2025-08-25 10:39

Railroads seek to use tech to cut human track inspections by 75% US unions, lawmakers say cutting human inspections would risk more accidents Unions say technology only sees about a quarter of track inspection items Railroads say plan will increase safety and efficiency LOS ANGELES, Aug 25 (Reuters) - A U.S. railroad industry plan to rely more heavily on technology instead of humans to conduct routine track safety inspections has drawn a backlash from labor groups and lawmakers who voiced worry that automated inspections will result in more accidents. The dispute reflects simmering tensions in the global transport industry over the rise of automation. Also, U.S. President Donald Trump wants to slash regulations he says are holding back economic growth. Sign up here. The Association of American Railroads (AAR) in April requested a waiver from the Federal Railroad Administration (FRA) that would allow freight railroads that use automation to slash the frequency of human-conducted track inspections by 75%. If approved, the waiver would allow operators employing a so-called "track geometry measurement system" (TGMS), which can be attached to rail cars and spot derailment risks like tracks that are warped or too far apart, to cut human inspections to twice per month from twice per week. The waiver would also provide railroads up to 72 hours to address defects, while human inspectors can immediately make repairs or choose to slow or stop trains. The association, along with manufacturing and agriculture trade groups that back the proposal, say the change would result in earlier detection and remediation of track defects. Tony Cardwell, president of the Brotherhood of Maintenance of Way Employees Division (BMWED) union that represents track inspectors and other rail workers, called AAR's analysis flawed. The technology only checks about a quarter of the items in track defect inspections, he said. Human inspectors also see foundation issues like broken rail ties or water damage earlier, allowing problems to be fixed before they get serious enough for the technology to flag them. "Track geometry is the end result of a defect, not the cause of a defect," Cardwell said. Opponents of the plan have noted that after three train passengers died following a 2021 Amtrak derailment, a government report concluded that automated track inspections do not find as many types of track hazards as human inspectors. A dozen Democratic U.S. Senators and the Democratic ranking members of the House Committee on Transportation and Infrastructure also called on FRA to deny the waiver in recent public comments on the proposal. Kansas Governor Laura Kelly, who has more than 4,000 miles of railroads in her state, said automated track inspections "should not cut human track inspection at the expense of putting public safety at risk." Republican lawmakers did not submit public comments. The AAR said the waiver would actually improve railroad safety and operational efficiency. "Layering technology on top of redundant and unnecessary, old ways of conducting inspections is not a way to make an industry competitive," said Michael Rush, AAR's senior vice president for safety and operations. AAR member railroads, including megamerger hopefuls Union Pacific (UNP.N) , opens new tab and Norfolk Southern (NSC.N) , opens new tab as well as Berkshire Hathaway-owned BNSF (BRKa.N) , opens new tab, back the request. The National Association of Manufacturers and the National Grain and Feed Association, both representing major U.S. freight rail customers, also support the proposal. The decision is now in the hands of FRA, which does not face a deadline. Train derailment rates are down over the last two decades, though there are still roughly three per day in the country, according to AAR and federal safety data. Some have been major. The village of East Palestine, Ohio is undertaking a billion-dollar environmental cleanup after a Norfolk Southern derailment in 2023. Two years earlier in 2021, an Amtrak derailment on a freight rail track in Montana killed three passengers. After the Amtrak derailment, a National Transportation Safety Board (NTSB) report spelled out some of the limitations of TGMS technology. The report said the technology can provide detailed information on specific track parameters, but does "not capture the diverse array of unique track hazards detectable to human inspectors." NTSB and FRA did not immediately comment. https://www.reuters.com/sustainability/us-lawmakers-unions-oppose-railroad-plan-automate-track-safety-inspections-2025-08-25/

2025-08-25 10:35

Qicheng to buy Zhenghe; Qirun to acquire Huaxing - sources Minimum transfer price for Zhenghe at 2.6 bln yuan, Huaxing at 3.2 bln yuan - auction documents Refineries to receive 26 mln barrels of crude import quota for rest of 2025 - sources SINGAPORE, Aug 25 (Reuters) - China's state-run Sinochem Group will sell another two bankrupt refineries in eastern Shandong province to local refiners for much less than they are valued via auctions that closed on Friday, according to seven trade sources and auction documents. The acquisitions, which come during a consolidation of the world's largest refining base, would see the new owners step up crude imports and resume operations at the troubled plants, lifting oil purchases at the world's top importer. Sign up here. The refineries, Zhenghe Group, which operates a 100,000-barrels-per-day refinery, and Huaxing Petrochemical, which has a 140,000-bpd plant, were listed for sale on last Monday, according to the Shandong Property Right Exchange Centre. Shandong Qicheng Petrochemical is expected to acquire Zhenghe while Shandong Qirun Petrochemical will take over Huaxing, the sources with knowledge of the matter said. They are all located in the city of Dongying. Contacted by Reuters, Sinochem said the company does not comment on market speculation. Qicheng and Qirun did not respond to requests for comments. The sales will mark Sinochem's exit from Shandong, home to most Chinese independent refiners, also known as teapots, which account for a fifth of China's crude imports. Sinochem took over the Shandong-based refineries via a state-orchestrated merger with ChemChina. The plants were declared bankrupt by local courts last year on debts and taxes owed. The minimum transfer price for Zhenghe was at 2.62 billion yuan ($365.12 million), versus its valuation at 6.3 billion yuan, documents on the Shandong Property Right Exchange Centre's website showed. For Huaxing, the minimum transfer price came in at 3.24 billion yuan, versus its valuation at 8.7 billion yuan, according to the documents. The website did not reveal names of bidders and it was not immediately clear if the deals will be concluded at these prices. Shandong Property Right Exchange Centre declined to comment. In March, Sinochem sold Changyi Petrochemical to Shandong Hongrun Petrochemical. After the acquisition, Qicheng and Qirun's refining capacities in Dongying will increase to about 170,000 bpd and 184,000 bpd, respectively, improving their economies of scale. The two Shandong refiners are also expected to receive a government quota to import crude oil of about 3.56 million metric tons (26 million barrels) for the rest of 2025, after acquiring Sinochem's plants, three of the sources added. The Ministry of Commerce, which issues quotas, did not respond to a fax seeking comment. Changyi recently resumed operations and has bought crude from Brazil and Canada using its 2025 import quota. ($1 = 7.1757 Chinese yuan renminbi) https://www.reuters.com/business/energy/chinas-sinochem-sell-two-bankrupt-refineries-local-operators-sources-say-2025-08-25/

2025-08-25 10:31

Ukraine drone attacks target Russian energy infrastructure US vice president says Russia has made 'significant concessions' Federal Reserve Chair Powell signals possible September rate cut LONDON, Aug 25 (Reuters) - Oil prices climbed on Monday as traders weighed concerns that Russian supply could be disrupted by more U.S. sanctions and Ukrainian attacks targeting energy infrastructure in Russia. Brent crude futures rose 40 cents, or 0.6%, to $68.13 by 1200 GMT, and West Texas Intermediate (WTI) crude futures gained 44 cents, or 0.7%, to $64.10. Sign up here. "The market is somewhat concerned that these peace negotiations are going nowhere," said Ole Hansen, head of commodity strategy at Saxo Bank. "The market is looking for supply to exceed demand in the autumn months, but in the short term that's being challenged by a potential geopolitical disruption." U.S. President Donald Trump warned again on Friday that he would impose sanctions on Russia if there was no progress toward a peaceful settlement in Ukraine in two weeks. He has also said he may hit India with harsh tariffs over its purchases of Russian oil. At the weekend, U.S. Vice President JD Vance said Russia had made "significant concessions" toward a negotiated settlement in the 3-1/2-year war. Ukraine, which has repeatedly targeted Russian energy infrastructure during the war, launched a drone attack on Sunday that sparked a huge blaze at the Ust-Luga fuel export terminal, Russian officials said. A fire at Russia's Novoshakhtinsk refinery, caused by a Ukrainian drone attack, was burning for the fourth day on Sunday, the region's acting governor said. The refinery sells fuel mainly for export and has an annual capacity of 5 million metric tons of oil, or about 100,000 barrels per day. Softening the worries about Russian supply disruptions was OPEC+'s reversal of a series of production cuts, which is adding millions of barrels to the market, Saxo Bank's Hansen said. Eight members of the oil exporters' group are scheduled to meet on Sept. 7, when they are set to approve another boost. Investors' risk appetite improved following Federal Reserve Chair Jerome Powell's signal on Friday of a possible interest rate cut at the U.S. central bank's meeting in September. But despite that, both benchmark oil prices appear to lack momentum, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, adding that markets seem increasingly convinced that Trump's tariffs will hit economic growth. https://www.reuters.com/business/energy/oil-prices-edge-up-traders-weigh-supply-risks-2025-08-25/

2025-08-25 10:04

MUMBAI, Aug 25 (Reuters) - The Indian rupee gave up early gains to end lower on Monday as concerns over steep tariffs on Indian goods spurred dollar demand, with importer bids adding pressure. The currency closed 0.1% lower at 87.58, against its previous close of 87.53 in the previous session. Sign up here. The local unit , which opened at 87.39, and hit day's high of 87.3450, saw selling pressure through the day amid dollar-buy orders from importers. "An additional 25% tariff is set to be enforced on August 27. This move will reduce Indian exports, widen the trade deficit, and add further stress to the rupee," said Amit Pabari, managing director at CR Forex. Indian goods face additional U.S. tariffs of up to 50% with effect from Wednesday. Washington had already levied 25% tariffs on Indian goods- steeper than those faced by many other large trade partners- and the latest slated increase comes in response to New Delhi's continued purchases of Russian crude. Signs that progress towards an Ukraine-Russia peace deal has stalled also reinforced expectations that the additional U.S. tariffs on Indian goods will be implemented, and any discussion may not bear fruit. Sentiment for the local currency impacted after Fitch kept its long-term foreign-currency issuer default rating on India at 'BBB-'. The currency gained in early part of the day after Federal Reserve Chair Jerome Powell hinted at a September rate cut, pushing U.S. yields and the dollar lower. On Friday, Powell said that risks to the job market were rising but also noting inflation remained a threat and that a decision was not set in stone. Traders are now pricing in nearly 90% odds of a quarter-point rate cut at the September 16-17 policy meeting, and a cumulative 48 basis points of reductions in 2025, according to LSEG data. https://www.reuters.com/world/india/india-rupee-slips-fourth-session-tariff-anxiety-importer-bids-2025-08-25/

2025-08-25 09:49

Stock exchange group raises concerns about tokenised stocks Such stocks lack safeguards of traditional stocks, says WFE Regulators should apply securities rules to tokenised stocks-WFE Aug 25 (Reuters) - A group representing the world's biggest stock exchanges has called on securities regulators to clamp down on so-called tokenised stocks, arguing that the blockchain-based tokens create new risks for investors and could harm market integrity, a letter seen by Reuters shows. Tokenised equities are blockchain-based tokens created to represent shares in companies. The tokens represent ownership of the securities but investors do not become shareholders in the underlying company. Sign up here. Crypto exchange Coinbase (COIN.O) , opens new tab and broker Robinhood (HOOD.O) , opens new tab are among those making a push into the nascent sector that could shake up the securities investing landscape. Proponents say tokenised equities can cut trading costs, speed up settlement and facilitate around-the-clock trading. The World Federation of Exchanges (WFE), in a letter sent to three regulatory bodies last Friday, said it was concerned the tokens "mimic" equities without providing the same rights or trading safeguards. The letter was sent to the U.S. Securities and Exchange Commission's (SEC) Crypto Task Force, the European Securities and Markets Authority (ESMA), and global securities watchdog IOSCO's Fintech Task Force. "We are alarmed at the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenised U.S. stocks," the WFE, a UK-based industry association for exchanges and clearing houses, said in the letter seen by Reuters. "These products are marketed as stock tokens or the equivalent to stocks when they are not." The WFE declined to name which brokers and trading platforms it was referring to. Issuers of stock - the companies whose stock is being mimicked - could suffer reputational damage if the tokens fail, the WFE said. The WFE's position reflects the concerns of market infrastructure players and the broader financial sector, WFE CEO Nandini Sukumar told Reuters, adding that some share issuers had expressed concerns to their exchanges. Regulators should apply securities rules to tokenised assets, clarify legal frameworks for ownership and custody, and prevent them being marketed as equivalent to stocks, the WFE said. The SEC and IOSCO did not immediately respond to requests for comment. ESMA declined to comment. An SEC commissioner said in July tokenised securities must still meet securities regulations. In June, trading platform Robinhood launched tokenised equities for EU customers, and said it also planned to offer tokens representing shares in privately-held companies, including OpenAI. OpenAI said in response that it did not endorse the tokens and was not involved in the offering. Coinbase is seeking permission from the SEC to offer tokenised equities to its customers, Reuters reported in June. Robinhood and Coinbase did not immediately respond to requests for comment. https://www.reuters.com/sustainability/boards-policy-regulation/stock-exchanges-urge-regulators-crack-down-tokenised-stocks-2025-08-25/

2025-08-25 09:46

Asian stock markets : Nikkei gains, China blue chip hit three-year top Wall St futures dip ahead of Nvidia Market implies 84% chance of Fed rate cut in Sept Dollar and yields steady after Friday's fall LONDON/SYDNEY, Aug 25 (Reuters) - Expectations of a resumption soon in U.S. interest rate cuts bolstered world stocks on Monday, with shares in Asia rising to multi-year highs. However, European shares retreated as some of the enthusiasm following U.S. Federal Reserve chief Jerome Powell's Jackson Hole speech faded and investors refocused on the broader economic picture. Sign up here. London markets were closed for a holiday, thinning overall trading volumes in Europe. Powell's dovish change of course has prompted futures to price in an 84% chance of a quarter-point rate cut in September, and at least 100 basis points of easing to 3.25-3.5% by the middle of next year. "As an investor, you lose an enemy whenever the Federal Reserve pivots because it gives valuations room to become ever more expensive," said Florian Ielpo, Lombard Odier Investment Managers' head of multi-assets. MSCI's broadest index of world shares (.MIWD00000PUS) , opens new tab rose 0.1% and held near Friday's record highs, while in Asia Chinese blue chips closed over 2% to its highest level since 2022 (.CSI300) , opens new tab, while Japan's Nikkei shut 0.4% higher. The dollar ticked higher , , flattering the outlook for corporate earnings, although increased rate-cut bets also imply policymakers now see more danger of a downturn in employment and the economy. Euro zone bond yields rose, reversing their fall from late Friday as traders reassessed that Fed-driven move and its impact on Europe. U.S. cash treasuries did not trade in London on Monday due to the bank holiday. Looking at inventory data for manufacturers, wholesalers and retailers, Lombard Odier's Ielpo said that, while manufacturers had stocked up amid tariff announcements, further down the economic food chain, retailers held little inventory. Companies returning to replenish items from now will discover the true costs of U.S. tariffs, which will likely turn up in third quarter results, said Ielpo. Market euphoria will also be tested by a reading on U.S. personal consumption prices on Friday that is expected to show core inflation creeping up to its highest since late 2023 at 2.9%. Any upside surprise to inflation would also challenge the rally in longer-dated Treasuries, especially given that a whopping $183 billion in new debt is being sold this week. The influential head of the New York Fed, John Williams, is due to speak later on Monday and markets will be keen to hear whether he shares Powell's outlook on policy. NVIDIA WATCH The pan-European STOXX 600 (.STOXX) , opens new tab index was down 0.2%, dragged down by Europe's renewable stocks after the U.S. government ordered Denmark's Orsted (ORSTED.CO) , opens new tab to halt construction of an offshore wind project near Rhode Island. The move, deepening woes for the industry and putting Orsted's plans to raise capital at risk, sent the company's share price down roughly a record 17%. Vestas Wind , EDP Renovaveis and Siemens Energy were all lower. Shares in Amsterdam-listed JDE Peet's (JDEP.AS) , opens new tab meanwhile surged 17% after Keurig Dr Pepper agreed a deal to buy the company for 15.7 billion euros, a 20% premium to Friday's closing price. Focus is turning to Nvidia's (NVDA.O) , opens new tab results on Wednesday when it is forecast to announce a 48% rise in earnings per share on revenue of $45.9 billion for its second fiscal quarter. U.S. S&P 500 and Nasdaq futures were down between 0.1% and 0.2%. Analysts will be keen to hear more on the outlook for shipments to China and details of the deal with President Donald Trump to pay the U.S. government 15% of the revenue from sales of some advanced chips in the Asian giant. Trump said on Friday that the U.S. would also purchase a 9.9% stake in Intel (INTC.O) , opens new tab for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel's closing share price of $24.80. In currency markets, the dollar gained around 0.25% to 147.24 yen after falling 1% on Friday. The euro ticked down 0.1% to $1.1705 , having bounced from a trough of $1.1583 on Friday. The European Central Bank is expected to hold rates unchanged in September, though sources told Reuters at the weekend that discussions about further cuts may resume in the autumn if the economy weakens. Gold declined as the dollar strengthened and was last down 0.3% to $3,363 an ounce after jumping 1% late last week. Oil prices were further supported by the lack of progress on talks between Russia and Ukraine, which keeps sanctions on Russian supplies. Brent rose 20 cents to $67.92 a barrel, while U.S. crude added 25 cents to $63.91 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-4-2025-08-25/