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Japan's tourism share falls as diplomatic dispute with China worsens
After China warned its citizens not to travel to its North Asian neighbor following an increasing diplomatic split over Taiwan, shares in Japanese tourism companies plunged Monday. Isetan Mitsukoshi is a department store with a large number of Chinese customers. Its sales have dropped 11.4% and are on track to be the largest drop in over a year. Tokyo Disneyland operator Oriental Land dropped 5.1% while Japan Airlines fell 3.9%. China warned Japan on Friday that it would suffer a "crushing defeat" if Japan used force to interfere over Taiwan and warned Chinese citizens not to visit Japan. Kyodo reported that Tokyo asked Beijing to take "appropriate steps" in response to the travel warning on Saturday. Tourism has grown to be a major part of Japan's economic growth, largely due to the weakening yen. According to the Japan National Tourism Organization, mainland Chinese tourists accounted for about 24% (second most) of all visitors to Japan in September. According to Takahide Kuchi, executive economist of Nomura Research Institute, the Beijing travel boycott could cause Japan's gross domestic product (GDP) to fall by 0.36 percent on a yearly basis. Ryohin Keikaku (the operator of Muji stores) dropped 9.4% on the Tokyo stock exchange. Fast Retailing has over 900 Uniqlo shops in mainland China. Its shares dropped by 5.6%. The Nikkei index of stocks fell 0.7%. Tensions between Tokyo and Beijing have heated up since Japan's newly elected Prime Minister Sanae Takaichi said on November 7 that a Chinese attack on Taiwan could amount to a "survival-threatening situation" and trigger a potential military response from Tokyo. According to Alicia Garcia-Herrero of Natixis, the chief economist for Asia Pacific, a diplomatic rift could be more damaging to Japan than a mere dent to its tourism industry. She said that the Japanese government's insistence on using rare earth metals has only marginally decreased since it began to diversify. Over 90% of rare earths are produced in China. Rare earth magnets are also made there. They're essential to a variety of technologies. Chinese companies that have exposure to the Japanese markets also suffered. The shares of Linkage software, whose sales are largely derived from Japan, dropped 3.5%. Airline companies were also hit hard, with mainland listed shares of Air China (China Eastern) and China Eastern falling by more than 2%.
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Six bus passengers killed in Central Vietnam by a landslide
State media reported that at least six people died in central Vietnam on Sunday night when a bus they were riding on was struck by a landslide. Heavy rains pounded the region on Monday. Online newspaper VnExpress reported that the bus was carrying 32 passengers and was on its way from Da Lat towards Nha Trang at the time of this incident. According to the report, 19 passengers were also injured by the landslide that occurred on Khanh Le Pass due to heavy rain. According to the report, two passengers are still trapped in the bus which is partially buried under mud and stones. The report added that rescuers were on the scene. The report included a photo that showed the entire road covered with soil and large rocks. VnExpress reports that three more people are missing from a landslide in Danang. (Reporting and editing by Jamie Freed; Khanh Vu)
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FAA ends mandatory cuts on domestic US flights
Federal Aviation Administration announced late Sunday that it will end mandatory cuts in domestic flight at 40 major U.S. Airports at 6 am. Monday morning, ET (1000 GMT), the Federal Aviation Administration eased restrictions imposed during the shutdown due to concerns about air traffic control. Bryan Bedford, FAA administrator, said that the decision "reflects a steady decline in the staffing concerns." FAA removed restrictions at certain airports on general aviation and space launches. Airlines were expecting this move. On condition of anonymity, several major airlines said that they did not cancel any flights on Monday and had no plans to do so. Airlines for America is a trade association that represents American Airlines, United Airlines Delta Air Lines Southwest Airlines among others. The group declined to comment. The FAA reduced the requirement for flight cuts from 6% down to 3% late Friday evening, despite the fact that airlines were not complying with it anyway. Cirium, a firm that analyzes aviation data, reports that carriers cancelled just 0.25 percent of flights on Sunday at these 40 airports. This is less than the normal cancellation rate. Cirium reported that the cancellation rate in the United States for Sunday was only 0.36%. They interpreted this as a sign of operations returning to normal. The FAA's order was much higher. On Sunday, the FAA said it had received reports that carriers were not complying with the emergency order. The agency is assessing and reviewing enforcement options." The FAA can seek fines of up to $75,000.00 for each flight that exceeds the limits. FAA officials initially aimed to gradually increase the reductions in domestic flights to 10%, but on November 12, they decided to freeze this requirement at 6% as disruptions decreased dramatically after the shutdown ended. The agency initially ordered flight reductions to minimize disruptions to travel caused by a shortage of air traffic control during the shutdown of the federal government, when many controllers stopped coming to work due to not being paid. There are about 3,500 controllers below the FAA's target staffing level. Before the shutdown, many had already been working six-day weekends and mandatory overtime. After October 1, when the shutdown started, thousands of flights were cancelled and delayed due to air traffic controllers' absence. Air traffic controllers, FAA employees, and others began receiving their back pay on Friday, just two days after the end of a record-breaking 43-day government shutdown. The amount is about 70%.
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Oil falls after loadings resume at key Russian export hub
The oil prices dropped in the early Asian trading on Monday, wiping out the gains of last week, as loadings were resumed at Novorossiysk, the major Russian export hub, after a suspension of two days at the Black Sea Port that was hit by an attack from Ukraine. Brent crude futures fell 58 cents or 0.9% to $63.81 per barrel at 0050 GMT. U.S. West Texas Intermediate crude futures traded at $59.50 per barrel, down by 59 cents or 1.0% since Friday's closing. The benchmarks both rose by more than 2% to close the week on a modest note. Exports at Novorossiysk, and the Caspian Pipeline Consortium's terminal in the vicinity, were suspended, which affected the supply of the global equivalent of 2%. Two industry sources and LSEG data confirmed that oil loadings resumed at the port of Novorossiysk on Sunday. Ukraine's increased attacks on Russia's infrastructure for oil remain a concern as further disruptions are possible. On Sunday, the General Staff of Kyiv announced that it had attacked the Novokuibyshevsk refinery located in Russia's Samara Region. Toshitaka Takawa, an analyst with Fujitomi Securities, said that investors are trying to assess how Ukraine's attack will affect Russia's oil exports over the long-term, as well as locking in profits following last Friday's rally. "Overall the perception of an oversupply due to OPEC+'s production increases is still there," he added, adding that WTI will likely stay around $60, fluctuating in a $5 range. Investors also monitor the impact of Western Sanctions on Russian trade and supply flows. After November 21, the United States banned deals with Russian oil firms Lukoil, and Rosneft to encourage Moscow into peace talks on Ukraine. Donald Trump, the U.S. president, said on Sunday that Republicans were working on legislation to impose sanctions against any country that does business with Russia. He also said that Iran could be added to this list. Earlier in the month, OPEC+ decided to raise December production targets by 137,000 barrels a day, just as they did for October and November. The group also agreed to put a stop to the increases during the first quarter next year. Baker Hughes, an oil services company, reported on Friday that the number of oil rigs in the United States increased by 3 in the week ending November 14. (Reporting and editing by Yuka Obayashi)
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Zelenskiy seals air defence and warplane deal in France
On Monday, Ukrainian President Volodymyr Zelenskiy will likely seal deals with France for the supply of warplanes, missiles and air-defense capabilities. He is looking to strengthen his army's ability to fight Russia on a long-term basis. Zelenskiy has been in Paris to meet with French President Emmanuel Macron. In recent weeks, Russia has intensified its drone and missile attacks against Ukraine. Moscow also reported a sharp increase in ground gains in the southeastern Zaporizhzhia area. "An historic agreement was also prepared with France. There will be a substantial strengthening of our combat aircraft, air defence and other defence capability. This will happen on Monday, according to the schedule of the visit," Zelenskiy wrote in a Sunday post on X. Since several weeks, there have been discussions about how France can provide more military assistance for Kyiv’s air defences. This is despite the political and budgetary instabilities in Paris which has raised doubts over what France can do. Macron promised last month that he would offer additional Mirage fighter planes after originally promising to deliver six. He also pledged to provide a new batch Aster 30 surface to air missiles produced by the European group MBDA for the SAMP/T batteries of Kyiv's air defence batteries. According to two sources briefed in the matter, Kyiv will get more out of Monday's trip. The agreement could be a 10-year strategy aviation agreement, which would signify the delivery to Kyiv multi-role Rafale combat aircraft made by Dassault. The bulk of the aircraft would come from French stock, but the majority will be purchased in the long term as part of Ukraine's effort to increase its fleet to 250 planes over the next 25 years, including the U.S. F-16, and Sweden's Gripen. The rigorous training program for pilots of the future would require a lot of time. Two sources have said that Monday may also see more SAMP/T systems being ordered, either from French stock or via long-term orders for next-generation systems including missiles and antidrone systems. Sources said that it was unclear how these deals would finance. Macron's office stated that the goal of the media briefing was to "put French expertise in the arms industries at the service to Ukraine's defense" and to "enable Ukraine to acquire the systems needed to respond to Russian aggression". According to the schedule of the French presidency, which did not provide any specifics, Zelenskiy is scheduled to attend a morning briefing with various manufacturers including Dassault before signing a contract and a letter-of-intent later that day. In the afternoon, a separate forum will bring together Ukrainians and French companies working in the drone industry to discuss how they can work together. France and Britain have pushed to create a coalition of 30 countries that are willing to send assets and troops to Ukraine or its western border once a peace agreement with Russia has been agreed. The key objective is for Ukraine to receive enough long-term economic and military aid to maintain its army so that it can deter future Russian attacks. (Reporting and editing by Mark Heinrich; John Irish is the reporter)
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Hair dye and nail art are allowed! Japanese companies relax their rules to win workers' loyalty
Hinako, 22, moved to Tokyo in 2011 and chose to work at Don Quijote a discount retailer because it didn't really care about the colour of her hair. Mori, who was wearing ash blonde hair with dark and light blue streaks at the time of her interview, likes to change the colour of her hair every six weeks. She had a very different experience when she worked for a Japanese convenience store chain which required black or dark brown locks. "One day, I dyed my hair blonde. Mori said that the next morning, she was told either to wear a wig of use spray-on color. It was very stressful." RETAILERS RELEASE RULES In response to Japan's tight labor market, many companies have followed in the footsteps Don Quijote. A Pan Pacific International Group company. Three years ago, it relaxed its hair and nail varnish rules. Now nearly a quarter have brightly colored hair. If brown hair is added, then 55% of their employees do not have black hair. Fuji Yakuhin has, for instance, eliminated a number of rules that apply to non-pharmacists. The drugstore chain now allows all hair colours, nail art and heavy makeup. It also allows for any type of ring, while previously only wedding bands were allowed. Tokyu Store, the supermarket operator, has also relaxed restrictions on hair colors, hair styles and accessories, as well as nail polish, piercings, and nail varnish. Japan Inc. has gradually relaxed its dress code over the last two decades. The "Cool Biz", a campaign by the Ministry of Environment in 2005, encouraged people to ditch their jackets and ties during summer months. Since then, the summer dress code has become more relaxed, uniforms for department store employees are no longer mandatory, and white gloves for cab drivers have been made optional. Smaller companies are more likely to be affected by the latest changes in hair colour, nail varnish and accessories. They face greater labour shortages and have less flexibility to offer wages that are competitive. Some big listed companies have relaxed their dress codes for this year. Japan Airlines joined Skymark Airlines and Tokyo Metro, a budget airline in the United States, to allow employees to wear sneakers at work. LABOUR CRUNCH PRESSURE According to OECD statistics, Japan's population of working age has fallen by 16% from its peak in 1995. This has led to fierce competition among employers for employees. A survey shows that two-thirds (67%) of Japanese companies believe the labour shortage has a significant impact on their business. According to Tokyo Shoko Research, it was the main cause of Japanese bankruptcy in April-September. The number of failures reached their highest level for a first half period in 12 years. This gives young people more control, at least in terms of part-time employment. According to a survey conducted by Mynavi, a job information and recruitment company in April, two-thirds believe that students should have the option to decide how they want to look when working part-time. One third of students said that they had withdrew job applications due to dress codes. Shota Miyamoto is a researcher for Mynavi. "Students don't only want to gain experience and earn money. They seem to be looking for something more - a feeling of comfort or freedom," he said. He added that they didn't expect the same from full-time employment. Many companies are not comfortable with the Western style of facial or multiple piercings. Tattoos, which are traditionally associated with yakuza (the Japanese mafia), should be covered up by workers so that they don't intimidate their customers. Many of the traditional Japanese giants have yet to adopt these new changes. Sumitomo Mitsui Banking Corp., for example says that it does not have policies regarding hair or nail varnish, but employees are generally aware of the fact that they shouldn't make waves with their appearance. (Reporting and editing by Edwina G. Gibbs; Satoshi Sugiyama)
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Pentagon claims it has struck another suspected drug ship in the Pacific, killing 3
Pentagon: The United States carried out a second attack on a suspected drug-trafficking boat on Saturday in the eastern Pacific, killing three of the people on board, according to the Pentagon. In a social media post, the U.S. Southern Command said that intelligence confirmed the vessel's involvement in illicit narcotics trafficking, transiting on a known narcotrafficking route and carrying narcotics. Joint Task Force Southern Spear struck the boat in international waters, according to an announcement. This latest operation marked the 21st attack by the U.S. Military on drug boats since early September, in what they have called a justifiable effort to stop the flow of drugs into the United States. Pentagon figures show that the strikes killed over 80 people. Human rights groups, lawmakers in the U.S. Congress and U.S. ally countries have raised concerns about the legality. The Trump administration claims it has legal authority to conduct the strikes. The Justice Department has provided a legal opinion which justifies the strikes and asserts that U.S. Military personnel who perform the operations are not prosecutable. (Reporting and editing by Sergio Non, Edmund Klamann and Joseph Tanfani)
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Sources: Airbus will win the bulk of the major Flydubai jet orders
Airbus is likely to win the largest share of the major order for jets from flydubai during the Dubai Airshow. This will break Boeing's grip over the fast-growing low-cost carrier, according to people familiar with the situation. They said that the European planemaker is close to a deal with flydubai to sell around 100 A321neos. Flydubai has also been in discussions to order a smaller number of 737 MAXs from Boeing. Airbus could get 100 jets out of this deal, but the final split will depend on the outcome of negotiations that are expected to last until the end as the industry meets for its summit from November 17-21. Airbus and Boeing declined comment. Flydubai did not respond immediately to requests for comments. The airline has 175 MAX aircraft in its fleet, or 30 Boeing 787s on order. Leading Global Customer Airbus' deal to sell the 737 MAX to one of the world's largest customers, who has bought the aircraft exclusively from Boeing up until now, will further consolidate Europe's leadership in the most sought-after narrow-body jet market. Sources said that Flydubai will continue to maintain a fleet roughly balanced based on Boeing orders made earlier. The airline previously stated that it is looking to place the largest aircraft order it has ever placed, indicating it will purchase more than 175 MAX jets it ordered in 2017. Sources said that if options were included in the negotiations this week, the airline would be able to secure hundreds of new aircraft. Reports on Friday indicated that Airbus would be expected to take a piece of the business from the budget airline for the first ever. Boeing Commercial Airplanes' CEO Stephanie Pope stated on Sunday that the company would focus primarily on discussions with airlines regarding its path to recover from a number of corporate crises rather than maximising orders at this year's show. Analysts predicted that Airbus would win the Dubai Airshow following a May visit by U.S. president Donald Trump to the Gulf, which accelerated the announcement of significant Boeing orders that are usually announced at the Middle East Aviation expo. Airbus announced on Sunday that it expects the aircraft fleet in the region to double by 2044 to 3,700 planes. (Reporting and editing by Alex Richardson; Additional reporting by Ahmed Elimam, Federico Maccioni and Federico Maccioni)
New horizons however same old problems for LME warehousing: Andy Home
The London Metal Exchange ( LME) has actually just listed the Saudi Arabian port of Jeddah as a great delivery area for copper and zinc. This addition to the LME's global delivery network, which ends up being reliable three months after the approval of the very first warehouse, is the first new listing considering that Amsterdam in 2018. The exchange is likewise checking out the possibility of including Hong Kong to the list, no doubt hoping that its owner Hong Kong Exchanges and Cleaning (HKEx) can assist overcome the Chinese authorities' historic resistance to LME warehouses.
New areas might provide a booster for a warehouse network that has seen capacity contract and the variety of operators decline over the last ten years.
Nevertheless, old issues continue.
There was a 253-day line to load aluminium out of LME warehouses in Malaysia's Port Klang at the end of June, the longest waiting time considering that November 2016.
The LME storage organization likewise remains extremely concentrated with 4 dominant operators, a prospective problem when among them is dealing with an unsure future.
SHRINKING SPACE
Total LME signed up storage capability at the end of June was 3.3 million square metres, down from 4.3 million three years ago.
The pace of net shrinking slowed to 44,000 square metres over the last year and the downtrend shows indications of bottoming out. The number of registered storage facilities grew by 15 units to 468 after being up to a multi-year low in June 2023.
The three-year decline in registered capacity reflected a. duration of low exchange stocks as combined called for and shadow. off-warrant stock fell below one million metric tons over. the second half of 2022.
Stocks have considering that increased to 2.3 million since completion of May,. although inflows have actually been securely concentrated on simply a. handful of places. Russian aluminium has built up in the South Korean port of. Gwangyang, while non-Russian aluminium has been dumped in Port. Klang. This year's heavy inflows of both lead and zinc have. mostly ended up at Singapore warehouses.
All 3 places have bucked the trend of declining. storage capacity over the in 2015 and ISTIM UK Ltd's. extra 11 warehouse systems at Port Klang were the single. biggest part of the wider year-on-year increase.
SIGN UP WITH THE QUEUE
Rent-sharing is the common measure behind this year's. big deliveries of metal into the LME system. Such offers enable. the entity that calls for the metal to make a piece of the future. rental earnings.
The purchaser of that metal might be naturally hesitant to. pay rent to a prospective competitor but the only method to leave. the contract is to physically fill the metal out and provide it. to another warehouse business.
The bigger the initial warranting, the higher the. potential for a line. ISTIM warehouses in Port Klang received. 652,525 tons of aluminium in May. The cancellations started practically. instantly as buyers looked to move their metal. ISTIM had. 505,050 tons awaiting physical load-out by the end of June.
It's an echo of the 2010s, when the LME's load-out issues. triggered user outrage and drew the unwelcome attention of U.S. regulators, who would like to know why it would take 702 days to. take physical delivery from LME warehouses in Detroit.
Subsequent reforms to the LME system imply that such. self-perpetuating super-queues are no longer possible. What we. get now are what the exchange calls functional lines.
Which might not be much convenience for those late to the. aluminium logjam in Malaysia. They're not likely to see their. metal up until this time next year.
DOMINANT FOUR
ISTIM's capability to draw in such big tonnages to its. warehouses has actually made it a dominant presence in the LME delivery. system. The company was keeping 55% of all necessitated LME stocks. at the end of June.
The other 3 major gamers are Access World, C. Steinweg. and the Pacorini Group. In between them they were saving 92% of. total stock at the end of June and they presently account. for 344 of the overall 468 systems listed internationally.
This is likewise a throw-back to the last decade, when Metro. International, then owned by Goldman Sachs,. industrialised the queue model and constructed a dominant LME storage. position in Detroit.
Access World, gotten by Glencore in 2010, did the. exact same in the Dutch port of Vlissingen, creating a load-out. line of 771 days at one phase.
Smaller sized operators struggled to contend then, and clearly. they still do. Numerous who signed up with the LME warehouse company in. hope of getting a piece of the line action in the 2010s have. considering that withdrawn.
The variety of LME-registered warehouse operators has. declined from 36 to 25 over the last five years and that. consists of 9 that use LME services in a single location.
STORAGE FACILITY FOR (RE) SALE
The unsure status of Access World highlights the problems. that can be caused when LME stocks are focused in such a. small swimming pool of warehouse operators.
Glencore believed it had actually offered the business to Global Capital. Merchants (GCM), a company registered in the British Virgin. Islands, in 2022. Nevertheless, Access World is back on the sales block after the. purchasers stopped working to make full payment and Glencore is reportedly. hunting for new prospective owners.
Gain access to World warehouses held practically 12% of LME on-warrant. stocks at the end of June.
A DECADE OF REFORM
The LME, to its credit, has invested a great deal of time and effort. attempting to ravel the numerous wrinkles in its delivery system,. which - like whatever else on the 147-year-old exchange - is. rather unique from what you would discover in any other futures. market.
The queues have actually never ever truly disappeared however several tweaks. of the rule-book have at least constrained them and the amount. of cash that can be made from them.
The exchange has actually likewise massively boosted transparency around. its delivery network. A day-to-day registered stocks report has been. supplemented with month-to-month updates on off-warrant stocks, stocks. by warehouse operator and, obviously, queue length. This column. has actually drawn heavily on all of them.
Yet, simply just how much more efficient is the LME's shipment. network after a decade of reform?
A restricted number of operators still appear to control the. on-warrant storage service and 253 days is still a long time to. wait to get your metal.
The viewpoints expressed here are those of the author, a. columnist
(source: Reuters)