Latest News
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US adds subsidiaries to its export blacklist
The U.S. took action on Monday against companies in China and elsewhere that used subsidiaries to circumvent restrictions on chipmaking technology and equipment. According to a Federal Register posting, the Commerce Department has issued a new regulation that expands its restricted export list (known as the Entity list) to include automatically subsidiaries owned by a company listed at 50% or more. This action has increased the number of companies who need licenses in order to receive American products and services. This rule will disrupt supply chains. The rule will make it harder for companies to determine if exports are restricted to a particular customer or supplier. According to the rule certain transactions can be permitted for 60 days. The Affiliates Rule is similar to "50% rule" for entities sanctioned through the Treasury Department Office of Foreign Assets Control. If an entity is listed as owning 50 percent or greater of a subsidiary, then licenses are required to export goods or technologies to that subsidiary. Many licenses may be denied. (Reporting and editing by Doina chiacu and Chris Sanders; Reporting by Karen Freifeld)
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Drones from Turkey are circling the Gaza flotilla of aid boats as they sail east
Flight data shows that Turkey joined Spain, Italy, and Greece to monitor an international flotilla sailing across the Mediterranean Sea carrying aid for Gaza on Monday, despite Israel's warnings to stop the mission. Flight tracking sites showed that for the past three days three long-duration drones from Turkey's Corlu base have been hovering over the flotilla. This highlights the growing interest of the international community in the boats, which have pledged to break an Israeli naval blocade around Gaza. The reason for the drone flight could not be confirmed. The Turkish foreign and defence ministers, as well as the intelligence agency, did not reply to comments. FLOTILLA RESUMES JOURNEY AFTER REPAIRS On Monday, the Global Sumud Flotilla - a group of civil boats that included parliamentarians and lawyers, as well as activists such Greta Thunberg from Sweden, a climate activist - was still hundreds miles away from Gaza's coastline. People on board reported that the flotilla was heading towards an area where previous flotillas had been intercepted. The tracking sites indicated that there were about 40 boats. The flotilla's progress has increased international tensions. This is especially true after drone attacks last week damaged some of the boats. The flotilla was not injured but it had to stop for several days for repairs in Greek waters before sailing again towards Gaza at the weekend. The mission is now expected to arrive in Gaza within four days, according to the organizers on Monday. Italy and Spain sent navy ships to the flotilla for humanitarian or rescue needs but they have not engaged militarily. Greece's coastguard also kept track of the progress when the flotilla entered its rescue zone. It warned Sunday that the flotilla is approaching a zone of high risk and repeated the proposal made last weekend for the flotilla take the aid to Cyprus to be distributed in Gaza by Roman Catholic Church. The flotilla rejected this idea. Concerns over a possible ISRAELI response "Israel has repeatedly shown that it has no redlines, so it's clear that we are concerned by what it might do." Benedetta Scudderi, an Italian member of the European Parliament, spoke to Radio 24 in Italy on Monday. Israel has not commented on the drone incident last week, but it has said in the past that it will use all means possible to stop the boats from reaching Gaza. It argues that its naval blocade is legal because it is fighting Hamas militants within the coastal enclave. The Italian newspaper La Stampa reported that Israeli President Isaac Herzog had assured the Italian Ambassador to Israel on Sunday that Israel would not "use lethal force" towards the members of the flotilla. The message was not confirmed immediately. Israel launched its Gaza offensive in response to the Hamas-led attack of October 7, 2023 on Israel, which resulted in 1,200 deaths and 251 hostages being taken back to Gaza. Gaza's health authorities report that the offensive has left over 65,000 dead in Gaza and many others in need of food or aid. Reporting by Alvise Armeni in Rome, Angeliki Koutantou and Tuvan Gümrukcu in Ankara and Omer Berberoglu and writing by Angeliki Koutantou. Editing and assistance by Edward McAllister and Aidan Lewis.
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Beta Technologies, a startup in the aerospace industry backed by Amazon, filess for US IPO
Beta Technologies, a startup in aerospace, filed its initial public offering (IPO) in the United States Monday. It is the latest company in the race to take advantage of the record-breaking bull market in equity markets. A combination of easing trade tensions and robust stock markets, as well as pent-up demand from investors, has created one of the most active listing windows in recent years. Leading the pack are technology, aerospace, and green energy companies. Beta Technologies, which is backed by the tech giant Amazon did not reveal its size or terms. The company aims to be listed on the New York Stock Exchange with the symbol "BETA." Beta Technologies is a company that designs, manufactures, and sells electric aircraft with high performance, as well as advanced propulsion systems, components, and charging systems. Morgan Stanley and Goldman Sachs were the main underwriters. (Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar and Anil D'Silva)
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Nigeria to certify C919 jets for local airlines
Director general of the Nigerian civil aviation authority said that they are looking at certifying China’s C919 jets for Nigerian carriers. This is because Nigerian airlines have taken on more aircraft, and relations with Beijing are warming up. COMAC, a Chinese planemaker, is currently producing the C919 narrow-body aircraft to compete with the leading Western planemakers Airbus & Boeing and has had several discussions with Nigeria about the aircraft. This month, the Nigerian aviation minister said that Nigeria is open to COMAC to use the country as an access point to the larger African market. COMAC, the state-owned company, faces some challenges. The two models of its planes do not have benchmark certifications by Western regulators and the company is behind in delivery targets. Due to trade disputes, the U.S. temporarily halted the exports of CFM engines used on the C919 this year. NIGERIA’S GROWING AVIATION MARKET Nigeria, Africa's largest nation, with 230,000,000 people, is a potential aviation market. Director general of the civil aviation authority, Capt. Chris Ona Najomo told reporters that the agency was considering the lengthy certification process to allow the jet to fly on domestic routes. "We are looking at the certification for the aircraft." Najomo told the U.N. Aviation Agency's Montreal assembly that the certification of the aircraft is the first thing we need to do. COMAC will display one of their planes at Nigeria’s first international airshow in December, according to a spokesperson, who did not specify which model. COMAC OFFERS MAINTENANCE SUPPORT FOR NIGERIAN CARRIER Najomo stated that COMAC officials have offered maintenance and support for any planes flown by Nigerian carriers and are exploring dry lease arrangements which involves leasing aircraft without crew. Najomo stated, "We told them it would be better if they could facilitate a dry lease agreement that was good." Abdullahi Ahmed expressed an interest in expanding the fleet of Nigerian airline NG Eagle beyond its three jets. He said he'd consider COMAC aircraft if they were certified and accompanied with maintenance and training assistance. The improved Aviation Working Group Rating of Nigeria reflects a stronger compliance with Cape Town Convention. This is a treaty which simplifies the leasing of aviation equipment. Najomo stated that this was an encouraging development for lessors and would allow the 13 airlines of the country to have access to newer aircraft on the leasing market. IATA data shows that while air travel is still expensive for many Nigerians it has fallen by 43.6% in real terms between 2011 and 2023. At the moment, only Chinese airlines operate the C919. Three airlines in Southeast Asia also fly COMAC's C909 regional jet.
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Steve Angel is named as the new CEO of CSX
CSX Corp announced on Monday that Steve Angel will be its new CEO as of September 28. In premarket trading, shares of the company increased by about 3%. Angel succeeds Joe Hinrichs. Angel will work closely alongside the board and management in order to assist with the transition. He has more than 40 years of experience. This includes 22 years with General Electric and Linde plc, where he worked in locomotives and rail operations. Ancora Holdings, a group of activist shareholders, had urged CSX to explore merger options in order to replace Hinrichs. Union Pacific, the U.S. railroad giant, and Norfolk Southern announced a $85 billion surprise deal earlier this week. This fueled speculation that CSX might also consider a merger. (Reporting from Nathan Gomes, Bengaluru. Editing by Mrigank Dahniwala.)
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Data shows that more cargoes coming from the Arctic LNG 2 project are heading east.
According to Kpler's and LSEG's ship tracking data, two liquefied gas tankers are heading eastwards towards Asia with cargoes from Russia’s Arctic LNG 2 Project. They picked up fuel for the project sanctioned in the last week. The LNG tankers Voskhod and Christophe De Margerie are traveling north from Russia to Asia via the Northern Sea Route. According to data, they had previously berthed respectively at Arctic LNG 2 between September 23 and 26, according to the data. According to Kpler, both tankers were empty when they arrived. Christophe De Margerie left loaded on 25 September while Voskhod also left loaded on 27 September. Arctic LNG 2 has already loaded at least seven cargoes in the past year. Six LNG cargoes have already been delivered from the project to China's Beihai Terminal. According to the shipping database Equasis, the commercial manager or ship for Christophe De Margerie has an address in Dubai. Zelitiko Shipping is its registered owner, and shares the same address with Gas Carriers SCF Management. Voskhod is registered as LNG Beta Shipping, with the same address, as Igarka OOO, which is listed as its owner or ship manager. Gas Carriers SCF Management Zelitiko Shipping Igarka and LNG Beta Shipping could not be reached. The Arctic LNG 2 is 60 percent owned by Russia's Novatek, and it is subject to Western Sanctions over Moscow's War in Ukraine. The plant was to be one of the largest in the country, with a projected output of 19,8 million metric tonnes per year. Reporting by Emily Chow Editing and Mark Potter
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Oil prices fall 1% due to expected global supply growth
The oil price fell more than 1% Monday, as OPEC+ announced plans to increase oil production in November. Also, the Kurdistan region of Iraq resumed oil exports via Turkey. This increased the outlook for global oil supply. Brent crude futures fell $1.01 or 1.4% to $69.12 per barrel at 1019 GMT, after reaching their highest level since Friday, July 31. U.S. West Texas Intermediate Crude was down $1.11 or 1.7% at $64.61. OPEC+ (the Organization of Petroleum Exporting Countries, its allies and the group known as OPEC+) is expected to approve a further increase in crude oil production during its Sunday meeting. Three sources said that the group will confirm an increase in November of at least 137,000 barrels a day as higher oil prices encourage efforts for regaining market share. OPEC+ is pumping less than their targets by almost 500,000 bpd, which defies market expectations that there will be a glut of supply. Iraq's oil minister said that crude oil from the semi-autonomous Kurdistan Region in northern Iraq flowed into Turkey on Saturday for the first time since 2-1/2 years. Iraqi Oil Minister told Kurdish radio Rudaw that after years of deadlock an interim agreement will allow up to 190,000. bpd crude oil to flow into Turkey's Ceyhan Port. It is estimated that the resumption will eventually bring 230,000 bpd worth of crude oil back onto international markets. The price drop on Monday followed a weekly gain of over 4% in both benchmarks for the last week, after Ukrainian drones attacked Russian energy infrastructure. "Ukraine smells blood naturally here" SEB analysts say that Ukraine is likely to intensify its attacks on Russian refineries. Russia launched a sustained attack on Kyiv, Ukraine and other parts early Sunday morning. This is the longest-lasting assault on the capital city since the Russian invasion of 2022. The United Nations has re-imposed an arms embargo on Iran and other sanctions over its nuclear program. Tehran has warned the measures would be met with a harsh reaction.
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French court reopens trial 16 years after AF447 disaster
The French Court of Appeal will start a new trial Monday against Air France and Airbus, 16 years after the crash of a jetliner into the Atlantic that killed all 228 passengers. In 2023, a lower French court cleared the two companies of corporate murder following a landmark public trial on the June 1, 2009 disappearance of Flight AF447 en route between Rio de Janeiro and Paris. French investigators discovered that after a two-year hunt for the A330 black boxes, pilots mishandled temporary data loss from iced up speed sensors, and sent the jet into a free fall or aerodynamic stall without responding to warnings. The trial, which took place more than a century later, also revealed discussions between Air France (now Airbus) and the sensor manufacturers about the growing problems of the "pitot probes" that are used to generate speed readings. A Paris judge, after nine weeks of evidence, listed four acts by Airbus, and one by Air France. However, the judge found that these acts were not sufficient under French criminal law in order to establish an irrefutable link between the loss of this jet during the midnight storm. The second trial will likely last two months, with lawyers from the families of the victims trying to convince the appeal judges that the accident was directly linked to the negligence previously identified. Sebastien BUSY, an attorney for one of the largest associations of relatives of victims, said that it was painful for families to revisit everything 16 years after the incident. But, it's important to continue and prove criminal responsibility. He said that if you removed one of these acts of negligence, the accident wouldn't have happened. Both companies have denied all criminal charges. The maximum fine for corporate murder is only 225,000 euros. However, prosecutors are hopeful that a second trial will provide families with a cathartic experience, as they protested the previous verdict. The AF447 tragedy has been one of the most discussed in aviation, and it led to a variety of changes both technical and training. The prosecution has argued that Airbus failed to adequately train pilots and reacted too slow to the increasing number of speeding incidents. The previous trial revealed bitter divisions among two of France's leading companies about the relative roles played by pilots and sensors in France's worst air accident. During the first hearing on Monday, which begins at 11:30 GMT, Airbus and Air France's chief executives are expected to give statements. (Reporting and editing by Alistair Bell, Alex Richardson and Tim Hepher)
Ares Management acquires Meade Pipeline at $1.1 billion
Ares Management announced on Monday that its infrastructure funds had purchased Meade Pipeline, a natural gas pipeline in the U.S. for approximately $1.1 billion. This acquisition adds a major asset to Ares Management's U.S. Energy business at a time when demand for gas and power is surging.
The investment company buys it from affiliates XPLR Infrastructure - a leading independent energy producer founded by NextEra Energy.
Ares has a greater stake in energy infrastructure, as investors and utilities look for reliable fuel supplies to support intermittent renewables.
Steve Porto, partner of Ares Infrastructure Opportunities, said: "Driven largely by industrial activity, electrification and increased LNG exports, the demand for power and natural gases is growing rapidly."
Meade has a 40% stake on the Central Penn Line. This 180-mile pipeline transports gas from Pennsylvania's Marcellus and Utica Shale Basins to demand centers located in the U.S. Northeast and Southeast.
Williams' Transcontinental Gas Pipe Line (Transco) is a joint-owner and operator of the system.
Central Penn Line began operating in 2018 and can transport 2.3 billion cubic foot per day. This includes the capacity of its Leidy-South expansion, completed in 2022. (Reporting and editing by Anil D’Silva in Bengaluru, Sumit Saha from Bengaluru)
(source: Reuters)