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Amazon to expand Prime delivery services in smaller cities, rural areas in US by year end

Amazon to expand Prime delivery services in smaller cities, rural areas in US by year end

The Star13 hours ago

An Amazon.com delivery worker rides a four-wheel electric cargo delivery vehicle in Manhattan in New York City, U.S., March 19, 2025. REUTERS/Mike Segar/File Photo
(Reuters) -Amazon.com plans to expand its same-day and next-day Prime delivery services to over 4,000 smaller cities and rural regions in the United States by the end of 2025, it said on Tuesday, as the company doubles down on efforts to grow its domestic footprint.
Amazon earlier this year announced plans to spend more than $4 billion to grow its U.S. rural delivery network by the end of 2026, promising faster shipments to drive up demand from consumers in small towns and the countryside.
The company said it was already seeing customers purchase more frequently and shop for household essentials at higher rates since it started offering faster deliveries in these regions.
With more than 200 million paid Amazon Prime members worldwide, Prime has become a key growth engine for the company. In a bid to boost Prime's performance, Amazon has focused on expanding geographically while also offering discounts to younger shoppers to grow its subscriber base.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shailesh Kuber)

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New Zealand's Xero to buy US fintech Melio for $2.5 billion
New Zealand's Xero to buy US fintech Melio for $2.5 billion

The Star

time30 minutes ago

  • The Star

New Zealand's Xero to buy US fintech Melio for $2.5 billion

A person counts U.S. one-hundred dollar bills at a currency exchange office, in Santiago, Chile April 4, 2025. REUTERS/Pablo Sanhueza (Reuters) - New Zealand accounting software giant Xero agreed to buy New York payments provider Melio for $2.5 billion, the companies said on Wednesday, accelerating the Kiwi firm's push in the U.S. market with one of the country's biggest outbound deals. The deal fills a gap in Xero's offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of sales. The deal "enables a step change in our North America scale and the potential to help millions of US (small-to-medium businesses) and their accountants better manage their cash flow and accounting on one platform", said Xero CEO Sukhinder Singh Cassidy in a statement. Xero forecast the buyout would double its 2025 financial sales by 2028. Melio co-founder and CEO Matan Bar said he was "excited by our shared purpose to scale in the US and combine Xero's accounting capabilities with Melio's accounts payable and receivable solutions". Shares of Xero were suspended from trading on Wednesday as the A$30 billion ($19.5 billion) market capitalisation company asked institutional investors for A$1.85 billion to help pay for the purchase, but analysts gave a cautious endorsement of the deal. "There is much to like in terms of bulking up US exposure with a leading, fast-growing payments player and longer term the proposed deal makes sense," said RBC Capital Markets analyst Garry Sherriff in a client note. "It will take time to process the intricacies of the deal and the pathway forward." E&P analyst Paul Mason said the buyout price "looks pretty full for the stand-alone business but works if you think the company can pull off strategic synergies around greater distribution". ($1 = 1.5387 Australian dollars) (Reporting by Byron Kaye in Sydney and Rajasik Mukherjee in Bengaluru; Editing by Maju Samuel and Sonali Paul)

Trump says China can buy Iranian oil, urges it to by US crude
Trump says China can buy Iranian oil, urges it to by US crude

New Straits Times

time2 hours ago

  • New Straits Times

Trump says China can buy Iranian oil, urges it to by US crude

WASHINGTON: President Donald Trump said on Tuesday that China can continue to purchase Iranian oil after Israel and Iran agreed to a ceasefire, a move that the White House clarified did not indicate a relaxation of US sanctions. "China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the US, also," Trump said in a post on Truth Social, just days after he ordered US bombings of three Iranian nuclear sites. Trump was drawing attention to no attempts by Iran so far to close the Strait of Hormuz to oil tankers, as a closure would have been hard for China, the world's top importer of Iranian oil, a senior White House official told Reuters. "The president continues to call on China and all countries to import our state-of-the-art oil rather than import Iranian oil in violation of US sanctions," the official said. After the ceasefire announcement, Trump's comments on China were another bearish signal for oil prices, which fell nearly 6 per cent. Any relaxation of sanctions enforcement on Iran would mark a US policy shift after Trump said in February he was re-imposing maximum pressure on Iran, aiming to drive its oil exports to zero, over its nuclear program and funding of militants across the Middle East. Trump imposed waves of Iran-related sanctions on several of China's so-called independent "teapot" refineries and port terminal operators for purchases of Iranian oil. "President Trump's greenlight for China to keep buying Iranian oil reflects a return to lax enforcement standards," said Scott Modell, a former CIA officer, now CEO of Rapidan Energy Group. In addition to not enforcing sanctions, Trump could suspend or waive sanctions imposed by executive order or under authorities a president is granted in laws passed by Congress. Trump will likely not waive sanctions ahead of coming rounds of US-Iran nuclear talks, Modell said. The measures provide leverage given Tehran's demand that any deal includes lifting them permanently. Jeremy Paner, a partner at Hughes Hubbard & Reed lawfirm, said if Trump chooses to suspend Iran oil-related sanctions, it would require lots of work between agencies. The Treasury would need to issue licenses, and the State Department would have to issue waivers, which require Congressional notification. 'FLASHED THE GLOCK' China has long opposed what it has called Washington's "abuse of illegal unilateral sanctions." China's embassy in Washington did not immediately respond to a request for comment about Trump's post. Larger purchases of Iranian oil by China and other consumers could upset US ally Saudi Arabia, the world's largest oil exporter. The impact of US sanctions on Iran's exports, however, has been limited since Trump's first administration when he cracked down harder on Tehran. Trump has "flashed the Glock" this year with sanctions on Chinese trading companies and terminals, but the results have been far more "minimum pressure" than maximum, Modell said. State Department spokesperson Tammy Bruce told reporters that Trump had signaled what he wanted to happen and that his administration is focused on delivering that. She would not say what the process would entail. "But clearly we are focused on making sure that (the) guiding hand of President Trump prevails and moves this government forward, so we will have to wait and see when it comes to what that ends up looking like," Bruce said. (Reporting by Timothy Gardner, Daphne Psaledakis, Jarrett Renshaw, David Brunnstrom and Bhargav Acharya; Editing by Doina Chiacu and Marguerita Choy)

Rising Middle East risks boost Malaysia's LNG appeal
Rising Middle East risks boost Malaysia's LNG appeal

New Straits Times

time2 hours ago

  • New Straits Times

Rising Middle East risks boost Malaysia's LNG appeal

KUALA LUMPUR: Malaysia can position its liquefied natural gas (LNG) sector as a reliable and stable energy hub following rising geopolitical risks in the Middle East, industry experts said. The country could also capitalise on the regional shift of vessel traffic toward Asia by enhancing its role as a bunkering hub, riding on the strengths of local ports such as Port Klang and Bintulu Port. They said Malaysia can leverage the escalating conflict in the Middle East to attract more global interest particularly to Petroliam Nasional Bhd's Pengerang Integrated Complex (PIC) in Johor. The ongoing instability in the Strait of Hormuz and the Red Sea - sparked by tensions involving Iran, Israel, and Yemeni Houthi factions - has prompted a reevaluation of global LNG supply chains, they added. Stability and Proximity The increased risk to maritime routes through the Middle East is pushing energy buyers to seek alternative, more secure sources, said Dr Azmi Hassan, a senior fellow at Nusantara Academy for Strategic Research. Malaysia, through Petronas, stands to benefit from this shift, he said, adding that the Pengerang facility offers stability and proximity to key markets, which the Middle East currently cannot guarantee. The PIC is a joint venture between Petronas and Saudi Aramco. It has already become a significant downstream asset, and Malaysia can ramp up efforts to promote the facility as a global LNG hub amid volatile market dynamics. The Israel-Iran conflict, in which both countries have been firing missiles at each other, has reportedly raised fears Tehran may close the Strait of Hormuz in further retaliation. As a result, shipowners are holding off chartering vessels, which is reducing tanker availability and pushing up prices, Reuters quoted a trade source. Around 20 per cent of global oil and gas demand flows through the Strait of Hormuz, situated between Iran and Oman. Qatar, one of the world's top LNG exporters, sends almost all of its supplies via the strait, Reuters said. While higher global LNG prices resulting from supply concerns could benefit Malaysia as a major LNG exporter, experts cautioned that volatility also carries risks. Nonetheless, Malaysia can turn uncertainty into opportunity by branding PIC as a "safe bet" for global investors and customers seeking long-term energy security, Azmi said. Riding on Traffic Diversion Maritime scholar and commentator Nazery Khalid said Malaysia can leverage the regional shift of vessel traffic toward Asia by expanding bunkering capacity and strengthening support services for ship refuelling activities at Port Klang. "Port Klang is the key entry port for crude oil coming in along the Straits of Melaka. They can look into beefing up their bunkering handling capacity," he told Business Times. Nazery said Malaysia can take advantage of its strategic location if similar disruptions occur in the future, which could help reduce the country's reliance on crude oil imports from Saudi Arabia. Currently, the three main sources of Malaysia's crude oil imports are Saudi Arabia, the United Arab Emirates (UAE) and Brazil. Malaysia, he said, is already well-equipped to handle LNG transhipment, thanks to its strong existing facilities. "However, at the same time, the order of movement of LNG is already well established. So it is not going to be challenged or it is not going to be recalibrated quickly anytime soon. Every time there is a crisis like this, when it's over, everything will go back to normal. "The Middle East will continue to be the key hub and key source of LNG. But in Malaysia, we also have the facilities. "We have Bintulu Port, one of the world's largest export terminals for LNG. We also have the regasification refinery in Melaka and the facilities in Pengerang," he said. Nazery said this demonstrates that Malaysia has both the infrastructure and capability to capture a share of the global LNG transhipment market. Impact of Rising Freight Rates On the surge in LNG freight rates, Nazery said it could potentially impact Malaysia's energy trade, although it is still early to gauge the full extent. He said the country remains heavily dependent on crude oil imports from the Middle East, especially from Saudi Arabia and the UAE. He said rising regional tensions, along with the Iranian parliament's move to close the Strait of Hormuz, will inevitably push up oil tanker freight rates. "Some of the shipments of crude from Saudi and the UAE will have an impact on us. This can already be seen in the increase in the spread rate of tanker ships. "During times like this, the spread of ocean rates for the transport of crude oil will widen because of the risk and uncertainty," he said. Nazery added that importers will be compelled to bring in crude oil as they are bound by contractual obligations to import a specific volume. As a result, they will have no choice but to bear the higher costs set by major oil tanker operators. "There will also be a surcharge and also an increased premium of insurance imposed by marine insurance underwriters because the Straits of Hormuz is already considered as a war risk zone. "I think what will happen is that Malaysian importers of crude from Saudi and the UAE will find themselves having to pay a more expensive freight rates." Nazery added that the timeline for shipping flows to return to normal will largely hinge on diplomatic developments. The announcement of a ceasefire by the Trump administration is a positive and encouraging sign, he said. "Hopefully things will go back to normal as early as possible because the world cannot afford this situation to prolong because the implications will be very horrifying. Especially when other major powers like Russia and China were to be involved and then the conflict spread to other countries. "We really cannot afford this because the world is still tentatively recovering from Covid-19. "Here in Malaysia, with the rising cost of living, when oil prices go up, traders will take the opportunity to increase the cost of goods and services. This will add to inflationary pressure," he added.

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