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FAA delays flights as shutdown enters Day 31
Federal Aviation Administration delayed flights on Friday at airports in Austin and Newark, as staffing issues continue to cause delays and the government shutdown enters its 31st week. The FAA reported that there were staffing problems at nine FAA facilities on Friday, and said this was likely to cause delays in flights later for Houston and Dallas airports. Flight delays averaged 61 minutes in Nashville, 50 minutes in Austin and 101 minutes in Newark. FlightAware, a tracking website for aviation, reported that 2,200 U.S. flight delays and 300 cancellations had occurred as of 12:25 p.m. ET. On Thursday, there were 1,250 canceled flights and 7,300 flight delays in the United States. Sean Duffy, the U.S. Transportation secretary, said that he expected more flight delays to occur in the next few days. Duffy told Fox News' America's Newsroom that there would be more disruptions to the airspace this weekend, and the following week. Staffing shortages in air traffic control caused delays on Thursday at Orlando, Dallas/Fort Worth, and Washington, D.C. The shutdown forced 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) officers to work for free. Delta Air Lines and United Airlines, Southwest Airlines, and American Airlines have all called for Congress to pass a temporary funding bill so that the government can reopen, and to continue discussions on healthcare policy disagreements. Transportation Department officials said that the shutdown caused flight delays because of air traffic controllers' absences. The airlines have repeatedly called for an end to this shutdown, citing safety concerns. The shutdown has worsened existing staffing shortages and threatens to cause widespread disruptions. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime. (Reporting and editing by Andrea Ricci; David Shepardson)
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Staff of the Border Force patrolling UK waters are planning a strike over pay
The union that represents British Border Force employees announced on Friday, more than 120 staff members who patrol Britain's waterways in "sometimes harrowing" roles plan to go on strike on November 14, to protest pay and working conditions. Most of the UK Border Force's 10,000 staff members work in ports and airports across the UK and abroad. The website of the agency does not provide a breakdown showing how many people are employed to patrol the waters in the UK. The union representing Britain's Public and Commercial Services said that the government started a review of the issue six years ago, addressing the need for standardisation in pay and roles. However, despite long discussions the concerns of the members have not been addressed. The UK interior ministry didn't immediately respond to an inquiry about the planned stoppage of one day or the status on the review. The union stated that workers are involved in dangerous tasks such as patrolling for illegal entry or smuggling into the UK and boarding vessels to inspect them, responding to incidents including small boats with asylum seekers, and boarding vessels for inspection. The Labour Party of British Prime Minister Keir starmer, which is trailing in the polls, has promised to crush the gangs that traffic migrants into Britain via small boats. Nigel Farage’s Reform UK party, a populist party with a strong political agenda has also made illegal immigration a key issue. In a statement, PCS General Secretary Fran Heathcote stated that "this strike sends a message clear to the Home Office": We will not accept further delays or inadequate proposals. Heathcote said, "We are prepared to escalate the situation if needed." (Reporting and editing by Muvija m; Alexander Smith).
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Buffett will send a letter to his children and shareholders as well as Abel's annual letter, according to WSJ
The Wall Street Journal reported on Thursday that Buffett's assistant said Warren Buffett would release a letter on November 10 to his children and Berkshire Hathaway's shareholders. Greg Abel, who will become Berkshire Hathaway's chief executive in February, will write Berkshire Hathaway's annual shareholder's letter. Buffett will step down from his role as chief executive officer at the end this year. He will, however, remain chairman. Abel is a vice chairman of Berkshire but has taken on additional responsibilities since Buffett announced a management change during Berkshire’s annual meeting held May 3. Buffett plans to join other directors in the audience, and not on stage, for next year's meeting. Berkshire has not responded to any requests for comment since Friday. The Omaha-based conglomerate, which will announce its third-quarter results this Saturday. Buffett's letter of November 10, to his children Susie and Howard, and to shareholders is not clear. Buffett sent letters to his family in November 2023, and again in November 2024. In these letters he discussed estate planning. He also expressed gratitude for the opportunities that the U.S. offers. He announced four donations to family charities. Howard Buffett will eventually become the non-executive Chairman of Berkshire. New York Newsroom reported the story.
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Portugal announces that the sale of TAP Airlines has cross-party support
The government of Portugal expects that the partial privatisation process for flag carrier TAP will proceed smoothly. This is due to a rare political consensus across parties and interest shown by Europe's biggest airlines, Infrastructure Minister Miguel Pinto Luz stated on Friday. He stated that the centre-right minority government initially wanted to offer 100% of TAP but settled for 49.9% when the two major opposition parties threatened to stop any larger sale. This led to a “broad consensus” in parliament with the extreme right Chega and Socialist parties. He told a committee of parliament that "dialogue and mutual respect is always the best way for politics." To ensure transparency, the sale of the property will be reviewed and monitored by an independent commission as well as a working group within the parliament. Portugal has relaunched its long-delayed TAP privatisation in July. The aim is to sell a stake of 44.9% to a carrier that can bring global scale and competition, plus an additional 5% for TAP staff. Airlines interested in TAP are required to submit a formal "manifestation" of interest by November 21, and non-binding bids by the end the year. Lufthansa and Air France-KLM have expressed interest in purchasing TAP. British Airways and IAG, the owner of British Airways, also met with the government last year.
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KLM signs two-year contract with unions of ground staff
Dutch airline KLM announced on Friday it had reached a deal with five unions that represent ground staff in The Netherlands for a two-year agreement that included pay increases, bonuses and improved retirement options. The Collective Labor Agreement (CLA), which is retroactive to March 1, this year and ends on February 28, 2027, will be in effect. This includes a salary increase of 3.25 percent in total as well as a one-time payment of 500 euros ($583) net in December 2025, and 250 euros in January 2026. KLM has also agreed to permanentize the 80-90-100% scheme, which allows older workers to work 90% of their working hours and still accrue full pension. "We are happy that we reached an agreement with all five unions. We have reached solid agreements with KLM on remunerations, career development and productivity. The agreement came amid ongoing labor unrest in KLM. Two major unions, FNV and CNV, had rejected the September deal with other unions and continued to organize strikes.
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Tanzania opposition claims hundreds of deaths in protests against voting
Tanzania's main Opposition Party said that hundreds of people were killed this week in protests against elections throughout the country, while the government claimed it was restoring the order following "isolated" incidents. The United Nations has confirmed credible reports that at least ten people have been killed in protests across three cities. This is the first estimate of fatalities made public by any international body since the vote on Wednesday. The government hasn't responded to any requests for comment or released any estimates of casualties. Could not independently verify these figures. Since Wednesday, protesters have been taking to the streets in anger over the exclusion of the two main challengers to President Samia Hassan from the race. They also criticized what they called widespread repression. Police have been accused of using tear gas and firearms to disperse some protests, according to witnesses. The police have imposed a curfew overnight in Dar es Salaam's commercial capital over the last two nights, after burning down government offices and other structures. Since Wednesday, internet access has been interrupted. HIGH SECURITY PRESENCE On Friday, the military and police patrolled Dar es Salaam's streets to prevent people from moving without a valid excuse. The government has extended the order for civil servants to work from home. John Kitoka, a spokesperson of the CHADEMA Party which was banned from the elections for refusing to adhere to a code and whose leader was arrested in April for treason, said that the party has documented 700 deaths based on the accounts of health workers. He said that protests were still ongoing in several cities on Friday, but they had diminished in others due to heavy security deployment. He said: "We want the protests continue until we get our electoral reforms." Hassan faces a challenge in the unrest. He was praised for his easing of repression after taking office 2021, but has faced criticism more recently from opposition parties and activists following a series arrests and allegations of abductions. Hassan denies allegations of widespread human rights abuses. She claimed that she ordered an investigation last year into reports of abductions. However, no official findings were released. Thursday, the electoral commission announced provisional results of the election. Hassan won a majority in several constituencies. GOVERNMENT : "NORMALICY WILL RETURN" The first direct comments from her government on the unrest were made on Friday by the Foreign Affairs Ministry in a broadcasted message to diplomatic missions on state television. In the message, it was stated that "due to isolated incidents where law and order were violated, the government has increased security and taken other precautionary steps." The statement added that the security measures are temporary, but necessary. Normalcy is expected to return soon. Seif Magango, spokesperson for the U.N. Human rights office, told reporters in Geneva that there are credible reports of 10 deaths in Dar es Salaam and Shinyanga. He urged the protesters to remain peaceful and called for security forces to "refrain from excessive or unnecessary force". A Dar es Salaam local, who requested anonymity for safety, said that a family had lost a member when a protester was mistakenly shot outside a hospital. No one from the police department responded to our requests for comment. In a joint statement released on Thursday, two members of the European Parliament’s foreign affairs committee called the election a fraud, saying that it "took place in an atmosphere of intimidation and fear". The article was written by Vincent Mumo Nzilani, George Obulutsa and edited by Aaron Ross. Ros Russell and Andrew Heavens.
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ITA Airways will resume flights from and to Tel Aviv on January 1, 2019.
Italy's ITA Airways has announced that it will resume direct flights to Tel Aviv on January 1. This will restore connections with Rome's Fiumicino airport, the main airport. According to the statement, the company, which is part of the Lufthansa Group, will operate at first two daily routes between Tel Aviv and the rest of Europe. The route is "of strategic importance to ITA Airways, and it represents a significant move for Italy. It further strengthens the commercial, cultural, and social ties between Italy and the United States." Hamas has reached a fragile truce with Israel this month, brokered by U.S. president Donald Trump. The deal is being tested periodically by violent outbreaks, as part of the conflict that was sparked by the October 7, 2020 attack by the militants group. As a result, several airlines have suspended flights in the past two years.
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Asia spot prices stable on ample stocks and tepid Demand
The Asian spot price of liquefied gas held steady in this week's market, despite a tepid global demand and healthy stocks. Average LNG price for delivery to North-east Asia in December Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11.10, a slight drop from $11.20/mmBtu in the previous week. Arturo Regalado is Kpler's senior LNG analyst. He said that while Asian LNG prices were supported by higher European prices last week, this week's gains were limited by weaker Asian fundamentals. He said that he expects Asian LNG prices to remain stable next week due to the fact that weaker industrial gas demand and lower gas-fired usage in China combined with higher than average Japanese LNG inventories for December will cap any upside. The data from the Ministry of Industry shows that the LNG stocks of the major Japanese electric utilities increased to 1.97 million tonnes for the week ending October 26 compared with 1.84 million tons in October last year. Martin Senior, Argus' head of LNG prices, added that supply expectations were also confirmed this week by the cooling-down cargo declaration at the Golden Pass U.S. export terminal and Shell's announcement of the impending start of the second LNG Canada train. In Europe, S&P Global Commodity Insights estimated its daily Northwest Europe LNG Marker for cargoes to be delivered in December ex-ship at $10.126/mmBtu. This is a $0.53/mmBtu reduction from the December price at Dutch TTF hub. Spark Commodities estimated the November price to be $9.907/mmBtu. Regalado said that the abundance of LNG and pipeline supply helped to keep prices down, while the warmer weather and increased wind output also kept gas-fired generators in check. Last week, hedge funds and institutional investors began selling TTF futures, reinforcing that the bullish sentiment in the EU Gas market has collapsed, according to independent gas analyst Seb Knastle. The U.S. arbitrage for the front month to Northeast Asia via Cape of Good Hope has now been closed, and is marginally pointing towards Europe rather than Asia. However, the arbitrage through Panama remains open, according to Spark Commodities analyst Qasim Afghanistan. He added that LNG freight rates have risen to $61,250/day in the Atlantic, and to $41,250/day in Pacific. Harikrishnan Nair, Harikrishnan Chow and Emily Chow contributed to this report.
Mideast conflict turbocharges diesel prices, squeezing Europe: Bousso
The conflict between Israel and Iran has increased global diesel prices. Gains have outstripped the increase in crude oil prices. This highlights the vulnerability of Europe's diesel-heavy consumers, even though the refiners are rewarded.
Benchmark Brent crude has risen 10% to more than $76 per barrel since the Israel-Iran War began on June 13. This reflects investor concerns over a potential disruption in supply, especially issues related to Strait of Hormuz – a narrow waterway that connects Iran and Oman and through which a fifth of crude oil and refined petroleum products pass.
The speculation that U.S. president Donald Trump would join Israel's election campaign has heightened concerns over escalation, which could lead to an energy shock around the world.
In Europe, diesel prices are on the rise. Since June 12, the benchmark European ICE low sulphur gasoil price has risen by nearly 15%. The rally of the past few days was based on the recent strengthening of diesel prices, which were a result from robust global demand as well as low inventories across Europe and America.
According to Kpler, the Middle East will be a major diesel exporter in 2024. This represents 17% of all diesel imports by sea. Kuwait, United Arab Emirates, and Saudi Arabia are the main exporters. They have invested in increasing their domestic refinery capacity to meet exports in recent years.
According to the International Energy Agency, diesel, which is used in Europe for both private and commercial transport as well as for industrial purposes, will account for 44% (or 13.5 million barrels per day) of the total oil demand in the region in 2024.
According to the IEA, Europe imported more than 1.2 million bpd of diesel last year. This is about a fifth the total consumption of diesel in the region. The IEA says that Europe's dependence on diesel imports leaves consumers and businesses in the region highly vulnerable to any disruptions in global diesel shipments, which could happen soon.
The price increase has also been a good thing for European oil refiners.
According to LSEG, European diesel refining profits have risen over 30% since the Israel/Iran conflict started. This is their highest level in more than fourteen months. It is noteworthy that the increase in crude oil prices coincided with this rise, since refining margins are usually inversely related to feedstock costs. The European refiners, on the other hand, are benefiting from the fact diesel prices have increased faster than crude.
RUSSIA LOOPHOLE
The market is also facing long-term volatility, as the Middle East tensions have a significant impact on the short-term outlook for diesel prices in Europe.
The European diesel market has undergone a major shift since the European Union (EU) and Britain (UK) banned Russian oil imports to the region following the Russian invasion of Ukraine, in February 2022. According to Kpler, the share of Russian diesel imported into the region dropped from 40% to less than 1% in 2018.
In order to replace Russian diesel imports, purchases were made from the Middle East and Turkey. These'substitutes,' however, were often refined Russian crude oil, especially diesel from India. This was possible because Western sanctions had limited the price of Russian oil.
The European Union has now proposed a ban on imports of refined oil products from Russia. A ban of this kind would be difficult to monitor and implement, as refiners use a mixture of crude grades to produce refined products.
In the short and long term, there are both uncertainties in the European diesel market. This means that significant volatility is expected for a while to come. This column is interesting to you? Check out Open Interest, your new essential source for global commentary on financial markets. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
(source: Reuters)