Latest News
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Alstom wins 2 billion euro deal from New York Metropolitan Transportation Authority
Alstom, a French train manufacturer, announced on Friday that it received a $2.45 billion order from the New York Metropolitan Transportation Authority for M-9A railcars to be supplied to the Long Island Rail Road (LIRR) and Metro-North Railroad. Alstom announced that the contract, which MTA announced in June, would be booked during the second quarter 2025/26 fiscal years. MTA announced last month that Alstom pilot railcars would be delivered by 2029, and will enter service on Long Island Rail Road as passenger cars in 2030. It added that all 316 railcars included in this order would be delivered by the year 2032. There are 160 cars for Long Island Rail Road, and 156 cars for Metro-North Railroad. MTA Chairperson and CEO Janno Lieber stated in June that this deal was a first step in the agency’s plan to buy nearly 2,000 railcars in its $10.9 billion capital program.
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Air France-KLM acquires majority stake in Scandinavian Airlines SAS
Air France-KLM announced on Friday that it intends to increase its stake in Scandinavian Airlines SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. Air France-KLM stated that the purchase is subject to regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing based on SAS’s most recent financial performance including EBITDA, net debt and other metrics. The Scandinavian carrier welcomed the announcement and called it a "defining" moment that marked Air-France KLM’s commitment to strengthening SAS. Anko Van der Werff, SAS CEO, said: "It will not only bring stability but also deeper industrial integration as well as the full support of one of the leading airline groups in the world." Together, we'll be better positioned for greater value to customers, colleagues and the region. SAS has said that it will continue to invest in the fleet and network. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs to. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government will retain its 26,4% stake and its seats. Reporting by Dominique Patton and Bart Meijer; Editing and production by Margueritachoy and Lincoln Feast.
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The Indian Rupee-Trimmed Fed Rate Cut Bets Pull Forward Premiums Off One-Month Peak
The Indian rupee, and the dollar-rupee premiums fell from their one-month highs on Friday. A stronger-than-expected U.S. employment report reduced bets on Federal Reserve rate reductions. Traders were also watching a looming U.S. trade deadline. The rupee fell to 85.50 near the start of trading after hitting a peak for one month on Thursday. It then pared losses and quoted at 85.33, little changed. The rupee was helped by a drop in the dollar index after a previous rise. Asian currencies were mostly in choppy territory. The implied yield on the dollar-rupee 1-year note fell by 5 basis points, to 2.02%. Traders noted that the near forward premiums may also be under downward pressure, as the central bank has not increased the amount of liquidity they intend to withdraw from banks. Many market participants were surprised by this, as they had anticipated a higher quantum due to an increased surplus. The U.S. employment data caused traders to almost wipe out bets on a Fed cut in July. Odds of a cut in September dropped to less than 75%, from nearly 94% prior to the data. The market is waiting for tariff news, said a Mumbai-based trader. He was referring to a deadline of July 9 for countries to reach trade agreements with the U.S. Bloomberg Television reported that the U.S. Treasury secretary Scott Bessent predicted a "flurry of" trade agreements to be announced before the deadline. DBS stated in a report that it is possible to reduce the umbrella tariff on India from the current 10% to a baseline rate of 10% by taking cues and agreements with other countries. As part of the "Liberation Day", reciprocal tariffs on April 2, U.S. president Donald Trump threatened to impose a duty of 26% on Indian goods. This was temporarily reduced to 10% in order to buy more time for negotiations. (Reporting and editing by Jaspreet K. Kalra)
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Air France-KLM acquires majority stake in SAS
Air France-KLM announced on Friday that it intends to increase its stake of Scandinavian airline SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. It said that the purchase is subject to receiving the necessary regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing, and will be based on SAS’s most recent financial performance including EBITDA, net debt, and other factors. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government retains its 26,4% stake and its seat on the board. (Reporting and Editing by Marguerita Chy)
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Air shipments from China to the US are disrupted by the end of the tax-free loophole.
Trade groups and analysts reported that the volume of air cargo shipments from Asia has decreased by double-digits since early May when the U.S. canceled a tax exemption for low value packages coming from China. Data from the International Air Transport Association showed that air cargo demand from Asia into North America fell 10.7% in May, compared to the same month one year ago. This "shows the dampening effects of changing U.S. Trade Policies," said IATA Director-General Willie Walsh in a Monday report. Tax exemptions for shipments under $800, often sent via air to U.S. clients of low-cost online platforms like Shein and PDD Temu, are known as de minimis or "too small to matter". After a trade agreement between the U.S., China and China in mid-May, however, these shipments from China and Hong Kong are taxed as low as 30 percent. The two sides continue to negotiate trade. This week, the U.S. relaxed export restrictions to China on software, ethane, and aerospace, in advance of the U.S. reimposing a wide range of tariffs that will target multiple countries on July 9. Industry experts reported that the volume of low value e-commerce shipping from China to America in May was particularly sharply down. Air cargo consultancy Aevean estimates that such shipments decreased by 43% from the previous month in May, but increased to other major export markets, including Europe and South-East Asia. Marco Bloemen said that it is unclear whether the dramatic drop will continue. Businesses had expected the de minimis stop and the tariff rate has been lowered in the middle of the month. Will those ecommerce players return to the U.S., now that they pay 30% duty instead of zero duty? Bloemen stated. He said that companies turning to other markets because of the uncertainty surrounding U.S. Trade Policy is likely to have a negative impact on shipment volumes. "We expect that trend to continue. More e-commerce to Europe is expected to take place in June, as well as to other markets such Latin America." Air cargo consultancy Rotate stated that e-commerce platforms are focusing on alternative markets to replace the lost U.S. market, with significant growth in exports to Europe and Asia-Pacific. Shein and PDD didn't immediately respond to requests for comment. CARGO CUTBACKS As a result, the cargo business of airlines has seen a boost as low-value ecommerce from Asia is taking a larger share of air freight worldwide. Aevean data shows that in 2018, only 5% of the goods from China were shipped to the U.S. via air. Industry experts say that as demand for trans-Pacific freighter flights fell in May due to the decline of Asia-to-U.S. routes, airlines began moving them elsewhere. They said that some of this demand is now returning as companies are taking advantage of tariff pauses in the U.S.-a number of other countries. However, flight frequencies have been reduced. Cirrus Global advisors, an e-commerce consulting firm, said that some of the bigger players who were chartering 3 flights per week had reduced this to 2. Rotate data revealed that direct freighter capacity between China & the U.S. was 11% less in June compared to the previous month, erasing the growth of capacity in the last year. Dimerco Express, a freight forwarder specializing in Asia, estimated that its online bookings fell by 50% between May and June. In a recent report, the company said that scheduled freighter flights are still being cancelled. The de minimis regulation, which dates back to 1938, was criticized by American legislators as a loophole allowing Chinese products to avoid U.S. tariffs, and allowing illegal drugs and precursors used to create opioid fentanyl, to enter the U.S. without being screened.
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Petroecuador, the state oil company of Ecuador, declares force majeure in its operations
The head of Ecuador's state oil company Petroecuador announced on Thursday that all operations, including crude imports, were suspended after two pipelines important to the company's operation stopped pumping. Heavy rains in Napo, a province of the Amazonian region, have accelerated erosion and threatened infrastructure. The SOTE and OCP pipelines owned by the state suspended pumping this week. Leonard Bruns, Petroecuador's chief executive officer, said: "Force majeure was declared to allow (Petroecuador), to act with all of the necessary tools." Due to the suspension of transport operations, the company said that it has also begun closing down oil wells. According to a report released on Thursday by Ecuador's Hydrocarbons Regulating and Control Agency, the country's crude oil production has fallen about 133,000 barrels per daily (bpd). Since 2020, erosion along the Coca River has spread, damaging oil infrastructure, roads, and now the Coca Codo sinclair hydroelectric facility, the largest one in Ecuador. The authorities said that temporary bypasses on both pipelines are being constructed to resume operation, and studies have been approved for permanent rerouting in order to avoid the affected area. (Reporting and writing by Alexandra Valencia, Editing by Brendan O'Boyle & Kylie Madry; Writing by Natalia Siniawski)
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Source: US allows GE to restart jet engine shipments from China's COMAC
According to a source familiar with the situation, the U.S. informed GE Aerospace that it could restart jet engine shipments from China to COMAC on Thursday. This is a sign that U.S. and Sino trade tensions are easing, as Beijing has made concessions over rare earths. This week, the United States also lifted export restrictions to China on chip design software developers as well as ethane manufacturers. This suggests that trade negotiations between China and the United States are progressing. As part of the ongoing global trade war, the two largest economies have issued new licensing requirements and license suspensions on different exports. GE and the Commerce Department did not respond to a request for comment sent via email. The licenses granted to GE Aerospace concern engines sold to China’s state-owned aerospace company COMAC. COMAC wants to compete with dominant plane makers Airbus & Boeing. A spokesperson from the Chinese Embassy in Washington didn't immediately respond to an inquiry for comment. These restrictions were one of many countermeasures taken by the U.S. administration under President Donald Trump in response to China’s April export restrictions on rare Earths and magnets. Beijing's action on rare earths as a retaliation to Trump's tariffs earlier this year has upset supply chains that are important for automakers, aerospace companies, semiconductor companies, and military contractors. This issue threatened to derail a bilateral deal. According to a person familiar with the matter, who declined identification because they weren't authorized to speak in public, the license suspensions lifted by GE concern LEAP-1C engines for COMAC C919 single aisle aircraft and GE's CF34 engines for COMAC C909 regional aircraft. The LEAP 1C engines are a product of GE Aerospace's joint venture with France's Safran. C919 is manufactured in China, but many of the components are imported. According to a person who refused to name the company, at least one other aeronautical company had their license suspensions lifted for China on Thursday. Honeywell Aerospace also supplied COMAC’s C919 with an auxiliary power unit, wheels and brakes as well as a flight control package and navigation package. Honeywell has not responded to a request for a comment. Collins Aerospace is a subsidiary company of RTX that also supplies COMAC with components. Collins Aerospace declined to comment about the license status. The U.S. has also suspended the licenses of nuclear equipment suppliers who sell to China. Westinghouse, Emerson and other U.S. suppliers of nuclear equipment are among them. Reporting by Karen Freifeld, New York; editing by Bill Berkrot Chris Sanders and Daniel Wallis
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US lifts license restrictions on GE jet engines for China's COMAC
According to a source familiar with the situation, the U.S. Department of Commerce notified GE Aerospace that it could once again ship jet engines to China’s COMAC. This lifted license suspensions issued a few weeks ago. GE and the Commerce Department did not reply to a request for comments sent via email. License suspensions are just one of many new restrictions that have been imposed in recent weeks on U.S. imports to China, as the trade conflict between the two largest economies has moved beyond retaliatory duties to disrupting the supply chains. This week, restrictions were also lifted on other sectors including chip design software, ethane and others, as a sign that trade tensions are further easing. The licenses granted to GE Aerospace concern engines developed by China's state owned aerospace manufacturer COMAC. COMAC is competing with Boeing and Airbus in the development of commercial aircraft. According to a person familiar with the matter, who declined identification because they weren't authorized to speak in public, COMAC will receive Leap-1C engine licenses for its C919 single aisle aircraft and GE's CF34 engines for COMAC C909 regional jets. The LEAP 1C engines are a product of GE Aerospace's joint venture with France's Safran. C919 is manufactured in China, but many of the components are imported. It was not possible to determine immediately which other aerospace firms may have been affected. Bill Berkrot, Bill Freifeld and Karen Freifeld reported from New York.
CPC daily oil supply in May is down 6% compared to April
According to industry sources and calculations, the Caspian Pipeline Consortium has reduced daily oil production in May from April by 6% to 5,906 million metric tonnes (1.51 millions barrels per day).
CPC, the company that carries over 80% of Kazakh oil exports connects Tengiz in western Kazakhstan, and other fields, with the CPC terminal at Yuzhnaya Ozereyevka in Russia, near Novorossiisk.
Sources said that Kazakh exports of oil via CPC dropped to 5.386 millions tons in may from 5.523 in April, while Russian oil supplies via CPC reached 0.52 million tonnes in May compared with 0.57 million in April.
The CPC consortium doesn't comment on its activities.
Maintenance at the pipeline reduced daily oil pumping in may.
CPC, the operator of the CPC pipeline, announced late last month that a pumping station in Russia has been repaired after it was damaged in February.
Drones damaged and shut down the Kropotkinskaya pumping station in mid-February, which was located in Krasnodar.
CPC is owned by Russia (31%), Kazakhstan (20.75%) Chevron (15%), and other private companies. David Goodman, Editor of the Reporting (Reporting)
(source: Reuters)