Latest News
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Tenerife welcomes a cruise ship affected by the hantavirus epidemic
The cruise ship that was hit by the deadly hantavirus epidemic arrived early on Sunday morning near Granadilla Port in Tenerife. The cruise ship will anchor near the Port of Granadilla in Tenerife for the evacuation and re-boarding of passengers. According to Spanish officials, the passengers will be tested to make sure they are asymptomatic by Spanish health authorities. They will then be transported on small boats to land. The passengers will be transported by sealed-off buses to the main airport of the Spanish island, which is about 10 minutes away. From there they will board their planes to fly to their respective countries. As a precaution, all passengers aboard the luxury cruise ship MV Hondius were deemed high-risk contacts by Europe's Public Health Agency late on Saturday. According to Spanish authorities, the evacuation will begin between 7:30 a.m. and?8.30 a.m. (06300-0700 GMT). Government officials announced on Saturday that Spanish nationals will disembark in groups first, followed by other nationalities. The ship will sail to Holland where it will be disinfected. Cape Verde's coast was the first port of call for the ship, which left on Wednesday to head towards Spain after World Health Organization and the European Union requested that the country?manage evacuation of passengers following the detection of the hantavirus. The WHO Director-General Tedros Adhanom Ghebreyesus, along with Spain's Interior and Health Ministers, and its Minister for Territorial?Policy, arrived in Tenerife on Saturday evening to coordinate the arrival of a ship. The WHO announced on Friday that 8 people were sick, three of whom died - a Dutch family and a German citizen. The WHO said that six of these people have been confirmed as having contracted the virus. Two other cases are suspected, it added. Hantavirus is usually transmitted by rodents, but can be transmitted from person to person in rare instances. WHO says the risk is low for the global population, but moderate for passengers and crew aboard the ship. Reporting by Corina Poons and Victoria Waldersee, Editing by Philippa Fletchcher
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Qatari LNG tanker sailing towards Hormuz Strait, shipping data shows
According to LSEG shipping information, the Qatari 'LNG tanker Al Kharaitiyat sailed towards?the Strait?of?Hormuz after departing Qatar Ras Laffan enroute to Port Qasim Pakistan on?Saturday?. If the passage is successful, it will be the first time a Qatari LNG-tanker has transited the Strait since the beginning of the war against Iran. QatarEnergy has not yet responded to the?comment. According to LSEG, the vessel is managed by Nakilat Shipping Qatar Ltd, and sails?under Marshall Islands flag. It has a cargo capacity of 211,986 cu m. Sources at the time said that Iran's Revolutionary Guards stopped two Qatar LNG tanks, Al Daayen, and Rasheeda on April 6, and told them to remain in their positions without any explanation. Qatar is the second largest LNG exporter in the world, with most of its shipments going to Asian buyers. The 'Iranian attack' knocked down 17% of Qatar LNG export capacity. Repairs are expected to take three - five years. Reporting by Andrew Mills and Timour Azhari, Writing by Eman Aboushassira, Editing by Alexandra Hudson
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Airport says that a Frontier Jet hit and killed a pedestrian on the runway in Denver while taking off.
The airport released a statement on May 9, stating that a Frontier Airlines passenger plane struck and killed a pedestrian?on the runway?at Denver International Airport?during a planned takeoff to Los Angeles late Friday night. Frontier reported that it had struck a person during takeoff, and the flight was abandoned. The unidentified pedestrian had jumped over the perimeter fence and was struck just two minutes after crossing the runway. The?statement' said that the individual was not believed to be a member of staff at the airport. A brief engine fire caused smoke to fill the cabin of an Airbus A321 carrying 224 passengers, seven crew members and all were safely evacuated. The airport reported that 12 people had minor injuries, and five of them were taken to hospitals in the area. Frontier stated that it was investigating the incident, and gathering additional information in coordination with airport authorities and other safety?authorities. It said that the airport had closed the runway where the incident took place and expected to reopen it within a few hours. They also added that they had 'examined and found intact the fence line which the individual crossed. Sean Duffy, the U.S. Transport secretary, said that local?law enforcers are investigating the occurrence with the support of the U.S. Federal Aviation Administration (FAA) and the Transportation Security Administration. Reporting by Shivani Tana, Preetika Parshuraman and Gursimran K. in Bengaluru. Editing by Aidan Lewis & Toby Chopra.
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UK warships deployed to Middle East in anticipation of possible Hormuz missions
Britain announced on Saturday that it would be sending its warship HMS Dragon, to the Middle East to prepare for a possible multinational 'effort to protect shipping through the Strait of Hormuz once conditions permit. HMS Dragon was an air defence destroyer that was sent to Eastern Mediterranean in March shortly after the Iran War to defend Cyprus. The move to the Middle East comes after France deployed its carrier strike group in the southern Red Sea as part of a joint defensive plan to restore confidence in the trade routes. A spokesperson from the British Ministry of Defence stated that "the?prepositioning of HMS Dragon" is part of "prudent planning". This will ensure the UK's readiness to join a multinational coalition led by France and the UK, in order to secure the Strait when the conditions permit. France and Britain are preparing a plan to ensure a safe transit through the Strait when the U.S. and Iran reach a possible end of their 10-week-old war. Plan would require coordination with Iran, and?adozen countries have expressed a willingness to?take part. The Royal 'Navy is stretched and has to retire ships before they are replaced. (Reporting and editing by Alexandra Hudson.)
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Putin says to Fico that Russia will meet Slovakia’s energy needs
At a meeting at the Kremlin, Vladimir Putin told Robert Fico, Slovakia's Prime Minister on Saturday that Russia would do all it could to meet Slovakia’s energy needs. Slovakia is one of the few European countries that still buys?Russian oil and gas. The Druzhba Pipeline, built by the Soviets, is used to transport Russian oil into Slovakia. TurkStream is used to deliver natural gas from Russia. Fico arrived at Moscow for the celebrations to mark 'the Soviet Union’s victory over Nazi Germany during World War Two. In comments broadcast by?national television, Putin said that he would do "everything" to meet Slovakia's energy needs. Fico had chosen not to attend the Victory Parade at Moscow's Red Square. The Russian state media reported earlier that Fico would be attending the parade. Slovakia, a member of the EU, has "sought to keep political ties" with Russia. It has also argued that it is "too expensive to wean ourselves?"off Russian supplies after building their infrastructure around them. Reporting by Dmitry Antonov, Vladimir Soldatkin and Guy Faulconbridge; Editing by Aidan Lewis, Guy Faulconbridge
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Why Americans are paying for unfinished power projects
Unknowingly, millions of Americans finance electric grid projects without realizing any benefits. According to an analysis of regulatory disclosures, policymakers are allowing utilities to charge customers for transmission lines and power plants long before they have been built. This increases bills for the near future in exchange for the promised savings decades down the line. Incentives are being offered to boost grid upgrades in a time when artificial intelligence data centers demand a lot of power. However, they also increase power bills for businesses and households. In the past, utilities that wanted to invest in expensive infrastructure projects had to obtain loans from investors and banks, and were only allowed to pass on those costs to their customers once the projects were completed. These projects can also be financed ahead of time under the Construction Work In Progress (CWIP), a benefit which boosts cash flow for electric utilities and reduces their borrowing costs. These fees can amount to several dollars per household, multiplied by millions of customers. According to a review involving several thousand pages of rate disclosures from electric utilities, at least 40 U.S. States now offer some form of CWIP incentive. This is twice as many states as a decade earlier, when a study by the economic consultant Brattle Group revealed fewer than twenty states had CWIP provisions. Until now, there have been no reports on the extent to which CWIP policies spread over the last five years in tandem with the explosion in construction of data centers. Two dozen analysts, industry officials and consumer watchdogs were also interviewed to understand the impact these policies have on the repair and buildout of the grid, as well as the electricity bills for American households. CWIP policies were used to fund a variety of large energy - and infrastructure projects. These included the Vogtle reactors in Georgia which had significant cost overruns. Another project in Nevada is raising bills for benefits that will be realized decades from now. And a Virginia offshore farm has collected around $2 billion before it even began operations. The?U.S. After decades of relatively low demand for electricity, the 'U.S. According to U.S. regulators, the electric grid's buffer reserve has become dangerously thin across several regions. This increases the likelihood of rotating blackouts. Grid operators expect electricity demand to increase by more than 2% annually through 2045 after an average annual growth rate of 0.5% between 2009 and 2024. Reporting indicates that many of the state CWIP policies were introduced only in the last few years as grid tightness increased. Missouri Governor Mike Kehoe reversed a ban on CWIP incentives in Missouri that had been in place for 50 years to address the rising demand of power from data centres. Arkansas, Kansas Oklahoma and North Carolina all have CWIP provisions in place since 2024. In a press release, the Governor's?office stated that "Governor Kehoe is convinced CWIP encourages new energy generation and reduces long-term financing cost passed on to ratepayers." Without CWIP, utility bills would increase dramatically when a new plant is brought online. CWIP allows for these costs to be recouped more slowly, reducing the price shocks that customers experience. The National Governors Association (NGA), which represents state Governors, has stated that it doesn't take a stance on if CWIP would be appropriate for specific states or projects. Business and consumer groups have criticized?CWIP, claiming that it has increased power costs to fund projects which may not benefit them. Paul Cicio is the president of Industrial Energy Consumers of America (a trade group representing large manufacturers). "The average ratepayer doesn't know this is happening." WHY WAIT DECADES for a payout? According to the U.S. Energy Information Administration (EIA), U.S. electricity prices have already increased by 40% in the last five years in order to pay for massive investments in an aging electric grid. In hotspots such as Virginia, Maryland and Pennsylvania, data center prices have risen double-digits in the past year. Ben Inskeep is the program director of Citizens Action Coalition of Indiana in Indianapolis, a consumer watchdog organization. He said that "huge rate increases have created a massive affordability crisis for electric power." "CWIP incentives add insult to injury for customers." Utilities, states and other stakeholders say that CWIP incentives can be crucial to kick-starting the types of projects required to shore up the grid and meet the growing demand after decades of underinvestment. They also claim that these provisions will lower the costs for ratepayers in the long run by reducing the financing costs. According to Berkshire Hathaway's disclosures, NV Energy, a utility owned by Berkshire Hathaway, charges an average customer $4 a monthly to cover financing costs for long-range high-voltage lines that are scheduled to come into service in 2028. Utility says that using CWIP as a way to finance the project will be cheaper than borrowing money from Wall Street. This will save money for ratepayers. Mark Garrett, consultant at Nevada's Bureau of Consumer Protection, said that the benefit calculated - as lower rates – could be as low as 0.1%. It would take a half-century to see the benefits. Garrett stated that a ratepayer must stay with the CWIP for at least 52 years to receive any benefit. This means that a 40-year-old average ratepayer will be 92 years old before they see any benefits from the CWIP model. NV Energy has not responded to messages seeking comment about Garrett's analysis. According to regulatory disclosures, in Virginia, the state with the largest concentration of data centres, Dominion Energy has already collected about $2 billion from electric customers for a $11.5 billion offshore farm that is still under construction. This amounts to an average monthly charge of around $11.23, which is the peak amount. Dominion executives claim that the CWIP structure is expected to save ratepayers about $2 billion in the 30-year life of the project. Wall Street analysts have described the capital expenditure by U.S. utilities as a super-cycle of investment that will surpass $1 trillion over the next five year period. According to financial results, utility companies earn a rate of return that ranges between 9% and 12% on their capital expenditures. Are Georgia's nukes a cautionary tale? CWIP incentives often come with provisions that protect utilities from delays and cancellations as well as cost overruns. Ratepayers are left to pay the bill, according to Jason Walter, a University of Tulsa economist. This is a concern because there has been a long history of projects that have failed, were delayed or over budgeted in the U.S. Walter stated that "if a project - particularly one involving nuclear energy - cannot attract private investment without a government backstop, this is a clear indication that it may not be an economically responsible investment." "Forcing captive ratespayers to serve as a 'bank' for speculative project serves no clear public benefit." In some cases, the structure has already triggered a public backlash. Georgia voters ousted two?Republican Public Service Commissioners in November. This was a result of a referendum against CWIP, which was sparked by massive cost overruns on the construction of two Vogtle reactors. Georgia regulators report that the project was seven years late and cost $35 billion, which is more than twice as much as the initial estimate of $14 billion. Georgia regulatory documents show that households in the state have paid an average of $1,000 in CWIP costs since 2009, as electricity rates rose sharply. Patty Durand is the director of Georgians For Affordable Energy. She said that Georgia's nuclear quest should be seen as a warning across the nation for the nuclear hype currently underway. "Georgia's ratepayers suffered a severe blow, and any elected officials who support these high-risk projects could suffer the same fate as the two commissioners, who lost their seats, due to consumer anger."
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US Postal Service suffers $2 billion loss in a quarter as cash shortages increase
The U.S. The U.S. USPS reported that mail volume fell 6.3% during the quarter ending March 31, while operating revenues rose 2.3%, to $20.2 billion, compared with the same period last year. USPS announced last month that it would suspend payments to employers for a federal pension plan to save cash. It also plans to increase the price of first class?mail stamps by 82 cents per stamp, from 78 cents. This will take effect on July 12. USPS reported total net losses of?$120 billion since 2007, as the volume of its most profitable product - first class mail - has dropped to its lowest level since?late 1960s. Postmaster General David Steiner stated that "we are in a financial crisis and are taking serious steps to conserve funds for our operations." "To avoid disruption, and to maintain our role in supporting American commerce and public opinion, we need urgent Congressional action. We must expand our borrowing power and remove outdated restrictions on the organization." USPS said that the suspension of employee pension contributions would save $200 million every two weeks or $2.5 billion by September 30. USPS received approval last month from the Postal Regulatory Commission to impose a 'temporary 8% increase in price for priority mail and packages deliveries. This was done to address 'rising?transportation costs and fuel prices. USPS intends for the surcharges to remain in place until January 17, 2027. Steiner stated on Friday that the developments with customers such as Amazon and DHL are encouraging. Steiner announced in March that the Postal Service would be hiring restructuring advisors to address its growing financial problems. (Reporting and editing by Nick Zieminski, Matthew Lewis, and David Shepardson from Washington)
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Azul Brazil faces a $200 million fuel loss this year. Restructuring to cushion the blow
Azul, the Brazilian airline, expects to take a hit of about $1 billion ($204.15m) from higher jet fuel prices in this year, but believes that it is better placed than its peers to absorb the effect after a recent restructure, according CFO Antonio Carlos Garcia. Garcia, who came to Azul from Embraer in April, just as the airline was exiting Chapter 11 bankruptcy proceedings noted that fuel accounted for about 30% of Azul's costs. The sharp rise in oil prices has also affected the firm quickly. Since the Iran War disrupted traffic along the 'Strait of Hormuz', global airlines have been dealing with soaring prices. This is the worst crisis the industry has faced since the COVID-19 Pandemic. Azul is facing its first major test after restructuring. Azul's rival?LATAM Airlines estimates a $40-million hit to its first quarter results and an additional fuel expense of $700 million for the second quarter. Garcia stated that Azul could offset half of the hit due to its adjusted capacity and revenue growth. As part of its restructuring, the carrier already reduced capacity. This is a trend that has been seen in other industries as costs rise. AZUL'S MITIGATION STRATEGY Garcia, in an interview with Azul on Friday, said that the airline faces lighter aircraft delivery obligations than other competitors. The airline expects to deliver four Embraer E2 aircraft this year, and seven Airbus widebodies. Garcia stated that the prices would be more favorable than previous twin-aisle agreements. In February, the airline emerged from Chapter 11 after a'sweeping restructuring' that reduced obligations by $2.5billion and included a United Airlines investment. The airline also received an investment from American Airlines, which is currently being reviewed by the antitrust watchdog CADE. NEW CFO'S FOCUS ON DISCIPLINE Garcia stated that the company intends to relaunch its American Depositary Receipts program by late may or early juin. Azul's executive director said that his primary focus would be on improving cash generation and cost discipline. Analysts welcomed his appointment to replace Alex Malfitani, Embraer's long-time predecessor. He helped Embraer recover after the COVID-19 Crisis and a failed commercial aircraft deal with Boeing. Embraer shares increased by more than fourfold under his CFO tenure.
Bookings for Expedia plummet as Middle East conflict and Mexico travel advisories hit.
Expedia, the online travel agency, saw its shares drop 8% on Friday before the bell. The ongoing conflict in the Middle East and a Mexican travel advisory shaved '200 basis points?off?its quarterly room-night and booking growth.
After military strikes in several countries that caused airspace closures, major transit hubs like Dubai were disrupted and airlines had to suspend their routes.
Ariane Gorin, CEO of Ariane Travel Group, said that while the Middle East represents less than 2 percent of total bookings for Ariane Travel Group, traveler cancellations were higher in Europe and Asia.
Travel demand to Mexico has also weakened since the February killing of a drug-lord sparked violence, triggering a U.S. shelter in place?advice for Americans.
Michael Bellisario of Baird said that the combined 200-basis point headwind was more than expected. He noted that Booking Holdings, which has twice as much exposure to regional markets, also saw a similar impact.
Jake Fuller, BTIG analyst, said: "We thought Expedia would be protected from disruptions in the Middle East and Mexico. But we were wrong."
He said: "However Expedia continues to execute well, and this shouldn't be lost in the debate about what amounts to temporary interruptions."
Airbnb reported higher cancellations on Thursday due to the conflict. They expect it to continue to be a problem later in the year.
After a K-shaped market reduced?demand for mid-range and budget lodgings, a recovery in U.S. tourism has emerged as the bright spot?for both companies.
Gregory Miller, a Truist analyst, said: "We're not concerned about Expedia maintaining its full-year guide. The rationale is understandable; it's driven by macro uncertainty."
Expedia and Booking were both trading at lower multiples than Airbnb, which was 26.91.
(source: Reuters)