Latest News
-
Canadian governments have recently intervened to resolve labor disputes
Air Canada has asked the federal government for intervention in the contract negotiations with its union of flight attendants after declaring an impasse during the negotiations to reach a new wage deal. This strike would affect nearly 130,000 people per day and could impact some of the most lucrative routes that the carrier offers between Canada, Europe, and Asia, as well as the United States. This move is part of a trend where companies are increasingly turning to Ottawa for the resolution of high-stakes labour disputes. Ottawa may impose binding arbitral proceedings in federally regulated industries if a lockout or strike threatens the public's safety or economy. This will force both parties to agree to a settlement. The unions claim that the new law strips them of power and encourages employers to offer low pay in certain sectors, as they know the government will step in if there are any strikes. Former Liberal Prime Minster Justin Trudeau has referred several major labor disputes before the independent Canada Industrial Relations Board. This board is empowered to resolve standoffs between employers and unions. This is the major first dispute under Liberal Premier Mark Carney. CANADA POST The CIRB, in December 2024 ordered the end of a one-month strike by 55,000 employees at Canada Post. This was the second strike in six years. The existing contract was extended to May 22, 2025. The union imposed an overtime ban after talks on a new agreement failed. MAJOR PORTS Ottawa requested the CIRB in November 2024 to end the prolonged work stops at Canada's biggest ports, which it said were affecting the daily movement of more than C$1.3billion ($944.63m) worth goods. The dispute already caused delays in the shipment of forest products, canola oil and other commodities. Business groups welcomed the arbitration. CANADIAN NATIONAL RAILWAY & CANADIAN PACIFIC KANSAS CITY After contract negotiations failed in August 2024, Canadian National Railway (CNR) and Canadian Pacific Kansas City (CPKC), Canada's top two rail companies, locked out over 9,300 Teamsters Canada employees, threatening disruptions for a country heavily dependent on rail freight. The Federal Government turned to the CIRB who, within three days, directed that operations resume. WESTJET MAINTENANCE ENGINEERS Ottawa requested the CIRB intervene in June 2024 to prevent a WestJet Airlines strike of maintenance engineers, Canada's second largest carrier. This was to avoid large flight cancellations before a busy holiday.
-
Sources say Trafigura has withdrawn zinc from LME storages and is preparing to ship some of it to the US.
Five sources with knowledge of the matter claim that Trafigura, a commodity trader, is shipping large quantities of zinc from Singapore to the United States. The zinc was stored in London Metal Exchange-approved warehouses. Trafigura is yet to reveal how much zinc it has taken or will take from the LME warehouses located in Singapore or why they are taking the metal to the United States. Concerns about the LME market's supply have helped to push benchmark zinc prices up 5% this month, to $2,850 per metric ton, while the discount to the cash contract is now near zero. . Sources in the industry said that Trafigura's zinc shipment to the United States was likely to be used by Nyrstar to meet its contractual obligations to U.S. clients when its Clarksville Smelter closes this year for maintenance. Nyrstar responded to a comment request by saying that there will be an annual planned maintenance shutdown at Nyrstar Clarksville from mid-October through November. Nyrstar confirmed Clarksville has a capacity of 125,000 metric tonnes of zinc metal per year. However, it declined to answer whether it would import metal to meet its customers' needs. Trafigura has declined to comment. Two sources claimed that Trafigura also used some of the zinc to "rent-deals", i.e. lucrative agreements whereby warehouses share their rental income with companies who deliver metals for as long it remains in storage. Metal for Rent deals don't require the companies to own the metal. However, they do get a portion of the rent paid by the new owner as long as it remains in the warehouse. As of August 12, zinc stocks in LME storage facilities 0#MZNSTX–LOC> totalled 78.475 metric tonnes, of which 78.375 tons were stored in Singapore. Stocks of metals have dropped by over 30% since July 25, Metal marked for delivery or cancelled warrants, which are title documents that confer ownership, show that another 33,000 tonnes is expected to leave LME's Singapore warehouses. Two sources claimed Trafigura may be moving zinc from Europe to the U.S., in anticipation of tariffs being imposed on imports of zinc once the trade investigation started in April has been concluded. The investigation is similar to the copper probe, and covers a wide range of minerals, including zinc. In anticipation of tariffs, traders and producers shipped copper to the U.S. for most of the year. The U.S. Geological Survey has defined zinc as a critical mineral. (Reporting and editing by Barbara Lewis, Lewis Jackson, and Pratima Deai)
-
EIA: Puerto Rico's customers experience 27 hours of power outages per year, even in the absence of hurricanes
The U.S. Energy Information Administration reported on Wednesday that customers in Puerto Rico had an average of 27 power grid outages per year between 2021-2024. This excludes major events such as hurricanes. The EIA stated in a report that mainland U.S. consumers typically experience around two hours per year of outages, excluding major event. The EIA reported that Puerto Rico customers had an average of 19 service disruptions per year. Of these, 14 were not caused by major events, and five were. According to the agency, in addition to severe weather, power outages in Puerto Rico are also linked with issues related transmission, distribution and generating capacities. Puerto Rico has been plagued by frequent and widespread power outages for years due to the island’s crumbling infrastructure and the bankruptcy of Puerto Rico Electric Power Authority in 2017. (Reporting and editing by Tomasz Jánowski in Bengaluru)
-
As Western sanctions target Russian oil, the shadow tanker fleet is growing more slowly.
Shipping sources reported that dozens of tankers joined the shadow fleet in 2014, compared to hundreds the year before. The harshest sanctions ever imposed by the West on Russia's oil exports have made it more difficult to find suitable vessels. Last month, the European Union and Britain imposed new sanctions against Russia for its involvement in Ukraine. In addition to the U.S. restrictions they also mean that more than 440 tankers of the shadow fleet are now subject to sanctions. This includes tankers Moscow uses to transport oil to China and India, its two biggest customers. Venezuela, Iran and Russia all use shadow fleets of vessels to avoid Western sanctions. The vessels are usually old, have opaque ownership, and sail without the best insurance to meet international standards. The shadow fleet is a weapon that Russia has used since the Ukraine War began in 2022. It has relied heavily on oil revenue to finance its war effort. The Group of Seven has also imposed a price cap on the level at which Russian oil may be sold, further complicating trade. According to industry sources, such as Lloyd's List Intelligence, and shipbroker Gibson, the size of this fleet is estimated between 1,200 and 1,600 tanks. The estimated global tanker fleet is approximately a fifth of this size. Sources say that compared to the few hundred vessels in operation before the Ukraine War, the growth of the fleet has slowed down year on year as the list sanctions has increased and the sales of used ships are being scrutinized by authorities and legal compliance teams. The shadow fleet estimate does not include the hundreds of smaller coastal oil tankers that are not ocean going but have transported oil primarily for Russia. Anna Giacomello said, "Regulators have closed the net," in a report published by Dryad Global (a British maritime cyber-defence and risk intelligence company). Profit potential is still a draw for many despite the risks. Leigh Hansson is a partner in the Reed Smith sanctions team, which advises shipping companies and traders on oil sanctions compliance. She said that the established players will stay away, and only those with little or no experience in the shipping market would be willing to take on risky operations with older vessels which major ship insurers won't cover. (Reporting and editing by Barbara Lewis; Jonathan Saul)
-
Airline says that plane imports are being discussed in the context of the Swiss-US tariff impasse
Swiss International Air Lines announced on Wednesday that discussions on how to lower Switzerland’s tariff burden against the United States included importing aircraft. The country is seeking to reduce its surplus trade with the U.S. To the dismay and frustration of the Swiss government, Swiss officials and leaders of business are trying to create a plan to persuade America to lower the 39% tariffs imposed by the Trump Administration on Switzerland last week. U.S. President Donald Trump cited the country’s trade deficit with Switzerland as the reason for the tariffs. According to U.S. statistics, the number is more than $38 Billion in 2024. Jens Fehlinger was the CEO of Swiss International Air Lines - a subsidiary of Lufthansa based in Germany - who joined top Swiss officials last week to try and avoid the tariffs. The Swiss newspaper Tages-Anzeiger reported on the fact that Fehlinger pitched to Swiss officials the idea of Lufthansa processing future Boeing aircraft purchases through Switzerland to reduce the U.S. Trade Deficit. Swiss International responded to a question about the report by saying that the trade talks included discussions on "framework conditions and possible options for aircraft imports - for the Lufthansa group, SWISS and the United States and U.S. Companies". It added: "Any substantive statement on these considerations or the negotiations themselves remains the responsibility of relevant government agencies." Sources familiar with Switzerland's commercial discussions say that the idea of importing planes has been discussed, but is not yet concrete. Lufthansa stated that it was concerned about the success of the Swiss unit as well as the Swiss economy. The group added that "Fleet acquisition at Lufthansa Group takes place in close collaboration with the airlines." The Swiss economy minister did not reply to a comment request on this story. (Reporting and editing by Kirby Donovan; Additional reporting by Ilona wissenbach)
-
Air Canada to stop flights after cabin crew threaten strike over pay deal
Air Canada has announced that it will halt the majority of its flights following a 72-hour notice of strike issued by its flight attendants union on Wednesday. The notice warned of a walkout if contract negotiations over a pay agreement failed. Just hours after Ottawa was asked to intervene by the airline, the Canadian Union of Public Employees (CUPE), which represents more than 10,000 cabin staff at Canada's largest carrier took action. The strike will begin around 1 a.m. ET on Saturday. In the beginning of this month, 99.7% percent of unionized employees voted in favor of a strike. Air Canada stated that the disruption would impact about 130,000 passengers a day. They also said that all customers who have their flights canceled during the busy summer months would receive a full refund. As it prepares for its three-day shutdown, the strike could affect some of the airline's most lucrative routes, including those between Canada, Europe, and Asia. Flight cancellations and increased ticket prices could be caused by a prolonged work stoppage. A lockdown was also announced by the airline 32 minutes after it ended. The airline declared Tuesday that negotiations were at a standstill after the union refused to accept its proposal of binding arbitration. The carrier offered flight attendants a 38% total increase in compensation over a period of four years. A 25% increase was given in the first year. The union, however, said that the offer was "below market value, below inflation, and below minimum wage" - leaving flight attendants without payment for all hours worked. Flight attendants in North America want to be paid for the hours they work, which includes waiting in airports and boarding before flights. Air Canada issued a statement saying that, "While we are still available to discuss with CUPE we have requested Government-Directed Arbitration as we view it now as the only sure avenue to bring an end to bargaining."
-
One person is missing after Typhoon Podul hits southern Taiwan
Typhoon Podul blew across southern Taiwan on Tuesday, packing winds up to 191 kph. (118 mph). One person was reported missing. A large swathe the island was shut down. Taiwan is frequently hit by typhoons. These are usually along the mountainous east coastline facing the Pacific. Taiwan's Central Weather Administration reported that Podul slammed Taitung, a city in the southeast of Taiwan around 1 p.m. (0500 GMT), then passed the southern tip and into the Taiwan Strait about three hours later. According to CCTV, it is expected to make landfall next on China's south coast in the late evening or early morning of Thursday. It will affect Fujian and Guangdong Provinces. The government of Taiwan reported that 33 people were injured and one person missing in Taiwan. Nine cities and counties have announced that they will suspend work and schools for Wednesday. This includes the southern metropolises Kaohsiung, Tainan and Kaohsiung. There was a blustery wind in Taipei's capital, which is home to Taiwan’s financial markets. However, it had no effect. The authorities also evacuated people whose homes had been damaged by the typhoon of July, which brought record-breaking winds and damaged Taiwan's electricity grid. The government reported that more than 5,500 people were evacuated before the arrival of the typhoon. Transport ministry: All domestic flights - 252 total - were cancelled Wednesday, while 155 international flight were also canceled. Taiwan's China Airlines and EVA Air, the two largest international carriers in Taiwan, said that their cancellations focused primarily on routes from Kaohsiung. Some flights also stopped at Taoyuan's international airport. Central Weather Administration forecast that rain up to 600 mm (24 inches) could fall on southern mountainous regions over the next few days. In some areas of the south, more than a full year's worth of rain fell in just one week, causing widespread flooding and landslides, which led to four deaths.
-
Mixed earnings caps gains; most Gulf shares increase on Fed rate reduction hopes
The majority of Gulf stocks rose on Wednesday as they tracked a global rally in stock markets after a softer U.S. Inflation data raised hopes for a Federal Reserve Rate Cut in September. However, mixed earnings reports from the region weighed down sentiment. Consumer prices in the United States increased by 0.2% from one month to another. The print in line increased the odds of a Fed cut to next month's rate from 86% to 94%. The U.S.'s monetary policy changes have an important impact on Gulf markets where the majority of currencies are pegged with the dollar. Saudi Arabia's benchmark index of stocks bounced back on Wednesday after hitting a two-month low. It rose 0.3%, with the majority of its constituents posting gains. ACWA Power rose 3.3% while Mohammed Hasan AlNaqool Sons Co soared 4.7% following the concrete manufacturer's 73% increase in net profit for half-year. Most constituents of the Qatari benchmark index gained 0.4%. AlRayan Bank rose 2%, and Qatar Islamic Bank gained 1. Mesaieed - Petrochemical, on the other hand, fell 0.2%, after reporting a 5% drop in its half-year net profits. Dubai's benchmark index fell 0.3% due to losses in the real estate, finance and industry shares. Blue-chip developer Emaar Properties fell 1.3%. Al Ansari Financial Services fell 1% following a 3% drop in the second quarter net profit of the region's biggest non-banking finance firm. Amlak Finance, the real estate financier that posted a net loss for the second quarter on Tuesday, was the largest decliner. Its shares fell 3.7% early in the morning. The benchmark Abu Dhabi index was flat as gains in consumer staples and energy stocks were offset by losses in real estate, technology and industry shares. Lulu Retail rose 1.7% following the retailer's announcement of a 9.1% increase in its half-year profits and a 1.8% rise in second-quarter profit. Alpha Data's shares fell 2.2%, as the technology services company reported a 4.9% decline in its second-quarter profit. (Reporting and editing by Md. Manzer Hussain)
HSBC adds space to Canary Wharf as a result of the HQ squeeze
HSBC signed a lease for extra space in Canary Wharf, before moving its global headquarters from East London's financial district. This was due to a lack of space in its new planned base in central City of London.
Memo said that the banking giant had signed a contract for a certain number of floors in 40 Bank Street. This is not far from its 45-floor skyscraper at Canary Wharf.
HSBC will take 210,000 square feet of the Bank Street Building, according to a source familiar with the matter.
It was previously reported that the lender will move its London headquarters to a building about half its size, near St Paul's Cathedral. However, it had realized it would not have enough space, and had assessed other options.
Bloomberg reported previously that HSBC had been in talks about leasing the space located at 40 Bank Street.
HSBC’s decision will give a boost to Canary Wharf. The value of the offices has declined since the COVID-19 outbreak and several planned departures, including HSBC.
In recent months, several companies have taken up space in the district, due to the shortage of high-quality space, especially in central City of London.
Canary Wharf Group, the landlord, announced this week that BBVA, a Spanish bank, has signed a 250,000 sq ft lease in Canary Wharf. Fintech Zopa will also be moving its headquarters there.
(source: Reuters)