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Valor reports that Azul, a Brazilian airline, will file for Chapter 11 bankruptcy protection.
The newspaper Valor Economico, citing reliable sources, reported that the Brazilian airline Azul will file for Chapter 11 bankruptcy in the United States on Tuesday. This move will make the airline the latest Latin American carrier to declare bankruptcy following the depressed state of the industry in the first months of the COVID-19 epidemic. Azul would be following in the footsteps Aeromexico and Colombia's Avianca, as well as its two biggest rivals Gol and LATAM Airlines. All of these companies have filed for bankruptcy in recent times. Azul struck deals with bondholders and lessors last year to raise more financing. However, its balance sheet was still severely strained. Azul's net loan debt increased by 50% in the first quarter of this year, reaching 31.35 billion reals ($5.56 billion). Its leverage ratio also increased to 5.2 from 3.7.
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SpaceX Starship launches on ninth test after two previous flights blew up
Starship, Elon Musk's futuristic SpaceX rocket, which is aimed at multi-planet travel, was launched from Texas Tuesday for its ninth test flight without crew. The mission was to achieve a successful launch after two previous attempts had ended in an explosive failure. The SpaceX Super Heavy rocket booster atop the Starship vessel, which is a two-stage spacecraft consisting of a Starship vessel, was launched at approximately 7:36 pm EDT (2330 GMT) from Starbase, the launch site of the company on the Gulf Coast of Texas, near Brownsville. SpaceX's live webcast showed the rocketship rising into the evening sky from the launch tower as its cluster of powerful Raptor engine roared to life, accompanied by a ball or flames and clouds of exhaust gas and water vapor. SpaceX has launched its Starship system using a Super Heavy booster that had previously been flown. The goal was to demonstrate the reusability of the booster. The first-stage booster, measuring 232 feet (71 meters), will not return to the launch pad. Instead, it will splash down in the Gulf of Mexico. SpaceX received a license from federal regulators for Starship’s latest flight attempt only four days ago. This capped an investigation into a mishap that grounded Starship for almost two months. The vehicle's ascent caused it to break apart, causing debris to rain down over the Caribbean region and disrupting commercial flights. The Federal Aviation Administration has expanded debris hazards zones around the launch path of Tuesday's launch. This is the ninth full-scale test flight in the Starship campaign. SpaceX has suffered a series of failures in the early stages of test flights, which it had previously achieved with ease. This is a major setback for Musk, the billionaire who founded SpaceX in 2002 and had hoped to accelerate the program this year. Musk, the wealthiest person in the world and a major supporter of U.S. president Donald Trump, is eager to see his SpaceX venture succeed after pledging recently to focus his attention back on his business, especially following his turbulent forays into national politics and attempts to cut government bureaucracy. Musk expects Starship to help him achieve his goal to produce a large multipurpose spacecraft that can carry people and cargo on the moon in this decade, and eventually fly to Mars. Musk sees Starship eventually replacing SpaceX Falcon 9 as the main workhorse of its commercial launch business. The company already launches most of the world’s satellites into low-Earth orbit. Musk was to give an update on his ambitions for space exploration in a Starbase speech following the test flight. The speech would be streamed live under the slogan "The Road to Making Life Multiplanetary." He was expected by many to announce new timelines and plans for the voyages of Starship to Mars. Mars is a future destination that's tantalizing, but far away. It poses a number of technical challenges for SpaceX and NASA. The speech may also provide clues as to the future of NASA's strategy for human spaceflight. Musk is known for making overly optimistic projections regarding SpaceX's timelines. However, he now has a much greater influence over the Trump administration’s space agenda. Musk has a vision of launching humans to Mars on the 400-foot (122-meter) tall Starship rocket. This system will also expand SpaceX's global leadership in the satellite launch industry, which it gained with the reusable Falcon 9 rocket. Starship, which NASA selected in 2021 to be the vehicle that will return humans to the surface of the moon this decade for more than 50 years - is expected to play a bigger role in U.S. Space Program. Trump has promoted Musk's Mars vision and attended a Starship launch test in November. Musk and SpaceX continue to have a significant influence on U.S. Space Policy despite recent signals of reducing political spending and his shift away from the government. Trump's pick to lead NASA is Jared Isaacman. A billionaire astronaut and SpaceX client for whom Musk advocated in April, Isaacman testified before an U.S. Senate Committee but hasn't advanced through the confirmation process. Meanwhile, significant changes are looming at the U.S. Space Agency. The White House budget plan released earlier this year proposed $6 billion of cuts to NASA. This would have strengthened the agency's focus on Mars and threatened programs that Musk, Isaacman and others had criticized. Musk, who was born in South Africa, was one of the cabinet members Trump had present at a May 22 event that drew tension between him and the South African president Cyril Ramaphosa. The U.S. President pointed Musk out as he stood among the Trump officials. Trump stated that "he actually came here to discuss a different topic: sending rockets on Mars." "He prefers this subject." Steve Gorman, Los Angeles, wrote and reported on the story, with additional reporting from Joe Skipper in Starbase, Texas; Joe Brock, Matthew Lewis, and Cynthia Osterday edited it.
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US Judge temporarily blocks Trump Administration from cutting funding over New York congestion programme
New York officials reported that a U.S. Judge issued an order on Tuesday temporarily prohibiting the U.S. Transportation Department to withhold federal funding for New York, as the Trump Administration seeks the end of Manhattan's congestion-pricing program. U.S. District Court Judge Lewis Liman conducted the hearing one day before the possible start date for the federal government withholding approvals of New York projects. This was according to a warning from U.S. Transport Secretary Sean Duffy. New York Governor Kathy Hochul stated that the decision was "a massive victory for New York commuters and vindicating our State's right to make decisions about what is best for our streets." New Yorkers should be able to make their own decisions about traffic, and keep our streets free of gridlock. Janno Lieber, the chief executive of the Metropolitan Transportation Authority, said that after the hearing the judge's orders will be extended until June 9. Liman "wants to see no more coercive threat" from the Trump administration, said Lieber. He also wants a quick resolution of the lawsuit. USDOT's spokesperson declined to comment immediately. New York's first-in the-nation program was launched in January. It charged most passenger cars a $9 toll during peak hours to enter Manhattan south from 60th Street in an attempt to reduce congestion and raise money for mass transit. New York City, the state of New York and the MTA filed a request to stop the Trump administration's action to ban Manhattan's congestion pricing. Duffy told Hochul in April that USDOT could withhold funding or environmental approvals if the state didn't end congestion pricing on Wednesday. The state declined. New York cited a February social media post by President Donald Trump that praised his efforts to end congestion pricing. The phrase was: "LONG LIFE THE KING!" The White House shared a mock image of Trump wearing a crown on social media. New York questioned the legitimacy of Trump's comparison to a monarch. The MTA stated that the decision was taken "for blatantly partisan reasons" to keep a Trump election promise. New York City claims that the program has reduced congestion by a significant amount. Between January and March there were about 5,8 million cars fewer than expected. This is a drop of between 8% and 13%. The city also reported that data shows a 12% decrease in traffic, and travel times into Manhattan are also significantly improved. Hotel stays, retail sales, and pedestrian traffic all have increased. Hochul said that the funds raised through this program will be used to finance $15 billion of debt for capital improvements in mass transit. In November, the USDOT, under former Democratic president Joe Biden approved the congestion program. It is monitored by electronic license plate readers. The US approval is required because the program involves tolls for federal highways.
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Algeria announces new tender for corn up to 120,000 t, traders claim
On Tuesday, European traders reported that the Algerian state agency ONAB had issued a tender for a new international purchase of up to 120,000 tons of animal feed grain sourced from optional sources. They said that the deadline for submitting price offers to the tender is May 28. According to the report, it is believed that this new announcement indicates that Algeria did not make any significant purchases in its previous tender for 80,000 tonnes of corn which ended on May 21. Algeria issued corn tenders every week in May, but the participation was low. The traders claimed that delays in the unloading of ships in Algerian port had caused financial hardships for previous sellers. Traders said that the terms of the latest tender were changed to include Argentina or Brazil as optional origins, and only as a source in recent tenders. This was done after recent negotiations failed to result in significant purchases. Traders said that this change was also made in the last week's bid. One trader stated that there is a debate on the market as to whether these tenders are considered real demand or price checking. According to traders, the latest tender is for three consignments ranging from 30,000-40,000 tons of grain. The shipment dates are between June 15-30. (Reporting from Gus Trompiz, Paris; additional reporting by Michael Hogan, Hamburg; Editing by Tasimzahid)
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Eni and GIP in negotiations for the sale of 49.99% carbon capture unit
Eni announced on Tuesday that it has begun exclusive negotiations to sell a 49.99% share of its Carbon Capture, Utilisation and Storage (CCUS), business to BlackRock Infrastructure Fund GIP. Eni has a broader strategy that includes developing dedicated units, or satellites, and selling minority stakes to fund growth. Francesco Gattei, Eni's Chief Transition and Finance Officer, said recently that this allows Eni to grow its low-carbon businesses and still maintain its ability to invest in oil & gas activities. Eni CCUS Holding comprises the Hynet and Bacton project in Britain, L10 in the Netherlands and future rights to purchase Italy's Carbon Capture Project in Ravenna. Eni stated that the GIP agreement will allow it to not only purchase a stake in the CCUS project but also to support investment to further develop them. The Italian group claimed that the agreement was reached after a selection of several bidders. Sources said in March that GIP and HitecVision had submitted non-binding offers for the business. Also, Macquarie and Italy's Snam, as well as Thailand's PTT Exploration and Production Public Company, were also mentioned. The CCUS technology captures CO2 at the point of emissions and stores it underground. International Energy Agency (IEA) says that the technology could play a crucial role in meeting global climate goals. Critics say that it could prolong the use of fossils fuels, and they question its commercial viability. (Reporting and editing by Gavin Jones, Jan Harvey and Francesca Landini)
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Ukraine aims to import gas via Transbalkan Pipeline at lower transit fees
The Ukrainian energy ministry announced on Tuesday that the Ukraine's energy regulator had approved a mechanism for importing gas from Greece through the Transbalkan Pipeline. This will allow the gas to be delivered without paying high transit fees. Since a series devastating Russian missile attacks this year that significantly reduced the domestic gas production, Ukraine has been facing a severe gas shortage. Ukraine imports gas through Slovakia and Hungary but not via the southern route due to its higher transit fees, since gas from LNG Terminals in Greece passes also through Bulgaria, Romania, and Moldova. The Transbalkan route is a viable option to meet Ukraine's immediate transportation needs. However, it passes through five different countries and its direct tariff application makes it less attractive to commercial interests than other options. The ministry stated that gas transit operators from five countries "developed an optimized solution which will allow, in particular, the use of currently unused capacities of the Transbalkan pipe to import gas into Ukraine at a very competitive tariff." The ministry did not give any further details but stated that they hoped for positive decisions on the route from all countries participating. Analysts and former officials estimate that the imports will be around 6.3 billion cubic meters (bcm). Ukraine's Naftogaz, the state-owned firm, has begun buying U.S. LNG. It purchased 300 million cubic meters (mcms) from Poland's Orlen. Orlen's supplies are delivered through Poland. The Polish and Lithuanian routes are the cheapest. However, Ukraine will also need to use another pipeline as the Polish interconnector only allows imports of up to 7 mcm a day, while the demand is at least 25 mcm. Ukraine will import approximately 20 mcm gas from Slovakia and Poland on Tuesday. As our EU partners, Ukraine is actively searching for alternative routes to supply gas after abandoning Russian energy. German Galushchenko, Ukraine's Energy Minister, said that the Transbalkan route was important in this context. (Reporting and editing by David Goodman, David Evans and Yuliia Polityuk)
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Singapore Airlines turbulence investigations not complete yet, Ministry says
Singapore authorities announced on Tuesday that the weather radar system of a Singapore Airlines plane that was hit by turbulence last year, causing dozens of injuries and one death, is still being analyzed. The incident occurred after the flight SQ321 between London and Singapore experienced what the airline called sudden, extreme turbulence over Myanmar. Seatbelts were put in the spotlight after this first civil aviation death in 25 years. The airline industry also called for better turbulence prediction as experts warned that severe weather patterns caused by climate change may lead to more incidents. A preliminary update on the investigation released on Tuesday revealed that 79 other people were injured, along with the 211 passengers, 18 crew members, and the deceased, on the flight which diverted to Bangkok. The brief update from Singapore's Transport Safety Investigation Bureau (part of the Transport Ministry) was released one week after the anniversary of the incident on May 21, 2024. A final report will be released by the ministry once the investigation has been completed. The interim update stated that "Components from the aircraft's radar weather system have been sent to the U.S. for testing and examination." The global aviation guidelines require an initial report to be submitted within 30 days after an accident, and a final report ideally within one year. Investigators can issue interim reports on each anniversary if they fail to do so. According to a preliminary report from last year, rapid changes in gravity forces over 4.6 second resulting in 178 foot (54 m), caused passengers and crew members to become airborne, and then fall. This is what led the injuries. After the incident, passengers on the flight said that the crew and those who were not strapped in left their seats or the floor and slammed the ceiling of the cabin, which cracked in some places. Bangkok Hospital treated the passengers and reported spinal cord, skull and brain injuries. (Reporting and editing by Lisa Barrington, Joe Bavier).
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Saudi Aramco announces indicative prices for benchmark dollar bonds
Fixed income news service IFR announced on Tuesday that Saudi oil giant Aramco had launched the sale a three-part dollar-denominated debt, with tranches maturing in five, ten, and thirty years. IFR reported that the oil giant set an indicative price of 115 basis points for the 5-year tranche, and the 10-year and 30 year tranches have initial price guidance at 130 bps and 182 bps, respectively, over U.S. Treasuries. The price is expected to be set later on Tuesday, and the deal will be a benchmark size. This is usually at least $500m. Citi, Goldman Sachs International and JPMorgan lead the transaction. Abu Dhabi Commercial Bank and Bank of China are acting as passive bookrunners. (Reporting and editing by Kirby Donovan; Mohammad Edrees)
Companies withdraw their guidance in the wake of Trump's tariffs
The tariffs that President Donald Trump imposed on April 2, and the pauses in some cases, have created uncertainty among companies around the world. Some of these companies have withdrawn or stopped giving financial guidance.
This is a list that includes companies who have taken such steps:
AUTOS & TRANSPORTATION
AUTINS GROUP A UK-based company that sells car components delayed its release of market guidance for the month of April, citing uncertainty due to U.S. Tariffs.
CUMMINS The U.S. truck engine maker withdrawn its annual forecast on 5 May.
Ford The U.S. automaker suspended its annual guidance May 5 after claiming that the levies will cost the company approximately $1.5 billion before interest and tax in adjusted earnings.
GENERAL MOTORS On May 1, General Motors, the U.S. automaker, cut its profit forecast for 2025 two days after removing its annual guidance despite reporting strong quarter results and receiving some clarity on automotive tariffs from the White House.
It also suspended plans to purchase $2 billion worth of shares during the first half year until the economy is more clarified.
The German group Merced on April 30, lowered its earnings forecast for 2025 after it reported a sharply lower first quarter profit.
POLESTAR On April 30, the U.S.-listed Swedish electric vehicle maker put a pause on its 2025 forecast as it prepares for possible tariffs.
STELLANTIS The French-Italian-American group on April 30 suspended its guidance for a moderate recovery this year, after a profit drop in 2024, and said it would review capital spending plans.
VOLVO CARS On April 29, the group, which is one of the European automakers most vulnerable to U.S. Tariffs, announced a cost-cutting program of 18 billion Swedish crowns (about $1.9 billion), a restructuring of their U.S. operations, and it retracted its earnings forecasts for the next two year.
AEROSPACE AND DEFENSE
ALASKA GROUP ALASKA Air Group, Seattle's airline, withdrew on April 23, its financial forecast for the full year citing macroeconomic uncertainties.
AMERICAN AIRLINES On April 24, the U.S. carrier canceled its financial forecast for 2025.
JETBLUE AERIALWAYS On April 29, the U.S. airline group canceled its forecast for 2025, citing economic uncertainty as a reason.
DELTA AIR LINES On April 9, the U.S. airline retracted its financial forecasts for 2025. It said that travel demand has "largely stalled", as tariffs have fueled economic uncertainty.
FRONTIER GROUP On April 11, Frontier Airlines' parent company, Frontier Group, retracted its full-year outlook and warned that it would suffer a loss for the first quarter.
SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWAST AIRLINES SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEAT AIRLINES SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST SOUTHWEST ASIA The U.S. airline group canceled its financial forecasts on April 23
HEALTHCARE
BELLUSCURA On April 8, the U.S. medical device manufacturer retracted its 2025 guidance due to U.S. Tariffs on China.
UNITEDHEALTH GROUP The Company suspended its annual forecast because of surging medical costs, while CEO Andrew Witty resigned May 13.
Retail and Consumers
AMERICAN OUTFITTERS - The apparel company retracted its annual forecasts from May 13 because of economic uncertainty fuelled by tariffs.
BEYOND MEAT On May 7, the California-based company retracted its sales target for the year, citing a weak consumer demand as a result of macroeconomic volatility in America and high inflation.
CHARACTER GROUPS The British toymaker abandoned its annual forecasts on April 11 and said it expected tariff effects to be felt on China in the second half 2025.
CROCS On May 8, the U.S. shoemaker retracted its outlook for 2025 due to macroeconomic uncertainty.
DECKERS OUTDOOR
UGG Boots did not provide any warranty.
Annual targets
On May 22, due to macroeconomic uncertainty fueled by tariffs.
KRISPY KREME On May 8, the doughnut chain retracted its 2025 forecasts due to macroeconomic weakness and uncertainty surrounding McDonald's deployment schedule.
DIAGEO On February 4, the British spirits manufacturer retracted its forecast for medium-term growth in organic sales, citing a long-term decline in demand as well as uncertainty about tariffs.
LOGITECH, a Swiss-American manufacturer of computer parts, canceled its forecast for 2026 on April 10 citing uncertainty arising from Trump's policies. It kept its 2025 forecast.
MASCO CORP On April 23, the U.S. house improvement company retracted its annual profit forecast after it missed first-quarter profit and sales estimates. This was due to macroeconomic uncertainty caused by Trump's tariffs.
MATTEL On May 5, the Barbie doll producer retracted its annual financial target, adding that it would raise prices in the U.S. for certain products to offset higher input costs as a result of Trump's tariffs against key trading partners.
ROSS STORES
Discount store operator May 22,
Withdrawal
Tariffs could have a negative impact on the company's profitability in fiscal year 2025, according to its forecasts.
SKECHERS
On April 24, the footwear manufacturer retracted its annual results projection, citing Trump's unpredictable trade policies as fueling economic uncertainty.
SPECTRUM BRANDS The retailer company stated on May 9, it did not have enough visibility to continue to provide a earnings framework for 2020.
SPIN MASTER
The Canadian toy manufacturer retracted its 2025 outlook on the 29th of April until the climate stabilizes.
STEVEN MADDEN On May 7, the U.S. footwear maker retracted its guidance for 2025, citing the uncertainty caused by tariffs on imported goods into the U.S.
OTHERS
ALPHAWAVE IP GROUP On April 17, the British semiconductor company announced that it could not provide a financial outlook for 2025 and beyond due to global economic uncertainty caused by U.S. Tariffs.
ARM HOLDINGS The UK based chip manufacturer decided to not issue full-year guidance to the market on May 8 due to lower visibility caused by uncertainty in global trade and economic conditions.
AVERY DENNISON On April 23, the U.S. company, which manufactures packaging and labels products like radio frequency tags, retracted its annual forecast, adding that it would now be shifting to quarterly estimates due to macroeconomic uncertainty.
PAGEGROUP PAGEGROUP, a British recruiter, did not provide a financial outlook in its quarterly report on April 9, citing "increasingly uncertain" economic conditions.
(source: Reuters)