Latest News
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Bloomberg News reports that Verizon wants to raise $10 billion through bond sales to fund the Frontier deal.
Bloomberg News reported Monday that Verizon Communications was looking to raise $10 billion on the corporate bond markets to fund the $20 billion Frontier deal. A person familiar with the situation confirmed this. The wireless carrier filed a five-part sale of bonds earlier that day without revealing the size. The report stated that the initial price discussion for the largest portion of the deal - a bond with a maturity of 40 years - is about 1.6 percentage point above Treasuries. Verizon didn't immediately respond to our request for a comment. Last year, the company bought Frontier for $9.6 billion. It also agreed to absorb $10 billion of Frontier's debt. The company is hoping to complete its purchase of the fiber-optic provider in early 2019. It received regulatory approval for its agreement to terminate its diversity program back in May. Meta Platforms announced a bond sale worth up to $30 billion last month. This news comes as companies rush to fund expensive artificial intelligence expansion plans. Oracle, a cloud infrastructure and software company, is also looking to raise 15 billion dollars in bonds.
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BBC News received a legal threat by Trump regarding a speech edited
BBC News reported on Monday that the broadcaster received a legal threat from U.S. president Donald Trump over the editing of a documentary broadcast one week before the U.S. Presidential election. The BBC acknowledged that the Trump speech editing gave a false impression and it should have been handled with more care. The documentary broadcasted last year spliced two parts of a Trump address so that he seemed to be encouraging the Capitol Hill Riot of January 2021. Samir Shah, chairman of the publicly funded broadcaster, told BBC News in an interview that it is "considering" a response to Trump's communication. Shah responded to a question about whether Trump will sue the BBC: "I don't know yet, but I do know that he is a litigious individual, so we need to be prepared for any outcome."
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China suspends port charges on US-linked vessels for one year
China has suspended port fees for vessels linked to the United States, said its transport ministry on Monday. This comes after Washington announced an equivalent pause in punitive measures against China's shipbuilding and shipping sectors. The reciprocated pauses are in line with the agreements made by U.S. president Donald Trump and Chinese president Xi Jinping at a recent summit in South Korea. According to a statement from the Transport Ministry, the suspension began at 13:01 local (0501 GMT). Beijing has welcomed the announcement by the U.S. Office of Trade Representative on November 9 that it will pause all punitive measures against China resulting in its "Section 301", unfair trade practices investigation, for a period of one year starting Monday. In a separate announcement released on Monday, China's Commerce Ministry said that the country was willing to consult and communicate with the U.S. about relevant issues based on mutual respect and equal consultation. USTR said that the United States would also negotiate with China about related issues. However, details on how these negotiations would proceed and what their objectives would be were not disclosed. The Chinese Commerce Ministry called the U.S. action "an important step" to implement a consensus reached in an earlier round of talks. China said it "hopes that the U.S. continues to work with China to stabilise bilateral relations in the same way". On Monday, the commerce ministry suspended sanctions for one year against five subsidiaries of South Korean shipbuilder Hanwha Ocean Co Ltd that are linked to the United States.
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As the shutdown continues, airlines cancel 1,500 US flights every Monday
The number of flights canceled by airlines in the United States surpassed 1,500 on Monday. This is the fourth day that cancellations have exceeded 1,000, as flight reductions and staffing shortages continue to cause havoc for aviation. FlightAware is a website that tracks flights. As of 8:30 a.m. ET (1330 GMT), more than 1,550 flights had been canceled and 1,400 delayed Monday. More than 1,550 flights were cancelled and 1,400 flights delayed on Monday, after 2,950 flight cancellations and nearly 10,800 delays Sunday. Chicago's November snowstorm also caused disruptions to air travel. Late Sunday, the Federal Aviation Administration announced that it would suspend general aviation traffic in 12 airports due to staffing problems at air traffic control. These include Chicago O'Hare Airport and Reagan Washington National. The record-breaking shutdown has resulted in a shortage of air traffic control staff. On Sunday evening, the U.S. Senate voted in favor of a bill that would end the shutdown. A safety concern with air traffic control has led the FAA to order airlines to reduce 4% of their daily flights at 40 major airports starting Friday. The FAA has mandated that flight reductions reach 6% by Tuesday, and then 10% by November 14th. When will the FAA end the flight reductions required by the government? This is a big question for the airlines. Sean Duffy, Transportation Secretary, has stated that he wants to first see improvements in air traffic control personnel and safety data. (Reporting and editing by David Shepardson)
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BBC Chairman apologises to Trump for his 'error of judgement'
Samir Shah, the BBC chairperson, apologized on Monday for making an "error in judgment" when editing a speech given by U.S. president Donald Trump to be included in a Panorama documentary. This comes after the resignations from BBC's head and director of news. Shah stated that the BBC had acknowledged the Trump edit was misleading and it should have been treated more carefully. The issue was reviewed internally by the BBC earlier this year. However, he said that the broadcaster had not taken any formal action. Shah wrote that it was "clear" the BBC had to champion impartiality. He also assured British legislators that the broadcaster was committed to restoring the public's trust and to making sure its journalism met the highest standards. After further consideration, he stated that the BBC had accepted the fact that the Trump edit "gives the impression of an immediate call for violence". In the letter, he stated that "the BBC would like apologize for this error of judgement." The Panorama programme broadcast one week before the U.S. Presidential election spliced two separate excerpts of Trump's speech, giving the impression that Trump was inciting a Capitol Hill riot on January 20, 2021. This error was included in a report written by a former standards advisor. The report also mentioned BBC failures regarding its coverage of transgender issues, the Israel-Hamas conflict, and other topics. The broadcaster has been criticized for its bias The resignation On Sunday, the Director General of News Deborah Turness and its Director general Tim Davie were both in attendance. Shah acknowledged the criticisms of the Trump edit but he reacted to the suggestion that the BBC was trying to "bury" the allegations or had failed to address any issues. He said that the company had corrected mistakes, changed editorial guidelines, made changes to leadership and taken disciplinary actions. (Reporting and editing by Paul Sandle, Sam Tabahriti)
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Grab, a Singaporean company, invests $60 million in Vay's remote driving business
Grab Holdings is investing $60 million into the Singaporean company Vay Technology. Shares of this firm rose more than 6% on Monday in premarket trading. The company wants to use its ride-hailing service to tap into the autonomous vehicles that are seen as a disruptive force and as a future form of mobility. Anthony Tan, Grab's CEO, said that the future of mobility for Southeast Asia would be a hybrid system that relied on our driver-partners as well as autonomous vehicles and services of remote driving. Grab has said that if Vay meets certain milestones it will invest an additional $350 million within the first 12 months. These milestones include consumer revenues, U.S. city coverage, technology and safety standards and regulatory approvals to operate in additional U.S. Cities. Vay uses "teledrivers", who steer the car to a customer. Then, that person can self-drive. In January of last year, the company launched its first commercial service at Las Vegas. (Reporting and editing by Anil D’Silva in Bengaluru, Zaheer Kachwala)
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Citrus exports to South Africa reach record levels, but farmers worry about US tariffs
Citrus exports in South Africa soared by 22% this year to record levels, due to higher demand, favorable weather, and the introduction of new trees, according to a growers' association. Citrus Growers Association of Southern Africa added that the record-breaking season had been marked by demand for juicing lemons and oranges on overseas markets. In the October-ending season, Spain was the world's second largest citrus exporter. It shipped 203.4 millions 15 kilogramme cartons compared to last year's 165 million. Europe accounts for 36% of South Africa's total citrus exports. The Middle East is second at 19%, and Asia comes in at 15%. North America, Britain and Russia took 9% each of the total shipments by 2024. The CGA didn't give a breakdown of 2025. The report said that a premature end of northern hemisphere citrus supply drove demand, opening the supply window to South African citrus in early 2014. Improving logistics efficiency at ports had also increased exports. Farmers are worried about 2026, even though a U.S. 30% tariff on South African imports had only a small impact because it was implemented at the end of export season. "We are still very concerned about the impact of a 30% tariff on the upcoming 2026 season," stated CGA CEO Boitshoko ntshabele. He added: "That's why a mutually-beneficial trade deal between South Africa and the United States must be finalised immediately." South Africa exports between 5 and 6% of its citrus fruit to the U.S. earning over $100 million per year. The CGA warned that Washington's tariffs could threaten up to 35,000 jobs in the citrus-growing regions of the Northern and Western Cape Provinces which export exclusively into the U.S.
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As Mideast metals flow in, the share of Russian and Indian aluminium on LME stock drops.
In October, the share of Russian and Indian aluminum in London Metal Exchange warehouses fell as nearly 50,000 tons from Australia, Indonesia and the Middle East entered the system. LME data released on Monday showed that the percentage of aluminium stock of Russian origin available in LME warehouses fell to 51% from 59% in September. The share of Indian origin also decreased by one percentage point, to 40%. LME has prohibited metal produced in Russia after April 13, 2024 from its warehouse system. This is to comply with U.S. & British sanctions over Russia's invasion of Ukraine 2022. Metal produced before April 13, 2024 can still be traded but many traders avoid it. Aluminium stocks that are available or on warrant The number of metric tons of Russian origin rose to 256.025 at the end last month, up from 244.025 in September. A LME warrant is an ownership document. The LME, which is the oldest and largest industrial metals market in the world, reported that India's aluminium stocks also increased to 202.350 tons. The influx of aluminium from Australia and Bahrain, Indonesia, Oman, and Qatar, totaling 47,725 tonnes, diluted the share of Russian and Indian material. The share of Russian-origin copper stocks available Last month, the LME stock remained at 14%. The amount dropped to 16,700 tonnes from 18,125 tonnes. Data showed that the share of copper made in China remained at 82% despite the fact that the total amount dropped to 100,400 tonnes from 109 350 tons. At the end of October 2017, 70% of LME nickel stocks were made in China, up from 68% one month earlier. (Reporting and editing by Hugh Lawson; Tom Daly)
Exclusive: Canada's Trans Mountain Pipeline lowers its forecasts of the amount of oil that it will ship
Documents filed by Trans Mountain Oil Pipeline's operator reveal that the company has revised its forecasts of how much oil will flow through the system in the next three-year period, due to the fact that the pipeline is being used less than anticipated.
Trans Mountain's lower forecasts filed with Canada Energy Regulator by Trans Mountain last month were not previously reported. Analysts said that the lower forecasts show oil companies' unwillingness to pay the higher tolls Trans Mountain, owned by the government, has charged customers to transport oil via the newly expanded pipeline.
The pipeline is not using 20% of its capacity, reserved for spot shipments, because the shipping costs are much higher than those on the Enbridge Mainline, North America's largest crude pipeline, which transports oil from Western Canada to Eastern Canada and U.S. Midwest markets.
These lower estimates raise doubts about the Trans Mountain Pipeline's ability generate revenue and attract private sector buyers. Ottawa has stated that it will eventually sell the pipeline.
The lower expected usage is also a sign of the difficulty in diversifying Canadian oil imports from the U.S. which purchases 90% of Canadian crude. Trans Mountain is Canada’s only east-west operating pipeline, and its only outlet for Asia and markets outside the U.S. Analysts and Trans Mountain themselves have stated that business could quickly improve if U.S. president Donald Trump slaps a tariff on Canadian oil.
In May 2024, the expanded pipeline of 890,000 barrels per day (bpd), which runs from Alberta up to Canada's Pacific Coast coast, will begin service. Trans Mountain predicted that the pipeline would be used 96% of the time in 2025, which is its first year of operation, and this was as recent as November.
The latest documents don't show the pickup the pipeline operator anticipated. Trans Mountain shipped only 18,500 barrels per day (bpd) of spot cargoes in its first eight-month period, as opposed to the forecast 30,600. Total utilization for 2024 was 77%, far below the forecasted 83%.
According to the new forecasts, pipelines will be 84% full by this year, 88% in 2026, and 92% in 2027. It is now expected that the pipeline will not reach 96% utilization before 2028.
Trans Mountain's spokesperson told an email sent to Tuesday that spot shipments are dependent on factors such as Canadian crude production, differentials in crude oil prices at global hub markets, and rates for marine freight.
Analysts pointed to massive budget overruns in construction and the fact that Trans Mountain raised its tolls for customers last spring. The total construction cost was C$34 billion. This is nearly five times the 2017 estimate.
Trans Mountain will bear approximately 70% of the cost overruns, but the remaining third - more than $9 billion - is considered to be "uncapped costs", which increases tolls according to a formula that was agreed upon by shippers and approved more than 10 years ago by the Canada Energy Regulator.
Trans Mountain estimated that contracted shippers would pay more than twice as much in 2017. Spot shippers are charged even higher toll rates.
Canadian Natural Resources Ltd. and Cenovus Energy, two of the largest contracted shippers, have resisted. This year, a regulatory hearing will be held to determine if the toll increases are fair.
'PROBLEM with Pipelines'
Trans Mountain's main competitor, Enbridge Mainline, which transports crude oil to the U.S. Midwest, and eastern Canada offers 100% spot-capacity. The tolls on this line are about half of Trans Mountain's.
In an email sent on Tuesday, Enbridge's spokesperson stated that the demand for space along the Mainline from shippers has been greater than the supply "for the majority of months" since Trans Mountain opened.
Rory Johnston is an energy analyst who founded the Commodity Context Newsletter. He said that Trans Mountain's revised estimates show that shipping via the pipeline has become "too costly" for certain oil producers.
Johnston stated that "this is the fundamental issue with pipelines and why it is so hard to get private actors into this space any more."
Richard Masson is a former CEO of Alberta Petroleum Marketing Commission and executive fellow at University of Calgary School of Public Policy.
Uncertainty remained about whether oil would be included as part of President Donald Trump’s announcements on tariffs, expected to take place Wednesday.
Masson stated that Trans Mountain volumes could change at a moment's notice if conditions in the U.S. change.
Trans Mountain has also reduced its revenue forecasts for the next three year as a result. Trans Mountain's revenue forecasts for 2025 have been reduced from an earlier estimate of $3.0 Billion to $2.7 Billion, $2.9 Billion from an estimate of $3.1Billion for 2026 and $3.0Billion for 2027. (Reporting and editing by Caroline Stauffer, David Gregorio, and Amanda Stephenson)
(source: Reuters)