2025-10-10 23:49

Once big, Chinese orders are now a small part of Boeing's backlog Financial effect of a ban would likely be relatively small for Boeing Boeing, China had reportedly been in talks for 500-jet deal WASHINGTON, Oct 10 (Reuters) - The United States could impose export controls on Boeing (BA.N) , opens new tab plane parts as part of Washington's response to Chinese export limits on rare earth minerals, President Donald Trump said on Friday. Trump has frequently used Boeing in his aggressive efforts to reshape global trade since taking office in January. During clashes with Trump over trade, Beijing in April ordered Chinese airlines to temporarily stop taking deliveries of new Boeing jets. The planemaker has also landed several large sales from foreign carriers following visits by Trump. Sign up here. "We have many things, including a big thing is airplane. They (China) have a lot of Boeing planes, and they need parts, and lots of things like that," Trump told reporters at the White House, when asked what items could the U.S. impose export controls on. The planemaker is in talks to sell as many as 500 jets to China, Bloomberg reported in August. It would be the U.S. planemaker's first major Chinese order since Trump's first term in office. Even if that falls through, the financial hit to Boeing will likely be small, said Scott Hamilton, an aerospace analyst with Leeham Co. "It's sandpaper on Boeing's hide." Historically, China made up as much as 25% of Boeing's order book, but today it is less than 5%. Chinese airlines have orders for at least 222 Boeing jets, according to Cirium, an aviation analytics company. The country has 1,855 Boeing airplanes in service. The vast majority of planes on order and in service are Boeing's popular 737 single-aisle jet. A ban on spare parts or exports would also hit CFM International, the joint venture between GE Aerospace (GE.N) , opens new tab and France's Safran, which makes the LEAP engine used on the Boeing 737 MAX. GE also makes engines for the 777 and 787, two larger jets that China has ordered. Boeing's European rival Airbus has only 185 orders from Chinese customers, according to Cirium. Airbus has a production facility in Tianjin, which turns out about four of its single-aisle A320 jets a month. China is trying to jumpstart its own commercial jetliner industry, largely with the COMAC C919, a competitor to the A320 and 737. Chinese customers have ordered 365 of the domestically-built jet, according to Cirium. U.S. export controls on Western-supplied parts for the C919 have significantly slowed production of that aircraft. As of September, COMAC had delivered only five of the 32 jets Chinese customers expect this year. https://www.reuters.com/business/aerospace-defense/trump-threatens-export-controls-boeing-parts-response-china-2025-10-10/

2025-10-10 23:04

BP arbitration win surprises after Venture Global's win against Shell Pending disputes could lead to $4.8 billion in damages Calcasieu Pass project delays central to arbitration claims Oct 10 (Reuters) - Venture Global (VG.N) , opens new tab shares plunged nearly 25% on Friday to their lowest level in five months after it lost an arbitration case with BP (BP.L) , opens new tab over the U.S. LNG exporter's failure to deliver on a long-term gas supply contract, stoking worries of similar verdicts in disputes with other customers seeking billions of dollars in compensation. The ruling was a surprise after Venture Global's recent arbitration win against Shell (SHEL.L) , opens new tab. BP is seeking more than $1 billion in damages plus interest and legal costs, with the final amount to be determined in a separate hearing in 2026. Sign up here. Venture Global, the second-largest U.S. liquefied natural gas supplier, is facing other arbitration claims with customers seeking compensation of more than $4 billion linked to the delayed commercial start-up of the Calcasieu Pass project in Louisiana, according to the company's 2024 annual report. The company previously warned that losing current or future arbitration cases could result in significant financial penalties, the termination of some gas supply contracts, and accelerated repayment of project debt. All of the companies that have filed arbitration are seeking compensation, and none of them have sought to terminate their contracts in their proceedings, Venture Global has said. It is unclear why the result of the BP arbitration was different to the Shell case, and whether the outcome was due to differences in contracts or in the company's legal strategies. PENDING ARBITRATION CASES COULD BRING ADDITIONAL DAMAGES Deutsche Bank said in a note to clients on Friday that the latest outcome pushed it to revise the risk that Venture Global will face negative decisions from the remaining arbitrations to 50%. Venture Global told analysts on Thursday that the BP ruling has no impact on its current sale and purchase agreement with the company, according to two people who recounted the call to Reuters. Gabriel Moreen, a managing director at Mizuho Securities, called the ruling a "negative surprise," saying it introduces uncertainty for the remaining claims. "How two arbitrations over the exact same facts and circumstances led to two different outcomes is perhaps more a comment on the arbitrary nature of unilateral decision-making in arbitration hearings than anything else," J.P. Morgan analysts wrote in a note to clients on Friday. Should the company lose the remaining arbitration cases, it could face damages in the vicinity of $4.8 billion. If it continues to see split results, however, the total damages would be closer to $2.9 billion, the analysts said. The Venture Global share drop looked set to wipe out nearly $8 billion from the company's market valuation, if current losses hold. Since the company's initial public offering in January, its shares have fallen almost 61%. The stock declines also reflect ongoing investor caution over LNG commissioning risks. Venture Global is expanding its production amid surging global demand, with the U.S. becoming the world's top LNG supplier in 2023. CALCASIEU PROJECT IN SPOTLIGHT In addition to BP and Shell (SHEL.L) , opens new tab, Italy's Edison (EDNn.MI) , opens new tab, Portugal's Galp (GALP.LS) , opens new tab, Spain's Repsol (REP.MC) , opens new tab, and Poland's Orlen (PKN.WA) , opens new tab have filed arbitration claims accusing Venture Global of profiteering by selling LNG cargoes at higher spot market prices, rather than delivering them under long-term contracts. Edison and Repsol told Reuters they were still pursuing their arbitration cases against Venture Global. Orlen declined to comment, but said it remains in arbitration with the U.S. company. Venture Global has argued that the Calcasieu Pass export facility start-up was unavoidably delayed and could not reach the status of commercial operations for almost three years, even though it was exporting the superchilled gas from the plant. Long-term contracts did not take effect until the plant reached commercial operations in April 2025. Citi said the arbitration result was "unexpected," adding that the tighter language in BP's contract likely contributed to the outcome. The International Chamber of Commerce International Court of Arbitration found that Venture Global had breached its obligations to declare commercial operations had begun at the Calcasieu Pass plant in a timely manner and act as a "reasonable and prudent operator," the company said on Thursday. Venture Global said it is evaluating all options and will continue to vigorously defend its position. A SEPARATE ARBITRATION DISPUTE WAS SETTLED The settlement of a separate arbitration dispute with Venture Global, meanwhile, involved Unipec, a trading unit of Chinese state-owned oil and gas firm Sinopec (600028.SS) , opens new tab, according to two sources with knowledge of the matter. Venture Global first announced the resolution on Thursday without disclosing the other party involved, adding the agreement would have no material impact on its business. Unipec had previously entered into a fixed-price, three-year take-or-pay sales purchase agreement for one million metric tons per annum from Calcasieu Pass, according to a regulatory filing in March. While it did not name the company, Venture Global also said at the time that a mid-term customer had been seeking damages of around $200 million. The Chinese firm sued for arbitration in late 2023, becoming one of seven Venture Global customers to ultimately do so, claiming the U.S. supplier breached its contract by selling cargoes on the spot market before honoring its long-term purchase agreement. Venture Global declined to comment about Unipec when contacted by Reuters. Unipec did not immediately respond to a request for comment. https://www.reuters.com/business/energy/venture-global-shares-slide-after-bp-wins-arbitration-case-over-lng-cargoes-2025-10-10/

2025-10-10 21:15

HOUSTON/PARIS/MILAN/LONDON, Oct 10 (Reuters) - The settlement of an arbitration announced on October 9 by Venture Global (VG.N) , opens new tab involved Unipec, a trading unit of Chinese state-owned oil and gas firm Sinopec (600028.SS) , opens new tab, according to two sources with knowledge of the matter. Venture Global first announced the resolution on Thursday without disclosing the other party involved, adding the agreement would have no material impact on its business. Sign up here. Unipec had previously entered into a fixed-price, three-year take-or-pay sales purchase agreement for one million metric tons per annum from Venture Global's Calcasieu Pass LNG export plant in Louisiana, according to a regulatory filing in March. While it did not name the company, Venture Global also said at the time that a mid-term customer had been seeking damages of around $200 million. The Chinese firm sued for arbitration in late 2023, becoming one of seven Venture Global customers to ultimately do so, claiming the U.S. supplier breached its contract by selling cargoes on the spot market before honoring its long-term purchase agreement. Venture Global declined to comment when contacted by Reuters. Unipec did not immediately respond to a request for comment. https://www.reuters.com/business/energy/venture-globals-arbitration-settlement-announced-oct-9-involved-chinese-firm-2025-10-10/

2025-10-10 21:06

Oct 10 (Reuters) - Bitcoin, the world's largest cryptocurrency by market value, extended declines on Friday after U.S. President Donald Trump escalated his trade conflict with China. Trump on Friday said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on "any and all critical software" in a reprisal to recently announced export limits by China on rare earth minerals critical to tech and other manufacturing. Sign up here. The spat shook global financial markets, sending the benchmark S&P 500 Index (.SPX) , opens new tab sliding by more than 2%. Bitcoin was last down 8.4% at $104,782 as of 17:20 ET (2120 GMT). Ethereum , the world's second-largest cryptocurrency, fell 5.8% to $3637 at 17:21 ET. https://www.reuters.com/business/bitcoin-down-55-114505-2025-10-10/

2025-10-10 20:58

Oct 10 (Reuters) - S&P Global upgraded Egypt's rating by a notch on Friday, citing ongoing reforms that have led to a sharp rebound in GDP growth, while Fitch highlighted the country's fairly high growth potential and strong support from partners in its affirmation. Fitch last upgraded Egypt's ratings to 'B' in November 2024, when foreign investments and tighter monetary conditions helped build stronger finances, while S&P's upgrade to 'B' is the first since Egypt started receiving financial support around March 2024. Sign up here. S&P said the strategic importance of Egypt has been highlighted and elevated by the conflict in Gaza, and has been part of the reason that Gulf Cooperation Council members and other countries continue to extend financial support to Egypt. "We consider the risk from an escalation of tensions with Israel has increased only moderately over recent months, and energy collaboration continues to progress," Fitch added in its statement. Egypt's annual inflation rate has plunged from a record 38% in September 2023, helped by an $8 billion bailout programme from the International Monetary Fund in March 2024 read more "Given the stronger GDP growth prospects, increased revenue alongside expenditure control, and primary surplus targets tied to an IMF program, we expect fiscal consolidation to continue, albeit at a gradual pace," S&P said , opens new tab in a statement. Alongside the IMF programme, the commitment to a market-determined exchange rate, should continue to support Egypt's GDP growth prospects and fiscal consolidation efforts over fiscal years 2025-2028, S&P said. In the April-June 2025 quarter, Egypt's tourism revenue rose 20%, showing a strong recovery from the impact of the pandemic, while remittances from Egyptians abroad, another main source of foreign currency, rose 36.5%. read more According to S&P, the reforms undertaken over the past 18 months by the authorities, including the liberalization of the foreign exchange regime, have led to the sharp rebound in Egypt's GDP growth, boosted tourism and inward remittances. S&P and Fitch maintained their outlook for Egypt at 'stable'. Peer agency Moody's rating on Egypt remains 'Caa1' since October 2023, though it revised , opens new tab its outlook to 'positive' from 'negative' in March 2024, following significant bilateral support and policy changes. https://www.reuters.com/world/africa/sp-upgrades-egypts-rating-b-reforms-drive-rebound-economic-growth-2025-10-10/

2025-10-10 20:52

Musalem open to 'potential' rate cut as insurance against labor market weakness He says inflation, not job market, is restraining lower-income households' spending Controlling inflation key to supporting spending, Musalem says Oct 10 (Reuters) - St. Louis Federal Reserve President Alberto Musalem on Friday said he sees possible room for one more interest rate cut to shore up the labor market, but urged caution because inflation remains "materially" above the U.S. central bank's 2% target. "I am open-minded about a potential further reduction in interest rates to provide further insurance against labor market weakening," Musalem said at the Springfield Area Chamber of Commerce in Missouri. Sign up here. But, he added, "I believe that we have to tread with caution because there's limited room for further easing before monetary policy could become overly accommodative, and I believe that monetary policy should continue to lean against persistence in inflation." Trading in interest-rate futures contracts reflects heavy bets that the Fed will follow its quarter-percentage-point rate cut last month with same-sized reductions at its October 28-29 and December 9-10 meetings. And while some Fed policymakers, including the influential New York Fed chief John Williams, have leaned into that expectation, Musalem's comments suggest he may not be sold on the idea. Kansas City Fed President Jeff Schmid, another of the Fed's 12 voting rate-setters this year, likewise has emphasized inflation concerns. Both had joined the 11-1 majority at the Fed approving the Fed's quarter-percentage-point rate cut last month. Musalem on Thursday said he expects U.S. economic growth to be healthy in the fourth quarter and to run at or a bit above its long-run potential next year, bolstered by robust consumer spending thanks in part to lower interest rates. But, he said, some groups like Hispanics are slowing their spending, and lower- and middle-income households are only maintaining their spending through borrowing. "Their real incomes, their wages adjusted for inflation, haven't been growing at a rate that allows them to consume comfortably without taking on additional credit," he said, attributing the insight to a recent conversation with community development practitioners. "That drove home for me that it's really important for us to achieve our 2% price stability or inflation goal to support consumption." He said he feels the Trump administration's tariffs are only responsible for about 10% of the current rate of inflation, and that he expects their effect to dissipate by the middle of 2026, allowing inflation to head back to the Fed's 2% target. Musalem expects the labor market "to continue to soften some going forward in an orderly way, with the supply and demand both muted." But that's only a baseline, he said, and there are risks that inflation could be more persistent, or that the labor market could weaken more than expected - one reason that he does not rule out some more "insurance" in the form of another reduction in borrowing costs. Still, he said, the Fed should be careful, especially in light of the stock market rally in recent months. "I now perceive monetary policy as somewhere between modestly restrictive and neutral, and I see, when I look out the window, financial conditions and financing conditions which are very accommodative of the growing economy," he said. https://www.reuters.com/business/fed-should-tread-with-caution-rate-cuts-musalem-says-2025-10-10/