2025-08-15 07:42
HELSINKI, Aug 15 (Reuters) - Finnish utility Fortum (FORTUM.HE) , opens new tab on Friday posted a bigger than expected drop in second-quarter profit amid a decline in electricity generation from its hydro and nuclear plants, and warned of lower power output for the rest of year. Fortum's April-June comparable operating profit fell to 115 million euros ($134.21 million) from 233 million a year ago, missing a mean estimate of 133 million in a poll provided by the company. Sign up here. Fortum's shares fell to a three-month low and were 3.4% lower by 0731 GMT. Earnings were affected by lower volumes and prices in its Power Generation unit, with hydroelectric and nuclear output in the second quarter down 2.2 terawatt hours (TWh) year on year, CEO Markus Rauramo said in a statement. This was mainly due to lower hydro inflows and an extended outage at the Oskarshamn nuclear plant in Sweden, which Fortum owns together with Germany's Uniper. Hydropower generation volumes fell by 31% year on year and nuclear generation by 11% in the second quarter, the earnings report showed. "In 2025, the total generation volumes are expected to be clearly below the normal level," Fortum warned, pegging nuclear output to drop by 2.9 TWh. Of this, 1.3 TWh were already realised in the first half of 2025 with most of the expected future shortcomings seen in the third quarter, it said. Annual hydropower volumes this year will be below that of a normal year, when output typically reaches 20-20.5 TWh, it added. The demand outlook is also uncertain, with several power-intensive hydrogen projects in the region cancelled or delayed, but demand from data centres rising. "Uncertainty in the operating environment has remained strong due to ongoing geopolitical conflicts and U.S. tariff plans and may pose challenges to major industrial investments in the Nordics," Rauramo said. ($1 = 0.8569 euros) https://www.reuters.com/business/energy/finnish-utility-fortum-warns-lower-power-output-profit-misses-forecast-2025-08-15/
2025-08-15 07:28
GQEBERHA, South Africa, Aug 15 (Reuters) - South Africa's government will release the preliminary findings of its review of steel tariffs next week, moving a step closer to protecting the local industry from increased imports. The review was initiated by the International Trade Administration Commission (ITAC) in March, following a ministerial directive. Sign up here. South Africa's steel industry faces numerous challenges, including an influx of low-priced imports due to overcapacity, primarily in China. U.S. President Donald Trump's tariffs have also disrupted trade flows this year, while depressed demand and energy and logistics challenges have added to the problems in South Africa. "We've got a gazette coming next week. That gazette will include preliminary findings of the review," ITAC Chief Commissioner Ayabonga Cawe told Reuters on Thursday on the sidelines of an auto parts conference. The review comes as the government is locked in talks with ArcelorMittal South Africa (ACLJ.J) , opens new tab, which has said it plans to close its loss-making long steel operations that are crucial for the local automotive, mining equipment and construction industries. Among its complaints is a flood of cheap imported steel from China. Cawe said ITAC had received around 150 responses for the review. More than 600 tariff codes are under review. ITAC needs to determine whether its various current steel duties are providing appropriate protection, whether more steel products need to be under import control and whether to declare an emergency to trigger broader safeguard measures. https://www.reuters.com/sustainability/boards-policy-regulation/south-africa-nears-decision-steel-tariffs-amid-import-influx-2025-08-15/
2025-08-15 07:10
Delegates fail to reach consensus on plastic pollution treaty Oil-producing nations had opposed ambitious deal, delegates say Path forward for future negotiations unclear GENEVA, Aug 15 (Reuters) - Delegates discussing the world's first legally binding treaty to tackle plastic pollution failed to reach consensus, diplomats said on Friday, voicing disappointment and even rage that the 10-day talks produced no deal. Delegates had been seeking a breakthrough in the deadlocked United Nations' talks in Geneva, but states pushing for an ambitious treaty said that the latest text released in the early hours of Friday failed to meet their expectations. Sign up here. French ecology minister Agnes Pannier-Runacher said in the talks' closing session that she was "enraged because despite genuine efforts by many, and real progress in discussions, no tangible results have been obtained." In an apparent reference to oil-producing nations, Colombia's delegate Haendel Rodriguez said a deal had been "blocked by a small number of states who simply did not want an agreement." The path forward for the negotiations is uncertain. Some countries like Britain said that negotiations should resume but others described a broken process. "It is very clear that the current process will not work," South Africa's delegate said. More than 1,000 delegates have gathered in Geneva for the sixth round of talks, after a meeting of the Intergovernmental Negotiating Committee (INC) in South Korea late last year ended without a deal. Negotiations had gone into overtime on Thursday as countries scrambled to bridge deep divisions over the extent of future curbs. Diplomats and climate advocates had warned earlier this month that efforts by the European Union and small island states to cap virgin plastic production - fuelled by petroleum, coal and gas - are threatened by opposition from petrochemical-producing countries and the U.S. under President Donald Trump. “Of course we cannot hide that it is tragic and deeply disappointing to see some countries trying to block an agreement," said Danish environment minister Magnus Heunicke on behalf of the EU. He said the treaty was necessary to tackle "one of the biggest pollution problems we have on earth" and promised more efforts to reach a deal. “We will keep on working until we have a treaty that will help us solve the problem,” he told reporters. The most divisive issues include capping production, managing plastic products and chemicals of concern, and financing to help developing countries implement the treaty. https://www.reuters.com/sustainability/climate-energy/plastic-pollution-treaty-stalled-geneva-talks-end-without-deal-2025-08-15/
2025-08-15 06:53
3.7 million hectares of palm plantations unlawful, says Prabowo Prabowo warns of asset confiscation for law-violating companies Large rice mills to require government permits 1,063 illegal mining operations reported across Indonesia: President JAKARTA, Aug 15 (Reuters) - Indonesia will launch a broader crackdown on the illegal exploitation of natural resources after a survey found that palm plantations on 3.7 million hectares (14,300 square miles) were operating in violation of the law, President Prabowo Subianto said on Friday. The area is almost the size of Switzerland. Sign up here. Prabowo added that a total of 5 million hectares of palm plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors. He made the comments in his first state of the nation speech, delivered as the country - the world's largest producer and exporter of palm oil - celebrates 80 years of independence this weekend. Prabowo won a presidential election last year, and took power in October. "We will ensure that the Indonesian people will not fall victim to greedy economics," Prabowo, speaking in parliament, said, adding that the government had already seized 3.1 million hectares of illegal palm plantations with the help of the military. "We have used the military to accompany the teams that took over the plantations because there often is resistance," he said. Critics have expressed concern about the growing role of the military in civilian life in the country under Prabowo. In his speech, Prabowo, a former special forces commander known for his aggressive operational tactics, also warned that the state could confiscate assets of companies that "manipulate and violate" Indonesia's laws. He said his government was also planning a crackdown on mining, adding that authorities had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago. He did not specify what type of mines or the commodities they were extracting. Indonesian Palm Oil Association (GAPKI) chief Eddy Martono questioned the source of Prabowo's figures and said his organisation had not been consulted on the 5 million hectares number. On the 3.7 million hectares of plantations found to be operating unlawfully, he said companies and cooperatives running them had been asked to clarify their status and some had permits such as land-use concessions and ownership certificates. "It will create a negative image internationally, suggesting that Indonesian palm oil is encroaching on forests," he said. There was no immediate response from the national association of miners to a Reuters request for comment on the president's assertions. Indonesia is also the world's biggest producer of nickel and a major producer of thermal coal, tin, and copper. Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia. Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said. The main stock index (.JKSE) , opens new tab touched its all-time high, rising 1.1%, as Prabowo started his speech, but then retreated to trade 0.4% down by the close. The rupiah , which had strengthened in recent days, also slipped 0.3%. Later on Friday, Prabowo unveiled the government's budget estimates for the next fiscal year. https://www.reuters.com/business/environment/indonesia-crack-down-illegal-exploitation-resources-president-says-2025-08-15/
2025-08-15 06:47
Aug 15 (Reuters) - There seems to be very little standing in the way of stock-market bulls right now, but a landmark U.S./Russia summit in Alaska, a central bank shin-dig in Wyoming and elections in Bolivia, among other things, may imbue them with some caution. Here's your week ahead from Rocky Swift in Tokyo; Suzanne McGee and Rodrigo Campos in New York and Dhara Ranasinghe and Naomi Rovnick in London. Sign up here. 1/ BEGINNING OF THE END? Investors will closely watch U.S. President Donald Trump's meeting with Russia's Vladimir Putin on Friday looking to end the war in Ukraine. There's caution over the longevity of any agreement and Europe's leaders are fearful that the U.S. and Russia could take far-reaching decisions that sidelines them, or seeks to coerce Ukraine into an unfavourable deal. This backdrop means stocks, especially in Europe, should benefit if the Trump-Putin Alaska summit receives a broad thumbs-up. The euro and Ukraine's battered bonds should also gain. And a lasting end to the three-year old conflict could be a tailwind to global disinflation (ex-U.S. that is). Yet, the devil is in the details and Europe is unlikely to embrace Russia, even if peace returns. That means the one-way march higher in defense stocks may ebb, but won't be seriously disrupted. 2/ JACKSON HOLE-IN-ONE It's officially summer in financial markets. Q2 earnings are out, the next crop of major economic data isn't until early September and many money managers and traders are heading out to the beaches for a break. There is just one thing to worry about: Jackson Hole. The Wyoming resort plays host to the annual central bankers' schmoozefest and will include Federal Reserve Chair Jerome Powell among its attendees. The conference takes place as stocks hover near record levels, and Trump continues to take pot-shots at Powell. Jackson Hole has the potential to be disruptive. Any hint from Powell that a September rate cut isn't happening and markets could sell off hard, while an overly upbeat tone from the Fed chair may feed more euphoria. “And bull markets die in euphoria,” says Steve Sosnick, strategist at trading firm IBKR. 3/ STAGFLATION NATION As global stocks rally, everything from weak U.S. jobs data to trouble at the top of the Federal Reserve has been a reason to bet on U.S. rate cuts, meaning it's not been profitable to be bearish. About 60% of global investors surveyed by BofA think U.S. stagflation could be the dominant global market regime within three months. A basket of stocks that do well in stagflationary environments, where growth slows as inflation accelerates, has been outpaced by Wall Street's benchmark S&P 500 index (.SPX) , opens new tab this year, Societe Generale strategists reckon. Next week's business surveys, which can show economic trends months before they appear in official data, will offer more clues about whether U.S. tariffs are driving the world's largest towards stagflation. SocGen, however, expects Fed rate cuts to inflate a stock-market bubble that might not pop until at least next year. 4/ OUTLIER With nearly every central bank looking to cut rates to give their economies a soft landing, the Bank of Japan stands apart in its mission to raise borrowing costs - in theory. So, next Friday's inflation data will be in focus for any sign of when the BOJ's long-pledged tightening cycle will resume. The previous reading of the core consumer price index (CPI) showed an annual 3.3% increase in June, remaining above the BOJ's 2% target for over three years. No bank went harder or longer with quantitative easing than the BOJ. But the long road towards normalisation has been complicated by uncertainty over U.S. tariffs and concerns about whether Japan was seeing the right kind of price increases. BOJ Governor Kazuo Ueda has justified slower rate hikes because "underlying inflation," which focuses on domestic demand and wages, remains below the central bank's target. 5/ PICK ME Bolivia this weekend kicks off a string of national and local elections across Latin America that extends into late next year, when behemoth Brazil votes to elect a new (or sitting) president. After 2022's "pink tide" brought left-leaning governments to power in Chile, Colombia and Brazil, investors want to see if voters will return to more market-friendly right-wingers. Ahead of Sunday's Bolivian presidential election, the country's bonds have rallied on hopes that political change could bring the economy back from the brink. A second round, if needed, comes in October. Argentina's local elections in September and October are seen as a gauge of the popularity of President Javier Milei's radical economic transformation. Chile votes for a president in November, while next year Colombia elects its congress in March and president in May. Peru holds a presidential election in April and Brazil does so in October 2026. (This story has been refiled to add missing tag 'Take Five' in the headline) https://www.reuters.com/world/china/global-markets-themes-corrected-graphic-2025-08-15/
2025-08-15 06:41
SRINAGAR, Aug 15 (Reuters) - At least 60 people have died and more than 100 are missing, a day after sudden, heavy rain caused floods and landslides in Indian Kashmir, authorities and local media said on Friday, the second such disaster in the Himalayas in a little over a week. Gushing mudslides and floodwaters inundated the village of Chasoti in Indian Kashmir on Thursday, washing away pilgrims who had gathered for lunch before trekking up the hill for a popular pilgrimage site. Sign up here. "We heard a huge sound and it was followed by a flash flood and slush. People were shouting, and some of them fell in the Chenab River. Others were buried under the debris," said Rakesh Sharma, a pilgrim who was injured. Bags, clothes and other belongings, caked in mud, lay scattered amid broken electric poles and mud on Friday, as rescue workers used shovels, ropes and crossed makeshift bridges in an attempt to extricate people out of the debris. "We were told that another 100-150 people might be buried under the debris," one rescue worker told news agency ANI. The Machail Yatra is a popular pilgrimage to the high altitude Himalayan shrine of Machail Mata, one of the manifestations of Goddess Durga, and pilgrims trek to the temple from Chasoti, where the road for vehicles ends. Thursday's incident comes a little over a week after a flood and mudslide engulfed an entire village in the Himalayan state of Uttarakhand. "Nature has been testing us. In the last few days, we have had to deal with landslides, cloudbursts and other natural calamities," Prime Minister Narendra Modi said at the start of a nearly two-hour speech on the country's 79th independence day. A cloudburst, according to the Indian Meteorological Department, is a sudden, intense downpour of over 100 mm (4 inches) of rain in just one hour that can trigger sudden floods, landslides, and devastation, especially in mountainous regions during the monsoon. https://www.reuters.com/business/environment/floods-landslides-indian-kashmir-kill-60-over-100-missing-2025-08-15/
