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Sources say that Novatek, a Russian company, offers deep discounts on LNG sanctioned to Chinese buyers.
Sources familiar with the matter say that Novatek, a Russian producer of liquefied natural gases, has reduced the price of its cargoes between 30% and 40% since August in order to encourage Chinese buyers to buy sanctioned gas produced by its Arctic LNG 2 Project. The purchase has ended the commercial limbo of the $21 billion project that is subject to the most severe sanctions the U.S., Europe and Russia have imposed against Russia. Washington wants to stop the flow of oil revenue into Kremlin bank accounts as U.S. president Donald Trump increases pressure on Moscow to end their war in Ukraine. The White House also threatens to take action against countries who continue to purchase Russian energy exports. But China, which has been a close ally to Russian President Vladimir Putin for many years, is opposed to Western sanctions. It could be difficult to crack down on Chinese companies that violate them. Washington struck a delicate ceasefire in its trade dispute with Beijing only last month. A senior industry source stated that enforcing these measures could undermine U.S. plans to do its own LNG deals. DEEP DISCOUNTS DRAW CHINESE BUYERS TO PUTIN'S LINKED PROJECT Novatek, a company co-owned with some of Putin's closest ally, began producing LNG in the plant as early as December 2023. It failed to sell any cargos until August of this year when it cut prices for Chinese buyers. According to a source familiar with the transaction, the gas producer sold the first cargo delivered on 28 August at a discount between $3 and $4 from the Asian LNG benchmark price of $11 per mmBtu. A second source familiarized with the deals stated that Chinese buyers continue to receive steep discounts between 30% and 40% for subsequent deliveries. This means that cargoes sell for $28 to $32 millions, which is well below the market value of $44 million. Prices of the cargoes were not previously disclosed. The names of the Chinese firms that purchased them have not been revealed. Novatek has not responded to a comment request. WASHINGTON IS NOT ENFORCING THE SANCTIONS IT HAS IMPLIED Many of the oil and gas produced by Moscow are not directly affected by Western sanctions. China is Moscow's largest buyer of energy exports. Joe Biden's predecessor, Trump, had imposed sanctions against Arctic LNG 2 and related entities, as well as vessels, shortly after the company began operating in December 2023. TotalEnergies, the French partner, subsequently pulled out of the project. However, two of China's biggest energy companies - China National Petroleum Corp. and China National Offshore Oil Corporation each retained a 10% stake. The sanctions have also stymied Russian hopes to acquire a fleet Arc7 ice class tankers for year-round deliveries. According to traders, until August, Novatek spent millions of dollars on storage units and floating cargoes. Trump has made the end of the conflict in Ukraine his top foreign policy priority. To pressure Moscow into negotiations, Trump has increased U.S. sanctions against Russian energy. He also urged allies to do so. And he threatened countries that buy Russian exports such as India with steep tariffs. Washington has so far not taken any action to punish Chinese companies involved in Arctic LNG 2 purchases. They are pressing their allies not to import Russian LNG or gas. They are not implementing sanctions on Arctic LNG 2," Anne-Sophie Corbeau said, a researcher with Columbia University's Center on Global Energy Policy. The White House didn't respond to an inquiry asking whether the administration was worried about the LNG purchases, and if any efforts were being made to discourage or stop the transactions. The two senior sources in the industry said that the Chinese government had approved the purchase. The Chinese business registration portal shows that the Beihai LNG Terminal, in southern China, where the cargoes will be delivered, is operated by the state-owned energy infrastructure giant PipeChina. The office of the spokesperson for the Foreign Ministry did not comment directly when asked if China gave any guidance on the imports, or if they were concerned that Washington could impose sanctions against PipeChina, who runs the majority of the country's infrastructure in oil and gas. However, they reiterated China’s opposition to unilateral sanction and "long arm jurisdiction". The spokesperson's office stated that "energy cooperation between China and Russia" is a normal economic and commercial cooperation benefiting both countries. BEIHAI BECOMES CHINA’S DEDICATED RUSSIAN IMPORT TERMINAL Beihai was a mid-sized gas terminal that had previously been used to import LNG from various companies and sources, including eight cargoes of U.S. Liquefied Natural Gas in 2024. A third Chinese source with direct knowledge on the issue said that since August, PipeChina refused to allow other companies to access Beihai. This has effectively turned into a dedicated entry for Russian gas. In October, the UK government imposed sanctions against Beihai. PipeChina has not responded to any requests for comment. Trump has also expressed his desire to sell LNG to China. He has done this repeatedly, integrating American energy exports in trade agreements with partners who are seeking to lower U.S. tariffs. Western energy executives who sell gas to China said that the United States would have a hard time sanctioning PipeChina because it would also block U.S. sales. Due to the tariffs that were imposed in the trade war between two of the largest economies, China hasn't imported any U.S. LNG from February.
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Tesla receives a permit in Arizona to operate as a transport network company
A state regulator announced on Tuesday that Tesla had received a permit for it to operate in Arizona as a transportation company. This is a major step in expanding its robotaxi service. Tesla will be able to operate a ride-hailing business similar to Uber and charge its passengers with the TNC permit, but it won't be able drive driverless cars. Tesla received a state permit in September for testing its autonomous vehicles using a safety driver. The process was a self certification. The company also applied for the right to conduct tests without a driver. The robotaxi industry is on the rebound after years of broken promises, company closures and tight regulations. Tesla launched its robotaxi service this year in Austin, Texas. The vehicle features a safety monitor on the front passenger's seat. Elon Musk, the CEO of Tesla, said that the company would expand its robotaxi service to include about half of the U.S. by the end this year. Tesla operates a chauffeur service in San Francisco Bay operated by humans and has a Nevada permit to test its automated vehicles on public roads. The Arizona Department of Transportation announced that Tesla met all the requirements for the Arizona TNC permit and received it on November 17. (Reporting from Akash Sriram and Abhirup in Bengaluru; Editing by Alan Barona, Bill Berkrot and Bill Berkrot).
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Mexico's ASUR purchases Motiva's Latin American Airports in a $2.2 billion deal
Motiva announced on Tuesday that Mexico's Grupo Aeroportuario del Sureste signed a deal to purchase the Brazilian infrastructure operator Motiva's airport portfolio for $11.5 billion (about $2.16 billion), which includes net debt. ASUR will pay ASUR 5 billion reais to acquire Motiva's airport stake, with the remainder being paid through net debt. This is according to a filing by Motiva. The sale is still subject to antitrust approvals. It includes Motiva's stakes at 17 Brazilian airports as well as international hubs located in the capital of Ecuador, Quito, Costa Rica, and Curacao. Motiva says that these airports serve about 45 million passengers a year. Reports earlier this month citing two different sources indicated that ASUR was the top bidder for Motiva's Airport Portfolio. Motiva expects to reduce its net debt leverage from 3.5 to less than 3 after the deal. ($1 = 5,3218 reais). (Reporting and editing by Luciana Magnhaes, Andre Romani)
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Spirit Airlines unions accept pay cuts for pilots and flight attendants
The unions that represent Spirit Airlines flight attendants and pilots announced on Tuesday they had reached an agreement for the company to reduce pay and benefits as it tries its best to cut costs in the ongoing Chapter 11 restructuring. The amended collective bargaining agreements, which are subject to member and court approval, include snapbacks timed for when the ultra-low-cost-carrier expects to be profitable again. Spirit filed for bankruptcy in August for the second consecutive year. It said that it expected to continue reporting losses until 2027. Air Line Pilots Association has said that it has accepted Spirit's plan to reduce the hourly wage by 8%, and to cut its retirement account contribution by half (from 16% to 8%). The revised collective bargaining agreement will run from 2026 to 2027. The airline agreed that it would restore pilots' salaries in stages, starting August 2028. A 4% increase will be given in August 2028 and another 4% in January 2029. By July 2029, retirement contributions will be back to 16%. Spirit declined to comment on a request. In a memo, the flight attendants' union recommended that its members vote for the agreement. The agreement would take effect at the start of 2026. The union that represents Spirit Airlines flight attendants says the contract changes will protect the base pay and health benefits. The Association of Flight Attendants and CWA have agreed to reduce the incentive overtime pay to one time from 1.5 times. They also eliminated ground holding pay. In July 2027 the overtime pay threshold will increase to 95 credit hours, up from 85. Spirit Airlines has agreed to return to the original terms of the labor agreement for flight attendants once the company achieves an adjusted pre-tax profit margin of 7.5% or more in three consecutive quarterly periods. Reporting by Doyinsola Oladipo in New York, Editing by Alistair Bell
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US airline group asks Congress to pay controllers for future shutdowns
The head of the trade group that represents major U.S. Airlines will call for an end to aviation disruptions caused by government shutdowns, and ensure air traffic controllers are paid. Airlines for America will present a U.S. government report on behalf of American Airlines, Delta Air Lines and Southwest Airlines. Senate Commerce Aviation Subcommittee said that the 43-day shutdown of the government and flight restrictions imposed by government disrupted six million passengers and 50,000 planes because of an increase in air traffic controller absenteeism. This shutdown has shown the severe safety, human and financial consequences of subjecting aviation to such stress and chaos. According to Chris Sununu's written testimony, A4A CEO Chris Sununu is going to say that it must never happen again. Nick Daniels, President of the National Air Traffic Controllers Association, also supported legislation that would ensure controllers are paid even during shutdowns. Daniels testifies that "we cannot continue to ask the air traffic controllers, their families and Congress to carry the burden of policy differences in Congress." In response to aviation safety concerns, the FAA imposed unprecedented flight restrictions at 40 major U.S. Airports on November 7. These restrictions were lifted on Monday. These restrictions resulted in 7,100 cancellations of flights and affected 2.3 million passengers. The FAA reduced the requirement for domestic flight cuts from 6% down to 3% late Friday. Even after the reduction, the major U.S. carriers did not meet the required flight cut requirements at U.S. Airports. Cirium, a firm that analyzes aviation data, says carriers cancelled just 0.25 percent of flights on Sunday at these 40 airports. This is less than the normal cancellation rate. The FAA may seek an up to $75,000 fine for each flight that exceeds the limits mandated. About 3,500 controllers are not enough to meet the FAA's target staffing levels. Before the shutdown, many controllers had worked mandatory overtime. Last year, 40% of FAA sites operated six days per week at least one time per month. (Reporting and editing by David Shepardson)
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California refinery closings spark race for pipeline to West Coast
Energy companies are racing to build a major pipeline that will carry fuel to the U.S. West Coast. This could be a lucrative endeavor, as the closure of two Californian refineries is expected to drive up gasoline prices on this isolated market. West Coast motorists have been paying some of the highest fuel prices in the nation due to the limited regional production and the lack of connectivity to the Gulf Coast refinery hub. According to the Energy Information Administration, there are no pipelines that deliver fuel from the Gulf Coast to California and few that do so from across the Rocky Mountains. Phillips 66 began to wind down its Los Angeles refinery in September, and Valero Energy plans to shut their Benicia refinery in April. This will cause more price shocks but also present an opportunity for pipeline operators. Three groups have put forward different ideas to fill the void created by the closures, which is approximately 280,000 barrels per day. Three groups have put forward different proposals to fill the void created by the closures. These include refiner HF Sinclair and ONEOK's pipeline unit, as well as a partnership between Phillips 66, a refiner, and midstream-focused Kinder Morgan. The first company to make a final decision on investment could be the only one who can secure a multi-billion dollar windfall, because multiple pipelines along the West Coast will eat away at each other's margins. These margins are already restricted due to California being a waterborne importer. Skip York, Turner, Mason & Co.'s chief energy strategist, said that when multiple pipeline projects are proposed at the same moment, only one is usually completed. POLITICAL FOCUS OPENS RARE WINDOWS The planned refinery closings have placed intense pressure on California Governor Gavin Newsom, to stop fuel price increases. This has created a rare opportunity for approval of fossil fuel projects in a state which has long been critical of "Big Oil". Alec Gravelle, an East Daley analyst, said that given the reaction to refinery closings it is hard to imagine any resistance to new projects. York explained that the majority of financing for pipeline construction comes from capacity commitments. Securing at least 70% could determine which project moves forward. Scotiabank analyst Paul Cheng says that Western Gateway – the Phillips 66 Kinder Morgan project – and HF Sinclair’s proposal have an advantage because the refiners could ensure some of the supply. No one has yet made any commitments to capacity. Phillips 66 refused to comment on competing West Coast Pipeline proposals. Other proponents didn't immediately respond to comments. Debnil Chowdhury is the head of Americas & European Refining for S&P Global Commodity Insights. She said that proposals reusing existing line may also be more likely to move forward than new builds, because regulatory approval could be easier. Western Gateway and HF Sinclair plan parts that use existing lines. RIVAL REFINERS BET WATERBORNE FUELS While a new pipe could provide some stability for regional gasoline prices in the future, refinery executives have questioned if any will be built. They cited California's ability to access waterborne fuels. "In terms the pipelines which are rumored will come into the area, that is a big if", said Rick Hessling. He added that the timing and the transportation costs of waterborne barrels were more important than pipelines. Gary Simmons, Valero Energy's Chief Operating Officer, said in a call with investors last month that the company is unlikely to sign a long-term agreement for shipping services. Simmons, speaking of price arbitrage opportunities, said: "We prefer the waterborne option as it allows us to get barrels anywhere in the globe and to take advantage of the international arbs which can be available."
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Spain's eDreams lowers its earnings guidance due to a slowdown in prime subscriber growth
The Spanish travel booking company eDreams Odigeo cut its earnings forecasts for 2026-2027 on Tuesday due to a slower growth of its prime member base. The Barcelona-based firm revised its guidance and now expects earnings before interest taxes, depreciation, and amortization to reach 155 millions euros ($179million) for the fiscal period ending March 31, 2026 and 115 million euro in 2027. This was down from an earlier estimate of 180 million euros in 2026. The company attributed its lower outlook to the reduced revenue from its prime segment after adopting a monthly and quarterly payment option instead of an annual model. Despite a slowdown in the growth of its Prime membership, eDreams has reported an 18% increase in subscribers year-on-year, reaching 7,7 million users. This is a slowdown from the 20% growth in the prior quarter. Investor confidence was affected by the slowdown of its main revenue driver last quarter Shares of the company fell by 16%. The net profit grew to 17.9 millions euros ($20.7million) from 2.5 million euro a year ago. While subscriptions in other industries such as music and television are quite common, eDreams was the first to introduce a membership-based model that allows customers to book discounted airline tickets and hotels through their website. The subscription model, which was launched in 2017, has been a major driver of profitability for the group and an important factor in its recovery after the ravages the pandemic caused to the tourism industry. The company plans to invest in new markets to increase its Prime membership growth. (1 dollar = 0.8639 euro) (Reporting and editing by Matt Scuffham in Gdansk)
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Mota-Engil's Mota-Engil profits jump 20% and order book hits record
Mota-Engil is Portugal's largest building company. Its net profit for the nine-month period rose by 20%. This was due to growth at its African unit. The global order backlog also reached a new record. The builder that operates in over 20 countries across Africa, Europe, and Latin America posted a net income of 90 million euro ($104 million) for the period. This is up from 77 millions euros last year. The African unit's revenue rose 57%, to 1.6 billion Euros, despite a 1.4% decline in sales. This was "driven by the doubled activity" of industrial engineering work, which included the mining sector. After two years of growth, sales in Latin America dropped by 29% in a "transitional period", to 1.6 billion euro. Sales in Europe fell by 27%, to 334 millions euros following the sale of their Polish operations in September. The EBITDA margin increased to 17%, from 15%, a year earlier. EBITDA for the African unit increased by 62%, to 405 millions euros. The margin was 25%. Mota-Engil is owned by the Mota Family at 40% and China Communications Construction Company at 32,41%. The order backlog has reached a new record of 15,7 billion euros. This was up from 14,7 billion euros in June. The backlog does not include contracts signed in Brazil or Mexico after September. This "guarantees visibility over several years, and supports strong, profitable growth for the future."
Trump's trade battle with China in 2025
U.S. president Donald Trump targeted China, the top economic rival with a cascade tariff order on billions in imported goods. The orders were aimed at narrowing an enormous trade deficit, bringing manufacturing back and crippling fentanyl traffic.
The reverse chronological timeline below shows the U.S. - China trade war in this year.
China starts collecting port fees for vessels with a U.S. connection on October 14. Ships built in China are exempted. On the same date, the U.S. will also implement an additional port fee for Chinese ships.
Beijing claims it informed Washington about its new rare earths control measures before announcing them on October 9. It also says that the issue was discussed at the working level as recently as 13 October. Beijing criticizes the U.S. because it wants to talk while making threats.
Scott Bessent, U.S. Treasury secretary, says that plans for Trump to meet Chinese President Xi Jinping on the sidelines the Asia-Pacific Economic Cooperation Forum in South Korea in late October are still on track.
He said that there were many meetings between the two countries and they had been in contact over the weekend.
U.S. trade representative Jamison Greer said that after China announced it would expand its rare earths export control, the U.S. had reached out to China via phone but Beijing declined. China criticizes the new U.S. trade tariffs and defends their export restrictions.
On October 10, Trump re-starts the trade war by imposing additional tariffs of 100% on China’s U.S. bound exports and new export controls for "any critical software" on November 1. This will end an uneasy truce that was reached between both countries in August.
Trump has said that there is no need to meet with Xi, but he also did not cancel the plans to meet.
Trump says that the United States may also impose export controls for Boeing parts in response to China's export restrictions on rare earth minerals.
China has launched an antitrust investigation against U.S. chip manufacturer Qualcomm for its acquisition of Israeli chip designer Autotalks.
China will begin charging port fees for vessels owned, operated, constructed, or flown by the United States as a countermeasure against U.S. fees charged on ships with ties to China starting on October 14.
China will expand its export controls on rare earths starting November 8, to include five additional medium-to-heavy rare earth elements. It has also increased scrutiny of semiconductor users. This is a further tightening of China's grip and dominance over the minerals that are key to the energy transformation.
The Trump administration wants to ban Chinese airlines from flying above Russia on routes between the United States and Russia, claiming that the shorter flight times put American carriers at an unfair disadvantage.
Trump hopes to discuss soya beans with Xi, but warns that the U.S. could halt a significant share of its imports from China.
U.S. lawmakers demand broader bans for chipmaking equipment exported to China following a bipartisan report that found Chinese chipmakers purchased sophisticated gear worth $38 billion last year.
Trump said that soybeans will be a main topic of conversation when he meets Xi on October 1. China has drastically reduced U.S. purchases of soybeans, which Trump called a negotiation strategy.
Greer said that around 55% of tariffs applied to Chinese imports is a "good state-of-the-art" but the U.S. wanted bilateral trade to be more free. However, she did not indicate any immediate moves towards lowering Trump’s tariffs.
Bessent, a Bessent, says that aircraft parts and engines, as well as certain chemicals, can be a powerful tool for the United States to use in negotiations with China.
The first time since 2019 that a group of U.S. House of Representatives lawmakers visited China to talk, is on September 21. The group said to Premier Li Qiang that both the largest economies in the world need to "break the ice" and increase engagement.
September 19 - Trump holds a telephone call with Xi, following which Trump says they have made progress in a TikTok deal and will meet face-toface in South Korea in six weeks to discuss trade and illicit drugs, as well as Russia's conflict in Ukraine.
China has welcomed the commercial negotiations on TikTok that are in line with market rules.
China announces that it will review TikTok’s technology exports, and its intellectual property licensing. It calls the framework agreement reached "win-win".
September 15 – U.S. and China agree on a framework to transfer TikTok under U.S. control. This decision will be confirmed by Trump and Xi in a phone call later this week.
Bessent said that the Trump administration would not impose tariffs on Chinese products over Russian oil imports, unless European countries imposed tariffs first.
September 14 - Bessent, China's Vice Premier He Lifeng and the Spanish government lead a fourth round in Madrid of discussions to discuss trade relations as well as TikTok’s impending divestiture deadline.
Trump and his administration ask the G7, EU, and NATO to put pressure on China to impose tariffs between 50% and 100% in order to stop Russian oil revenues.
U.S. and China extend tariff truce by another 90 days.
August 10 - Trump asks China to quadruple their soybean purchases from the U.S., as the expiration date of the trade truce is approaching on August 12.
U.S. begins issuing licenses to Nvidia for exporting H20 chips to China on August 8.
Bessent is "optimistic", according to Bessent, about the future.
After two days of discussions in Stockholm, U.S. officials and Chinese officials agreed to extend their 90-day truce on tariffs. The talks were described as constructive by both sides, but there was no significant breakthrough.
U.S. Commerce secretary Howard Lutnick announced that Nvidia will resume sales of their advanced AI H20 chip to China in the U.S. rare earths negotiations, reversing an export ban by the U.S. in April.
Trump threatens to impose an additional 10% tariff against countries that he says are aligning themselves with "Anti-American Policies" of BRICS. This includes China.
Bessent reports that the U.S. has resolved its issues with China regarding rare earth minerals, magnets and shipments into the U.S.
From June 11-12, some Chinese rare earths producers will begin receiving export licenses. Trump announces that a truce on trade is now back on track.
The U.S.A. and China have a second round of negotiations in London, and they reach an agreement on a framework.
June 5, Xi and Trump have a phone call lasting an hour.
Trump claims that China has violated the Geneva agreement to reduce tariffs and Chinese restrictions on vital minerals exports. China denies the accusation and says the U.S. has introduced multiple "discriminatory" restrictive measures against China.
The U.S. will begin "aggressively," revoking Chinese student visas on May 28-29. The order also instructs a wide range of companies to cease shipping semiconductors, aviation equipment and design software to China.
Beijing and Washington have trade talks in Geneva over the weekend, May 10-12. Both sides issued a joint declaration agreeing to a 90 day pause in tariffs.
Tariffs between the U.S. and China will drop from 145% to 30%, while tariffs between China and the U.S. will be reduced to 10% from 125%. China has also agreed to remove non-tariff measures that have been imposed on the United States by China since April 2.
Nvidia reveals that U.S. officials told it that the H20 chip will require an export license for sales in China.
China raises its tariffs on U.S. imports to 125%. It calls the Trump tariff strategy "a joke", and says it won't play any more "numbers games" with tariffs.
China announced that it would immediately restrict the importation of Hollywood movies on April 10.
China increases levies on U.S. imported goods to 84%, adds 12 U.S. firms to a list of companies that are prohibited from exporting dual-use products, and six additional U.S. entities to the "unreliable entity" list. This allows Beijing to take punitive measures against foreign entities.
The U.S. has increased tariffs on Chinese imports from 84% to 125%. China warns citizens not to travel to the U.S.
Tariffs for all Chinese imports are raised to 84%, up from 34% on April 8.
April 4: China announces that it will impose retaliatory duties of 34% on U.S. imports starting April 10, and export restrictions on certain rare earths. About 30 U.S. companies, mostly involved in the defence industry, were subject to restrictions.
Beijing has also suspended sorghum and poultry products from certain U.S. companies.
Trump increases global trade friction by imposing "liberation day tariffs" on April 2. He announced a 10% baseline for all imports as well as significantly higher duties against some countries. Trump will impose 34% tariffs on all Chinese products, which are set to go into effect on April 9th.
From May 2, the Trump administration will also end duty-free access to low-value shipments of goods from China and Hong Kong (known as "de minimis exemptions").
China retaliates with a 10-15% levied on U.S. agricultural exports. This affects about $21 billion of U.S. exports. Beijing also imposes restrictions on exports and investments for 25 U.S. companies, citing national security. It also bans the import of genetic sequencers made by U.S. medical device maker Illumina.
March 4 - U.S. increases tariffs by 20% on all Chinese imports.
China has responded with a range of measures that target U.S. companies, including Google and farm equipment manufacturers.
Beijing will also begin imposing levies on February 10 of 10% for some autos and crude oil, and 15% on the imports of coal and LNG from the United States. Beijing also imposes a 15% tax on imports of U.S. coal and LNG, as well as a 10% duty for crude oil and some autos. The new taxes will be implemented starting February 10.
Trump imposes tariffs of 10% on Chinese goods and 25% on those from Mexico and Canada on February 1, demanding that they reduce the flow fentanyl, illegal immigrants and other drugs into the U.S.
January 21: A day after taking the oath of office, Trump threatens to impose a 10% duty on Chinese imports. He cites the fentanyl coming from China. Reporting by Liz Lee, Shi Bu and Jacqueline Wong; Editing by Ronojoy Mazumdar, Kate Mayberry and Jacqueline Wong
(source: Reuters)