Wells Fargo News

The U.S. trade deficit surged to a record high in 2021 as imports increased sharply amid the restocking of shelves by businesses to meet robust domestic demand.The sharp widening in the trade gap reported by the Commerce Department on Tuesday mostly reflected a shift in spending towards goods from services during the COVID-19 pandemic. With businesses eager to rebuild depleted inventories against the backdrop of stretched global supply chains, the deficit is unlikely to shrink much this year…

The U.S. trade deficit jumped to a record high in March amid roaring domestic demand, which is drawing in imports, and the gap could widen further as the nation's economic activity rebounds faster than its global rivals.Manufacturers lack the capacity to satisfy the surge in demand because of resource constraints and bottlenecks in the supply chain. Inventories are very lean. Demand is being driven by a rapidly improving public health situation and massive government aid to households…

The inland waterway system, flowing through the United States heartland, is a microcosm of all that has been happening in 2020: trade tensions, infrastructure issues, shifting trends in fuel consumption and the pandemic that has gripped us since the winter months. Shortly after the initial coronavirus outbreak here in the U.S., maritime workers were deemed to be “essential”, paving the way for cargo flows to recover from their springtime nadir. As COVID-19 infections turned up on U.S. shores, the boats continued plying the waterways, albeit with reduced volumes in some cases.

Global trade tensions have captured headlines in recent months, as the imposition of a series of tariffs and counter-tariffs by various global trade counterparts has raised questions about the possibility of a trade war. Such development could potentially have an impact on global trade flows, and, consequently, the companies which facilitate international movement of goods.Though the situation is still developing and the final impact is uncertain, Gregory Draco, the Chief U.S. Economist at Oxford, predicted in July that the tariffs would create an 0.1 percent to 0.2 percent drag on U.S. GDP.

Port of Corpus Christi successfully priced and sold $216.2 million of Senior Lien Revenue Bonds. These bonds will be used for both the deepening and widening of the Corpus Christi Ship Channel as well as upcoming capital projects within the Port.Wells Fargo Securities acted as Lead Manager of a syndicate of underwriters including JP Morgan, Citigroup, and Frost Bank.“We are pleased with the level of interest the institutional investment community demonstrated for both series of our bonds.” said Sean Strawbridge, CEO of the Port of Corpus Christi. “This round of funding will help the Port of Corpus Christi further progress our ambitious…

Port officials on Tuesday are expected to consider $300 million in financing that would prepare the country's largest oil-export port - Corpus Christi, Texas - to handle a surge in U.S. shale production over the next five years.International buyers would like more U.S. crude but are unable to get it because of infrastructure constraints along the U.S. Gulf Coast. Terminals originally designed for imports only recently have revamped operations to handle exports including accepting…

US manufacturer of recreational boats Malibu Boats has announced the pricing of the follow-on offering of 2,000,000 shares of the Company's Class A Common Stock at a price to the public of $25.25 per share. The offering is expected to close on or about August 14, 2017, subject to customary conditions. The Company has granted the underwriters an option for a period of 30 days to purchase up to an additional 300,000 shares of the Company's Class A Common Stock. If exercised, all additional shares will be offered at the public offering price per share of Class A Common Stock in the offering. The Company intends to use all of the net proceeds from this offering to repay amounts outstanding on the term loans of Malibu Boats, LLC, the Company's wholly owned subsidiary.

USD 100 per barrel oil  is but a “pipe dream,” Wells Fargo said in a new investor note, reports MarketWatch. The report quoted Wells Fargo’s John LaForge saying that he’s doesn’t expect oil prices to climb anywhere near $100 a barrel over the next few years. Barrels price will bounce between $30 and $60 in the coming years, according to top bank’s diagnosis. “We continue to hear that big cutbacks are on the cusp of happening,” he said. “The evidence, however, implies otherwise. Shale production has caused American output to stand higher than it did in 2014, before the oil price crisis began. Wells Fargo data shows current production at 15.5 million barrels per day, compared to 14 million bpd three years ago.

A coastal Oregon county overwhelmingly rejected a ballot measure aimed at blocking a proposed natural gas terminal dealing a blow to what was the latest in a series of efforts to thwart energy projects across the Pacific Northwest. The measure, had it passed, would have banned transport of fossil fuels not intended for local use through Coos County, located about 200 miles (322 kms) south of Portland. Around 76 percent of votes were cast against the measure, with 24 percent in favor, according to unofficial results posted on the Coos County government website late Tuesday. "This ballot measure was not a good measure by any means, and I think (the voters) were able to see that," Coos Bay's mayor Joe Benetti, who opposed the measure, told local newspaper The World.

A coastal Oregon county will vote Tuesday on a ballot measure to block a proposed natural gas terminal, the latest in a series of efforts to thwart energy projects across the Pacific Northwest. The measure would ban transport of fossil fuels not intended for local use through Coos County, located about 200 miles (322 kms) south of Portland. Backers have called the initiative a response to a $7.6 billion proposal by Calgary-based Veresen Inc, to build a facility in the county where natural gas would be liquefied and transferred to tanker ships for sale abroad. They have cast the measure as a local refusal to contribute to global warming. Should the ban pass, it could bring the county into conflict with the administration of President Donald Trump.

A new report from the Washington Maritime Federation shows strong health of industry, increased average salaries and tremendous opportunity to continue to grow maritime jobs. The Washington State Maritime Sector Economic Impact Study 2017 Update, released at the April 2017 Propeller Club luncheon, updates the seminal 2013 study of the same name and provides a detailed analysis of the positive economic impact of the state’s maritime industry. “This study builds upon past efforts and clearly shows the maritime industry is a cornerstone of the State’s economy…

Diana Shipping, a global shipping company specializing in the ownership of dry bulk vessels,  announced that it has priced its previously announced underwritten public offering of 17,500,000 common shares, par value US$0.01 per share, at a price of US$4.00 per share. The Company has granted the underwriters an over-allotment option for a period of 30 days from the closing of this offering to purchase up to an additional 2,625,000 shares of common stock at the public offering price, less underwriting discounts. As part of the offering, entities affiliated with Simeon Palios, the Company’s Chief Executive Officer and Chairman, executive officers and certain directors, have agreed to purchase an aggregate of 5,500,000 common shares at the public offering price.

Some positive market indicators could presage an investment revival in the U.S. Gulf of Mexico – and beyond. The good news, reported by Bloomberg, is that in the third quarter of 2016, the largest oil companies increased cash from operations by nearly $26 billion. This reflects a 67 percent increase from the previous quarter and more than twice the amount of the first quarter of 2016. Exxon Mobil, Royal Dutch Shell, Chevron, Total and BP indicated that the increase was due to lower spending, increased output and rising crude prices, although the numbers were still below last year’s numbers.

Huntington Ingalls Industries (NYSE:HII) announced today that it has completed its previously announced acquisition of Camber Corporation and formed a new operating division, HII Technical Solutions. The new division will be led by Andy Green, who will serve as an executive vice president of HII and president of HII Technical Solutions, reporting directly to HII President and CEO Mike Petters. “The acquisition of Camber and the consolidation of our existing service businesses into a dedicated division provides the breadth and scale necessary to successfully pursue numerous growth opportunities,” Petters said. “Camber brings a broad array of capabilities to the HII team, and we are excited about the possibilities of growing the combined businesses.

The buzzword for the post-Brexit landscape both in Europe and further afield is ‘uncertainty’. No-one really knows the long term effect that Brexit will have on local and global economies, says  Eversheds International. However, as the dust settles following the referendum, market experts, industry analysts and businesses are assessing the position with cooler heads and so, whilst certainty may be a little way off, more concrete predictions and assertions of intent are beginning to emerge. This is evident daily in commentary and news from the shipping and sea trade sector. The international shipping market is fuelled by trade, which in turn depends on the health of the global economy.

International accountant and shipping adviser Moore Stephens says the shipping industry must adopt a transparent, proactive approach to corporate governance or else risk exposure to business and reputational damage. Corporate governance in shipping has been in sharp focus recently, particularly following publication of the research by Wells Fargo Securities into Shipping’s Corporate Governance War. Robert Noye-Allen, a partner in the Moore Stephens Governance Risk & Assurance team, says, “Businesses in today’s shipping industry are expected to fully comprehend the implications of inadequate management of conflict of interest arrangements, and to recognise the importance of independent directorship.

The Port of Hueneme launched the second phase of its Grid-Connected Shore Power System, celebrating another next step forward in reducing air emissions and minimizing environmental impact. Among the community leaders attending the ribbon cutting were Congresswoman Julia Brownley, County Supervisor Kathy Long, Ms. Sabiha Khan with Senator Dianne Feinstein’s office, Port Hueneme Mayor Douglas Breeze, and VCTC chairman Keith Millhouse. By connecting to the Port’s Grid-Based Shore Power System, refrigerated cargo vessels calling the Port can shut down their auxiliary marine engines and operate on shore power in lieu of diesel fuel dramatically reduce greenhouse gas emissions.

The U.S. dollar rose to a three week high against the yen on Friday, on a report of likely further monetary policy easing from the Bank of Japan, while a rise in crude oil prices was offset by poor technology sector earnings, leaving Wall Street stocks steady. The dollar rose more than 2.0 percent against the yen to 111.80 yen, its highest level since April 1 after a media report said the BOJ is considering expanding its negative rate policy to bank loans and could cut rates further. A rise in oil prices helped energy stocks, but disappointing earnings from top technology companies, including Google's parent, Alphabet, weighed on the tech sector on Wall Street, leaving the U.S.'s benchmark S&P 500 stock index little changed for the day.

Iran is slowly winding down stocks of oil stored on tankers close to its shores and the process is likely to take longer than Tehran had wanted, despite the lifting of international sanctions this month. The pace of sales taken from floating storage highlights the difficulties Iran is facing amid a global oil glut and other challenges such as the certification of its fleet. Iran parked over 40 million barrels of crude and condensate, a very light grade of crude, on 20 to 25 ships after Western sanctions were imposed over its nuclear program. The sanctions stopped most countries from buying Iranian oil in recent years. Most of the ships storing oil are run by Iranian tanker operator NITC.

U.S. import prices fell in February for an eighth straight month, weighed down by declining costs for petroleum and a range of other goods, but the pace of decline is slowing as the dollar's rally fades and oil prices stabilize. The Labor Department said on Friday import prices slipped 0.3 percent last month after a 1.0 percent decrease in January. Import prices have decreased in 18 of the last 20 months, reflecting a robust dollar and plunging oil prices. They were down 6.1 percent in the 12 months through February, the smallest year-on-year drop since December 2014.

Wells Fargo Securities says that headwinds face global shipping industry and the continued overcapacity means freight rate gains are less likely to stick. "Given the continued overcapacity headwinds and easing containerized trade demand, we believe these freight rate gains are less likely to stick, and we expect rates to remain under pressure as we approach the slack winter season, particularly following a muted peak season," says a report from Wells Fargo Securities, written by Michael Webber that appeared in the Forbes. Container Freight Rates Get Boost Amid November General Rate Increases, Will They Stick? Last week, the Shanghai Containerized Freight Index (SCFI) increased by 41.1% wk/wk (week-over-week) to $759/TEU (twenty foot equivalent unit)…

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, spiralled downwards to its lowest level in nearly three decades as rates for all the four vessel types continued to flounder. The overall index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser, was down 34 points, or 5.11 percent, at 632 points, the lowest since August 1986. The index is also seen by investors as an indicator of global industrial activity. Brokers said the dry bulk market was expected remain in the doldrums due to weak commodity demand at present especially from top global importer China.

Oilfield services company Halliburton's proposed $35 billion acquisition of rival Baker Hughes Inc will likely close in 2016 instead of this year as talks with U.S. regulators continue, a Halliburton executive said on Wednesday. The companies have already agreed to divest $5.2 billion in overlapping businesses to quell concerns the merger would lead to higher prices and less innovation. "Currently we are having substantive discussions with the (Department of Justice)," Christian Garcia, Halliburton's acting chief financial officer told Wells Fargo's Energy Symposium. Garcia said the companies were confident that the deal would be approved. Halliburton is "finalizing negotiations" with buyers for the drilling businesses it first announced it would divest, Garcia said.