2025-10-14 22:20
WASHINGTON, Oct 14 (Reuters) - Major Chinese airlines on Tuesday urged the Trump administration to abandon a plan to bar them from flying over Russia on U.S. flights, saying it would increase flight times, raise air fares and could disrupt some routes. Last week the U.S. Transportation Department proposed banning Chinese airlines from flying over Russia on routes to and from the United States, saying the reduced flight time puts American carriers at a disadvantage. Sign up here. China Eastern (600115.SS) , opens new tab, one of six Chinese airlines that sent letters, said in a filing with USDOT that the move could extend the flight time on some of its most important routes by two to three hours, significantly increase risks of missed connections and boost fuel consumption. Air China (601111.SS) , opens new tab and China Southern (600029.SS) , opens new tab said the decision would adversely affect a substantial number of passengers in the United States and China. China Southern projected at least 2,800 passengers scheduled to travel during the peak holiday season of November 1 to December 31 would need to be rebooked "jeopardizing their travel plans." Separately United Airlines urged the Trump administration to extend the prohibition to Cathay Pacific (0293.HK) , opens new tab, which flies over Russia on flights to the United States from Hong Kong and other Hong Kong-based carriers. United (UAL.O) , opens new tab says the Russia restrictions mean it is "effectively barred from resuming non-stop China service on previously served routes such as Newark/New York, Washington, D.C., and Chicago." Russia has barred U.S. airlines and many other foreign carriers from flying over its airspace in retaliation for Washington banning Russian flights over the U.S. in March 2022 after Russia invaded Ukraine. Chinese airlines were not banned and have been using this advantage to increase market share compared to non-Chinese carriers on international routes. A spokesperson for China's foreign ministry on Friday said the restrictions were not conducive to person-to-person exchanges. Airlines for America, a major trade group representing carriers American Airlines (AAL.O) , opens new tab, Delta Air Lines (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab praised the effort but also called on USDOT to continue to "maintain parity in the number of passenger flights available to U.S. and Chinese airlines, by ensuring that the level of passenger capacity stays reasonably tied to marketplace demand." https://www.reuters.com/world/asia-pacific/chinese-airlines-oppose-trump-plan-stop-flying-over-russia-us-routes-2025-10-14/
2025-10-14 22:18
GM's $1.6 billion charge linked to EV capacity adjustments GM may incur further charges due to capacity reassessment Automaker expects EV adoption to slow Oct 14 (Reuters) - General Motors (GM.N) , opens new tab said on Tuesday it would take a $1.6 billion charge in the third quarter as it reshapes its electric vehicle strategy following the scrapping of a key federal incentive that is likely to dampen demand. GM's disclosure is one of the clearest indications yet that U.S. automakers are scrambling to adapt their production plans in response to slowing EV demand. Sign up here. The EV market also faces fresh strain after the Trump administration scrapped a $7,500 federal tax credit for electric vehicles, a key industry support, with auto executives warning of a sharp near-term drop in battery-car sales before an eventual rebound. EV ADOPTION RATE TO SLOW In a filing, GM said it expects "the adoption rate of EVs to slow" following recent policy changes, including the termination of certain consumer tax incentives and reduced emissions-rule stringency. "The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment," GM told Reuters in a statement. Shares of the company were up 2.1% in morning trade. Automakers are also working to cushion the impact of President Donald Trump's tariffs, which forced GM to take a $1.1 billion hit in the previous quarter. The company has estimated a bottom-line impact of $4 billion to $5 billion this year from trade headwinds and said it could take steps to offset at least 30% of the blow. Morningstar senior analyst David Whiston noted that other automakers could follow GM's suit and announce their own EV-related impairments. Ford (F.N) , opens new tab declined to comment on its EV plans, while Stellantis did not immediately respond to a Reuters request for comment. GM'S $1.6 BILLION CHARGE "The charge doesn’t come as a surprise given recent market developments and the fact GM had made probably the most aggressive EV push of any traditional automaker," said Garrett Nelson, a senior equity analyst at CFRA Research. "We think the automakers who chose to invest more heavily in hybrid vehicle development such as Toyota and Honda are poised to benefit in the U.S. auto market." Both GM and crosstown rival Ford had launched a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired, before walking back on those plans. The charges include a $1.2 billion non‑cash impairment tied to EV capacity adjustments and $400 million for contract‑cancellation fees and commercial settlements. While the changes will not affect GM's current portfolio of Chevrolet, GMC, and Cadillac EVs in production, the company did warn of possible additional charges as it reassesses capacity and manufacturing footprint. GM said the charges will be recorded as adjustments to non‑GAAP results for the third quarter, which are scheduled for release early next week. https://www.reuters.com/business/autos-transportation/gm-takes-16-billion-charge-it-reassesses-ev-plans-2025-10-14/
2025-10-14 21:45
Chevron pushes for input on Venture Global's LNG plant extension request Venture Global cites COVID-19 challenges for extension request Arbitration tribunal finds Venture Global breached agreement with BP HOUSTON, Oct 14 (Reuters) - Chevron (CVX.N) , opens new tab on Tuesday asked federal regulators to let it offer an opinion on Venture Global's (VG.N) , opens new tab recent request for more time to commission the Plaquemines LNG plant in Louisiana, at which the U.S. oil major has a long-term sales and purchase agreement that could be affected by any delay. The filing from Chevron came just days after an arbitration tribunal found that Venture Global breached an agreement with BP (BP.L) , opens new tab to declare timely commercial operations at its separate Calcasieu Pass plant, also in Louisiana. The LNG producer's shares plummeted 25% on Friday as investors worried about other ongoing arbitration liabilities. Sign up here. Last month, Venture Global asked the Federal Energy Regulatory Commission to give it until the end of 2027 to commission the Plaquemines plant, citing challenges stemming from the Covid-19 pandemic. The original deadline to put the 27.2 million metric tons per annum export facility into service was September 30, 2026. "Chevron has a substantial interest that may be directly affected by the outcome of this proceeding," it wrote in the filing. The company did not immediately respond to a request for further comment. Venture Global characterized the extension it is seeking as a standard procedural step that is routinely taken to align schedules with FERC in-service deadlines. “To be clear, this request to FERC for an extension of our in-service deadline at Plaquemines has no impact on our publicly announced expectations for the commercial operations date of Phase 1 and Phase 2 which remain the same, " Venture Global told Reuters on Tuesday. https://www.reuters.com/business/energy/chevron-pushes-say-venture-global-request-plaquemines-lng-startup-extension-2025-10-14/
2025-10-14 21:31
NEW YORK, Oct 14 (Reuters) - Bitcoin and ether tumbled on Tuesday as U.S.-China tension ramped up, wiping out a rally the day before that was fueled by President Donald Trump's conciliatory trade remarks. The U.S. and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world's two largest economies. Sign up here. In afternoon trading, bitcoin fell to as low as $110,023.78 and was last down 2.3% at $113,129. The world's largest cryptocurrency hit a record high above $126,000 on October 6. Ether, the second-biggest digital currency, slid to a trough of $3,900.80 and was last down 3.7% at $4,128.47. Last Friday, it dropped 12% from the day's high to a low of $3,436.29 . Altcoins, a term for all cryptocurrencies other than market-leader bitcoin, bore the brunt of the move, with many falling 80% on some exchanges, analysts said. Exchanges amplified Friday's selloff by automatically forcing some leveraged investors to close their positions after their collateral fell below certain thresholds, analysts said. "As long as China's relationship with the U.S. is shaky and stocks too concentrated in tech, crypto will be struggling as it tends to enjoy good times when other established assets are holding up well," said Juan Perez, director of trading at Monex USA in Washington. "But when the fundamentals are not great, crypto struggles to find a base for its value whether it's bitcoin or ether." Tuesday's price action came days after the crypto market experienced the largest liquidations in history, with more than $19 billion wiped out across leveraged positions late on Friday. The crash came after Trump said he would impose 100% tariffs on Chinese imports, in response to China announcing a major expansion of its rare earths export controls. https://www.reuters.com/world/china/bitcoin-ether-drop-us-china-tensions-flare-up-erasing-mondays-gains-2025-10-14/
2025-10-14 21:09
BRUSSELS, Oct 14 (Reuters) - Abu Dhabi state oil firm ADNOC is set to secure EU approval for its 14.7-billion-euro ($17 billion) bid for German chemicals company Covestro, with EU regulators likely to seek tweaks to remedies provided earlier this month, sources with direct knowledge of the matter said. The European Commission is examining the deal, ADNOC's biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, over concerns that ADNOC may be using state subsidies to acquire the chemicals company. Sign up here. The Commission declined to comment. Covestro shares gained 2.4% in late trade after the Reuters story was published, versus a slight dip in the STOXX Europe 600 chemicals index . The EU regulator sought feedback from rivals and third parties last week after ADNOC offered to change its articles of association to remove EU concerns about the unlimited state guarantee. It also pledged to retain Covestro's intellectual property in Europe. The Commission is expected to demand some minor changes to the remedies before clearing the deal, the sources said. Such demands are typical after feedback from third parties. ADNOC reiterated previous comments about offering a package of robust and proportionate remedies to the Commission and that it was confident this would lead to timely clearance of the deal. Separately, the Commission is expected to resume its investigation of the deal shortly after temporarily halting the process last month while waiting for ADNOC to provide requested information. ADNOC has since responded to all the requests for information, said another source. https://www.reuters.com/business/energy/adnoc-set-win-17-billion-covestro-deal-with-remedy-tweaks-sources-say-2025-10-14/
2025-10-14 21:07
NEW YORK, Oct 14 (Reuters) - Making sense of the forces driving global markets By Alden Bentley, Editor in Charge, Americas Finance and Markets Sign up here. Jamie McGeever is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what's happening in markets. U.S. central bank chief Jerome Powell steadied the market, which has been whipsawed in recent sessions by a flare-up in U.S.-China trade tensions. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab Today's Key Reads Fed's Powell says economy may be on firmer footing, but job market weak US, China roll out tit-for-tat port fees, threatening more turmoil at sea US banking giants buoyed by dealmaking, but warn of asset price bubbles Wall Street's fear gauge climbs as US-China trade fears rise Long Treasury yields to stay elevated as inflation, debt pressures blunt Fed easing: Reuters poll Today's Key Market Moves STOCKS: The S&P 500 (.SPX) , opens new tab and Dow (.DJI) , opens new tab shook off early losses, steadying on the back of comments by Federal Reserve Chair Jerome Powell and strong earnings from JPMorgan Chase (JPM.N) , opens new tab, Goldman Sachs (GS.N) , opens new tab, Citigroup (C.N) , opens new tab and Wells Fargo (WFC.N) , opens new tab. The S&P closed slightly lower, but the Dow (.DJI) , opens new tab held gains while the Nasdaq (.IXIC) , opens new tab remained on the ropes all day amid a pullback in tech shares. SHARES/SECTORS: Wells Fargo and Citi were up sharply while JPMorgan and Goldman shares were lower. Financials are the top-performing S&P 500 sector on the day, followed closely by Industrials, led by Caterpillar (CAT.N) , opens new tab after JPMorgan raised its price target. Market cap leader Nvidia (NVDA.O) , opens new tab was down sharply and Information Technology was the only losing sector. FX: The U.S. dollar eased. The safe-haven Swiss franc and Japanese yen gained following renewed signs of strain in U.S.-China trade relations, while the euro was supported after the French government proposed to suspend landmark pension reform. BONDS: U.S. Treasury yields declined as concerns about trade tensions between China and the U.S. dented risk appetite, while Powell's comments suggested the Fed remained on course to cut rates. COMMODITIES: Oil prices tumbled after the International Energy Agency warned of a huge supply glut in 2026. Gold prices set a new record high on rising expectations of a U.S. Federal Reserve rate cut this month and safe-haven demand on trade tensions between the world's two largest economies. CRYPTO: Bitcoin fell as low as $110,023.78 and was last down 1.9%. The world's largest cryptocurrency hit a record high above $126,000 on October 6. Today's Key Talking Points After major U.S. indexes fell again overnight, bulls recaptured control following comments by Federal Reserve Chair Jerome Powell that reassured investors that even without the latest government data, indications were the economy remained on a firm trajectory, while labor market conditions were not a deal breaker for further easing. He also reduced concerns about tight financial conditions by holding out the prospect of ending the Fed's balance sheet run-off. At the same time, solid results from some of the nation's largest banks set up earnings season on a positive note. The Cboe Volatility Index (.VIX) , opens new tab jumped to its highest in nearly five months before paring gains, reflecting the whipsaw stock market action since Friday on renewed concerns over a U.S.-China trade conflict. For the moment tariffs seem to have reclaimed top position as the market influence from Artificial Intelligence. AI excitement helped lift the S&P 500 to record highs last week and the benchmark is only about 1% away. Wall Street started the session on the back foot after Washington and Beijing moved to slap tit-for-tat additional port fees on ocean shipping firms. The previous two sessions saw a bungee-like drop and rebound after U.S. President Donald Trump threatened, then seemed to downplay, punishing China over rare earth export controls with 100% tariffs on Chinese goods. Graphics What could move markets tomorrow? * Bank of America, Morgan Stanley, United Airlines report earnings * Numerous Fed officials speak, including recent Trump appointment to the Board of Governors Stephen Miran participating at a CNBC forum in Washington DC Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/world/china/global-markets-trading-day-2025-10-14/
