Latest News
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Bloomberg News reports that Spirit and Frontier Airlines are considering a merger.
Bloomberg News reported?Tuesday that bankrupt Spirit Aviation Holdings was in talks to merge with Frontier Group Holdings. The report cited people familiar with the matter. Frontier's share price rose more than 5% after-hours. The report stated that a deal could be announced this month even though discussions are still ongoing. When contacted, both Frontier and Spirit Airlines declined to make any comments. According to the report, Frontier executives have been advocating merging both airlines for years. Both built their business on heavily discounted fares. The decision comes as ultra-low cost carriers struggle with rising costs and intense competition from larger U.S. airlines. A merger would mark a significant milestone for Spirit. In August, the company filed for bankruptcy for the second time in less than one year, citing declining cash reserves and mounting losses. Since then, it has cut staff, reduced flying, withdrawn from 14 airports, and reneged on more than 80 aircraft leasing commitments, as part of a wider?cost-cutting strategy. The airline secured additional emergency funding of $100 million on Monday to support its operations and restructuring while it is under bankruptcy protection. Reports of talks between Frontier and T-Mobile come a day after Frontier announced that longtime CEO Barry Biffle was stepping down. James Dempsey, an insider, has been given interim control. (Reporting and editing by Alan Barona, Shailesh Kumar and Abhinav Paramar in Bengaluru)
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US House panel votes on pay for air traffic controllers in shutdown
On Thursday, a U.S. House of Representatives Committee plans to vote on a bill?aiming??to prevent disruptions in aviation during government shutdowns. This will be done by paying air traffic controllers and key workers. The House Transportation and Infrastructure Committee announced Tuesday that it will vote this week on legislation requiring the Federal Aviation Administration (FAA) to approve supersonic air transport by April 20,27. President Donald Trump ordered the FAA in June to lift the ban on supersonic flights over land. The ban was first imposed in 1973 because of the property damage and hearing losses caused by sonic blasts. Environmentalists and supporters of supersonic flights have argued that they use more fuel per passenger compared to subsonic aircraft. Major airlines have backed legislation to pay air traffic controllers, noting that last month the 43-day U.S. shutdown and flight restrictions imposed by the government disrupted 6,000,000 passengers and 50,000 flights due to an increase in air traffic controller absences. In November 7, the FAA imposed unprecedented flight reductions at 40 U.S. major airports, citing safety concerns. This led to 7,100 cancellations of flights and affected 2.3 million passengers. The FAA sent letters of investigation to major carriers who did not appear to be following the required flight reductions. In a letter sent to Congress on Tuesday, FAA Administrator Bryan Bedford defended his decision to require flight reductions by saying that "data started to show a?potential risk to safety at certain airports with high impact." He also said he was "confident" that reducing operations in an uncertain and stressful period was the right choice. The committee will also vote on legislation that would?approve a move of the FBI headquarters from a building near Washington to another nearby one, which is expected to cost more than $1 billion. Maryland filed a lawsuit against the Trump administration last month over the decision to cancel a Biden era plan to build new FBI headquarters outside Washington. (Reporting and editing by David Shepardson, Washington)
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Port executive: Imports at the busiest US seaport fell 11.5% in November due to tariffs
Gene Seroka said that the Port of Los Angeles handled 11.5% less volume of imports in November than the same month last year. Shippers had built up early inventories to avoid President Donald Trump's new tariffs on items such as auto parts, toys and metal furniture. Imports at the Port of Los Angeles totaled 406,421 20 foot equivalent units (TEUs). He said that exports fell 8.4%, to 113.706 TEUs. This was due to the fact that retaliatory duties on U.S. agricultural and manufactured products, as well as trade agreements excluding United States, began to take hold. He said that export volume has fallen?for 11 consecutive months. Seroka expects the total volume to reach 10 million TEUs in 2025, roughly on par with 2024. It will be the third highest volume ever recorded despite the U.S. Tariff Policy. Seroka stated, "I believe the uncertainty will be here to stay for at least the next year." This is a headwind that we might have to deal with for a while. Descartes Systems Group, a provider of supply-chain technologies, said earlier this month that imports to all U.S. port fell 7.8% from the previous year in November due to a softening demand for Chinese goods and one less day in the holiday month. In the coming months, the U.S. Supreme Court is expected to make a ruling on the legality and tariffs imposed by the Trump administration under the International Emergency Economic Powers Act. U.S. trade representative Jamieson Greer stated earlier this month that if the justices rule in favor of the administration, Washington will turn to other laws for new tariffs. By 2026, the global?trade will continue to be threatened by tariff pressures and other factors, including Russia's conflict in Ukraine, and the fragile ceasefire that exists between Israel and Hamas?in Gaza. Constance Hunter said that large fiscal deficits could lead to austerity measures in many countries. She said that, closer to home, U.S. firms may begin?passing on more tariff costs, after absorbing them in this year. "That'll certainly put a dent in consumption." Hunter stated that?tax refunds under Trump's spending and tax bill could increase U.S. inflation and spending in the first quarter 2026. "We expect that the tax refunds will be a large part of consumer spending and close to 3% GDP by then." (Reporting and editing by Matthew Lewis in Los Angeles.
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Freeport LNG Export Plant in Texas reports the shutdown of its liquefaction trains
According to regulatory filings, Freeport LNG, a U.S. LNG company, shut down one of its three liquefaction trains at its LNG export facility in Texas on Tuesday. The plant is?one of?the most closely monitored U.S. export facilities for LNG in the world, because in the past changes in its operation have caused price fluctuations in global gas markets. Gas prices in the U.S. typically fall when flows to Freeport decrease due to a reduced demand for the fuel produced at the export facility. Prices in Europe are usually higher due to the drop in LNG supply available on global markets. The U.S. futures prices fell by 3% on Tuesday, reaching a new six-week low due to a shutdown of the Freeport liquefaction trains. The prices in Europe meanwhile held at a low of 19 months, but not necessarily due to Freeport. Freeport informed Texas environmental regulators on Wednesday that Train 2 was shut down Tuesday because of?a problem with a compression system. Freeport officials had no further comment. Before the news of the 'train shutdown', LSEG stated that gas flows to Freeport would?remain at around 1.9 billion cubic feet per day (bcfd), the same as on average?of prior seven days. Freeport's three liquefaction trains are capable of converting about 2.4 billion cubic feet per day of gas to LNG. A?billion cubic foot of gas can supply five million U.S. households for one day. (Reporting from Anjana Anil, Bengaluru; Scott DiSavino, New York. Editing by Chris Reese & Nick Zieminski.
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US Threatens Countermeasures After EU Fine on Musk's X
The Trump administration threatened on Tuesday a wide range of retaliatory actions against EU service providers. These could include fees or restrictions for foreign services if these firms continue to engage in what the USTR called “discriminatory” practices. In a recent post, the Office of the U.S. trade representative accused the 'EU and its member states of discriminatory and harassing lawsuits as well as?taxes fines and directives that target U.S. Services. It also said EU'service providers operate freely in the U.S. pointing out Accenture, DHL Siemens and Spotify among others. The USTR stated that "if the EU and EU member states?insist?on continuing to?restrict, limit, or deter the competition of U.S. services providers through discriminatory measures, the United States would have no choice but use every tool available to it to counter these unreasonable?measures." The USTR's threat follows a fine imposed by EU tech regulators on Elon Musk’s X social networking platform earlier this week. The USTR's office stated in a post that "should responsive measures be necessary, U.S. laws permit the assessment of fees or restrictions on foreign service, among other actions." It also mentioned other EU service providers Amadeus, Capgemini Mistral, Publicis, and SAP. (Reporting and writing by Ryan Patrick Jones, editing by Costas Pitas).
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BAE Systems reduces stake in Kazakh airline Air Astana
BAE Systems, a British company, announced on Tuesday that it would 'cut its stake in Kazakh airline Air Astana almost by half. The aircraft manufacturer, which holds 16.95% of Air Astana's shares, is selling global deposit receipts that represent?about 8 percent of the outstanding common shares. BAE's main business is to manufacture fighter jets and submarines. In?2001, it invested less than 10?million to fund Air Astana at a time that they were bidding to sell radar systems to Kazakhstan. After its dual IPO in London, and Kazakhstan last year, the?company has reduced its stake from?49% to?39%. According to LSEG, following the latest'sale', BAE Systems is expected to retain its position as Air Astana's second largest shareholder. (Reporting by Unnamalai L in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli)
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JD Vance makes an economic case in Pennsylvania, as U.S. citizens worry about costs
U.S.? Vice President JDVance visited Pennsylvania's Lehigh Valley Tuesday to try to boost the dour spirits of Americans. This comes a week after Donald Trump's comments in this same battleground state went off topic. The visit was part of a larger 'White House' effort to sharpen the economic message, as Republicans seek to retain power during the midterms. This is despite signs that voter dissatisfaction over cost has been undermining the party's standing in spite of upbeat rhetoric by the administration. Vance stated that "even though we have made tremendous progress, there is still a lot of work to be done. I would ask the American people for a bit of patience." Analysts say Vance's policy-focused and disciplined approach could help him make a stronger case for the economy than Trump. Trump excels at winning over his party base, but has trouble convincing people beyond that. "Trump is aware of one thing: He speaks well to his base. JD Vance is able to stick to his prepared arguments and the subject. It's impossible," said Larry Sabato a professor of Political Science at the University of Virginia. Trump delivered a speech at a Pocono Mountains casino in Pennsylvania on December 9th. It was the first of a series to respond to criticisms that he wasn't paying enough attention to voters complaining about?high prices. The 90-minute speech was a scathing attack on the transgender movement, Somali migrants living in Minnesota, and wind turbines. Trump also called the term "affordability", a Democratic hoax designed to inflate the cost of living, a sham. Trump acknowledged that prices were high but insisted on the booming economy and higher wages for people. The U.S. economy continues to grow steadily, but inflation continues pinching households. Many Americans are feeling the pinch as wage increases have not kept pace with living costs. In November, consumer confidence dropped to its lowest level in seven months. Vance will visit a huge Uline distribution center near Allentown, Pennsylvania before making remarks. Uline's billionaire owners, Liz and Dick Uihlein are among Trump's most generous political donors. They have contributed tens and millions of dollars to Trump's?campaign, and other causes. The Trump Administration delivers real affordability to working families. After years of Bidenflation costs are dropping, jobs are returning and economic confidence has been restored, said Republican National Committee spokesperson Kristen Cianci. Mike Barnes, 40, a warehouse worker from the Lehigh Valley said that the last few decades have been difficult for his family. He noted that high utility and food costs have offset any wage increases. He said that he believes Trump's actions in the first year will be beneficial to working Americans. "The media expected Trump to stick to his message, but the majority of Trump supporters like his freewheeling manner. Barnes stated that he thought the vice president was a good compliment to Trump, and the two were a great team in spreading the message. Julian Zelizer is a Princeton University presidential historian. He said Vance’s economic salesmanship would focus on specific arguments, and will draw more clearly from right-wing political thought. He said that reporters would focus less on style and performance and more on arguments. Zelizer stated that Vance might be better equipped to argue the case for economic policy. However, the stakes were high for both the Republican Party and the Obama administration. He said, "They are currently struggling as their economic policies don't match up to the positive rhetoric they keep delivering." (Reporting by Jarrett Renshaw, Writing by Trevor Hunnicutt, Editing by CaitlinWebber Michael Perry and ChizuNomiyama)
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After years of delay, new Rome metro stations display ancient treasures
After years of delays, and spiraling costs, two new metro stations were inaugurated in Rome on Tuesday. One was near the Colosseum. It showcased archaeological discoveries which?might be tourist attractions by themselves. The driverless Metro C now stretches from the eastern suburbs of the Italian capital to Porta Metronia, the Colosseum and its historic centre. The next plan is to go even deeper into Rome's baroque center, under the Tiber river and on the Vatican. However, the next stop will not be Piazza Venezia until 2032. The archaeologists had to preserve layers of ancient Rome that they didn't know existed. Drilling rigs at Porta Metronia uncovered a military base dating back to 2,000 BC, as well as a residence, complete with frescoed walls and mosaics. These are now preserved in the museum of the station. Workers discovered 28 ancient wells during the Colosseum excavations. They also found hundreds of everyday objects, such as hairpins, oil lamps in phallic shapes, irrigation pipes and knives. Matteo Salvini, Minister of Transport, said that the two stations would travel "around the world" and soon be a hit on social media. These stations will serve commuters and Romans as well as anyone coming from Italy or abroad. "They might ride the metro even though they don't really need it. They just want to enjoy the ride," said he. Long delays, cost increases Metro C in Rome was supposed to connect the two major basilicas of the city by 2000. The line reached San Giovanni Basilica only in 2018 and the Vatican Station near St. Peter's Basilica will not be finished for another decade. The original plan to build 24 stations leading up to the Colosseum cost 2.23 billion euro ($2.63 billion). However, costs have risen past 3 billion euro and the line could reach 6 billion dollars by the time it is completed. Engineers claim that Rome is one of the most difficult cities to build a metro system in, because there are buried archaeological sites which need to be protected and vibrations may damage heritage aboveground. The next stop is Piazza Venezia where a team of construction workers are digging an '85-metre-deep (280 feet) ring that will be filled with concrete reinforced to protect the six underground levels being excavated. Roberto Gualtieri, the mayor of Rome, said that it is worth the effort. He said that without these major works we "would not have discovered the barracks in Porta Metronia. We would never have located these wells and today, we would know far less about our incredible past." Metro C will carry 600,000 passengers per day. This will ease Rome's notoriously bad traffic and allow tourists to travel faster between the major tourist attractions. The current number of passengers is 41,000, but with the new openings that should increase. (Reporting and editing by Ros Russell; reporting by Crispian B.)
Indonesia's Prabowo is checking out methods to remove fiscal deficit ceiling, Tempo reports
Indonesia's incoming President Prabowo Subianto is checking out possibilities to get rid of the financial deficit and debttoGDP ratio ceilings, aiming to fund his campaign pledges, investigative magazine Tempo reported today, mentioning unknown sources.
Under Indonesia's State Financing Law, presented in the aftermath of the Asian financial crisis in the late 1990s, the federal government's yearly deficit spending is capped at 3% of gross domestic item and the optimum debt-to-GDP ratio is 60%.
Prabowo has established a special group to review alternatives to revise the laws to remove the fiscal limitations, along with to create a new taxation firm, according to the Tempo report, which mentioned three sources.
The group is being supervised by a former chief justice of the Constitutional Court, Jimly Asshiddiqie, Tempo said.
Jimly informed on Tuesday he has actually been supervising a team to evaluate a variety of laws, including the State Financing Law, but did not respond to concerns on financial ceilings.
I'm providing advice ... so the creation of the new tax agency would not violated any existing laws, he stated.
Prabowo's financial group did not right away react to request for remark.
Prabowo's plans to increase costs in Southeast Asia's. biggest economy has currently put the debt and currency markets on. edge. Some economic experts have flagged increasing fiscal threats under. the incoming administration which has actually assured to increase economic. development to 8%, from around 5% now.
The rupiah struck four-year lows last month following a. report that Prabowo intends to raise the debt-to-GDP ratio. to 50% slowly, from under 40% now, a strategy that the. president-elect's financial group has actually rejected.
Prabowo's group has stated the next federal government is dedicated to. financial targets set by the existing federal government, including the 2025. financial deficit within the variety of 2.29% to 2.82% of GDP.
(source: Reuters)