UPS has entered into a definitive agreement to sell UPS Freight (UPSF) to TFI International Inc. for $800 million, subject to working capital and other adjustments. “We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc.,” said UPS Chief Executive Officer Carol Tomé. “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.” The decision to sell UPS Freight was reached following a thorough evaluation of the UPS portfolio, and aligns with the company’s “better not bigger” strategic positioning. UPS and TFI International will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipments, for a period of five years.
Several months ago, U.S. President Donald Trump delivered an ultimatum on the Iranian nuclear deal:
“Either fix the deal’s disastrous flaws, or the United States will withdraw.”
Despite clear support from French President Emmanuel Macron, German Chancellor Angela Merkel, UK Prime Minister Theresa May, and the European Union to continue the Joint Comprehensive Plan of Action (JCPOA), popularly known as the “Iran nuclear deal,” and offset a Trump veto, the deal, as it existed on Monday, is now dead.
The stakes are high, but European positions are not enough.
Short term, oil-pricing volatility will continue. Traders will likely consider any forward interruption – perceived or actual – in Iranian crude export flow as upward pressure on global prices.
If this happens and JCPOA is not immediately closed, (i.e., should those second and third possible scenarios I mentioned play out), there will be a pullback.
Overall, other factors have been contributing to an increasing floor for the oil-pricing band, supported by continuing OPEC production problems in Venezuela, Nigeria, and Libya.
more at: https://moneymorning.com/2018/05/09/the-iran-deal-is-dead-heres-what-that-means-for-crude-oil-prices/