Latest News
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Bloomberg News reports that Brookfield and GIC are close to a binding offer for National Storage.
Bloomberg News, citing sources familiar with the situation, reported Sunday that Brookfield Asset Management (BAM) and Singapore's GIC were close to making a binding bid for National Storage REIT. The deal could value the Sydney listed company at around 4 billion Australian Dollars ($2.65 billion). The report stated that the parties were finalizing the details of the deal, which could be announced as early as Monday. Brookfield and GIC had also made good progress in their due diligence process on National Storage. The report states that the price for the binding offer will likely be the same in November as the conditional offer. Could not verify immediately the report. National Storage REIT announced last month that it received an A$4.02 Billion buyout offer by a consortium consisting of Brookfield, Singapore's GIC and other companies. This would have been the largest real estate privatisation in Australia. ($1 = 1,5067 Australian Dollars) (Reporting and editing by Andrea Ricci in Bengaluru)
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Canada's Air Transat suspends flights after pilots union strikes notice
Transat AT, a Canada-listed tour operator, announced on Sunday that Air Transat, Canada, will suspend its flights from December 8 to 9 after receiving a 72-hour notice of strike by ALPA, the union which represents the 700 pilots at the company. Air Transat's pilots may begin their strike as early at 3:00 am. Air Line Pilots Association said that the strike would begin at 3:00 AM ET on December 10. The Canadian leisure carrier deemed the strike announcement "premature", given the progress made at the bargaining tables. It said that it had offered compromises including a salary increase of 59% over five years, and improved working conditions. Bradley Small, Chair of the Air Transat Master Executive Council, said: "There's still time to avoid striking, but unless there are significant improvements at the bargaining tables, we may strike to get a modern contract." Transat AT reported that Air Transat was working with the union in order to avoid a strike, but it will stop all operations on December 9th to ensure passengers and crews are not left stranded. Transat AT Inc. offers Air Transat as a brand. Reporting by Abu Sultan in Bengaluru and Shivani Tana; editing by Andrea Ricci
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American Airlines asks for notices regarding the bankruptcy of Spirit Airlines
According to a court document, American Airlines has filed an appearance notice in the bankruptcy proceedings of Spirit Aviation and requested that all notices and documents be served going forward. Spirit filed for bankruptcy a second-time in August as it struggled to deal with its dwindling reserves of cash and increasing losses. The airline stated that it was looking at all possible options in its restructuring, including a merger and sale of the business. American Airlines filed a request in the Southern District Court of New York on December 5, requesting to receive all notices, including operating reports and plans of reorganization, as well as liquidation statements. Spirit and American didn't immediately respond to a comment request. Spirit Airlines has previously stated that they are considering all options to ensure the future of their airline. Spirit actively explores all possible opportunities. The merger or sale of Spirit could maximize value. Spirit stated in a SEC filing in October that the company was actively involved in discussions with several interested counterparties. The U.S. Supreme Court earlier this year rejected a request from American Airlines to overturn a judicial ruling that found the company's scrapped U.S. Northeast Partnership with JetBlue Airways in violation of federal antitrust laws. JetBlue and United Airlines have partnered in a partnership since then. You can also Both airlines' websites allow travelers to book flights. Spirit Airlines urged the U.S. Transportation Department in June to reject the collaboration of United and JetBlue. Spirit Airlines said it was anti-competitive and that other large airlines would pursue similar deals. Reporting by Doyinsola Oladipo in New York, editing by Andrea Ricci
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American Airlines asks for notices regarding the bankruptcy of Spirit Airlines
According to a court document, American Airlines has filed an appearance notice in the bankruptcy proceedings of Spirit Aviation and requested that all notices and documents be served going forward. Spirit filed for bankruptcy a second-time in August as it struggled to deal with its dwindling reserves of cash and increasing losses. The airline stated that it was looking at all possible options, including a merger and sale of the business. American Airlines filed a request in the Southern District Court of New York on December 5, requesting to receive all notices, including operating reports and plans of reorganization, as well as liquidation statements. Spirit and American didn't immediately respond to a comment request. Spirit Airlines has previously stated that they are considering all options to ensure the future of their airline. Spirit actively explores all possible opportunities. The merger or sale of Spirit could maximize value. Spirit stated in a SEC filing in October that it was actively in talks with several interested counterparties. (Reporting from Doyinsola Oladipo in New York, editing by Andrea Ricci.)
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Southwest Airlines fined $11 million by the US for holiday meltdown in 2022
The Trump Administration announced Saturday that it would waive a $11 million fine on Southwest Airlines, as part of the $140 million settlement for the airline's meltdown during a busy travel season in December 2022. Southwest Airlines in December 2023 will pay $35 million in cash and $90 million worth of travel vouchers for passengers who are delayed by at least 3 hours in reaching their final destination due to an airline issue or cancellation. This is because the airline handled the meltdown which stranded over 2 million passengers. In a written order, the U.S. Transportation Department cited Southwest Airlines' decision to invest more than $1 billion into its operations since the 2022 crash to improve performance and reliability as the reason for its decision to waive the remaining $11 millions of the fine due by January 31. Reporting by David Shepardson, Editing by Chizu nomiyama
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Merz and Macron to discuss fate FCAS fighter jet in the week of December 15, says industry source
A source in the industry said that the German Chancellor Friedrich Merz, and the French President Emmanuel Macron plan to discuss the fate the troubled Franco German fighter jet project FCAS – or SCAF – during the week of December 15. The Future Combat Air System (FCAS), a 100 billion-euro ($116-billion) project that was floated over eight years ago, is mired in disputes among the companies concerned about workshare and prized technologies. A source with knowledge of the project said earlier this week that the defence ministers from the participating countries, Germany, France, and Spain, will meet on the 11th to discuss it. The German government spokesperson refused to comment on the exact date but only said that the appointments made by the chancellor will be made public at the appropriate time. The French government did not respond to a request for comment. The French government was not immediately available for comment.
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Bloomberg News reports that Indian and US investigators will meet next week to discuss the Air India crash.
Bloomberg News reported that India would send investigators next week to the United States to review data collected on the fatal Air India crash in June, with the National Transportation Safety Board. The report cited people with knowledge of the situation as saying that Indian investigators planned to share their findings, which included any information they gleaned from cockpit voice and flight recorders. Could not verify immediately the report. The report stated that the meeting would take place at the NTSB headquarters in Washington D.C. Other parties, including Boeing representatives, will also be present. Boeing referred all comments to the Aircraft Accident Investigation Bureau. NTSB, India’s civil aviation ministry, and the AAIB didn't immediately respond to requests for comments. Shortly after takeoff, the Boeing 787 Dreamliner departing from Ahmedabad in India and heading to London began to lose thrust. The 242 passengers and 19 people on the ground were all killed, except for one. (Reporting and editing by Aidan Lewis, Aurora Ellis and Yazhini MV from Bengaluru)
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IAEA: Ukraine's Zaporizhzhia Nuclear Plant temporarily lost electricity overnight
The International Atomic Energy Agency reported on Saturday that Ukraine's Zaporizhzhia Nuclear Power Plant temporarily lost all of its off-site electricity overnight. It cited Director General Rafael Mariano Grossi. Since March 2022 when Russian forces seized much of the southeast Ukraine, this nuclear plant - Europe's biggest - has been under Russian authority. The plant is currently not producing electricity, but it relies on external power in order to keep the material cool and prevent a meltdown. IAEA reported that the plant had been reconnected after a 30-minute outage to a power line of 330 kilovolts (kV). The Russian-installed plant management said that the 750 kV power line, which was also previously disconnected, was now back in operation. Stable power supply was restored, they added. The management stated that radiation levels were normal. IAEA said that widespread military activities over night affected Ukraine's power grid, and caused operating nuclear power plants to reduce their output. Reporting by Gnaneshwarrajan and Yazhini MV in Bengaluru, Editing by Aidan Lewis & Bernadettebaum
Take 5: Rate cuts and politics, state no more
It's a packed week ahead with U.S. inflation data, the start of Q3 earnings, a French budget and potentially a big rate cut from New Zealand.
Financiers are likewise on edge as Middle East tensions intensify, while Japan's new Prime Minister Shigeru Ishiba remains in the spotlight.
Here's all you need to learn about the week ahead in international markets from Lewis Krauskopf in New York City, Yoruk Bahceli in Amsterdam, Karin Strohecker and Amanda Cooper in London and Kevin Buckland in Tokyo.
1/ ONE YEAR OF WAR
One year on from Hamas' Oct. 7 attack on Israel and the region looks on the verge of a vast war that could potentially improve the oil-rich Middle East.
The conflict, which has actually eliminated more than 42,000 individuals, the vast majority in Gaza, is spreading. Israeli troops are now in neighbouring Lebanon, home to Iran-backed Hezbollah; Iran launched a large scale rocket attack on Israel previously this week.
International markets have actually remained broadly unfazed. Oil rates, the main channel for tremblings further afield, have jumped about 8% this week, however soft need and adequate supply worldwide have kept a cover on gains. A more escalation between Iran and Israel could alter that, specifically if Israel strikes Iran's. oil centers, a choice that U.S. President Joe Biden said was. under conversation.
The scars of the conflict are visible on Israel's economy,. which has suffered a number of sovereign downgrades and seen its. default insurance coverage spike and bonds slide.
2/ HECTIC TIMES
U.S. third-quarter profits season is about to kick into. equipment, posturing a test for a stock market near record highs and. trading at elevated valuations.
JPMorgan Chase, Wells Fargo and BlackRock. report on Friday. Other results earlier in the week. include PepsiCo and Delta Air Lines. S&P 500. companies in general are anticipated to have increased Q3 incomes by. 5.3% from a year previously, according to LSEG IBES.
Thursday's September U.S. customer price index, on the other hand,. will be carefully looked for indications that inflation is moderating.
Investors are currently expecting large rate cuts, after. the Federal Reserve started its easing cycle last month.
In other places, investors will look for to evaluate the economic fallout. from a dockworker strike as U.S. East Coast and Gulf Coast ports. resumed on Thursday.
3/ A RECKONING
France's brand-new government provides its long-awaited budget to. parliament on Thursday. It's preparing a 60-billion-euro. belt-tightening drive, around 2% of GDP, next year.
It reckons spending cuts and tax hikes must bring the. deficit, seen increasing to 6.1% this year in the most recent upward. modification, to 5% by end-2025. The target date for reaching the. euro zone's 3% deficit limitation is also being pushed back to 2029. from 2027.
That's bad news simply ahead of ranking evaluates starting. with Fitch next Friday.
Markets are not satisfied. Having actually reduced somewhat, the extra. premium France pays for its 10-year debt over Germany's broadened. back to just under 80 bps, near its greatest since August.
Eventually, what may matter more is whether Prime Minister. Michel Barnier can pass the budget plan, provided a divided parliament. that has investors questioning how long his government will. last.
4/ FEELING SHEEPISH
A reluctant joiner to international reducing, the Reserve Bank of. New Zealand is catching up quick.
It fulfills on Oct. 9 and traders reckon the central bank could. follow the Fed's example and cut rates by half a point.
The RBNZ cut rates by 25 bps to 5.25% in August, a year. ahead of its own projections.
Market values in a drop listed below 3% by end-2025. This will. still be above where traders believe U.S. and euro location rates will. be.
Shorter-term investors are neutral towards the kiwi, however. hedge funds have lapped it up this year.
Positioning and possibly higher rates than others might. insulate New Zealand's currency. So might the return of. so-called bring trades and in this case, basically a bearish. bank on the yen in favour of bullish ones on high-yielders such. as the kiwi.
5/ SURVEY POSITIONING
When Shigeru Ishiba shocked markets by winning the contest. to end up being Japan's prime minister, financiers hurried to. re-position themselves for higher rate of interest.
A week on and the landscape looks different, as Ishiba. back-flipped not just on monetary policy, but on prior. market-unfriendly assistance for higher corporate and capital gains. taxes.
It's possibly not surprising for a hawk to conceal his talons. with a snap election looming on Oct. 27.
Nevertheless, Ishiba was unabashedly blunt, stating after a. meeting with the Bank of Japan - whose self-reliance Ishiba has. vowed to honour - that the economy is not ready for even more. rate hikes.
The yen, which had actually been rising, moved previous 147 to a six-week. trough by Thursday. Japanese stocks rebounded from their. steepest slide considering that early August.
Check back in a month from now for any additional policy. flip-flops.
(source: Reuters)