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It amounts to US strategic partner New Delhi stepping in to replace crude purchases by Western buyers, reduced by sanctions over Russia’s invasion of Ukraine, the analysis said. The United States led a coalition of countries in late 2022 that agreed to a “price cap,” undertaking not to buy Russian crude above $60 a barrel. Those nations also forbade their shipping companies and insurance firms – key players in global shipping – from facilitating the trade of Russian crude above that price. “The price cap was the real trigger for the creation of the shadow fleet,” said Viktor Katona, head of crude oil analysis at trade research firm Kpler. It will be $150.”India’s complex role in global oil trade is also reflected in the fate of the oil products Russian crude is turned into.
Persons: they’re, , David Tannenbaum, Viktor Katona, Tannenbaum, ” Ami Daniel, Vladimir Putin, Howard Shatz, Singh Puri, Rosneft, Daniel, I’m Organizations: CNN, Centre for Research, Energy, Clean, Star, Pole Star, US Treasury, United, Pole Star Global, European Union, RAND, India’s, Petroleum, Natural Gas, CNBC, Nayara, Kremlin Locations: Russia, Ukraine, India, United States, Delhi, Moscow, Laconian Gulf, Greece, Suez, Russian, Kyiv, Vadinar
Future Publishing | Future Publishing | Getty ImagesThe Red Sea crisis has fueled a sharp spike in ocean freight inflation over the past two months, but there are signs that upward pressure on shipping rates on key trade routes may have peaked. Shipping rates on ocean routes from Asia to the U.S. are beginning to decline, based on analysis of the latest cargo data from Xeneta, a leading ocean and air freight benchmarking platform. The reversal in ocean freight pricing comes despite a maritime threat to global commercial shipping companies that shows no signs of waning. The timing of the rate decreases could influence new contracts in negotiations between ocean freight carriers and shippers at the beginning of March. "Either way, the next few weeks is crunch time for both ocean freight carriers and shippers and could define their fortunes for the rest of 2024."
Persons: Emily Stausbøll, Stausbøll Organizations: Future Publishing, Shipping, United Kingdom Maritime Trade, CNBC, FEU, U.S ., U.S Locations: Qingdao, Shandong province, Asia, Xeneta, Europe, U.S, East Coast, West Coast, Aden, Yemen, West, East, U.S . West Coast, Covid, Africa, Suez
Moller-Maersk, the second-largest global ocean carrier, is advising customers to prepare for a Red Sea crisis that could stretch well into the second half of this year. "Unfortunately, we don't see any change in the Red Sea happening anytime soon," Charles van der Steene, regional president for Maersk North America, tells CNBC. After attacks on two U.S.-flagged Maersk vessels on January 24, the Maersk Detroit and Maersk Chesapeake, Maersk Line, Limited — a U.S. subsidiary of Maersk, which operates U.S.-flagged vessels independently — announced it would no longer traverse the Red Sea. The global shipping and logistics company's cautious view of the Red Sea safety conditions comes despite a U.S.-led multinational military operation in the region, Operation Prosperity Guardian. "Our advice to our customers is specifically about building upon the uncertainty by being agile," said van der Steene.
Persons: Ebba, A.P ., Kristian Helgesen, Moller, Charles van der, Good Hope, der Steene, Maersk, van der, van der Steene, van der Steen, Panama hasn't, we're Organizations: A.P, A.P . Moeller, Maersk, Bloomberg, Getty, Maersk North, CNBC, Maersk Detroit, Maersk Chesapeake, Prosperity, U.S, Gaza, Maritime Security Program, VISA, Voluntary Intermodal, U.S ., Intelligence, East, Oceania Locations: Suez, Egypt, Maersk North America, Gulf, Aden, Hangzhou, Maersk, U.S, Good, Asia, Limited's U.S, West Coast, East Coast ., East Coast, Cape Hope, Panama, Ports, Mexico, Pacific Northwest, Los Angeles, Long, China, Australia, New Zealand
Opinion: What Iran wants — and fears
  + stars: | 2024-02-13 | by ( Opinion Hussein Ibish | ) edition.cnn.com   time to read: +7 min
Iran has backed Hezbollah’s efforts to avoid an all-out war with Israel despite consistent Israeli escalation and threats. Hezbollah doesn’t want a war with Israel and Iran agrees. The potential for such US or Israeli airstrikes is among the most significant reasons Iran wants to avoid a broader conflict. Tehran has already restrained its Iraqi proxies, is working to help Hezbollah climb down and avoid a devastating Israeli attack. And Iran is probably urging the Houthis to take great care not to kill Americans or otherwise go too far.
Persons: Hussein Ibish, Read, Hussein Ibish It’s, Biden, Israel, Kataib, Saleh Al, Wissam, Amos Hochstein, Ebrahim Raisi, Shannon Stapleton, It’s Organizations: Gulf States Institute, Israel, CNN, Washington, Radwan Force, Iranian Locations: Washington, Iranian, Iran, Iraq, Syria, Lebanon, Gaza, Yemen, United States, Saudi Arabia, Russia, China, Saudi, That’s, Israel, Jordan, Hezbollah’s, Beirut, Tehran, Yemeni, Suez, Strait, Hormuz, Bab, Mandab
The dollar is back. It’s not all good news
  + stars: | 2024-02-09 | by ( Krystal Hur | ) edition.cnn.com   time to read: +6 min
New York CNN —The greenback is strengthening again after a bumpy 2023, as Wall Street accepts that interest rate cuts are coming later than previously expected. The US Dollar Index, which tracks the dollar against the British pound, euro, Swiss franc, Japanese yen, Canadian dollar and Swedish krona, is up 2.8% for the year as of Friday morning. “All of a sudden the interest rate differential kicks in — if that is slower than the Fed or faster,” said Krosby. Higher interest rates tend to garner more international capital to flow into a country, raising demand for the currency and thus its value. Still, Todd Jones, chief investment officer at Gratus Capital, says he expects the dollar to trend lower eventually as the Fed gets closer to cutting rates.
Persons: Jerome Powell, Christine Lagarde, Quincy Krosby, , Neel Kashkari, Todd Jones, Jones, Anna Cooban, Richard Meade, Janet Yellen, Alicia Wallace, Yellen, ” Yellen Organizations: CNN Business, Bell, New York CNN, Swiss, Canadian, Federal Reserve, European Central Bank, LPL, Treasury, Minneapolis, Gratus, Fed, Hamas, Lloyds, CNN, Banking Committee Locations: New York, Swedish, Iran, Suez, Asia, Europe
That’s added as much as two weeks to a typical East-to-West journey for container ships, and 18 days for slower bulk carriers and tankers. Global container shipping costs are less than half their level during the coronavirus pandemic, which peaked at $10,380 in September 2021. Even so, he said, container shipping is “very cost-effective” as many goods can be packed into a single shipping container. The Galaxy Leader cargo ship is escorted by Houthi boats in the Red Sea on November 20, 2023. Fewer oil tankers have avoided the Red Sea than container ships, which the Houthi militants more closely identify with Western countries allied with Israel.
Persons: Richard Meade, Tesla, Peter Sand, Good Hope, That’s, , Lloyd —, , ” Simon MacAdam, ” Maersk, Meade Organizations: London CNN —, Hamas, Lloyds, CNN, Maersk, Hapag, Carriers, Global, Container, Capital Economics, Organisation for Economic Co, Development, Galaxy Leader, Houthi Military Media, Reuters Locations: Iran, Suez, Asia, Europe, Germany, Swedish, Africa, South Africa’s, Good, Sand, Vietnam, Drewry, Shanghai, China, Rotterdam, Netherlands, Xeneta, Israel, United States, Canada
FRANKFURT, Germany (AP) — Missiles and drones are flying in the Red Sea, disrupting one of the world's key trade arteries and a chokepoint for energy shipments headed for Europe. Last year, 12.9% of Europe's LNG went through the Red Sea from suppliers in the Middle East, mainly Qatar. That means “an extended shut-in of the Red Sea route from the Middle East poses a supply risk to Europe,” said Kaushal Ramesh, vice president at Rystad Energy. So far, there's been little to no impact on natural gas prices. Europe is getting a break because demand for natural gas is weak amid a sluggish economy.
Persons: Yemen's Houthi, it's, , Kaushal Ramesh, there's, ” Rystad's Ramesh, Simone Tagliapietra, Tagliapietra, Biden, Vladimir Putin, Joe Biden, Jennifer Granholm, Eurogas, Tagliapeitra, Claudia Kemfert, ___ Daly Organizations: Missiles, Union, SEA, Italy's, Europe's, Rystad Energy, WHAT'S, Energy, Industry, German Institute of Economic Research, Leuphana University Locations: FRANKFURT, Germany, Red, Europe, Italy, Russia, Ukraine, Mandab, Israel, U.S, Yemen, Africa, Suez, Qatar, China, Norway, Azerbaijan, Brussels, Iran, Hormuz, Persian, That's, , Asia, ” U.S, USA, EU, Washington
Oil edges up on smaller US output growth estimates
  + stars: | 2024-02-07 | by ( ) www.cnbc.com   time to read: +1 min
A pump jack at an oil lot connected to the Petroleos del Peru SA Talara refinery in Piura, Peru, on Wednesday, Dec. 13, 2023. Oil prices ticked higher on Wednesday, as growth in U.S. oil production is expected to remain largely steady through 2025, easing worries of excess supply. The EIA also cut its forecast for domestic oil output growth in 2024 by 120,000 barrels per day (bpd) to 170,000 bpd, sharply lower than last year's output increase of 1.02 million bpd. U.S. government data on oil inventory will be released later on Wednesday. U.S. crude stocks are expected to have risen 1.9 million barrels in the last week as production recovered from a cold freeze and refiners started maintenance.
Organizations: del, del Peru SA Talara, Brent, U.S, West Texas, U.S . Energy Information Administration, EIA, Hamas, Traders Locations: del Peru, Piura, Peru, ., U.S, Israel, Gaza, Iranian, Suez, Asia, Europe
DUBAI (Reuters) - The leader of Yemen's Iran-aligned Houthis said on Tuesday that the group will further escalate if the Israeli attack on Gaza does not stop. The Houthis, who control Yemen's capital and most populous areas, have attacked international shipping in the Red Sea since November in what they say is solidarity with Palestinians, drawing U.S. and British retaliatory strikes since last month. The attacks are disrupting maritime trade in one of the world's busiest corridors as freight firms reroute around the Cape of Good Hope to avoid the Suez Canal. The group fired naval missiles at two ships in the Red Sea on Tuesday, its military spokesman said, causing damage to Greek-owned Star Nasia and British-owned Morning Tide. War in Israel and Gaza View All 194 ImagesSpokesman Yahya Sarea identified the Greek-owned, Marshall Islands flagged Star Nasia as American.
Persons: Yemen's, Houthis, Abdul Malik al, Houthi, Yahya Sarea, Ahmed Elimam, Nayera Abdallah, Peter Graff Organizations: Reuters, Tide, Marshall Islands Locations: DUBAI, Yemen's Iran, Gaza, Red, Suez, Israel, India
watch nowElevated shipping costs as a result of ongoing tensions in the Red Sea could impede the global fight against inflation, the Organisation for Economic Co-operation and Development said Monday. The Paris-based group estimates that the recent 100% rise in seaborne freight rates could increase import price inflation across its 38 member countries by nearly 5 percentage points if they persist. That could add 0.4 percentage points to overall price rises after a year, the OECD said in its latest economic outlook. Clare Lombardelli, chief economist at the OECD, told CNBC on Monday that a sustained increase in inflation as a result of the latest crisis is a risk, but not the group's base case. "It's something we're watching closely ... we have seen an increase in shipping prices, if that were to continue for for an extended period, then that would feed through into consumer price inflation.
Persons: Ahmed Gomaa, Clare Lombardelli, Lombardelli, Tiemen Meester, it's, Meester Organizations: Organisation for Economic Co, Development, OECD, Xinhua News Agency, Getty, CNBC Locations: Paris, Suez, Europe, Asia, Iran, Yemen, United States, Ismailia Province, Egypt, Good, Africa, Dubai
A broadcaster affiliated with Hamas, Al-Aqsa, reported on Sunday that Hamas was still holding consultations on the proposal, a week after it was formulated. Leaders of the group had previously signaled that substantial gaps remained between the two sides, even as representatives from the United States, Egypt and Qatar sought common ground. Mr. Blinken, who was set to visit Saudi Arabia first, is hoping to advance talks on a series of interlocking deals to end the war in Gaza, and a deal for a hostage release will be central to that effort. Other Iran-backed militants have launched attacks against U.S. bases in the region, including one recently that killed three U.S. soldiers in Jordan. Top U.S. national security officials said on Sunday that further retaliation against Iran-backed militias was still planned.
Persons: Israel, Antony J, Blinken, Jake Sullivan, CBS’s, , “ We’re, Mr, Sullivan, Jordan, , NBC’s “ Organizations: Hamas, U.S, United, Iranian, Top U.S, Press Locations: Gaza, Al, United States, Egypt, Qatar, Saudi Arabia, court, Israel, East, Lebanon, Yemen, Suez, Iran, Jordan, Syria, Iraq
Recent attacks on commercial ships in the Red Sea by the Iranian-backed Houthi militia have forced companies to pay higher insurance rates or reroute goods around Africa, adding costs and delays that could put a dent in companies’ profit margins and, ultimately, push up prices for consumers. Many executives whose companies ship goods through the Red Sea and Suez Canal have said the impact so far has been limited, in part because of lessons they learned from the more severe, worldwide supply chain disruptions during the worst of the Covid pandemic. “Moving forward, disruption will hit companies,” said David Simchi-Levi, a professor at the Massachusetts Institute of Technology. “Today it is the Red Sea, tomorrow it will be something else.”The attacks in the Red Sea, which handles about 12 percent of global trade, have forced companies to make tough decisions. Going through the Red Sea would mean risking an airborne strike, and paying more for insurance.
Persons: , David Simchi, Levi Organizations: Massachusetts Institute of Technology, Locations: Red, Iranian, Africa, Suez
Yemen's Houthis Vow Response After US, British Strikes
  + stars: | 2024-02-04 | by ( Feb. | At A.M. | ) www.usnews.com   time to read: +6 min
The group's military spokesperson Yahya Sarea said the U.S. strikes "will not pass without a response and consequences." HOUTHIS SAY WON'T BE DETERREDThe Houthis, who control swathes of Yemen, say their attacks are in solidarity with Palestinians as Israel strikes Gaza. The strategy blends limited military strikes and sanctions, and appears aimed at punishing the Houthis while attempting to limit the risk of a broad Middle East conflict. "We have already successfully targeted launchers and storage sites involved in Houthi attacks, and I am confident that our latest strikes have further degraded the Houthis’ capabilities." The United States said Sunday's strikes had support from Australia, Bahrain, Canada, Denmark, the Netherlands and New Zealand.
Persons: Phil Stewart, Idrees Ali, Mohammed Ghobari WASHINGTON, Yahya Sarea, Mahjoob Zweiri, Joe Biden, Sarea, Grant Shapps, Sunday's, Badr bin Hamad bin Hamoud, Busaidi, Andrew Mills, Tom Perry, Hugh Lawson Organizations: Reuters, Britain, Pentagon, Hamas, Residents, Islamic Revolutionary Guard Corps, Gulf Studies, Qatar University, U.S, Republicans, Democrat, U.S . military's Central Command, British Defence, U.S . Central Command, Oman Foreign, Tala Locations: ADEN, United States, Yemen, Iran, Palestinian, Israel, Gaza, Tehran, Houthi, U.S, Jordan, Iraq, Syria, Lebanon, Britain, Africa, Egypt, Suez, Red, States, Australia, Bahrain, Canada, Denmark, Netherlands, New Zealand, Sanaa Governorate, Taiz Governorate, Hodeidah Governorate, Oman, Doha, Dubai
Image Pro-government Iranians gathering near a banner that warns Iran’s enemies — in Farsi and in Hebrew — to “Prepare your coffins,” this month in Tehran. Credit... Arash Khamooshi for The New York TimesIran projects its military power through dozens of armed groups across the Middle East, but how much does it control their actions? Iranian rhetoric, echoed by its allied groups, often goes further, calling for the elimination of the Israeli state. A 2020 U.S. Department of State report estimated that Iran’s support for Hezbollah was $700 million annually at that time. They’re not Iran’s stooges.”Much the same could be said of other groups.
Persons: , Arash Khamooshi, Israel, Michael Knights, Hisham al, , Mohammed al, Sulami, , Vivian Nereim Organizations: Pro, The New York Times, United States, Sunday, U.S, Pentagon, Iranian Revolutionary Guards, . Department of State, Washington Institute, AK, United Nations Locations: Tehran . Credit, The New York Times Iran, United, Iranian, Jordan, Tehran, Iran, Lebanon, Syria, Iraq, Yemen, U.S, Eastern, Suez, United States, Israel, Yemeni, Saudi Arabia, Islamic Republic
Yemen's Houthi followers take part in a tribal parade held against the United States-led aerial attacks launched on sites in Yemen, and solidarity with Palestinians, on January 22, 2024, near Sana'a, Yemen. The Defense Department said the strikes targeted sites associated with the Houthis' deeply buried weapons storage facilities, missile systems and launchers, air defense systems and radars. Saturday's strikes marked the third time the U.S. and Britain had conducted a large joint operation to strike Houthi weapon launchers, radar sites and drones. Iran has tried to distance itself from the drone strike, saying the militias act independently of its direction. Mosawi said the targeted sites in Iraq were mainly "devoid of fighters and military personnel at the time of the attack."
Persons: Yemen's, Dwight D, Lloyd Austin, Eisenhower, Carney, Hope, Bab, Jordan, Hussein, Mosawi, Rami Abdurrahman, Bassim, Awadi Organizations: Iranian Revolutionary Guard, Eisenhower, USS Carney, Associated Press, Defense Department, U.S, Human Rights, Islamic, Iraq, Israel Locations: United States, Yemen, Sana'a, Britain, Iran, Israel, Iraq, Syria, Jordan, U.S, Gulf of Aden, Australia, Bahrain, Canada, Denmark, Netherlands, New Zealand, Washington, Tehran, Sanaa, SABA, al, Gulf, Aden, Africa, Suez, Mandeb, Iranian, Baghdad, Gaza, Iraqi
Worldwide, the autonomous ships market reached $4.13 billion in 2022, and is forecasted to grow to $10.1 billion in 2032, according to Emergen Research . Avikus said this journey marked the first time autonomous navigation successfully enabled a large vessel to complete a trip over 10,000 kilometers. HiNAS 2.0 deployed a level-three autonomous navigation system, meaning that human intervention is only deployed in an emergency situation. The success of the HiNAS 2.0 and Prism Courage journey marked a foray into greater commercialization and implementation of autonomous ship navigation technology. The company is aiming for its fully autonomous ship technology to reach full-scale commercialization by 2025.
Persons: Patrick Ryan, Covid, Courage, Avikus, Carol Schleif, Rudy Negenborn, — Ryan, Ryan, BMO's, Morgan Stanley, Ravi Shanker, Shanker, Hunt, C.H, Robinson, Negenborn Organizations: Research, American Bureau of Shipping, Hyundai, Yara International ASA, Yara, BMO Family, Delft University of Technology, Moeller, Maersk, Yara International, Mitsui, Mitsui O.S.K, Royce, Shipbuilders, Expeditors International Locations: Covid, Avikus, Freeport, of Mexico, Panama, Korea, Red, Suez, U.S, Danish, American, ADRs, Japan
Trump Would Not Reappoint Powell as Fed Chief
  + stars: | 2024-02-02 | by ( Feb. | At A.M. | ) www.usnews.com   time to read: +2 min
(Reuters) - Former President Donald Trump said he would not reappoint Federal Reserve Chair Jerome Powell if Trump wins this year's presidential election, the Republican frontrunner told Fox Business in an interview aired Friday. "No I wouldn't," Trump said in response to a question on whether he would reappoint Powell, whose second four-year term as chair will expire in 2026. Trump said he believes Powell is going to lower interest rates to help President Joe Biden's prospects for re-election. "I think he’s going to do something to help the Democrats, if he lowers interest rates,” Trump said. Biden, a Democrat who beat Trump in the 2020 White House race, reappointed Powell to a second term in 2021.
Persons: Donald Trump, Jerome Powell, Trump, reappoint Powell, Powell, Joe Biden's, ” Trump, Biden, Dan Burns, Doina, Chizu Nomiyama Organizations: Reuters, Trump, Republican, Fox Business, White, Fed Locations: U.S, Iranian, Suez, Asia, Europe, South Africa
Energy prices fell 6.3%, contributing to the drop in inflation in the 20 European Union countries that use the euro currency. Inflation has fallen steadily as the ECB rapidly raised interest rates, the typical antidote to out-of-control price increases. Inflation decreased to 3.1% in Germany, Europe’s biggest economy, down from 3.8% in December and the lowest since June 2021. The decline in inflation has unleashed speculation that the European Central Bank could start cutting interest rates as early as April. And European growth could use a boost.
Persons: Christoph Swonke, Organizations: European Union, Energy, Union, European Central Bank, ECB, DZ Bank, Bank of England, U.S . Federal Reserve Locations: FRANKFURT, Germany, Europe’s, France, Europe, Iranian, Yemen, Africa, Suez, Israel, U.S
Since mid-November the rebels have been attacking commercial ships in the Red Sea and the Strait of Bab al-Mandab. The Red Sea is a vital waterway that connects to the Suez Canal, through which 10% to 15% of world trade passes. In its fight, the Houthi group has distracted from Yemen’s humanitarian crisis, shored up domestic and international support, and made its name known among those who knew little to nothing about the movement, they say. That narrative has taken hold among those who oppose the Gaza war the world over. Yemen’s civil war began in 2014, when Houthi forces stormed the capital Sanaa and toppled the internationally recognized, Saudi-backed government.
Persons: Abdel Malek al, Houthi, , Allah, Thomas Juneau, ” Juneau, , Ahmed Nagi, Juneau, Israel, , Biden, Netanyahu, ” Mohamed Ali al, Nagi, ” Nagi, ” Mohammed Ali Al, Yemen's Houthi, ” “ Houthis, Nadwa, Yemenis, ” Dawsari Organizations: CNN, Hamas, Hezbollah, Yemeni, Graduate School of Public and International Affairs, University of Ottawa, Canada’s Department of National Defense, Yemeni Armed Forces, European Union, NATO, United, Crisis, UN, BBC, Political Council, Galaxy Leader, Getty, Middle East Institute Locations: Constantinople, Istanbul, United States, Saudi, Israel, Gaza, Bab, Suez, Iran, China, India, Tehran, Iraq, Jordan, Yemen, Red, Solidarity, Aden, Instagram, US, United Kingdom, Brussels, Saudi Arabia, tatters, Yemen's province, Hodeida, AFP, America, Washington ,
ROME (Reuters) - Ongoing disruption in the Red Sea threatens to destabilise Italy's economy and marginalise ports in southern Europe, Italy's defence minister said on Thursday. "From a geopolitical perspective, the continuing of this situation could lead to the marginalisation of ports on the Mediterranean Sea," Defence Minister Guido Crosetto told lawmakers from parliament's defence committees. "Not only does it threaten the security of navigation but also (Italy's) economic stability". The minister said that commercial traffic through the Suez Canal -- which he estimated to represent some 40% of Italy's total maritime trade -- had dropped by 38% by the last week of 2023. Navigation times increased by 10-12 days and costs increased almost five-fold, he added.
Persons: Guido Crosetto, Crosetto, Giulia Segreti, Keith Weir Organizations: " Locations: ROME, Europe, Iran, Yemen, South Africa, Suez, Israel, Gaza, Aspides, Italy
And — while it only represents a very small proportion of containers moved between the Far East and Europe — rail routes via Russia have seen an uptick in interest too. Rail through RussiaFirms have raised concerns about sending goods via rail through Russia, Sciglaite said. A train engine pulls carriages that started their journey in Yiwu, China into Barking rail freight terminal on January 18, 2017 in the U.K. Igor Tambaca, managing director of Rail Bridge Cargo, a Dutch logistics company, said China-Europe rail route bookings were up 37% over the past four weeks. Tambaca said the cost of sending one forty-foot container (FEU) from China to Europe via rail is currently around $7,900.
Persons: Liu Wenhua, Julija, RailGate, Hapag Lloyd, Sciglaite, Dan Kitwood, Igor Tambaca, Tambaca, Maria Magdalena Pavitsich, Pavitsich, Vladimir Putin, Davies Turner Organizations: China News Service, Getty, Air, CNBC, Rail, Cargo, OBB Rail Cargo Group, FEU, Initiative, British Locations: China, Europe, Russia, Manzhouli, Vietnam, Xeneta, East, European, Rotterdam, South Africa's, Ukraine, Yiwu, Barking, Kazakhstan, Belarus, Poland, Germany, Belgium, France, Red, Dutch, Turkey, Austrian, Asia, Xian, Chengdu, Suez, Africa, Moscow, Central Siberia, Beijing, Wuhan, Duisburg
But with practically all of Wall Street in agreement that no changes will be made, investors are focused on Fed Chair Jerome Powell’s afternoon press conference where he’ll answer questions about his outlook for monetary policy. Conflict in the Middle East and the Red Sea in particular “poses a risk to global trade,” said EY Senior Economist Lydia Boussour on Tuesday. That’s a huge blow to trade: As much as 15% of global trade and 25%-30% of global container shipments transit through the waterway. “For now, we don’t expect the situation in the Red Sea to substantially alter the outlook for global inflation and global monetary policy this year,” said Boussour. The company reported earnings per share of $2.93, beating Wall Street expectations of $2.79.
Persons: Jerome Powell’s, Powell isn’t, we’ve, ” Johns, Laurence Ball, Kevin Gordon, Charles Schwab, Gordon, , There’s, Jay Powell, CNN’s Arlette Saenz, Joe Biden, , Brent, EY, Lydia Boussour, “ We’ve, Satya Nadella Organizations: CNN Business, Bell, New York CNN, Federal Reserve, ” Johns Hopkins, , Commerce Department, West Texas Intermediate, International Monetary, Microsoft, Revenue Locations: New York, East, Europe, China, Jordan, Gaza, Suez, Iran
It tells CNBC that rates on ocean routes from Asia to Europe and the Mediterranean are beginning to decline, but for U.S.-bound trade, prices are still climbing. Rates for cargo headed to the U.S. are still risingBut for U.S companies, while some have negotiating leverage, shipping rates are not seeing any reprieve. According to Sand, rates for the trade route from the Far East to the U.S. East Coast are still heading higher. "Everyone is accusing everyone at the moment, which is normal during situations when there is so much uncertainty in the market," Sand said. "Ocean freight carriers did not invent this crisis and it takes time for them to put in new shipping networks to deal with the disruption caused by diverting away from the Suez Canal."
Persons: February's GRIs, Emily Stausbøll, Peter Sand, Sand Organizations: CNBC, Logistics, U.S . Locations: Xeneta, Asia, Europe, North Europe, Sand, U.S . East Coast, Suez
CNBC's Jim Cramer on Wednesday suggested railroad stocks may be starting to climb. "Boy is that terrific for the West Coast operators, and there you're thinking about Union Pacific and Canadian Pacific Kansas City." Cramer reviewed earnings reports from Union Pacific , Canadian Pacific Kansas City , CSX and Norfolk Southern , saying all except the latter have potential. Canadian Pacific Kansas City saw the largest volume growth of the bunch. If investors feel confident about the economy, they have Cramer's "blessing to stick with Union Pacific, Canadian Pacific, or CSX — in that order, by the way — and forget about Norfolk Southern for the moment."
Persons: CNBC's Jim Cramer, Cramer, we've, — you've Organizations: West Coast, Union Pacific, Canadian Pacific, Canadian Pacific Kansas City, Norfolk, Pacific's, Canadian, CSX, Norfolk Southern Locations: Yemen, Red, West Coast, Suez, East Coast, Canadian Pacific Kansas, Canadian Pacific Kansas City, CSX, Canadian Pacific, Ohio
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 29, 2024. One is energy prices — will the trouble in the Middle East be a transmission into higher energy prices, or the war in Eastern Europe? Not really, if you look at how energy prices have developed," he told CNBC's "Squawk Box Europe" on Tuesday. watch nowHe added that markets had "gotten used to trouble in geopolitics" over the last five years, so the impact on asset prices of any further bad news would be somewhat limited. Wittmann acknowledged that risk, but remains bullish about broader upside potential in stocks.
Persons: Brendan Mcdermid, Beat Wittmann, Wittmann, CNBC's Organizations: New York Stock Exchange, Porta Advisors, Federal Reserve, Fed Locations: New York City, U.S, Eastern Europe, Covid, Suez, Israel, Ukraine
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