Biden's executive order to have limited impact on shipping - Jefferies

Global Ship Lease

09/07/2021 16:36

** Jefferies says President Biden's executive order aimed at
anti-competitive practices will likely not have a significant
impact on international shipping firms
    ** Biden on Fri to sign an executive order that includes 72
initiatives he wants over a dozen agencies to undertake to
promote competition throughout the U.S. economy  urn:newsml:reuters.com:*:nL2N2OL0QQ
    ** Jefferies in research note says executive orders that
direct federal agencies to study certain issues do not always
end in tangible action or regulation
    ** And though brokerage doesn't believe it will meaningfully
impact the sector, says the order highlights current strength of
ocean shipping and shows that rates are expected to remain
elevated going forward
    ** Jefferies recommends buying Zim Integrated Shipping
Services  ZIM.N  and Danaos Corp  DAC.N 
    ** ZIM on Fri up 5.5%, while DAC up >3%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))