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Kazakhstan's oil exports from January to July to Germany have risen 38%
Kaztransoil, a pipeline company, said that Kazakhstan's oil exports from Germany to Russia via the Druzhba pipe for January to July jumped 38% on an annual basis to 1.086 metric tons (37.550 bpd). The barrels-per-ton ratio was 7.33. The company reported that the total amount of supplies through the Druzhba pipe in July was 160,000 tonnes, which is the same as June but up 11,000 tons compared to the same month last. Kaztransoil reported that the oil exports through the Baku, Tbilisi and Ceyhan (BTC), pipeline rose 10% compared to the same period in last year. The total was 923,000 tonnes. The volume in July was 138,000 tonnes, down from June's 148,000 tons. The BTC crosses Azerbaijan and Georgia, as well as Turkey, to allow Kazakhstan to export crude oil via the Caspian. This route allows Kazakhstan to bypass Russia in its commodity exports. It is the largest landlocked nation on earth. Over 80% of Kazakhstani oil is exported via another pipeline, operated by the Caspian Pipeline Consortium. This pipeline connects Tengiz in western Kazakhstan, as well as a few other fields with a marine port near Russia's Black Sea Port of Novorossiisk. David Goodman is responsible for reporting and editing.
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Northvolt's creditors will suffer a great deal of loss if the company files for bankruptcy, says a trustee
The bankruptcy of Northvolt will result in a large loss of funds for many of its creditors, said the process trustee on Friday. He added that the sale of Northvolt to the U.S. startup Lyten was a major achievement. Northvolt's unsecured creditor list includes its biggest shareholders Goldman Sachs, and Volkswagen, whose brands Scania Porsche and Audi had been customers of the battery manufacturer. Lyten, backed by Jeep owner Stellantis, and FedEx delivery service, announced on Thursday that it would purchase the majority of Northvolt. This move offers a chance for the European firm to regain its former prominence as a regional answer to Asian rivals. Northvolt, which owed more than $8 billion dollars in debt, filed for bankruptcy in November last year. The trustee didn't specify how much creditors might lose in the bankruptcy process. The bankruptcy trustee Mikael Kubu stated that the acquisition of Swedish assets would be completed by the end October, while the transaction abroad will take "a little more time". Marie Mannes is reporting, Essi Lehto is writing, Emelia Sithole Matarise and Kirovan Donovan are editing.
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Expedia shares surge on positive forecasts and US travel rebound
Expedia shares surged by more than 17% on Friday in premarket trade after the online travel agency raised its forecast for full-year gross reservations and expressed optimism about the recovery of U.S. demand. Expedia is the newest travel company to suggest a recovery in demand. This follows a dip earlier this year, when consumers were worried about the economic impact President Donald Trump’s tariff policies. Ariane Gordon, CEO, said in the earnings call held on Thursday that "since the beginning of July we have seen a rise in travel demand in general, especially in the U.S." The company now expects gross bookings in 2025 to increase between 3% and 5%. This is an increase of 1 percentage point over its previous forecast. Morningstar analyst Dan Wasiolek predicts that bookings will continue to grow at a faster rate, reaching 7% by 2026. This is due to the improvement in demand and policy visibility. Travel spending was disrupted by tariffs, but it seems that prospective U.S. travellers are willing to book again, said Danni Hewson. Expedia also focuses on simplifying the organizational structure of its company by eliminating roles, streamlining operation and deploying generative AI technologies. The company exceeded its May guidance for a 75 to 100 basis point increase in the second quarter. Michael Bellisario, Baird analyst, says that the most important takeaway from this report is Expedia's commitment to a strategic approach and its tighter control of expenses. Expedia, along with industry peers Marriott and Airbnb, also noted that bookings were strong from consumers who earned more money. Lower-income consumers, however remained cautious about their discretionary spending. Expedia shares are trading at about 12.01 times the estimated future profit, which is below the industry average of 14.19. Reporting by Aishwarya Jain, Bengaluru. Editing by Devika Syamnath.
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China closes the gap with US to become Germany's largest trading partner
The German Statistics Office released preliminary data showing that China was close to surpassing the United States in the first half 2025 as Germany's biggest trading partner. German exports to America were declining amid increased tariffs. Calculations show that German exports and imports to the U.S. amounted to 125 billion euro ($145 billion) between January and June. Trade with China was 122.8 billion euro. Vincent Stamer is an economist at Commerzbank. He said that although the U.S. managed to maintain its status as Germany's top trading partner, it was only a razor-thin lead in German trade with China. In 2024, the U.S. overtook China as Germany's number one trading partner. This ended an eight-year streak of China. Germany was trying to reduce its dependence on China. Berlin blamed political differences with Beijing and accused Beijing of unfair business practices. In 2025, the trade dynamics will shift again with Donald Trump returning to the White House, and new tariffs. In July, the EU-U.S. trade agreement set tariffs of 15% on most products. Juergen Matthews, director of the Cologne Institute for Economic Research's international economic policy, said that the losses in German exports will continue to grow and may even increase as the year progresses. German exports to America fell by 3.9% in the first six months of the year, to 77.6 Billion Euros. Commerzbank predicts that new U.S. Tariffs will slow Germany's Exports to the U.S. between 20% and 25% in the next two Years. Stamer stated that "China is likely to return to the top of Germany's trading partners by the end of the year." CHINESE IMPORTS SURGE In the first half of 2018, imports from China increased 10.7% compared to last year, and reached 81.4 billion euro. Stamer stated that German consumers and companies find it difficult, "to replace Chinese products" Carsten Brzeski is global head of macro at ING. He believes that the rise could be a sign that China is redirecting its trade from the U.S. into Europe and flooding the German market with cheaper goods. Matthes, of Cologne Institute, says that a significant undervaluation in the yuan compared to the euro makes Chinese imports more affordable. Exporters struggled amid increasing competition from Chinese manufacturers. A sharp drop in exports to China combined with a surge in imports has resulted in a record-breaking trade deficit of over 40 billion euros. This is only second to the one set by 2022. Matthes stated that "all these developments harm the German economy, and worsen the industrial crisis."
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Boeing's CEO brought the company out of a nosedive but there are new challenges ahead
After taking over the company during Boeing's worst crisis in decades one year ago, Kelly Ortberg stopped its freefall. He faces new challenges, including ramping up jet manufacturing, revitalizing the struggling Defense and Space division, and returning profitability to the legendary planemaker. Ortberg had retired to Florida and was enjoying a comfortable retirement when Boeing's Board offered him the job of CEO at a company that was losing money and suffering from a damaged reputation. After a midair panel blowout in January 2024 on a new MAX, the crisis deepened. This prompted his predecessor to leave and brought back memories of two deadly MAX crashes in 2018 and 2019. These crashes killed 346 people. Ortberg promised to restore trust and stay close to the factories, as well as ensure Boeing met their commitments to quality, safety, and transparency. Boeing has had a series of successes since then: It has improved the efficiency and quality of the 737 line; it has navigated the trade policies of President Donald Trump; it has reached an agreement with the U.S. Department of Justice, to drop prosecutions over the crashes; and signed blockbuster deals for airplanes. The stock of the company is up 39% compared to a year earlier, and has seen its biggest gains in recent months due to an increase in 737 production. Boeing, however, is still losing money. It trails Airbus on the single-aisle aircraft market. It struggles to fix its space programs and its defense programs. Ortberg's first challenge is to increase production of the 737 MAX back to levels seen before the crisis, and then beyond. This will allow Boeing to replace this model with a future model. The biggest risk that Boeing faces in the future is whether they become a great company or a mediocre one. Ron Epstein is an aerospace analyst at Bank of America. Boeing refused to allow Ortberg to be interviewed. CULTURE CHANGE Ortberg is an Iowa native who spent years climbing the ranks of avionics company Rockwell Collins. He became CEO, and led it through a number of deals that resulted in aerospace firm RTX. He retired in 2021. Jans Timmers who worked directly for Ortberg at Rockwell Collins recalled Ortberg telling him, when dealing with an expensive program, "Put everything on the table and we'll deal with it." "And that is what he does at Boeing right now," he said. Boeing, once hailed for its role in winning World War II and putting men on the Moon, had been associated with cutting corners, prioritizing profit over quality and misleading regulators. Ortberg focused on fixing the basics, reducing defects, eliminating work that was out of sequence, and improving the overall build quality, rather than just pushing out more jets. "Give it a damn!" "Give a damn!" became one of Boeing’s core values under Ortberg. He introduced it to the employees in April. Alaska Airlines CEO Ben Minicucci said Ortberg was a great example of a leader who chose to be physically present in the factory, where he lived. Minicucci stated, "They are walking on the floor and they feel what is going on." "That's a different experience than in the past." TRUMP TURBULENCE Ortberg had to deal with one of the most difficult challenges facing any CEO in the United States this year: managing Donald Trump. In February, the U.S. President publicly criticized Boeing for delays and cost overruns in the Air Force One Replacement Program. Trump and Ortberg celebrated a record-breaking widebody order with Qatar Airways in May, despite the tension. Ortberg, along with other aerospace leaders, worked behind the scenes to manage Trump's volatile policies on trade, which has largely spared new tariffs for the industry. Jeff Shockey is Ortberg's biggest hire. He was brought in to be Boeing's top advocate. Shockey has a long history as a political operative with experience in aerospace. Boeing requires Federal Aviation Administration (FAA) support to increase production and certify the new jets. It also needs continued federal funding to develop the F-47, named for Trump as the 47th President. Richard Aboulafia, managing director of AeroDynamic Advisory, said: "It is impossible to imagine doing any of this without an experienced head at Boeing's Washington operation." Ortberg's struggles have not been easy. Last year, he struggled to bring an end to a seven-week strike by 33,000 union workers who assemble Boeing jetliners along the West Coast. The strike deepened divisions within the company. Separately, 3,200 workers from a union that builds fighter jets began a strike on Monday. The company continues losing money - $643 millions through the first half year - and Ortberg pushed back certifications for the 777-9, and the 737 MAX smallest and biggest variants - the MAX 7 & 10 - to next year. Ortberg now must prepare Boeing for a new plane launch this decade to reclaim market share lost by Airbus. Or risk being relegated as an after-runner for another decade. Ortberg played down the importance of the upcoming year when asked during a recent earnings conference. He said, "It is just one day at the time. Improve our performance, address issues we have, rebuild trust with our customers and end users of our product," he added. (Reporting from Seattle by Dan Catchpole; Editing by Joe Brock & Rod Nickel)
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HSBC adds space to Canary Wharf as a result of the HQ squeeze
HSBC signed a lease for extra space in Canary Wharf, before moving its global headquarters from East London's financial district. This was due to a lack of space in its new planned base in central City of London. Memo said that the banking giant had signed a contract for a certain number of floors in 40 Bank Street. This is not far from its 45-floor skyscraper at Canary Wharf. HSBC will take 210,000 square feet of the Bank Street Building, according to a source familiar with the matter. It was previously reported that the lender will move its London headquarters to a building about half its size, near St Paul's Cathedral. However, it had realized it would not have enough space, and had assessed other options. Bloomberg reported previously that HSBC had been in talks about leasing the space located at 40 Bank Street. HSBC’s decision will give a boost to Canary Wharf. The value of the offices has declined since the COVID-19 outbreak and several planned departures, including HSBC. In recent months, several companies have taken up space in the district, due to the shortage of high-quality space, especially in central City of London. Canary Wharf Group, the landlord, announced this week that BBVA, a Spanish bank, has signed a 250,000 sq ft lease in Canary Wharf. Fintech Zopa will also be moving its headquarters there.
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African Development Bank will lead efforts to raise $7.8 billion for new Ethiopian Airport
The African Development Bank said it will lead the charge in raising $7.8 billion to build a new Ethiopian airport. The airport, when completed in 2029 will be the largest on the continent and have a capacity of 100 million passengers per year. The African Development Bank said late Thursday that the appointment of its lead arranger was a reflection of its role as a catalyst in the advancement and development strategic infrastructure on the continent, and its demonstrated leadership in structuring complicated transactions. State-owned Ethiopian Airlines has signed an agreement to design the four-runway Airport near Bishoftu. This is located around 45 km south of Addis Ababa. Mesfin Tasew, the Chief Executive Officer of Ethiopian Airlines, said that the total cost for the airport would be $10 billion. The airline will provide 20% of funding, and the remainder from creditors. He had stated last year that Bole Addis Ababa International Airport (the current hub of Africa's largest airline) would soon be able to serve 25 million passengers annually. The bank announced that a formal signing ceremony with Prime Minister Abiy Ahmad and the head of the bank will take place on Monday in Addis Ababa. (Reporting and editing by Barbara Lewis; Additional reporting in AddisAbaba by Dawit Endeshaw; Reporting by George Obulutsa)
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Bpost's earnings for 2025 are at the upper end of its guidance following Q2's beat
Bpost, the Belgian postal operator, beat expectations for quarterly profits on Friday. The acquisition of Staci last year was a major boost. Bpost also said that it expects its operating earnings will reach the upper range of its guidance in 2025. In February, it forecast earnings before interest and tax (EBIT), which ranged between $175 million and $200 million. This was reaffirmed in June despite the two-week strike in the first quarter that affected results. Bpost's adjusted earnings per share (EBIT) rose by 1% in the second quarter to 58.3 millions euros ($68.3 million), boosted by contributions from Staci, a logistics company acquired in August 2024. In a recent statement, CEO Chris Peeters stated that Staci's contribution in growing our 3PL business (third-party logistics) in Europe "confirms the importance of this acquisition for our future." Bpost surveyed analysts who expected an average quarterly adjusted EBIT to be 47,9 million euros. During its June capital markets day, the group said that it expects EBIT to grow faster from next year. It aims for a figure above 275 millions euros in 2027. The group also hopes to surpass 5 billion euros of revenue by 2027. $1 = 0.8587 Euros (Reporting and editing by Milla Nissi-Prussak in Gdansk)
Shipping companies pull out of Hong Kong to avoid US-China risks
Some shipping companies move their operations discreetly out of Hong Kong, and remove vessels from its registry. Some shipping companies are making contingency planning to do this.
Six shipping executives have said that these low-profile actions are motivated by a fear that their vessels could be seized by Chinese authorities, or face U.S. sanction in the event of a clash between Beijing and Washington. The people said that the growing U.S. scrutiny over the importance of China’s commercial fleet to a potential military conflict, such as one over Taiwan, and Beijing's emphasis of Hong Kong's role in serving Chinese interests is causing concern in the shipping industry. Last month, the U.S. Trade Representative proposed imposing steep U.S. fees on Chinese shipping firms and other companies that operate Chinese-built ships to counter China's "targeted dominant" in shipbuilding and maritime logistic. Washington warned American companies in September about the growing risks associated with operating in Hong Kong. The U.S. has already imposed sanctions on officials who are involved in a crackdown.
Hong Kong has been the hub of shipowners for over a century, as well as brokers, financiers underwriters, and lawyers who support them. Official data shows that its maritime and port industries accounted for 4,2% of the GDP in 2022.
VesselsValue - a subsidiary company of Veson Nautical, a maritime data group - reports that the city's flag was flown on eight out of ten ships in the world.
Interviews with two dozen people familiar with Hong Kong including shipping executives and lawyers revealed a growing concern about the possibility that commercial maritime operations in Hong Kong could be caught up by forces outside their control if a U.S. - China military conflict occurs.
Many pointed out China's increased focus on national security goals, trade frictions, and Hong Kong's leader's broad powers to take control of shipping if necessary, as he is accountable to Beijing.
One executive who, like many others, was allowed to remain anonymous to discuss this sensitive subject said: "We do not want to be in the position where China is knocking on our door, requesting our ships, while the U.S. targets us from the other side."
Previously, the concerns of shipowners as well as their efforts to limit exposure to Hong Kong were not reported. In recent years the perception of risk has increased, in line with the tightening security environment in the Chinese-ruled area and the tensions between two of the largest economies in the world.
Turning Tide
To comply with safety and environment rules, commercial ships must be registered or flagged with a specific country or jurisdiction.
VesselsValue, an independent research firm, found that despite the influx of Chinese ships on Hong Kong's register, the number oceangoing vessels registered in the city dropped by more than 8% in January, from 2,580 in January 2004. Government data show a similar drop.
In 2023 and 2024 74 ships, mostly dry-bulk carriers, were re-flagged for Singapore and Marshall Islands. These vessels transport commodities like coal, iron ore, and grain. VesselsValue reports that 15 tankers and 7 container ships left Hong Kong's registry to fly these flags.
Hong Kong's ship registry has seen a dramatic decline in the last two years. Official data shows that it grew by 400% over the past 20 years.
Hong Kong's Government responded to questions by saying that it is normal for shipping companies, given the changing geopolitical, trade and economic circumstances, to review their operations. It is also normal for the numbers of ships registered to fluctuate over the short-term.
A spokesperson stated that Hong Kong will "continue to excel" as an international shipping center, highlighting a variety of incentives, such as profits tax breaks and environmental subsidies, for shipowners.
The spokesperson stated that neither the laws governing registry nor the emergency provisions empower Hong Kong's leader in commandeering ships to serve as part of a Chinese merchant navy.
When asked to comment on the concerns of industry players about how emergency powers from colonial times might be used during a conflict between the U.S. and China, the spokesperson declined. The provisions give the leader of the city "any regulation whatsoever", which includes taking control over vessels and property.
China's commerce and defence ministries did not respond to questions regarding the role of the merchant fleet in Beijing’s warfighting plan, the possible involvement of Hong Kong flagged vessels, or the concerns of commercial shipowners.
The U.S. Treasury declined to comment on potential sanctions, concerns of shipping executives, or the role played by Hong Kong-registered ships in a Chinese commercial fleet.
Lawyers and executives agree that ships can be reflagged in a variety of ways, including through the sale, chartering or redeployment on different routes.
Basil Karatzas of Karatzas Marine Advisors & Co in the U.S. said that Singapore was becoming the preferred domicile for businesses with less exposure to Chinese shipping or cargo trade. It offered many efficiencies including its legal system but also a lower risk than Hong Kong.
Singapore's Maritime and Port Authority stated that decisions regarding domiciles and flags were based on business considerations. The Maritime and Port Authority of Singapore said it had not noticed any "significant changes" in the number Hong Kong shipping companies moving operations or reflagging vessels to Singapore.
MERCHANT FLEEET
Executives and lawyers agree that Hong Kong's registry for shipping is highly regarded by the industry because of its high safety and regulatory standards. This allows its ships to easily pass through foreign ports. Many of China's international state-owned vessels now fly Hong Kong's banner.
According to PLA military studies and four security analysts, in a conflict these tankers and bulk carriers would be the backbone of the merchant fleet that supplies China's oil and food needs.
The U.S., on the other hand, has a very small shipbuilding industry. It also has far fewer vessels under its flag. Three analysts say that while China's growing state-owned fleet would be a target of the U.S. during a military conflict, Beijing would need other vessels in order to supply its needs, given its reliance on international shipping lanes and vast needs.
Donald Trump has been keeping a close eye on strategic maritime operations. Trump said in his January inauguration address that he would "take back" control of the Panama Canal from China. Trump did not provide specifics but his remarks focused on two Panama port operated by a Hong Kong conglomerate CK Hutchison Holdings subsidiary. The group did not respond to any questions regarding Trump's remarks, but agreed to sell the majority of the subsidiary's shares to a consortium led by BlackRock this week, giving U.S. interest control over the port. Trump said to Congress that his administration would create a shipbuilding office in the White House, and provide new tax incentives.
In a study conducted by the U.S. Congress in November 2023, it was stated that "cargo vessels typically transport 90% of military equipment required in overseas conflicts". The report noted that Chinese shipyards ordered 1,794 ocean-going large ships in 2022 compared to five in the U.S.
Merchant vessels played a crucial role in Britain's 1982 long-range operation to retake Argentina's Falkland Islands. Declassified CIA files show that UK-flagged ships operated out of Hong Kong, many of which were owned or controlled by Chinese firms, supplied communist Hanoi in the Vietnam War.
In 2013, President Xi Jinping outlined the need for a Chinese merchant fleet that would help to build China's maritime strength in a Politburo session.
In the past decade, Chinese military and government documents and studies have emphasized the dual-use value of China’s merchant ships.
According to state media, regulations enacted in 2014 required Chinese builders to build five types of commercial ships, including tankers and container ships, to be able to serve military requirements.
Since then, COSCO has seen a significant increase in its line.
Documents from COSCO show that China places political commissars, officers who make sure Communist Party goals are served, on nominally civil ships.
The U.S. banned COSCO subsidiaries in January for what they said were links with the Chinese military.
COSCO has not responded to any questions regarding its deployment of commissars, U.S. restrictions, or what role COSCO's ships -- including those with Hong Kong flags -- might play in wartime.
'REALLY DE-RISKED'
Hong Kong is still an important shipowners' base, despite geopolitical issues. Some shipowners are quietly hedging.
Taylor Maritime (London-listed) a company that was founded in Hong Kong, in 2014, has a much smaller presence in Hong Kong now after several strategic moves in the last few years.
It has been flagging its ships in Singapore and the Marshall Islands since 2021. The company has offices in London, Guernsey and Singapore.
A person with knowledge of the matter said that the firm "really reduced the risk of Hong Kong". This was due to investors' fears of a Chinese invasion in Taiwan and the Communist Party taking control of Hong Kong.
Taylor Maritime's spokesperson stated that the company initially moved its Asia-based teams from Hong Kong to Singapore to be closer to their clients.
Taylor Maritime, after acquiring Grindrod, a shipping company with an Asia office in Singapore and expanding its operations there, relocated certain functions from Hong Kong to Singapore, where it became the primary Asia hub.
Two people with knowledge of the situation said that Pacific Basin Shipping, a Hong Kong listed company, has always flagged its 110 bulk carrier fleet in Hong Kong. However, it is now preparing contingency plans for them to be registered elsewhere while it assesses possible risks.
Pacific Basin's spokesperson stated that the company constantly evaluated geopolitical risk but its fleet still flew the Hong Kong flag "which, at least for the moment, outweighs the challenges".
The spokesperson stated that "Being located in Hong Kong places us near China's 40% share of the global dry bulk export/import activity as well as close to Asia's strong industrial and economic growth regions."
Angad Banga said that shipping firms adjust contingency plans based upon risk assessments, but he has not heard of concerns regarding the commandeering vessels.
Banga said that although some organizations may be re-evaluating their operational strategies, they do not see a widespread exodus from Hong Kong or a loss of confidence. The city, he added, remained attractive to maritime commerce.
Some industry figures have described a general unease in Hong Kong, which has affected their planning.
Three lawyers have said that, until recently, contracts for the increasing number of ships constructed in China that are financed by Chinese banks stipulated that the ship must fly the Hong Kong Flag.
Lawyers said that in the past two years some companies have added a disclaimer to their contracts, stating that they are willing to consider other flags as an alternative. Could not independently verify these changes. Beijing officials have stressed that Hong Kong is important in achieving national security goals. They also referred to China's modernisation of its military and refusal to abandon the use of force against Taiwan.
Three executives and lawyers said that the sweeping security laws, which were first implemented in Hong Kong in July 2021 and then strengthened in March 2020, have increased dangers.
Lawyers said that any attempt by Hong Kong’s leader to commandeer ships in an emergency could prove difficult, since locally registered vessels often travel routes far away from Hong Kong. They said that such powers, which have been in place for a long time, now needed to be seen through the lens of national security.
One lawyer stated that some shipowners would not object to a request from the government to hand over their vessels. This could be due to patriotism, or because they might profit by a crisis.
Another veteran lawyer said that it is "better to avoid being in a situation where you could be asked".
It was not an issue a few short years ago. The national security map has been redrawn. (Reporting and editing by David Crawshaw; Additional reporting by Andrea Shalal, Idrees, and Idrees in Washington and Beijing, Shanghai, and Hong Kong;
(source: Reuters)