2025-05-28 11:44

LONDON, May 28 (Reuters) - London's Heathrow Airport responded well to a major power outage in March that forced Europe's busiest hub to shut down for almost a day, a review commissioned by the airport concluded on Wednesday. The March 21 closure of Heathrow cost airlines tens of millions of pounds and stranded hundreds of thousands of passengers. It also raised questions about the resilience of Britain's infrastructure. Sign up here. "The evidence confirms that Heathrow made the right decisions in exceptionally difficult circumstances. Whilst the disruption was significant, alternative choices on the day would not have materially changed the outcome," said the review's author, former transport minister Ruth Kelly. "The airport had contingency plans in place, and the report highlights that further planned investment in energy resilience will be key to reducing the impact of any similar events in the future." The cause of a fire at a nearby electricity substation that forced Heathrow's closure remains unknown, a separate report published earlier this month by the National Energy System Operator said. Police have said the fire was not suspicious. The outage prompted scrutiny from the government, airlines and passengers, who asked why all of Heathrow's terminals had to shut and why it took 18 hours for power to be restored. The review made 28 recommendations, including to foster better understanding between the airport and power distributor SSEN, improve the monitoring of critical safety systems and assess whether additional back-up generators could improve resilience. https://www.reuters.com/world/uk/londons-heathrow-airport-responded-well-outage-march-review-finds-2025-05-28/

2025-05-28 11:43

US banks initial steps toward crypto are likely to be tentative Large lenders are hesitant to be the first to expand into crypto More banks are keen to be fast followers after a few test cases Banks seek more clarity around AML-crypto regulations NEW YORK, May 28 (Reuters) - Big U.S. banks are holding internal discussions about expanding into cryptocurrencies as they get stronger endorsements from regulators, but initial steps will be tentative, centering on pilot programs, partnerships or limited crypto trading, according to four industry executives. Wall Street giants that had been largely blocked from many crypto activities by strict regulations are poised to grow quickly. Yet the biggest lenders are still hesitant to be the first among rivals to expand too heavily into crypto in case they fall afoul of changing rules, said the four executives, who declined to be identified since they were discussing internal business plans. Sign up here. If a major firm expands without issues, others will be fast followers to run small-scale pilot projects and weigh other business prospects, the executives said. Jamie Dimon, CEO of the largest U.S. bank, JPMorgan Chase (JPM.N) , opens new tab, ruled out getting into custody - storing crypto assets for clients - or expanding significantly even if regulations ease. "When I look at the bitcoin universe, the leverage in the system, the misuse in the system, the money laundering issues, trafficking, I'm not a fan of it," Dimon, a longtime crypto skeptic, told investors last week. "We're going to allow you to buy it, we're not going to custody it. ... I don't think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin," he added. U.S. President Donald Trump vowed to become the first "crypto president" before he took office. He has since wooed the industry's elite at the White House, promised to boost the adoption of digital assets and said he aims to create a strategic bitcoin reserve. While there are welcoming signs, banks are seeking even clearer guidelines from the government clarifying what they can do in crypto, more than half a dozen industry executives said. "The shift in the stance is encouraging for traditional lenders, but they are still approaching it with caution and viewing the changes in regulation as an opportunity to engage and not a free pass," said Dario de Martino, A&O Shearman M&A partner who works on crypto-related issues. Custody businesses to store and manage crypto assets are promising, bankers and executives said, but they have thin margins and potentially pose high risks. Most banks are likely to enter custody businesses through partnerships with existing crypto firms, sources said. Charles Schwab CEO Rick Wurster told Reuters earlier this month that the traffic lights from financial regulators were flashing "pretty green" for large firms to grow in crypto. The signals have reinforced Schwab's plans to offer spot crypto trading within a year, he said. New regulators under Trump have also signaled more bank-friendly crypto policies. The U.S. Office of the Comptroller of the Currency paved the way for lenders to engage in some crypto activities, such as custody, some stablecoin activities and participation in distributed ledger networks. The Securities and Exchange Commission also scrapped earlier accounting guidance that made it expensive for banks to deal in crypto. Bank of America (BAC.N) , opens new tab could launch stablecoins, its CEO Brian Moynihan said earlier this year, and the U.S. banking industry will embrace cryptocurrencies for payments if regulations permit them. Meanwhile, Morgan Stanley (MS.N) , opens new tab wants to work with regulators to see how it can be a middleman for crypto-related transactions, CEO Ted Pick said earlier this year. The lender is also exploring adding crypto to its e-trade platform, a source said. Some of the large banks are also exploring issuing a joint stablecoin, with the conversations in initial stages, another banking source said. U.S. brokerage firm Cantor Fitzgerald said on Tuesday it had executed the first transactions in its bitcoin financing business, for which it has earmarked an initial $2 billion. Brandon Lutnick, the company's chairman and son of U.S. Commerce Secretary Howard Lutnick, is among the executives speaking at a crypto conference in Las Vegas this week. Big banks seek more clarity around anti-money laundering rules and supervision before diving deeper into crypto. They are also asking for consistent guidelines across banking and market regulators before launching new businesses in digital assets, whose values are volatile. For now, banks are weighing their crypto prospects and running small-scale pilot programs. "While a much-improved environment, banks will continue to have concerns around anti-money laundering and regulatory compliance," said Matthew Biben, co-head of the global financial services group at law firm King & Spalding. SHIFTING LANDSCAPE Banks want to understand if they can engage in crypto lending, or if they are allowed to become market makers for digital assets, one of the banking sources said. The rules for traditional banking businesses are very well defined and there is complete clarity over what a bank is allowed to do and what is outside their ambit, similar well-defined guidelines are needed for digital assets too. The working group on crypto under David Sacks, the Trump-appointed crypto czar, has no representation from banking regulators, which needs to be amended if the big banks are allowed to play any meaningful role in the business, two banking sources said. https://www.reuters.com/sustainability/boards-policy-regulation/us-banks-tiptoe-toward-crypto-awaiting-more-green-light-regulators-2025-05-28/

2025-05-28 11:31

Full OPEC+ meeting takes place on Wednesday Eight OPEC+ members meet on Saturday to decide on July output Wednesday's meeting scheduled to begin at 1300 GMT, sources say For an EXPLAINER on OPEC+ output cuts, click here LONDON/MOSCOW, May 28 (Reuters) - OPEC+ may discuss issues around its baselines for 2027 production at its meeting on Wednesday, two delegates from the group said, while separate talks due on Saturday could agree a further accelerated oil output hike for July. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines - production levels from which each member makes cuts or increases - for the last few years. Sign up here. Baseline issues are controversial because some members such as the United Arab Emirates and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines. The 22-member group on Wednesday is likely to ask OPEC headquarters to prepare a mechanism to help establish the baseline assessment for 2027, one of the delegates said. That meeting is not expected to change output policy, OPEC+ sources have said. On Saturday, the eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels per day, the same as in May and June, the delegates said. OPEC+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members. The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire. In April, eight OPEC+ members began to unwind the group's most recent layer of output cuts, and for May and June made larger-than-expected hikes of 411,000 barrels per day. OPEC+ sources have told Reuters the eight members at their meeting on Saturday may decide on a similar 411,000 bpd output hike for July. All sources declined to be identified by name due to the sensitivity of the matter. Oil fell to a four-year low in April below $60 per barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump's tariffs raised concerns of global economic weakness. Since then it has recovered to about $65. Earlier this month, sources told Reuters that the eight countries, in addition to another 411,000 bpd output hike for July, may unwind the remainder of the most recent cut by the end of October. https://www.reuters.com/business/energy/opec-may-discuss-2027-baselines-agree-july-hike-this-week-sources-say-2025-05-28/

2025-05-28 11:28

ZURICH, May 28 (Reuters) - The Swiss government wants to resolve customs issues with the United States and has agreed a draft negotiating mandate on trade and economic matters to be sent to parliament's foreign policy committees and the cantons, it said on Wednesday. Bern does not expect an economic slump as a result of U.S. tariffs although exporters and suppliers are affected, it said. Sign up here. "Switzerland's goal is to strengthen bilateral economic relations with its most important trading partner after the EU," the government said. "Switzerland is committed to preserving and, if possible, improving market access in the USA." Switzerland has been working hard to temper the impact of U.S. President Donald Trump's tariffs policy, which initially slapped import duties of 31% on Swiss products. Both countries have agreed to accelerate trade talks, with President Karin Keller-Sutter meeting U.S. Treasury Secretary Scott Bessent earlier this month. Non-tariff measures are being discussed with the U.S., for example on simplified approval of medical devices, Bern said. Investments already promised by Swiss companies in the United States are also mentioned in the negotiating mandate, while talks will continue on other topics such as vocational training and tax issues, the government added. Switzerland has so far been spared the full impact of tariffs due to exemptions on some product categories like pharmaceuticals, but Bern said the situation was "very challenging" and that a global slowdown was dampening the economy. "However, a macroeconomic slump, such as during the COVID-19 pandemic, is not expected at present," it added. In response, the government will seek to preserve jobs by extending the time companies can receive short-time working compensation for their workers from 12 to 18 months. The government wants to help companies by improving public procurement and reducing the cost of regulations, it said. https://www.reuters.com/world/swiss-government-agreed-negotiating-mandate-tariffs-with-us-2025-05-28/

2025-05-28 11:22

NEW DELHI, May 28 (Reuters) - India's industrial output (INIP=ECI) , opens new tab grew 2.7% year-on-year in April, government data showed on Wednesday. Economists polled by Reuters were expecting a growth of 1%. Sign up here. Industrial output grew 3% in March and increased by 4% in fiscal year 2024-25. KEY NUMBERS * Manufacturing output up 3.4% in April * Electricity generation grew 1.1% in April * Mining activity fell 0.2% in April * Output of consumer durables, including cards and phones, rose 6.4% in April * Output of consumer non-durables, such as food items and toileteries, fell 1.7% in April * Capital goods output increased 20.3% in April https://www.reuters.com/world/india/indias-industrial-output-rises-27-yy-april-2025-05-28/

2025-05-28 11:19

PARIS, May 28 (Reuters) - French power group EDF will decommission the last two power producing units of the Cordemais coal plant in western France on May 31, 2027 and is studying using the site for a nuclear piping facility, the company said in a statement on Wednesday. The Cordemais coal plant is one of the last coal-fired power plants in France, where the power mix is dominated by EDF's nuclear reactors, and operates mostly during the winter when power demand for heating increases. Sign up here. The utility has begun a study for on-site construction of a nuclear piping plant which is scheduled to be commissioned at the end of 2028, and will eventually employ up to 200 people, the statement said. The company has plans to expand its nuclear fleet and is working on financing six new reactors, which a nuclear piping plant could eventually furnish. EDF in September cancelled plans to convert the coal-fired power plant to a biomass plant, as the technical and economic conditions for carrying out the conversion project were not met, the utility said. https://www.reuters.com/business/energy/frances-edf-announces-closure-date-cordemais-coal-plant-2027-2025-05-28/