2025-10-06 11:39
WARSAW, Oct 6 (Reuters) - A Polish court ruled on Monday that the Ukrainian diver wanted by Germany over his alleged involvement in explosions which damaged the Nord Stream gas pipeline must remain in custody for another 40 days, his lawyer said. Volodymyr Z. was detained near Warsaw last Tuesday and the court decided he would be kept in custody for seven days. The court decided on Monday to extend his detention while a decision is made on whether to transfer him to Germany based on a European arrest warrant. Sign up here. Described by both Moscow and the West as an act of sabotage, the explosions marked an escalation in the Ukraine conflict and squeezed energy supplies. No one has taken responsibility for the blasts and Ukraine has denied any role. Another Ukrainian man suspected of coordinating the attacks was arrested in Italy in August and has planned to fight extradition to Germany. "The court rejected the prosecutor's request for a 100-day pre-trial detention, instead ordering it for 40 days," Volodymyr Z.'s lawyer Tymoteusz Paprocki told journalists. Paprocki said previously that his client had done nothing wrong and would plead not guilty. A court spokesperson said he would remain in custody until November 9. Germany's top prosecutors' office said in an earlier statement that the diver was one of a group of people who were suspected of renting a sailing yacht and planting explosives on the pipelines, which run from Russia to Germany, near the Danish island of Bornholm in September 2022. He faces accusations of conspiring to commit an explosives attack and of "anti-constitutional sabotage", the German prosecutors added. https://www.reuters.com/world/europe/polish-court-extends-custody-ukrainian-wanted-nord-stream-case-2025-10-06/
2025-10-06 11:26
DUBAI, Oct 6 (Reuters) - A new discovery in the Pazan gas field in southern Iran has been made with 10 trillion cubic feet of natural gas, Oil Minister Mohsen Paknejad said on Monday according to his ministry's news outlet Shana. Iran holds the world's second largest natural gas reserves, but most of its production is consumed domestically or lost to flaring, and the country faces a gas imbalance during high demand months. Sign up here. "This field has 10 trillion cubic feet of gas, and if we consider a 70% recovery rate we can reach 7 trillion cubic feet," Paknejad said, adding that the new reserves could help cover Iran's existing imbalances in the coming years. Paknejad added the new find was made after a pause of 8 years in exploration activities at the field and estimated it would take 40 months before extraction can begin. https://www.reuters.com/business/energy/iran-adds-10-trillion-cubic-feet-gas-its-reserves-2025-10-06/
2025-10-06 11:22
LNG now covers half of EU gas needs EU dependency on US LNG set to rise further LNG prices more volatile than pipeline gas EU gas storage levels drop to four-year low Oct 6 (Reuters) - Europe will need to import up to 160 additional liquefied natural gas cargoes this winter due to lower storage and a decline in pipeline flows from Russia and Algeria, according to analysts and data, deepening its dependency on U.S. gas. LNG imports will jump to 820 tankers this year from 660 last year, representing 48% of all EU gas supply, with analysts forecasting need for around 16 billion cubic meters (bcm) this winter. Sign up here. A decade ago, LNG covered only 10% of EU gas needs, and the share stood at 23% in 2021 before Russia invaded Ukraine and the bloc cut Russian pipeline imports. The typical modern LNG cargo vessel has a capacity of around 0.1 bcm. U.S. LNG exports saved Europe from a deeper gas crisis in 2022, but that growing reliance has created unease as the Trump administration hit trading partners, including the EU, with tariffs this year. The United States will supply around 70% of Europe's LNG in 2026-2029, up from 58% so far this year, as the EU plans to ban Russian LNG from 2027 and Russian gas from 2028, Energy Aspects analysts said. U.S. gas production and export capacity are surging, while growth from other suppliers will be limited, they said. "Our dependency on the U.S. will grow," said an executive at a major European utility, speaking on condition of anonymity, citing limited options to buy gas elsewhere. Imports from Algeria have fallen. And Europe's top domestic supplier, Norway, also faces a gradual production decline. Prices of long-term gas pipeline imports are generally less volatile than spot LNG prices. That means Europe's gas outlook is increasingly shaped by external risks such as Chinese LNG demand that can trigger price swings and discourage stockpiling, said Arne Lohmann Rasmussen, head of research at investment firm Global Risk Management. EU gas storage stood at 82.75%, or 944 terawatt hours, of capacity as of October 4, down from 94.32% last year and at their lowest levels since 2021, data from industry lobby group Gas Infrastructure Europe showed. Storage levels had dropped below 34% in March 2025, the lowest since 2022. Lower pipeline supply and increased reliance on LNG will require much steeper storage withdrawals and injections in the future, said Florence Schmit, energy strategist at Rabobank. By the end of the current winter in March 2026, storage volumes could drop to a seven-year low of 29% of capacity, according to Kpler. That would add a significant risk premium to EU gas prices in 2026, Energy Aspects said. https://www.reuters.com/business/energy/european-unions-us-gas-use-set-soar-increasing-price-volatility-2025-10-06/
2025-10-06 11:17
Oct 6 (Reuters) - Ares Management (ARES.N) , opens new tab said on Monday that a fund managed by its Infrastructure Opportunities unit has acquired a 49% stake in a diversified U.S. renewable energy platform from EDP Renovaveis (EDPR.LS) , opens new tab (EDPR), valuing the business at about $2.9 billion. The deal brings the total capacity owned by Ares Infrastructure Opportunities funds to roughly 5.7 gigawatts across 11 states and five U.S. power markets since September 2024. Sign up here. The investment manager has been doubling down on renewable energy and infrastructure assets amid rising demand for power, fueled by data centers and the rapid expansion of artificial intelligence. The EDPR deal comprises 10 assets representing about 1,632 megawatts (MW) of capacity, including 1,030 MW of solar, 402 MW of wind and 200 MW of storage capacity across four U.S. power markets. All the projects have already signed long-term power purchase agreements, with an average remaining contract duration of 18 years. Ares said the transaction would expand its presence in key domestic power markets and broaden its exposure to fast-growing clean energy segments. EDPR owns renewable energy assets across Europe, North America, South America and the Asia Pacific. https://www.reuters.com/business/energy/ares-management-buys-stake-edpr-assets-about-29-billion-deal-2025-10-06/
2025-10-06 10:17
What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. As U.S. markets mull the lengthening government shutdown, the week started with political drama in Japan and France - with the yen and euro falling sharply against the dollar and both gold and the euro/yen exchange rate vaulting to all-time highs. Sanae Takaichi's shock weekend win to lead Japan's ruling Liberal Democratic Party and become Japan's next Prime Minister sent the dollar surging above 150 yen and the Nikkei soaring almost 5% to new records above 48,000. With Takaichi opposed to Bank of Japan tightening and a supporter of further fiscal stimulus, her win has sent long-shaky 30-year Japanese government bond yields to new record highs and sent Japan's yield curve to its highest in a month as October BoJ rate hike bets evaporated. Just as markets were digesting the news from Tokyo, Prime Minister Sebastien Lecornu and his government resigned hours after Lecornu announced a cabinet line-up, making it the shortest-lived in modern French history and knocking stocks and the euro lower. With French politics back in limbo and possibly facing yet another election, the CAC40 French stock index fell more than 1.5% and euro zone stocks dropped too, with the euro falling back below $1.17 and 30-year French bond yields popping higher. The upshot for U.S. markets that are warily watching the length of the government shutdown stateside and the looming earnings season there is that stock futures and the dollar are higher ahead of Monday's bell and long-term Treasury borrowing rates are rising again. Irking the bond markets on another bad day for debt market around the world was a rise in oil prices after the OPEC+ output rise at the weekend fell short of many expectations. In today's column, I discuss Germany's looming fiscal "sugar rush". Today's Market Minute * Japan's ruling party picked hardline conservative Sanae Takaichi as its head on Saturday, putting her on course to become Japan's first female prime minister in a move set to jolt investors and neighbours. * The U.S. administration will start mass layoffs of federal workers if President Donald Trump decides negotiations with congressional Democrats to end a partial government shutdown are "absolutely going nowhere," a senior White House official said on Sunday. * Trump said on Sunday that talks with Hamas to end Israel's war in Gaza and release hostages held by the Palestinian militant group were advancing rapidly. * OPEC+'s continued oil output increases are eroding the group's spare production capacity, a vital cushion that has helped to mitigate volatility in recent years. Energy traders may therefore face rockier days ahead, writes ROI energy columnist Ron Bousso. * The tin market is once again bubbling on supply chain trouble, this time in Indonesia, where the government has launched a sweeping clamp-down on illegal mining. Read the latest from ROI metals columnist Andy Home. Chart of the day Sanae Takaichi's surprise weekend win to lead Japan's ruling LDP and become the next prime minister sank the yen, sent long-term Japanese borrowing rates soaring and lit a fire under Tokyo equities. Takaichi is opposed to further Bank of Japan interest rate rises and, as an ally of former PM Shinzo Abe, is keen on stimulating the economy further. Today's events to watch * New York Fed's September global supply chain index (1000) * US corporate earnings: Constellation Brands * European Central Bank President Christine Lagarde and Bank of Spain Governor Jose Luis Escriva speak; Bank of England Governor Andrew Bailey speaks Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-10-06/
2025-10-06 10:12
Defense sector stocks outperform Toronto index, Bombardier shares double Carney commits to 2% GDP military spending target this fiscal year, five years early Fast-track approval for projects to diversify economy, reduce US reliance Materials sector seen as main beneficiary of increased defense spending TORONTO, Oct 6 (Reuters) - Canadian defense, construction and metal mining shares stand to benefit as Ottawa commits to increased military spending and the speeding up of major infrastructure projects that could boost the economy, investors say. Shares of some of the companies in these sectors have already outperformed the broader Toronto stock index so far this year, including aerospace and defense company Bombardier Inc (BBDb.TO) , opens new tab, which has more than doubled. Sign up here. Canadian Prime Minister Mark Carney has vowed to boost funding for the armed forces and hit NATO's initial military spending target of 2% of gross domestic product this fiscal year, five years earlier than promised. On Thursday he launched a new Defence Investment Agency aimed at speeding up Canada's notoriously slow defense procurement, and tapped Doug Guzman, an executive from Canada's largest bank the Royal Bank of Canada, to run it. "It seems like Canada is going to be fully on board with that NATO spend and that's going to be good for a lot of these companies that are related to that spending," said Greg Taylor, chief investment officer at PenderFund Capital Management Ltd. Carney has also identified a number of projects for fast-track approval, including those that would increase natural gas production and expand both metal mines and a major container port, as part of a campaign to diversify the economy and reduce reliance on the United States. Canada now spends about 1.4% of GDP on defense. It will boost pay for service members and buy new submarines, aircraft, ships, armored vehicles and artillery, as well as new radar, drones and sensors, Carney has said. It will also introduce a new policy to ensure the federal government buys from Canadian suppliers. "In light of this elbows-up stance that our country and many others seem to be taking these days, to the extent possible we'll be trying to keep some of those dollars at home," said Brian Madden, chief investment officer at First Avenue Investment Counsel Inc, referring to a hockey term for self-protection. First Avenue owns shares in Bombardier. Kraken Robotics Inc (PNG.V) , opens new tab, which produces subsea sensors, batteries and robotic systems, is another company that could benefit from stepped-up defense spending, Madden said. Canada has further agreed to NATO's new defense investment pledge of 5% of GDP by 2035, which includes 3.5% of GDP for core military capabilities and 1.5% for defense and security-related infrastructure. "The materials sector, we see as the main beneficiary here," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. "As you read through what the Canadian commitment is to NATO, a large percentage of it is the mining area, specifically metals that are required for the military and industrial complex. So anything that can help with permitting, allowing the material companies more easily and quickly and cheaply get those metals out of the ground, will help." A more streamlined assessment of nation-building projects would boost prospects for construction and engineering firms such as AtkinsRealis Group Inc (ATRL.TO) , opens new tab, WSP Global Inc (WSP.TO) , opens new tab and Stantec Inc (STN.TO) , opens new tab, while heavy machinery company Toromont Industries Ltd (TIH.TO) , opens new tab and uranium producer Cameco Corp (CCO.TO) , opens new tab could also benefit, investors say. The building of a small modular nuclear reactor in Ontario is one of the projects under consideration for fast-track approval. The projects are long-term in nature, which has some investors taking a wait-and-see approach, and government policy is not the only factor driving these stocks. Still, it could raise their upside. "We are seeing tangible optimism around the Canadian government policy which is aimed at encouraging economic growth," Kuntzevitsky said. "You're really seeing that the Canadian government is recognizing the significance of being able to export our vast commodities to global markets." https://www.reuters.com/business/canadian-investors-bet-defense-construction-stocks-carney-targets-nation-2025-10-06/
