Latest News
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Norfolk Southern's profit increases by a quarter
In its first earnings report following the announcement of an $85 billion agreement to create the nation's only coast-to-coast rail freight operator, Norfolk Southern reported a higher third-quarter profit. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer company, beat Wall Street's quarterly estimates due to improved intermodal volumes, higher pricing and increased merchandise prices, which helped offset lower coking prices. Union Pacific has said that it will file its merger application at the STB before the end of this year. The review may take between 12 and 18 months. Norfolk, an Atlanta-based company in Georgia, reported a profit adjusted of $3.30 for the quarter reported, compared to $3.25 per share a year ago. The total operating revenue of the company for the third quarter increased by 2%, to $3.1 billion compared to last year. The company's adjusted operating ratio, which is a key indicator of efficiency, was 63.3% during the third quarter. This represents a 10-basis point improvement over the same period in the previous year.
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Mexican President says US players are involved in fuel smuggling
Mexico's president Claudia Sheinbaum stated on Thursday that U.S. citizens are involved in the smuggling of fuel into the country. This follows an investigation into the illegal trade which revealed how the narcos had penetrated the North American Energy Sector. Sheinbaum responded to a question regarding the report by saying, "Yes, U.S. businesses are involved in the cases being investigated." Sheinbaum's regular morning press conference was in response. "One cannot understand how fuel from the U.S. enters Mexico illegally," Sheinbaum said during her morning press conference. The investigation published on Wednesday revealed that a Houston-based company, Ikon Midstream delivered diesel to Mexico, declaring it as lubricants, which are exempted from the high import duties levied against gasoline and diesel. Ikon Midstream's executive director Rhett Kenagy declined to comment on the story via their lawyer. Sheinbaum stated that she was unaware if Ikon Midstream had been involved in Mexican investigations relating to fuel smuggling. Two Mexican security sources said that Ikon Midstream's March tanker delivery of diesel to Mexico was part of an investigation into illicit trade. The White House didn't immediately answer questions regarding Sheinbaum’s remarks. Fuel smuggling is largely a tax avoidance scheme. Mexico levies an IEPS tax on many goods including gasoline and diesel imported from abroad. The tax is charged per liter, and can cost up to 50% of the value of the cargo. Crooks avoid the tax by claiming that the fuel imported from abroad is another type of petroleum product exempted from duty. According to Mexican and U.S. sources, the Jalisco Cartel is one of Mexico's strongest and most violent cartels. It is also the leader in crude oil and fuel smuggling. MEXICAN CRACKDOWN Sheinbaum has made fighting the illicit trade an important part of her security strategy. She said that Thursday, illegal imports had dropped due to her government's crackdown. She added that this was reflected in a higher sale of legal fuel. Sheinbaum has been in office since October 2024. Authorities claim they have seized around 500 barrels of crude oil and fuel that is allegedly illegal. This is more than what the previous government confiscated during its six-year tenure. Five current and former Mexican Government sources said that illegal imports accounted for up to one-third of the diesel and gasoline markets in Mexico. Sheinbaum stated that U.S. authorities were investigating the matter, but did not provide any details. Since September 2024 the U.S. Department of the Treasury’s Office of Foreign Assets Control issued two rounds of sanction against a dozen Mexican citizens and nearly thirty Mexican companies that are allegedly connected to CJNG, its fuel theft and smuggling activities. James Lael Jensen, father of Maxwell Sterling Jensen, and his son Maxwell Sterling Jensen were both charged in May with conspiracy to launder money and to provide material support to an designated foreign terrorist group. Authorities claim that the Jensens conspired with CJNG in order to smuggle crude into the United States. James Jensen's lawyers did not reply to an inquiry for comments regarding the investigation. Robert Guerra, an attorney representing Maxwell Jensen declined to comment. Three industry sources and an official from the United States said that U.S. officials met with refiners and other fuel producers in Houston this year to discuss the Mexican organized crime's involvement in the fuel industry and to emphasize the importance of knowing your suppliers and customers. This official said that anyone who violates U.S. sanctions anywhere in the supply chain may face criminal and civil penalties.
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Pakistan bans violent Islamist group for the second time in 4 years
The government of Pakistan announced that it had banned a violent Islamist group under its anti-terrorism laws on Thursday. This comes days after five people died in a clash between the group and police during an anti-Israel protest. The government of Pakistan said that the cabinet had approved the ban. Many Pakistani governments have been troubled by the violent and large-scale street protests of Tehreek-eLabbaik Pakistan, a far-right group. The radical Sunni Muslim movement founded in 2015 has been focusing on actions that it considers to be blasphemous. In 2016, it became a political movement that used blasphemy as a rallying call. After violent protests, the Imran Khan government banned the party in 2021. The government issued a statement by the Shehbaz Shairif office that said the ban would be lifted in six months if the group stopped using violence.
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US warns that flight disruptions could increase as the shutdown drags on
Transportation Secretary Sean Duffy, along with Republican leaders in Congress, warned on Thursday that flight delays could increase as the government shutdown enters its third day and controllers are not paid for their first paycheck. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. I can't promise that your flight will arrive on time. I can't promise that your flight won't be cancelled. Duffy told a Capitol Hill Press Conference that it would depend on the air traffic controllers showing up to work every day. He said that last week, the absence of air traffic controllers was responsible for 53% flight delays, compared to 5% in normal times. House Speaker Mike Johnson stated that the Federal Aviation Administration did not have the resources to pay air-traffic controllers. He called on Democrats pass legislation to reopen government. On Thursday, the Senate will consider a bill to pay essential employees during the shutdown. Democrats are demanding that Republicans approve new healthcare subsidies to help people purchase insurance under the Affordable Care Act. The debate about the shutdown has shifted to the air traffic control system, with both sides blaming each other. Both unions and airlines are calling for a swift end to the shutdown. Johnson: "Football lovers, if you're stuck in an airport this weekend as your team is about kickoff you can blame Democrats." In 2019, the number of controllers and TSA agents absent increased during a 35 day shutdown as workers missed their paychecks. This resulted in longer wait times at checkpoints. The authorities were forced to slow down air traffic in New York City and Washington. This put pressure on legislators to end the standoff. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime to meet their staffing targets.
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Air Canada is betting on new U.S. routes out of Toronto despite the trade tensions
Air Canada will rely on the corporate market to expand service at Toronto's central airport. This includes new routes to the United States. The move is intended to boost cross-border travel, despite the trade tensions between Canada and the United States. Mark Galardo, the Chief Commercial Officer of Canada's biggest carrier, told reporters at Billy Bishop Toronto City Airport that new service would be offered from Canada's economic capital and largest city to New York City, Boston, Washington, and Chicago. Canadians are cancelling their travel plans to the United States due to President Donald Trump's trade war. Airlines like Air Canada, United Airlines and others have cut capacity on some U.S. bound leisure flights. Statistics Canada's latest September data shows that the number of Canadian residents returning to Canada and the number of non-residents who returned to Canada has declined by 16% compared to the same month last year, the eighth consecutive decrease.
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Central Europe's refining companies are watching the impact of US sanctions against Russian oil giants
Slovnaft - a Slovak refiner that processes a large amount of Russian crude oil and belongs to Hungary's MOL Group - said Thursday it would be analyzing the impact of U.S. sanctions against Russian oil companies on its operations. Donald Trump, the U.S. president, imposed sanctions against Russia on Wednesday for the first times in his second term. He targeted Lukoil, and Rosneft in an effort to press Moscow into a ceasefire agreement in Ukraine. This move has pushed up the price of oil and raised questions for Hungary, Slovakia and other EU countries that are the largest buyers of Russian crude oil. Potential HEADACHE for Refineries and Banks Last year, the MOL group of Hungary's oil and gas industry had problems obtaining supplies when Ukraine, through which the Druzhba pipe carrying supplies ran, sanctioned Lukoil. MOL has signed agreements to purchase the crude oil volumes affected at the Belarus-Ukraine borders to ensure that the flow of crude oil continues. MOL didn't immediately comment Thursday on the U.S. Sanctions, which are expected to come into effect in late November. Slovnaft, MOL's Slovak subsidiary, said: "As it is a brand new situation we need to first familiarise ourselves with the exact language of the new U.S. Sanctions and analyse their potential impact on our operations." Slovnaft will process 4.8 million tons of oil by 2024. Of this, 662,000 tons are non-Russian. MOL refines around 8,000,000 tons of oil in its Danube Refinery in Hungary. Slovak, Hungarian and other government offices did not respond to any questions. Vaclav Bartuska said that compliance departments in certain banks would have a headache for weeks to come. He was the former energy envoy of the Czech government and ambassador to Britain. Expect delays/cuts to deliveries of Russian oil. Iwona Wiesniewska of the Center for Eastern Studies in Warsaw estimates that around 80% (or more) of Russian production faces sanctions today, which makes it harder to find alternatives. Already, refineries are making changes in order to process more non-Russian crude oil. Wisniewska stated that "losing access to Russian oil does not mean the end of the business for the Hungarian refining plant -- but it definitely means a change in operating conditions." (Reporting from Jason Hovet in Prague, Marek Stezycki and Kuba Stzycki at Warsaw and Krisztina And Anita Komuves at Budapest. Mark Potter is the editor.
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Google invests in a US gas-powered plant that captures carbon dioxide for Midwest data centres
Google announced on Thursday that it had entered into the nation's first corporate agreement for the purchase of electricity from a U.S. plant that uses carbon capture and storage. The deal is to fuel the company's data centers located in the Midwest. Big Tech's plans for expanding technologies such as generative artificial intelligence that will require huge amounts of electricity have clashed with the reality of a U.S. grid that is running out of supplies. In recent months, companies such as Google have made a number of announcements to fund the construction of new and expanded plants in the United States. Google has recently made deals to purchase electricity from advanced nuclear power plants, geothermal energy and hydropower. Google is working with PJM Interconnection - the largest U.S. grid that covers the world's biggest concentration of data centres - to accelerate the connection of power sources. Google's latest agreement to purchase power involves a 400 megawatt power plant being built in Decatur, Illinois by Low Carbon Infrastructure, a privately owned company. In the early 2030s, it is anticipated that power will be produced using carbon capture. This involves trapping around 90% of CO2 emission and injecting it underground. Google has not disclosed the financial terms of this deal. Low Carbon Infrastructure stated that the project financing is expected to reach a final investment decision by the first half 2026. Michael Terrell, Google's head of Advanced Energy, explained that the concept of natural gas-fired electricity, which captures and stores carbon dioxide, had been absent from the equation. Terrell stated, "We have been focusing on developing all these new clean technologies that are available 24/7. This is a very important piece of the puzzle." It's an important technology the world needs. The Broadwing project is being built on an industrial site owned by Archer Daniels Midland, a company that has been injecting carbon dioxide into the ground from ethanol production. Jonathan Wiens is the CEO of Low Carbon Infrastructure. He said, "Broadwing shows that carbon capture today can be commercially feasible." The companies say that the construction is expected to take four years, and will create 650 jobs for union workers and 100 positions in construction management and support. The carbon sequestered on the site will be permanently stored in wells 5,000 to 7,000 feet (1 524-2 2,133 m) below ground. ADM can also purchase electricity from this operation. It will deliver power to the Midcontinent Independent System Operator (MIDSO), which covers 15 Midwest States and multiple Google data centres. Google and Low Carbon Infrastructure have said that they intend to pursue CCS facilities elsewhere in the U.S. but they did not reveal specific locations or timeframes. The International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change have promoted carbon capture and storage as a way to reduce emissions in heavy industry and power plants that use fossil fuels. Critics have however questioned the cost, scalability, and long-term efficacy of carbon capture and storage. (Reporting and editing by Marguerita Chy)
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Freeport LNG Export Plant in Texas to receive more natgas Thursday following unit outage
Freeport LNG, a U.S. liquefied gas company, had planned to receive more natural gas at its Texas export plant on Thursday. This was a sign that a liquefaction track that was shut down on Wednesday would likely be back in operation, according to data provided by financial firm LSEG, and a filing made with the state's environmental regulators. Freeport LNG is closely monitored by the global market because its operation can cause large price fluctuations. Gas prices in the United States typically fall when flows to Freeport decrease due to a lower demand for fuels from the export facility. Prices in Europe usually rise due to the drop in LNG supply available on global markets. The Freeport plant outage was a factor in the 1% decline in futures prices on Wednesday in the U.S. In Europe, prices were unchanged for reasons that are not necessarily connected to the plant. Freeport informed Texas environmental regulators on Thursday that Train 2 of its three liquefaction train was shut down due to an issue with the compressor system. Freeport officials had no comment to make on the latest power outage. LSEG reported that the amount of natural gas flowing into Freeport on Thursday was expected to reach 1.9 billion cubic feet per day. This is up from 1.2 bcfd Wednesday, and an average of 1.8 bcfd for the previous seven days. Three liquefaction plants at Freeport can convert about 2.4 billion cubic feet per day of gas to LNG. A billion cubic feet of natural gas can supply five million U.S. households for one day. Reporting by Scott DiSavino, Editing by Susan Fenton & Chizu Nomiyama
ESA to study the impact of satellite merger
The European Space Agency announced on Thursday that it would examine a newly-announced satellite combination between the three aerospace groups in order to preserve a competitive environment.
Director General Josef Aschbacher said at a press conference that ESA supports a strong industry, and that "mergers do happen". He added that when making future procurement decisions the agency will take into account the impact of this deal.
When asked about the preliminary agreement announced on Thursday, he replied: "This is a good thing because it could make the industry stronger and more competitive on the global market."
He added, "It'll change the landscape for competition. We will take that into consideration in our industrial policies and in the purchases we make."
Airbus, a Thales-led venture and Leonardo's joint venture compete against Germany's OHB and Spain's Indra as well as startups such Finland's ICEYE. However, when combined they would dominate the European satellite market.
The ESA will balance the interests of taxpayers and the strength of industry through competitions.
Aschbacher stated that the ESA will work to ensure Europe has a "very-competitive industry ...(and (that) the European space sector would be strengthened by this move". (Reporting and editing by Kirby Donovan; Tim Hepher)
(source: Reuters)