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Australian shares fall over 2% after hot GDP data reignites rate-hike speculation
Australian shares continued to fall on Wednesday. This was largely due to a sell-off in most sectors. The surprising?brisk growth of the economy rekindled bets for interest rate hikes. Meanwhile, the escalating Middle East conflict increased inflation concerns. If current losses continue, the S&P/ASX 200 will have its worst session since February 6, if it falls below 8,881.90. This week the benchmark index has dropped more than 3%, putting it on track for its largest weekly decline since April of last year. Data released earlier today showed that Australia's economy expanded at the fastest pace in almost three years in the December quarter. This sparked inflation fears and reinforced the belief that rates would need to be raised to "cool down" the momentum. The markets currently expect a rate increase of one quarter point at the 17th meeting. This is compared to 28% on the previous day. The escalating Middle East conflict has also dimmed the outlook for equity markets, which could lead to a global inflation wave. Even though Australia is an energy exporter net, the sustained rise in oil prices acts as a tax to consumers and businesses. Tony Sycamore is an analyst with IG. He said, "The Reserve Bank of Australia board will remain laser-focused on the Middle East conflict and its risks in terms of a supply scare feeding into higher inflation." Financials in Sydney fell 1.8%, marking the?fifth consecutive session of declines. Commonwealth Bank of Australia, Australia's largest lender, fell 1.5%. The remaining "big four" Australian banks declined between 1.3% to 2.7%. Investors weighed the rising freight costs due to the escalating conflict in Iran as they weighed down on iron ore price fluctuations. BHP, Rio Tinto and Fortescue all dropped between 0.8% to 3.3%. Virgin Australia's stock dropped as much as 3.7%, to a "one-month low". Larger rival Qantas fell 1.6%. The benchmark S&P/NZX 50 fell 0.9% in New Zealand to 13,491.97, and was on course for its third consecutive session of losses. (Reporting from Nichiket Tanishk and Kumar Tanishk, Bengaluru. Editing by Rashmi aich and Subhranshu sahu.)
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Oxa, a UK-based startup that develops self-driving vehicles, raises $103mln in order to expand at airports and ports
Oxa, the British self-driving company, has raised $103 million in funding from investors. The money will be used to scale up autonomous vehicle operations focusing on ports, airports, warehouses, and other industrial applications. Oxa is based in central England and said that 50 million dollars of its Series D round funding came from the UK National Wealth Fund. It also included investments by Nvidia venture capital NVentures, BP Ventures, and Nvidia. Oxa, unlike robotaxi developers who are focused on passenger cars, is focused on "industrial'mobile autonomy", which is what founder Paul Newman refers to. There is less complexity in this area because there is less pedestrian traffic and less?encounters. Newman stated that it is extremely difficult to achieve this in the passenger car market. In the industrial sector, it is very clear what needs to be done to create a product. Oxa creates the software and hardware that goes on vehicles. It can "autonomise", in less than a day, a heavy-duty truck for port work. The company has now raised over $250 million in funding, which will allow it to expand its operations and work with DHL and BP. Newman said that the funding would be used to deploy Oxa's technology in projects the company plans to announce soon. Last month, the British self-driving company Wayve announced a $1.2billion Series D funding round. The company is collaborating with Uber on robotaxis, and several automakers are working on driver-assistance technologies. (Reporting by Nick Carey, editing by Barbara Lewis).
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Australian shares continue to decline on Middle East conflict. GDP data is in focus
Australian shares fell below the key 9,000-level on Wednesday, mainly due to concerns over inflationary effects of the Middle East conflict. S&P/ASX 200 index fell 1.5% at 2322 GMT, extending its losses for a second session. The benchmark index closed Tuesday down 1.3%. Investors' concerns over inflation were heightened by the rising oil prices caused by the Middle East conflict. Gold stocks were the primary percentage laggards. They fell 6.6%, as bullion price retreated amid stronger?dollars and lower rate-cutting prospects. Northern Star Resources and Evolution Mining both fell by 6.7% and 6.3%. BHP, Rio Tinto, and other mining giants fell 4% and 2,9% respectively. Fortescue fell 3% as well. Virgin Australia, a major airline in Australia, dropped as much as 4 percent to an all-time low. Larger rival Qantas fell 1%. Investors are awaiting Australia's fourth quarter gross domestic product, after Tuesday's data showed that net exports had a lesser impact on growth and public spending was higher than expected. Governor Michele Bullock stated on Tuesday that the central bank may raise rates in March, if inflation expectations are at risk of becoming unanchored. Financials, the heavyweights of the market, fell?0.8% for their fifth straight session. Commonwealth Bank of Australia, Australia's largest lender, fell as much as 1.3%. The remaining "big four banks" also dropped between 0.8% to 1.3%. After three consecutive sessions of gains, energy stocks fell by 1.2%. Consumer staples dropped 1.2% while real estate stocks fell 0.8%. The benchmark S&P/NZX 50 fell 0.4% in?New Zealand to 13,563.85, a session that will be the third consecutive one of declines. (Reporting from Nichiket in Bengaluru, editing by Rashmi aich)
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MSC will offload all cargo bound to Gulf at the nearest safe seaport
MSC, world's largest ocean container carrier, announced on Tuesday that all cargo bound for Gulf ports will be unloaded at the nearest safe seaport, due to the ongoing hostilities between the United States and Israel. Israeli and U.S. attacks on Iran. MSC, based in Geneva, said that the "End of Voyage Declaration" also applies to containers which have been loaded with cargo but are empty and intended to be exported to ports in the Gulf. MSC announced that a mandatory surcharge $800 per container would be applied to all affected shipments?without exception' to cover deviation costs. The company stated that it "sincerely regrets" the need for this decision. Lars Jensen of Vespucci Maritime's container shipping consultancy, Vespucci Maritime CEO, stated on Linkedin that customers will be responsible for their container at the discharge -port. He said that shippers were responsible for paying port fees and finding alternative transportation. As a result of the hostilities, oil tankers and containers have backed up in the Strait of Hormuz, causing global fuel prices to soar. According to Drewry, an?London-based maritime consultancy, as of Sunday there were 158 container vessels?present throughout the Middle East including the Gulf of Oman and the Arabian Sea, which represents just 2.1% of current 'active' container ship fleet. MSC and Ocean 'Network Express (ONE) stopped accepting cargo bound to the affected areas of?the Middle East earlier this week. Experts in the industry warned that hostilities could cause a cascade of delays and disruptions, which could last for weeks as operators reroute vessels, containers, and other assets. In a report published on Tuesday, Simon Heaney said that container shipping had less to lose from the Iran conflict than other sectors. However, it could not escape disruptions and increased costs. (Reporting and editing by Jamie Freed; Lisa Baertlein)
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Sources say that a Russian-flagged LNG tanker is on fire in Mediterranean. The crew has been located in a lifeboat near Libya
The 'Russian flagged liquefied gas tanker Arctic Metagaz' is burning in the Mediterranean Sea, according to maritime security sources. Malta's Armed Forces said that the crew of the vessel had been found safe and sound in a lifeboat in Libya's search and rescue region. According to data from the MarineTraffic platform, the vessel under U.S. sanctions and UK sanctions sailed off the coast of Malta as recently as Monday. One of the sources claimed that Ukraine was suspected of committing the attack. However, no evidence was provided. Malta's military said that they received a distress call about the ship and located it. They did not elaborate on its condition. "Survivors were then?located in the Libyan SRR, in a lifeboat, during the search efforts." In a Facebook press release, they reported that all crew members were safe onboard the lifeboat. The Russian LNG producer Novatek, the vessel's manager in Russia LLC SMP Techmanagement and Russia's Transport Ministry did not immediately respond to comment requests. Separately, the Security Service of Ukraine did not immediately respond to a request for comment. Reporting by Jonathan Saul and Renee Maltezou; editing by Susan Fenton & David Gregorio
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Israel's UN representative says that Israel and the US control nearly all Iranian airspace.
Danny Danon, Israel's U.N. ambassador, said that Israel and the United States control almost all of Iran's airspace. Danon said to reporters at the United Nations in New York that the conflict between Iran and Israel would not end within a day, or even a week. "We knew this wasn't going to be a simple war. We know the capabilities of the Iranian regime. He said that they spent billions on "the infrastructure of terror" and knew it would be a serious operation. "But it won't last forever. We are superior. We have superiority. Danon responded that the U.S. Israeli and U.S. attacks against Iran since Saturday have succeeded in degrading Iran's capabilities. He said that it would be more difficult for Iran to launch missiles, but he did add that the country had hidden launchers in caves and underground. I think the operation will be gradual. Danon said the Lebanese Government should also act immediately against Hezbollah terrorists who are attacking Israel from Lebanese soil to prevent a further escalation. He said that Nawaf 'Salam, the Lebanese prime minister, was right to say that Hezbollah should disarm. He said that "but statements don't dismantle missiles." "We expect that the Lebanese government will'restrain Hezbollah and take control. Act now to prevent a further escalation. Hezbollah militants in Lebanon opened fire on Israel Monday with drones and rockets. Lebanon banned military activities of?Hezbollah on Monday, but militants fired missiles at Israel on Tuesday for the second consecutive day. Israel responded with troops in southern Lebanon, and waves of airstrikes. (Reporting and editing by Cynthia Osterman; David Brunnstrom)
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NTSB: Waymo robotaxis passed illegally stopped school buses, according to new incidents
The National Transportation Safety Board announced Tuesday that it is investigating a new incident from January in which Waymo's self-driving cars passed a stopped school bus with its lights activated, in violation of Texas state law. Alphabet recalled their self-driving cars in December after Texas officials claimed they had illegally overtaken school buses 19 times since the beginning of the school year. NTSB reported that a new incident happened in Austin, Texas on January 12 as a school bus loaded passengers. The incident is currently under investigation. The NTSB stated that 'the Waymo stopped to look at the bus. But then, other vehicles passed by the bus. This prompted Waymo ask a human remote assistance operator whether it was a "school bus with active signal?" The?agent replied no and then Waymo passed by the bus. The NTSB will issue safety recommendations in order to prevent similar incidents. Waymo has expressed its appreciation for the NTSB's work. Waymo reported in December that a software problem contributed to the self-driving cars initially slowing down or stopping at a school bus, and then continuing. In October, the National Highway Traffic Safety Administration opened its first?probe into Waymo cars near school buses. Austin Independent School District reported that five incidents took place in November, after Waymo released an earlier software upgrade to fix the problem. Waymo declined to comply with the request made by the school system in order to stop operations near schools at pick-up or drop-off time until the company could verify that the vehicles did not violate the law. NHTSA as well as the NTSB are investigating the Jan. 23 collision between a self driving Waymo and a 9-year-old California girl who was running across the street from behind a double parked SUV towards a school. Waymo claims that the vehicle detected the girl immediately, and braked hard to reduce speed from 17 mph down to 6 mph. (Reporting and editing by David Shepardson, Chizu Nomiyama, and Nick Zieminski).
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Trump orders insurance support for oil tankers, and says Navy can escort vessels in Gulf
Donald Trump announced on Tuesday that he had instructed the U.S. International Development Finance Corporation to provide financial guarantees and political risk insurance for maritime trade traveling the Gulf. He added that the?U.S. If necessary, the Navy could start escorting tankers through Strait of Hormuz. The announcement is one of the most aggressive measures the administration has taken to control rising energy prices and calm the oil markets. Trump's economic message has placed lower fuel prices for Americans at the forefront. The move also signals his willingness to use military and financial tools to prevent disruptions to global crude supply. In a social media post, Trump stated that the United States would ensure the free flow energy to the rest of the world no matter what. Trump said that there will be more action. Since Israeli and U.S. troops began attacking Iran last weekend, global crude prices have spiked. This has led to "fighting" that has disrupted Middle East oil tanker deliveries. Two sources familiar with this plan said that Treasury Secretary Scott Bessent, and Energy Secretary Chris Wright would meet Trump on Tuesday to discuss a list?of proposals to address the problem and to finalize a reply. Trump told reporters Tuesday that Americans might have to 'live with higher oil costs for a brief period. But as soon as it ends, these prices will drop, and I believe lower than before. The higher energy prices could make it difficult for Trump's Republican Party members to win the mid-term elections. WAR-RISK PREMIUMS RISE The Strait of Hormuz is a narrow waterway that connects Iran to Oman. It is through this narrow waterway that around a fifth of world oil is transported. A number of tankers have been damaged in strikes, and others are stranded. Shipping companies and insurance firms have started reassessing the risks they face in this region. Industry sources report that war-risk premiums are up and some insurers have reduced or removed coverage. The higher?insurance cost has made it more costly for tankers to travel through the region, prompting operators to delay voyages or find alternative routes. The United States' support for tanker insurers is not new. In the 1980s, when private insurers pulled out of the Iran-Iraq war, Washington reflagged tanks and provided naval escorts. The U.S. issued policies after the attacks of September 11, 2001 to keep shipping moving despite the increased war-risk premiums. The Secretary of State Marco Rubio said to reporters that the U.S. had a "program" in place to combat rising energy prices. Wright and Bessent would implement it. Rubio stated, "Starting tomorrow, you will see us implementing these phases in order to mitigate that." He provided no details. One source claimed that the?administration had been reluctant to use the nation's Strategic Petroleum Reserve. However, officials could indicate as soon as Tuesday if oil prices continue to rise. (Reporting and editing by Paul Simao; Additional reporting by Nandita Bouse, Shariq Khan and Arathy Sommesekhar, and additional reporting by Timothy Gardner and Jarrett Renshaw)
Experts say that the part found near Spain crash site could be missing its undercarriage
A large metal piece found near the crash site of a high speed train in Spain could?be the missing undercarriage the investigators are searching for, to determine the cause of the accident.
At least 42 people were killed in the crash, which was one of Europe's largest, that occurred on Sunday near Adamuz, a small town located in the south of Turkey.
Inaki Barron is the head of Spain’s railway accident investigation body CIAF. He said that on Monday, the investigation will focus on a missing piece, called a bogie. This part is important because it acts as a key point of contact for the speeding train and the tracks. It could also shed light on what caused the derailment.
Photos taken on Tuesday showed that the piece was partially submerged in the?small stream' to the side a railway bridge, about 15 metres (49 feet) below the tracks. The crash site is approximately 300 meters away.
The Transport Minister, Oscar Puente, told TVE state broadcaster on Wednesday that this bogie was one of "hundreds of pieces of evidence being collected" and that it had been found on Monday by Civil Guard but left in its place because of its weight. He did not specify which of the two train involved in the accident the piece belonged to.
BOGIE FLEW OUT LIKE ?BULLET, SOURCE SAYS
Sources briefed about the investigation said that the component is believed to be the so-called bogie, the train's undercarriage on wheels. It belonged to the private consortium Iryo's first derailed train.
The source said that due to the high speed of the two trains and their impact, the bogie, which was very heavy, flew out like a bullet.
Over the last three days, investigators have cordoned off the area around the crash site, marked and photographed every piece of evidence found on the track. This piece was unmarked and was not in the cordoned-off area when it was photographed on Tuesday afternoon.
The state rail company Renfe sent an email to customers on Wednesday after the photo was taken. It said: "(The piece) is under investigation by the railway accident investigation body CIAF. We cannot add any additional information or comments outside of the scope"
Adif, the Spanish Transport Ministry and?Iryo did not respond to immediate requests for confirmation from them that the part photographed was actually 'the missing bogie. Ferrovie Stato in Italy, which owns Iryo majority, refused to comment on the matter due to the ongoing investigation.
EXPERTS SAY PHOTOGRAPH APPEARS AS A BOGIE
Gareth Dennis, a Scottish railway engineer who writes about the industry, said that bogies (the element that holds the wheels and suspension of the train) are frequently thrown free during high-energy accidents.
Dennis said that the location of the bogie, and the section it left from, will help investigators determine the exact trajectories and energies of the derailed cars. (Reporting and writing by David Latona, Susana Vera and Corina Poons; Additional reporting and writing by Emma Pinedo and Leo Benasatto, Writing and editing by Aislinn Laing; Rachel Armstrong, Sharon Singleton and Aislinn Laing)
(source: Reuters)