Latest News
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Australia's Coles flags fuel-driven cost pressures even as quarterly sales rise
Coles warned on Friday about the cost pressures coming from its suppliers and operations, especially in fuel, shipping and packaging. The Australian retailer also reported an increase in revenue for its third quarter. The 'country's 2nd largest grocer stated in a press release that customer behaviour had also changed. More shoppers were cooking at home to save money, and less people were eating out. Meanwhile, geopolitical tensions related to the 'Iran war, continued to drive up fuel prices, as well as other input costs. Coles reported a 3.1% increase in group sales revenue for the 12-week period ending March 29, up from A$10.38billion a year ago. This is in line with Visible Alpha's consensus estimate of A$10.68billion. The revenue from supermarket sales grew by 4%, to A$9.78billion ($7.04billion) in the period. This was due to targeted weekly promotions as well as an expanded range of?low cost products. The segment's e-commerce sales grew by 24.8%, to A$1.33billion during the quarter. The Grocer said that Supermarkets sales revenue growth in the first part of the 'fourth?quarter is largely similar to the previous quarter. Coles reported that the Middle East fuelled geopolitical unrest and impacted consumer sentiment. Coles stated that "as a consequence, we are currently expecting flow-on?impacts on Liquor earnings," reflecting the?reduced fractionalisation of fixed costs across the second half.
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Sky News reports that British Airways pilots narrowly reject pay reform
Sky News reported that British Airways pilots rejected IAG's proposal to overhaul their pay on Thursday. According to the report, the airline's proposals included a 4% pay rise, but were paired with a cut in pension contributions and the reduction of the hourly Flying Pay Bonus awarded to pilots. The rejection highlights the tensions between British Airways' pilots and the carrier, as they both seek to change long-term career and pay structures while offering modest wage increases. The British Airline Pilots' Association said that they had communicated the democratic decision of their members to British?Airways. While a pay deal for 2026 is already in place, the BALPA intends to hold more discussions with the company based upon?member feedback. The report stated that the union members voted against the changes made by the airline proposal with a small margin. Just under 51% of them voted against the proposed changes. We are aware of the result?of the Pilot Career Structure Consultative Ballot. British?Airways spokeswoman said: "We will continue to work closely with BALPA, and we will review?the feedback that has been received before determining the next steps." Sky reported that some union-represented British Airways Pilots, which is about 80% of the total number, or approximately 4,000 people, have expressed growing concerns over recent attempts to "pressure" them into accepting a worse pay and conditions. BALPA represents 85% of UK pilots. Reporting by Abu Sultan from Bengaluru and Mrinmay and Carlos Mendez from Mexico City. Editing by Sahal Muhammad.
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US railroads Union Pacific and Norfolk Southern seek approval for $85 Billion Merger
Union Pacific and Norfolk Southern submitted a revised merger request?with the Surface Transportation Board on Thursday, requesting approval for an $85 billion tie up to create the United States' first coast-to-coast rail freight operator. Railroads claimed that the deal would save shippers $3.5 billion per year. The railroads said that the deal would increase service reliability, divert truck freight to rail, maintain shipper options, and deliver "broad public benefits" while protecting union jobs. A number of groups including freight shippers, who are concerned about higher rates, and attorneys general from some states have raised concerns over the proposed merger. Former President Joe Biden had a strict anti-merger policy, and it was unthinkable for him to support the merger. Railroads predicted that the network would take approximately 2.1 millions trucks off the roads, with savings that could reduce consumer prices. According to the revised application, the combined company is expected to need 1,200 new union jobs in the third year. The companies offer a "jobs for life guarantee" - any union employees who had a job when the merger took place will still have one. Comments on the completeness and accuracy of the revised application are due by May 8, according to the board. The American Fuel & Petrochemical Manufacturers Association said that the deal would "have significant consequences for American refiners and petrochemical producers as well as the broader economic system." The history'shows that consolidation has too often led to higher prices, longer transit time and?reduced services. The deal could reshape America's freight railroad industry by helping to streamline operations, and eliminating interchange delays at hubs such as Chicago. The Trump administration has preferred to approve large transactions, or impose remedies instead of blocking them outright. Railroads have struggled to cope with fluctuating freight volumes, rising fuel and labor costs, and increasing pressure from shippers regarding?service reliability. This is the first major railroad merger that has been reviewed under a stricter framework than was in place over two decades ago. The new framework requires applicants to demonstrate their transaction will enhance competition, not just preserve it, while providing demonstrable benefits to the public. Reporting by David Shepardson. Editing by Louise Heavens & David Gregorio
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Air Canada cancels its 2026 fuel demand forecast due to the Iran War
Air Canada lowered its full-year profit forecast for the year on Thursday as the war in Iran increased jet fuel prices and clouded the outlook. Fuel prices have almost doubled since the start of the conflict, trapping airlines between rising expenses and tickets purchased months in advance with 'fixed fares. The surge in demand has forced airlines to adopt a mitigation strategy, resulting in capacity cuts, fare increases, and increased fees for services like checked baggage. Air Canada also reduced some flights to New York in the future to cut fuel costs. The carrier announced a core profit forecast for the second quarter and said it expected to report an adjusted EBITDA of between C$575m and C$725m. Air Canada CEO Michael Rousseau stated that, "Supported with solid demand, we expect to offset between 50-60% of the estimated additional fuel expenses through various commercial and costs actions." It reported a first-quarter net income of C$48m, or C$0.16 per share. This compares to a loss of C$102m, or C$0.40 a share, one year earlier. The?carrier's adjusted loss per share was C$0.05 The Canadian flag carrier estimated its 2026 adjusted earnings, before interest, taxes, depreciation and amortization, in the range C$3,35 billion ($2,47 billion), to C$3,75 billion. (1 Canadian dollar = 1.3584 dollars) (Reporting and editing by Sriraj K. Kalluvila in Bengaluru)
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Panama's president: US-China dispute has caught a port in Panama
Panama President Jose Raul Mulino stated that his country has a 'positive relationship' with China despite the fact that it is caught in a dispute between China and the U.S. He also defended Panama's 'takeover' of Hong Kong-based CK Hutchison's port contracts. He spoke at a regular news conference after receiving a message he described as "high level" from the Chinese government, which acknowledged that the dispute over port contracts would be heard by an international arbitration court and was not a matter between the Panamanian or Chinese governments. The message received by China's ambassador to Panama marked a "friendlier approach", even though he noted a surge in detentions and checks of Panama-flagged vessels?in China. Mulino, a reporter, said: "In a sense, we are being swept along by the result of a?problem between the United States and China." CRITICAL CANAL Control of the Panama Canal's entrance ports is a source of geopolitical tensions between Washington and Beijing. CK Hutchison lost its port concessions, which it held for almost three decades, after a Panama Supreme Court ruling in January. The decision was widely viewed as a result of U.S. efforts to limit Chinese influence on the strategic waterway. Panama handed temporary operations over to Maersk APM Terminals, and MSC TIL Panama. Panama Ports?Company announced that it would challenge the move through international arbitration. It also accused Panama's Government of a wrongful takingover. Mulino stated, "We didn't expropriate ports. We?took them over because they had no contract." "I have no interest in escalating the problem with China." He expressed concern over the unusually large number of Panama-flagged vessels being detained by China. This issue prompted the U.S. to express support for Panama's sovereignty this week in a statement. China accused the U.S. and China of politizing the ports. Mulino said he had not made a decision?on the next steps. He said: "I don't want this to escalate because of a geopolitical dispute, or for our Panamanian flagged vessels to be used in an attempt to exert pressure." "I do not think that's fair." Reporting by Elida Moreno; writing by Daina Beth Sool; editing by Rod Nickel
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Trump signss order authorizing pipeline project that partially revives Keystone XL Line
On Thursday, U.S. president Donald 'Trump signed an order granting a 'cross-border permit' to a project which would revive a re-built Keystone XL pipe to transport Canadian _crude oil from the U.S. Canada border to Wyoming. If the pipeline is built, it could increase Canada's crude oil exports to America by over 12%. The project was only allowed to proceed with a presidential permit. The new proposal would take a different route across the United States than the 'previous Keystone XL project,' which was canceled in '2021 by the former U.S. president Joe Biden after years of Indigenous and Environmental opposition. It will 'use some of 'the previously built pipe in Canada, where Keystone XL is fully permitted. South Bow, a company set up in 2024 by TC Energy to take over the oil pipeline business of former Keystone XL promoter TC Energy, will be taking over this oil pipeline business. Bridger Pipeline is South 'Bow's U.S. Partner. They recently submitted a proposal to Montana regulators. The proposal describes construction of a 1,038-km (?645-mile) pipeline capable of transporting 550,000 barrels per day. It will begin near the U.S. Canada border in Phillips County Montana and then transit to Guernsey Wyoming. Analysts say that Guernsey does not serve as a final market for crude oil. Therefore, additional links will be needed to transport the oil to refinery hubs in Cushing, Oklahoma, Patoka, Illinois, and along the Gulf Coast of America. The project will need to be approved by the state regulatory authorities. (Reporting and writing by Ryan Jones; Editing by David Ljunggren, Edmund Klamann and Christian Martinez)
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Woodside struggles to sell LNG at Louisiana LNG plant according to sources
Woodside Energy, a company based in Australia, is having difficulty selling liquefied gas volumes produced by its Louisiana LNG export facility. This is because the company is demanding liquefaction fees that are higher than current U.S. market prices. Woodside Energy, an Australian energy producer, has announced so far only one long-term sale and purchase agreement, with Germany's Uniper, covering up to two million metric tonnes per year. This is equivalent to around 25% of Woodside’s share of Louisiana LNG’s output. Producers charge liquefaction fees on top of base energy prices to convert natural gas into liquid for transportation. The price of U.S. LNG has been increasing due to labor shortages, rising construction costs, and strong demand. One of the sources stated that "the problem Woodside faces is the high price of its liquefaction fee, which is higher than what other companies in the U.S. charge." Woodside had initially requested liquefaction charges above $2.80 for every million British thermal units. This was in contrast to the broader U.S. rates of $2.40 to 2.50 per mmBtu. Source: Cheniere Energy - the biggest U.S. producer- charges a slightly higher fee around $2.60. Venture Global, on the other hand, is one of the lowest, at $2.30. A second?source who is familiar with the pricing discussions stated that Woodside's offer was attractive in certain aspects, such as contract duration. However, pricing has proved to be a sticking-point. Source: "Woodside offers 10-year contracts that are attractive because of their duration, but price is the issue," said the source. They wanted $2.80 for mmBtu, but now offer it at $2.60. WOODSIDE HAS REPORTED STRONG CUSTOMER INTERESTS Woodside declined to make any comments. Speaking on the company’s earnings call, CEO Liz Westcott stated that customer interest was strong, and the company is satisfied with the progress made at Louisiana LNG. Westcott stated that "many customers see the benefits of geographical diversification, and are comfortable with the way the Louisiana LNG process is progressing." "We continue to have a competitive price on the market." "We are among the lowest-cost LNG suppliers," added she. Woodside's North American expansion strategy includes the?Louisiana LNG project. Woodside is betting on an administration that supports fossil fuels in the U.S., and a growing demand for gas worldwide. The first phase of the project will cost approximately $17.5 billion. Woodside sold 40% of its facility to Stonepeak, a U.S. investment company. Williams, a U.S. energy infrastructure firm, took the remaining 10%. The first phase involves the construction of a three-train facility, or processing unit with a total capacity of 16.5 mtpa. Woodside, which has sold off?50% of the plant's capacity, has contracted to supply a little over?8 million tonnes of LNG per annum. Woodside and Uniper have agreed to a?supply agreement' that will allow the German company to purchase 1 million tonnes per annum of LNG from Louisiana over a period of 13 years, as well as an additional up-to 1 million tonnes per year from its global portfolio. Louisiana LNG will be operational in 2030. Deliveries should begin then. Curtis Williams, reporting from Houston; edited by Nathan Crooks & Nick Zieminski
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UPS CEO: Drug delivery strategy is a good countermeasure to economic uncertainty
Carol Tome, CEO of United Parcel Service, said that the company's efforts to grow its share of lucrative prescription drug delivery market are likely to pay off in the second half this year, despite the Iran War clouding the global economic outlook. That premium business, which can involve safe and speedy handling of temperature-sensitive medicines or radioactive treatments, is more recession-resistant than sectors like retail, housing or manufacturing, she said. This is important because the U.S./Israeli conflict against Iran could spark a recession that would reduce demand for delivery services. Tome said this week that despite the challenges of recent years, healthcare is still growing. "I'd argue that healthcare is recession-proof." UPS has been battling rival FedEx for years and reconfiguring its network in order to handle fewer but more profitable deliveries. DHL Group dominates the outsourced healthcare logistic market, which is worth more than $80 billion. Some analysts predict that this market will double over the next decade. Analysts?said that UPS was gaining on DHL in some healthcare segments and surpassing FedEx. High Margins Tome stated that UPS and other companies are targeting complex logistics in healthcare because of the high prices and profits associated with such specialized handling. Tome stated that margins for shipments of expensive drugs are typically in the high teens, while margins in e-commerce are very low, in the single digits. This is already a benefit to the company as the traditional delivery of lightweight packages by?retailers such as Amazon.com and Walmart becomes a drag on profits. Tome stated, "We just reported our first $3 Billion Healthcare Revenue Quarter in our Company's History and we have taken share in this area since 2021." UPS reported 2025 healthcare revenues of $11.2 billion. This is almost 13%. UPS's first quarter 2026 revenue from healthcare accounted for over 14% of its total revenue. As the volume of low-profit packages drops this year, business with higher margins will become a larger part of the pie. Tome says that lower operating costs should boost earnings growth. Tome, when asked about the impact of Iran's war on UPS's business, said that the company is still doing well despite the soaring prices of fuel due to the closure of the Strait of Hormuz. Analysts are also watching the part of UPS's healthcare business that could be vulnerable to a recession: home deliveries of GLP-1 diet drugs that consumers pay for, and not insurance companies. OUTSIDER UPS has lured Tome out of retirement, the former Home Depot Chief Financial Officer, in June 2020. She will be the first non-company CEO to lead the company for more than 100 years. In the latest quarter, Amazon's share of UPS's business dropped from more than 13% down to just 8.8%. The company also funded acquisitions which expanded its healthcare footprint. To compensate for the culling of millions of Amazon packages, the Atlanta-based firm has been closing its facilities and reducing their workforce. This includes union delivery drivers, who easily earn more than $100,000 a year. Postal Service handed over its Ground Saver deliveries at value prices to the U.S. Postal Service, as U.S. Tariff Policy choked millions of low value "de minimis" deliveries from?China linked companies like Temu or Shein. UPS also upgraded hubs with automation, package tracking and other tools to make delivery more cost-efficient. UPS is close to completing a large part of the work, which will save billions on operating costs. This will also create a turning point in profitability for the company. Bruce Chan, a Stifel analyst, summarized the progress of the transformation in a note to clients entitled: "Home stretch: Heaviest lift complete... now for the benefits to materialize." Reporting by Lisa Baertlein in Los Angeles, Editing by Richard Valdmanis & Bill Berkrot
Indian Oil increases prices for industrial LPG and jet fuel for foreign Airlines
Indian Oil Corporation, India's largest state-run refiner, has raised the prices of liquefied petrol gas for industries and jet fuels for foreign airlines as of Friday.
The refiner said that the price of a 19 kilogram?commercial LPG for industrial clients has been?increased by 993 rupees or 47.8% to 3,071.5 Rupees.
The refiner said that the price of aviation turbine fuel for international airlines has been raised from $1,435.31 to $1,511.86.
The prices of household LPG (primarily used for cooking fuel) were not revised. The 'company' also said that the jet fuel prices for domestic airlines were not revised.
The price increases come in the wake of a sharp rise?in the global oil prices.?These have risen above $100 per barrel since?the Strait of?Hormuz was closed?amid a continuing Iran war. (Reporting and editing by Sumana nandy in Bengaluru)
(source: Reuters)