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Panama auditor files lawsuit to cancel CK Hutchison's port contract
Anel Flees, Panama's comptroller-general, announced on Wednesday that he filed a lawsuit in the Supreme Court of the country against a contract for the operation of ports near the Panama Canal held by a firm owned by Hong Kong's CK Hutchison. Flores stated that the two lawsuits were filed to declare the unconstitutionality of the port contracts for Balboa & Cristobal and nullify them. The Supreme Court must still accept the request for the complaint of the comptroller. The lawsuits are the result of a month-long audit led by Flores who publicly complained about the contract not serving the nation's interest. Flores did not make the audit public but stated on Wednesday that "many irregularities" had been revealed. A complaint can throw you for a loop In a planned deal, a consortium of MSC, the family-owned shipping company of Italian billionaire Gianluigi Aponte BlackRock, a U.S. investment company, has bought out the majority of CK Hutchison’s global port business including both ports. CK Hutchison owns 90% of the local Panama Ports Company. The company's 25-year concession for the operation of the ports was renewed in 2021. Reports indicate that the Chinese state-owned shipping company COSCO has been under pressure to sell its shares. You can also bring in other parties to the deal Flores stated, "They're talking about billion dollar deals, but they don't include Panama as the real owner of the Panamanian port." "We are not satisfied, and that is why we took the actions we did." Reporting by Elida Moreno; writing by Kylie Madry, editing by Brendan O'Boyle
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Heathrow Airport expansion plans are being considered by Britain in comparison with rival proposals
The British government will examine rival plans for expanding Heathrow, the country's largest airport in the next few months. This comes after the Arora Group announced on Thursday that it had submitted a proposal to build a new terminal and runway. Rachel Reeves, the Finance Minister, said that she wants Heathrow Airport to build a second runway in January. She is firmly in favor of expansion after years of indecision as governments have weighed environmental concerns versus growth. Heathrow Airport's plans for expansion will be submitted. Based on a plan from 2020, it is likely that a full length runway and the relocation of a portion of London's M25 autobahn are included. The government will compare that plan with the Arora Group. Heathrow Airport, located west of London is Europe's busiest hub. It operates at maximum capacity. Heathrow's two runways are in direct competition with the four runways at Charles de Gaulle Airport in Paris, Frankfurt Airport and Schiphol Airport Amsterdam. Arora Group which owns hotels, land and other properties near Heathrow has announced its Heathrow West plan. The plan includes a new terminal, a 2,800-metre runway (3,062-yards) which is too short to accommodate some of the largest aircraft. Arora Group stated that the plan is a "cost efficient solution" and does not require moving the M25. The cost of the development is estimated to be 25 billion pounds ($33.22billion). British Airways, IAG and other airlines have complained for years that Heathrow airport is among the most expensive in the world. They are worried about the impact of expansion on fees. A shorter runway that is suitable for modern aircrafts is part of the answer. IAG spokesperson stated that avoiding the M25 would reduce complexity, lower costs and improve value for passengers. $1 = 0.7527 pounds (Reporting and editing by Barbara Lewis; Sarah Young)
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Public Storage lifts 2025 forecast, misses Street estimates; shares fall
Public Storage, the operator of storage facilities, raised its core 2025 funds from operations forecast (FFO), citing an increased pace of acquisitions as well as stabilizing operations. The company expects to achieve annual core FFO of between $16.45 per share and $17, as opposed to the previous expectation of $16.35 per share and $17. The midpoint is below analyst estimates of $16.84 a share, according LSEG data. After-hours, shares of the company dropped by 1.3%. CEO Joe Russell said, "We have raised our outlook due to stabilizing operations and an increased acquisition volume." Russell said that "we are investing more than $1 billion in acquisitions and developments this year." The company's profit has been affected by higher operating costs due to inflation and a decline in the occupancy of storage units. Public Storage, a company that leases monthly storage space for both personal and commercial use, has reported revenue of $945.2 million for the three months ended June 30. This compares to analyst estimates of $1.19billion. Core FFO was $4.28 per share for the second quarter, compared with Wall Street expectations of $4.24. The company announced that it has appointed Luke Petherbridge to its board as a new trustee, with immediate effect. He will be a member in the committees for nominating, sustainability, and governance. (Reporting from Abhinav Paramar in Bengaluru, Editing by Mohammed Safi Shamsi.)
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Extra Space Storage's core FFO for the second quarter is below expectations
July 30th - Extra Space Storage, the U.S. operator of self-storage units, missed analyst's expectations for core funds generated from operations (FFO), for the second quarter. This was due to a decline in net operating income at same-stores. Salt Lake City-based real estate trust, a real estate investment trust, has also lowered its forecast for full-year core fund from operations (FFO), from $8.00 per share to $8.25. After-hours trading saw a 4.1% drop in the shares of the company. Since the beginning of the year, they have lost 0.2% in value. As they deal with fluctuating occupancy rates and increasing competition in key markets, self-storage REITs such as Extra Space face a growing challenge of weakened pricing power. The Company said that as of June 30, it managed 1,749 retail stores for third parties, and 414 in joint ventures unconsolidated. The REIT reported an occupancy rate of 94.6% in its same-stores for the quarter compared to 94% during the same period last year. The company reported that the same-store net income had declined by 3.1%. It reported core FFO for the second quarter of $2.05 per common share, which was lower than analysts' expectations of $2.06 a share. The total revenue for the three months ended on June 30 increased from $810.7 millions in the same period last year to $841.6. Analysts expected revenue of $761.9 million on average for the quarter.
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C.H. Robinson's profits beat Q2 estimates due to cost-cutting and weaker revenue
Global freight forwarder C.H. Robinson, a global freight forwarder, reported a second-quarter profit that was above Wall Street expectations on Wednesday. Cost-cutting measures including job cuts helped offset the impact of declining revenue in its ocean and truckload shipping businesses. According to LSEG data, the Minnesota-based firm reported an adjusted profit of $1.29 for the quarter ending June 30 compared to analysts' average estimates of $1.16. Total direct expenses decreased 9.2% during the quarter due to cost-saving measures and the divestiture from its European Surface Transport business. The number of employees at the company decreased by 1,616 or 11.2% on an annual basis, to 12,858. Revenue fell 7.7%, to $4.14 Billion. This was below expectations of $4.17 Billion largely because the ocean services were priced lower and fuel surcharges on truckload operations were reduced. C.H. C.H. After-hours, the shares of the company increased by more than 2%. Since the beginning of the year, they have dropped close to 6%. (Reporting from Abhinav Paramar in Bengaluru, Editing by Tasim Zaid)
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Explosive attack stops crude oil pumping in Colombia's Cano Limon - Covenas pipeline
A crude oil pipeline in Colombia's north has been shut down due to an explosive attack, Cenit, the operator of the state-owned oil company Ecopetrol said on Wednesday. Cenit said that the attack took place in a rural part of the Arauquita Municipality. It did not result in any injuries or deaths, but it prompted the company to activate its emergency protocols in order to contain the spill. Cenit didn't attribute the attack directly to a particular group. However, the Colombian armed forces claim that there are dissidents from the Revolutionary Armed Forces of Colombia, or FARC, in the area. Cenit reports that the Cano Limon - Covenas pipeline is often targeted by terrorists. It can pump up to 210.000 barrels of crude oil a day across 773 kilometers.
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US eliminates tariff exemptions for low-value products
White House announced on Wednesday that the United States has suspended a "de minimis exemption" which allowed low-value commercial goods to be sent to the United States free of tariffs. The White House announced that, under an executive order signed on Wednesday by President Donald Trump, packages sent to the U.S. valued at less than $800 outside the international postal system will be subject to "all applicable duty" as of August 29. Trump had earlier targeted packages coming from China and Hong Kong. The White House has said that the tax and spending bill recently signed by the President repeals the legal basis of the de minimis exemption globally starting July 1, 2027. The White House stated in a factsheet that Trump is taking action faster to suspend the de minimis exception than OBBBA demands, to deal quickly with national emergencies, and to save American lives and business. The postal service will charge two different tariffs for goods shipped. Either an "ad-valorem duty", equal to the tariff rate in the country of origin, or a six-month specific tariff, which ranges from $80 to $220, depending on the tariff rate. (Reporting and editing by Susan Heavey, Howard Goller and Christian Martinez)
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Trans Mountain Canada plans to open the season for capacity expansion later this year
Mark Maki, the CEO of Canada's Trans Mountain Oil Pipeline, said that the operator may begin a formal process to gauge commercial interest this year in the first project of several potential ones to increase the capacity of the system. This process, called an "open-season," will determine if there is sufficient interest from shippers to introduce chemical additives which reduce friction in pipelines, allowing increased flow. Maki stated that adding these drag-reducing compounds could increase daily delivery volumes of the 890,000.00 barrels per day pipe by 5% to a 10%. The capital cost would be between C$10,000,000 and C$20,000,000. The Canadian government owns the Trans Mountain pipeline which transports oil from Alberta to the west coast of British Columbia, where it is then shipped overseas to markets such as China. Last year, a C$34 billion expansion completed the pipeline capacity by tripling it. Trans Mountain says that the pipeline could reach its maximum capacity as early as 2027-2028. "Canadian oil shipping companies want capacity." They also want certainty. "They don't want us to be in a situation where we are short barrels," Maki stated in an interview. Canadian oil exports to the U.S. currently are exempt from tariffs. However, ongoing trade tensions between Canada and its southern neighbour have led Canada - which is the fourth largest oil producer in the world - to diversify their exports. A new oil pipeline connecting the United States to foreign markets has been gaining support in public opinion polls, but no private companies have expressed an interest in developing such a project. Trans Mountain also explores adding additional pumping station to increase flow along the line as well as construction of up to 40 kilometers (12-24 miles) of new pipes to increase the diameter of the line at certain locations. Maki stated that the cost of these projects has yet to be determined. He added that an open season would take place for these projects in 2026, with a date in service sometime in 2029. He said that if all of the Trans Mountain improvement projects are approved, Canada's oil export capacity could be increased by between 200,000 to 300,000 bpd. Canada will export an average of 4,2 million barrels per day (bpd) in 2024. This is about 80% its total production. CDN$1= US$0.72
The rupee is edging higher, but familiar resistance and support levels are expected to hold.
The Indian rupee rose on Thursday, following regional peers, as a new round of tariff threats by the White House failed to make a significant impact. Traders expect the local currency to remain in its familiar range for the near term.
The rupee closed at 85.59 at 12:20 pm IST, an increase of 0.1% over its previous closing of 85.6725.
The rupee is expected to hover between 85.40-86. This range has been settled in over the past couple of weeks as traders await the outcome of the trade negotiations with the United States.
India's talks with the U.S. continue despite Trump sending tariff letters to most regional economies. An Indian trade official announced on Thursday that a trade delegation will soon visit the U.S. for further discussions.
On Wednesday, U.S. president Donald Trump announced a tariff of 50% on U.S. imports of copper and a duty 50% on Brazilian goods. Both duties will begin on August 1.
Trump also sent tariff notices on August 1, 2018 to seven minor U.S. trade partners who exported only $15 billion worth of goods to the U.S. in the past year. This included a 20% tariff for goods from the Philippines.
The MSCI broadest index for Asia-Pacific stocks outside Japan rose 0.4%.
The dollar index was just below 97.5, while Asian currencies mostly rose between 0.1% and 0.4%.
ANZ, while the immediate response was muted in nature, said in a report that uncertain trade prospects and weaker growth expectations were likely to restrict portfolio inflows into the Asian region over the short term.
The dollar-rupee premiums on forwards remained unchanged, indicating little support for a rate cut this month. Most policymakers remain concerned about the inflationary pressures arising from tariffs. (Reporting and editing by Jaspreet K. Kalra)
(source: Reuters)