Latest News
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Delta suffers a $200 million loss due to the US Government shutdown
Delta Air Lines announced on Wednesday that it expects to take a $200 million hit to its fourth quarter pre-tax profits due to the U.S. Government shutdown which ended last month. The company stated that the impact is about 25 cents a share. The Atlanta-based carrier forecasted an adjusted profit between $1.60 and $1.90 per share for the three months through December in October. The 43-day shutdown of the government affected flight operations, and thousands of air traffic control operators and other staff were forced to work without being paid. Flight cuts were also ordered by the Federal Aviation Administration at 40 major airports because of a lack of air traffic control. The longest government shutdown in history has disrupted thousands of flights, and lowered travel demand. The turmoil, combined with weather-related delays, has led some Wall Street analysts in the United States to reduce their fourth-quarter earnings predictions for U.S. airlines by up to 30%. Delta said that bookings have returned to the initial expectations after the shutdown ended. Demand is expected to remain healthy throughout the remainder of the quarter, and trend strong into early 2026. Ed Bastian, CEO of the airline, told a Morgan Stanley Conference that the airline experienced a drop in bookings between 5% and 10% immediately following FAA-mandated flights cuts. However the impact was only short-lived. Bastian stated, "We are looking forward to an excellent December and a great close to the calendar year." "I think we are done." Delta's share price was up around 3% during the afternoon trading. JetBlue said on Tuesday that demand for the fourth quarter was healthy. Bookings were in line with expectations, except for the brief period when the FAA ordered flight reductions. The New York-based airline said that its operations had also been affected by Hurricane Melissa, which hit Jamaica. This, along with cancellations due to the shutdown, led to a reduction in its fourth-quarter operating capacity and increased non-fuel costs. Reporting by Rajesh Kumar Singh from Chicago and AnshumanTripathy from Bengaluru. Editing by Shailesh Kumar and Aurora Ellis.
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Urals differentials unchanged; Kazakhstan reroutes its oil after CPC attack
Sources said that the differential between Russian Urals crude and Brent dated was stable on Wednesday. Kazakhstan also rerouted some oil exports to other destinations than the Caspian Pipeline Consortium (CPC), which had been attacked by a drone over the weekend. Five industry sources have confirmed that Kazakhstan will divert additional crude oil through the Baku, Tbilisi, and Ceyhan pipelines in December, after the CPC, its main export route suffered damage following a drone attack by Ukraine. According to a source, Kazakh producers could add up to 140,000 tons KEBCO crude oil in December. Ukraine has struck the Druzhba pipeline in Russia's Tambov central region, according to a source with Ukraine's GUR intelligence service. PLATTS WINDOW Traders reported that no bids or offers for Urals, Azeri BTC, and CPC Blend were made on Tuesday. Two sources with knowledge of the matter have confirmed that Bernd Bergmair (former majority owner of an adult entertainment company including the website Pornhub) has approached the U.S. Treasury to buy international assets from sanctioned Russian oil giant Lukoil. Reporting by Kirsten Doovan; Editing by Kirsten D.
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US FTC: Boeing must divest Spirit AeroSystems' assets before merging with Spirit AeroSystems
The U.S. regulator announced on Wednesday that it would require Boeing divest significant Spirit AeroSystems' assets in order to address competition concerns regarding its $8.3 Billion acquisition of the company which manufactures major fuselages and wing parts for aircraft, including the Boeing 737. The Federal Trade Commission has proposed an order that delays the merger planned by Boeing, which was scheduled to be completed before the end of this year. The proposed order is open for public comments for 30 days. Boeing's shares fell 2.3% intraday. The commission wants Spirit to divest its parts that provide aerostructures to Airbus, its European competitor. Airbus has already agreed to buy parts from Spirit. This divestment will address FTC concerns that the merger could allow Boeing to unfairly dominate Airbus's supply chain. Boeing's spokesperson stated, "We are pleased that the U.S. Federal Trade Commission has approved our acquisition of Spirit AeroSystems." While the transaction is not fully completed, Boeing remains committed to the completion of the remaining steps to complete the acquisition. This milestone will enhance our ability, to produce safe, high quality airplanes for our clients and benefit the flying community. (Reporting and editing by Doina Gregorio and David Gregorio; and Bhargav acharya in Toronto and Ryan Patrick Jones, in Seattle.
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Britain adopts regional controls on Spanish pork imports after lifting blanket ban
Britain announced on Wednesday that it will allow imports of pork from areas of Spain not affected by African swine flu (ASF). This is a reversal of a blanket prohibition imposed last weekend after the country reported the first cases of this disease in over three decades. This move aligns Britain's approach with that of the European Union, which restricts trading only in outbreak zones. Pork imports from other regions can resume, but those from Barcelona will remain suspended. In an emailed message, a Defra representative said that "all fresh pork and other impacted product from the affected region are restricted." The statement said that exports from areas in Spain that are free of disease can continue as usual. They also added that they will continue to monitor the situation. Spain confirmed that nine wild boars near Barcelona had been infected with ASF. This prompted Catalonia to take emergency measures, as the region is a major pig-farming area. The virus is not fatal for humans, but it can be deadly to pigs. There is no vaccine or treatment. Spain is Europe's biggest pork producer, and it's a major pork supplier to Britain. It has shipped 37,600 tons of pork worth more than 112 million euro ($130 million) so far in this year. After Spanish Prime Minister Pedro Sanchez called on Britain and other trading partner to continue purchasing from regions outside of the containment area, the decision was made. resumed shipments Earlier this week, Beijing relaxed its restrictions on Catalonia and allowed more people to travel to China. Officials in Spain said that other countries, including Mexico and Canada, have not yet adopted the same approach as Britain and the EU, and continue to ban pork imports from Spain. Task force to investigate the alleged involvement of EU Vets On Tuesday, work began in Barcelona to contain the outbreak. (Reporting and editing by Sam Tabahriti, Nigel Hunt, and Catarina demony).
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Houthis releases crew of Greek-operated freight ship struck in Red Sea
A maritime security source and an official from the operator of the Greek cargo ship Eternity C confirmed on Wednesday that the crew has been released. The ship was attacked by Yemeni Houthis in July, causing it to sink in the Red Sea. The crew of Eternity C, a Liberian-flagged ship, abandoned it before the ship sank after repeated attacks by militants aligned with Iran using sea drones and grenades. Rescuers rescued crew members from the Red Sea alive. Houthis claimed to have held a group, including a security guard. The United States Mission to Yemen accused the Houthis and demanded their unconditional and immediate safe release. The official of Cosmoship Management said that nine Filipino seafarers and one Russian, as well as one Indian, were expected to arrive in Oman on Wednesday evening. Houthis targeted the Magic Seas days before they struck the Eternity C. The crew of the Magic Seas was rescued from it before it sank. The attacks on the ships were a revival in a campaign of the Iran-aligned militants, who had attacked more than 100 vessels from November 2023 until December 2024 as a show of solidarity with Palestinians during the Gaza War. (Reporting and editing by Ed Osmond, Renee Maltezou)
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TikTok invests more than 37,7 billion dollars in Brazil's data center
TikTok announced on Wednesday that it will invest over 200 billion reais (about $37.69 billion) into a Brazilian data center. The data center is to be built at the Pecem Industrial and Port Complex, located in Ceara in northeastern Brazil. Monica Guise was the head of TikTok Brazil's public policy at an event with President Luiz inacio Lula da S Silva. TikTok said in a statement that the estimated amount includes investments of 108 billion reais for high-tech equipment until 2035. The company stated that the data center will begin operations in 2027. Omnia, a company that owns data centers and is owned by investment firm Patria, will be joining forces with renewable energy operator Casa dos Ventos to form a joint venture. TikTok said that the facility's energy supply will be exclusively renewable energy from dedicated wind farms. In April, it was reported that ByteDance - the Chinese parent of TikTok - was considering a large investment in a Brazilian data center. In October, Mines and Energy minister Alexandre Silveira confirmed the plans. At the time, he said that the estimated investment was 50 billion reais.
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Source: Ministers from Germany, France and Spain to meet in FCAS on December 11
On December 11, the defence ministers of Germany, France, and Spain will meet to discuss FCAS - Europe's next generation fighter jet project - according to a source with knowledge of the issue. FCAS, a 100 billion-euro (117 billion-dollar) Future Combat Air System, was announced more than eight-years-ago but has been mired by disputes between companies over work-share and prized technologies. Bloomberg was the first to report on this meeting. The next phase in plans to deliver a fighter flanked with drones for France and Germany by 2040 is at stake, mirroring an UK-ItalianJapanese initiative known as GCAP. The project is at a standstill due to disagreements between Dassault Aviation France and Airbus. Last month, French president Emmanuel Macron and German Chancellor Friedrich Merz talked about the project to try to move it forward.
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After a drone attack, Kazakhstan has rerouted its oil exports.
Five industry sources have confirmed that Kazakhstan will divert additional crude oil through the Baku, Tbilisi, and Ceyhan pipelines in December, after its main route for export, the Caspian Pipeline Consortium cut capacity due to damage caused by a Ukrainian drone strike. CPC, which transports over 80% Kazakhstan's oil and manages more than 1% global supply, temporarily halted its operations on Saturday, after an mooring near Russia's Novorossiisk Port was damaged. CPC resumed loadings Monday using the single point mooring that is currently operational. This allowed exports to continue with a lower capacity. The third SPM is scheduled for repair at CPC's Terminal. CPC has been reported to be rushing to complete the maintenance ahead schedule. Two sources have confirmed that Kazakhstan will increase shipments to BTC from the Caspian Sea Port of Aktau in December to 188,000 metric tonnes (47,000 barrels/day), an increase of about 30% compared to November. Tengizchevroil will supply 170,000 tonnes and the Kashagan oil field 18,000 tons. The port's capacity and oil quality standards in Aktau limit the volume of oil that can be transported through BTC. Kazakh producers can also export crude oil to Russia via Novorossiisk, Ust-Luga and the Druzhba Pipeline. However, these routes have lower margins because they are dependent on the capacity and capabilities of Russian pipeline operator Transneft. Sources said that the Russian pipeline system has been stretched to its limit after drone attacks on its refineries, export facilities and export terminals, which leaves little room for additional Kazakh flows. According to a source, producers could add up to 140,000 tonnes of Urals crude oil in December. The NCOC consortium that operates Kashagan and the Kazakhstan Ministry of Energy did not respond when asked for comment. TCO declined comment. TCO resumed BTC oil exports in November, after suspending them for a month in August because of excessive organic chlorides found in the Azeri BTC. Askhat Khasenov said in October that KazMunayGas was in discussions to increase BTC oil shipment to 2.2 millions tons by 2026 from 1.2million tons this year. Kazakh crude oil reaches Baku, Azerbaijan, by tanker, mainly from Tengiz, Kashagan, and BTC fields. It then flows through BTC into Turkey's Ceyhan Port. Reporting by. (Editing by Louise Heavens, Mark Potter and Mark Potter).
Minister: Hungary's exemption from US sanctions against Russia energy is permanent
Hungary claimed on Saturday that it had received an indefinite waiver of U.S. sanctions for the use of Russian oil and natural gas. However, a White House representative reaffirmed that this exemption was only valid for one year.
Last month, U.S. president Donald Trump imposed sanctions related to Ukraine on Russian oil firms Lukoil & Rosneft. These sanctions carried the threat of additional sanctions against entities who buy oil from these firms.
Viktor Orban met Trump, a Trump ally for many years, at the White House last Friday in order to push for a reprieve. Hungary heavily relies on Russian energy, and Orban faces an election in close proximity next year.
The prime minister was very clear. Peter Szijjarto, Hungarian foreign minister, said on Facebook that he had agreed with President Obama to obtain an exemption from sanctions for all time.
There are no sanctions indefinitely on the oil and gas exports to Hungary.
In an email sent on Saturday, a White House official reiterated that the exemption was for a year.
HUNGARY IS EXPECTED BUY U.S. LNG
Officials added that Hungary will also diversify their energy purchases, and have committed to buy U.S. Liquefied Natural Gas with contracts worth around $600 million.
Hungary's continued reliance on Russian Energy since the start of the conflict with Ukraine in 2022 has prompted criticism from several European Union allies and NATO members.
Orban said that Hungary has received a permanent exemption from energy imports through the TurkStream pipeline and Druzhba pipeline.
Orban said that there are no sanctions in place to restrict or increase the cost of supply for Hungary through these routes. Orban stated that this exemption was general and had no time limit.
According to figures from the International Monetary Fund, Hungary purchased 74% of gas and 86% oil in 2024 from Russia. The IMF warns that a cutoff of Russian gas across all of Europe could cost Hungary over 4% of GDP.
Orban stated that without the agreement energy costs would have soared, hitting the economy as a whole, increasing unemployment, and causing "unbearable price increases" for both households and businesses.
(source: Reuters)