Euro falls to a 17-month low as rumors of early elections in Spain increase concerns

The third paragraph adds comments from the CEO's interview with CNBC, while the fourth paragraph updates stock price movements. Nandan Mandayam, Reuters, October 5 – C.H. Robinson Worldwide (CHRW.O) announced on Monday that it will acquire smaller rival RXO (RXO.N) for $5.8 billions, marking the company's largest deal to date. The move aims to expand its North American truck brokerage operations and strengthen its “last mile” delivery capabilities. The merged logistics giant, with a scale of $25 billions, will grant C.H. Robinson greater advantages in the highly fragmented freight transportation market. This will help the company secure larger corporate contracts, increase route density, and integrate RXO’s “last mile” services to meet rising market demands for faster and more reliable shipping. “Frankly, RXO has capabilities that C.H. Robinson does not currently have ... and those capabilities align perfectly with our existing strengths,” said C.H. Robinson CEO Dave Bozeman in an interview with CNBC. RXO’s share price surged by 22%, while C.H. Robinson’s stock fell 13%. For every RXO share, shareholders will receive $17.25 in cash and 0.0856 shares of C.H. Robinson, valuing RXO at $30.25 per share—a 29% premium over last Friday’s closing price. RXO will be incorporated into C.H. Robinson’s North American Surface Transportation division, which accounts for more than two-thirds of the company’s revenue. Amid driver shortages caused by regulatory policies, U.S. trucking rates have rebounded, benefiting freight brokers with increased revenues. However, sharp volatility in diesel prices has compressed profit margins, as fuel surcharges and spot rates often lag behind cost increases, creating short-term cash flow pressures. C.H. Robinson said it expects the deal to generate $300 millions in net operating cost synergies within two years and boost adjusted earnings per share within nine months. Over the past year, C.H. Robinson has reduced its workforce as AI agents have taken over tasks like freight pricing, coordinating pickups and deliveries, and tracking shipments in transit. Meanwhile, RXO posted annual losses for both 2024 and 2025 but recently beat profit expectations thanks to improved pricing strategies. The deal is expected to close in the first half of 2027, after which RXO shareholders will hold an 11% stake in the combined company. RXO shares have outperformed the broader S&P 500 benchmark over the past year: https://tmsnrt.rs/3U8qpkf (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Due to possible errors or lack of context in automated translations, Reuters does not guarantee their accuracy and provides them solely for reader convenience. Reuters does not accept any liability for damage or losses arising from the use of automated translation functionality.)

Citigroup foreign exchange strategists expect the euro to weaken against the U.S. dollar, citing the Federal Reserve’s more hawkish stance and renewed tensions between the United States and Iran. “With the tailwinds from artificial intelligence (AI), attractive real interest rates, and rising euro-related risk premiums, U.S. capital flows continue to support the dollar,” said Daniel Tobon and Brian Levine of Citigroup in a report. The Citigroup strategists have lowered their three-month euro/dollar forecast to 1.135 and cut their 6- to 12-month projection to 1.13.

The yield on the 30-year US Treasury bond has risen to 5.69%, marking a new high since 2002.