2025-07-23 20:47

July 23 (Reuters) - CSX (CSX.O) , opens new tab reported second-quarter profit above analysts' estimates on Wednesday, driven by improving intermodal volumes, sending its shares up more than 2% after the bell. Intermodal shipping, which involves two or more means of transportation for goods and accounted for 14% of its overall revenue in 2024, saw a 2% quarterly rise in volume. Sign up here. CSX chief executive Joe Hinrichs said on Wednesday that while uncertainty continues to impact select industrial markets, the company remained focused on completing two major infrastructure projects that will "strengthen our position to execute on many profitable growth opportunities ahead." "CSX performed better than expected as service improved and extra costs in the network came out much more quickly than anticipated 3 months ago," said Evercore ISI analyst Jonathan Chappell. "We welcome all opportunities that would allow us to deliver value for our shareholders, drive pro-growth and serve our customers better," Hinrichs said on a post-earnings call. The railroad operator is reportedly in discussions to appoint financial advisers as it explores strategic options amid growing speculation of a potential merger with its West Coast peer BNSF Railway, owned by Warren Buffett's Berkshire Hathaway (BRKa.N) , opens new tab. However, any merger would be subject to approval from the Surface Transportation Board, a regulatory body that oversees railroads. CSX maintains a fleet of more than 3,500 locomotives and about 51,000 freight cars, according to its website. Separately, CSX said that on July 10 the U.S. SEC had concluded its investigation into an accounting restatement and that it does not intend to recommend enforcement action. On an adjusted basis, it reported per-share profit of 44 cents, above the analysts' average estimate of 42 cents apiece, according to data compiled by LSEG. The company reported quarterly revenue of $3.57 billion, missing estimates of $3.58 billion. CSX's operating margin was 35.9% for the quarter, down by 320 basis points from last year. https://www.reuters.com/business/railroad-operator-csx-beats-quarterly-profit-estimates-higher-volumes-2025-07-23/

2025-07-23 20:39

July 23 (Reuters) - Puerto Rico is ending talks to negotiate a $20 billion liquefied natural gas contract with New Fortress Energy (NFE.O) , opens new tab, Bloomberg News reported on Wednesday, citing a negotiator. New Fortress was unwilling to discuss changes to the contract and missed a key deadline, the report said, citing Osvaldo Linares, president of Recoms Group, the island's third-party procurement office. Sign up here. Shares of New Fortress closed more than 6% lower. The stock has declined more than 74% in the past six months. The U.S. energy firm has been struggling to secure LNG for its power-generation operations on long-term agreements. The company is trying to raise cash and improve its finances by taking on partners for its primary businesses and selling some assets following its deferral of a shareholder dividend last year. Linares and New Fortress Energy did not immediately respond to Reuters requests for comment. Earlier this month, Bloomberg News reported Puerto Rico's financial watchdog had halted the supply deal over monopoly concerns. As a result of the talks ending, Puerto Rico's government is now in discussions with four other companies to provide LNG to the island under 30-day emergency contracts, Bloomberg's report said on Wednesday. Linares told Bloomberg his agency has sent a formal communication to Puerto Rico's oversight board saying negotiations had ended. A spokesperson for the Financial Oversight and Management Board of Puerto Rico confirmed the receipt of the letter. The letter was consistent with the watchdog's observations that neither the third-party procurement office nor the government was willing to defend the terms of the contract which had been initially submitted for review in June, the spokesperson added. https://www.reuters.com/business/energy/puerto-rico-ends-20-billion-lng-contract-talks-with-new-fortress-energy-2025-07-23/

2025-07-23 20:38

ICJ opinion could influence global climate litigation U.N. treaties should guide responsibilities, rich countries say South, small island states seek firm measures to curb emissions THE HAGUE, July 23 (Reuters) - The United Nations' highest court on Wednesday told wealthy countries they must comply with their international commitments to curb pollution or risk having to pay compensation to nations hard hit by climate change. In an opinion hailed by small island states and environmental groups as a legal stepping stone to make big polluters accountable, the International Court of Justice said countries must address the "urgent and existential threat" of climate change. Sign up here. "States must cooperate to achieve concrete emission reduction targets," Judge Yuji Iwasawa said, adding that failure by countries to comply with the "stringent obligations" placed on them by climate treaties was a breach of international law. The court said countries were also responsible for the actions of companies under their jurisdiction or control. Failure to rein in fossil fuel production and subsidies could result in "full reparations to injured states in the form of restitution, compensation and satisfaction provided that the general conditions of the law of state responsibility are met." "I didn't expect it to be this good," Vanuatu's Climate Minister Ralph Regenvanu told reporters after the unanimous opinion by the ICJ, also known as the World Court, was read out. Vishal Prasad, one of the law students that lobbied the government of Vanuatu in the South Pacific Ocean to bring the case to the ICJ, said: "This advisory opinion is a tool for climate justice. And boy, has the ICJ given us a strong tool to carry on the fight for climate justice." U.N. Secretary-General Antonio Guterres hailed the opinion and said it affirms that the Paris climate agreement goal needs to be the basis of all climate policies. "This is a victory for our planet, for climate justice, and for the power of young people to make a difference," he said. "The world must respond." HUMAN RIGHT TO CLEAN ENVIRONMENT Judge Iwasawa, who presided the panel of 15 judges, said that national climate plans must be of the highest ambition and collectively maintain standards to meet the aims of the 2015 Paris Agreement that include attempting to keep global warming below 1.5 degrees Celsius (2.7 Fahrenheit). Under international law, he said: "The human right to a clean, healthy and sustainable environment is essential for the enjoyment of other human rights." While the decision was stronger than most expected, its impact may be limited by the fact that the United States, the world's biggest historical greenhouse gas emitter, and second biggest current emitter behind China, has moved under President Donald Trump to undo all climate regulations. "As always, President Trump and the entire administration is committed to putting America first and prioritizing the interests of everyday Americans," White House spokeswoman Taylor Rogers told Reuters in response to the opinion. With scepticism over climate change spreading in the U.S. and elsewhere, Judge Iwasawa laid out the cause of the problem and the need for a collective response in his two-hour reading of the court's opinion. "Greenhouse gas emissions are unequivocally caused by human activities which are not territorially limited," he said. Historically, rich industrialised countries have been responsible for the most emissions. Iwasawa said these countries had to take the lead in addressing the problem. POLITICAL AND LEGAL WEIGHT The court's opinion is non-binding, but it carries legal and political weight and future climate cases would be unable to ignore it, legal experts say. "This is the start of a new era of climate accountability at a global level," said Danilo Garrido, legal counsel for Greenpeace. Harj Narulla, a barrister specialising in climate litigation and counsel for Solomon Islands in the case, said the ICJ laid out the possibility of big emitters being successfully sued. "These reparations involve restitution — such as rebuilding destroyed infrastructure and restoring ecosystems — and also monetary compensation," he said. TWO QUESTIONS Wednesday's opinion follows two weeks of hearings last December at the ICJ when the judges were asked by the U.N. General Assembly to consider two questions: what are countries’ obligations under international law to protect the climate from greenhouse gas emissions; and what are the legal consequences for countries that harm the climate system? Developing nations and small island states at greatest risk from rising sea levels had sought clarification from the court after the failure so far of the 2015 Paris Agreement to curb the growth of global greenhouse gas emissions. The U.N. says that current climate policies will result in global warming of more than 3 C (5.4 F) above pre-industrial levels by 2100. As campaigners seek to hold companies and governments to account, climate‑related litigation has intensified, with nearly 3,000 cases filed across almost 60 countries, according to June figures from London's Grantham Research Institute on Climate Change and the Environment. https://www.reuters.com/sustainability/cop/top-un-court-says-treaties-compel-wealthy-nations-curb-global-warming-2025-07-23/

2025-07-23 20:34

TSX ends up 0.2% at 27,416.41 Eclipses Thursday's record closing high Energy adds 1.1%, financials end up 0.6% Canadian National Railway falls 4.1% on revenue miss July 23 (Reuters) - Canada's main stock index posted a record high on Wednesday, helped by gains for energy and financial shares, as investors cheered signs that countries are reaching trade deals with the United States ahead of an August 1 deadline. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 51.98 points, or 0.2%, at 27,416.41, eclipsing Thursday's record closing high. Sign up here. "It looks like deals are getting done," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "This fear of August 1 may not materialize." Wall Street also rose as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement U.S. President Donald Trump struck with Japan. The energy sector (.SPTTEN) , opens new tab added 1.1% and heavily weighted financials (.SPTTFS) , opens new tab, which include bank stocks, were up 0.6%. "Banks are the bloodline of any economy," Small said, adding that they would benefit if trade certainty were to improve the economic outlook. Rogers Communications Inc (RCIb.TO) , opens new tab shares advanced 1.2% after the company raised its annual service revenue forecast, banking on a boost from its stake acquisition in Maple Leaf Sports. Not all sectors notched gains. The materials sector (.GSPTTMT) , opens new tab, which includes metal mining shares, fell 0.5% as the price of gold, a traditional safe haven, declined. Industrials also ended lower, losing 0.6%. Shares of Canadian National Railway Co (CNR.TO) , opens new tab dropped 4.1% after the company's second-quarter revenue missed expectations. https://www.reuters.com/markets/europe/tsx-climbs-record-high-global-trade-deal-optimism-2025-07-23/

2025-07-23 20:24

U.S., European shares rise on potential U.S.-EU trade deal U.S.-Japan tariff agreement boosts investor sentiment Treasury yields rise, gold softens as risk-on sentiment grows NEW YORK, July 23 (Reuters) - U.S. stocks advanced on Wednesday and Treasury yields reversed their three-day slide after word of a trade deal between the United States and Japan, while a report of a similar deal with the European Union provided welcome signs of progress in President Donald Trump's multi-front tariff negotiations. All three major U.S. stock indexes closed in positive territory ahead of hotly anticipated quarterly reports from Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab. Sign up here. Gold prices backed away from a five-week high as risk-on sentiment lured investors away from the safe-haven metal. Trump reached a trade agreement with Japan with just over a week remaining before an August 1 deadline. The deal spares Japan from bruising new levies on autos and other goods in exchange for a $500 billion package of investment and loans bound for the United States, and stands as the most significant trade deal yet to emerge since Trump's market-rattling "liberation day" tariff announcement in April. The European Union and the United States are nearing an agreement on a similar trade deal that would impose 15% tariffs on European imports, while waiving duties on some items, according to officials from the European Commission. This follows a deal with the Philippines, and raises hopes that more deals could be in the offing. "The storm clouds parting and the macro situation looks to be improving," said Sam Stovall, chief investment strategist of CFRA Research in New York. "Japan has signed a trade agreement, fingers are crossed for the EU, and investors are feeling optimistic that either more trade agreements will be announced before the August 1st deadline or postponements will be granted." Second-quarter earnings season is underway, with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data. Analysts currently predict year-on-year S&P 500 earnings growth, on aggregate, of 7.5%, marking a solid improvement over the 5.8% growth estimates as of July 1. High-profile results from Magnificent 7 members Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab will be closely scrutinized by investors, particularly any forward guidance that might shed light on expenditures and payoffs surrounding Artificial Intelligence (AI). As major tech and tech-related megacaps post results, Wall Street's reliance on a small number of momentum stocks will be put to the test. The Dow Jones Industrial Average (.DJI) , opens new tab rose 507.85 points, or 1.14%, to 45,010.29, the S&P 500 (.SPX) , opens new tab rose 49.35 points, or 0.78%, to 6,358.97 and the Nasdaq Composite (.IXIC) , opens new tab rose 127.33 points, or 0.61%, to 21,020.02. Optimism over a potential U.S.-EU trade deal lifted European shares, with automakers leading the rally. Should the talks fail, the European Union is preparing to unveil retaliatory measures. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 10.16 points, or 1.09%, to 939.94. The pan-European STOXX 600 (.STOXX) , opens new tab index rose 1.08%, while Europe's broad FTSEurofirst 300 index (.FTEU3) , opens new tab rose 23.70 points, or 1.10%. Emerging market stocks (.MSCIEF) , opens new tab rose 19.23 points, or 1.54%, to 1,267.28. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed higher by 1.53%, to 666.81, while Japan's Nikkei (.N225) , opens new tab rose 1,396.40 points, or 3.51%, to 41,171.32. U.S. Treasury yields moved higher after three straight days of declines as trade optimism fueled risk-on sentiment. The yield on benchmark U.S. 10-year notes rose 5.2 basis points to 4.388%, from 4.336% late on Tuesday. The 30-year bond yield rose 4.1 basis points to 4.944% from 4.903% late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.5 basis points to 3.886%, from 3.831% late on Tuesday. The dollar eased as the yen gathered strength and the euro inched higher as trade negotiations progressed. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.27% to 97.20, with the euro up 0.18% at $1.1774. Against the Japanese yen , the dollar weakened 0.1% to 146.48. In cryptocurrencies, bitcoin fell 1.08% to $118,485.91. Ethereum declined 2.99% to $3,596.61. Oil prices dropped as trade uncertainties ebbed. U.S. crude dipped 0.09% to $65.25 per barrel, while Brent settled at $68.51 per barrel, down 0.12% on the day. Spot gold fell 1.19% to $3,390.12 an ounce. U.S. gold futures fell 1.29% to $3,395.00 an ounce. https://www.reuters.com/business/autos-transportation/global-markets-update-8-graphics-2025-07-23/

2025-07-23 20:17

Tariffs on Japanese autos cut to 15% from 27.5% Thermo Fisher surges after beating Street estimates Texas Instruments slumps as tariff uncertainty hits demand Tesla reports after the bell, investors brace for revenue fall S&P 500 +0.78%, Nasdaq +0.61%, Dow +1.14% July 23 (Reuters) - The S&P 500 and Nasdaq notched record high closes on Wednesday, lifted by Nvidia and GE Vernova, as the European Union and the U.S. appeared headed toward a trade deal similar to an agreement President Donald Trump struck with Japan. The White House's deal with the European Union would include a broad tariff of 15% on EU goods imported into the U.S., two diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan. Sign up here. The benchmark S&P 500 has now climbed about 8% in 2025, while the Nasdaq has gained almost 9%. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Shares of GE Vernova (GEV.N) , opens new tab surged to 14.6% an all-time high after the power equipment maker raised its revenue and free cash flow forecasts and beat Wall Street estimates for second-quarter profit. GE Vernova has gained over 80% so far in 2025, with power consumption on track to hit due to growing demand from AI and cryptocurrency data centers. Heavyweight AI chipmaker Nvidia (NVDA.O) , opens new tab climbed 2.25% and fueled gains in the S&P 500 and Nasdaq. Tesla (TSLA.O) , opens new tab edged up 0.14% ahead of its quarterly report due after the closing bell. Investors will focus on the electric vehicle maker's analyst conference call. They have braced for Tesla to report a steep drop in revenue related to mounting competition, a lack of new car models and a consumer backlash against CEO Elon Musk. "What you will hear is an awful lot of discussion about the future and a broad acknowledgement that this was a terrible quarter," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. Alphabet (GOOGL.O) , opens new tab dipped 0.58%, with the Google parent also set to report results after the close of trading. The S&P 500 climbed 0.78% to end the session at 6,358.91 points. The Nasdaq gained 0.61% to 21,020.02 points, while the Dow Jones Industrial Average rose 1.14% to 45,010.29 points, just short of its December 4 record high close. Volume on U.S. exchanges was relatively heavy, with 19.1 billion shares traded, compared to an average of 17.7 billion shares over the previous 20 sessions. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX) , opens new tab, dipped to its lowest level in over five months. Analysts on average expect S&P 500 companies to report a 7.5% increase in earnings for the second quarter, according to LSEG I/B/E/S. Microsoft (MSFT.O) , opens new tab, Nvidia and other technology heavyweights that have seen their valuations soar due to their leadership in AI are expected to drive much of that quarterly earnings growth. Medical equipment maker Thermo Fisher (TMO.N) , opens new tab surged over 9% after beating Wall Street's estimates for second-quarter profit and revenue. Texas Instruments (TXN.O) , opens new tab tumbled 13% after its quarterly profit forecast pointed to weaker-than-expected demand for its analog chips and underscored tariff-related uncertainty. Texas Instruments' report weighed on other analog chipmakers, with NXP Semiconductors (NXPI.O) , opens new tab, Analog Devices (ADI.O) , opens new tab and ON Semiconductor (ON.O) , opens new tab losing between 1% and 4.6%. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 2.1-to-one ratio. The S&P 500 posted 50 new highs and 2 new lows; the Nasdaq recorded 96 new highs and 20 new lows. https://www.reuters.com/business/sp-500-nasdaq-rally-record-highs-on-optimism-about-trade-deals-2025-07-23/