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Sevastopol in Crimea imposes temporary electricity restrictions to households
Sevastopol has limited the power supply to homes in order to avoid overloading the network. This is according the the Russian-installed Governor of Crimea's biggest city, who spoke on Thursday. The Black Sea Peninsula is currently experiencing fuel and electricity shortages. Crimean authorities already have suspended fuel sales for private motorists. Sevastopol, on the other hand, has implemented restrictions to operating hours of public transport, shops and cafes. In 2014, Russia annexed Crimea, despite the fact that most countries don't recognise Moscow's authority in the region. Kyiv, however, has stated it will never cede this territory. The fuel supply to Russia has been disrupted by Ukrainian attacks on energy and logistics facilities in Russia. Mikhail Razvozhayev is the governor of Sevastopol in Moscow, home to Russia’s Black Sea Fleet. He has urged people to avoid using powerful appliances. This measure was forced. He said that it was necessary to reduce the load on the power grids in other regions to avoid an accident affecting the entire energy system. He said that on Wednesday the recent Ukrainian attacks had caused a power outage. He added that trolleybuses will not be operating and parents should keep their children at home. Ukraine has confirmed that its drones have hit the main substation of the Sevastopol Power Plant. Ukraine's strategy of using?long-ranged drones to target Russian energy installations is intended to savor a major source of war funding for Russia and show the Russians that a four-year conflict launched by Moscow has hit?closer home. Vladimir Putin, the Russian president, has stated that the attacks on civil infrastructure were meant to create discord in the Russian population. (Reporting and Editing by Joe Bavier).
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Maersk confirms that two of its ships have safely exited the Gulf
Maersk, a shipping group, announced on Thursday that the Maersk Baltimore and a time-chartered ship had successfully traversed Strait of Hormuz. Maersk said in a press release that "the transits were completed after thorough security assessments and in close coordination with our security partners." The conflict in Iran, which began on February 28, has caused travel and cargo disruptions?across Middle East. Many vessels, such as those belonging to Maersk and competitors Hapag-Lloyd, CMA CGM and Hapag-Lloyd, have not been able to enter or exit the Gulf. Maersk announced that it will pursue an additional Hormuz transit at a future date, and the remaining two vessels will be used for intra-Gulf service. Maersk reports that of the 47,000 containers Maersk was destined for the Gulf at the start of the conflict, only 44,000 have been delivered, and 3,000 are still awaiting final delivery. Stine Jacobsen, Anna Ringstrom and Essi Lehto contributed to the reporting.
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European shares rise as Micron's forecast is a success, reviving the AI rally
European shares opened higher on Thursday, led by gains in technology stocks. Micron and Qualcomm's strong forecasts assuaged fears about the sector's inflated valuations, while oil prices eased further. By 0711 GMT, the?pan European STOXX 600 was up by 0.27% to 636.88. The AI rally is back on the agenda - as U.S. chipmakers Micron & Qualcomm released strong forecasts. This temporarily calmed investor concerns that a rally of global AI-linked shares had gone too far. European?tech shares, which rose by 30% in the last quarter, led the gains on the benchmark. Infineon and STMicroelectronics chipmakers gained 5,2% and 3,7% respectively. Semiconductor equipment suppliers BE Semiconductor, and ASML, each climbed more than 3%. Siemens Energy, a maker of AI equipment, added 1%. Investor sentiment was also boosted by the continued decline in oil prices, as more oil?tankers left the Strait of Hormuz. H&M's shares fell 1.2% among individual stocks after the Swedish fashion retailer announced a second-quarter operating profit that was below expectations. Retail as a whole was up by 0.4%. easyJet's shares rose 5.5% after it rejected a fourth takeover bid from a U.S. investment firm Castlelake. Reporting by Utkarsh hathi and Johann M Cherian in Bangaluru, Editing by Sonia Cheema
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Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war against Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are stoking inflation, reducing consumer and business confidence and weighing on corporate earnings. Some of the companies in Australia and New Zealand have made an impact. Air New Zealand: New Zealand’s flag carrier predicted its largest annual pre-tax losses in four years. This was two months after withdrawing their earlier 2026 forecast, as the Iran War pushed up jet oil prices, increasing costs, and compounding the pressure of weak demand and fleet restrictions. Air New Zealand has forecast a loss of between NZ$340 and NZ$390 (between $201.8 million and $2231.5 million) for the year. This is a significant change from last year's NZ$189million profit. Air NZ announced in March that it had suspended its earnings forecast for the full year and raised fares because of volatility in jet fuel prices. It was one of first airlines to announce a price increase. Auckland International Airport, New Zealand: Auckland International Airport reported that flights to the Middle East from Auckland were affected. In March, the number of passengers on Middle Eastern routes dropped by 81% and seat capacity fell by 73% compared to a year earlier, according to airport operator. a2 milk: New Zealand-based a2 Milch cut its profit forecast for fiscal 2026 as increased freight costs due the conflict and temporary disruptions in the supply chain affected the availability of the China-label formula infant milk product on its largest market. Cleanaway Waste Management: The company has slashed the full-year forecast for operating earnings by approximately A$20,000,000 ($14.17million), due largely to higher costs, reduced activity, and differences in timing of cost recovery. Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to a?weaker trade in developed markets', citing lower surgical volumes, less hearing-aid referrals, and softer consumer confidence. The Middle East War has increased the risk of order cancellations and delivery delays, as well as a higher exposure to receivables. This will also worsen margin pressures and increase restructuring costs. Fletcher Building Fletcher Building in New Zealand said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact of construction demand throughout Australasia. Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. Plastics, where the company claims immediate exposure is present, will experience price increases of up to 36%. Other divisions will only see a 1%-5% increase. Flight Centre Travel: Flight Centre Travel, an Australian corporate travel manager, has lowered its profit forecasts for 2026. They cited a drop in international leisure travel due to the Gulf Conflict. The company now expects to earn a profit before taxes of A$275 to A$295 millions for the fiscal year ending June 30. This is down from the previous target?of A$310 to A$345million. The company revised its estimate for the leisure segment from A$10 to A$50, up from the original estimate made in April. Fonterra: New Zealand dairy manufacturer Fonterra stated that the conflict is impacting their supply chain and could increase their inventory levels and costs during the second half of the year. National Australia Bank: National Australia Bank expects to incur credit loss charges of A$706 ($504.44 millions) in the first fiscal half of 2026. NAB stated that the volatility of interest rates in the second quarter, the weaker New Zealand Dollar and the increase in provisioning would result in a reduction of the common equity tier one capital ratio for the group by approximately 20 basis points on March 31. The company also plans to apply a discount of 1.5% to its dividend reinvestment program for the first half to raise A$1.8 billion and help strengthen its balance sheet. Orora Packaging Company: Orora has lowered its earnings forecasts for its French division Saverglass, and cancelled the share buyback program. The company cited the impact of war. Due to the closures of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates). Qantas Airways: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second half of the year up to A$800m. However, it still hasn't started the planned A$150m share buyback, citing the volatile and sharply increased jet fuel prices. Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points. Qube Holdings: Qube anticipates that the Middle East conflict will have an impact on its?EBITA earnings of between A$10 and A$20 million in fiscal 2026. The logistics firm stated that recent events could encourage an increase in investment in alternative energy projects. This could be beneficial for the company. Virgin Australia: Virgin Australia said that it expected fuel costs to increase by around A$30 to A$40 Million ($21.39 to $28.52 millions) in the second half fiscal 2026. In mid-March, the airline announced that it would be adjusting its fares due to rising costs in the aviation industry. Westpac: Westpac is Australia's second-largest bank in terms of assets. The lender said that the energy market shocks caused by the conflict led to profit pressures during the first half the financial year ending March 31. This prompted the lender to increase its credit provisions. Westpac's net interest margin for its Treasury and Markets division has been weakened amid the interest rate volatility related to the conflict. A weaker outlook is already leading to higher credit provisioning. Westpac has increased its provision for bad debts since the COVID-19 pandemic. Woolworths Woolworths is the largest Australian supermarket. It said that the Middle East conflict had created uncertainty for both customers and suppliers, adding to the already high cost of living. Fuel price pressures and investments in customer retention will also affect the firm's forecast for fiscal 2026. Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for three months, as cost pressures imposed by conflict on Australian suppliers have pushed up prices across all supermarkets. Worley: Worley, an engineering firm, said that it had nearly doubled the projected underlying operating income for its full-year due to project delays. The Sydney-based firm expects to take a A$60 million hit, up from a previous estimate of A$30-40 million.
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Trump asks Congress to increase pensions for former GM Parts Company workers by $1 billion
The White House asked Congress for $1 billion on Wednesday to increase the pensions of former General Motors Auto Parts Unit Delphi workers that were reduced during a bankruptcy restructuring in 2009. As part of a supplemental request, the?White?House also wants to raise $1 billion for reconstruction work at New York's Penn Station. It is also requesting $500 million to continue construction on Washington's World War II Memorial and Tidal Basin. The White House wants Congress to allow the Federal Aviation Administration to reallocate funds from the $12.5 billion modernization of air traffic control effort approved last year, to any priority other than the spending plans for air traffic set by Congress last year. Delphi cut pensions for over 20,000 retirees on a salary, including 5,000 in Ohio. Some suffered?pension cuts of up to 70 percent, and legislators have been pushing to restore these cuts for years. The Pension Benefit Guaranty Corporation received the pensions for salaried employees as part of the $50 billion bailout that GM received in 2009 under the Obama administration. GM has declined to comment. The Transportation Department announced last month that it would provide another $200 million for construction to begin by the end next year of an $8 billion plan to redevelop Penn Station. Amtrak, the U.S. passenger rail company, said that it plans to replace aging walkways and open modern concourses with newer ones. Penn Station is America's busiest transit hub, serving 10 million Amtrak riders annually and 100 millions total passengers including regional train systems. New York has decided not to move Madison Square Garden. The Garden is located on top of Penn Station, and hosts the New York Knicks Basketball team, New York Rangers Hockey team, and various sporting events, concerts, and shows. (Reporting and editing by Sonali Paul; David Shepardson)
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No tsunami warning following M6.9 earthquake in Japan's northeast
The Japan Meteorological Agency announced on Thursday that no tsunami warning had been issued following an earthquake of magnitude?6.9 which struck the east coast of Japan's northeastern Tohoku area. The agency stated that the epicentre was located off the coast of Iwate Prefecture at a depth of 50km. No tsunami damage is expected except for "slight changes in sea level". It said that the earthquake in Aomori had an intensity of 6+, which is a situation where "it's impossible to stand or move without crawling" on a Japanese scale from 0-7. Tohoku Electric Power has said that no irregularities have been found in the nuclear power plants?Onagawa & Higashidori, which were idled following the earthquake. East Japan Railway said it had halted certain trains, including the high-speed Shinkansen services in?Tohoku?. Japan is one of the most seismically active areas in the world. Japan is home to one-fifth the world's earthquakes of magnitude 6 or greater. (Reporting from?Kantaro Kommiya in Tokyo, and Natalia Bueno Rebolledo at Mexico City. Editing by Chris Reese, Christopher Cushing and Christopher Reese)
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Nasdaq and S&P finish lower as tech stock fall
Falling crude prices boosted airline and travel stocks, and the Dow closed higher. As more tankers are expected to leave the Strait of Hormuz, oil prices have?fallen?to the lowest level since the beginning of the Iran War. Donald Trump, the U.S. president, said that Iran told Washington there were no tolls being collected. S&P 500 passenger airline index rose 5.2%, while Expedia Group and Booking Holdings also saw gains. The tech stocks fell, causing the focus to shift towards Micron Technology's earnings after the bell. The stock is up more than 200% since?2026, but it closed Wednesday's trading down 0.3%. The stock soared in extended trading when quarterly revenue and forecasts for the fourth quarter exceeded Wall Street expectations. Cerebras Systems fell?19.6% when the chip designer predicted that full-year profits would fall below first-quarter figures. This was in its first report following going public. OpenAI's announcement of its "own inference chip" called Jalapeno also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion in value this week due to fears about debt-backed hyperscaler spending and a Federal Reserve that is more hawkish. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But, you continue to have the AI CapEx Buildout where, for whatever reason, people prefer the recipients of spending and punish those who are doing it." Six out of 11 major S&P sectors rose, with industrials rising by the most (1.2%). Consumer discretionary stocks rose by 0.8% to help offset the largest losses in energy and tech stocks. The Dow Jones Industrial Average gained 182.06 points or 0.35% to 51,848.90. The S&P 500 dropped 7.24 points or 0.10% to 7,358.22. And the Nasdaq Composite fell?110.40, or 0.4%, to 25,476.64. Homebuilders surged after Trump cancelled a scheduled signing of bipartisan legislation designed to speed up the availability of affordable housing. Hovnanian Enterprises jumped 11.3%. PulteGroup soared 7.2%, and Toll Brothers rose by 6.7%. Hertz, among other movers in the market, fell 40.7%. The car rental firm announced that it expected second-quarter adjusted core earning near the lower end its forecast range and proposed an offering of $100 million common stock. According to CME Group’s FedWatch, traders are increasing their bets on a second rate increase by the Fed before the end of the month. The market had previously?expected' a 25-basis point rise. The Personal Consumption Expenditures Index, which is the Fed's preferred measure of inflation, may provide a hint on Thursday as to the direction the monetary policies will take. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.03 to 1, with 205 new highs compared to 226 new lows. On the Nasdaq 2,323 stocks rose, while 2,499 fell. Declining issues outnumbered advancers by 1.08 to 1 ratio. S&P 500 recorded 25 new 52-week lows, while Nasdaq Composite registered 206 new highs. The volume on U.S. stock exchanges was 25,84 billion shares compared to the average of 22.92 billion shares for the entire session in the past 20 trading days. Abigail Summerville reported from New York and Twesha Dhikshit and Joel Jose were in Bengaluru. David Gregorio edited the story.
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Nasdaq and S&P finish lower as tech stock fall
The Nasdaq, S&P 500 and Dow closed lower on Tuesday, with tech stocks being the main drag. As more tankers are expected to leave the Strait of Hormuz, oil prices have fallen to their lowest levels since the beginning of the Iran War. U.S. president Donald Trump claimed that Iran told Washington there were no tolls being collected. The S&P 500 index of passenger airlines rose. The tech?stocks fell, causing the focus to shift towards Micron Technology's results after the bell. The stock is up more than 200% in 2026, but it fell on Wednesday. Cerebras Systems fell after the chip designer predicted that full-year profits would fall below "first-quarter figures" in its first report following going public. OpenAI's own inference chip, Jalapeno, also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion of market value this week due to fears about debt-backed spending by hyperscalers. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But there is still the AI CapEx buildout, where people, for whatever reason, like the recipients and punish those who are spending." The preliminary data shows that the S&P 500 dropped 5.86 points or 0.08% to 7,358.72, and the Nasdaq Composite fell 104.58 or 0.41% to 25,482.46. The Dow Jones Industrial Average rose 187.97 or 0.36% to 51,854.81. Homebuilders surged after Trump cancelled a planned signature of 'bipartisan legislation to'speed up the availability of affordable housing. Hovnanian, PulteGroup, and Toll Brothers were all up. Hertz, among other car rental firms, tumbled after it announced that it expected second-quarter core earnings to be near the lower end its forecast range and proposed an offering of $100,000,000 of common stock. According to the CME Group's FedWatch, traders are increasing their bets on a second rate increase by the Fed before?the end?of December. Markets had previously expected a 25-basis point rise. The Personal Consumption Expenditures price index, the Fed’s preferred inflation measure, could provide insight into the monetary policies path on Thursday. Reporting by Abigail Summerville, Twesha Dhikshit and Joel Jose from Bengaluru. Editing by David Gregorio.
Castlelake examines easyJet's accounts after a new $6.5 billion offer was rejected
EasyJet, the British budget airline, rejected on Thursday a fourth takeover offer from an American investment firm Castlelake, which was sweetened to PS4.93 billion ($6.50 Billion). However, it said that it would give limited access of commercial information to the bidder in order to?draw a higher price.
EasyJet released a statement saying that the Board believed giving Castlelake limited access to commercial information, as Castlelake requested in the letter containing the Fourth Proposal could?produce an attractive proposal. Castlelake had previously offered PS6.25 for each share. The PS6.50 per share proposal was higher. According to a Financial Times article from last week, it is also moving towards the PS7 per share price tag easyJet investors hoped to receive. EasyJet board unanimously rejected this new proposal because it "substantially undervalues" the company. Castlelake hopes to improve its bid after limited access to commercial information. The U.S. company has added New York asset manager Brookfield Asset Management, as well as?two previously announced partners, former Malaysia Airlines Chief Executive Officer Peter Bellew, and a senior industry executive Mark Breen, to the bidding vessel. Castlelake, along with co-investors such as Brookfield Asset Management, would own 49% of the bid vehicle under the proposed terms. Bellew and Breen, EU citizens, would own the remaining 51%.
According to EU rules, European carriers must be controlled and owned by the EU in a majority.
The deadline for Castlelake to make a firm offer to the UK government has been extended until July 5.
(source: Reuters)