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France and Britain are hoping that a 'taxi-boat' plan for migrants will help slow the record Channel crossings
A dinghy was seen in the early morning hours of this week motoring along a large beach in northern France. It stopped every few hundred meters to pick up migrants heading for Britain. Four French police chased the migrants, but they failed to catch them before they reached the water's edge. The dinghy was soon chugging along the sea with around 70 people aboard, adding to the record number of migrants who have crossed the Channel in this year. Right-wing opponents of British Prime Minister Keir starmer have taken the data and reminded him that he had promised to "smash the trafficking groups". France and Britain are hoping to announce measures next week at their summit that will allow French police officers to intercept these 'taxi boat's - a brand new phenomenon – up to 300 meters (yards) away from the shore, rather than only when lives are in danger as they do now. The police, migrants and activists interviewed were skeptical that such a plan could work. "I don't think this will ever be done," said Julien Soir a representative of the police union in Lille, a city located in northern France. "Getting it running is impossible." He claimed that the police had already been stretched to cover 180 km (1112 miles) and lacked the training and equipment needed for seaborne missions. The police also worry about drowning in the event that they drop heavy equipment into the water. They may also be held personally liable if migrants are killed or injured while on an intervention. Angele Vettorello is a coordinator for the Utopia 56 charity, located in Calais. She said that despite increased French police patrolling the beaches, and even using drones sponsored by Britain, numbers are still increasing. She said that the proposed measures will only make an already dangerous crossing more dangerous - 73 migrants lost their lives last year while navigating one of the busiest shipping routes in the world. She said that if implemented, the plan would "lead even more deaths... more distress." Right-Wing RISE In polls, the influx of migrants helped Nigel Farage’s Reform UK to surpass Starmer’s Labour Party. Farage, who is a long-time immigration hardliner and right-wing populist, proposed that the Navy intercept migrant boats and bring them back to France. Lawyers claim that this would only be possible if France consented. This year, nearly 20,000 asylum seekers arrived in Britain by small boat. That's a 50% rise compared to 2024. The French and British authorities attribute the increase to unusually warm weather. Peter Walsh from Oxford University’s Migration Observatory said that maritime interception could stop more migrants, but it would not have any impact on the long-term trends driving the surge of migrants, such as multiple conflicts and Britain’s allure to English-speaking people. Britain wants to also negotiate a return agreement with France that it had before leaving the European Union. In a filthy camp of migrants near Dunkirk I spoke to several migrants unaware of this new proposal. They said that it would not stop them from crossing. Israrullah, a 26-year-old Afghan man, left Afghanistan in 2021 when the Taliban became angry about his family's involvement with the U.S. Army. He failed to cross the border three times. Twice he was stopped and once, his boat had a problem. Lodin yearned to work in a UK fulfillment warehouse. He would do anything to get there. He said, "We don't fear death." "I must reach my destination." Nisarahmad, an Afghani, was a migrant for almost his entire adult life. He left his native region of Nangarhar, four years prior, and had lived in the city ever since. He made two unsuccessful attempts to cross the border, both of which were foiled by the police. He said, "I will try until I succeed." I've been on many dangerous roads. "I will pass through this one as well." (Additional reporting from Mohammad Yunus Yawar, in Kabul, Marco Trujillo and Manuel Ausloos in Calais, Abdul Saboor in London, Gonzalo fuentes in Calais, Michael Holden in London, Richard Lough, Philippa Fletcher, and Philippa Lough)
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French air traffic controllers strike for second day disrupts flights
The strike of French air traffic controllers, now in its second day, caused further flight delays and cancelations at the beginning of Europe's busy travel season. The civil aviation agency DGAC has told airlines that 40% of flights will be cancelled at three of Paris' main airports this Friday due to the strike. Air traffic controllers claim the strike is caused by a lack of staff and outdated equipment. DGAC also said that up to half of the flights at France's airports in other regions, mainly in the south, had been affected. The French Transport Minister Philippe Tabarot deemed the strike as unacceptable. In an interview with CNews, he stated that the goal was to upset as many people possible. DGAC warns that even with cancellations, passengers may still experience delays and disruptions. Airlines for Europe (A4E), a lobby group, announced late Thursday that 1,500 flight cancellations had occurred during the two-day walkout, affecting 300,00 passengers and causing delays. (Reporting and editing by Makini brice)
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Alstom wins 2 billion euro deal from New York Metropolitan Transportation Authority
Alstom, a French train manufacturer, announced on Friday that it received a $2.45 billion order from the New York Metropolitan Transportation Authority for M-9A railcars to be supplied to the Long Island Rail Road (LIRR) and Metro-North Railroad. Alstom announced that the contract, which MTA announced in June, would be booked during the second quarter 2025/26 fiscal years. MTA announced last month that Alstom pilot railcars would be delivered by 2029, and will enter service on Long Island Rail Road as passenger cars in 2030. It added that all 316 railcars included in this order would be delivered by the year 2032. There are 160 cars for Long Island Rail Road, and 156 cars for Metro-North Railroad. MTA Chairperson and CEO Janno Lieber stated in June that this deal was a first step in the agency’s plan to buy nearly 2,000 railcars in its $10.9 billion capital program.
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Air France-KLM acquires majority stake in Scandinavian Airlines SAS
Air France-KLM announced on Friday that it intends to increase its stake in Scandinavian Airlines SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. Air France-KLM stated that the purchase is subject to regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing based on SAS’s most recent financial performance including EBITDA, net debt and other metrics. The Scandinavian carrier welcomed the announcement and called it a "defining" moment that marked Air-France KLM’s commitment to strengthening SAS. Anko Van der Werff, SAS CEO, said: "It will not only bring stability but also deeper industrial integration as well as the full support of one of the leading airline groups in the world." Together, we'll be better positioned for greater value to customers, colleagues and the region. SAS has said that it will continue to invest in the fleet and network. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs to. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government will retain its 26,4% stake and its seats. Reporting by Dominique Patton and Bart Meijer; Editing and production by Margueritachoy and Lincoln Feast.
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The Indian Rupee-Trimmed Fed Rate Cut Bets Pull Forward Premiums Off One-Month Peak
The Indian rupee, and the dollar-rupee premiums fell from their one-month highs on Friday. A stronger-than-expected U.S. employment report reduced bets on Federal Reserve rate reductions. Traders were also watching a looming U.S. trade deadline. The rupee fell to 85.50 near the start of trading after hitting a peak for one month on Thursday. It then pared losses and quoted at 85.33, little changed. The rupee was helped by a drop in the dollar index after a previous rise. Asian currencies were mostly in choppy territory. The implied yield on the dollar-rupee 1-year note fell by 5 basis points, to 2.02%. Traders noted that the near forward premiums may also be under downward pressure, as the central bank has not increased the amount of liquidity they intend to withdraw from banks. Many market participants were surprised by this, as they had anticipated a higher quantum due to an increased surplus. The U.S. employment data caused traders to almost wipe out bets on a Fed cut in July. Odds of a cut in September dropped to less than 75%, from nearly 94% prior to the data. The market is waiting for tariff news, said a Mumbai-based trader. He was referring to a deadline of July 9 for countries to reach trade agreements with the U.S. Bloomberg Television reported that the U.S. Treasury secretary Scott Bessent predicted a "flurry of" trade agreements to be announced before the deadline. DBS stated in a report that it is possible to reduce the umbrella tariff on India from the current 10% to a baseline rate of 10% by taking cues and agreements with other countries. As part of the "Liberation Day", reciprocal tariffs on April 2, U.S. president Donald Trump threatened to impose a duty of 26% on Indian goods. This was temporarily reduced to 10% in order to buy more time for negotiations. (Reporting and editing by Jaspreet K. Kalra)
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Air France-KLM acquires majority stake in SAS
Air France-KLM announced on Friday that it intends to increase its stake of Scandinavian airline SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. It said that the purchase is subject to receiving the necessary regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing, and will be based on SAS’s most recent financial performance including EBITDA, net debt, and other factors. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government retains its 26,4% stake and its seat on the board. (Reporting and Editing by Marguerita Chy)
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Air shipments from China to the US are disrupted by the end of the tax-free loophole.
Trade groups and analysts reported that the volume of air cargo shipments from Asia has decreased by double-digits since early May when the U.S. canceled a tax exemption for low value packages coming from China. Data from the International Air Transport Association showed that air cargo demand from Asia into North America fell 10.7% in May, compared to the same month one year ago. This "shows the dampening effects of changing U.S. Trade Policies," said IATA Director-General Willie Walsh in a Monday report. Tax exemptions for shipments under $800, often sent via air to U.S. clients of low-cost online platforms like Shein and PDD Temu, are known as de minimis or "too small to matter". After a trade agreement between the U.S., China and China in mid-May, however, these shipments from China and Hong Kong are taxed as low as 30 percent. The two sides continue to negotiate trade. This week, the U.S. relaxed export restrictions to China on software, ethane, and aerospace, in advance of the U.S. reimposing a wide range of tariffs that will target multiple countries on July 9. Industry experts reported that the volume of low value e-commerce shipping from China to America in May was particularly sharply down. Air cargo consultancy Aevean estimates that such shipments decreased by 43% from the previous month in May, but increased to other major export markets, including Europe and South-East Asia. Marco Bloemen said that it is unclear whether the dramatic drop will continue. Businesses had expected the de minimis stop and the tariff rate has been lowered in the middle of the month. Will those ecommerce players return to the U.S., now that they pay 30% duty instead of zero duty? Bloemen stated. He said that companies turning to other markets because of the uncertainty surrounding U.S. Trade Policy is likely to have a negative impact on shipment volumes. "We expect that trend to continue. More e-commerce to Europe is expected to take place in June, as well as to other markets such Latin America." Air cargo consultancy Rotate stated that e-commerce platforms are focusing on alternative markets to replace the lost U.S. market, with significant growth in exports to Europe and Asia-Pacific. Shein and PDD didn't immediately respond to requests for comment. CARGO CUTBACKS As a result, the cargo business of airlines has seen a boost as low-value ecommerce from Asia is taking a larger share of air freight worldwide. Aevean data shows that in 2018, only 5% of the goods from China were shipped to the U.S. via air. Industry experts say that as demand for trans-Pacific freighter flights fell in May due to the decline of Asia-to-U.S. routes, airlines began moving them elsewhere. They said that some of this demand is now returning as companies are taking advantage of tariff pauses in the U.S.-a number of other countries. However, flight frequencies have been reduced. Cirrus Global advisors, an e-commerce consulting firm, said that some of the bigger players who were chartering 3 flights per week had reduced this to 2. Rotate data revealed that direct freighter capacity between China & the U.S. was 11% less in June compared to the previous month, erasing the growth of capacity in the last year. Dimerco Express, a freight forwarder specializing in Asia, estimated that its online bookings fell by 50% between May and June. In a recent report, the company said that scheduled freighter flights are still being cancelled. The de minimis regulation, which dates back to 1938, was criticized by American legislators as a loophole allowing Chinese products to avoid U.S. tariffs, and allowing illegal drugs and precursors used to create opioid fentanyl, to enter the U.S. without being screened.
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Petroecuador, the state oil company of Ecuador, declares force majeure in its operations
The head of Ecuador's state oil company Petroecuador announced on Thursday that all operations, including crude imports, were suspended after two pipelines important to the company's operation stopped pumping. Heavy rains in Napo, a province of the Amazonian region, have accelerated erosion and threatened infrastructure. The SOTE and OCP pipelines owned by the state suspended pumping this week. Leonard Bruns, Petroecuador's chief executive officer, said: "Force majeure was declared to allow (Petroecuador), to act with all of the necessary tools." Due to the suspension of transport operations, the company said that it has also begun closing down oil wells. According to a report released on Thursday by Ecuador's Hydrocarbons Regulating and Control Agency, the country's crude oil production has fallen about 133,000 barrels per daily (bpd). Since 2020, erosion along the Coca River has spread, damaging oil infrastructure, roads, and now the Coca Codo sinclair hydroelectric facility, the largest one in Ecuador. The authorities said that temporary bypasses on both pipelines are being constructed to resume operation, and studies have been approved for permanent rerouting in order to avoid the affected area. (Reporting and writing by Alexandra Valencia, Editing by Brendan O'Boyle & Kylie Madry; Writing by Natalia Siniawski)
Armenians are increasingly worried about war with Azerbaijan due to escalating ceasefire violations
Khnatsakh residents are anxious at nightfall.
Locals claim that every evening, around 10 pm, Azerbaijani soldiers fire into the night skies from their positions high above.
Villagers say that bullets have been hitting houses regularly, but no one has been injured so far. Azerbaijan has denied that its troops are firing across the border and accused Armenian forces of violating ceasefire.
Karo Andranyan (66), a retired mechanic, said, "It is very tense at home because we have children, little ones and elderly."
Azerbaijani flags and a military position on a hillside are only 100 metres away from his door. This is a reminder that Armenia's bitter enemy is close by. Since the early 1990s, the heavily militarized 1,000-km border is closed.
Two major wars have been fought in the last 40 years. This has destabilised the Caucasus, a region which is important for Russia, Iran, and Turkey because it contains major oil and natural gas pipelines towards Europe.
Experts say that the rising tensions along the border increase the likelihood of a new conflict between Armenia and Azerbaijan, as the two countries approach a crucial juncture in their tortuous peace process.
In March, both sides announced that they had reached an agreement on the outline of a treaty of peace to be signed by 2026. This raised hopes for reconciliation. The draft envisages both sides delineating their shared borders, but requires Armenia to amend the constitution before Azerbaijan can ratify the deal.
After months of relative calm, the reports of ceasefire breaches along the border are now soaring.
Andranyan believes the gunfire at night is meant to intimidate both the local villagers and the small garrison Armenian troops that are stationed in the village. He said that the village, which according to census data had 1,000 residents, was emptying because locals were afraid of a return to war.
What are we to do?
Despite the fact that there has been no death on the border in over a year, cross-border gunfire is reported frequently. Azerbaijan has made the majority of accusations against Armenia since March. These include cross-border gunfire, and damage to property.
Both sides have denied claims of ceasefire violation.
Since 2020, the simmering conflict has decisively shifted in Azerbaijan’s favor. The oil and gas producer regained territory lost during the 1990s. It also progressively reestablished control over Nagorno Karabakh where ethnic Armenians established de facto autonomy since the collapse the Soviet Union. It retook Karabakh in 2023, causing 100,000 ethnic Armenians from the region to flee to Armenia.
Marco Rubio, the U.S. secretary of state, told a hearing of Congress last month that there was "a real risk" of war. He stated that the U.S. wished Azerbaijan to "accept a peace accord that doesn't cause them to invade a neighboring nation, Armenia."
Azerbaijani president Ilham Aliyev has been in power since 2003. He said that in January, Armenia was a "fascist menace" that must be eliminated.
Laurence Broers is an expert in Armenia and Azerbaijan from London's Chatham House. He said that a full-scale conflict was possible but more localised clashes are more likely.
He said Azerbaijan's population, which is 10 million, is three times that of Armenia. It has little incentive to sign a peace agreement quickly and could instead use smaller scale escalation to force its neighbor to make further concessions during the talks.
Ilham Aliyev's strategy of escalation and militarization was a great success, he said.
The Armenian authorities have insisted that there will not be a war. Nikol Pashinyan, the Prime Minister of Armenia, said in a speech delivered last month that "despite all arguments and all provocations", the two countries will not fight again.
Azerbaijan’s Foreign Ministry responded to questions regarding the tensions along its border by referring to previous comments.
In a May statement, Baku said it was committed to peace and had no territorial claims against Armenia. In a statement in May, it said that Yerevan’s actions "call Armenia’s commitment to peace into question".
The Azerbaijani Defence Ministry has denied Armenian reports that cross-border gunfire had taken place.
Tensions in the South
The conflict is centered in Armenia's southernmost region of Syunik, where the majority of ceasefire violations have been reported.
Syunik divides Azerbaijan's main body to the east and the Azerbaijani enclave of Nakhchivan in the west. It is also a crucial trade route between Armenia and Iran, with which it shares a border to the south.
Azerbaijan demands that Armenia build a route through Syunik and Nakhchivan since 2020. Baku said the passage would be Armenian territory, but with minimal control from Yerevan.
Azerbaijani officials also claim that the southern part of Armenia was historically Azerbaijani land, but they haven't made a formal territorial claim.
Armenia has closed its border with Azerbaijan and its frontier with Turkey, a close ally to Baku. This makes its border with Iran the lifeline of trade. Syunik's corridor could cut off the country's access to its remote mountainous border.
Armenia and Iran share a warm relationship, despite Armenia’s Christian faith and its increasingly pro-Western orientation. Iran was Armenia's largest importer in 2022. Tehran's Defence Minister visited Yerevan in May. Iranian media reported that he expressed Iran's opposition against redrawing borderlines in the region.
Armenia's tensions with its traditional ally Russia are a major problem. Russia opposes Armenian efforts to move closer to the west and has strengthened its ties with Azerbaijan.
"Armenia has open borders with Georgia and Iran. "This keeps the country moving," said Tigran Grizaryan, director at the Regional Centre for Democracy and Security, a think tank in Yerevan.
Grigoryan stated that Azerbaijani demands for the corridor may be the spark to future military escalation. He said that the ceasefire violation could be an attempt to force Armenia to make concessions over the issue.
He said: "If Armenia lost its border with Iran that would be a disaster."
Requests for comments from the Iranian and Russian Foreign Ministries were not answered.
The Iranian connection is evident throughout Armenia's south.
Iranian road workers work to widen a mountainside road that is clogged by lorries coming from the south, headed north toward Georgia and Russia.
Some locals are selling red wine in plastic bottles to newly-arrived truckers from Iran where alcohol is prohibited.
Meghri is the historic town at the southernmost point of Armenia, and the gateway to Iran.
Bagrat Zakaryan, Bagrat's deputy mayor, said that the town, which is only 16 km from Azerbaijan and has a population of 4,000, had its everyday life overshadowed due to tensions with Baku.
He said that "given the recent events of Karabakh and what President Azerbaijan says, there's this feeling of terror."
Opportunity for Peace
Some people are more optimistic than others about the prospects of peace.
Armen Davtyan, who was deputy director at Meghri railway station from 1993 to 1993, sat on a crossroads that connected Yerevan with Baku and Iran with the Soviet Union until its dissolution in 1991.
After the Karabakh War of 1988-1994 and the closing of the border, Davtyan began working as a borderguard.
A derelict train with an emblazoned Soviet emblem lingers in the parking lot of the station, just metres away from the Iranian border.
Davtyan said that he remembered fondly the days before the war, when Armenians worked with Azerbaijanis on the railways. He hopes to see cross-border trains again arrive at Meghri Station one day.
He said: "I understand that some people fear that the Azerbaijanis may return if the rail reopens."
"But if people in 2025 are still afraid of us opening up transport links, that seems a bit absurd." (Reporting and editing by Daniel Flynn; Felix Light)
(source: Reuters)