2025-08-25 12:47
Alert issued outside water treaty suspended by India in April Deadly floods kill 60 in Indian Kashmir in August, hundreds across Pakistan Pakistan fears surge in Sutlej, Ravi, Chenab rivers due to rains and potential Indian releases NEW DELHI/ISLAMABAD, Aug 25 (Reuters) - India has shared a warning on possible cross-border flooding with neighbour Pakistan, Pakistani officials and a source in New Delhi said on Monday, as the arch enemies grapple with deadly floods and relentless monsoon rains. The information-sharing has come as a surprise because New Delhi put a decades-old treaty with Islamabad on water access in "abeyance" in April after linking a deadly attack on Hindu tourists in Indian Kashmir to Pakistan. Islamabad denied any involvement. The tensions escalated in May to the worst military clash between the nuclear-armed rivals in decades. Sign up here. India's high commission in Islamabad shared the warning on Sunday with Pakistan's foreign ministry on "humanitarian grounds" and not under the 1960 Indus Waters Treaty, the Indian source said, following heavy rains in the Jammu and Kashmir region bordering Pakistan. The source, citing government rules, declined to be named. India's foreign ministry did not respond to a request for comment. Pakistan's foreign ministry said the warning was issued through diplomatic channels "rather than through the Indus Waters Commission as required under the Indus Waters Treaty". This month floods in India's northern territory of Jammu and Kashmir have killed at least 60 people and nearly 400 more in northwest Pakistan. In total, the floods have killed 799 people in Pakistan since the monsoon started in late June, Pakistan's National Disaster Management Authority said, warning of more heavy rain until September 10. Mazhar Hussain, a disaster management official in the Pakistani province of Punjab, said the information shared by India included a warning about a possible surge in the Tawi river, which becomes the Sutlej when it crosses into Pakistan. "It has not indicated the scale of water but has warned about high flooding in the river," Hussain said. "Moreover, heavy rains across the border have filled the Indian dams, which would force India to release water. Heavy rains in Pakistan and the water released by India would cause high floods in Sutlej, Ravi, and Chenab in Punjab." WATER SUPPLY Under the 1960 treaty, three rivers that flow westwards from India were awarded to Pakistan and three eastern-flowing rivers were granted to India. Pakistan fears India could choke its main water supply, putting at risk most of its agriculture and hydro-power. In its statement on Monday, Pakistan's foreign ministry reiterated its call on India to comply with all provisions of the Indus Waters Treaty. "India’s unilateral declaration to hold the Treaty in abeyance constitutes a serious violation of international law and could have significant negative consequences for peace and stability in South Asia." https://www.reuters.com/sustainability/land-use-biodiversity/india-warns-foe-pakistan-potential-flooding-both-battle-torrential-rains-2025-08-25/
2025-08-25 12:37
Orsted shares drop 17% after US halts wind farm project Orsted's project was 80% complete Orsted plans $9.4 billion rights issue despite setback Denmark's strained US relations may hinder diplomatic efforts Governors criticize suspension, pledge to reverse order COPENHAGEN, Aug 25 (Reuters) - Shares in Orsted (ORSTED.CO) , opens new tab plunged 17% on Monday after the U.S. halted the Danish company's Revolution Wind project off Rhode Island amid President Donald Trump’s pushback on renewable energy investments. Orsted, the world's biggest offshore wind farm developer, has already faced mounting challenges, including rising costs, higher interest rates, and supply chain disruptions, leading to delays and cancellations in the U.S. and other markets. The company's market value has plummeted 87% since its January 2021 peak. Sign up here. The U.S. Bureau of Ocean Energy Management (BOEM) issued a work-stop order late on Friday for the $1.5 billion Revolution Wind project, which was 80% complete, with 45 out of 65 turbines installed. The wind farm was expected to supply electricity to 350,000 homes in Rhode Island and Connecticut starting next year. It was BOEM's second major suspension of an offshore wind project this year, following its halt of Norwegian energy firm Equinor's (EQNR.OL) , opens new tab Empire Wind 1 project off New York in April. Trump has repeatedly criticised wind energy as costly and unreliable, suspending new offshore wind leases pending environmental and economic reviews. Despite the setback, Orsted, which is 50.1% owned by the Danish state, reiterated plans for a $9.4 billion emergency announced earlier this month, signalling it remains committed to its U.S. projects. The rights issue is intended to strengthen the company's capital structure amid "material adverse developments in the U.S. offshore wind market." The company also recently cancelled the partial divestment of its Sunrise Wind project off New York. The Danish finance ministry, which supports the rights issue, said in an emailed statement that the work-stop order was within the expected risk profile underpinning its participation in the capital raise. Orsted's shares, already down 30% since the rights issue was announced on August 11, hit a record low of 173.4 Danish crowns ($27.15) and were trading 15.9% lower at 180 crowns at 1158 GMT on Monday. Analysts said the suspension of Revolution Wind could be reversed, citing Equinor's Empire Wind 1 project, which resumed operations after diplomatic efforts by Norway's government. "The most likely scenario is that this will be solved in Orsted's favour, either with political help or in courtrooms," Sydbank analyst Jacob Pedersen said. However, Denmark's strained relations with the U.S. following Trump's comments about wanting the U.S. to take over Greenland could complicate diplomatic efforts. On Friday, Denmark's Foreign Minister Lars Lokke Rasmussen signed an agreement in California to strengthen ties with Governor Gavin Newsom, who has openly criticized Trump. Opposition lawmakers in Denmark questioned the government's support for Orsted's rights issue. Lars-Christian Brask, foreign policy spokesperson for The Liberal Alliance, suggested diplomatic efforts should be pursued but noted legal proceedings might offer the best chance for resolution. "There's always a risk that Greenland will come up in the dialogue if the government goes directly to Trump," he told Reuters. Equinor, which holds a 10% stake in Orsted, declined to comment but previously stated it would carefully evaluate the rights issue. AlphaValue analyst Pierre-Alexandre Ramondenc said the U.S. administration's move could undermine Orsted's rights issue, calling the decision "political hostage-taking" given the project's advanced stage. Governors Ned Lamont of Connecticut and Dan McKee of Rhode Island criticized the suspension in a joint statement, pledging to explore "every avenue" to reverse the order. "This political move by the Trump administration will drive up the cost of electricity bills and contradicts everything the administration has told us," they said. ($1 = 6.3869 Danish crowns) https://www.reuters.com/sustainability/climate-energy/orsted-shares-sink-record-lows-us-halts-wind-farm-off-rhode-island-2025-08-25/
2025-08-25 12:36
BERLIN, Aug 25 (Reuters) - Germany's Luxcara said on Monday it may switch to Siemens Gamesa turbines for its 300-megawatt Waterkant wind farm, potentially scrapping a deal with a Chinese company that had drawn political scrutiny and criticism from European turbine manufacturers. Hamburg-based asset manager Luxcara said it had reserved capacity for 19 Siemens Gamesa turbines, a subsidiary of Germany's Siemens Energy, using the same type already secured for its neighbouring 1.5-gigawatt Waterekke project - its largest offshore wind project to date in the German North Sea. Sign up here. They would replace the turbines that China's Ming Yang Smart Energy was due to produce for the project under a deal announced last year. Luxcara said it was considering the change to ensure economic efficiency by bundling procurement processes and contracts, conducting joint installation campaigns and coordinating operations for both projects. "This would allow us to align the development, construction, and operation of both projects even more closely," Holger Matthiesen, managing director of both project companies, said in a statement. Waterkant, to be built in Germany's North Sea, is scheduled to connect to the grid by the end of 2028 and is expected to generate enough power for about 400,000 households. Dispatching Chinese-made turbines for the project drew close scrutiny by Germany's former economy minister and criticism from Europe's wind turbine industry, which said the deal would give China access to critical infrastructure. The Ming Yang deal came after the European Commission last year launched a review of possible market distortions by Chinese wind turbine makers in five European Union countries, a move that China called "discriminatory". Luxcara said it had informed the relevant authorities and project partners about the possible switch in turbine supplier. It did not say whether the political and regulatory scrutiny played a role in that decision. Siemens Gamesa, Ming Yang Smart Energy and Germany's Economy Ministry did not immediately respond to requests for comment. https://www.reuters.com/sustainability/climate-energy/germanys-luxcara-may-drop-chinese-turbine-deal-north-sea-wind-farm-2025-08-25/
2025-08-25 12:32
Deal represents 20% premium to JDE Peet's Friday's close KDP plans to split coffee from beverages, form two listed companies after transaction JDE Peet's shares up 18%, KDP's Frankfurt shares down 1.3% New coffee unit would rival Nestle's coffee business Aug 25 (Reuters) - U.S. soft drinks giant Keurig Dr Pepper (KDP.O) , opens new tab is set to create a global coffee giant to rival market leader Nestle (NESN.S) , opens new tab with an $18 billion takeover of JDE Peet's (JDEP.AS) , opens new tab, Europe's largest acquisition in more than two years. The deal, announced on Monday and offering a 20% premium to JDE Peet's closing market price on Friday, proposes splitting the merged entity’s coffee operations and other beverage businesses into two separate publicly U.S.-listed companies, as the Dutch company would be delisted from the Amsterdam stock exchange. Sign up here. The transaction, which comes as the global trade war intensifies corporate action in the consumer goods sector, aims to create $400 million in annual cost savings, allowing the new entities to better fare against rising U.S. tariffs against coffee-producing nations and other trade rivals. "The new Coffee entity will be somewhat similar in size to the coffee business of Nestlé... The two would each have a market share of around 20% in the global CPG (coffee and tea consumer packaged goods) coffee market" ING analysts Maxime Stranart told Reuters. The deal comes amid record high prices for global coffee, driven by droughts in top producers Brazil and Vietnam and following U.S. President Donald Trump's decision to impose 50% duties on beans imported from Brazil. "Rolling the two coffee businesses together makes sense, reducing the European-centric and commoditised nature of most of JDE Peet’s business, and giving Keurig international exposure," said Jon Cox of Kepler Cheuvreux. POST-CLOSE SEPARATION The transaction announced on Monday would partly reverse a 2018 merger that created Keurig Dr Pepper by combining Keurig Green Mountain and Dr Pepper Snapple, allowing investors to focus on one single segment rather than a bundle of diverse products. The new entities, called Beverage Co., and Global Coffee Co., will be led by Keurig's CEO Cofer and CFO Sudhanshu Priyadarshi, respectively. Keurig said that Global Coffee Co., with around $16 billion in combined annual net sales, will be well positioned to profit from the world's $400 billion coffee market, while Beverage Co., with more than $11 billion in yearly net sales, will focus on North America's $300 billion refreshment beverage market. Shares of JDE Peet's surged 18% in early trading, marking their strongest day on record, while Frankfurt-listed shares of Keurig Dr Pepper fell 1.3% as of 1057 GMT. JDE Peet's, with brands including Jacobs, L’Or, Tassimo and Douwe Egberts, was valued at 12.76 billion euros at Friday's market close, while Keurig's worth stood at around $48 billion, according to LSEG data. Its shares have risen nearly 10% this year on strong beverage sales, while the Dutch coffee maker's almost doubled, supported by stable revenues and focus shift towards shareholders' remuneration. JDE Peet's is majority-owned by Germany’s JAB, which also holds a significant minority stake in Keurig Dr Pepper, according to LSEG data. ($1 = 0.8544 euros) https://www.reuters.com/business/keurig-dr-pepper-takes-shot-nestle-with-18-bln-takeover-dutch-coffee-giant-jde-2025-08-25/
2025-08-25 12:09
BEIJING, Aug 25 (Reuters) - China's CMOC GROUP (603993.SS) , opens new tab said on Monday that it was looking for more merger and acquisition opportunities. "We are actively finding and negotiating projects in resource rich countries and regions including Africa and South America," Liu Jianfeng, CMOC's chairman said at an earnings briefing, without indicating any targets. Sign up here. CMOC acquired , opens new tab Canada-listed Lumina Gold in the first half of this year. CMOC is also considering expanding its molybdenum and tungsten assets and is looking for the right time to do this, Liu added. The company reported a 60.1% rise in first-half net profit late on Friday, sending its shares 8.7% higher to 12.08 yuan on Monday. https://www.reuters.com/markets/commodities/chinas-cmoc-eyes-more-ma-opportunities-africa-south-america-2025-08-25/
2025-08-25 12:05
Powell's Jackson Hole speech raised prospect of September cut Odds of Fed cut next month at 85% Euro expected to extend 13% year-to-date gain as Fed cuts near Focus on US inflation, labour market data MUMBAI, Aug 25 (Reuters) - The dollar nudged higher against major currencies on Monday, stabilising after a steep fall last week that followed remarks from Federal Reserve Chair Jerome Powell that raised expectations of a rate cut next month. The euro declined 0.2% to $1.1693, pulling back from a four-week high of $1.174225 touched on Friday. Sterling and the Swiss franc were each down 0.1%. Sign up here. Major brokerages, including Barclays, BNP Paribas and Deutsche Bank, expect a 25-basis-point Fed rate cut in September following Powell's remarks. Expectations of policy easing and a slowing U.S. economy, alongside lingering worries about the U.S. fiscal position, are likely to exert pressure on the U.S. dollar, said Samy Chaar, chief economist at Lombard Odier. Traders price in 85% odds of a quarter-point cut on September 17, up from around 70% before Powell delivered his speech, according to CME's FedWatch tool. Measured against a basket of six major currencies , the dollar has weakened by more than 9.5% so far this year. The single currency has been the lead gainer in the basket with a near 13% rise on the year. Chaar expects the euro to strengthen to about $1.20-$1.22 over the next six-to-12 months. Meanwhile, eurozone bond yields moved higher on Monday, reversing a fall from late last week as traders reassessed their expectations for the U.S. Federal Reserve and the impact on Europe. They also processed data showing an uptick in German business morale. Germany's 10-year bond yield, the benchmark for the euro zone, rose 5 basis points to 2.77%, nearing a five-month peak of 2.787% hit last week. U.S. Treasury yields were also slightly higher across the curve as traders calibrated positioning. The two-year Treasury yield , especially sensitive to interest rate expectations, was last up 2 basis points at 3.71%. Apart from the Fed's policy path, investors are likely to stay focused on U.S. President Donald Trump's attacks on Powell and other Fed policymakers, which have raised concerns about the central bank's independence. "Renewed efforts to reshape the Fed present a potential challenge to longer maturities," analysts at Goldman Sachs said in a note. The 30-year U.S. Treasury yield was last at 4.9050%. Upcoming data points include the Fed's preferred inflation gauge, the PCE deflator, on Friday, and monthly payrolls figures for August, due a week later. Elsewhere, the Chinese yuan leapt to the strongest level in a month, boosted by broad weakness in the dollar. In cryptocurrencies, ether fell 5% on Monday after touching a record high of $4,955.14 over the weekend. Bitcoin was down about 1.5% to $111,197. https://www.reuters.com/world/africa/dollar-edges-higher-after-slump-powells-dovish-surprise-2025-08-25/
