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US trade truce allows for ethane to be exported to China
The U.S. opened the door to ethane imports into China on Wednesday. Enterprise Products Partners, Energy Transfer and other producers received letters rescinding the restrictive license requirements that were in place only weeks earlier. This was a clear sign that the U.S. - China trade truce is on track. In late May and early in June, the U.S. placed restrictions on ethane and a large number of other exports to China after Beijing was accused of slowing down shipments of rare Earths essential to automakers and many other industries. The letter removing the requirement for a license was sent on Wednesday after the United States, China and other countries resolved the issue last week involving shipments of rare-earth minerals and magnets from China to the United States. Last week, the Commerce Department made a first move toward lifting the restrictions. It sent letters to Enterprise Products and Energy Transfer as well as the traders of ethane, Satellite Chemical USA, and Vinmar International. The letters informed the companies that they could load the ethane onto vessels bound for China, but could not deload the ethane without authorization. Vinmar Satellite has not responded to comments immediately. Neither the U.S. Department of Commerce nor the White House responded immediately to comments. Ethane Shipments Ship tracking data from Kpler revealed that ethane shipments into China stopped in June due to the requirement for a license. They had dropped from 257,000 barrels a day in May. A stoppage in the shipments of ethane from the United States, which is extracted mainly from shale-gas and used as a feedstock for petrochemicals, would hurt both U.S. producers and Chinese petrochemical companies. Ethane is used as a feedstock by Chinese petrochemical companies because it's cheaper than naphtha. U.S. producers of oil and gas need China to purchase their natural gas liquids, as the domestic supply exceeds the demand. On Wednesday, at least eight vessels headed to China after being stalled on the U.S. Gulf Coast due to curbs in June. In June, at least one ship which usually travels between the United States of America and China travelled to India as companies searched for other markets. Samantha Hartke, a Vortexa analyst, said Wednesday's letter was "business as usual". She added that she expected July's ethane to return to its seasonal norm of 240,000 barrels a day. Reporting by Arathy S. Somasekhar, Houston; editing by Lisa Shumaker
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KLM offers wage proposals following threats of strike by ground crew
KLM made wage proposals on Wednesday to the Dutch staff of Air France KLM's Dutch subsidiary. The union CNV had said that the ground crews of the airline would strike on July 9 at Amsterdam Airport if their demands weren't met. The start of school holidays in some parts of the Netherlands is next week, so the eight-hour planned strike will take place during a busy period. KLM issued a statement saying that it had made a concrete salary proposal to all unions. The company proposed a payment of up to 1,178.60 euros (1,178.60 dollars) in 2025 as well as a structural increase of up to 2,5% by July 2026 depending on the results for 2025. KLM believes that this offer is a good starting point to reach an agreement. "The wage negotiations will continue 10 July," the company added. When contacted by, the union leader CNV did not respond immediately to a question about the proposals. KLM said that it would ask a court, just as it did successfully last month, to prohibit the industrial action planned after the unions had mentioned it. CNV was confident that a strike wouldn't be banned, because the circumstances have changed. The court's ruling in June cited concerns about security at the airport in relation to the NATO summit that was to be held in The Hague just days before the strike announcement.
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Worldline hires a new auditor to assess clients at high risk
Worldline, a French payment company, has announced that it has hired Accuracy as an auditing firm to evaluate its remaining merchant portfolio for risky activity. A group of 21 European news outlets claimed last month that Worldline covered-up client fraud in order to protect its revenue. Last week, Belgian prosecutors announced that they had launched an investigation into possible money laundering activities within its Belgian division. Worldline responded to media reports by stating that it has strengthened merchant risk control since 2023 and terminated client relationships with non-compliant clients. The group announced that in addition to the hiring of Accuracy, Oliver Wyman would also be hired to review Worldline’s control systems. The initial findings will be released on July 30, along with the first-half results. However, the main conclusions are to be revealed when Worldline announces its quarterly earnings in October. The company stated that it expects to identify any weaknesses or improvement areas by the end of the month. In such cases, the necessary action plans for ensuring optimal operational integrity will be implemented. Worldline, Europe's largest payments processor by transaction handled, saw its value drop by more than 500 million euros (590 million dollars) following the allegations. The shares of the Paris-listed firm have recovered in part since then, with a price of 3.93 euros per share at 1347 GMT. They had hit a record low price on June 25, when they were 2.69 euros. The yield on Worldline’s 2030 bond that it issued in June for a total of 550 million euro has increased by 40.8% within seven days. This shows the investors' anxiety.
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Document shows that Google has made a new proposal to avoid EU antitrust fines
A document obtained by has revealed that Google is proposing new changes to its search engine results to try to counter growing criticism. This comes a week ahead of a meeting which could result in yet another EU antitrust penalty. Google, the U.S. technology giant, has been put under pressure since it was charged in March by the European Union with unfairly favoring its own services like Google Shopping and Google Hotels over their competitors. Document stated that the company, owned and operated by Alphabet will meet with its competitors as well as the European Commission in order to discuss their proposals at a workshop held on July 7/8, 2018 in Brussels. The landmark EU Digital Markets Act under which Google was charged, lays out a dos and dont's list for Big Tech, aimed at curbing its power, giving rivals more space to compete, and giving consumers more choice. Google proposed last week to add a vertical search box to the top of its search results page. This box would include links to search engines specialised in certain fields, as well as hotels, airlines and restaurants. According to a Google document that was sent to the parties involved and viewed by us, this latest offer is called Option B. It's an alternative to the proposal from last week. The document stated that "under 'Option B,' whenever a VSS is displayed, Google will show a box with free links to suppliers", Google would organize the information on the suppliers in the box below the VSS box. The document stated that Option B "provides opportunities to suppliers without creating a box which can be characterized as a Google VSS". A Google spokesperson stated that "we've made hundreds" of changes to our products in order to comply with the DMA. "While we are committed to compliance, we are concerned by some of the DMA's real-world consequences, which have led to a worsening of online products and experiences in Europe." Google could be fined up to 10% of its annual global revenue if it is found in violation of the DMA. Reporting by FooYun Chee. (Editing by Ros Russel and Mark Potter).
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Ugandan military helicopter crashes in Mogadishu Airport, Somalia
Ugandan military spokeswoman said that a Ugandan helicopter, which was part of the African Union mission to maintain peace in Somalia, crashed on Wednesday at Mogadishu Airport. Felix Kulayigye's spokesperson confirmed that three of the eight people aboard the helicopter survived, but he didn't provide any details about the fate of five others. He said that emergency responders were trying their best to put out a fire on the crash site. In a press release, the African Union Support and Stabilization Mission in Somalia said that "search and Rescue operations are underway to recover the remaining crew and passenger." AUSSOM reported that the helicopter crashed just before landing at Mogadishu International Airport. SONNA, the state-run news outlet in Somalia, reported earlier on Wednesday that a helicopter crashed and was engulfed by flames. Farah Abdulle told reporters that she heard the explosion and saw smoke and fire over a helicopter. "The smoke completely covered the helicopter." AUSSOM is a multinational force that has over 11,000 members in Somalia, helping the military to combat al Shabaab. Al Qaeda's Somalia affiliate has been fighting since nearly 20 years to overthrow the internationally recognized government of Somalia and establish their own rule based strictly on Sharia Law. (Reporting and writing by Elias Biryabarema, Aaron Ross, and Bernadettebaum; Additional reporting by AbdiSheikh and GiuliaParavicini)
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Maersk estimates that effective US tariffs currently average 21%
Maersk, a Danish shipping company, estimates that companies pay an average of 21% in U.S. import duties per container, according to the Danish shipping company on Wednesday. This is less than half what it was before Washington stopped its tariffs. Maersk stated in its regular update on the global market that, at its height, just after President Donald Trump announced tariffs against almost all U.S. Trading Partners, the average effective rate reached 54%. The estimate was based upon the container-weighted average effective tariff rate of the group. The Trump administration is urging more than a dozen of its major trading partners to come to an agreement with it by the July 9 deadline in order to prevent import tariffs from increasing. In April, Trump announced a 90-day suspension of the steep levies that he announced a week before and sent global financial markets into turmoil. Maersk stated that "the whole world is on tariff-watch in July and August when various deadlines of potential trade agreements with the U.S. are about to expire." The report added that "the outcome of these talks will, of course, colour global trade as well as consumer sentiment in months to come." The company reported that it saw a robust growth in container demand during the first half year. The report said that "what happened was not entirely unexpected and customers did advance orders before the tariff announcements." Maersk's large U.S. clients have reduced their import dependence on China over the past few years. It said that many apparel and fashion clients have reached a single-digit China dependence. It added that "other commodities, such as home improvements, have a higher level of Chinese production due to the nature and quality of the product." Reporting by Jacob GronholtPedersen and Louise Rasmussen, Editing by Anna Ringstrom & Emelia SitholeMatarise
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Kenya is looking to privatise assets of the state to attract private sector investments, according to President Ruto
William Ruto, the President of Kenya, said at the London Stock Exchange that Kenya plans to privatise certain state assets through initial public offerings to attract more private sector investments. Ruto stated that the government intends to list the Kenya Pipeline Company this year via an IPO at the Nairobi Securities Exchange. He said: "We are committed in a structured and time-sensitive program that identifies, prepares, and has a pipeline of key assets for the government to be privatised via the stock exchange or enhanced through private sector involvement." Ruto said that a well-functioning capital market at home could reduce the reliance on external borrowing. Kenya is looking for new funding sources after deadly protests across the country last summer forced them to implement austerity measures. They also scrapped planned tax increases worth over 346 billion Kenyan Shillings ($2.68billion). At the Africa Debate, which took place later that day, Ruto stated that, following recent shocks, such as President Donald Trump's decision to eliminate USAID, Kenya is now working on relying on its own resources and private investments rather than "resources over which we have no control." He said Kenya raised $1.3 billion through the securitisation of assets, such as roads. He said: "We will now list some of these bonds on the securities exchange, so that other investors can take a bite out of the cherry." $1 = 128.9500 Kenyan shillings (Reporting and editing by Karin Strohecker, Joe Bavier).
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India's Travel Food Services to IPO $233.5 Million; aims for $1.69 Billion valuation
A newspaper advertisement published on Wednesday showed that Travel Food Services, a restaurant operator at airports, had set a price range of 1,045 to 1,100 rupees as its initial public offering. This follows the blockbuster IPO by HDB Financial Services. Travel Food Services' price range values it at 144.8 billion rupies ($1.69 billion), at the top end. The company plans to raise 20 billion rupies ($233.49m) through a three-day stock sale starting July 7. Kapur Family Trust will be the only shareholder to divest its shares. The Trust did not disclose if it would divest its entire shareholding. Travel Food Services didn't immediately respond to an inquiry for comment. India's IPO is gaining momentum after a sluggish start to the year. This was due to market gyrations caused by global trade concerns and a border dispute in India. HDB Financial Services' IPO of $1.5 billion, which was launched on Wednesday, grew by more than 13 percent. It is India's biggest IPO in 2025. Travel Food Services is a joint-venture between UK-based SSP Group, and India's K-Hospitality. It has an estimated 26% market share in the domestic airport restaurants sector, according to revenue-based figures. According to a CRISIL Report, it operates Wendy's, Subway, and airport lounges. It has a domestic market share of 45%. According to the company's prospectus, revenue from operations increased by nearly 21% to 16.88 billion Rupees in fiscal 2025, while profits grew more than 27%, to 3.8 billion Rupees. Dreamfolks Services, a competitor, is valued at approximately 12.11 billion rupees. According to PRIME Database there are 143 Indian Initial Public Offerings (IPOs) planned, worth up to $26 billion. Regulators approved 73.
China Communist Party magazine urges crackdown on price wars
A leading publication of the Chinese Communist Party called for an end to unfair competition, which fuels price wars in different industries and reduces profits. It also criticized large companies and local government for their unfair practices.
The Qiushi article, published on Tuesday, said that price wars are a "waste of social resources" and can lead to unsustainable debts. This could threaten long-term economic growth.
The warning comes as a result of mounting concerns about deflationary forces in the second largest economy in the world. Also, U.S. president Donald Trump's tariffs are threatening global demand on which China heavily relies for its ambitious growth goals.
In recent weeks, China has seen an increase in the number of public messages against price wars.
Top leaders
On Tuesday, the government pledged to tighten regulations against aggressive price cuts and state media carried front-page editorials criticizing what they called a race to bottom.
It is fuelling the hopes for new policies.
Unprofitable factories
Close or improve
consumer incomes
Analysts warn that Beijing may have difficulty convincing local governments to limit access to credit because of fears about job loss.
Fred Neumann is the chief Asia economist for HSBC. He said, "This is at the core of China's economy and we won't see any quick fixes."
"But, I think it's encouraging that now we've seen this recognition - that there's such a thing a too much competition and an excessive price war."
The Qiushi, written under pseudonyms, article focused on "involutionary competitiveness" in which firms and local governments spend capital to chase after market share despite limited demand, but fail to generate revenue growth.
The report highlighted industries like photovoltaics and lithium batteries as well as electric vehicles and ecommerce platforms.
Last month, solar manufacturers demanded an end to the price wars. On Tuesday, car dealers in east China complained that some automakers were pressuring them to reduce prices, citing high inventories and financial risks.
The Qiushi piece also highlighted problematic corporate behavior, such as compromising product quality in order to reduce costs. This weakens innovation, reduces R&D investments and hurts the interests of consumers.
It said that other firms increase their capacity, while delaying payment to suppliers and contractors. This squeezes the entire industrial chain.
WARNING TO LOCAL OFFICIALS
The magazine has also criticised local officials for not stepping up to the plate enough, stating that regulations haven't kept pace with new business models and industries. The bankruptcy mechanisms are "imperfect" and prevent curbing excessive supply.
Some local governments that are focused on short-term economic growth attract investment through "artificially" creating policy havens with preferential taxation, fees, land use and subsidies, as well protectionist measures.
Economists warn that China's high level of state-directed investment and low domestic demand due to a weak social safety net, as well as the deep inequalities between rural and urban areas, will make it overly dependent on its exports. This could lead to debt and deflation similar in nature to Japan during the 1990s.
The article didn't mention deflation but warned that China could suffer from "development path dependence". It also needed supply-side changes to reduce excess industrial capacities and a strategy for expanding domestic demand.
The report warned that the problem is "complex," and it cannot be resolved "overnight, or by a single, decisive action." (Reporting and writing by Joe Cash, with additional reporting from Laurie Chen in Beijing. Writing by Marius Zaharia. Editing by Shri Navaratnam & Christian Schmollinger).
(source: Reuters)