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Australian pension fund Aware Super looks at US deals unfazed, despite political turmoil
A major Australian pension fund, Aware Super, has said that it will continue to invest in U.S. real estate, as they are confident of the long-term economic fundamentals, and that domestic consumption levels, won't be affected by current political volatility. One of Australia's largest pension funds (A$190 billion, or 125 billion dollars) announced this week it will be embarking on an $1.3 billion venture to purchase a U.S. Industrial Property Fund that owns three Los Angeles logistics sites. Superannuation funds, Australia's compulsory retirement saving scheme worth A$4.1 trillion (US$2.7 trillion), are turning more and more to international investments for higher returns. Aware Super’s head of property Alek Misev stated that the U.S. is attractive because global interest rates are likely to continue falling, as well as the fact that technology advancements and domestic consumption rates remain strong. According to Aware Super, the U.S., Canada, and Australia account for 13% of the global property assets. The UK, continental Europe, and Australia make up 65%. "You must have a longer-term view and be convinced that the volatility of short-term will eventually even out over time. It's the same in Europe and Asia-Pacific. In an interview on Thursday, Misev said that you need to focus on the basics. Congress has failed to pass funding legislation for the new fiscal years. The deadlock is the result of a disagreement over federal spending priorities and healthcare policy. Misev stated that Aware will focus on property assets located close to population centers, which could attract tenants of high quality. He said, "Demand exists. There is not a lot of supply. Interest rates will probably go down in the future." You would love to see a positive trend in the property market. We think that the pricing in the U.S., Europe, and Australia is at the lowest level. We are now more active because of this. Aware stated that Amazon and Maersk are tenants at the Goodman sites. Anjana Mooran, senior portfolio manager at Aware Super, noted that the fund had to take into account the April announcement by U.S. president Donald Trump of tariffs on all trading partners. Moran explained that "there were announcements about tariffs, and when we thought about logistics assets and possible exposure to trade risk that gave us pause. We needed to do more to get comfortable, and we were able do that." The fund's portfolio is dominated by industrial properties, which account for 32% of the total. Residential properties make up 30%, and office buildings represent 17%. (1 Australian dollar = 1.5117 dollars) (Reporting and editing by Edwina G. Gibbs; Scott Murdoch)
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New York Times Business News - October 2,
Here are the top business stories from the New York Times for October 2. These stories have not been verified and we cannot vouch for the accuracy of these reports. Snapchat, a social media platform, announced that it would start charging its users to store photos and videos in the Memories section of its app once they have exceeded five gigabytes. The Trump administration announced Wednesday that they would not be releasing the $18 billion federal funds awarded to New York City in previous years for two of its largest infrastructure projects, the Hudson Tunnel as well as the Second Avenue Subway. According to a memo issued by the federal government on Wednesday, President Donald Trump’s administration asked U.S. college to sign an agreement on sweeping terms. These included foreign enrolment, diversity and ideological values for students and staff. The Port Authority of New York & New Jersey reported that two regional flights operated on Wednesday by Endeavor Air a Delta Air Lines subsidiary, collided and injured one passenger. (Compiled by Bengaluru Newsroom)
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Fuel oil demand exceeds predictions due to Red Sea disruptions, shadow fleet expansion and increased fuel consumption
Fuel oil for ships and power plants has unexpectedly high demand. Efforts to reduce its use are more than offset by the expansion of a shadow fleet of oil tanks serving Russia and other countries, as well as longer shipping routes, since vessels avoid Red Sea. Many shippers, instead of switching to cleaner burning alternatives like marine gasoil or low-sulphur oil, have installed exhaust-gas cleaning devices called scrubbers in order to continue using high sulphur oil. Western sanctions and attacks against shipping in the Red Sea has further fueled this unexpected demand. Royston Huan is an analyst with Energy Aspects. He said that the fuel oil market has shown remarkable resilience. Demand outperformed expectations because of several factors such as the Middle East's still-firm demand for power generation and Red Sea shipping disruptions due to Houthi attacks. According to the International Energy Agency’s annual report for June, while global demand for jet fuel and diesel has fallen since pre-pandemic 2019 levels, gasoline consumption is only up 1.9%. Fuel oil demand, however, will increase by 4.8% by 2025 to an average of 6.5 million barrels a day (bpd). Demand for fuel oil exceeds expectations The IEA predicted that fuel oil consumption would only grow 1.6% from 2019 to 2025, which is the slowest rate among all major refined fuels. IEA analyst CiaranHealy said that the fuel oil used in power generation in recent years has outperformed expectations of the agency, largely because the summers have been hotter in the Middle East. According to Kpler, the shipping data firm, Saudi Arabian and Egyptian fuel oil imports increased by 33% in 2024 compared to 2023 and have remained 31% higher so far in 2025 compared to 2023. Saudi Arabia has also been a contributor to the sanctions against Russia, importing Russian fuel oil at a discount in order to export more crude. SHADOW FLEET, RED SEA DIVERSIONS As the conflict in the Red Sea persists, more ships are now traveling around the Cape of Good Hope rather than the Suez Canal. This is increasing fuel oil demand. Since 2023, vessels have avoided the area due to attacks from the Houthis of Yemen, which are Iran-aligned and aim to disrupt global shipping as a protest against the Gaza war. According to the consultancy FGE, these diversions have increased fuel demand by approximately 100,000 bpd. This is about 2% of the global bunker requirement. The IEA, however, believes disruption to shipping in the Red Sea has given a smaller-than-anticipated boost to bunkering volumes, Healy said. Valerie Panopio is an analyst with Rystad Energy. She said that Western sanctions against Iran and Russia are also fueling the growth of a "shadow fleet" of vessels, likely using high-sulphur oil (HSFO). These vessels are usually owned by opaque parties and lack top-tier Western safety certification or insurance. According to industry sources, such as Lloyd's List Intelligence, and shipbroker Gibson's estimates, the shadow fleet consists of between 1,200-1,600 tankers. This represents around a fifth (or more) of the global fleet. Based on bunker data for 2023 from the International Maritime Organization, this would mean that shadow fleet tankers consumed more than 106,000 bpd or around 2% of global consumption. Eugene Lindell of FGE said that many of these vessels are rust buckets, some older than 15 years. They also travel long distances, increasing fuel consumption. SCRUBBER REGULATORY AND ADOPTION CHALLENGES The IMO 2020 regulations lowered sulphur limit for marine fuels, from 3.5% to 0,5%. This initially dampened demand for HSFO. The widespread adoption of scrubbers - onboard systems which allow ships to burn HSFO without causing environmental damage - has led to a rebound in consumption. According to DNV, the maritime consultancy, the number of scrubbers installed on ships will reach 6,523 in 2024. This is up from 4,348 at the end 2020. Despite IEA forecasts that fuel oil demand will decline after 2026 and average 6.1 million bpd in 2030, opposition to IMO rules could sustain demand. Energy Aspects reported that the Trump administration in the United States has resisted IMO regulations on carbon pricing and tighter emission rules. This could delay their implementation. Kenneth Tveter, a shipbroker at Clarksons, said that fuel oil demand would be stable until the end of this decade. Enes Tunagur is the reporter, and Alex Lawler, Dmitry Zhdannikov, and Louise Heavens are responsible for editing.
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China rail trips record high on the first day of National Holiday
China's National Railway recorded 23,13 million trips during the first day the eight-day National Day Holiday on Wednesday. This is up almost 8% over a year ago and a record for a single day, according to state media CCTV. CCTV reported that more than 19 million trips would be made Thursday on the rail network. According to CCTV, the Yangtze River Delta Railway was expected to handle 4 million passengers. This is a 10% increase over last year. After the official end of the holiday on October 8, the Ministry of Culture and Tourism will release total travel data. On October 1, 2024, 21,45 million trips on the national railway network were made. This was a record at the time. In 2019, this number was 17.13 millions. The National Day holiday has been increased from one week to 8 days this year, coinciding with the tradition of the Mid-Autumn Festival. Trip.com Group forecasted before the holiday season that 2025 would be the busiest period in recent history for travel. The Chinese authorities hope that the holiday season can boost domestic spending in spite of a sluggish economy. Smaller, less-known cities are becoming popular holiday destinations for China's budget-conscious tourists. Deng Xin (51 years old) from Beijing said, "I am taking my family to a small village in Chizhou, Anhui." There are mountains and rivers but there is no crowds and the cost is much cheaper than hotels in large cities. Users on social media platforms like Xiaohongshu share tips for saving money while travelling. One tip is to take evening trains instead of staying in hotels. (Reporting and editing by Anne Marie Roantree, Jacqueline Wong and Jessie Pang.
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US Energy Department cancels funding of $7.6 billion for projects
The U.S. Department of Energy announced on Wednesday that it would cancel $7.56 Billion in financing for hundreds of projects, which it claimed wouldn't provide enough returns to the taxpayer. The announcement by the department came after White House Budget Director Russell Vought announced in a post to X that administration would cut nearly $8 billion of climate-related funding over 16 months. Democratic-led States California and New York are included. The freeze was part of an overall $26 billion funding cut that President Donald Trump announced on Wednesday. Follow through on a Threat Use the shutdown of the federal government to advance Democratic goals In a late-Wednesday statement, the DOE announced that it would cancel financial awards for 223 projects. The DOE did not name the projects but stated that the grants were issued by six agencies responsible for clean energy and efficiency, grid deployments, advanced research, manufacturing, and fossil fuels. In a press release, Energy Secretary Chris Wright stated that "President Trump pledged to protect taxpayers' dollars and increase America's supply affordable, reliable and secure energy". The cancellations of today are a result of that commitment. The Energy Department will continue to review awards in order to make sure that every dollar is working for the American people. Bloomberg had reported earlier that funding was being planned for hydrogen hubs proposed in California and Pacific Northwest. California Governor Gavin Newsom (a Democrat) criticized the Administration for canceling their $1.2 billion commitment towards funding his state's hydrogen center. Newsom stated in a press release that "we'll continue to follow an all-of the-above strategy for clean energy, which powers our future and cleanses the air no matter what DC attempts to dictate." (Reporting and editing by Chris Reese, Thomas Derpinghaus and Nichola Gardner.
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Mexico's auto industry warns about complex future ahead of USMCA review
Mexico's automotive industry has warned of "complexity" in the future of the United States-Mexico-Canada Agreement. Executives cited concerns about tighter rules for origin and the scrutiny of Asian components. Heavy-vehicle makers expressed their concerns at the CIAN Automotive Conference about adapting to current rules while meeting USMCA requirements. To qualify for tariff-free entry, the agreement requires that a percentage of vehicle components originate in North America. Rogelio Garca, president of the National Association of Bus, Truck and Tractor Truck Manufacturers, (ANPACT), said that the current rule is not feasible, given the fact that components are often imported multiple times prior to final assembly. After Donald Trump announced last week that he would be imposing 25% tariffs on imports of heavy trucks, the industry is concerned. In 2026, the USMCA will be reviewed. It replaced the North American Free Trade Agreement (NAFTA) in 2020. Rogelio Garcia, the head of the Mexican Association of the Automotive Industry, called for greater coordination between industry groups in North America. He stated, "it's the Same Industry." Analysts say that Mexico will also raise import tariffs to 50% on cars from China and other Asian nations, as part of a larger overhaul of import duties aimed at protecting American jobs and addressing U.S. concern. Francisco Gonzalez, the head of the national association of auto parts INA, highlighted that smaller local suppliers - Tier-2 and Tier-3 firms - should be developed faster to boost supply chains and capabilities in software and electronic. Leaders in the industry expressed cautious optimism despite the challenges. Garza stated that "the outlook is complex but we are prepared." (Reporting and editing by Jamie Freed; Natalia Siniawski)
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Air Canada offers free alcohol to economy passengers who balk at airline charges
Air Canada will offer free wine and beer at the rear of the plane, a senior executive announced on Wednesday. North American airlines are facing passenger resistance over charges for extra luggage or legroom. Scott O'Leary said that Air Canada, based in Montreal, is the only North American legacy airline to offer free alcohol on economy class flights. He said that "food and beverage tends to have more of an impact on our customers' satisfaction than any other attribute." After an outpouring on social media of anger from passengers, legislators in Canada and the United States criticised airlines, including Air Canada last year for charging additional fees on baggage and seat assignments in some economy classes. O'Leary stated that it is cheaper to waive the charges for beer and wines than reduce baggage fees, which offset handling costs. He said that the fees for baggage are not easily waived. "That would have to impact ticket prices," he added. O'Leary believes that the free drinks will help with the so-called "sixth freedom" flights, which take U.S. travelers to Europe and Asia via the airline's native country. He said that "our ability to offer a level of differentiation that sets ourselves apart from literally every airline that we compete with on these routes was very important for us." Canada's biggest carrier, which cites labor disruptions as the reason for its revised 2025 outlook, said it expected a C$375-million hit to its operating revenue in September. (Reporting and editing by Richard Chang in Montreal, Allison Lampert)
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Zelenskiy accused Russia of deliberately launching an attack that cut Chornobyl's power
The Ukrainian president Volodymyr Zelenskiy accused Russia on Wednesday of deliberately staging an attack to cut power to the decommissioned Chornobyl Nuclear Power Station. Zelenskiy said that Moscow is also doing nothing to fix a cut-off of external electricity to the Russian Zaporizhzhia Nuclear Power Plant, which has been in place for eight days, and that it was taking advantage the "weakness" of the International Atomic Energy Agency and its Director General Rafael Grossi. Ukraine's Energy Ministry said earlier that Russian strikes had cut power at the Chornobyl Station, including the containment unit built to minimise contamination after the 1986 world's largest nuclear accident. Officials from the Energy Ministry said that strikes had also cut power to 307,000 clients in the Chernihiv area. Zelenskiy stated that more than 20 Russian drones were deployed in the attack against the town of Slavutych, which cut the power to the nearby Chornobyl Plant for three hours. He wrote in the Telegram app that "the Russians couldn't have been unaware" that a strike against Slavutych facilities would have such serious consequences for Chornobyl. He added that there were still large amounts of spent fuel at those sites. According to preliminary assessments they used over 20 drones. These were Russian-Iranian shaheds." IAEA (the U.N. nuclear watchdog) issued a press release acknowledging the plant experienced "fluctuations", but also stating that alternate lines were initially used and that power was restored later. Russia has yet to comment on the incident. The statement of Ukraine's Energy Ministry did not mention any increased radioactive risk as a result the power being cut off to the now defunct Chornobyl Plant due to Russian attacks on Slavutych. The Ministry of Energy and Natural Resources said that the power surges caused the safe confinement facility to lose power. This facility isolates the fourth power unit destroyed at the Chornobyl power station, preventing the release of radioactive material into the environment. Soviet engineers quickly built a "sarcophagus", or protective enclosure, around the fourth reactor of the Chornobyl power station after it exploded and released radioactivity across Europe in April 1986. In 2016, this was replaced with a new containment structure, while the other three reactors of the plant were slowly taken out. The plant was briefly taken over by Russian forces as part of the 2022 invasion of Ukraine. In February, a Russian drone penetrated the roof of the confinement structure. FIXING OF THE EXTERNAL POWER LINE IN ZAPORIZHZHIA Zelenskiy blamed the Russian military again for cutting off the external power line at the Zaporizhzhia Plant in southeast Ukraine last week. He said that the Russians were doing nothing to correct the situation, or to allow Ukrainian experts to restore external power to the plant. He said that Russia was "deliberately creating a risk of radiation incident, exploiting unfortunately the weak position IAEA Director General Rafael Grossi as well as dispersing world attention." Dmitry Peskov, the Kremlin's spokesperson, told reporters that Russia is doing all it can to ensure Zaporizhzhia's plant safety. He claimed that Ukrainian forces had repeatedly fired on the plant. Both sides accuse each other of putting nuclear safety at risk. Zelenskiy said on Tuesday that the situation in the Zaporizhzhia factory was "critical". Grossi, the head of IAEA, said that there was no immediate threat from the power outage as emergency diesel generators are in operation. He added that external lines need to be repaired. Reporting by Ron Popeski, Oleksandr Kozoukhar and Jamie Freed; Editing Bill Berkrot & Jamie Freed
Wall Street Journal, October 2,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy.
In a memo, the Trump administration lays out a range of terms that are meant to raise university standards and performance.
Trump Administration withholds $18 billion of infrastructure funds from some major New York City transportation projects, citing concerns over diversity, equity, and inclusion.
Excelerate Energy was awarded a contract by Iraq for the development of an integrated floating terminal to import liquefied gas.
Officials from the U.S. said that they will give Ukraine intelligence on long-range missile attacks against Russia's energy infrastructure. The Trump administration is considering sending Kyiv powerful weaponry which could be used to reach more targets in Russia.
Walmart announced on Wednesday that it will remove synthetic dyes in its U.S. Private-Label Foods, including the Great Value brand and the bettergoods brand, by the end of January 2027. This follows several other companies under pressure from the Trump Administration.
(source: Reuters)