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FedEx's quarterly profits rise, but US tariffs dent 2026 earnings forecast
FedEx posted a higher profit for the quarter, but projected 2026 earnings per shares that were largely below analyst's estimates. This is because it expects to take a hit due to U.S. tariffs ending on low-value direct-to consumer shipments. In extended trading, shares of the company rose by about 6% on Thursday. On May 2, the U.S. government ended the "de minimis exemptions" that allowed packages valued below $800 to be imported duty-free from China and Hong Kong. These shipments represented about three quarters of the roughly 1.4 billion packages which entered the United States every year under this program. On August 29, the U.S. removed "de minimis exemptions" for all countries. FedEx is expected to see the impact of this in its results for the next few quarters. According to data compiled and analyzed by LSEG, Memphis-based package-delivery company expects adjusted earnings for the full year in a range between $17.20 and $19.00 per share. The mid-point is slightly below analyst estimates of $18.21. FedEx has reported an adjusted profit for the first quarter ending August 31 of $0.91 billion or $3.83 a share. This is up from $0.89billion or $3.60 a share in the year before. Since 2023, the company has been working to reduce operating costs by billions of dollars. This was achieved through parking planes and closing facilities. The company has a plan to save $1 billion in the fiscal year ending May 2026. It reported first quarter revenue of $22.2billion, an increase from $21.6billion a year ago. Reporting by Lisa Baertlein from Los Angeles, and Abhinav Paramar from Bengaluru. Editing by Shinjini Ganuli.
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FedEx's earnings forecast for 2026 is below expectations due to US tariff impact
FedEx posted a higher profit for the quarter, but projected earnings per share in 2026 that were largely below analyst's estimates. This is because it expects to take a hit due to U.S. tariffs ending on low-value direct-to consumer shipments. According to data compiled and analyzed by LSEG, the Memphis-based company expects adjusted earnings for full-year in a range between $17.20 and $19.00 per share. The mid-point is slightly below analyst estimates of $18.21. Since 2023, FedEx has been working to reduce operating costs by billions of dollars. This is done through parking planes and closing facilities. It has a plan to save $1 billion in the fiscal year ending May 2026. Analysts and investors are waiting to see if this will be sufficient to counteract the threats of U.S. Trade Policy and global economic uncertainty. The company's adjusted profit for the first quarter ending August 31 was $0.91 billion or $3.83 a share. This is up from $0.89 million or $3.60 a share in the same period last year. Reporting by Lisa Baertlein, Los Angeles; Abhinav Paramar, Bengaluru. Editing by Shinjini Ganuli.
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NY asks National Grid for better natgas forecasts in advance of possible NESE pipeline
The New York utility regulator asked some U.S.-based units of UK energy company National Grid to report how they would optimize their natural gas supply if or not the proposed Northeast Supply Enhancement pipeline project or NESE is put into service. The New York Public Service Commission, NYPSC, said that if NESE (the proposed gas supply increase from Pennsylvania to New Jersey and New York by Williams Cos Transco), is not put into service, it wants the National Grid companies report on their reliability plans. NYPSC reported that the three National Grid utilities, Brooklyn Union Gas KeySpan Gas East, and Niagara Mohawk Power, serve approximately 2.5 million gas consumers in New York. This makes them the largest natural gas distribution system for the state. Williams canceled the first attempt at building NESE by 2024 largely because of opposition from New York's and New Jersey's environmental regulators. The project was revisited earlier this year, with the support of U.S. president Donald Trump's Administration. NESE, and another gas pipeline proposed by Williams from New York to Pennsylvania have been linked with a deal made between the Trump Administration and New York Governor Kathy Hochul. The Trump administration agreed to lift a federal order that stopped construction on the Norwegian energy company Equinor’s Empire Wind offshore project near New York. Hochul didn't endorse gas pipelines, but she said that New York would collaborate with the U.S. government and private entities to develop projects that met state legal requirements. (Reporting and editing by Scott DiSavino)
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US accelerates power grid projects in AI
The Trump administration launched a new initiative on Thursday to accelerate the development of power plants, transmission lines and other infrastructure as artificial intelligence increases demand. The Department of Energy (DOE) is asking stakeholders, including utilities and transmission managers, for information on investment opportunities near term, the readiness of projects, growth expectations in power demand and any constraints it could address. On his first day in office, Donald Trump issued an executive order declaring a state of energy emergency. Artificial intelligence, data centres, and electric cars are driving the demand for power to its highest level in 20 years. The DOE has ordered that several coal and gas plants, which had planned to close down, continue to operate. This is the latest U.S. effort to support fossil fuels. Trump claims that the rapid adoption of solar power and wind energy has caused U.S. electricity to be unstable and costly, which is why he wants to stop most subsidies. Texas has seen an improvement in reliability, but the grid that uses the most renewable energy in the U.S. is still the one with the highest rate of failure. The DOE will use the Speed to Power program to determine the best way to utilize funding programs, national emergency authorities and grid expansion to increase power generation. DOE has millions of dollars in funding and financing, including through its Loan Programs Office. The DOE cancelled a $4.9billion loan guarantee in July for a transmission system that was supposed to transmit power from Kansas wind and solar projects to cities in Midwest and East. The Federal Energy Regulatory Commission also took action on Thursday to improve grid security. FERC has approved and proposed new rules to reduce risks associated with supply chains, cyber attacks, and electrical grid disruptions due to extreme cold. Extreme cold can sometimes cause blackouts. Green energy opponents claim that coal plants scheduled to retire in Trump's second tenure will still be needed. Tom Pyle of the American Energy Alliance predicted that, on Trump's orders or out of their own volition, 38 coal plants scheduled to close by 2028 will remain open. According to the U.S. Energy Information Administration, in July 2025, power plants will burn about 20% more coal in the first quarter of 2025 than in 2024.
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Urals diffs unchanged, September loadings revised
Sources said that the differential between Brent and Urals crudes was stable on Thursday. However, oil loadings at Russia's western port ports were revised due to drone-related damage to refineries and export infrastructure. Two sources familiar with the schedule said that Russia increased its planned oil loads from the Black Sea port Novorossiysk and the Baltic port Ust-Luga for September due to disruptions at Primorsk. Two sources familiar with the situation said that Novatek, a Russian gas company, delivered 70,000 tons of gas to Novorossiysk during the September shutdown of the Ust-Luga complex. As the Ukrainian drone attacks continue traders are predicting that exports could be revised until the end of this month. Ukraine announced on Thursday that drones it had used in Russia struck an oil processing, petrochemical and refinery complex. This was part of a campaign intensifying to disrupt the oil and gas industry in Moscow. PLATTS WINDOW On Thursday, no bids or offers for Urals BTC, Azeri BTC Blend or CPC blend were made in the Platts Window. According to LSEG and industry sources, the freight rates for Very Large Crude Carriers have risen to their highest level in over two years. This is due to a tightening of tanker supplies, a rise in Middle East oil exports, and an increase in arbitrage supplies into Asia. (Reporting and Editing by Alan Barona).
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Top shipping players call for a rethink of UN Ship Fuel Emissions Deal
After the U.S. vetoed the draft agreement, a group of leading shipping companies, including Greek leaders, said they wanted changes made to an October United Nations agreement that aims to reduce marine fuel emissions. The global shipping industry accounts for almost 3% of all carbon emissions in the world. This proposed agreement is vital to accelerate decarbonisation by establishing a more robust regulatory framework. The group, which includes some of the largest oil tanker companies in the world such as Cyprus-based Frontline or Saudi Arabia-based Bahri, said that they had "grave concern" over the Net-Zero Framework being proposed to be adopted next month by the U.N. International Maritime Organization's environmental committee. In a statement released on Thursday, the companies said that they did not think the IMO NZF would be able to support the decarbonisation of the maritime industry... or ensure a level playing field. "We think that the IMO NZF needs to be amended, and realistic trajectories should be taken into consideration before it can even be considered for adoption." In April, countries reached a draft agreement which would impose a charge on ships that violate global carbon emission standards. Sources told the media in September that the United States had warned countries not to accept this deal, or else they would face tariffs and visa restrictions, as well as port charges. In a joint statement, it was stated that an agreement must avoid "excessive costs and inflationary pressures to consumers". Arsenio Dominguez, the Secretary-General of IMO, said he is confident that the agreement will be adopted by next month. "I base this on the track-record of the organization, the co-operation we all have, and the understanding that there are still some challenges and concerns to be addressed," he said at a Capital Link Shipping Conference in London on Monday. During the London International Shipping Week, earlier this week, Vassilis Kilias, Greek Shipping Minister Vassilis told Dominguez that improvements are needed. In a press release, the shipping ministry stated that "the minister underscored that he shared the concerns of the shipping industry." According to sources, it is unclear whether or not the deal will go through if there are more protests against it or if IMO member states abstain. Without a mechanism, emissions will soar. 90% of world trade is carried out by sea. Capital Group, TMS Group and Centrofin were also signatories of the statement. Other co-signatories included Emarat Maritime (Gaslog), Hanwha Shipping (Angelicoussis Group), Trust Bulkers, Common Progress, Dynacom, Dynagas, Hanwha Shipping (Emarat Maritime), Seapeak, Stolt-Nielsen, Hanwha Shipping Company, Angelicoussis Group. (Reporting and editing by Nia Williams; Renee Maltezou and Jonathan Saul)
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Bolsonaro could be included in the amnesty bill being rushed through by Brazil's Congress
Brazil's lower chamber of Congress voted on Monday to speed up an amnesty measure backed by right-wing opponents. The bill could provide relief to former President Jairbolsonaro, and to his supporters who were sentenced to prison after his election defeat in 2023 for their role in the riots. Bolsonaro was sentenced to 27 years, three months of prison by a Supreme Court panel last week for plotting to overturn 2022 elections, in which he lost. His sons, and his supporters, have touted amnesty legislation as a way to achieve freedom. However the legality of this move is still disputed. Two Supreme Court Justices have already said that pardoning those convicted for plotting a coup is unconstitutional. On Wednesday, the lawmakers voted by 311 to 163 in favor of an amnesty law, which is still undefined, to bypass committee discussions and move straight to a vote at plenary. The preliminary version of amnesty legislation under consideration would pardon anyone involved in "political protests" after October 30, 2022. However, lawmakers could alter the proposal before a final vote. The original bill covers the Bolsonaro-supporters' attack on Brasilia government buildings that occurred in January 2023. Many of these Bolsonaro-supporters have already been convicted. Others have suggested that the bill would shorten their sentences instead of wiping clean their records. Some lawmakers want Bolsonaro to be included in the amnesty bill, so that he can avoid prison while still being disqualified for next year’s presidential elections. On the day that his father was sentenced to prison, Congressman Eduardo Bolsonaro said that a legislative amnesty could be the fastest way to "achieve some form of justice... and bring peace to Brazil." House Speaker Hugo Motta left the outline of the bill open for discussion. "We have divergent views and interests in the House regarding the events on January 8, 2023. Motta stated as he began the procedural vote Wednesday night that it was up to the sovereign assembly to decide. Motta named Congressman Paulinho da Forca the sponsor of the Bill, tasked him with drafting the Final Version for a Vote, and gave him the freedom to make significant changes to the text. The lawmaker said that as a sponsor, he would look for a compromise and rule out the amnesty "broad, unrestricted, general, and unlimited" demanded by Bolsonaro’s closest allies. He told reporters, "I believe we will need to find a middle ground that may not satisfy the left or right but pleases the majority." The Lula government has rejected the amnesty plan. Gleisi Hoffmann, Minister of Institutional Relations, posted on social media that "far from pave the way for any peace, it would be a affront to both the Judiciary, and the democratic conscience of the country." Reporting by Maria Carolina Marcello, Sao Paulo and Eduardo Simoes; Writing by Gabriel Araujo. Editing by Richard Chang.
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S.African Transnet signs port equipment agreement with Liebherr
Transnet, a South African logistics company, announced on Thursday that it had signed a 10-year agreement with the German equipment manufacturer Liebherr to supply cranes in order to modernise and upgrade its port operations. Transnet stated that the two parties had also agreed to a 20-year Asset Management Programme, where Liebherr will provide maintenance, repairs, and spare parts for equipment. Transnet, the state-owned company that operates South Africa's port and rail freight network, is struggling to provide adequate service due to underinvestment. Equipment shortages have caused its port operations to be hampered, leading to long backlogs and affecting retailers and exporters. Jabu Mdaki, Chief Executive Officer of Transnet Port Terminals, said: "This strategic partnership empowers us significantly to boost operational efficiency, streamline logistics and reduce long-term operating costs." Transnet has already placed significant orders for Liebherr products, including four STS cranes for Durban's port. It also ordered 48 rubber-tyred (RTG), gantry cranes for Durban and Cape Town terminals.
Texas Governor signs bill to crack down on abortion pills ordered by mail
Texas Governor Greg Abbott has signed a law to clamp down on the mail-order sale of abortion pills, which are already prohibited in his state. The bill empowers private citizens to sue companies and individuals who ship these pills to Texas.
Abbott, an anti-abortion Republican who is adamantly opposed to abortion, signed the bill without any announcement on Wednesday night.
The bill was passed by the Republican-led state legislature in early October.
The bill aims to make it more difficult for women to get the prescription drugs they need to terminate their pregnancy at home, in violation of Texas' ban on abortions.
The Texas law has not yet been answered in terms of whether it will affect "shield" laws enacted by Democratic-led states, where abortion is still legal. These laws are intended to protect providers from criminal and civil penalties resulting from abortion laws in another state.
In about three months, the Texas measure will take effect. It is similar to an enforcement mechanism for citizens contained in a state law that prohibited abortions when a fetal beat could be detected.
Abortion rights advocates claim that pharmacologically-terminated pregnancies account for 63% percent of all abortions in the United States, three years after Roe v. Wade, the landmark 1973 case which established a constitutionally protected right to abortion, was overturned by the U.S. Supreme Court.
Telehealth consultations, as well as mail-order deliveries have allowed women to perform abortions at home in areas where the only alternative is for them to travel to another state where abortions are still legal.
Turning Citizens into Whistleblowers
The new law allows citizens to sue medical providers, pharmaceutical companies and delivery services, as well as individuals who helped women obtain abortion pills mifepristone or misoprostol.
If a plaintiff proves their case, they will receive $100,000 per violation.
The measure exempts women who use abortion pills from any liability. The use of misoprostol and mifepristone in medically-necessary procedures for miscarriages or ectopic pregnancy is also exempted.
If it is shown that shipping companies and drug manufacturers such as FedEx, United Parcel Service, and Amazon.com have adhered to state-imposed bans then they will not be held responsible.
John Seago of Texas Right to Life - which heavily lobbied for the bill - said that it was primarily designed to "hold individuals accountable" who mail abortion pills to Texas in order to avoid criminal prosecution.
Critics claim that the measure will encourage ordinary citizens to spy on their neighbors.
When speaking against the bill, state senator Carol Alvarado (a Democrat from Houston) said: "The bill will only work if we turn Texans on each other."
According to Seago’s group, abortion tablets are being imported into Texas at a rate of over 19,000 orders per year from other states and foreign countries.
The measure to stop the shipments was modeled on "qui tam," provisions in federal and state False Claims Act laws designed to expose fraud by allowing whistleblowers the opportunity to sue the wrongdoers, and receive a portion of the proceeds.
Some social conservatives have used citizen lawsuits in recent years to enforce anti-abortion legislation.
In a Texas law passed in 2021, which prohibited abortions after fetal heart activity was detected, a provision was included for citizen lawsuits. In the year following the Supreme Court's Roe decision, Texas and thirteen other states were able to ban all abortions. This led to the anti-abortion movement seeking new enforcement tools. Steve Gorman, Los Angeles (reporting) and Leslie Adler, editing.
(source: Reuters)