogic data for the first quarter showed that mergers and purchases volume increased 12.6% from the year-ago period to $984.38 Billion. The Asia Pacific region was largely responsible for this, where three state-run deals announced on Sunday by China and a port deal driven by Trump nearly doubled the M&A volume compared to last year. Worldwide, banks are reducing deals and revenue. The first quarter volume in the U.S. fell 13%, to $436.56 Billion. This is almost half of all global M&A deals.
M&A revenues fall as Trump pursues his tariffs. Global deal activity is disappointing
The global trade war started by U.S. president Donald Trump, and the subsequent market turmoil, has shattered bankers' expectations for a strong start to Wall Street deals in 2018. Dealogic data for the first quarter showed that mergers and purchases volume increased 12.6% from the year-ago period to $984.38 Billion. The Asia Pacific region was largely responsible for this, where three state-run deals announced on Sunday by China and a port deal driven by Trump nearly doubled the M&A volume compared to last year. Worldwide, banks are reducing deals and revenue. The first quarter volume in the U.S. fell 13%, to $436.56 Billion. This is almost half of all global M&A deals.
German power prices are boosted by mixed wind signals
German spot power prices for Tuesday were more than twice as high as the French equivalent contract at the start of trading on Monday. This is because wind power supplies are down in Germany, but increasing in France. Demand in the entire region has also increased. By 848 GMT on Tuesday, the German baseload electricity for that day was priced at 97.50 euro ($105.58). The French power for that same day was priced at 45 euros/MWh. On Friday, neither contract was traded for delivery on Monday. Florine Enengl, LSEG analyst, says that Germany will be a net exporter of goods on Tuesday except for a couple hours in the morning or evening.
The prize is worth billions of dollars, but winning it is the key: Russell
Decarbonising steel is one of the biggest challenges to meeting climate goals. However, it could be extremely profitable for those companies and governments willing to take on the risk. Steel value chain is responsible for 7 to 9% global carbon emissions. It is the biggest industrial contributor, and therefore a primary target for many countries' and companies' goals for net-zero in 2050. About 80% of the steel emissions are caused by one single process. This is the removal of oxygen and other impurities from iron ore to produce pig iron, or crude iron. The process now requires vast amounts of coal.
Can Trump's drive for critical minerals pass the test of copper? Andy Home
The executive order issued by U.S. president Donald Trump on increasing domestic mineral production is designed to cut through the mine permit maze in the United States. According to S&P Global, it takes on average nearly 29 years to bring a new mine from discovery to production. This is the second longest lead time in the entire world, after Zambia. The U.S. Government is uniquely qualified to address the problem of granting permits on federal land. The Joe Biden administration had a difficult time reconciling its desire to produce more "green metals" for the energy shift with its environmental and socio-political credentials. Trump is not averse to such criticism.
Nigeria’s Refining Revolution is Reshaping West Africa’s Energy Landscape
The launch of the Dangote Refinery near the Port of Lagos presents an exciting opportunity to transform the energy and shipping markets in West Africa. And it stands to boost Nigeria’s role as an influential player in the global oil industry, fostering economic growth and regional development.Nigeria’s standing in the global energy landscape is getting a boost with domestic refining capacity expanding in 2025. The Dangote Refinery near Lagos presents a transformative opportunity for Nigeria’s economy and is expected to reshape global tanker routes and trade flows.The country has long been a leading exporter of crude oil, taking advantage of its abundant natural reserves.
The drilling of the offshore gas project in Romanian Black Sea has begun.
On Tuesday, the owners of Romania's Neptun Deep offshore project announced that drilling had begun in the Black Sea. This could lead to the production of one the EU's biggest gas deposits in 2027, which would ease the transition from Russian gas. Neptun Deep is jointly owned by the oil and gas company OMV Petrom, and Romania's Romgaz. It holds approximately 100 billion cubic metres of recoverable gas. OMV Petrom, a majority-owned company of Austria's OMV, is the largest shareholder in Neptun Deep. Neptun Deep is expected to double Romania's production of gas and turn it into a net-exporter…
South Korea hosts Alaska Governor, energy team amid talks of gas pipeline
Alaskan state officials, including the governor, and energy officials will visit South Korea Tuesday amid expectations that talks with U.S. ally countries in Asia can revive a natural gas project that has been stalled. The main U.S. Business lobby in Seoul announced that the delegation of Governor Mike Dunleavy will include representatives from the Glanfarne Group, which is a partner on the project to transport natural gas from Alaska's remote northern region via a $44-billion pipeline, and the state agency for gas. It said that the officials will meet with senior South Korean officials…
Indonesia Minister says other countries will not follow U.S. withdrawal from JETP Energy Transition Funding
A senior Indonesian Minister said that the United States' decision not to continue with the Just Energy Transition Partnership (a commitment of developed countries to fund energy transition) will have no impact on the commitments made by the other partners. JETP, a global financing initiative that brings together rich nations with lenders from around the world to assist poorer countries adopt cleaner energy sources, has allocated $20 billion for Indonesia to reduce its emissions. Earlier this week, the U.S. announced that it was withdrawing from its JETP agreements with Indonesia and South Africa. The U.S. commitment to Indonesia is over $2 billion.
Palmetto slips with a second consecutive weekly loss
Palm oil ended lower on Friday, and recorded a second consecutive weekly loss. This was due to a decline in Chicago soyoil and the persistently slow performance of Malaysian palm oil exports. The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange lost 37 ringgit or 0.84% to 4,376 Ringgit ($990.27). The contract has lost 4.37% in the last week. Anilkumar bagani, Sunvin Group's head of research, said that the futures traded sideways with prices opening lower. This was due to the weakness in Chicago soybean futures as well as a slowdown in Malaysian palm oil. Both countries are among the top palm oil importers in the world.
VEGOILS - Palm up in hopes of better demand, but second consecutive weekly loss
Palm oil prices rose on Friday, on the hope of improved demand from India and China. However, they were still heading for their second consecutive weekly loss because of weakness in Chicago soyoil contracts and Malaysian palm oil exports that have been slowing down. By midday, the benchmark contract for palm oil delivery in June on the Bursa Derivatives Market gained 5 ringgit or 0.11% to 4,418 Ringgit ($999.32). This week, the contract has fallen by 3.45%. Anilkumar bagani, Sunvin Group's head of research, said that the futures traded sideways with prices opening lower. This was due to the weakness in Chicago soybean futures as well as a slowdown in Malaysian palm oil.
Russell: OPEC and IEA are focused on China's oil demand but it is the crude imports that matter.
What is more important to the crude oil market? Which is more important: the growth forecasts by major agencies of Chinese oil demand or the actual weakness of imports? The International Energy Agency (IEA), as well as the Organization of Petroleum Exporting Countries, (OPEC), both talk about the demand for oil when they forecast the future of the oil industry in China, the largest crude importer of the world. It is a practice that has been around for a while and is not challenged by the market. There is a disconnect in the fact that China's oil exports are actually declining.
Russell: OPEC and IEA are focused on China's oil demand but it is the crude imports that matter.
What is more important to the crude oil market? Which is more important: the growth forecasts by major agencies of Chinese oil demand or the actual weakness of imports? The International Energy Agency (IEA), as well as the Organization of Petroleum Exporting Countries, (OPEC), both talk about the demand for oil when they forecast the future of the oil industry in China, the largest crude importer of the world. It is a practice that has been around for a while and is not challenged by the market. There is a disconnect in the fact that China's oil exports are actually declining.
Ukraine purchases US LNG from Poland's Orlen
Naftogaz, the state-owned energy company in Ukraine, announced on Tuesday that it had purchased 100 million cubic meters (mcm), of U.S. LNG. This month, a senior Ukrainian energy official said that Ukraine could import large volumes U.S. Gas this year via terminals located in Germany, Greece and Lithuania. The fuel will be a shipment from the United States. "After regasification, gas will be transported from Poland to Ukraine," Naftogaz stated regarding the latest agreement, adding that the gas is due to arrive in early April. The U.S. has been the largest LNG exporter in the world and has played an important role in supplying Europe ever since Russia invaded Ukraine in 2022…
USTDA: US to invest in energy projects abroad to boost exports
Thomas Hardy (Acting Director of the U.S. Trade and Development Agency, USTDA) said that the U.S. Government is interested in investing in energy projects across Africa, Latin America and Asia, which could lead to increased U.S. exports. He said that the USTDA met with government and energy company representatives in Latin America and Africa, as well as in the Indo-Pacific region, to identify investment opportunities in order to promote U.S. businesses and create jobs. Hardy stated that the USTDA was subject to the Agency Pause and Review by the Department of Government Efficiency…
Argentine workers strike, halting soy crushing factories
The CIARA industry association reported that on Thursday, activity was halted in Argentina's soy-processing plants as the oilseed workers union SOEA began a strike to protest layoffs and the actions of the national security forces. The strike began late Wednesday night after members of Argentina's Naval Prefecture interfered with a demonstration by biodiesel producer Explora SA, in the Rosario area, a major agribusiness center. The Federacion Aceitera, a union with a smaller presence in Argentine oilseeds plants, joined the strike at the world's biggest exporter of soy oil and meal.
Spain does not see any risk in increasing its reliance on U.S. Liquefied Gas
Sara Aagesen, Spanish Energy Minister, said that she saw no risk in Europe’s growing dependence on US liquefied gas despite President Donald Trump’s threats to escalate the global trade war. She said that imports of U.S. natural gas had grown significantly, but the U.S. She told reporters in Madrid that "American gas plays a crucial role but there are other (exporting states) such as Qatar and diversification." Europe must still think about its future autonomy with less imported natural gas and more renewable energies. Spain is now the leading re-exporter in the area of liquefied natural gas via seaborne transport.
Indonesia's PGN uses LNG allocated for export to meet domestic demand
The chief executive of Perusahaan Gas Negara, a unit within the state-owned Indonesian oil and gas company Pertamina said that it would buy certain LNG cargoes contracted for export in order to meet domestic demand. Arief Setiawan Handoko, PGN's Chief Executive, told a parliamentary committee that the move involved cargoes from projects such as Tangguh Bontang, and Donggi Senoro. Indonesia's oil and gas regulator SKK Migas stated in January that the country, which is the seventh largest LNG exporter in the world, was trying to buy some LNG back from its export contracts, to support the domestic demand. The LNG cargoes we received were the cancellations of exports committed.
Saudi Arabia's GDP will grow by 1.3% between 2024 and 2024
Preliminary government data released on Sunday showed that Saudi Arabia's economy will grow by 1.3% in 2024. This growth is due to increased non-oil activities and government initiatives. Data released by the General Authority for Statistics revealed that non-oil activities grew by 4.3%, government activities grew by 2.6% and oil activities decreased by 4.5%. According to government estimates, the fourth quarter GDP of the Kingdom increased by 4.5% compared to last year. Low oil prices will continue to affect government revenues, resulting in a slowdown in growth in the world's largest oil exporter.
Hungary turns to Romania for help in diversifying its energy sources
Hungary wants to expand its gas sector cooperation with Romania to diversify energy sources. Their respective companies are already in negotiations for an agreement. Szijjarto stated that Hungary is keen to work with Romania in energy matters as Romania will soon become a net gas exporter as a result of a new offshore field starting production. In a few weeks, Romania could begin drilling at the Neptun Deep field, which is one of the most important gas deposits in the European Union. This will allow it to double its production and possibly become a net gas exporter. Szijjarto said the interconnector was used last year to trade a total amount of 1.8 billion cubic meters.
