European stock markets demonstrated resilience at Wednesday’s open, trading higher despite the official implementation of US President Donald Trump’s doubled tariffs on steel imports.
While the broader market found positive momentum, the steel sector itself braced for a mixed impact, with analysts predicting potential benefits for European buyers but significant pressure on regional producers.
Shortly after the opening bell in London, European equities were broadly in positive territory.
The pan-European Stoxx 600 index opened nearly 0.3% higher, signaling investor appetite despite the heightened trade tensions.
Germany’s DAX led the gains, climbing 0.6%, while the French CAC 40 was 0.3% higher. London’s FTSE 100, however, was little changed in early dealings. Most major sectors across the European bourses started the day in the green.
The primary focus for markets on Wednesday is the activation of US tariffs.
Last week, President Donald Trump announced his decision to double the tariffs on steel imports from 25% to 50%, with the new rate taking effect on June 4.
This move has drawn criticism from the European Union, which stated that such an action “undermines” its ongoing trade deal negotiations with the US.
Steel sector braces for tariff impact
The implementation of these higher US tariffs is expected to have a complex and somewhat divergent impact on the European steel industry.
While seemingly counterintuitive, some analysts suggest that European steel buyers and certain manufacturers could paradoxically benefit from the increased US duties.
The logic is that these tariffs could put downward pressure on steel prices within the European region itself.
Josh Spoores, head of steel Americas analysis at CRU, explained to CNBC on Tuesday that the latest US tariffs will cause domestic steel prices in the US to increase.
This, in turn, will put pressure on Canada and Mexico, which are the largest steel exporters to the US.
Consequently, Spoores anticipates that this will redirect steel flows towards cheaper markets, such as Europe, thereby potentially favoring regional buyers with lower input costs.
However, the outlook for European steelmakers is less optimistic.
The Rolls-Royce share price continued its strong surge this week as it reached a new all-time high. It soared to 900p, up by over 2,518% from its lowest point during the pandemic, as it became one of the biggest British companies globally. This trend means that it may soon hit 1,000p as we have predicted several times.
China as a big catalyst for Rolls-Royce share price
Our last articleon Rolls-Royce Holdings identified China as a potential catalyst for the stock. In that article, we noted that Comac, China’s aircraft manufacturer, may turn to the company for engines as tensions with the US rise.
A likely scenario is where the Trump administration will ban General Electric and other American companies from supplying engines and parts to Comac. The goal will to enable Boeing maintain a market share in the aviation industry.
The challenge, however, is that Rolls-Royce Holdings manufactures engines for wide-body aircraft. It has no presence in the narrow-body sector after it abandoned the business a few years ago.
Rolls-Royce has hinted that it will want to return to the narrow-body industry in the future. However, building a new engine from scratch may be a big challenge and take over 6 years to complete.
China Airbus orders
China is a big catalyst for the Rolls-Royce share price as its airlines focus on buying Airbus planes. Indeed, no major airline has made a big Boeing order in the past few years.
Now, Bloomberg is reporting that China is considering a big bid for Airbus planes, a deal that may be announced next month when EU leaders visit Beijing to celebrate long-term ties. The platform reported that the orders could be between 200 and 500.
Bloomberg notes that the potential orders will be spread between wide-body and narrow-body planes. Rolls-Royce Holdings engines power most of Airbus’ wide-body engines, making it a big beneficiary of such a deal.
However, Rolls-Royce gains in this order will take time to materialize because of Airbus’ backlog, which stands at over 8,000 planes. This means that any orders could be delivered in the next decade.
Civil aviation is an important market for Rolls-Royce Holdings, a company that sells engines and then takes long-term service contracts. This division accounts for over 50% of its total revenue.
Rolls-Royce is also benefiting from the other two divisions: power and defence. Its power business is benefiting from the ongoing AI boom, while the defence business is a top beneficiary as European and American governments boost their defense spending.
At the same time, the management has focused on making Rolls-Royce a leaner and more profitable company. Indeed, it achieved its mid-term targets in 2024, two years ahead of schedule.
The daily chart shows that the RR share price has been in a strong uptrend in the past few years as the company’s growth resumed. It recently moved above the key resistance level at 810p, invalidating the double-top pattern that was forming. A double-top is one of the most bearish patterns in technical analysis.
The stock remains above the 50-day and 100-day Exponential Moving Average (EMA), a sign that bulls are in control. Also, the Relative Strength Index (RSI) and the MACD indicator have all pointed upwards.
Therefore, the Rolls-Royce share price will likely continue soaring, with the next point to watch being at 1,000p. The bullish outlook will only become invalid if the stock drops below the support at 850p.
Bristol-Myers Squibb Co (NYSE: BMY) is inching up on Monday after announcing an $11 billion deal with BioNTech SE (Nasdaq: BNTX) aimed at transforming cancer treatment.
The pharmaceutical behemoth announced the said partnership at ASCO, the world’s largest cancer conference in Chicago.
Despite today’s price action, BMY shares are down some 25% versus their year-to-date high.
Speaking this morning with CNBC, Christopher Boerner – chief executive of Bristol Myers offered three big reasons for the blockbuster collaboration with the Germany based BioNTech.
1. Targeting hard-to-treat tumors with breakthrough science
According to Christopher Boerner, the BioNTech deal stems from the company’s commitment to one mission: tackling some of the most challenging solid tumours where current treatments fall short.
The collaboration will focus on next-gen immunotherapies, particularly bispecific antibodies that aim to improve outcomes in cancers like lung and triple-negative breast cancer.
“This could be the next new frontier in the treatment of cancer,” Boerner told CNBC, adding that immune-oncology (IO) drugs may have changed the landscape for many cancers, but lasting remission is still seen in about 30% of the patients only.
That leaves a large pool of patients with unmet medical needs – patients that Bristol Myers and BNTX are hoping to reach.
At the core of the announced team-up is a promising drug candidate that combines VEGF and PD-L1 inhibition in a single bispecific molecule, potentially leading to more durable responses.
“We really like the science,” Boerner noted, calling the bispecific approach a potential game-changer.
2. Strategic positioning for first mover advantage in key markets
Beyond the science, the deal is also about gaining a competitive edge.
Boerner highlighted the importance of timing in a crowded oncology market during the interview, saying what he’s learned from his experience in immuno-oncology is “if you want to capture value in highly competitive spaces, you need to be first or second.”
According to the chief executive, BioNTech’s assets are well-positioned to become early entrants across several high-value tumor types.
That timing could give BMY the kind of foothold needed to secure commercial success. The company’s existing expertise in marketing and distributing oncology products further strengthens its chances to maximize the value of the deal.
3. Doubling Down on Long-Term Growth Potential
The BioNTech partnership is not just about short-term results, Boerner sees it as a long-term growth engine for the pharma stock as the decade unfolds.
With some of its legacy IO products facing patent cliffs, BMS needs new therapies to fuel future revenues. This collaboration offers that potential, pairing BioNTech’s cutting-edge science with BMY’s commercialization capabilities.
“This deal gives us another leg for growth as we exit this decade,” Boerner said. With BioNTech’s pipeline complementing Bristol Myers’ strategy, the partnership could evolve into a foundational element of the company’s oncology business.
In a high-stakes, high-reward field, BMY is betting big – but with a clear vision of where the science and market are heading. If successful, the partnership could reshape cancer treatment and deliver billions in future returns.
Singapore, which has historically depended on gas for its energy supply, is now exploring regional grid connections.
The strategy primarily involves utilising subsea cables to establish links between national grids, thus facilitating electricity trading across borders, Rystad Energy said in a report on Tuesday.
This strategic transition is intended to speed up the process of decarbonisation and separate local electricity costs from the fluctuations of the international gas market.
Source: Rystad Energy
Decarbonisation and cost benefits
Rystad Energy research suggests that realising all proposed interconnections to Singapore could stimulate over $40 billion in regional investments for renewable and energy storage projects.
This development could unlock up to 25 gigawatts (GW) of hydropower, solar, and offshore wind capacity.
Singapore’s strategic location allows it to function as a pivotal green energy center, facilitating connections with neighboring countries via regional power grids.
“Singapore stands to benefit the most from Southeast Asia’s emerging regional grid, but realizing these gains will require coordinated, win-win cooperation with supplier countries, many of which may see limited direct advantage in linking up with another market,” Raksit Pattanapitoon, lead renewables & power analyst (APAC), Rystad Energy, said in the report.
For the island nation, importing electricity through these networks offers a financially viable approach and has the potential to lower emissions by up to 13 million tonnes of carbon dioxide equivalent annually, assuming the completion of all proposed initiatives, according to Rystad Energy.
This strategy offers not just significant decarbonisation benefits, but also strengthens Singapore’s energy security by enabling a wider, cleaner energy mix, thereby furthering the nation’s sustainability objectives, the Norway-based energy intelligence company said.
Singapore’s electricity mix
The Iberian Peninsula’s recent blackouts highlighted the crucial need for grid resilience to be prioritised. Also, fragile grids and inadequate storage often cause large power failures.
Pattanapitoon added:
Singapore can address both vulnerabilities by deepening regional integration and tapping into neighboring renewable resources, helping scale a resilient regional grid and strengthening energy security.
Singapore’s electricity production is overwhelmingly dependent on natural gas, making up 96% of its power sources.
The nation primarily utilises combined-cycle gas turbine (CCGT) plants, which are designed for power reliability.
These CCGT plants operate through a two-step process: initial electricity generation comes from burning natural gas, followed by the utilisation of the resultant hot exhaust to create steam, which powers a second turbine.
CCGT plants are known for their reliability and cost competitiveness.
Economical options
However, research conducted by Rystad Energy, which focused on the levelised cost of electricity (LCOE), indicated that sourcing electricity through ASEAN interconnectors might be a more economical choice than developing new CCGT facilities domestically.
“Current cost analyses indicate these hybrid systems could deliver lower LCOEs than many in the industry currently anticipate. Singapore, strategically positioned at the heart of this evolving energy system, stands to gain significantly,” Nevi Cahya Winofa, analyst, renewables & power research, Rystad Energy, noted.
Source: Rystad Energy
In Singapore, the Electricity Market Authority (EMA) is instrumental in guaranteeing a consistent supply of imported low-carbon electricity.
Current regulations mandate that projects reach a minimum annual load factor of 60% within five years of operation. This ensures a stable and dependable power source for the country.
Though developers target a minimum load factor, there’s significant financial motivation to surpass it.
Enhancing load factors
Enhancing the load factor target, moving from 60% to 100%, can notably decrease the LCOE.
This reduction is achieved by more efficient transmission cost distribution and realising capital expenditure savings through increased scale.
Significant cost optimization gains are especially pronounced in countries like Malaysia (Sarawak), Cambodia, and Vietnam due to lengthy transmission distances exacerbating the benefits, Rystad said.
Optimised solar-plus-storage hybrids with appropriately sized battery energy storage systems can achieve over 90% load factors technically and economically.
Integrating these technologies with backups can meet Singapore’s EMA reliability standards and be comparable to other dispatchable energy sources.
Winofa said:
As it engages in discussions with its neighbors, the country must proactively identify and secure unique advantages to maximize shared value in the potential establishment of a regional power grid.
The Vietnamese Agriculture Ministry announced on Tuesday that domestic companies plan to sign memorandums of understanding with US partners to purchase $2 billion in American agricultural goods, according to a Reuters report.
This initiative is aimed at advancing a new trade agreement between Vietnam and the US.
US President Donald Trump’s administration had imposed substantial “reciprocal” tariffs on Vietnam, reaching a significant 46%.
This measure has introduced considerable uncertainty into Vietnam’s economic outlook.
While these tariffs are currently suspended until July, their potential activation presents a serious threat to Vietnam’s established growth model.
This model is heavily dependent on exports, particularly to the US, which remains Vietnam’s primary and most crucial export market.
The reimplementation of these tariffs could severely disrupt trade flows and negatively impact Vietnam‘s economic performance.
The situation highlights the vulnerability of export-oriented economies to shifts in international trade policies and the potential consequences of trade disputes between major economic powers.
New deals
During a recent diplomatic visit to the United States, a high-powered Vietnamese delegation, consisting of 50 prominent companies and spearheaded by agriculture minister Do Duc Duy, solidified several new trade agreements aimed at bolstering economic ties between the two nations.
A key highlight of this visit was the signing of five Memorandums of Understanding (MoUs).
These MoUs specifically pertain to the procurement of agricultural products from the state of Iowa.
As per the directives outlined in these agreements, Vietnam has committed to purchasing a substantial $800 million worth of goods from Iowa over the span of the next three years.
The visit itself served as a platform for Vietnamese businesses to engage directly with their American counterparts, fostering collaboration and paving the way for future cooperation across various sectors.
According to the report, memoranda of understanding with Iowa encompass acquisitions of corn, wheat, dried distillers grains, and soybean meal.
Trade deficit
Recent discussions between Vietnam and the Trump administration have centered on establishing a mutually agreeable trade framework, driven by the substantial trade imbalance favoring Vietnam.
As part of these ongoing negotiations, Vietnam has committed to increasing its intake of goods originating from the US.
This pledge is a direct response to the persistent and widening trade gap that has become a key point of contention.
The scale of this deficit is notable; in the preceding year, the US recorded a staggering trade shortfall of $123 billion in its economic exchanges with Vietnam.
Other measures
This deficit underscores the urgency and importance of finding a balanced solution through these trade talks, aiming to ensure a more equitable flow of goods between the two nations.
Last year, Vietnam imported $3.4 billion in agricultural goods from the US, while exporting $13.68 billion worth of its own agricultural products to America, according to the Vietnam News Agency.
Vietnam has committed to purchasing additional American goods, such as Boeing aircraft and liquefied natural gas.
Moreover, following US allegations of Vietnam being a significant center for counterfeit goods and digital piracy, the nation has vowed to take action against these illegal operations.
The Organization for Economic Cooperation and Development (OECD) has issued a stark warning, asserting that President Donald Trump’s aggressive and combative trade policies have plunged the global economy into a significant downturn, characterized by heightened uncertainty.
The Paris-based organization highlighted that the United States itself is among the nations most severely impacted by these protectionist measures.
In its latest assessment, the OECD has revised its global economic forecasts downward for the second time this year, directly citing the detrimental impact of the American president’s widespread tariff implementations.
The organization emphasized that the combination of newly erected trade barriers and the pervasive uncertainty they generate is severely undermining business confidence and stifling investment worldwide.
Furthermore, the OECD cautioned that this rising tide of protectionism is actively contributing to inflationary pressures across economies.
The OECD now projects that global economic growth will decelerate to 2.9% this year, a notable reduction from the 3.3% expansion recorded in 2024.
The outlook for the United States is even more concerning, with its rate of expansion expected to tumble to just 1.6% from a previous 2.8%.
This forecast represents a significant downgrade from the OECD’s projections made in March, underscoring the rapidly deteriorating economic picture.
“Weakened economic prospects will be felt around the world, with almost no exception,” stated OECD Chief Economist Alvaro Pereira.
Lower growth and less trade will hit incomes and slow job growth.
Protectionism: the most pressing global economic problem
The OECD’s analysis paints a clear picture: President Trump’s trade policies have emerged as the most pressing challenge confronting the global economy, with no straightforward solutions readily apparent.
The situation, the organization warned, could be further exacerbated by retaliatory measures from US trading partners, a continued erosion of business and consumer confidence, or another destabilizing bout of repricing across financial markets.
This sobering assessment was published as ministers from the OECD’s 38 member countries convened in Paris for their annual meeting.
High-profile attendees expected at the gathering include US Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic.
Lin Feng, a representative from China’s Ministry of Commerce, is also scheduled to participate, setting the stage for potentially crucial discussions on trade.
Underscoring the urgency of the situation, the OECD stated, “Agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices. This is by far the most important policy priority.”
However, the organization also tempered expectations, noting that even if President Trump were to reverse course on tariffs immediately, the anticipated benefits in terms of economic growth and reduced inflation would not materialize instantaneously.
A persistent drag from the heightened policy uncertainty would likely linger.
US specific headwinds: immigration curbs, deficit woes, and inflation risks
For the United States specifically, the OECD identified additional factors compounding the trade-related drag on its economy.
These include curbs on immigration and a sizable reduction in the federal workforce.
The organization also cautioned that the US budget deficit is projected to expand further.
The impact of weaker economic activity is expected to more than offset any gains from spending cuts and revenues generated by the tariffs.
Inflation in the US is also anticipated to move higher this year, according to the OECD.
This inflationary pressure makes it likely that the Federal Reserve will refrain from resuming monetary policy easing until 2026.
The OECD added a further note of caution, suggesting that this process could even be derailed if consumer-price expectations become de-anchored from the central bank’s targets.
The KOSPI Composite Index has embarked on a strong rally in the past few months as South Korean shares surged. The index, which tracks the biggest South Korean companies, rose to KRW 2,720, its highest point since August 26, and 18% above the lowest point this year.
Interest rate cuts have driven South Korean stocks
South Korean stocks have jumped this year even as some of the biggest companies are exposed to the United States, where Donald Trump has applied substantial tariffs. Some of the most exposed companies are giants like Hyundai, Samsung, and LG.
One reason for the rally is that investors believe that the two countries will reach an agreement later this year. South Korea was one of the first countries to reach out to the Trump administration for a deal.
South Korean stocks have also soared as the political environment has cooled a bit in the past few months. Political temperatures rose a few months ago after the then-president declared a state of emergency.
Further, the South Korean central bank has been more dovish in the past few months. It slashed interest rates last week by 0.25% to 2.75%, down from last year’s high of 3.50%. It has been slashed five times since last year.
Interest rate cuts boost the stock market by lowering the country’s bond yields. Data shows that the ten-year yield has been in a downward trend in the past few months. It was trading at 2.80%, down from the year-to-date high of 3.08%. The 30-year yield has also dropped to 2.67% from the year-to-date high of 2.85%.
It has slashed interest rates because analysts anticipate that the South Korean economy will continue slowing. The risk, however, is that inflation has remained stubbornly high in the past few months. Recent data shows that the headline CPI remained at 2.1% in April, up from 1.3% earlier this year.
The KOSPI Index remains significantly below the highest point in 2024 even as more companies are hitting their 52-week highs. Data shows that more companies in the index are hitting the highs today more than at any point in the past few years.
Over 90 firms have moved to this high, and many more could join the group in the coming weeks. This rally underscores that investors believe that smaller companies will do better in the future. Samsung, the biggest South Korean company, now accounts for 16% of the index, down from 20% earlier this year.
The best-performing companies in the KOSPI Index are the likes of Hyundai Rotem, MNC Solution, Hanwha, HD Hyundai Energy Solutions, and Hyundai Engineering, have all surged by over 100% this year.
The daily chart shows that the KOSPI Composite Index bottomed at KRW 2,285 in April and then rebounded to KRW 2,720 in May. It has already crossed the important resistance point at KRW 2,680, its highest point on February 1.
Moving above that level meant that investors had prevailed. The index has also formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other.
It has jumped above the 61.8% Fibonacci Retracement level, a sign that bulls are in control. Therefore, the index will likely continue rising as bulls target the key resistance level at $2,800, up by 3.8% above the current level. A move below the 50% retracement level will invalidate the bullish outlook.
Poland has elected Karol Nawrocki as its next president in a nail-biting runoff that has captured global attention for its geopolitical implications.
Nawrocki, who represents the opposition Law and Justice (PiS) party, secured 50.89% of the national vote, edging out pro-EU Warsaw Mayor Rafał Trzaskowski, who had 49.11% of votes.
With Nawrocki’s victory, Poland’s presidency remains under the influence of nationalist-conservative politics, following two terms under outgoing president Andrzej Duda.
While the Polish presidency is mostly symbolic, the position comes with key powers, including veto rights that could disrupt legislation backed by Prime Minister Donald Tusk’s coalition.
Nawrocki’s win has raised questions over the durability of Poland’s recent pro-European policy shifts and could set the tone for growing right-wing populist influence across Europe, amid deepening global polarisation.
EU funds, veto power, and legislative gridlock risk
Nawrocki’s ability to veto parliamentary bills places him in direct confrontation with Prime Minister Tusk’s centrist government.
Since returning to power in 2023, Tusk has prioritised mending ties with Brussels, unlocking €137 billion ($156 billion) in frozen EU funds by addressing rule-of-law concerns flagged under the previous PiS administration.
The new president could now obstruct further reforms needed to maintain those funds, particularly in the judicial and media sectors.
Poland, the sixth-largest economy in the EU and home to 37 million people, was the bloc’s largest net beneficiary of financial support in 2024. That status could be jeopardised if Nawrocki blocks further compliance with EU standards.
His Eurosceptic stance may embolden other conservative parties in the region while frustrating Brussels’ efforts to ensure legal consistency across member states.
Ukraine policy shift as support for NATO bid softens
Nawrocki has signalled a change in Poland’s posture towards Ukraine, a critical development given Warsaw’s outsized role in supporting Kyiv since the Russian invasion began.
Poland has offered both security and logistical aid, and took over the EU’s rotating presidency in January 2025 under the motto “Security, Europe!” following Hungary.
However, during his campaign, Nawrocki criticised Ukrainian President Volodymyr Zelenskyy for alleged diplomatic slights and dismissed the country’s NATO membership ambitions.
While Poland has historically contributed heavily to NATO, surpassing the alliance’s 2% GDP spending target with a 4.12% contribution in 2024, Nawrocki’s comments could signal a more cautious, transactional approach to military alliances and regional cooperation.
Trump endorsement, US ties, and conservative momentum
Nawrocki’s win comes amid renewed momentum for right-wing populist movements across Europe.
His victory follows conservative losses in Romania and Portugal, but aligns with the ideological current flowing from Donald Trump’s return to prominence in the US.
Nawrocki was backed by Trump and received direct endorsement from US Homeland Security Secretary Kristi Noem, who praised him at a conservative summit in Poland just days before the vote.
The US has maintained close ties with Warsaw, particularly on defence procurement. Poland has consistently exceeded NATO benchmarks and purchased billions in US arms, including F-35 fighter jets and Abrams tanks.
Despite Trump’s frequent criticism of NATO, Poland’s high spending may insulate it from Washington’s scrutiny while the broader US-EU relationship evolves.
Nawrocki now begins a five-year term with the possibility of re-election, potentially altering Poland’s role in both the EU and NATO.
The extent to which his presidency shifts national policy may depend not only on his relationship with the Tusk government but also on whether right-wing parties can consolidate further power in upcoming legislative cycles.
Singapore, which has historically depended on gas for its energy supply, is now exploring regional grid connections.
The strategy primarily involves utilising subsea cables to establish links between national grids, thus facilitating electricity trading across borders, Rystad Energy said in a report on Tuesday.
This strategic transition is intended to speed up the process of decarbonisation and separate local electricity costs from the fluctuations of the international gas market.
Source: Rystad Energy
Decarbonisation and cost benefits
Rystad Energy research suggests that realising all proposed interconnections to Singapore could stimulate over $40 billion in regional investments for renewable and energy storage projects.
This development could unlock up to 25 gigawatts (GW) of hydropower, solar, and offshore wind capacity.
Singapore’s strategic location allows it to function as a pivotal green energy center, facilitating connections with neighboring countries via regional power grids.
“Singapore stands to benefit the most from Southeast Asia’s emerging regional grid, but realizing these gains will require coordinated, win-win cooperation with supplier countries, many of which may see limited direct advantage in linking up with another market,” Raksit Pattanapitoon, lead renewables & power analyst (APAC), Rystad Energy, said in the report.
For the island nation, importing electricity through these networks offers a financially viable approach and has the potential to lower emissions by up to 13 million tonnes of carbon dioxide equivalent annually, assuming the completion of all proposed initiatives, according to Rystad Energy.
This strategy offers not just significant decarbonisation benefits, but also strengthens Singapore’s energy security by enabling a wider, cleaner energy mix, thereby furthering the nation’s sustainability objectives, the Norway-based energy intelligence company said.
Singapore’s electricity mix
The Iberian Peninsula’s recent blackouts highlighted the crucial need for grid resilience to be prioritised. Also, fragile grids and inadequate storage often cause large power failures.
Pattanapitoon added:
Singapore can address both vulnerabilities by deepening regional integration and tapping into neighboring renewable resources, helping scale a resilient regional grid and strengthening energy security.
Singapore’s electricity production is overwhelmingly dependent on natural gas, making up 96% of its power sources.
The nation primarily utilises combined-cycle gas turbine (CCGT) plants, which are designed for power reliability.
These CCGT plants operate through a two-step process: initial electricity generation comes from burning natural gas, followed by the utilisation of the resultant hot exhaust to create steam, which powers a second turbine.
CCGT plants are known for their reliability and cost competitiveness.
Economical options
However, research conducted by Rystad Energy, which focused on the levelised cost of electricity (LCOE), indicated that sourcing electricity through ASEAN interconnectors might be a more economical choice than developing new CCGT facilities domestically.
“Current cost analyses indicate these hybrid systems could deliver lower LCOEs than many in the industry currently anticipate. Singapore, strategically positioned at the heart of this evolving energy system, stands to gain significantly,” Nevi Cahya Winofa, analyst, renewables & power research, Rystad Energy, noted.
Source: Rystad Energy
In Singapore, the Electricity Market Authority (EMA) is instrumental in guaranteeing a consistent supply of imported low-carbon electricity.
Current regulations mandate that projects reach a minimum annual load factor of 60% within five years of operation. This ensures a stable and dependable power source for the country.
Though developers target a minimum load factor, there’s significant financial motivation to surpass it.
Enhancing load factors
Enhancing the load factor target, moving from 60% to 100%, can notably decrease the LCOE.
This reduction is achieved by more efficient transmission cost distribution and realising capital expenditure savings through increased scale.
Significant cost optimization gains are especially pronounced in countries like Malaysia (Sarawak), Cambodia, and Vietnam due to lengthy transmission distances exacerbating the benefits, Rystad said.
Optimised solar-plus-storage hybrids with appropriately sized battery energy storage systems can achieve over 90% load factors technically and economically.
Integrating these technologies with backups can meet Singapore’s EMA reliability standards and be comparable to other dispatchable energy sources.
Winofa said:
As it engages in discussions with its neighbors, the country must proactively identify and secure unique advantages to maximize shared value in the potential establishment of a regional power grid.
The Vietnamese Agriculture Ministry announced on Tuesday that domestic companies plan to sign memorandums of understanding with US partners to purchase $2 billion in American agricultural goods, according to a Reuters report.
This initiative is aimed at advancing a new trade agreement between Vietnam and the US.
US President Donald Trump’s administration had imposed substantial “reciprocal” tariffs on Vietnam, reaching a significant 46%.
This measure has introduced considerable uncertainty into Vietnam’s economic outlook.
While these tariffs are currently suspended until July, their potential activation presents a serious threat to Vietnam’s established growth model.
This model is heavily dependent on exports, particularly to the US, which remains Vietnam’s primary and most crucial export market.
The reimplementation of these tariffs could severely disrupt trade flows and negatively impact Vietnam‘s economic performance.
The situation highlights the vulnerability of export-oriented economies to shifts in international trade policies and the potential consequences of trade disputes between major economic powers.
New deals
During a recent diplomatic visit to the United States, a high-powered Vietnamese delegation, consisting of 50 prominent companies and spearheaded by agriculture minister Do Duc Duy, solidified several new trade agreements aimed at bolstering economic ties between the two nations.
A key highlight of this visit was the signing of five Memorandums of Understanding (MoUs).
These MoUs specifically pertain to the procurement of agricultural products from the state of Iowa.
As per the directives outlined in these agreements, Vietnam has committed to purchasing a substantial $800 million worth of goods from Iowa over the span of the next three years.
The visit itself served as a platform for Vietnamese businesses to engage directly with their American counterparts, fostering collaboration and paving the way for future cooperation across various sectors.
According to the report, memoranda of understanding with Iowa encompass acquisitions of corn, wheat, dried distillers grains, and soybean meal.
Trade deficit
Recent discussions between Vietnam and the Trump administration have centered on establishing a mutually agreeable trade framework, driven by the substantial trade imbalance favoring Vietnam.
As part of these ongoing negotiations, Vietnam has committed to increasing its intake of goods originating from the US.
This pledge is a direct response to the persistent and widening trade gap that has become a key point of contention.
The scale of this deficit is notable; in the preceding year, the US recorded a staggering trade shortfall of $123 billion in its economic exchanges with Vietnam.
Other measures
This deficit underscores the urgency and importance of finding a balanced solution through these trade talks, aiming to ensure a more equitable flow of goods between the two nations.
Last year, Vietnam imported $3.4 billion in agricultural goods from the US, while exporting $13.68 billion worth of its own agricultural products to America, according to the Vietnam News Agency.
Vietnam has committed to purchasing additional American goods, such as Boeing aircraft and liquefied natural gas.
Moreover, following US allegations of Vietnam being a significant center for counterfeit goods and digital piracy, the nation has vowed to take action against these illegal operations.
