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Aerospace and airline industries warn that US tariffs may put safety at risk.
On Tuesday, groups representing U.S. and global airlines warned that new tariffs on imports of commercial aircraft, jet engine parts and other components could threaten air safety or the supply chain, and have unintended consequences. After President Donald Trump announced in April sweeping duties against trade partners, the industry is already facing 10% tariffs. The Commerce Department launched an investigation called Section 232 last month to examine the risks imported goods pose to U.S. security. This could lead to even higher tariffs for imported planes, engines, and parts. In a recent filing, the Aerospace Industries Association (which represents Boeing, Airbus and hundreds of other aerospace companies) urged the Commerce Department to extend the period for public comments on Section 232 from 90 days to 180 days, and not impose any new tariffs during that time. The group also urged for further consultations with the industry regarding "any Section 232 Tariffs" to ensure that they accurately reflect national safety concerns and don't put supply chain and aviation security at risk. The AIA highlighted the impact of a fire that occurred at a Pennsylvania aerospace fastener manufacturer in February on production, and the difficulty in finding parts from new suppliers. The group stated that it could take as long as 10 years to find a new supplier in the country and to ensure they have all of the necessary safety certifications. Airlines for America warns that tariffs will increase the cost of shipping and plane tickets. The airlines stated in comments filed with the Commerce Department that "injecting higher costs will weaken our economy and national security, and have a debilitating effect on the domestic commercial aircraft industry's capacity to grow, compete and innovate." The trade group warned that the tariffs could destabilize the aviation supply chain and lead to more counterfeit parts being sold. They also said the tariffs would have unintended and unexpected consequences. Airlines and manufacturers are lobbying Trump for a return to the tariff-free regime of the 1979 Civil Aircraft Agreement. The U.S. sector benefited from a $75 billion trade surplus each year. The agreement stipulates that parts must be approved by the Federal Aviation Administration in order to qualify for tariff-free status. (Reporting and editing by David Shepardson, Nia Williams and Chizu Nomiyama)
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Beta Technologies performs the first all-electric aircraft touchdown
Beta Technologies, the company and port officials announced on Tuesday that it was the first U.S. firm to land an electric aircraft in the New York/New Jersey area. In a press release, the airline said that a flight from New York to John F. Kennedy International Airport took 45 minutes. The pilot was accompanied by four passengers. Airlines and transportation companies are developing services that use electric aircraft powered by batteries, which can land and take off vertically. This allows them to transport travelers on short city trips while avoiding traffic. The Federal Aviation Administration (FAA) finalized in October comprehensive training and certification rules for air taxi pilots. They called it "the last piece of the puzzle" for safely introducing this aircraft in the near future. Beta also raised $318 in equity capital for production, certification and commercialization of its electric aircraft. This brings the total value raised to over $1 billion. The Vermont-based firm was founded in 2017. Kyle Clark, the CEO and founder, stated in a statement that the aircraft had undergone years of safety testing. (Reporting by Aishwarya Jain in Bengaluru; Editing by Maju Samuel)
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Venture Global shares increase after it announces CP2 site work
Venture Global Inc.'s shares rose nearly 20% on Tuesday, after the Louisiana-based producer of LNG announced that it had started construction on its proposed CP2 facility in the state following federal approval. CP2 is the largest LNG export facility for the United States, with a capacity of 20 million metric tons per year. This will help the nation remain competitive. The world's largest supercooled gas exporter The company stated that CP2 expects to deliver the first LNG in 2027, and has already made significant progress in terms of engineering, procurement, and contracting. Venture Global stated that off-site maintenance of the modules and equipment at the plant will help to speed up construction. Venture Global is yet to officially approve the final financial approval of the project. Venture Global will be the biggest LNG exporter of the U.S. if the project is built. Cheniere Energy will not even come close. (Editing by Nick Zieminski).
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Norway explores sale of Norwegian Air's remaining stake
Norwegian Air announced on Tuesday that the Norwegian government had begun to explore the possibility of selling its remaining 6.26% share in the airline. In a press release, the airline stated that the Ministry of Trade, Industry and Fisheries was considering selling up to 65.582,436 company shares, which is equivalent to about 6.26%. Norwegian Air stated that if the buyer and seller are satisfied with the price and demand of the offer, they may sell their entire stake in the company. The company said that the price of the offering would be determined by an accelerated bookbuilding procedure and in Norwegian crowns. Norwegian Air shares closed Tuesday at 14.06 crowns before the announcement. The government stake in Norwegian Air would be worth approximately 922 million Norwegian Crowns (91 million dollars) at that price. Last month, the Norwegian government announced that it would convert half of the loan given to Norwegian Air in response to the pandemic crisis into a 6.37 percent stake in the airline. At the time, the government stated that it would consider divesting its remaining stake in the airline based on the developments of the company and the market.
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Sources say that Trump's job cuts have hampered the NOAA team responsible for reopening ports following hurricanes.
Two sources familiar with this matter say that the Trump administration's widespread reductions in federal staff have left a Florida-based emergency response team, which reopens U.S. port after storms or accidents, unstaffed during hurricane season. Sources said that the closure of the National Oceanographic and Atmospheric Administration Navigation Response Team, located in Fernandina Florida, one of six locations across the country, could result in slower response times and more port closures this summer if hurricanes hit the U.S. Southeast. Teams are responsible for deploying survey vessels into ports to identify underwater hazards which must be removed to reopen the shipping. They have proven to be crucial after major storms such as those that hit the Gulf Coast recently, or disasters such as the collapse of the Francis Scott Key Bridge, Baltimore, in 2024. Former NOAA Administrator Richard Spinrad has been in touch with the agency and said, "I am aware that the Florida Navigation Response Team is out of commission this hurricane season due in part to staffing reductions." Retired rear Admiral Tim Gaulladet who served as NOAA administrator under the first Trump administration, said that he was aware that the Florida office is no longer staffed and that other offices are less able. NOAA didn't respond to specific questions about the Florida NRT or the reduced staffing of the NRT, but it did say that the agency will be prepared for this hurricane season. NOAA's Jasmine Blackwell, a spokesperson for the agency, said that in the event of a maritime disaster or hurricane affecting ports, NOAA would mobilize one or several Navigation Response Teams after receiving a formal request from the U.S. Coast Guard. NRT also has locations in Connecticut, Maryland and Mississippi. Washington state is another location, as well as Galveston, Texas, a major oil-industry port. According to archived images, the NRT home page was updated in March, removing both the Florida and Galveston locations. NOAA has not responded to inquiries about other locations or employees. The American Pilots Association didn't directly comment on these cuts, but they said that they would ensure that their members - harbor pilots, who guide commercial vessels in and out U.S. port - will continue to perform this function, and that both ship captains as well as harbor pilots will have the resources needed to protect maritime commerce. A SEASON ABOVE THE AVERAGE NOAA's National Weather Service forecast in May a hurricane season above average from June 1 to November 30 with 6-10 hurricanes. Ken Graham, its director, stated at the time that he didn't expect NOAA job cuts to have an impact on hurricane response. Sources said that the agency has been stretched thin by staff cuts of around 1,000 employees or 10%. Tom Fahy is the legislative director of the National Weather Service Employees Organization. The cuts will result in the first-ever loss of round-the-clock weather forecasting staff at some U.S. offices and a 40% staffing shortage in certain key areas like Miami-Dade, Key West and Florida. He said that at least six NWS offices had also stopped their routine launch of weather balloons twice a day to collect data for the weather models. He said that the employees' resilience had been stretched to breaking point. NOAA is rearranging staff in order to maintain services, but a series of simultaneous weather events, such as tornadoes, hurricanes and wildfires, could put the staff at its limit and render it impossible. He said, "This is like Whac-a-Mole for forecasters." "We will be hard-pressed to maintain the service standard that the public has come to expect." (Reporting and editing by Alistair Bell; Additional reporting by Lisa Baertlein, Valerie Volcovici).
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I've seen Hell: The global crisis of seafarer abuse
The maritime shipping industry employs 1.8 million seafarers The young seafarers who are lured to dangerous jobs and then abandoned The practice of relying on flags of comfort is fraught with danger By Katie McQue They searched the ship. Pawar said that after two days they had found 450 kg of cocaine in the tank. Pawar, along with the rest of his crew, were held in Trinidadian jails and interrogated for 15 days. Later, the captain and second-in-command of the ship were prosecuted. Pawar, then 20 years old, was not charged with any crime because he had no knowledge about the smuggling operation. Pawar was held at an immigration centre for four months, before he was sent back to India. His farmers parents scrambled for money to get him back home. Pawar had already borrowed $2,400 for recruitment fees to begin what he believed would be a promising career in the sea. He said, "I felt bad." "I never thought I would be in jail before this happened." Pawar is just one of the thousands of young sailors who are lured into dangerous and illegal maritime work by recruitment scams, or false job offers. Many are left unpaid, trapped on abandoned vessels or detained for many months. ABANDONED AT SEA Around 1.8 million sailors are responsible for the majority of world trade and 90% of all energy. They are often exploited and forced to work in dangerous conditions, with limited recourse. They are also at greater risk of being abandoned, as shipowners fail to pay wages, cover costs for repatriation, or provide necessary support. According to the International Transport Workers' Federation, abandonment incidents reached a new record in 2024. According to ITF representatives, many more cases are likely to go unreported. This is especially true when seafarers find themselves stranded and without the internet or the ability to contact authorities. The problem only gets worse. ITF data released in May revealed that the number of vessel abandonments has increased by nearly 33% this year to 158, up from just 119 in 2024. ITF has provided assistance to more than 1,500 seafarers. The practice is largely attributed to opaque company ownership and the use of flags-of-convenience, where ships are registered under countries that have the most lax labor laws and oversight. According to the ITF, popular flags of comfort include Panama, Liberia and UAE. The Maritime Labour Convention of 2006 (also known as the Seafarers' Bill of Rights) sets global standards of conditions at sea. However, it is largely up to the flag states and the local port authorities to enforce the convention. Josh Messick is the executive director of Baltimore International Seafarers' Center. The organization provides assistance to seafarers who dock their vessels at the Port of Baltimore, United States. The center also inspects ships to look for signs of non-compliance with the MLC. "Their time is incorrectly logged." They are not paid for overtime. He said that in a few short months, these workers can lose thousands. Chirag Bahri is the operations manager for the International Seafarers' Network. Welfare & Assistance Network. TRAPPED IN DEBT The seafarers who were interviewed for this article said that they had to pay illegal fees to secure a job, which could be thousands of dollars. These fees are banned by the International Labour Organization and can lock workers into debt bondage. They become more vulnerable to abuse, and less likely report violations. According to industry insiders, the rise of unregulated companies that manage vessels for owners has also led to abuse. Cris Partridge said that these companies are run by people who lack technical expertise. He is the managing director of Myrcator Marine & Cargo Solutions, a consultancy based in Abu Dhabi. "They charge a huge fee, take advantage of suppliers and let the ships fall apart." The UAE is home to many global shipping companies but it hasn't ratified MLC. Vinay Kumar is a second Indian engineer who has worked on merchant ships. He joined the crew of an UAE tanker in 2019. Kumar claimed that when the company got into financial difficulties, they stopped paying salaries. He and four other crew members were stuck on the tanker for 21 months, three miles off of the coast of Dubai. We didn't have fuel to run the air conditioner or cook. "We took showers with sea water," said he. "We were slaves." The crew was forced to rely on charity for survival after a month without electricity. The vessel ran aground in January 2021 during a storm. The men were only allowed to return home after the sale of the ship, and with 70% of the wages they owed. Kumar replied, "I'm not going to the sea again." "I've seen hell.
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The aerospace sector warns that new US tariffs may put the safety of air travel and supply chains at risk
The group of major U.S.-based and international aeropsace companies warned on Tuesday that new tariffs on commercial aircraft, jet engine and part imports could have unintended or dangerous consequences for air safety. The Commerce Department opened a Section 232 investigation last month that could lead to even higher tariffs for imported planes and engines, as well as parts. Aerospace Industries Association (AIA), which represents Boeing and Airbus as well as RTX and GE Aerospace, urged Commerce Department to extend the public comment period by 90 days, and not impose any new tariffs until at least 180. They called for further consultations with the industry regarding "any Section 232 Tariffs" to ensure that they accurately reflect national-security concerns and don't put aviation safety and supply chain at risk. Airlines and manufacturers are lobbying Donald Trump for the restoration of the tariff-free regime that existed under the Civil Aircraft Agreement from 1979, which allowed the U.S. industry to enjoy a $75 billion trade surplus each year. (Reporting and editing by David Shepardson)
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At Rome's airport, an energy storage system using EV batteries has been launched
The largest energy storage system in Italy, based on batteries from electric vehicles, was inaugurated at Rome's Fiumicino Airport on Tuesday to reduce carbon emissions. The two companies released a joint statement stating that the system, called "Pioneer", was developed by Italian utility Enel in conjunction with airport operator ADR. It is the largest system of its kind to be found in Europe. The solar farm Enel built in Fiumicino, Italy in January will use this to store the energy. Storage systems are needed by Italy as it expands its renewable energy projects. This will allow the country to have energy when the sun, wind or other sources of energy are not available. Enel, ADR and Stellantis said that 'Pioneer,' using material supplied by automakers Nissan and Mercedes, will transform 762 battery modules and packs, which can no longer be used in vehicles, into a battery energy storage system of 10 megawatts-hours. This is about the same amount of electricity needed to run 3,000 U.S. households for one day. According to Enel, and ADR the system is expected to reduce CO2 emissions around 16,000 tonnes over ten year. (Written by Alvise Armelli. (Editing by Francesca Landini, Mark Potter and Mark Potter.)
Sohn Hong Kong's top hedge fund picks include Indian pharma and China robotaxis
At the Sohn Investment Conference in Hong Kong, hedge funds shared their best investment ideas. These ranged from Chinese self driving taxis to an Indian drug retailer and a Korean nuclear power plant builder.
The geographical diversity of this year's selections is greater than last year. This suggests that investors are actively trying to diversify their exposure in order to combat tariff uncertainty and market volatility.
Flight Deck Capital, based in San Francisco, sees potential upside for Baidu's auto-driving division.
Jay Kahn, Flight Deck's managing partner and founder of Flight Deck, said that Apollo Go is similar to Google's self driving unit Waymo. "It's the only robo taxi player in China who's not reliant on capital markets for scale," he added.
He predicts that China's ride-sharing and taxi industry will grow to $237 billion in 2034. Apollo is expected to take a 15% share of the market. He said that the market currently values this segment and Baidu's cloud services at zero.
Investor optimism about Chinese companies going overseas is not affected by the escalating U.S./China trade war.
Apeiron Capital, Hong Kong's investment bank, has endorsed Chinese ride-hailing service DiDi Global. It cited its improved margin at home as well as its rapid market share growth in Latin America. Triata Capital, meanwhile, is optimistic about Chinese discount ecommerce player PDD (owner of Temu).
The monthly active users of Temu are bigger than Amazon's, according to Triata CIO Sean Ho.
Two investors are interested in India's healthcare sector.
Arisaig Partners, a Singapore-based investment firm, favors MedPlus Health Services, a leading Indian pharmacy chain, because its private label products enhance its low price proposition and widen the gap between it and its competitors.
"Inflation has dropped, the government is focusing more on the middle-class and consumer spending has risen from a low base. In an interview conducted before the conference, Vatsal mody, partner at Arisaig Partners and head of India Research said that he believes this is a time when consumer spending will improve.
Panvira Management, an India-based hedge funds startup, is bullish about Piramal Pharma. It expects its growth to reach the high teens as well as benefiting from normalised tax rates.
SECURITY AND A ACTIVISTS
Other hedge funds are focusing on the opportunities created by geopolitical conflict in the security industry.
Jon Jhun who manages MY.Alpha Management’s new Korea-focused funds chose Hyundai Engineering & Construction, which is engaged in nuclear plant design, procurement, and construction.
He said that "Korea dominates ex-Russian and ex-China's nuclear supply chain."
Frontline Global Management, a Hong Kong-based company, chose the Spanish defense firm Indra Sistemas in the belief that it will win more European contract.
Palliser Capital, a UK hedge fund, disclosed at the event that it owned a 3% stake of Japan's Toyo Tire. The hedge fund urged the tire manufacturer to increase shareholder returns by setting an "best-in class" performance target, and to release its excess capital, which amounts to about $900,000,000, to shareholders.
Seth Fischer’s Oasis management is long Japanese entertainment chain Round One. It believes it will receive a higher rating as it enters the restaurant business, aiming to bring Michelin quality Japanese food to the U.S.
(source: Reuters)