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US Supreme Court rejects CSX's bid to revive antitrust lawsuit against Norfolk Southern
The U.S. Supreme Court refused on Monday to hear the freight rail giant CSX’s bid to revive an antitrust suit accusing Norfolk Southern of restricting illegally access to a major East Coast terminal in Virginia. CSX lost hundreds of millions in profits. The Justices rejected an appeal from CSX against a ruling by a lower court last year that said the Jacksonville, Florida based company had sued too late and missed a four-year window for bringing claims under U.S. Antitrust Law. CSX argued that the statute of limitation should not apply to its lawsuit. CSX filed a lawsuit against Norfolk Southern in Virginia in 2018. The court accused the rival shipper, Norfolk Southern, of conspiring to charge excessive fees for services at Virginia’s Norfolk International Terminals - one of the East Coast's most important terminals. Norfolk Terminal is used by large international container ships to unload cargo on trains and trucks bound for inland destinations. Norfolk & Portsmouth Belt Line is a small railroad, majority owned by Norfolk Southern, that provides track and "switching services" at the terminal. CSX doesn't own the tracks at docks, so it has to pay for access. The suit alleged that Norfolk Southern, Norfolk & Portsmouth Belt Line and Norfolk Southern in 2009 had set a $210 track rate per railcar that is still in effect today. According to the CSX suit, Norfolk Southern's advantage allowed it to artificially raise prices for ocean carriers who rely on Norfolk terminal. CSX claims it is prohibited from entering profitable contracts with ocean carriers. CSX stated that Norfolk Southern's practice to allegedly overcharge for terminal access continued each day it was in place. Therefore, the four-year statute should not have barred the filing of a lawsuit. Richmond, Virginia's 4th U.S. In 2024, the Circuit Court of Appeals upheld a court's dismissal of CSX lawsuit. The 4th Circuit ruled that Norfolk Southern's rail charges did not "inflict any new harm causing a new injury to CSX in the limitations period." In its appeal to Supreme Court, CSX claimed that the 4th Circuit decision created an immunity shield which allows Norfolk Southern to sidestep competition at their terminal in Norfolk. Norfolk Southern, in its submission to the Supreme Court said CSX had "sat on their hands" for 9 years before filing a suit. Norfolk Southern stated that the 4th Circuit correctly determined that the date 2009 when the rate was established "was outside of the statutes of limitations and that maintaining this rate was an inaction which did not retrigger statutes of limitations on a day-to-day basis."
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Gulf issuers are planning more debt sales despite recent market turmoil.
Sources say Gulf issuers are working on bond offerings including Saudi Arabia's sovereign wealth fund worth $925 billion. They have braved the debt markets in spite of recent turmoil caused by President Donald Trump's policies regarding tariffs. Investors are struggling to determine where Trump's policies will lead. The markets have been volatile ever since Trump announced his sweeping tariffs in April, even though he has rolled back most of them. Two sources who are directly involved in the matter have confirmed that Saudi Arabia's Public Investment Fund is looking to raise $1.5 billion to $2 billion through a sukuk or Islamic bond over the next few weeks. The fund has raised more than $11 billion in this year. The kingdom is under increasing pressure to increase debt or reduce spending following a drop in crude oil prices that threatens to wipe out tens billions of dollars. Zeina Rizk is co-head fixed income at Amwal Capital Partners. She said that the Middle East's main concern was oil prices. However, both corporations and governments had very strong fundamentals. Reserves were increasing, and everything was going well. Two sources have said that Abu Dhabi Ports Company plans to raise $2 billion over the next few weeks. One source said that Masdar, a renewable energy company, aims to raise $1 billion through a green bond. This was confirmed by another person. Sources added that plans are not finalised. PIF has declined to comment. AD Ports, Masdar and PIF were not available for immediate comment. In recent years, state-owned companies in Saudi Arabia and United Arab Emirates raised debt to finance an acquisition spree abroad. This was part of government mandates that sought to create national champions and diversify the economies. The recent turmoil on the bond market means that issuers will face higher borrowing rates. Rizk stated that she is not worried as long as the markets remain relatively stable, like they did last week. She said that the launch by Mashreq of a $500-million sukuk in Dubai last week is a good indication. Sources said that Saudi Arabia's Banque Saudi Fransi also plans to raise money this week through a bond above the benchmark. Saudi National Bank raised $750m through a dollar bond issued in Taiwan. BSF did not respond to a request for comment immediately. Saudi Arabian banks have played a key role in the financing of mega-projects like NEOM, Qiddiya, and Red Sea Projects, which collectively required hundreds of billions in funding. Fitch predicts a credit growth in the Saudi banking sector of 12-14% by 2025. The lending growth will continue to exceed deposits, further increasing the deposit gap that was predicted at 0.3 trillion Riyals ($79.96billion) in 2024. $1 = 3.7517 Riyals (Reporting and editing by Federico Maccioni, Hadeel al Sayegh)
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Dollar weakness and resilient Chinese demand are driving iron ore prices higher.
Iron ore prices saw a slight decline on Monday. Prices were supported by a near-term demand for ore and weakened U.S. dollars, which outweighed ongoing trade tensions between the U.S. The May contract for the most traded iron ore on China's Dalian Commodity Exchange closed at 715.5 Yuan ($98.15), a 1.27 percent increase. As of 0707 GMT, the benchmark May iron ore traded on Singapore Exchange was 1.69 % higher at $99,15 per ton. In a recent note, Hexun Futures said that the hot metal demand was strong and production at an all-time high. Iron ore demand is usually gauged by the hot metal production. Mysteel, a consultancy, said in a report that "production among China's independent EAF steelmakers has now increased for 10 straight weeks." A weaker dollar also helped to support prices. The U.S. currency fell to a 3-year low on Monday, 98.246 versus a basket. Dollar-denominated goods are cheaper for holders of currencies other than the dollar. Last week, U.S. president Donald Trump expressed optimism that both countries could come to an agreement. China warned against a wider economic deal with the U.S. on its cost, increasing its rhetoric amid a trade war that has spiraled out of control between the two world's largest economies. Coking coal and coke, which are used to make steel, have both gained in value, rising by 1.27% and 1.25 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange were flat. Hot-rolled coils were up by 0.69% and rebar was up around 0.8%, while stainless steel traded flat. $1 = 7.2900 Chinese Yuan (Reporting and editing by Janane Venkatraman, Mrigank Dhaniwala).
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Malaysia Airlines to buy new Boeing jets if China rejects them
Malaysia Airlines parent company, Malaysia Aviation Group is in talks with Boeing to acquire new jets if Chinese Airlines stop taking delivery, according to its managing director, who spoke at a Malaysian news outlet Bernama. Boeing is returning some 737 MAX aircraft to the U.S. after placing them in China before delivering to Chinese customers. It is unclear who made the decision, as neither Boeing nor China have commented on the reason for the return of the jets. Malaysia Airlines didn't immediately respond to our request for a comment. If Boeing delivery slots become available as a result of the tariff war between the United States and China, MAG views this as a window to secure earlier-than-expected deliveries, Bernama reported MAG's Izham Ismail as saying. Ismail, speaking to Bernama, said that MAG was in talks with Boeing regarding the possibility of taking over these slots. Boeing's production has been slowed by increased regulatory scrutiny, a strike and the post-pandemic supply bottlenecks. MAG, which is owned by Malaysian sovereign fund Khazanah Nasional has been steadily expanding and renewing their fleet. They aim to operate a fleet of 55 narrow-body 737 MAX aircraft from the new generation by 2030. It announced last month that it would purchase 18 737 MAX 8 aircraft and 12 737 MAX 10 jets, with the option to buy 30 more. The company also has an agreement to lease 25 737 MAX aircraft from Air Lease Corp. between 2023-2026. Ismail stated that any possible arrangement to take additional planes out of vacated delivery slot would not be included in the Air Lease Corp deal and MAG would have to go to capital markets to raise additional funding. (Writing by Lisa Barrington. (Editing by Gerry Doyle).
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Dollar weakness and resilient Chinese demand boost iron ore prices
Iron ore prices recovered on Monday as a result of a weaker dollar and near-term demand for ore. However, ongoing trade tensions with China, the top consumer, limited gains. As of 0244 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was trading 0.78% higher. It was 712 yuan (US$97.70) per metric ton. The benchmark iron ore for May on the Singapore Exchange rose 1.23% to $98.7 per ton. In a recent note, Hexun Futures said that the hot metal demand was strong and production at an all-time high. Iron ore demand is usually gauged by the hot metal production. Mysteel, a consultancy, said in a report that "production among China's independent EAF steelmakers has increased for 10 straight weeks." A weaker dollar also helped to support prices. The U.S. currency fell to a 3-year low on Monday, 98.623, against a basket. Dollar-denominated goods are cheaper for holders of currencies other than the dollar. Last week, U.S. president Donald Trump expressed optimism that both countries could come to an agreement. Xie feng, China's ambassador in the United States, urged Washington to find common ground with Beijing on Saturday, warning that China was ready to retaliate if the trade war escalated. Galaxy Futures said that while there are signs that tariff policies are being eased, concerns about tariffs are still affecting the outlook of Chinese steel exports on a medium-term basis. Coking coal and coke, which are used to make steel, have both gained in value, up by 0.95% each and 0.42% respectively. The benchmarks for steel on the Shanghai Futures Exchange were flat. Hot-rolled coil and rebar were up around 0.5%, whereas wire rod was down about 0.27% and stainless steel fell by 0.47%.
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China's ENN and Zhenhua Oil sign LNG deals with ADNOC
China's privately-controlled ENN Natural Gas, and the state-run Zhenhua Oil each signed a contract to purchase liquefied gas from Abu Dhabi National Oil Company. ENN Natural Gas announced on its WeChat official account on Saturday the contract covers annual supplies of around one million metric tonnes for 15 years. This is ADNOC’s largest LNG deal with a Chinese customer. ENN stated that the deal was a major step towards stabilizing and diversifying energy supplies. Shanghai-listed ENN Natural Gas is offering to buy the remaining shares of Hong Kong-listed ENN Energy for approximately $7.65 billion. A Chinese source familiar with the deal said that Zhenhua Oil, a state-owned oil and gas trading company, had also agreed to a five-year contract with ADNOC, starting in 2026, for up 12 cargoes per year. The source declined to give his name as he was not authorized to speak in the media. Zhenhua Oil is building its LNG terminal in Rudong. It will be operational in the first quarter 2026. ADNOC CEO Sultan Al Jaber was present at the opening ceremony of the new Beijing office, according to a source in the industry who was there, as well as a report from Dubai's China-Arab TV. The report did not give any further details but said that ADNOC signed three LNG deals with Chinese partners on Al Jaber's trip. Zhenhua Oil & ADNOC did not respond to requests for comment on the weekend.
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DHL suspends global shipments above $800 for US consumers
DHL Express is a division within Germany's Deutsche Post. It has announced that it will suspend all global business-to consumer shipments of over $800 in value to individual customers in the United States as of April 21. This is due to changes made by U.S. Customs regulations which have increased clearance time. The notice posted on the website of the company was not dated but metadata indicated that it was created on Saturday. DHL attributed the stoppage to new U.S. Customs rules that require formal entry processing for all shipments over $800. Prior to April 5, the minimum was $2,500. DHL stated that business-to-business shipping would not be suspended, but may face delays. Changes to DHL's policy do not affect shipments under $800, whether they are sent by businesses or consumers. In a statement, the company stated that this is a temporary move. DHL responded to questions last week by saying that it will continue to process shipments to the United States from Hong Kong "in accordance to the applicable customs regulations and rules" and that they would "work closely with our customers in order to help them adapt to the planned changes for May 2. This came after Hongkong Post announced last week that it had suspended its mail service for goods shipped by sea to the United States. It accused the U.S. Reporting by Amy Lv in Beijing and Lewis Jackson; editing by Saad sayeed
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Boeing jet from China returns to the US, a victim in Trump's tariff war
The Boeing jet, intended for a Chinese carrier, was returned to the U.S. production center of the planemaker on Sunday. It is a victim the bilateral tariffs imposed by President Donald Trump as part of his global trade offensive. A witness said that the 737 MAX was intended for China's Xiamen Airlines and landed on Boeing Field in Seattle at 6:11 p.m. (0111 GMT). The Xiamen livery was on the aircraft. The jet was among several 737 MAX aircraft waiting for completion at Boeing's Zhoushan center before being delivered to a Chinese airline. This month, Trump raised the baseline tariffs for Chinese imports from 125% to 145%. China has responded by imposing a 125% duty on U.S. products. The tariffs could cripple a Chinese airline that takes delivery of a Boeing jet, as a new 737 MAX is valued at around $55million, according to IBA Aviation Consultancy. Boeing didn't immediately respond to a request for comment. Xiamen has not responded to a request for comment. Boeing's top-selling 737 MAX is back, the latest disruption in new aircraft deliveries caused by the breakdown of decades-old duty free status for the aerospace industry. Boeing is recovering from a five-year-old import ban on the 737 MAX and previous trade tensions. Analysts say that confusion over tariff changes could cause many aircraft deliveries to be delayed. Some airline CEOs have said they will defer plane delivery rather than pay duty. (Reporting from Dan Catchpole in Seattle, Lisa Barrington in Seoul and William Mallard and Joe Brock)
Hydro & wind double act assistance protect Austria from Russian gas loss: Maguire
Austrian power generators are well placed to stand up to the loss of pipeline gas supplies from Russia thanks to tape-record wind power output together with the greatest hydro generation overall in over a decade.
An agreement dispute in between Russian energy giant Gazprom and Austrian gas importer OMV led to Gazprom cutting off 50 years of gas streams to OMV earlier this month.
However energies in Austria are in a strong position to make do with just minimal gas supplies over the next several months, thanks to the continuous reconfiguring of the Austrian power system far from fossil fuels.
If Austria handles to shake off its loss of gas materials right before winter - when gas use is normally highest - it could be a fresh blow to Russian exporters who are currently reeling from greatly lower sales to northern European markets.
An effective Austrian pivot far from gas might likewise act as a template for neighbouring nations, which might probably also cut their cumulative gas usage and balance out power losses with increased imports through their currently interconnected grids.
SIGNIFICANT HYDRO
Austria's network of more than 3,000 hydroelectric power plants is one the biggest in Europe, and forms the foundation of Austria's power system by providing more than two-thirds of the country's electrical power.
Hydro electricity output over the first 10 months of 2024 is up 17% from the exact same months in 2023 and the greatest in at least a decade, according to energy think tank Coal.
High rainfall in late 2023 and early 2024 helped raise Austria's tank levels to multi-year highs from the start of the year.
Heavy rains in September, which triggered localized flooding, then charged the country's pumped storage system ahead of winter.
Electrical energy production from hydro dams was 4.15 terawatt hours (TWh) in October, according to Coal, up 65% from the same month in 2023.
High hydro storage levels combined with continuing strong run-of-river hydro production indicates power firms will be able to deploy high levels of hydro electrical power production in November also.
And as winter season is the peak period of Austrian electricity and power use due to greater heating demand, these topped-up hydro resources will permit Austrian power companies to cut down on the usage of natural gas over the near to medium term.
That will eat into total gas use by the country, as gas-fired generation usually peaks throughout winter season when power companies use gas-fired generation to plug any hydro power shortages throughout the coldest months of the year.
WIND POWER
Higher wind power generation is likewise consuming into gas need in Austria.
Over the first 10 months of 2024, wind electricity output in Austria was 7.7 TWh, which was 18% more than over the very same period in 2023.
That overall was likewise 2.5 times greater than gas-fired electrical energy output over the very same period, sealing wind farms as the 2nd largest source of Austrian electricity behind hydro dams.
The timing of Austrian wind power production peaks is likewise working versus gas usage capacity in the nation, as wind speeds in central and southern Europe tend to peak throughout the winter when gas consumption has actually traditionally been highest.
If wind speeds follow that seasonal trend once again in 2024-25, wind generation need to stay higher than gas generation throughout the coming winter season, which would damage total gas usage in Austria at an important time for the nation.
In all, if Austria can effectively shake off the loss of gas streams right before winter it would be a bitter blow to Russian gas exporters, as it would demonstrate a further deteriorating in gas reliance at the heart of Central Europe.
The mix of high hydro and wind production could likewise act as a design template for surrounding nations, who remain in the midst of charting their own energy shift roadmaps and are also eager to cut dependence on energy imports.
Neighbouring countries Czech Republic, Hungary, Switzerland, Italy, Slovenia and Slovakia all have comprehensive interconnected grids with Austria, therefore could feasibly also make cuts to their collective gas intake and balance out any power losses with increased local imports.
The opinions expressed here are those of the author, a market analyst .
(source: Reuters)