Latest News
-
US Supreme Court rejects CSX's bid to revive antitrust lawsuit against Norfolk Southern
The U.S. Supreme Court refused on Monday to hear the freight rail giant CSX’s bid to revive an antitrust suit accusing Norfolk Southern of restricting illegally access to a major East Coast terminal in Virginia. CSX lost hundreds of millions in profits. The Justices rejected an appeal from CSX against a ruling by a lower court last year that said the Jacksonville, Florida based company had sued too late and missed a four-year window for bringing claims under U.S. Antitrust Law. CSX argued that the statute of limitation should not apply to its lawsuit. CSX filed a lawsuit against Norfolk Southern in Virginia in 2018. The court accused the rival shipper, Norfolk Southern, of conspiring to charge excessive fees for services at Virginia’s Norfolk International Terminals - one of the East Coast's most important terminals. Norfolk Terminal is used by large international container ships to unload cargo on trains and trucks bound for inland destinations. Norfolk & Portsmouth Belt Line is a small railroad, majority owned by Norfolk Southern, that provides track and "switching services" at the terminal. CSX doesn't own the tracks at docks, so it has to pay for access. The suit alleged that Norfolk Southern, Norfolk & Portsmouth Belt Line and Norfolk Southern in 2009 had set a $210 track rate per railcar that is still in effect today. According to the CSX suit, Norfolk Southern's advantage allowed it to artificially raise prices for ocean carriers who rely on Norfolk terminal. CSX claims it is prohibited from entering profitable contracts with ocean carriers. CSX stated that Norfolk Southern's practice to allegedly overcharge for terminal access continued each day it was in place. Therefore, the four-year statute should not have barred the filing of a lawsuit. Richmond, Virginia's 4th U.S. In 2024, the Circuit Court of Appeals upheld a court's dismissal of CSX lawsuit. The 4th Circuit ruled that Norfolk Southern's rail charges did not "inflict any new harm causing a new injury to CSX in the limitations period." In its appeal to Supreme Court, CSX claimed that the 4th Circuit decision created an immunity shield which allows Norfolk Southern to sidestep competition at their terminal in Norfolk. Norfolk Southern, in its submission to the Supreme Court said CSX had "sat on their hands" for 9 years before filing a suit. Norfolk Southern stated that the 4th Circuit correctly determined that the date 2009 when the rate was established "was outside of the statutes of limitations and that maintaining this rate was an inaction which did not retrigger statutes of limitations on a day-to-day basis."
-
Gulf issuers are planning more debt sales despite recent market turmoil.
Sources say Gulf issuers are working on bond offerings including Saudi Arabia's sovereign wealth fund worth $925 billion. They have braved the debt markets in spite of recent turmoil caused by President Donald Trump's policies regarding tariffs. Investors are struggling to determine where Trump's policies will lead. The markets have been volatile ever since Trump announced his sweeping tariffs in April, even though he has rolled back most of them. Two sources who are directly involved in the matter have confirmed that Saudi Arabia's Public Investment Fund is looking to raise $1.5 billion to $2 billion through a sukuk or Islamic bond over the next few weeks. The fund has raised more than $11 billion in this year. The kingdom is under increasing pressure to increase debt or reduce spending following a drop in crude oil prices that threatens to wipe out tens billions of dollars. Zeina Rizk is co-head fixed income at Amwal Capital Partners. She said that the Middle East's main concern was oil prices. However, both corporations and governments had very strong fundamentals. Reserves were increasing, and everything was going well. Two sources have said that Abu Dhabi Ports Company plans to raise $2 billion over the next few weeks. One source said that Masdar, a renewable energy company, aims to raise $1 billion through a green bond. This was confirmed by another person. Sources added that plans are not finalised. PIF has declined to comment. AD Ports, Masdar and PIF were not available for immediate comment. In recent years, state-owned companies in Saudi Arabia and United Arab Emirates raised debt to finance an acquisition spree abroad. This was part of government mandates that sought to create national champions and diversify the economies. The recent turmoil on the bond market means that issuers will face higher borrowing rates. Rizk stated that she is not worried as long as the markets remain relatively stable, like they did last week. She said that the launch by Mashreq of a $500-million sukuk in Dubai last week is a good indication. Sources said that Saudi Arabia's Banque Saudi Fransi also plans to raise money this week through a bond above the benchmark. Saudi National Bank raised $750m through a dollar bond issued in Taiwan. BSF did not respond to a request for comment immediately. Saudi Arabian banks have played a key role in the financing of mega-projects like NEOM, Qiddiya, and Red Sea Projects, which collectively required hundreds of billions in funding. Fitch predicts a credit growth in the Saudi banking sector of 12-14% by 2025. The lending growth will continue to exceed deposits, further increasing the deposit gap that was predicted at 0.3 trillion Riyals ($79.96billion) in 2024. $1 = 3.7517 Riyals (Reporting and editing by Federico Maccioni, Hadeel al Sayegh)
-
Dollar weakness and resilient Chinese demand are driving iron ore prices higher.
Iron ore prices saw a slight decline on Monday. Prices were supported by a near-term demand for ore and weakened U.S. dollars, which outweighed ongoing trade tensions between the U.S. The May contract for the most traded iron ore on China's Dalian Commodity Exchange closed at 715.5 Yuan ($98.15), a 1.27 percent increase. As of 0707 GMT, the benchmark May iron ore traded on Singapore Exchange was 1.69 % higher at $99,15 per ton. In a recent note, Hexun Futures said that the hot metal demand was strong and production at an all-time high. Iron ore demand is usually gauged by the hot metal production. Mysteel, a consultancy, said in a report that "production among China's independent EAF steelmakers has now increased for 10 straight weeks." A weaker dollar also helped to support prices. The U.S. currency fell to a 3-year low on Monday, 98.246 versus a basket. Dollar-denominated goods are cheaper for holders of currencies other than the dollar. Last week, U.S. president Donald Trump expressed optimism that both countries could come to an agreement. China warned against a wider economic deal with the U.S. on its cost, increasing its rhetoric amid a trade war that has spiraled out of control between the two world's largest economies. Coking coal and coke, which are used to make steel, have both gained in value, rising by 1.27% and 1.25 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange were flat. Hot-rolled coils were up by 0.69% and rebar was up around 0.8%, while stainless steel traded flat. $1 = 7.2900 Chinese Yuan (Reporting and editing by Janane Venkatraman, Mrigank Dhaniwala).
-
Malaysia Airlines to buy new Boeing jets if China rejects them
Malaysia Airlines parent company, Malaysia Aviation Group is in talks with Boeing to acquire new jets if Chinese Airlines stop taking delivery, according to its managing director, who spoke at a Malaysian news outlet Bernama. Boeing is returning some 737 MAX aircraft to the U.S. after placing them in China before delivering to Chinese customers. It is unclear who made the decision, as neither Boeing nor China have commented on the reason for the return of the jets. Malaysia Airlines didn't immediately respond to our request for a comment. If Boeing delivery slots become available as a result of the tariff war between the United States and China, MAG views this as a window to secure earlier-than-expected deliveries, Bernama reported MAG's Izham Ismail as saying. Ismail, speaking to Bernama, said that MAG was in talks with Boeing regarding the possibility of taking over these slots. Boeing's production has been slowed by increased regulatory scrutiny, a strike and the post-pandemic supply bottlenecks. MAG, which is owned by Malaysian sovereign fund Khazanah Nasional has been steadily expanding and renewing their fleet. They aim to operate a fleet of 55 narrow-body 737 MAX aircraft from the new generation by 2030. It announced last month that it would purchase 18 737 MAX 8 aircraft and 12 737 MAX 10 jets, with the option to buy 30 more. The company also has an agreement to lease 25 737 MAX aircraft from Air Lease Corp. between 2023-2026. Ismail stated that any possible arrangement to take additional planes out of vacated delivery slot would not be included in the Air Lease Corp deal and MAG would have to go to capital markets to raise additional funding. (Writing by Lisa Barrington. (Editing by Gerry Doyle).
-
Dollar weakness and resilient Chinese demand boost iron ore prices
Iron ore prices recovered on Monday as a result of a weaker dollar and near-term demand for ore. However, ongoing trade tensions with China, the top consumer, limited gains. As of 0244 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was trading 0.78% higher. It was 712 yuan (US$97.70) per metric ton. The benchmark iron ore for May on the Singapore Exchange rose 1.23% to $98.7 per ton. In a recent note, Hexun Futures said that the hot metal demand was strong and production at an all-time high. Iron ore demand is usually gauged by the hot metal production. Mysteel, a consultancy, said in a report that "production among China's independent EAF steelmakers has increased for 10 straight weeks." A weaker dollar also helped to support prices. The U.S. currency fell to a 3-year low on Monday, 98.623, against a basket. Dollar-denominated goods are cheaper for holders of currencies other than the dollar. Last week, U.S. president Donald Trump expressed optimism that both countries could come to an agreement. Xie feng, China's ambassador in the United States, urged Washington to find common ground with Beijing on Saturday, warning that China was ready to retaliate if the trade war escalated. Galaxy Futures said that while there are signs that tariff policies are being eased, concerns about tariffs are still affecting the outlook of Chinese steel exports on a medium-term basis. Coking coal and coke, which are used to make steel, have both gained in value, up by 0.95% each and 0.42% respectively. The benchmarks for steel on the Shanghai Futures Exchange were flat. Hot-rolled coil and rebar were up around 0.5%, whereas wire rod was down about 0.27% and stainless steel fell by 0.47%.
-
China's ENN and Zhenhua Oil sign LNG deals with ADNOC
China's privately-controlled ENN Natural Gas, and the state-run Zhenhua Oil each signed a contract to purchase liquefied gas from Abu Dhabi National Oil Company. ENN Natural Gas announced on its WeChat official account on Saturday the contract covers annual supplies of around one million metric tonnes for 15 years. This is ADNOC’s largest LNG deal with a Chinese customer. ENN stated that the deal was a major step towards stabilizing and diversifying energy supplies. Shanghai-listed ENN Natural Gas is offering to buy the remaining shares of Hong Kong-listed ENN Energy for approximately $7.65 billion. A Chinese source familiar with the deal said that Zhenhua Oil, a state-owned oil and gas trading company, had also agreed to a five-year contract with ADNOC, starting in 2026, for up 12 cargoes per year. The source declined to give his name as he was not authorized to speak in the media. Zhenhua Oil is building its LNG terminal in Rudong. It will be operational in the first quarter 2026. ADNOC CEO Sultan Al Jaber was present at the opening ceremony of the new Beijing office, according to a source in the industry who was there, as well as a report from Dubai's China-Arab TV. The report did not give any further details but said that ADNOC signed three LNG deals with Chinese partners on Al Jaber's trip. Zhenhua Oil & ADNOC did not respond to requests for comment on the weekend.
-
DHL suspends global shipments above $800 for US consumers
DHL Express is a division within Germany's Deutsche Post. It has announced that it will suspend all global business-to consumer shipments of over $800 in value to individual customers in the United States as of April 21. This is due to changes made by U.S. Customs regulations which have increased clearance time. The notice posted on the website of the company was not dated but metadata indicated that it was created on Saturday. DHL attributed the stoppage to new U.S. Customs rules that require formal entry processing for all shipments over $800. Prior to April 5, the minimum was $2,500. DHL stated that business-to-business shipping would not be suspended, but may face delays. Changes to DHL's policy do not affect shipments under $800, whether they are sent by businesses or consumers. In a statement, the company stated that this is a temporary move. DHL responded to questions last week by saying that it will continue to process shipments to the United States from Hong Kong "in accordance to the applicable customs regulations and rules" and that they would "work closely with our customers in order to help them adapt to the planned changes for May 2. This came after Hongkong Post announced last week that it had suspended its mail service for goods shipped by sea to the United States. It accused the U.S. Reporting by Amy Lv in Beijing and Lewis Jackson; editing by Saad sayeed
-
Boeing jet from China returns to the US, a victim in Trump's tariff war
The Boeing jet, intended for a Chinese carrier, was returned to the U.S. production center of the planemaker on Sunday. It is a victim the bilateral tariffs imposed by President Donald Trump as part of his global trade offensive. A witness said that the 737 MAX was intended for China's Xiamen Airlines and landed on Boeing Field in Seattle at 6:11 p.m. (0111 GMT). The Xiamen livery was on the aircraft. The jet was among several 737 MAX aircraft waiting for completion at Boeing's Zhoushan center before being delivered to a Chinese airline. This month, Trump raised the baseline tariffs for Chinese imports from 125% to 145%. China has responded by imposing a 125% duty on U.S. products. The tariffs could cripple a Chinese airline that takes delivery of a Boeing jet, as a new 737 MAX is valued at around $55million, according to IBA Aviation Consultancy. Boeing didn't immediately respond to a request for comment. Xiamen has not responded to a request for comment. Boeing's top-selling 737 MAX is back, the latest disruption in new aircraft deliveries caused by the breakdown of decades-old duty free status for the aerospace industry. Boeing is recovering from a five-year-old import ban on the 737 MAX and previous trade tensions. Analysts say that confusion over tariff changes could cause many aircraft deliveries to be delayed. Some airline CEOs have said they will defer plane delivery rather than pay duty. (Reporting from Dan Catchpole in Seattle, Lisa Barrington in Seoul and William Mallard and Joe Brock)
Airbus CEO states CFM engine products possible, but tight
Airbus CEO Guillaume Faury said on Tuesday that it might potentially relieve an engine supply bottleneck and satisfy yearend targets, telling Reuters that CFM International ought to have the ability to provide enough units but it would be very tight.
A shortfall in engine supplies from CFM, co-owned by GE Aerospace and Safran, has actually been partially blamed for slow Plane jet deliveries given that the summer season.
That leaves the planemaker with around 200 jets to deliver in the last 2 months to reach a 2024 goal of around 770 jets - a task some experts state looks increasingly out of reach.
Asked whether CFM was able to release adequate engines to Airplane to support the planemaker's end-year objectives, Faury said: In the short-term it is extremely tight ... I will only know for sure at the end of November.
He included: It should be ok; I don't know yet. It will be within a few engines - not tens of engines - if any.
CFM, which had no immediate remark, is among two suppliers for the narrowbody A320neo household, Plane's very popular jet. It takes on RTX unit Pratt & & Whitney, which has likewise had different obstacles.
Like other engine makers, CFM has been having to juggle in between competing needs for engines for new jet production and the worldwide service center that keep existing planes in service, while also trying to prop up a weak supply chain.
The tussle led to visible stress between Airplane and the market's biggest engine provider over the summer season, when Plane decreased its 2024 shipment target to around 770 jets from 800, mentioning supply issues at CFM in addition to makers of other parts.
But talking to Reuters on the sidelines of a market event in Brussels on Tuesday, Faury struck a more relaxed note and noted that things had not been made easier on the supply chain by the effect of the recent Hurricane Milton.
They (CFM) are serving us reasonably well given those situations, he said.
Airbus provided 62 jets in October to bring the total in the very first 10 months of the year to 559.
Some experts have stated Jet could need to cut its assistance once again around completion of November if the circumstance does not improve. Plane is widely anticipated to make the most of flexibility in the wording of its target to justify shipments as low as 750 without making any official brand-new downgrade.
Jet, which is out-producing Boeing as its U.S. competitor slowly emerges from an internal crisis, is relying on deliveries of engines along with other parts like seats and landing equipment to manage another last-minute rise in deliveries this year.
However experts warn it needs to do so with a supply chain that has been deteriorated by the pandemic and scarcities of parts and labour, meaning its industrial targets stay on a knife-edge.
(source: Reuters)