Category: 3. Business

By Steve Goldstein

Deutsche Bank says simultaneous move in yen and JGBs is reminiscent of sterling and gilt fall in 2022

The premierships of Sanae Takaichi, left, and Liz Truss, both have been bad for their domestic bonds and currency.

Have we seen this movie before?

The simultaneous decline in Japanese bond yields BX:TMBMKJP-30Y and its currency (USDJPY) is reminding Deutsche Bank’s head of currency research of Liz Truss’s ill-fated premiership, when sterling and U.K. gilts tumbled in value after the introduction of what’s called a mini-budget.

New Japanese Prime Minister Sanae Takaichi differs from Truss in that she wants to spend rather than cut taxes, but both plans amount to aggressive fiscal stimulus.

The U.S. dollar and U.S. Treasury bonds also fell simultaneously in April in reaction to President Donald Trump’s “Liberation Day” tariff plan, which subsequently has been reduced in scope.

“While most commentators have been focused on the recent bout of volatility in U.S. equity markets, something far more worrying is happening elsewhere in our view: the Japanese yen and bond market are collapsing together, with the dynamic sharply accelerating in recent days. The yen and 30-yr government bond have dropped by more than 5% in recent weeks, all the more remarkable given that global fixed-income markets have been rallying elsewhere,” said Deutsche Bank’s George Saravelos.

He says the issue in Japan is that inflation expectations have become unanchored.

“If domestic confidence in the government’s and Bank of Japan’s commitment to low inflation is lost, the reasons to buy JGBs disappear, and more disruptive capital flight ensues,” he says.

Saravelos said that he’ll be watching for signs of capital flight, and whether Japanese authorities give in to pressure from financial markets.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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  11-21-25 0523ET
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Solvay and Sapio sign ten-year agreement for the production of renewable hydrogen in Rosignano, Italy

Solvay and Sapio have entered a 10-year agreement to collaborate on renewable hydrogen production at Solvay’s Rosignano facility, part of the Hydrogen Valley Rosignano Project aimed at cutting CO₂ emissions from Solvay’s peroxides operations.

Under the agreement, Sapio will construct and manage a 5 MW electrolysis system, powered by a 10 MW photovoltaic installation built by Solvay. The project, expected to be operational by mid-2026, will produce up to 756 tons of renewable hydrogen annually, reducing the site CO₂ emissions by up to 15%. It has received €16 million in funding from the Tuscan Region under Italy’s National Recovery and Resilience Plan (PNRR).

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Does a seller’s failure to deliver a ship by the agreed Cancelling Date under a ship sale Memorandum of Agreement (MOA) on the Norwegian Saleform 2012 (NSF 2012) – resulting in the cancellation of the MOA – entitle the buyer to recover “loss of bargain” damages under Clause 14 of the NSF 2012 where said failure did not amount to a repudiatory breach by the seller?

The Court of Appeal answered this in the affirmative in Orion Shipping & Trading LLC v Great Asia Maritime Ltd (The “LILA LISBON”) [2025] EWCA Civ 1210, overturning the earlier High Court decision.

Background

In this case, the sellers (Orion Shipping and Trading LLC) had agreed to sell the “LILA LISBON”, a Capesize bulk carrier, to the buyers (Great Asia Maritime Ltd) for US$15 million under a Memorandum of Agreement made on the Norwegian Saleform 2012, dated 4 June 2021.

Following the sellers’ failure to serve the Notice of Readiness by the (extended) Cancelling Date, the buyers proceeded to cancel the sale contract in accordance with its terms and commence arbitration proceedings. The buyers sought to recover from the sellers US$1.85 million, this amount representing the difference between the market price of the vessel at the date of cancellation (US$16.85 million) and the sale contract price (US$15 million).

Clause 14 NSF 2012

Under the terms of the MOA, Clause 14 of the NSF 2012 provided that, “should the Sellers fail to give Notice of Readiness … or fail to be ready to complete a legal transfer by the Cancelling Date the Buyers shall have the option of cancelling this Agreement…In the event that the Buyers elect to cancel this Agreement, the Deposit together with interest earned, if any, shall be released to them immediately.”

In addition, Clause 14 provided that in the event the sellers failed to provide Notice of Readiness by the Cancelling Date or failed to be ready to validly complete a legal transfer, “…they shall make due compensation to the Buyers for their loss and for all expenses together with interest if their failure is due to proven negligence and whether or not the Buyers cancel this Agreement.”

Arbitration Tribunal

The Arbitration Tribunal found in favour of the buyers and awarded them US$1.85 million by way of damages for “loss of bargain” together with compound interest at 5% per annum. The Tribunal found that the sellers’ failure to deliver by the Cancelling Date was due to proven negligence on their part and concluded that the buyers were entitled to loss of bargain damages under Clause 14.

High Court

Following an appeal by the sellers to the High Court, the judge reversed the Tribunal’s award holding that the buyers were not entitled to damages for “loss of bargain” under Clause 14 and that, furthermore, the sellers were under no obligation to provide Notice of Readiness by the Cancelling Date.

Court of Appeal

The buyers proceeded to appeal to the Court of Appeal which held that a buyer was entitled to “loss of bargain” damages where the seller’s failure to deliver the vessel by the Cancelling Date was caused by “proven negligence” as contemplated by Clause 14 of the NSF 2012.

Reasonable Diligence

Furthermore, the Court found that, under the NSF 2012, a seller is under an obligation to use reasonable diligence to deliver the vessel by the Cancelling Date. It held that the Judge was wrong to conclude that there was no obligation on sellers to tender Notice of Readiness, nor to be ready to validly complete a legal transfer, by the Cancelling Date.

Loss of Bargain Damages

Importantly, the Court did not find the sellers’ conduct to be a repudiatory breach. Typically, under English law, “loss of bargain” damages are only recoverable where a contract is terminated following such a breach. However, Clause 14 of the NSF 2012 creates a distinct contractual mechanism: if the seller fails to deliver due to proven negligence, the buyer may cancel and claim compensation for losses and expenses, including the “loss of bargain”.

Proven Negligence

So, what was the “proven negligence” in The ”LILA LISBON”? The sellers’ failure to deliver by the original Cancelling Date of 20 August 2021 derived from regulations at Qingdao which required the departing crew to leave mainland China on the day of disembarkation. The sellers’ failure to arrange the necessary flights in time, resulting in the loss of the berthing slot, constituted “proven negligence” on the part of the sellers.

Following this, the sellers proposed a revised Cancelling Date of 15 October 2021, which Buyers accepted, however, without prejudice to their rights under Clause 14 to claim damages for all loss and expense suffered. The sellers, once more, failed to deliver the vessel by the revised Cancellation Date, not having taken reasonable steps to arrange this, and this failure was again attributable to their proven negligence.

Loss of Use Damages

It should be noted that the sellers’ failure to deliver by the original Cancelling Date due to proven negligence also entitled the buyers to damages under Clause 14 for loss of use of the ship for 56 days – from 20 August to 15 October 2021 – and this was assessed by the Arbitration Tribunal at US$1,650,992. This aspect of the award was not challenged before the Court of Appeal.

Comment

It is well known that in volatile markets, the difference between the contract price of an asset and its market value on or around the time of sale can vary significantly.

In a seller/owner-friendly market, this may tempt sellers to delay delivery of the vessel under the relevant MOA (potentially agreed when the market was less seller-friendly) either to simply delay delivery and continue benefiting from flows of charter income or, should they eventually wish not to deliver the vessel at all, to purposefully extend the Cancelling Date in the hope that buyers will at some point cancel the MOA and only seek compensation of mere-out of pocket expenses (estimated to be lower than the forecasted sellers’ gains from a future sale of the vessel or even from its continuous employment in the charter market) without buyers engaging in expensive litigation and arrest proceedings.

Also, in a seller/owner-friendly market, the buyers would not normally opt to cancel an MOA (entered into on the NSF 2012 form) if the sellers simply missed the contractually agreed Cancelling Date unless, in the meantime, the market price of the same type of vessel had been, or was forecasted to be soon, significantly reduced and the vessel had, consequently, become or would soon become “overpriced”.

The “LILA LISBON” Court of Appeal ruling now provides valuable clarity as to the required performance standards for sellers and the remedies available to buyers under the widely used NSF 2012 in commercial shipping.

For sellers, this judgement emphasizes the importance of operational diligence and underlines the fact that it is now clear that:

1. sellers have to be reasonably diligent in meeting the Cancelling Date under the NSF 2012 (and any extension would be “entirely without prejudice to any [buyers’] claim for damages” under the standard NSF 2012), and
2. loss of bargain damages are recoverable under Clause 14 of the NSF 2012 following a contractual cancellation, and
3. the lack of a repudiatory breach does not prevent buyers from claiming “loss of bargain” damages. This also signifies the importance of sellers considering their potential exposure to the aforementioned damages if they fail to meet the relevant deadline variations in the Cancelling Date under the MOA.

For buyers, this decision brings comfort knowing that their financial interests in the transaction are, in principle, safeguarded under the NSF 2012 form. It might be expected that, if sellers missed the deadline for delivery of the vessel due to their own negligence (especially more than once as in this case), buyers would wish to cancel the NSF 2012 under Clause 14 of the MOA.

The decision, therefore, strengthens the buyers’ position by ensuring that the right to cancel under Clause 14 is backed by a sensible financial remedy, assuming that sellers do not negotiate wording that restricts buyers from the right to claim such remedies unless a proven repudiatory breach has taken place on the sellers’ side. However, in practice, buyers may not be in a position to prove the sellers’ negligence and lack of reasonable diligence at the time they cancel the MOA.

One point that also remains open is that the Court of Appeal decision does not elaborate on the standard for assessing what equates to “reasonable due diligence” in the context of an NSF 2012 MOA, although there is substantial case law material that addresses the interpretation of these two terms (albeit not necessarily in a conclusive way).

 

 

 

It’s around this time of year that I start getting messages from friends: “What cocktails shall I serve at my party?” “Can you recommend a good champagne for Christmas Day?” “How do I make an Espresso Martini?” So here are some festive drinks tips from some of the best hosts in the business.

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Keep it refreshing

“Partying is a thirsty business – so go with wines that will leave you refreshed,” says Dye. “A fun crowd-pleaser like a zippy Grüner Veltliner or juicy Beaujolais.” Even in the depths of winter I also always serve lashings of rosé. Chilled wines on the rosé/red cusp also always go down well.

“A deep, dark rosé – Christian Tschida Birdscape Pink – or very light chilled red – Clos des Grillons Esprit Libre – that can be consumed on its own or with food, and doesn’t have to be treated with the utmost care,” says McMillan. 

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Use drinks as a focal point

A beautiful fruit-strewn punch that allows guests to serve each other can really break the ice (see recipe below). Serve with a little handwritten card alongside detailing the ingredients so you don’t have to explain it a hundred times. People tend to congregate in the kitchen, so use drinks to create focal points elsewhere; lay on mezcal shots in the sitting room or a pastis in the garden. Or create a spectacle, à la One Club Row, and construct a Martini tower.

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Champagne is a no-brainer

Free-flowing champagne is marvellous – but it doesn’t need to last all night. I think it’s rather chic to serve a little coupe of champagne before moving on to cocktails. “Make sure it’s perfectly chilled to 8°C or 9°C prior to opening,” says Xavier Padovani. “Then allow it to go up to 10°C once it’s out of the refrigerator. Serve it in wine glasses – no one uses champagne glasses any more.”

A niche grower champagne should get people talking – especially if it has an interesting story attached. I love Legrand-Latour’s floral Yprésien 2018 – a Meunier-forward, subtly floral organic champagne, from a cave that’s studded with fossils. Or, if it’s an oenophile crowd, then consider English fizz. Sessions Arts Club’s head of wine Sophie Liverman suggests Langham’s classy Culver Classic Cuvée, which recently won Best Non-Vintage Sparkling at the WineGB awards. 

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Quantity is quality

Get drinks into your guests’ hands as soon as they arrive, says Tadas Alisauskas. “The first moments of a party are crucial.” “And plan to serve two to three drinks per guest for the first two hours, then one drink per hour after,” says Svajune Janeliunaite 

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Lean in to alcohol-free

Don’t neglect the non-alc options – even the biggest boozers need a break sometimes. “I’ll always offer a great selection of non-alcoholic beers, spirit alternatives such as Pentire Coastal Spritz, and a variety of sodas so guests can experiment,” says Nathan McCarley-O’Neill of Carbone. Good de-alcoholised wines are hard to come by, but the rosé fizz Beau Viva – which is made by the same people as Provençal rosé Maison Saint AIX – is great.

Sparkling teas such as Saicho or Real offer a sophisticated substitute for champagne. A little gaggle of Crodinos on ice is hard to resist. And a smart sparkling water – Vichy Catalan or Chateldon 1650 – will also show you’ve put some thought into it.  

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Keep it simple

People often mistakenly offer too many choices. “People will try to offer something like 10 drinks, and then get overwhelmed. It’s much better to have two or three that you execute really well,” says Strangeway. “You want something you can make ahead of time, like a bottled cocktail or a punch. I would never shake a cocktail at a party – it just creates chaos and mess.” (Which means Espresso Martinis are out.)

Strangeway suggests serving a pre-bottled Pomegranate Negroni with a scattering of ruby pomegranate seeds (see his recipe, below). “Set the bottles out on the table in big tin baths full of ice and let people help themselves.”

“I’ll always make sure there are some freezer Martinis ready too, just in case we need to get things kick-started,” says Kevin Armstrong. (See his akvavit-spiked twist on a classic Martini, currently on the menu at Town restaurant.) Sparkling wine with a slosh of liqueur is another easy win – I love 25ml of yuzu sake topped up with chilled champagne.

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Don’t stint on the ice

The number-one party fail, according to everyone, is not getting in enough ice. “Too many people treat ice like an optional extra rather than the lifeblood of the party,” says James Dye. “Warm drinks are unforgivable. You need tonnes more ice than you think.” If you’re serving cocktails, budget four to five cubes per drink; if you’re using ice to chill drinks as well, allow 1kg per person. If you don’t have room in the freezer, stack the bags tightly together in the bath or sink, to slow the rate at which they melt.

For really show-stopping cocktails, order in some crystal‑clear ice blocks and spheres from a specialist supplier such as Ice Studio. For a more DIY flourish, Nick Strangeway suggests serving festive G&Ts over rectangular ice cubes with pine sprigs frozen inside.

Chill wine, beer and mixers well in advance. “Put them in the refrigerator at least the night before,” says Juliette Larrouy. If possible, freeze your cocktail glasses as well – it will give your drinks the edge.

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Go large…

“Magnums only! It screams celebration and is just fun to pour,” says Alisauskas. “Magnums are always fun,” agrees Amanda McMillan. “A delicious magnum of a light, chilled red equals party time.” “The theatricality of opening a big bottle of champagne is super-friendly,” says Padovani. “Relatively speaking, large formats can be cheaper, too. At the Farm Club nightclub in Verbier, we usually open a mag or two of Ruinart to kick off the season.”

Turning up at a party with a (ready-chilled) magnum of Riesling is also a good way to make a splash, says Liverman: “If you can find them, magnums of Koehler-Ruprecht (£56, in store only, shrinetothevine.co.uk) are very well-priced.”

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Something to snack on

And last but not least, don’t forget the food. “A baller move,” says McMillan, “is to serve some potato chips – the Spanish ones Bonilla a la Vista that come in a tin can are the very best – some oscietra caviar (don’t forget the caviar spoon, it’s essential), and crème fraîche. I also like to do a beautiful rustic grand aïoli plate with the prettiest vegetables I can find – lettuces, snap peas, green beans, radishes, sungold tomatoes – served with aïoli. A hot dog party also always crushes.” Alex Young prefers his party drinks with “a platter of cigarettes”. 

@alicelascelles

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