S&P downgrades Orsted credit rating
It's just the latest bit of bad news for the company after the announcement of a rights issues on Monday sent shares plunging the most ever this week.
In Ireland, Orsted has almost 30 wind farms in operation or development, along with two solar farms. In 2023 it entered a 50/50 partnership with the ESB to develop offshore wind farms.
However, over the past few years, the Danish utility has been forced to write off billions of dollars amid cancellations and delays to projects on both sides of the Atlantic because of soaring costs and volatile policies.
Orsted's long-term issuer credit rating was dropped one notch to BBB-, just one step above junk, S&P said in a statement on Thursday. It cited business challenges including the Danish company's inability to carry out project refinancing and divest 50% of its US-based Sunrise wind project.
The downgrade 'can only be characterised as a clearly negative surprise,' Danske Bank Chief Credit Analyst Jakob Magnussen wrote in a note. 'We had expected that S&P would stay at 'BBB' and possibly even assign a positive outlook.'
'These expected updates do not impact our business plan,' said Trond Westlie, Orsted's chief financial officer. 'We're comfortable with our credit metrics and believe they are in a good place commensurate with solid investment grade rating.' All the firm's current offshore wind projects, totaling 8.1 gigawatts, are progressing according to plan, Westlie said in an emailed comment.
S&P also noted that it had revised its view of the firm's management and governance as 'moderately negative' because of the credit impact of its 'high-risk strategy that, to some extent, current management inherited.'
Orsted said earlier this week that it planned to raise as much as 60 billion Danish kroner ($9.4bn (€8.1bn)) in a stock sale to steady its finances after US President Donald Trump's policies to limit offshore wind stifled the company's ability to sell project stakes.
Since coming into office, Trump has halted permitting for new offshore wind developments, withdrawn millions of acres of ocean for development, and hastened the end of renewable energy tax incentives.
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RTÉ News
8 hours ago
- RTÉ News
Ceasefire, sanctions avoided in win-win summit for Putin
The summit was a win-win for Russian President Vladimir Putin. Not only has he managed to avoid US sanctions being imposed on Russia and secondary tariffs on its trading partners, as US President Donald Trump had threatened only a week ago, it now appears that he has convinced the US President that a ceasefire is not necessary to end the war in Ukraine. Mr Trump's latest comment on Truth Social said it all: "The best way to end the horrific war between Russia and Ukraine is to go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement." Going straight to a peace agreement jettisons, what has been until now, a shared US, Ukrainian and European policy that a ceasefire must be agreed first before any substantial peace talks take place on the key issue of occupied territory. Russia opposed US ceasefire proposals in March and April so the logical conclusion is that Mr Putin convinced Mr Trump during their three-hour meeting to drop the idea of a ceasefire. We can expect Mr Trump to place pressure on Ukrainian President Volodymyr Zelensky to agree to entering peace talks soon when they meet in Washington on Monday. Only last Tuesday all EU member states except Hungary endorsed a statement that only "meaningful negotiations" can take place "in the context of a ceasefire or reduction of hostilities". The UK shares the same position. Mr Trump's 180-degree turn will cause unease in Europe but it is hard to see how European leaders can now bring the conversation back to the need to first establish a ceasefire. Mr Putin also managed to make the summit more about US-Russia relations and shared business opportunities, rather than Ukraine. Yesterday's press conference in Alaska lasted all of 12 minutes and journalists were granted no questions. Mr Putin spoke for nine of those minutes, and delivered a rambling historical narrative about Alaska's Russian heritage and US-Russian cooperation during World War II. No one had come to hear that. When he did briefly mention, what he termed, "the situation around Ukraine", he stuck to his familiar script. "We need to eliminate all the primary roots, the primary causes of that conflict, and we've said it multiple times," he said. So Mr Trump's promise on Thursday to enact "very severe consequences" on Russia if it did not agree to a ceasefire during the Alaska meeting has come to nothing. Instead, Russia's leader has come away from the summit with a commitment to go straight to peace talks and that does not bode well for Ukraine.
Irish Examiner
10 hours ago
- Irish Examiner
EU braces for wave of Chinese imports as Trump tariffs redirect Shein and Temu sales
With US president Donald Trump pushing to reshape global trade with the imposition of tariffs on foreign products, firms around the world are looking to diversify into different markets while moving away from the US — which cannot be relied upon as a trusted trading partner. For China, the US has been its largest trading partner and as a result, has been the focus of Mr Trump's ire ever since he was sworn back into office. In recent years, the US has become a huge market for low cost products from the likes of online retailers Shein and Temu — who may be seeking alternative destinations for their products given difficult trading conditions with the US. However, both of these companies have been heavily criticised for numerous issues ranging from poor treatment of workers at factories, to producing low quality and environmentally damaging products, as well as products which are unsafe. Alacoque McAlpine, Irish Research Council Government of Ireland scholar at Sutherland School of Law in University College Dublin, who has for years lectured in sustainable supply chain management, said companies like Shein would be considered 'ultra fast fashion' — as they are on another level compared to retailers here such as Penneys, Zara, and H&M to name a few. 'They're not as good quality either. So they're not durable, they don't last, and they're essentially going to landfill,' she said. While the tensions between China and the US may have reduced in recent months, Chinese goods are still subject to a 30% tariff when they arrive in the US. The US is also set to end the de minimis exemption on August 29, which allowed goods valued at $800 (€682) or less to enter the country without any tariffs. Given all these trade barriers with the US, Chinese exporters may turn their eyes towards the EU — where trade relations are less volatile. China is the EU's second largest trading partner for goods after the US. During 2024, the EU imported €519bn worth of goods from China, the vast majority of which were manufactured goods. In a recent analysis, the European Central Bank (ECB) said the trade barriers now in place between the US and China may result in Chinese exports being redirected to the eurozone. It said in 2018, following Mr Trump's imposition of tariffs on China during his first term, this redirection of goods to Europe was 'significant' with the eurozone 'absorbing the trade displaced by US tariffs'. 'Between 2018 and 2019, eurozone imports from China increased by around 2 to 3%,' the analysis said. The ECB said there were several factors that suggest the eurozone could experience a larger redirection of Chinese exports. 'The composition of Chinese exports to the United States and to the eurozone is similar, making the eurozone a natural alternative,' the ECB said. 'Established supply chain links, which have expanded since the last China-US trade war, and ongoing industrial upgrades in China, facilitate the redirection of trade flows. Many euro area firms already rely on Chinese imports, making it easier to absorb redirected goods.' It also pointed out that Chinese businesses have already laid the groundwork for faster market entry into the EU, having 'almost tripled their presence with investments in European sales and distribution networks since 2017'. 'In addition, Chinese authorities have pledged targeted support to help affected exporters redirect sales to domestic or third markets, which could allow for further price cuts,' the ECB said. A crane picks a container from a truck at the Manila North Harbour Port in Manila, Philippines on Thursday, Aug. 7, 2025. (AP Photo/Aaron Favila) The bank added that increasing exports from China to the eurozone has the potential to exert downward pressure on eurozone inflation through lower import prices. In its upper estimates, the ECB suggests these tariffs could increase imports from China by 10%. While most products that make it to the EU are just made in China by large international companies, the growth of Chinese brands beyond the country's borders is becoming more common. Companies like Shein and Temu are getting a stronger foothold in the EU. Getting an idea of Shein's growing popularity can be difficult as it is a privately-owned company. According to Bloomberg News, during the first quarter of this year, the overall Shein Group reportedly generated global revenue of $10bn, with net income rising to over $400m. This was before Mr Trump implemented tariffs on Chinese imports. The Bloomberg report cited unnamed sources from the company but Shein disputed these figures without elaborating. The clothing retailer, founded in mainland China but headquartered in Singapore, does not disclose its financial figures so it is unclear how Shein fared in the second quarter after tariffs were implemented. Financial documents from Shein's Irish arm Infinite Styles Ecommerce, which handles the company's operations across the EU, show it is having considerable success in the EU. In 2023, the company reported revenue of €7.68bn — up from €4.58bn the year prior. This resulted in profit of just under €100m — up from €45.8m the year before. Also, Shein's sales in Britain, while not being in the EU, has also grown significantly — with the company reporting a 32.3% increase in revenue during its most recent financial year to £2.05bn (€2.374bn). The growth of Shein is being seen as a concern as their low cost products and business practices have been heavily criticised in the past. President Donald Trump speaks to reporters aboard Air Force One while en route to meet with Russia's President Vladimir Putin at Joint Base Elmendorf-Richardson, Alaska, Friday, Aug. 15, 2025. (AP Photo/Julia Demaree Nikhinson) Ms McAlpine said all the 'slick marketing' from companies like Shein has made 'consumers think that they need to buy the products more frequently, and they kind of treat them as disposable'. 'There is rapid turnover of new products again on a weekly basis. It's mainly polyester based, so there's a huge environmental impact there,' she said. 'Fast fashion has always had a very negative impact on the environment. In the last 20 years, global fibre production has doubled, and it's expected to grow if things continue the way they are. The fashion industry is the second biggest consumer of water industry-wide, it's responsible for 10% of global carbon emissions.' Ms McAlpine said all these textiles are going to the dump because they cannot be recycled, due to being plastic based or mixed fibres. She said: 'Shein is selling a lot of products, and they're selling it very cheaply. How do they do this? Well, they do it by putting a lot of pressure on their suppliers at the end of the supply chain, and then those suppliers put pressure on their workers.' She also said that the growing prevalence of Shein also means that retailers here will also try to stay competitive and as prices fall, it will ultimately hurt the worker who makes the product. 'Prices keep falling, and then the garment factories have to respond to the price pressure, and they will cut the most flexible cost, which is wages,' she said. Ms McAlpine said she doesn't blame the consumer, this is an 'extremely profitable industry' and these companies encourage people to be buying and disposing of their clothes on a regular basis. She said: 'I just don't believe consumers woke up in the morning and decided to spend all our money on this. I believe it's the marketing by the companies that have convinced us. They kind of changed our perception of fashion, and they're really good at making us feel bad about ourselves so we buy more.' Ms McAlpine said there are no international standards in regards to regulating these supply chains and there are no health and safety regulations these firms have to follow when sourcing their products. 'I think regulation is important. All the companies went overseas to take advantage of low-cost wages and lax environmental standards and with no commensurate regulation,' she said, adding that these companies eventually got in trouble for issues such as child labour, not paying workers, and environmental issues. She said some companies tried to impose codes of conduct but this hasn't worked: 'I think we cannot leave it up to the companies. Unfortunately, we need legislation, and the EU has been putting in place legislation, but unfortunately, since the Draghi report last September, they're all about cutting the red tape, and they're deregulating everything.' In a statement, Shein said they operate a 'customer-driven, on-demand business model' that allows the company to meet demand 'while reducing overproduction and waste and maintaining affordability at the same time'. In regards to its supply chain conditions, it said it is committed to 'fostering a safe and fair work environment for all of our suppliers' employees'. The company added that it invests time and money into ensuring workers in its supply chain are 'treated fairly', while working with third-party agencies to monitor compliance with local laws and international standards. Temu, on the other hand, has its own problems. Its owner, PDD Holdings, reported a 47% drop in profit during its first quarter of the year amid local competition and global trade uncertainty. Whaleco Technology Limited is the Irish arm of PDD Holdings for the purpose of doing business in the EU. In its latest available financial documents, from 2023, it generated just under €758m in revenue from its operations, resulting in a profit of €38m. Last month, EU justice commissioner Michael McGrath said he was shocked at the toxicity and dangers of some goods being sold to Temu and Shein amid a crackdown on the retail platforms. Among the worst examples cited by Mr McGrath include baby soothers with beads that fall off easily, which pose a choking hazard because they did not have the regulation size hole to enable a baby who did swallow one accidentally to continue to get air. Other goods cited by MEPs include children's raincoats with toxic chemicals, sunglasses with no UV filter, and kids shorts with draw strings longer than regulation length that cause a trip hazard. There were also concerns about certain banned chemicals in cosmetics. EU figures show 12m low-value items coming into the bloc a day, amounting to 4.6bn during 2024 valued at under €150 — double that of 2023 and three times as many as 2022. In an attempt to combat these low value products surging into the bloc, the EU is considering whether to close its own de minimis exemption, set at €150. They're good at making us feel bad about ourselves so we buy more
RTÉ News
14 hours ago
- RTÉ News
Trump-Putin summit yields no deal on ending war in Ukraine
A highly anticipated summit between US President Donald Trump and Russian President Vladimir Putin yielded no agreement to resolve or pause Moscow's war in Ukraine, despite both leaders describing the talks in Alaska as productive. During a brief appearance before the media following the nearly three-hour talks, the two leaders said they had made progress on unspecified issues. But they offered no details and took no questions, with the normally loquacious Mr Trump ignoring shouted questions from reporters. "There were many, many points that we agreed on. I would say a couple of big ones that we haven't quite got there, but we've made some headway," Mr Trump said, standing in front of a backdrop that read, "Pursuing Peace". "There's no deal until there's a deal," he added. The talks did not initially appear to have produced meaningful steps toward a ceasefire in the deadliest conflict in Europe in 80 years - or toward a subsequent meeting between Mr Putin and Ukrainian President Volodymyr Zelensky, both goals Mr Trump had set ahead of the summit. Mr Putin said he expected Ukraine and its European allies to accept the results of the US-Russia negotiation constructively and not try to "disrupt the emerging progress". "I expect that today's agreements will become a reference point, not only for solving the Ukrainian problem, but will also launch the restoration of business-like, pragmatic relations between Russia and the United States," Mr Putin said. But Mr Putin also repeated Moscow's long-held position that what Russia claims to be the "root causes" of the conflict must be eliminated to reach a long-term peace, a sign he remains resistant to a ceasefire. Following the summit, Mr Trump told Fox News' Sean Hannity that he would hold off on imposing tariffs on China for buying Russian oil after making progress with Mr Putin. He did not mention India, another major buyer of Russian crude, which has been slapped with a total 50% tariff on US imports that includes a 25% penalty for the imports from Russia. "Because of what happened today, I think I don't have to think about that now," Mr Trump said of Chinese tariffs. "I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now." Mr Trump has threatened sanctions on Moscow as well, but has thus far not followed through, even after Mr Putin ignored a Trump-imposed ceasefire deadline earlier this month. In the Fox News interview, Mr Trump also suggested a meeting would now be set up between Mr Putin and Ukrainian President Volodymyr Zelensky, which he might also attend. He gave no further details on who was organising the meeting or when it might be. There was no immediate reaction from Kyiv to the summit, the first meeting between Mr Putin and a US president since the war began. 'Gotta make a deal' Mr Trump signalled that he discussed potential land swaps and security guarantees for Ukraine with Mr Putin, telling Mr Hannity: "I think those are points that we negotiated, and those are points that we largely have agreed on." "I think we're pretty close to a deal," he said, adding: "Ukraine has to agree to it. Maybe they'll say no." When asked by Mr Hannity what he would advise Mr Zelensky, Mr Trump said, "Gotta make a deal". "Look, Russia is a very big power, and they're not," Mr Trump added. The war has killed or injured well over a million people from both sides, including thousands of mostly Ukrainian civilians, according to analysts. As the two leaders were talking, the war raged on, with most eastern Ukrainian regions under air raid alerts. Governors of Russia's Rostov and Bryansk regions reported that some of their territories were under Ukrainian drone attacks. Mr Zelensky has ruled out formally handing Moscow any territory and is also seeking a security guarantee backed by the United States. Mr Trump said he would call Mr Zelensky and NATO leaders to update them on the Alaska talks. Ukraine's opposition lawmaker Oleksiy Honcharenko said on the Telegram messaging app, "It seems Putin has bought himself more time. No ceasefire or de-escalation has been agreed upon." Czech Foreign Minister Jan Lipavsky said in a statement that he welcomed Mr Trump's efforts but doubted Mr Putin's interest in a deal. "If Putin were serious about negotiating peace, he would not have been attacking Ukraine all day today," he said. The anticlimactic end to the closely watched summit was in stark contrast to the pomp and circumstance with which it began. When Mr Putin arrived at an Air Force base in Alaska, a red carpet awaited him, where Mr Trump greeted Mr Putin warmly as US military aircraft flew overhead. For Mr Putin, the summit - the first between him and a US president since Russia's full-scale invasion of Ukraine in 2022- was already a big win, regardless of its outcome. He can portray the meeting as evidence that years of Western attempts to isolate Russia have unravelled and that Moscow is retaking its rightful place at the high table of international diplomacy. Mr Trump hopes a truce in the 3.5-year-old war that Mr Putin started will bring peace to the region as well as bolster his credentials as a global peacemaker worthy of the Nobel Peace Prize. Mr Putin is wanted by the International Criminal Court, accused of the war crime of deporting hundreds of children from Ukraine. Russia denies the allegations, and the Kremlin has dismissed the ICC warrant as null and void. Russia and the United States are not members of the court. Both Moscow and Kyiv deny targeting civilians in the war. But thousands of civilians have died in the conflict, the vast majority Ukrainian, and the war has killed or injured well over a million people from both sides. 'Counting on America' Mr Trump and Mr Putin, along with top foreign-policy aides, conferred in a room at an Air Force base in Anchorage, Alaska in their first meeting since 2019. Mr Zelensky, who was not invited to the summit, and his European allies had feared Mr Trump might sell out Ukraine by essentially freezing the conflict and recognizing - if only informally - Russian control over one-fifth of Ukraine. Mr Trump had sought to assuage such concerns ahead oof the talks, saying he would let Ukraine decide on any possible territorial concessions. "I'm not here to negotiate for Ukraine, I'm here to get them at a table," he said. Asked what would make the meeting a success, he told reporters: "I want to see a ceasefire rapidly ... I'm not going to be happy if it's not today ... I want the killing to stop." The meeting also included US Secretary of State Marco Rubio; Trump's special envoy to Russia, Steve Witkoff; Russian foreign policy aide Yury Ushakov; and Foreign Minister Sergei Lavrov. Mr Trump, who once said he would end Russia's war in Ukraine within 24 hours, conceded on Thursday it had proven a tougher task than he had expected. He had said if talks went well, quickly arranging a second, three-way summit with Mr Zelensky would be more important than his encounter with Mr Putin. Mr Zelensky said ahead of the summit that the meeting should open the way for a "just peace" and three-way talks that included him but added that Russia was continuing to wage war. "It's time to end the war, and the necessary steps must be taken by Russia. We are counting on America," Mr Zelensky wrote on Telegram.
