FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: China, US Agree Against Strait of Hormuz Tolls, US State Department Says

By

Senior Chinese and U.S. officials have agreed that no action should be permitted to impose shipping tolls in the Strait of Hormuz, Reuters reported Tuesday, citing the U.S. State Department.

Chinese Foreign Minister Wang Yi and U.S. Secretary of State Marco Rubio reportedly discussed the issue during a phone call in April.

"They agreed that no country or organization can be allowed to charge tolls to pass through international waterways like the Strait of Hormuz," State Department spokesman ​Tommy Pigott was quoted by Reuters as saying.

The Chinese embassy in Washington did not dispute the U.S. account, with embassy spokesperson Liu Pengyu telling Reuters that "[k]eeping the area safe and stable and ensuring unimpeded passage serves the common interest of the international community."

The statements came as U.S. President Donald Trump heads to China for the first time in over nine years for a high-stakes summit with Chinese President Xi Jinping.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Asia

Market Chatter: Shiseido Shifts Raw Material Strategy Amid Petrochemical Shortages

Shiseido (TYO:4911) is considering replacing oil-derived materials with plant-based alternatives as disruptions linked to the Middle East conflict strain global supply chains for skincare and beauty products, Bloomberg reported Tuesday.The company said shortages of petroleum-based naphtha could affect key ingredients used in moisturizers, makeup and other cosmetics. It is reviewing its supplier network and exploring alternative raw materials to reduce dependence on petrochemical inputs, according to the report.CEO Kentaro Fujiwara said the company is preparing for adverse scenarios while adjusting operations, estimating a 5 billion yen impact on core operating profit this fiscal year due to higher input and logistics costs and weaker regional sales, the report said.Despite these pressures, Shiseido reported first-quarter core operating profit of 13 billion yen, above analyst expectations, supported by cost controls and internal restructuring, according to the report.The company also plans to shut its Hsinchu plant in Taiwan in the second half of 2027, a move expected to reduce fixed costs by about 1 billion yen annually.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$TYO:4911
Asia

Zip Says High Court Rules It Must Stop Using Zip Trademark in Australia, Shares Down 7%

Zip (ASX:ZIP) said the High Court of Australia has delivered judgment in trade mark infringement proceedings brought by Firstmac, requiring Zip and its units to cease using the Zip trademark in Australia in relation to its products and services within 28 days, according to a Wednesday Australian bourse filing.The company said the decision does not impact its US business, which represents about 80% of divisional cash earnings, or its New Zealand business, with no change in the use of the Zip brand by either business, the filing added.Firstmac is a private non-bank Australian lender that offers a product named ZIP Home Loan, the loan provider's website showed.The company's shares fell 7% in recent Wednesday trade.

$ASX:ZIP
Asia

Market Chatter: NYK Line Eyes Fleet Expansion as Oil Trade Shifts Away from Middle East

Nippon Yusen Kabushiki Kaisha (TYO:9101) (NYK Line) is weighing an expansion of its tanker fleet as energy flows gradually shift away from the Middle East toward longer-haul routes, Nikkei reported Wednesday.CEO Takaya Soga said oil import patterns are being reassessed across the industry as geopolitical tensions expose risks tied to heavy reliance on the Strait of Hormuz. He said the shift in sourcing is likely to persist even if shipping routes through the region stabilize, according to the report.A move toward crude supplies from regions such as the United States and Africa would lengthen transport distances, increasing demand for very large crude carriers. NYK Line is considering adding such vessels to its fleet to capture the expected rise in shipping volumes, the report said.The company said earlier this week it expects a decline in annual profit, assuming disruptions in the Strait of Hormuz continue into mid-year. Soga said prolonged blockage of the key shipping route would have wider global consequences, warning that an extended disruption could strain the world economy, according to the report.Beyond crude oil logistics, NYK Line expects companies across manufacturing and trade to increase inventories and diversify supply chains, reducing dependence on single transit routes, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$TYO:9101