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Panayiotou stresses need to tackle drought in agriculture at EU Council

Minister for Agriculture, Maria Panayiotou, talked about the effects of drought on Cyprus, as well as the measures that the EU can take to support the agricultural sector across Europe, and presented the recent joint statement by the MED9 on the issue, during the Agriculture and Fisheries Council of the EU held in Brussels.

During a discussion on the state of agricultural markets in the EU, Panayiotou referred to the significant impact that a prolonged drought has had on Cyprus, resulting in significantly reduced yields for irrigated and non-irrigated crops, the Ministry of Agriculture, Rural Development and Environment said in a press release on Wednesday.

The Minister, the press release adds, “pointed out that, due to limited water availability in dams, water supply for agricultural purposes has been reduced by 33.7% for 2024, while the forecasts for the following years are not favourable.”

Panayiotou called on the European Commission to activate the agricultural reserve to provide support to affected farmers, but also to further simplify support measures related to water management under the Common Agricultural Policy.

During the meeting, the Minister also presented the joint statement on the impact of drought on the primary sector, which was issued by the Ministers of Agriculture of the nine Mediterranean EU Member States (MED9) during a recent meeting in Cyprus.

Panayiotou referred specifically to the need for a collective response to this phenomenon that threatens food production and the social fabric of rural areas in the EU and pointed out that the joint statement reflects the practical commitment of the Mediterranean Member States to find solutions that will allow sustainable water management and will be included in EU policies.

According to the press release, the joint communication of the MED9 received the support of other Member States, in addition to the countries that had signed it in Cyprus.

During a working lunch, Professor Peter Strohschneider presented his report on the results of the strategic dialogue on the future of agriculture, which was presented in early September at a joint press conference with European Commission President Ursula von der Leyen.

Panayiotou said she supports the need to further target support for farmers, with a focus on small and medium-sized farms and young farmers, as mentioned in the report. She also stressed the importance of promoting new technologies and innovation in agricultural production.

She also noted that the proposal to create two funds independent of the CAP, such as the fair transition fund and the nature restoration fund, should not limit appropriations which will be available through the next CAP in the future.

The Agriculture Minister said that Cyprus agrees with the proposed reform of the agricultural reserve, pointing out the need for a more flexible crisis management framework that will provide adequate support to farmers and allow for faster and simplified procedures, adapted to local needs and specificities.

Oracle Beats Forecasts With Robust Q4 Growth And Bold AI Investment Strategy

Earnings And Revenue Outperformance

Oracle reported better-than-expected earnings and revenue for its fiscal fourth quarter while raising its annual profit forecast. Adjusted earnings per share came in at $2.03, surpassing LSEG consensus estimates of $1.96. Total revenue reached $19.18 billion, topping the anticipated $19.10 billion. With a year-over-year revenue growth of 21%, the company continues to demonstrate resilient performance despite market headwinds.

Strategic AI Financing And Investment

In a bid to accelerate its artificial intelligence initiatives, Oracle announced plans to secure an additional $40 billion through debt and equity financing, including a previously revealed $20 billion share sale. This follows substantial capital raises in fiscal 2026, which raised concerns about the viability of expanding AI demand. The move underscores Oracle’s commitment to scaling its AI infrastructure, a strategic choice that Chief Executive Officer Clay Magouyrk highlighted during a recent conference call.

Cloud Infrastructure And Software Revenue

Cloud services remained the company’s main growth driver. Revenue from cloud offerings increased 47% to $9.91 billion, while cloud infrastructure revenue surged 93% to $5.8 billion. Software revenue, including licences and support services, declined 2% to $6.82 billion.

Performance Obligations And Capital Expenditures

Remaining performance obligations (RPO) reached $638 billion as of May 31, representing a 363% increase from the previous year. Oracle attributed much of the growth to new AI-related contracts, including agreements involving prepayments for graphics processing units.

Management expects nearly one gigawatt of computing capacity to be operational during the current quarter. Net capital expenditures are projected to reach approximately $70 billion in fiscal 2027, excluding customer prepayments and timing-related adjustments.

Guidance And Leadership Updates

Oracle maintained its fiscal 2027 revenue forecast of $90 billion and raised its adjusted earnings per share outlook to $8.05, slightly above analyst expectations. For the fiscal first quarter, the company expects adjusted earnings of between $1.72 and $1.76 per share and revenue growth of 27% to 29%. In a leadership change, Oracle appointed former Schneider Electric executive Hilary Maxson as Chief Financial Officer. The company also recently secured funding for a $16 billion data centre project in Michigan.

Market Response And Future Outlook

Oracle shares initially fell in extended trading following the financing announcement, but have gained approximately 3% since the beginning of the year. Investors are closely watching whether the company’s expanding AI infrastructure investments and growing contract backlog will support future revenue growth.

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