2025-09-08 20:18

Focus on enhancing LNG infrastructure in Italy and the US Move aims to replace Russian gas, boost US supplies to Europe ROME, Sept 8 (Reuters) - Italy and the United States on Monday vowed to deepen energy ties including through increased exports to Italy of liquefied natural gas (LNG), as Europe continues to seek alternatives to Russian energy supplies following Moscow's invasion of Ukraine. Italian Energy Minister Gilberto Pichetto Fratin and U.S. Interior Secretary Doug Burgum, after talks in Rome, pledged to foster a "steady and secure" flow of American LNG to Europe, without committing to exact figures or timeframes. Sign up here. They said they would aim to "encourage investments in LNG import and regasification infrastructure in Italy, as well as export infrastructure in the United States, to ensure efficient and resilient supply chains." The European Union took steps to phase out imports of Russian gas and LNG, and the U.S. is set to boost its supplies as the bloc moves to end a decades-long energy relationship with Moscow which crumbled after the invasion of Ukraine in 2022. "U.S. LNG contributes to supply security thanks in part to the greater reliability of the route from the United States to Italy and Europe, compared with the geopolitical risks present on other routes," Pichetto Fratin said in a statement. A potential increase in Italian imports of American LNG was discussed in Washington in April during a meeting between Prime Minister Giorgia Meloni and U.S. President Donald Trump. https://www.reuters.com/business/energy/italy-us-agree-boost-lng-ties-infrastructure-investment-2025-09-08/

2025-09-08 20:14

Strathcona owns or controls 14.2% of MEG shares MEG board supports Cenovus offer Strathcona founder Waterous criticizes MEG's sale process Sept 8 (Reuters) - The bidding war for Canadian oil sands producer MEG Energy (MEG.TO) , opens new tab heated up on Monday as Strathcona Resources (SCR.TO) , opens new tab raised its offer, seeking to outbid larger rival Cenovus Energy (CVE.TO) , opens new tab. The battle for MEG, Canada's last large pure-play oil sands company, continues a years-long trend of domestic consolidation in the country's oil sands. The play is now mostly controlled by a handful of large Canadian companies after foreign players largely exited over the last decade. Sign up here. MEG's Christina Lake oil sands project has become a prized asset, with its long reserve life, low operating costs, and significant potential for production growth making it one of the few large-scale expansion opportunities. Strathcona said its revised offer values MEG at C$30.86 per share, above the C$27.79 valuation of Cenovus' August cash-and-stock agreement. Strathcona had proposed C$23.27 per share in its initial hostile bid in May. The new offer, which expires on October 20, gives MEG an equity value of about C$7.85 billion ($5.68 billion), according to Reuters calculations. Since 2020, Strathcona has become one of the fastest-growing oil companies in North America through a series of acquisitions. The company, backed by private equity firm Waterous Energy Fund, has been building its position in MEG, disclosing it owns or controls about 14.2% of the company's shares. It said the company will vote against the Cenovus transaction at an October 9 shareholder meeting, where two-thirds approval is required. "We're not playing just to defeat Cenovus, we're here to buy the business," Strathcona founder and Executive Chair Adam Waterous said in an interview on Monday. MEG's board has backed Cenovus' offer, which would combine its Christina Lake operations with Cenovus' adjacent assets, creating one of Canada's largest oil sands producers with output of more than 720,000 barrels per day. Cenovus shareholders had reaped nearly C$3.9 billion in market value gains after the deal was unveiled last month, while MEG investors were left with limited upside. Strathcona called the Cenovus deal "lopsided" and accused MEG's board of running a "broken sale process" that excluded its earlier overtures. "We put (MEG) in play, and now they've very transparently adopted an 'anyone but Strathcona' view,'" Waterous said. Strathcona's aggressive pursuit of MEG is unusual given how rare hostile takeover attempts are in the Canadian oil sector, said Cole Smead of Smead Capital Management, who holds all three stocks in his portfolio. But Canadian oil sands companies must get bigger to compete effectively on the international scene, he added. "This is a shock to the system for the Canadian markets," Smead said. "But scale is the name of the game." MEG said in a statement on Monday afternoon it would evaluate Strathcona's revised offer and respond on or before September 15. Cenovus did not respond to Reuters' request for comment. MEG's stock price closed at C$29.02, up 2.4%, while Strathcona closed down 0.3% at C$38.31. Cenovus shares gained one cent to close at C$22.12. ($1 = 1.3816 Canadian dollars) https://www.reuters.com/business/energy/canadas-strathcona-sweetens-meg-energy-bid-top-cenovus-offer-2025-09-08/

2025-09-08 20:04

Peso drops nearly 6% vs dollar before rebound; stocks slump 13% Opposition Peronists win Buenos Aires election by 13-point margin, market expected tighter gap Milei's party bruised by corruption allegations; faces uphill battle in October midterms NEW YORK/LONDON, Sept 8 (Reuters) - Argentina's markets tumbled on Monday, with the peso currency touching a historic low, after a heavy defeat for President Javier Milei's party at the hands of the Peronist opposition in local elections stoked worries about the government's ability to implement its economic reform agenda. The peso lost as much as 5.6% to the dollar and ended the session down 3.1% at 1,407 per greenback while the local stock index benchmark (.MERV) , opens new tab fell 13%, and an index of Argentine stocks traded on U.S. exchanges (.BKAR) , opens new tab lost 18%. Some of the country's international bonds saw their biggest daily price falls since they began trading in 2020 after a $65 billion restructuring deal. Sign up here. The 13-point victory for the Peronists signalled a tough battle for Milei in national midterm elections on October 26, where his party is aiming to secure enough seats to avoid overrides to his presidential vetoes. "The markets are now more pressured in the aftermath, and it certainly does have implications and some degree of read-through for the October vote," said Kathryn Exum, co-head of sovereign research at Gramercy, adding it was a reminder to investors that Peronism - with its heavy-handed state involvement in the economy - was not yet dead. "The bigger question is what happens post midterms and how committed they remain to policy, how much further they're able to go, (given) the political context that they have been afforded," she said, referring to the government. The government setback at the polls adds to recent headwinds for a market that had until recently outperformed its Latin American peers. The International Monetary Fund approved a $20 billion program in April, of which some $15 billion have already been disbursed. The IMF, which has eagerly backed the reform program of Milei's government, did not respond to questions on whether the vote result would change its relationship with the Milei administration or alter the program. The bond market selloff saw the country's 2030 issue fall 5.875 cents, on track for its largest daily drop since its post-restructuring issuance in 2020. Morgan Stanley had warned ahead of the vote that the international bonds could fall up to 10 points if a Milei drubbing dented his agenda for radical reform. On Monday, the bank pulled its 'like' stance on the bonds that was placed just days ago. The gap in the Buenos Aires Province (PBA) election in favor of the opposition Peronists was much wider than polls anticipated and what the market had priced in. Based on official counts, the Peronists won 47.3% of the vote across the province, while the candidate of Milei's party took 33.7%. "We had our reservations about the market being too complacent regarding the Buenos Aires election results. The foreign exchange market will undoubtedly be under the spotlight, as any instability there can have a ripple effect on Argentine assets," said Shamaila Khan, head of fixed income for emerging markets and Asia Pacific at UBS. "The midterm elections," she added, "carry more weight and their outcome will significantly influence how Argentine assets perform in the coming months." MARKET SELLOFF Argentina - one of the big reform stories across emerging markets since Milei became president in December 2023 - has seen its markets come under heavy pressure over the last month following a corruption scandal involving Milei's sister and political gatekeeper Karina Milei. Argentina's main equity index (.MERV) , opens new tab has dropped around 20%, its international government bonds have sold off and pressure on the recently unpegged peso forced authorities to start intervening in the FX market. The government now faces the difficult choice whether to allow the peso to depreciate ahead of next month's midterms or spend more of its foreign exchange reserves to intervene in the FX market, according to Pramol Dhawan, head of EM portfolio management at Pimco. "Opting for intervention would likely prove counterproductive, as it risks derailing the IMF program and diminishing the country’s prospects for future market access to refinance external debt," Dhawan said via email. "The more resources the government allocates to defending the currency, the fewer will be available to meet obligations to bondholders - thereby increasing the risk of default." Barclays analyst Ivan Stambulsky pointed to comments from Economy Minister Luis Caputo on Sunday that the country's FX regime will not change. "We’re likely to see strong pressure on the FX and declining reserves as the Ministry of Economy intervenes," Stambulsky said. "If FX sales persist, markets will likely start wondering what will happen if the economic team is forced to let the currency depreciate before the October mid-terms." Some analysts predicted other parts of the country were unlikely to vote as strongly against Milei as Buenos Aires province did, given it is a traditional Peronist stronghold. They also expected the Milei government to stick to its programme of fiscal discipline despite economic woes. "The policy mix adopted in the coming days and weeks to address elevated political risk will be pivotal in shaping medium-term inflation expectations - and, ultimately, the success of the stabilization program," said JPMorgan in a Sunday client note. https://www.reuters.com/business/autos-transportation/argentine-markets-plunge-after-mileis-party-loses-peronists-buenos-aires-vote-2025-09-08/

2025-09-08 20:03

ISTANBUL, Sept 8 (Reuters) - Access to major social media and messaging platforms in Turkey has been restored a day after widespread restrictions were imposed, Netblocks, a global internet monitor, said on Monday. Platforms including X, YouTube, Instagram, Facebook, TikTok and WhatsApp were restricted in Turkey on multiple networks from late Sunday. Sign up here. The blockage came as the main opposition Republican People's Party called for rallies after police set up barricades in areas around the party's headquarters in Istanbul. According to data from Turkey's Freedom of Expression Association, throttling of bandwidth for the platforms ended after 21 hours and services will be resumed in the next couple of hours. https://www.reuters.com/sustainability/society-equity/access-social-media-restored-turkey-internet-monitor-says-2025-09-08/

2025-09-08 19:44

GENEVA, Sept 8 (Reuters) - The Red Cross said on Monday it has distributed over 300 tents to displacement camps in southern Gaza in recent days but warned that the current supply of shelter materials to the enclave falls far short of urgent needs on the ground. In addition to the 300 tents, more than 1,500 are expected to be delivered in coming days, the Red Cross added, but said hundreds of thousands of people desperately need new tents or tarpaulins after months of wear and tear on existing supplies. Sign up here. "Many displaced families are living in appalling conditions -- some among the rubble of their destroyed homes, others in makeshift tents constructed from tarpaulins and scrap metal," Sarah Davies, a spokesperson for the International Committee of the Red Cross, told Reuters. The United Nations Office for the Coordination of Humanitarian Affairs told Reuters separately that humanitarian groups had sent "a limited number of tents" into Gaza in recent weeks, but many more were needed. Over 1.3 million Gazans currently lack tents, according to the United Nations, and further displacement is anticipated as Israel conducts a major assault on Gaza City, where hundreds of thousands of residents are living among the ruins. COGAT, the Israeli defence agency that deals with humanitarian issues, told Reuters that 5,000 tents had entered Gaza since restrictions on shelter materials were lifted near the end of August. Aid organizations say Israel effectively blocked deliveries of materials for shelter for nearly six months, and despite the lifting of the restriction last month, international NGOs such as CARE International, ShelterBox, and the Norwegian Refugee Council reported on Monday they have yet to receive authorization to deliver such materials. COGAT said: "Every organization that wants to enter tents is absolutely allowed to do so." The International Organization for Migration told Reuters it still has about 35,000 tents as well as half a million tarpaulins waiting in Jordan pending customs clearance. "It's frustrating. We need political solutions and then you can remove things like customs clearance and then we can move quicker," said Karl Baker, Regional Crisis Coordinator and head of IOM Gaza Response. Israel's assault has reduced much of the enclave to rubble and caused a humanitarian catastrophe. More than 64,000 Palestinians have been confirmed killed, according to health officials in Gaza. The war began with an assault by Hamas-led fighters on southern Israel in 2023. The attackers killed 1,200 people and took more than 250 hostages to Gaza, according to Israeli tallies. https://www.reuters.com/world/middle-east/some-tents-enter-gaza-red-cross-says-enclave-needs-many-more-2025-09-08/

2025-09-08 19:34

Layoffs aim to streamline operations and cut costs Oil industry faces challenges from OPEC+ and economic uncertainty ConocoPhillips is pursuing expensive projects like Willow in Alaska HOUSTON, Sept 8 (Reuters) - ConocoPhillips (COP.N) , opens new tab must sharpen its focus on capital discipline and investment priorities in order to regain its competitiveness against peers as oil prices and revenues fall, investors and analysts said, after the company announced last week it would lay off up to 25% of staff to cut costs. The third-largest U.S. oil producer joins majors Chevron (CVX.N) , opens new tab and BP (BP.L) , opens new tab, and the world's largest oil service providers SLB (SLB.N) , opens new tab and Halliburton (HAL.N) , opens new tab, in cutting staff as increased output from OPEC+ and economic uncertainty due to unpredictable U.S. trade policy have contributed to a slump in crude prices, pushing down oil company earnings to their lowest since the COVID-19 pandemic. Sign up here. Crude prices , which have fallen around 12% this year, are expected to decline again in 2026 as supply outpaces demand, according to the U.S. Energy Information Administration. "If you're cutting 25% of your workforce, that also tells me how inefficient things are," said Michael Alfaro, chief investment officer at Gallo Partners. Alfaro was among the investors and analysts who told Reuters they were surprised by the extent of ConocoPhillips' layoffs, which could impact up to 3,250 employees globally. On top of the gloomy oil market outlook, ConocoPhillips' specific challenges include big-ticket projects that will benefit the company in the long-run, but are capital intensive upfront. And after a string of acquisitions in recent years, including Marathon Oil for $22.5 billion last year, the company lost focus on controlling costs, CEO Ryan Lance told employees last week. ConocoPhillips needs to prioritize major projects like its Willow oil project in Alaska and developing its liquefied natural gas business, two efforts that will drive future cash flow, said Stewart Glickman, director of equity research at financial intelligence firm CFRA. That meant it needed to cut costs elsewhere, he added. Still, some investors said the company should do more to control rising capital expenditures. "They're solving the staff problem instead of solving the capital allocation problem," said Josh Young, CIO at Bison Interests, which has exposure to ConocoPhillips. "They're not judicious enough in their capital allocation, in my mind." The company does, however, hold high-quality assets, Young added. ConocoPhillips declined to comment for this story. Capital expenditures this year are expected to be between $12.3 billion and $12.6 billion, about 10% lower than ConocoPhillips and Marathon's pro forma capex last year. In August, executives said they expected next year's capex to be lower. ConocoPhillips' capex totaled $11.2 billion in 2023 and $10.2 billion in 2022. COST SAVINGS OPPORTUNITIES In its second quarter earnings, the company said it had identified $1 billion in cost reduction opportunities, on top of the more than $1 billion in cost savings after acquiring Marathon. It also raised its asset sales target to $5 billion by 2026, after achieving its previous target of $2 billion ahead of schedule. In a video message to employees last week, Lance said controllable costs had risen by about $2 per barrel since 2021, making it harder for the firm to compete and putting it behind peers. Higher inflation over the past few years and tariffs on imports imposed by the U.S. government are adding cost pressures for oil producers like ConocoPhillips, said Simon Wong, energy portfolio manager at investment firm Gabelli, which met with the company last week. Lance said during a town hall meeting last Thursday that a review of the business identified roughly 600 processes or activities where the company could take steps to simplify work. "It's not about trying to do more with less. We really have to take out the things that aren't adding value in this company," Lance said. The oil industry has seen a wave of mega-mergers in recent years, including Exxon Mobil's (XOM.N) , opens new tab acquisition of Pioneer and Chevron's purchase of Hess, as producers have consolidated to secure areas of lower-cost production. That has also meant a steady stream of layoff announcements. After incorporating Marathon, ConocoPhillips has a significant presence in key U.S. shale basins such as the Permian, Eagle Ford and Bakken. Technology and operating efficiencies likely mean fewer staff are needed in those fields, CFRA's Glickman said. The company needs to simplify and remove any overlapping positions, said Bill Smead, founder and CIO at Smead Capital Management, which holds a $169 million position in the Houston-based company, according to data from LSEG. "This is exactly what (ConocoPhillips) should be doing," he said. https://www.reuters.com/business/energy/conocophillips-deep-layoffs-highlight-need-capital-discipline-analysts-say-2025-09-08/