Latest News
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China offers incentives for Taiwan after opposition leader's visit
China announced 10 new incentives measures for Taiwan on Sunday, including relaxing tourist restrictions, allowing "healthy" TV dramas and facilitating the sale of food. This follows a visit by Taiwan's opposition leader. Cheng Li-wun (chairwoman of Taiwan's biggest opposition party, the Kuomintang KMT) made the decision at the end of a visit to China. She spoke with Chinese President Xi Jinping about the importance of peace and reconciliation. The 10'measures', announced by the official Xinhua News Agency, "explore" establishing a'regular communication system between the KMT, and China’s Communist Party. They also include the full resumption of flights between both sides, and allowing individuals from Shanghai, and Fujian Province, to visit Taiwan. Xinhua reported that a mechanism would be created to reduce the?inspection standard for food and _fishery products. However, this must be based on the political basis of "opposing Taiwan's independence". Taiwanese dramas, documentaries, and animations will be permitted to be shown, as long as they are "correctly oriented, have healthy content, and are of high production quality," it added. Taiwan's government did not immediately respond. China has refused to speak to Taiwan's President Lai Ching-te because it believes he is "separatist." He rejects Beijing’s claims of sovereignty over the democratically-governed island. China and Taiwan blamed eachother for the failure of a large-scale Chinese tourism on the island after the end of the COVID-19 epidemic. Taiwan complained before about Chinese restrictions?on the imports of certain agricultural and aquatic products. It claimed that China had in some cases used unjustified reasons to stop the spreading of pests and disease.
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Israel reprimands Spain for blowing up an effigy of Netanyahu
Israel announced on Saturday that it had reprimanded Spain’s most senior diplomat in Tel Aviv for the explosion of a giant effigy?of Prime Minister Benjamin Netanyahu this week in a Spanish town. Maria Dolores Narvaez, the mayor of El Burgo in southern Spain, told local TV that the seven-metre-high (23-foot-high)?figure had been packed with?14 kg (31 lb) gunpowder during a ceremony held for decades on April 5. Israel's Foreign Ministry stated in a press release on X that highlighted a video, "The appalling hatred of Jews on display is the direct result from Spanish Prime Minister Pedro Sanchez's Government's systematic incitement." I was not able to confirm the video immediately. "The Spanish government is committed to combating antisemitism, hate and discrimination in any form. We reject any 'insidious allegations' that suggest the opposite, a Spanish Foreign Ministry?source said. El Burgo Mayor Narvaez stated that the town had previously used effigies for U.S. president Donald Trump and Russian president Vladimir Putin at the annual event. Spain has always been a vocal critic of U.S. military operations in Iran and Lebanon. This is despite U.S. warnings to punish non-cooperative NATO members. Spain and Israel have been involved in a long-running dispute that began with the Gaza War. Gideon Sa'ar, Israeli Foreign Minister said that a Spanish ban on aircraft or ships transporting weapons to Israel through its?ports and?airspace was antisemitic. Spanish Foreign Minister Jose Manuel Albares has accused Israel of breaking international law and the two-week truce after a wave of airstrikes across Lebanon this week. Netanyahu claimed on Wednesday that Lebanon is not a part of the ceasefire, and Israel's military continues to attack Hezbollah with force. Sanchez, who is a prominent opponent of the Iran War, has shut down Spanish airspace for any aircraft that may be involved in an encounter he describes as reckless and illegal. (Reporting and editing by Alexander Smith; Reporting by Graham Keeley)
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The pilots' union has called for strikes on April 13 and 14.
?Union VC called on 'pilots 'at Lufthansa on a saturday to strike for two days starting on Monday over a pension dispute, saying the company has failed to make an acceptable offer. The union has asked pilots at Lufthansa CityLine, Lufthansa CityCargo, and Lufthansa Cargo to strike between April 13, 0001 CET (2221 GMT) and April 14, 2359 GMT (2159 GMT), the union stated. The ban excludes flights to the following Middle East countries: Azerbaijan (Azerbaijan), Egypt (Bahrain), Iraq, Israel (Israel), Jordan (Jordan), Kuwait, Lebanon, Oman and Saudi Arabia. The union has also asked pilots at Lufthansa's subsidiary Eurowings to go on strike from 0001 to 2359 CET on the 13th of April. The Cockpit 'union felt compelled to make this move after the employers showed no real willingness -to reach a resolution in several collective bargaining Disputes, said VC President Andreas Pinheiro. "Despite our deliberate choice not to strike over Easter holidays, no serious offer has been made." Lufthansa stated in a press release that VC's announcement was a "completely a new escalation" and questioned the union's demands to "double a company pension plan which is already excellent and above average". Reporting by Christoph Steitz, Ilona Knowebach. Jane Merriman edited the article.
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India increases export duties on aviation turbine fuel, diesel
India has raised its windfall 'tax' on the export of diesel and aviation turbine fuel, which it had imposed last week to ensure an adequate supply at home. India's Finance Ministry increased taxes on diesel exports to 55.5 rupees/litre from just 21.5 rupees/litre. The tax on aviation turbine fuel exports was also raised from 29.5 rupees/litre to 42 rupees/litre. India cut the excise tax on petrol and diesel last month by 10 rupees ($0.11). To control the rise in airfares it also set a limit of 25% on domestic airline fuel prices. Jet fuel can account for up to 40% of airline expenses. The global oil price has risen to $100 per barrel as the U.S. - Iran war continues to restrict the flow of crude oil through the Strait of Hormuz. This is the conduit that carries 40% of India's crude?oil?imports. India is the third largest oil consumer and importer in the world, and it relies heavily upon foreign supplies. (Reporting and writing by Nikunj Ahri; editing by Jan Harvey).
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Irish police break up blockade by protesters at high fuel prices
Irish police cleared protesters who had blocked the only oil refinery in Ireland on Saturday, after a senior government minister said that protests over surging fuel prices created a "very danger economic moment" for Ireland. Protesters angry by a rise of more than 20% in diesel prices following the U.S./Israeli war on Iran have used tractors and trucks to block a Whitegate refinery and a fuel terminal, as well as a few roads in Dublin's capital. The government said that hundreds of petrol stations were left 'without fuel,' putting emergency services at risk. State broadcaster RTE reported that police detained one protester and pushed others back at the Whitegate refinery on Saturday. The police released a video on social media that showed a number?of oil trucks?entering the refinery. After Finance Minister Simon Harris stated that the protests caused an "extremely hazardous moment" for the economy, this action was taken. Micheal Martin, the Prime Minister, said on Friday that the country was in danger of being forced to stop oil deliveries. Conor Humphries is the author. (Editing by Jane Merriman.
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Cathay Pacific will cut flights between mid-May and end-June due to rising jet fuel prices
Cathay Pacific Airlines announced on Saturday that it would cut some flights from mid-May until the end of June, citing the rising costs of jet fuel caused by the Middle East conflict. It was reported that the airline would cancel about 2% scheduled passenger flights between May '16 and June 30, 2026. Meanwhile, its budget arm HK Express would cut around 6% starting May 11. The airline said that the suspension of passenger services between Dubai and Riyadh will remain in effect until June 30. Cathay's CEO Ronald Lam announced last month that the Hong Kong-based carrier would expand its passenger capacity this year by 10%, citing a strong demand for flights to North America and Europe, as well as Australia, after the Iran War cut off traffic in the Middle East. Cathay?Pacific said that it plans to continue operating all scheduled passenger flights beyond June. Executives said that the two-week?ceasefire? between President Donald Trump and Iran will not bring immediate relief to the aviation industry. Officials in the industry have warned that jet fuel supplies will be tight and expensive for several months even if Iran were to reopen the Strait of Hormuz. (Reporting and editing by Anusha in Bengaluru)
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German Finance Minister: Market intervention is needed to combat energy crisis.
The German Vice-Chancellor and Finance Minister Lars 'Klingbeil said on Saturday that government action was the best way to reduce soaring fuel and diesel prices. This exacerbated a rift within the coalition about how to tackle the current energy crises. The Iran War has disrupted the global energy supply, causing Europe's biggest economy to face higher gas and oil prices at a time of tepid economic growth. "Intervening on the market is the most effective approach." In other European countries, we see this," Klingbeil said to Sueddeutsche Zeitung during an interview. This put him at odds with Economy Minister Katherina Reiche. "And I think we should also have this courage." Klingbeil reiterated his plans to impose a windfall on the profits of energy companies, given the high petrol prices. He added that this would enable Germany to "skim crisis profits and?use them for real relief for its citizens". It should be accompanied by a reduction of?energy tax as well as price cap for petrol and diesel similar to that in other European countries. "I cannot explain to anyone how in countries like?Belgium or Luxembourg, neither of which are communist, the government caps prices while here, they skyrocket," said?Klingbeil. Reiche of the Christian Democrats branded Klingbeil’s proposals as "expensive" and "ineffective". He added that coalition leaders will continue to discuss possible solutions this weekend. (Reporting and editing by Chizu Nomiyama)
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FAA and Pentagon sign agreement to deploy anti-drone Laser System near Mexico
The Federal Aviation Administration and Pentagon announced on Friday that they had signed an agreement to allow the government to use a high-energy laser counter-drone along the southern border of the United States with Mexico. After the FAA tested the laser system in New Mexico used by the Pentagon, Homeland Security Department, and verified that the proper safety controls were in place and did not pose any undue risk to passenger aircraft. Two previous incidents raised serious concerns. The U.S. Military accidentally shot down a drone using the laser-based systems on?February 25. This led the FAA (Federal Aviation Administration) to extend the area where flights around Fort Hancock, Texas are prohibited. This incident occurred after the FAA halted all flights at the El Paso Airport for 10 days on February 18, due to the use of a 'Pentagon Laser System' by Homeland Security without completing a safety review by the FAA. After the White House intervened, the FAA lifted the shutdown order for El Paso after eight hours. After a thorough and data-driven Safety Risk Assessment we concluded that these systems did not pose an increased risk for the flying public," FAA Administrator Bryan Bedford stated on Friday. Pentagon officials have confirmed that more than 1,000 drones are used along the U.S. - Mexico border each month. U.S. officials are increasingly concerned about Mexican cartels using drones to deliver drugs or monitor trafficking routes. Media outlets reported that drones were spotted last month over Fort McNair, Washington, where Secretary of State Marco Rubio and Defense Secretary Pete Hegseth reside. The Pentagon has not announced any plans to deploy the Laser at the base which is located near the Reagan Washington National Airport. Last month, Democratic Senator Tammy Duckworth called for federal watchdogs review the decision making process that led to the use and decision by the FAA to close airspace. (Reporting and Editing by Franklin Paul & Rod Nickel, Rod Nickel, David Shepardson)
Maguire: Trump's oil and gas export boom could be a bust due to the trade spat with Europe.
Donald Trump's second term as president will make it easier for oil and gas producers to increase production and exploration in the United States. The biggest challenge may be finding local markets that are profitable for their products.
The new administration is expected to streamline the permit process for fossil fuel extraction and distribution, which should lead to an increase in U.S. natural gas and oil production. These are already at record levels.
This bodes well not only for the firms exporting liquefied gas, crude oil or refined fuels but also for those who export them. It will encourage the growth of U.S. exports.
Energy exporters are also at risk of being caught up in a trade war if Trump's plan of imposing steep tariffs on an array of imported goods causes retaliatory reactions in consumer markets.
EUROPEAN TARGET
The incoming administration is likely to target European nations with tariffs due to the U.S.'s long-standing trade deficit with Europe, which amounts to around $240 billion per year. This is a major irritation for Trump's allies.
Last month, President-elect Trump warned that Europe will "pay a high price" if it does not buy enough American exports. He also threatened to impose tariffs on all European goods.
According to Kpler's ship tracking data, Europe is the largest market for U.S. crude oil and LNG exports.
Since Russia's invasion in Ukraine 2022, Europe had to import record quantities of fuels and oils from other suppliers. The U.S. was the main beneficiary, shipping out record amounts of these commodities.
According to the U.S. Energy Information Administration (Kpler) and U.S. Energy Information Administration, U.S. exports of LNG will reach over $30 billion in 2023. Two-thirds are destined for Europe.
EIA data shows that the U.S. will export crude oil worth $10 billion in 2023. Just under half of this amount will be sent to Europe.
Big Money
The U.S. oil and LNG shipments have led to a boom in profits for U.S. companies and valuable tax revenues for the U.S. Treasury, which the next administration wants to protect.
The high cost of imported energy has hurt European consumers as well and is speeding up Europe's transition from fossil fuels to renewable energy.
The slowdown of economic activity also affected industrial gas consumption and power consumption. This has led to a drop of more than 20 percent in Europe's imports of LNG in the first 10 month of 2024 compared to the same period in 2023.
Kpler data shows that Europe's crude oil imports from the United States have reached a new record in 2024, but overall crude imports on the continent have decreased by about 1%.
The overall gas consumption remains low, while the supply of crude oil from alternative suppliers is abundant.
IN THE CROSSHAIRS?
European policymakers have already planned responses to Trump's proposed tariffs. They are wary of the potential for a deterioration of economic ties with an important trade partner, while also embroiled in trade disputes with China.
Experts in Brussels, the home of the European Union policy arm, will be looking to avoid any further deterioration in the economy in the region and will most likely want to maintain strong relations with the U.S. throughout Trump's second term.
They will, however, not be afraid to propose tariff measures during negotiations, even if it is just to avoid being slammed by the blanket tariff threats of the U.S.
U.S. energy is likely to be a popular option for retaliatory duties, as Europe can easily source LNG and crude oil from other eager sellers. This will hurt U.S. producers without harming the consumers of Europe.
U.S. RISK
If Europe is somehow cut off in a trade dispute, U.S. exporters of energy products could divert cargoes to another buyer.
In reality, however, losing European buyers could be a serious blow for U.S. companies, particularly LNG exporters.
The U.S. LNG terminals located either on the East Coast of the U.S. or the Gulf Coast are more suited to serve a Pan-Atlantic route rather than a Pacific trade route to Asia.
It is only a fraction the distance to Asia and the time it takes to reach major buyers.
The trip takes about 12 days from Cove Point LNG Terminal in Maryland to Wilhelmshaven, Germany - one of Europe's major LNG import hubs - which is only a third the time it would take to travel to Guangdong, China - the world's biggest LNG buyer.
LNG sellers need to maximize revenue, and longer journeys means longer turnaround times.
While U.S. sellers can maintain their total export volume by redirecting cargoes to Asia if Europe becomes off-limits, they will most likely incur higher shipping costs and take longer to return if they have to go to Asia.
The same would be true for crude sellers if European buyers chose to buy from other suppliers, as oil exporters in the Middle East are already very well-served by global consumers.
The next U.S. administration will likely see an increase in the volume of energy exported by U.S. companies. However, there is a risk that they may face a trade dispute with European buyers who could make it difficult to sell those additional volumes.
(source: Reuters)