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/

2025-10-10 20:47

Indexes down: Dow 1.90%, S&P 500 2.71%, Nasdaq 3.56% S&P 500, Nasdaq see biggest one-day pct drop since April 10 Indexes erase weekly gains Big Tech stocks add to losses in extended trading NEW YORK, Oct 10 (Reuters) - Wall Street slumped on Friday after U.S. President Donald Trump escalated his trade conflict with China after Beijing tightened its rare earth restrictions. Late on Friday after Wall Street's official trading session, Trump said he would impose an additional 100% tariff on imports from China, as well as export controls on critical U.S.-made software, an announcement that sent Big Tech shares tumbling. Sign up here. Nvidia, Tesla, Amazon and Advanced Micro Devices all fell more than 2% after the bell. Those losses added to already steep declines during Friday's trading session after Trump warned in a post on Truth Social earlier in the day that he was weighing a "massive" tariff increase on Chinese imports and said there is no reason to meet with China's President Xi Jinping in two weeks as planned, adding that there are "many other countermeasures" under consideration. Trump's latest move against China shocked markets and threatened further damage to already strained relations between the world's two largest economies. All three major U.S. stock indexes sold off sharply during Friday's session before stocks extended losses after the bell. The S&P 500 and the Nasdaq suffered their largest single-day percentage drops since April 10. On a weekly basis, the S&P 500 logged its biggest drop since May, while the Nasdaq's Friday-to-Friday decline was its steepest since April. "The second largest economy and the first largest economy are arguing again, and we're seeing a sell first, ask questions later mentality to end the week," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "President Trump's post did truly come out of nowhere, which opened the door for some extreme volatility." "And it's important to remember we haven't had this level of volatility in a long time," Detrick added. "One could argue we were due for some spookiness this October." Trump's erratic trade policies have rattled markets since his April 2 "Liberation Day" tariff announcement, with on-again, off-again trade negotiations, causing turbulence across asset classes. The Dow Jones Industrial Average (.DJI) , opens new tab fell 878.82 points, or 1.90%, to 45,479.60, the S&P 500 (.SPX) , opens new tab lost 182.60 points, or 2.71%, to 6,552.51 and the Nasdaq Composite (.IXIC) , opens new tab lost 820.20 points, or 3.56%, to 22,204.43. The Philadelphia Stock Exchange Semiconductor Index (.SOX) , opens new tab dropped 6.3%, in the wake of Trump's announcement. China produces over 90% of the world's processed rare earths and rare earth magnets, which are critical for products ranging from electric vehicles and aircraft engines to military radars. An escalating trade war between the two largest global economies could trigger major supply chain disruptions, particularly for the technology, electric vehicle and defense industries. The CBOE Volatility Index (.VIX) , opens new tab, viewed as a reflection of market anxiety, reached its highest closing level since June 19. U.S.-listed shares of Chinese companies dropped sharply, with heavyweights Alibaba Group Holding , JD.com Inc and PDD Holdings (PDD.O) , opens new tab down between 5.3% and 8.5%. Qualcomm (QCOM.O) , opens new tab fell 7.3% after China's market regulator said the country had launched an antitrust investigation into the semiconductor manufacturer over its acquisition of Israel's Autotalks. The U.S. government is currently in its 10th day of shutdown as a congressional impasse has so far yielded few signs of progress or serious negotiation. This has resulted in a data blackout, with official government economic indicators postponed for the time being. Still, data from independent sources continues unabated. The University of Michigan released its preliminary take on October consumer sentiment, which is drifting along near historic lows as high prices and weakening job prospects remain at the forefront of consumer worries. In the absence of official data, investors look to the U.S. Federal Reserve for clues regarding near-term interest rate cuts. Fed Governor Christopher Waller said that while private employment data continues to show labor market weakness, the central bank should act with caution when reducing the Fed funds target rate as it evaluates the economy. St. Louis Fed President Alberto Musalem echoed that sentiment, saying that another rate cut could be warranted as insurance against a weakening labor market. "I believe that we have to tread with caution" before monetary policy becomes too accommodative, he said. A spate of large financial firms - including 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 - is set to release quarterly results on Tuesday, marking the unofficial launch of third-quarter earnings season. Analysts currently expect third-quarter S&P 500 earnings growth of 8.8% year-on-year, on aggregate, compared with annual growth of 13.8% last quarter and 9.1% in Q3 2024, according to LSEG data. Declining issues outnumbered advancers by a 4.36-to-1 ratio on the NYSE. There were 215 new highs and 167 new lows on the NYSE. On the Nasdaq, 799 stocks rose and 3,936 fell as declining issues outnumbered advancers by a 4.93-to-1 ratio. The S&P 500 posted 18 new 52-week highs and 19 new lows while the Nasdaq Composite recorded 102 new highs and 145 new lows. Volume on U.S. exchanges was 24.26 billion shares, compared with the 20.15 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-index-futures-tick-up-ahead-consumer-sentiment-data-2025-10-10/