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Spain investigates six budget airlines over fees for cabin luggage
The Ministry of Consumer Affairs in Spain announced on Thursday that it had launched an investigation against a low-cost carrier for practices like charging extra for large cabin bags. Five other airlines have already been fined a total of 179.24 million euros by the ministry. The Spanish court suspended fines for three airlines, Ryanair, Norwegian Air, and IAG's Vueling. This was done while the case is being reviewed by the courts following legal challenges brought forth by these carriers. EasyJet and Volotea, a privately-owned airline, were also fined. The Ministry said that the case may still take several months. The ministry said that the airlines had violated their customers' rights when they charged for larger carry-on luggage, for choosing seats and printing boarding passes. They also did not allow cash payments to be made at check-in counters or for items purchased on board. During the legal proceedings, it was allowed for the five airlines to continue charging passengers for large cabin bags or for choosing specific seats. Ryanair and Industry Group ALA say the fines are unjustified as these practices are widespread in the European Union. Reporting by Corina Poons, Editing by Susan Fenton.
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Ryanair cancels more than 30,000 flights and disrupts more than 170 passengers due to French ATC strike
Ryanair announced on Thursday that it had to cancel more than 30,000 flights due to the planned nationwide strike of air traffic controllers in France for Friday afternoon and evening. This disruption occurs at the beginning of Europe's busy summer holiday period, which is one of the busiest times of the year for travel. On Wednesday, the French civil aviation agency DGAC asked that multiple airlines reduce flights in Paris by 40% on 4 July due to a planned strike. In a Thursday statement, Ryanair stated that the strike would also affect French overflights. Irish airline said that passengers flying from the United Kingdom, Greece, and Spain into Ireland will also be affected. Michael O'Leary, CEO of Ryanair, called on Ursula von der Leyen, President of the European Commission to take urgent actions to reform European Union Air Traffic Controllers' Services.
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INDIA RUPEE-Rupee forward premiums are raised by an increase in Fed rate cuts bets
The Indian rupee gained on Thursday, after weak U.S. employment data supported Fed rate-cut bets. Meanwhile, a U.S. Vietnam trade agreement lifted regional sentiment. The dollar-rupee future premiums have been boosted by an increased likelihood of rate cuts from the U.S. Central Bank, as well as the 1-year implied return reaching a one-month high. The rupee was up 0.2% to 85.55 at 11:30 am IST. Asian currencies were mostly rangebound, while regional equities, including India's benchmark indices BSE Sensex, and Nifty 50, each rose about 0.4%. After a surprise drop in the private sector payrolls released on Wednesday, odds of a Fed cut in July increased to one in four. CME's FedWatch Tool shows that the odds of this happening were about 1 in 5 before the release of data. On Wednesday, President Donald Trump announced that the U.S. had struck a deal with Vietnam. This included a 20% tariff for exports to the U.S. The news fueled hopes that other deals could be reached before the deadline of July 9. Sources familiar with the negotiations said that U.S. negotiators and Indian negotiators were trying to reach a deal on tariff reductions before the deadline, but there are still some unresolved disagreements. The rupee is expected to remain range-bound for the near term, with resistance at 85.40 and a support level near the 86 handle. A trade agreement "would be a positive sentimental experience" for the rupee, but significant gains will only come if it leads to a rise in portfolio inflows. This is what a trader from a foreign bank has said. The U.S. Non-Farm Payrolls Report for May is likely to be the main focus of attention later in the day. This report will influence the expectations regarding the future trajectory and policy rate benchmarks. "Quite bearish position on the broad US Dollar index also suggests a near-term pressure on dollar shorts, though the broader tendency is still for Asian currency to continue strengthening," MUFG stated in a report. (Reporting and editing by Nivedita Battacharjee; Jaspreet Klra)
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Maguire: US tariff deal with Vietnam will expand trade, but there are obstacles.
The United States-Vietnam tariff agreement will lead to a rise in the trade volume between the two countries. It will also have an impact on the mix of energy sources that power the rapidly growing Vietnamese economy. In a post on social media, U.S. president Donald Trump highlighted U.S. SUVs as potential beneficiaries of the deal. Meanwhile, U.S. energy companies will hope that Vietnam will become a major growth market for LNG. In the short term, however, both sellers of bulky passenger trucks as well as expensive super-chilled gasoline may be disappointed. Vietnam's economy is still heavily reliant upon cheap coal to generate domestic electricity and on nimble motorbikes for transportation. As long as Vietnam continues to impose a 20% tariff on its main export market, the profits of corporations will be squeezed and the economy may lack the money to purchase the expensive goods that the U.S. hopes to sell. Here are some key data points about vehicle ownership, energy generation and manufacturing output that can be used to monitor the trade and energy trends following tariff agreements. 2 WHEELS ARE BETTER THAN 4. Many Vietnamese may want to own the SUVs President Trump wants to sell, but the vast majority of vehicles are motorcycles. Motorcycles make up over 90% of all vehicles registered in Vietnam. World Bank data shows that the motorcycle ownership rate is 518 per 1000 people while car ownership is 22 per 1000. Car sales in Vietnam are expected to increase sharply as the economy grows. This is good news for global auto exporters. The narrow streets of the country and the limited parking space in the cities make it difficult to find a place for a small vehicle. The U.S. SUV market will be a tough one for U.S. automakers hoping to gain market share. COAL CRUTCH The energy-intensive manufacturing industry of Vietnam has also encouraged U.S. LNG sellers to be optimistic about Vietnam's potential for growth. There are many reasons why Vietnam's appetite for LNG will only continue to grow modestly. First, coal is a cheaper fuel than imported natural gas, which costs more. Over half of the country's coal imports come from China, a neighbour and top coal exporter. According to the Energy Institute, secondly, domestic gas production has been steadily declining over the last decade as a result of the depletion of gas fields. By 2024, it will be 40% lower than in 2015. Ember data shows that the combination of a coal-based power system and declining natural gas reserves have squeezed gas out of electricity. The gas share is now between 7% and 9%, compared to 12 to 15% by 2022. According to Global Energy Monitor, the reduced gas consumption has slowed down gas infrastructure development. No gas power plants are currently being built in Vietnam. GEM data show that there are around 4 gigawatts of LNG import capacity in construction and another 17 GW under so-called "pre-construction", which is what is driving LNG exporters' optimism. There are also 53 GW in pre-construction of wind power and 5 GW utility-scale solar. These projects are driven by clean energy policy set by the government, with support from civilians who desire lower pollution. Solar panels and solar components are also produced in large quantities by the country, allowing utilities to install clean energy equipment more quickly than with any other source. It is possible that this could discourage future interest in expanding gas handling capacity in Vietnam, despite U.S. hopes of higher LNG exports. MANUFACTURING DRIVER The fast-growing sector of manufacturing in Vietnam will have a major impact on the country's power needs and mix. According to Ember, the rapid expansion of production lines in the last decade has resulted a more than doubled total electricity demand between 2014 and 2024. The need to compete with other manufacturers in China and abroad has put pressure on power companies to keep their energy prices low. This has led to a stronger grip of coal on the power sector in Vietnam, as well as a rapid adoption of low-cost home-made solar system. In the future, gas imports from China will increase as its heavy industry, including producers of chemicals, plastics, cars and other products, continues to grow. Most manufacturers rely on electricity, not gas, for their power. Future growth will be driven by coal and renewables. These are seen as being more cost-effective than building new gas stations. Since 2022, the country has increased production of cables, power sector components and other products as part of a global shift of production away from China. This has helped to accelerate the drive for electrification at a low cost, but may also limit Vietnam’s demand for LNG or other expensive U.S. imports. These are the opinions of a columnist who writes for. You like this article? Check it out Open Interest The new global financial commentary source (ROI) is your go-to for all the latest news and information. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on You can find us on LinkedIn.
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Manga doomsday predictions spooks Japanese tourists
The rumours that a comic-book prediction of impending catastrophe would happen have taken away the shine from Japan's tourism boom. Some airlines have cancelled flights to Hong Kong, where passenger numbers have plummeted. This year, Japan has experienced record numbers of tourists. April saw a monthly high of 3.9 millions travellers. The latest data shows that arrivals to Hong Kong, the Chinese-controlled superstitious city, where rumours are rife, fell 11% on the year. Steve Huen, of Hong Kong's EGL Tours travel agency, blamed the flurry social media predictions on a manga depicting a dream about a massive earthquake that will hit Japan and neighboring countries in 2025. Huen said that the rumours had had a "significant impact" on his business in Japan. He added that discounts and earthquake insurance "had prevented Japan-bound travel to drop to zero". Branden Choi from Hong Kong, 28, is a frequent visitor to Japan. However, he hesitated to travel to Japan in July and August because of the manga predictions. He said that he would delay his trip to Japan until after September if possible. Ryo Tatsuki has attempted to calm the speculation by claiming that she is "not a prophecy". This was stated in a press release issued by her publisher. The first manga edition warned of a natural disaster that would occur in March 2011. This was the month and the year that a major earthquake, tsunami, and nuclear disaster killed thousands of people on Japan's north-east coast. Tatsuki, however, has denied that the new edition predicts a catastrophe to occur on July 5, 2025. Japan, located within the Pacific Ocean’s ‘Ring of Fire’ is one of most earthquake-prone nations in the world. On the islands of Kyushu's southern tip, there have been over 900 earthquakes in recent days, many of which are small tremors. Robert Geller, professor of seismology at the University of Tokyo, who has studied it since 1971, says that even predicting earthquakes scientifically is "impossible". He said that "none of my predictions in my career as a scientist have been close to the truth." However, Hong Kong's low-cost carrier Greater Bay Airlines announced on Wednesday that it will suspend indefinitely its service to Tokushima, in western Japan, due to low demand. Serena Peng (30), a Seattle resident who was visiting Tokyo, initially tried to dissuade her husband from going to Japan when she saw the speculation on social media. She said that she was no longer worried about her future, but had been before, as she spoke outside Tokyo's busy Senso-ji Temple. Reporting by Tom Bateman in Tokyo, Kathleen Benoza in Hong Kong and Joyce Zhou from Tokyo; editing by John Geddie & Kate Mayberry
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Boeing and Justice Department ask judge to approve deal opposed by families of crash victims
Boeing and the Justice Department asked a U.S. Judge on Wednesday to approve an agreement allowing the company to avoid prosecution, despite objections by some of the relatives of 346 people who died in two 737 MAX crash in 2018 and 2019. Boeing can avoid being branded a convicted criminal and escape from oversight by an independent monitor for a period of three years. This was part a deal reached in 2024, which included a plea agreement to a criminal charge of fraud that it had misled U.S. regulatory authorities about a critical flight control system installed on its most popular jet the 737 MAX. Boeing claimed that the executive branch alone has the authority to decide whether or not to prosecute. Boeing stated that an agreement to not prosecute does not need court approval because it is at the discretion of the government to do so. Boeing asked a judge not to accept objections from the families, but to grant the government’s motion to dismiss charges. "Disputing government's calculated assessment of litigation risks, the calculation for the maximum fine or the appropriate mechanism to oversee compliance, does not demonstrate, even remotely, that the government had clear considerations against the public interest." In a court filing, the Justice Department stated that it acted in good conscience and in accordance to the law. It agreed to dismiss the case in exchange for an agreement which "secures a significant penalty, compliance improvements and a substantial compensation fund for victims." The families cited Judge Reed O'Connor's 2023 statement that "Boeing's crimes may be properly considered as the deadliest corporate crimes in U.S. history." They claim that the dismissal of Boeing is not in its best interest, and that any obligations Boeing has been given are not legally enforceable. Families said that if O'Connor did not appoint a Special Prosecutor if the government refused to proceed with the prosecution, even if the court rejected it, then the prosecution would be dropped. Boeing and Justice Department asked O'Connor both to reject the appointment of a special prosecutor. Boeing agreed to pay $444.5 millions into a fund for crash victims, which will be distributed evenly amongst each crash victim. This is in addition to a $243.6-million fine. Boeing will plead guilty in July 2024 to a criminal conspiracy charge of fraud after the two fatal 737 MAX crash in Indonesia and Ethiopia. Boeing has agreed to pay a total of $1.1 billion, which includes the fine, compensation for families, and $455 million in order to improve the company's safety, compliance and quality programs. The Justice Department reported that the vast majority of families had settled their civil cases with Boeing, and they have collectively been "paid several hundred million dollars." (Reporting and editing by David Shepardson)
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KLM offers wage proposals following threats of strike by ground crew
KLM made wage proposals on Wednesday to the Dutch staff of Air France KLM's Dutch subsidiary. The union CNV had said that the ground crews of the airline would strike on July 9 at Amsterdam Airport if their demands weren't met. The start of school holidays in some parts of the Netherlands is next week, so the eight-hour planned strike will take place during a busy period. KLM issued a statement saying that it had made a concrete salary proposal to all unions. The company proposed a payment of up to 1,178.60 euros (1,178.60 dollars) in 2025 as well as a structural increase of up to 2,5% by July 2026 depending on the results for 2025. KLM believes that this offer is a good starting point to reach an agreement. "The wage negotiations will continue 10 July," the company added. When contacted by, the union leader CNV did not respond immediately to a question about the proposals. KLM said that it would ask a court, just as it did successfully last month, to prohibit the industrial action planned after the unions had mentioned it. CNV was confident that a strike wouldn't be banned, because the circumstances have changed. The court's ruling in June cited concerns about security at the airport in relation to the NATO summit that was to be held in The Hague just days before the strike announcement.
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Worldline hires a new auditor to assess clients at high risk
Worldline, a French payment company, has announced that it has hired Accuracy as an auditing firm to evaluate its remaining merchant portfolio for risky activity. A group of 21 European news outlets claimed last month that Worldline covered-up client fraud in order to protect its revenue. Last week, Belgian prosecutors announced that they had launched an investigation into possible money laundering activities within its Belgian division. Worldline responded to media reports by stating that it has strengthened merchant risk control since 2023 and terminated client relationships with non-compliant clients. The group announced that in addition to the hiring of Accuracy, Oliver Wyman would also be hired to review Worldline’s control systems. The initial findings will be released on July 30, along with the first-half results. However, the main conclusions are to be revealed when Worldline announces its quarterly earnings in October. The company stated that it expects to identify any weaknesses or improvement areas by the end of the month. In such cases, the necessary action plans for ensuring optimal operational integrity will be implemented. Worldline, Europe's largest payments processor by transaction handled, saw its value drop by more than 500 million euros (590 million dollars) following the allegations. The shares of the Paris-listed firm have recovered in part since then, with a price of 3.93 euros per share at 1347 GMT. They had hit a record low price on June 25, when they were 2.69 euros. The yield on Worldline’s 2030 bond that it issued in June for a total of 550 million euro has increased by 40.8% within seven days. This shows the investors' anxiety.
US trade truce allows for ethane to be exported to China
The U.S. opened the door to ethane imports into China on Wednesday. Enterprise Products Partners, Energy Transfer and other producers received letters rescinding the restrictive license requirements that were in place only weeks earlier. This was a clear sign that the U.S. - China trade truce is on track.
In late May and early in June, the U.S. placed restrictions on ethane and a large number of other exports to China after Beijing was accused of slowing down shipments of rare Earths essential to automakers and many other industries.
The letter removing the requirement for a license was sent on Wednesday after the United States, China and other countries resolved the issue last week involving shipments of rare-earth minerals and magnets from China to the United States.
Last week, the Commerce Department made a first move toward lifting the restrictions. It sent letters to Enterprise Products and Energy Transfer as well as the traders of ethane, Satellite Chemical USA, and Vinmar International. The letters informed the companies that they could load the ethane onto vessels bound for China, but could not deload the ethane without authorization.
Vinmar Satellite has not responded to comments immediately.
Neither the U.S. Department of Commerce nor the White House responded immediately to comments.
Ethane Shipments
Ship tracking data from Kpler revealed that ethane shipments into China stopped in June due to the requirement for a license. They had dropped from 257,000 barrels a day in May.
A stoppage in the shipments of ethane from the United States, which is extracted mainly from shale-gas and used as a feedstock for petrochemicals, would hurt both U.S. producers and Chinese petrochemical companies.
Ethane is used as a feedstock by Chinese petrochemical companies because it's cheaper than naphtha. U.S. producers of oil and gas need China to purchase their natural gas liquids, as the domestic supply exceeds the demand.
On Wednesday, at least eight vessels headed to China after being stalled on the U.S. Gulf Coast due to curbs in June. In June, at least one ship which usually travels between the United States of America and China travelled to India as companies searched for other markets.
Samantha Hartke, a Vortexa analyst, said Wednesday's letter was "business as usual". She added that she expected July's ethane to return to its seasonal norm of 240,000 barrels a day. Reporting by Arathy S. Somasekhar, Houston; editing by Lisa Shumaker
(source: Reuters)