Latest Developments

Europe
DW Economy

US sanctions target Iran's rail sector as Tehran shifts cargo from sea routes to overland corridors

As US sanctions expand to Iran's rail sector, Tehran is relying more heavily on overland links with China and Central Asia. But capacity constraints, delays and costs limit rail's ability to replace maritime trade. In Iran, rail transport has become important for moving goods as businesses contend with sanctions, regional tensions and disruptions to trade routesImage: Rouzbeh Fouladi/ZUMA/IMAGOAdvertisementThe United States has opened another front in its economic pressure campaign against Iran, this time targeting the railways Tehran increasingly relies on as maritime trade becomes more difficult. On October 1, the US Treasury sanctioned three Iranian railway companies alongside seven automakers and five foreign suppliers of automotive parts as part of its Operation Economic Outcast. Washington says Iran's rail and automotive industries provide revenue and logistical capacity to the state and are connected to networks involving the Islamic Revolutionary Guard Corps (IRGC). The timing of the move is significant. Since the US maritime blockade sharply restricted Iran's southern trade routes, Tehran has tried to move more goods through its land borders and railway connections with China, Central Asia, Russia and Turkey. Rail transport has become more important just as Washington decided to target it. Shahriar Naghizadeh, director general for foreign trade at Iran's railway authority, was quoted by the semi-official Mehr news agency as saying that the country has around 15,000 kilometers (9,300 miles) of main and secondary railway lines, more than 35,000 wagons and nearly 500 diesel locomotives. The network carried around 44 million tons of freight in the Iranian year ending in March 2026, up from about 40 million tons the previous year, according to Naghizadeh. And authorities are targeting 54 million tons this year. Iran is linked to neighboring markets through 13 rail crossings, providing overland access to Turkey, Azerbaijan, Afghanistan, Pakistan and onward routes to Central Asia and China via Turkmenistan. The new US sanctions raise questions about how foreign railway operators, freight forwarders, banks and insurers will continue dealing with Iranian rail companies. Bloomberg reported in May that freight trains traveling from the Chinese city of Xi'an to Tehran had increased from around one per week before the US blockade to roughly one every three or four days. In September, a train left China carrying automotive parts, consumer goods and other cargo. It ran through Kazakhstan, Uzbekistan and Turkmenistan before entering Iran at Sarakhs with an expected transit time of 14 to 16 days.

US sanctions target Iran's rail sector as Tehran shifts cargo from sea routes to overland corridors
Asia-Pacific
Channel NewsAsia

Cyclone Arnab stalls close to India's east coast

Winds of 115kmh to 125kmh and gusts of up to 140kmh are forecast, authorities said. A man walks past docked boats along the harbour amid rain and gusty winds as Cyclone Arnab approaches, in Visakhapatnam, Andhra Pradesh, India, Oct 27, 2026. (Photo: Reuters/Ahamad Shaik) BHUBANESWAR, India: Arnab, a powerful cyclone, has stalled close to India's east coast with landfall expected to last two more hours, authorities said on Wednesday (Oct 28). More than 180,000 people have been evacuated in the states of Andhra Pradesh and Odisha ahead of Cyclone Arnab's arrival. No loss of life has been reported in either state, though power supplies have been disrupted and trees have been uprooted. Some schools have been closed and some train and flight services cancelled. Arnab, classified by the India Meteorological Department as a very severe cyclonic storm, the third-highest category on its scale, started making landfall earlier than expected. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less The cyclone is "practically stationary" and while the edge of the storm has moved on to land, its centre remains over the Bay of Bengal, the agency said. Winds of 115kmh to 125kmh and gusts of up to 140kmh are forecast, with a storm surge of 1m to 1.5m above normal tide likely to inundate low-lying areas of Andhra Pradesh, it said in a bulletin issued at 6.30am local time (9am, Singapore time). Operations at three Andhra Pradesh airports were suspended, India's civil aviation ministry said. In neighbouring Nepal, authorities on Tuesday warned tourists against venturing into high-altitude areas due to fears that Arnab could trigger torrential downpours, snowstorms and avalanches in the Himalayan region from Thursday night through Saturday. Arnab formed over the Bay of Bengal, a major region for tropical cyclones that has spawned deadly storms on India's east coast. A super cyclone that killed nearly 10,000 people when it hit Odisha in October 1999 remains one of the country's deadliest natural disasters.

Cyclone Arnab stalls close to India's east coast
Japan
Nikkei Asia

5 things to know about the US midterms and what they mean for Asia

Historically, the party of the sitting president tends to lose seats in the midterms, which take place roughly halfway into a president's four-year term. (Nikkei montage/Source photos by Yuki Nakao and Reuters) WASHINGTON/NEW YORK -- In seven days, Americans go to the polls for the 2026 midterm elections. At stake is who will control Congress: President Donald Trump's Republican Party, which currently holds a majority in both the House of Representatives and the Senate, or the Democratic Party.

5 things to know about the US midterms and what they mean for Asia
Asia-Pacific
The Straits Times

Seatrium, Karpowership to develop floating power, digital infrastructure solutions in Singapore

Seatrium and Karpowership may extend cooperation to the wider South-east Asia market. SINGAPORE – Mainboard-listed offshore and marine player Seatrium announced on Oct 27 a collaboration with global energy company Karpowership to develop floating power and infrastructure solutions in Singapore. The parties said that they intend to “progress discussions in the coming months towards the formation of a joint venture”, and that the cooperation could be extended to the wider South-east Asia market. They aim to “create an integrated platform combining infrastructure development, financing, engineering, construction and operations”. The memorandum of understanding signed between the parties establishes a framework for the joint development of “rapidly deployable” solutions in Singapore, potentially including power ships, floating data centres, turbine-based or hybrid vessels and floating nuclear solutions. The signing was announced at Singapore International Energy Week 2026, and was witnessed by Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng. Seatrium and Karpowership described themselves as sharing “a longer-term ambition to bolster Singapore’s position... as a resilient regional hub for rapidly deployable energy and digital infrastructure solutions”. Seatrium chief executive Chris Ong said the partnership “represents a strategic opportunity to extend our role across the energy infrastructure value chain”. Orhan Remzi Karadeniz, CEO of Karpowership, said: “Access to reliable power increasingly determines where industries invest, how economies grow and how quickly digital ambitions become reality.” Karpowership owns and operates the world’s only fleet of power ships, with 45 of these being “floating power plants that can be deployed to provide electricity to markets requiring additional generation capacity”. The company also offers floating liquefied natural gas (LNG) solutions, with a fleet of 12 such assets, including ones in the pipeline, composed of floating storage regasification units and LNG carriers.

Seatrium, Karpowership to develop floating power, digital infrastructure solutions in Singapore
Asia-Pacific
Channel NewsAsia

China's Xi calls on Japan to protect political foundation of ties

Chinese President Xi Jinping also extended condolences to the family of former Japanese prime minister Yasuo Fukuda, who died last week. Chinese President Xi Jinping shakes hands with Japanese Prime Minister Sanae Takaichi ahead of their meeting in Gyeongju, South Korea, Oct 31, 2025. (File photo: Kyodo News via AP) BEIJING: Chinese President Xi Jinping on Tuesday (Oct 27) extended condolences to the family of former Japanese prime minister Yasuo Fukuda, who died last week, while calling on Japan's current leadership to "safeguard the political foundation" of ties that have been strained since late last year. Fukuda, who died on Thursday from heart failure at the age of 90, used his brief period in office to seek closer ties with Asian neighbours, particularly ​China, with which relations have periodically been tense. Fukuda was a Japanese politician of integrity and responsibility, as well as an old friend of the Chinese people, Xi said in his message, according to the state-run Xinhua news agency. Fukuda "upheld a correct view of history", Xi said. The comments were a rare direct reference by the Chinese leader to the relationship between the two countries since it deteriorated late last year. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Ties between China and Japan sank to their worst levels in years after current Japanese Prime Minister Sanae Takaichi angered Beijing in November 2025 by suggesting that Japan could deploy its military ​if a Chinese move against neighbouring Taiwan also threatened its territory. Beijing called Takaichi's remarks "egregious" and demanded that she retract them. China has advised its citizens against travel to Japan, while also banning exports to Japan of items that can have a military application, including some rare earths. In his message on Tuesday, Xi said he "hopes Japan's current leaders to cherish the hard work and efforts made by the older generation of politicians, abide by the four political documents between China and Japan, and earnestly safeguard the political foundation of bilateral relations". China would remember Fukuda's contributions to China-Japan relations and to Asia's development, Xi added. Our chief editor shares analysis and picks of the week's biggest news every Saturday.

China's Xi calls on Japan to protect political foundation of ties
North America
CNBC Finance

General Motors beats Wall Street's Q3 earnings expectations, narrows full-year guidance

DETROIT — General Motors narrowed its 2026 earnings guidance and raised its free cash flow expectations after beating Wall Street's third-quarter expectations. The Detroit automaker also announced a new multiyear stock buyback of $20 billion after GM completed a $6 billion share repurchase program that was announced in January. GM did not disclose a specific time to complete the program. The new guidance includes adjusted earnings before interest and taxes of between $14.5 billion and $15.5 billion, or $12.75 to $13.75 adjusted earnings per share, and adjusted automotive free cash flow of between $11.5 billion and $12.5 billion. That compares with its raised guidance from July that included adjusted EBIT of between $14 billion and $16 billion, or $12 to $14 adjusted EPS, and adjusted automotive free cash flow of $9.5 billion to $11.5 billion. "I think the market's been pretty consistent from what we've said all year," GM CFO Paul Jacobson told CNBC's Phil LeBeau. "Our fourth quarter's going to be down sequentially. ... I think the fact that we're able to hold our guidance in the face of that late inflationary pressure in the year is another sign of the GM team executing really well." GM stock was off roughly 5% during premarket trading despite the earnings beats. Wall Street analysts were mixed before the report on whether GM would raise its guidance Tuesday amid concerns of slowing sales and rising commodity costs. GM on Tuesday said it expects commodity inflation costs to be around $2 billion, which was the high end of its previous guidance. That includes higher costs for logistics and dynamic random-access memory, or DRAM, chips that are impacting multiple industries. While the inflationary costs were at the automaker's high end of guidance, GM said its gross tariff costs are expected to be at the low end of its expected $2.5 billion to $3.5 billion range. Warranty costs are expected to be at high end between $1 billion and $1.5 billion, GM said. Jacobson said vehicle pricing is relatively flat as inflationary costs continue to increase. He said the company would assess where consumers are in the coming year when deciding if it should pass costs along by raising prices more than normal. "GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency," GM CEO Mary Barra said Tuesday in a letter to shareholders. The automaker also said the costs of its pullback in all-electric vehicles announced last year were "substantially completed," saying it has recorded $11.2 billion in such charges since the second half of last year, including paying $4.6 billion of $7.4 billion in cash through the third quarter.

General Motors beats Wall Street's Q3 earnings expectations, narrows full-year guidance
North America
CNBC Finance

Goldman Sachs, JPMorgan and Morgan Stanley are dominating the AI stock boom. Here's their edge

Fueled by the global boom in artificial intelligence stocks, relaxed capital rules and greater lending to hedge funds, big Wall Street banks have already had a banner year for equities trading — even with one quarter left to go. The five biggest investment banks have generated about $67 billion in equities revenue through Sept. 30, according to company filings. That is $7 billion more than what the group made during all of 2025, which itself was a record haul. But it's Wall Street's Big Three that have captured the largest slice of what is shaping up to be the industry's most lucrative arena: Goldman Sachs, JPMorgan Chase and Morgan Stanley have made a combined $52 billion in stock trading revenue so far this year, nearly 80% of the total. "When it comes to the AI mega trade, the Big Three consider each other their main competitors, and that's pretty much it," Mike Mayo, Wells Fargo banking analyst, told CNBC. "They've been best positioned to take advantage of this market." Wall Street banks are experiencing an epic run of blockbuster profits as the total value of the stock market balloons and trading activity from institutional and retail investors rises across stocks, exchange-traded funds and derivatives. Helping drive this activity are the loans that the banks, through their prime brokerages, are extending to hedge funds so that they can amplify their bets. Prime brokerage — the business of providing hedge funds with margin loans, securities lending and other trading services — has become a key battleground and source of growth. The Big Three's prime brokers are central to the larger equities story because they serve the largest funds across markets and products. Demand for leverage to make bets on AI hardware, hyperscalers and chip suppliers has reached new heights, bank executives said last week. At Goldman Sachs, equities financing activities jumped 96% in the third quarter to a record $3.37 billion. JPMorgan and Morgan Stanley don't break out that figure, but said they saw a similar dynamic. "I like your 'insatiable demand for capital' point. That feels about right," JPMorgan CFO Jeremy Barnum said on the bank's third-quarter conference call, responding to analyst questions about financing demands. "In this moment where AI is such an overwhelming theme ... there is capital being tapped through all kinds of different mechanisms," Barnum said. That demand has helped transform equity desks at the Big Three from cyclical, transactional businesses into more durable, high-margin lending engines, Wall Street executives say. The performance gap between Wall Street's giants and rivals including Bank of America and Citigroup highlights a widening divide in capital markets.

Goldman Sachs, JPMorgan and Morgan Stanley are dominating the AI stock boom. Here's their edge
Asia-Pacific
The Straits Times

Labubu loses its bite as Pop Mart’s quarterly sales plunge up to 50%

Pop Mart has described 2026 as “a year of adjustment”, as the Labubu fad dims and hits its bottom line. BEIJING – Pop Mart International Group reported a decline in third-quarter sales from a year earlier, hurt by fading Labubu momentum and a tough base of comparison following blockbuster results in 2025. Overall revenue fell as much as 50% from a year earlier in the three months ended September, according to Pop Mart’s latest business update based on preliminary data. That compares with revenue growth of about 250% in the year-ago period. Revenue in China declined 25% to 30%, while sales from the Americas fell 70% to 75%. The downturn underscores the volatility that can accompany an unexpected viral hit. Demand for Labubu – the snaggle-toothed monster plush – reached fever pitch in 2025 with everyone from K-pop idols to Hollywood celebrities and ordinary consumers seeking one. The results also highlight mounting pressure on the company as investors grapple with softening demand in 2026 in its home market alongside persistent weakness across overseas operations. While Pop Mart has described 2026 as “a year of adjustment”, investors are concerned that the slowdown could extend into 2027. HSBC Holdings cut its revenue forecasts for 2027 and 2028 by 8% and 9%, respectively, in a research note released ahead of the results, citing expectations for “a longer road to stabilisation”. The bank also lowered its 2026 sales estimate to 33.2 billion yuan (S$6.4 billion) from 34.6 billion yuan previously. In a bid to maximise brand exposure and keep consumer buzz alive, Pop Mart continued expanding its retail footprint through flagship locations in key domestic and international markets. The company opened a three-storey flagship store near West Lake in Hangzhou and launched its European flagship on Boulevard Haussmann in Paris in September.

Labubu loses its bite as Pop Mart’s quarterly sales plunge up to 50%
North America
CNBC Finance

The political ad wars are still being fought over the airwaves even as digital gains share

While advertising dollars increasingly shift toward streaming and digital platforms, the political ad war is still being fought over the free airwaves. Broadcast television companies are set to capture the greatest portion of political ad spend ahead of the midterm elections, according to advertising intelligence company AdImpact. The 2025-26 election cycle is forecast to be the most expensive on record, with a predicted $11.6 billion in total spending. That's higher than the $11.2 billion spent on advertising during the 2024 presidential election cycle and the $8.9 billion spent during the 2022 midterms. An estimated $5.6 billion of advertising spend ahead of the midterms, or 48%, is expected to go to broadcast companies, AdImpact found. "It's still a local game," said StoneX Equity Research Analyst Daniel Kurnos in an interview. "Yes, there are national elections, but you have to win counties. And if you have to win counties, you have to reach voters in these counties." Broadcast audiences — those tuning into NBC, ABC, CBS, Fox or their local affiliate stations — are generally more politically active, Kurnos said: "You cater to the demos that vote. You cater to the votes that matter." That makes political advertising one of the last bastions of broadcast's dominance. While broadcasters are expected to capture roughly half of political advertising spending this cycle, they account for just 7.7% of the more than $470 billion in general advertising spend forecast for this year in the United States, according to Magna data published by S&P Global in July. Terry Nelson, a founding partner of Plus Communications and the national political director for former President George W. Bush's 2004 reelection campaign, told CNBC that broadcast spots allow political strategists to reach large numbers of voters "as efficiently as we can from a cost perspective." Though cord-cutting has reshaped the TV landscape as customers drop cable, broadcast remains free and broadly accessible. Broadcast, which transmits local news, sports, classic game shows like "Wheel of Fortune" and national networks, captured more hours of television use than cable in July, according to Nielsen's most recent monthly streaming report, The Gauge. The category accounted for 19.5% of television use, while cable captured 18.7%. Streaming led television use by far, at 49%. Broadcast is still particularly good at delivering high viewership during live sports games, Nelson noted.

The political ad wars are still being fought over the airwaves even as digital gains share