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Reeves, UK's Reeves, approves $21 Billion of Public Transport Projects Outside London
The British Finance Minister Rachel Reeves pledged 15.6 billion pounds (about $21.1 billion) to transport projects outside London, which have suffered for years from underinvestment. Reeves made the announcement in Rochdale (northwest England) of her first investment commitments based on her Spending Review from June 11, which will set government budgets until 2029. The Labour government of Prime Minister Keir starmer, which has suffered heavy losses in local elections, is being pressed to demonstrate that it is improving public services and infrastructure. Organisations like the OECD have identified outdated and insufficient transport links as a major factor in the productivity shortfall of British cities located outside the capital. Reeves stated that "a Britain that is better-off cannot depend on a few places forging ahead the rest of the nation." She said that the focus on prioritising investment in public infrastructure in areas where it would be most profitable had resulted in growth being supported too few places, and created large gaps between regional economies. The previous Conservative government allocated the majority of the 15,6 billion pounds to local projects after cancelling a part of a north-south high-speed rail line. Many city regions are still waiting on the central government to give them the go ahead. Tough Choices The budget announcement made on Wednesday represents an agreement to fund transportation projects between 2027/28 - 2031/32. These include investments in public transport for local areas in the West Midlands and Greater Manchester as well as in northeast England, South Yorkshire and Northeast England. West Yorkshire is also getting its first mass transit system, a region with 2.3 million residents. Since 1998, Britain has conducted periodic reviews of government spending, but this one is the first to cover several years since 2015. The only other review in 2021, which focused on the COVID epidemic, covered a single year. The Institute for Fiscal Studies, a non-partisan organization, said that this review may be "one the most important domestic policy events" for Labour, as it will force the government to make tough decisions between spending on healthcare, defense and other areas. Reeves, amid reports of tensions in the government said that she had rejected promising proposals by her ministerial peers due to budget restrictions. "There were good things that I had to say no to. Reeves explained that it was important to control the public finances. She added that police spending would rise, but did not provide any details. ($1 = 0.7398 pound) (Additional reporting and editing by Mark Potter, Aiden Lewis and Mark Potter in London)
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Airbus shares increase as it gets closer to a major Chinese jet order
The shares of Europe's Airbus PA> grew on Wednesday, as signs of progress in the sale of hundreds of planes by China increased ahead of a July summit between European and Chinese leaders. For years, talks about a possible mega-deal between China and the United States have been ongoing. More than a Yea Beijing is examining options to fuel the growth of domestic carriers amid trade tensions between the United States and Boeing, the rival airline. Bloomberg News reported, citing sources familiar with the situation, that a deal could be signed for 300 narrowbody or widebody Airbus planes as early as next month, when European and Chinese officials hold a summit at Beijing. Reports said that the order could reach 500 aircraft. Airbus shares rose by more than 3%. Airbus has declined to comment. In April, it was reported that China has been in intermittent negotiations with the United States for the past year in order to place an up-to-500 Airbus jet order. These talks coincided with the transition of the administration in the United States as well as the intensifying trade tensions between the United States and China. Sources in the industry said that these talks were a continuation of discussions about an order for hundreds jets, which surrounded a May visit by Chinese President Xi Jinping to France. Reports from April of last year indicated that Airbus had been in discussions with Boeing about an order for hundreds jets before the visit. Bloomberg reported in April that Airbus was considering selling 100 A330neos. Demand is STRONG Sources in the industry said earlier this year that the size of a proposed deal had been reduced due to a U.S. - China tariff war, which has effectively kept Boeing out of China. Expanded to 500 aircraft China has often announced large jet orders to coincide with official visits. The prospect of an announcement major is used as a carrot for diplomatic negotiations. Sources in the industry said that negotiations often go to the last minute and aren't guaranteed to end with a deal. Chinese airlines have historically taken great care when making major purchases during times of geopolitical unrest. A person who is familiar with the deal-making process stated that the timing was still unclear, and it could be pushed to later in the year. Chinese airlines are in urgent need of aircraft, after the state purchasing agency resisted placing large orders following an earlier round trade tensions during the first Trump presidency. Airbus expects China traffic to increase by 5% per year over the next 20 years. Air India's flag carrier, Air India, is experiencing a surge in demand for new aircraft. Discussions for IndiGo has expanded its Airbus order this week. Reporting by Angela Christy in Bengaluru and Ananya Palyekar in Paris, with editing by Christopher Cushing and Sonia Cheema.
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Airlines suspend flights to Israel again
Global Airlines has again suspended flights to and out of Tel Aviv following a missile fired from Yemen by the Houthi rebels on Israel's main airport in May. Israel is continuing to strike the Gaza Strip. After a ceasefire agreement with the militant Palestinian group Hamas in January, they had started to resume their flights. Israel resumed its military operations in the enclave beginning in March, and intensified them in May. The following airlines have canceled flights since the beginning of May: AIRBALTIC AirBaltic, a Latvian airline, announced that it will resume regular flights between Riga (the capital of Latvia) and Tel Aviv (the capital of Israel) on June 6. AIR CANADA The Canadian airline delayed the resumed service between Canada and Israel from the original scheduled date of June 8 to September 8. AIR FRANCE-KLM KLM, the Dutch subsidiary of the group, resumed its flights to and out of Tel Aviv as from May 31. AIR INDIA The Indian flag carrier has suspended flights to and from Tel Aviv till June 19. British Airways, owned by IAG, has suspended flights from Tel Aviv to June 14. Iberia Express is IAG's low cost airline. It has cancelled all flights to Tel Aviv up until June 30. ITA AIRWAYS Italian Airlines has suspended all flights to and out of Tel Aviv through June 22. The Polish airline suspended all flights to Tel Aviv except the evening flight of June 8th. LUFTHANSA GROUP The German airline group suspended flights from and to Tel Aviv until June 22. RYANAIR The biggest budget airline in Europe has cancelled all flights to and out of Tel Aviv up until July 31. UNITED AIRLINES The Chicago-based carrier said that its flights from and to Tel Aviv could be affected between May 4 and 6. Reporting by Tiago brandao from Gdansk, editing by Elaine Hardcastle and Sharon Singleton; Milla Nissi Prussak.
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Cologne evacuated in large numbers after discovering wartime bombs
The city of Cologne, west Germany, evacuated thousands of people from the central area of the city on Wednesday after three bombs dating back to World War II were discovered. This was the largest evacuation since the end World War Two. A 1,000-metre radius evacuation zone was established at 8 am (0600 GMT) and affected around 20,500 people, including many hotel guests and workers in the old town of Deutz. On Monday, three American bombs with impact fuses were discovered during construction in Deutz, an area bustling on the Rhine's bank. Experts in bomb disposal plan to dearm the ordnance on Wednesday. In Germany, many cities that suffered heavy damage in the war are still plagued by unexploded bombs. In addition to nine schools and hotels, the evacuation zone includes a hospital, two retirement communities, and two retirement homes. Everyone involved hopes the defusing will be finished by Wednesday. The city authority stated that this is only possible if everyone affected leaves their homes and workplaces early on Wednesday morning. Transport disruptions were severe in the city, which has a population of more than a million. The German national rail operator warned that many trains will be diverted or canceled. Before the bomb disposal operation starts, a stretch of the Rhine is blocked off. The Rhine is one of Europe’s most important waterways, allowing commodities like grain and coal to be transported from the Swiss Alps through Cologne. The morning news program of the private television station RTL was interrupted by its main office, which is located within the evacuation zone. The news anchor grabbed his bag and said "We must leave", as the lights went out. (Reporting and Editing by Ludwig Burger, Ed Osmond, and Rachel More)
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Ukraine corn exports are expected to drop sharply in June according to a union of producers
The Ukrainian producers' union UAC announced on Wednesday that Ukrainian corn exports will fall from 2 million metric tonnes in May to just 1 million metric in June, because Ukraine-origin is less competitive than its American equivalent. Ukraine has a long history of corn exportation and is expected to export around 22 million tonnes in 2024/25. In a press release, UAC stated that "in the current conditions we cannot compete with American providers on the European Market". It added that U.S. corn was sold at $230 per ton, compared to $256-$260 for Ukrainian corn. The bulk of Ukrainian corn sold to Greece and Cyprus is in small quantities, usually 2,000 or 5, 000 tons. The union stated that the U.S. only exports large quantities of 25,000 ton or more. UAC stated that Ukraine had limited corn exports available in the remaining months of the season, and they did not exceed 1,5 million tons. Official data shows that Ukraine exported 20.6 millions tons of corn in June. The union predicted that corn prices will gradually fall to $215 in the second half June. Demand could drop and the market may focus on the new crop. Ukraine produced 27 million tons corn in 2024, but this crop could decrease to 26 millions tons in 2025 due to poor weather conditions. Vitaliy Kval, the Ukrainian farm minister, said on Tuesday that the grain harvest could decrease by 10 percent to 51 million tons. (Reporting and editing by Louise Heavens, with Pavel Polityuk)
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Sources say that the high-sulfur marine fuel price in Singapore is depressed due to an oversupply.
Trade sources reported on Wednesday that the prices of high-sulfur marine fuel in Singapore were depressed due to a glut of supplies and a lukewarm market. Marine fuel traders and sellers have seen their margins eroded at the largest refuelling port for ships in the world. This is because marine fuel must be sold above fuel oil cargo price to make a profit, as it covers logistical costs. Trade sources said that Singapore bunker prices of HSFO 380cst have been low, and they've held in discounts on cargo quotes despite the bearish fundamentals. A Singapore-based fuel trader stated that the (HSFO market) is oversupplied by oil of various origins, including Mexico and Iraq. Several trade sources report that some trades for HSFO cargoes have been done at higher prices than the price of cargoes offered ex-wharf bunkering. Fuel oil spot differentials were above $6 per metric ton compared with cargo prices this week. Sources said that ex-wharf marine diesel was sold at a small discount of a single digit to the quoted price. Bunker fuel that is sold ex-wharf means that the seller must transport the fuel to a wharf. A wharf is a dock or terminal where cargo can be loaded and unloaded. Prices of high-sulfur bunker fuel 380-cst on a delivery basis, including the cost of barging, were stuck in very thin premiums over fuel oil cargo prices. A bunker supplier that offers HSFO said, "There's an abundance of supplies but the demand is normal and slow." According to port authority data, the average monthly sales of high-sulfur marine fuel in Singapore have been around 1.6 million tons since 2025.
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Central Cologne evacuated following discovery of bombs
The city of Cologne, west Germany, evacuated thousands of people from the central area of the city on Wednesday after three bombs dating back to World War II were discovered. This was the largest evacuation since the end World War II. A statement by the authority stated that an evacuation zone of 1,000 meters radius will be cleared at 8am (0600 GMT), affecting around 20,500 residents, as well as workers and hotel guests. This area is located in the historic old town as well as the popular Deutz district. On Monday, three American bombs dating from World War II were found in Deutz. This bustling area is located on the Rhine. The statement stated that a team of bomb disposal specialists plans to disarm ordnances later on Wednesday. In Germany, where many major cities were bombed into ruins during World War II, unexploded bombs are frequently found. Such operations usually go well. In addition to 58 hotels, there are also two retirement homes, nine schools and one hospital in the evacuation zone. Everyone involved hopes the defusing will be finished by Wednesday. The only way to achieve this is if everyone affected leaves their homes and workplaces as early as possible on the day of the incident, and stays outside the evacuation zone from the start. The German national rail operator warned that there would be many trains diverted or cancelled.
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WHSmith UK reportss Q3 sales growth on the back of strong travel demand
WH Smith, a British retailer, reported a 5% increase in its total revenue like-for-like for the third-quarter, while North America grew 2%. Travel demand boosted sales across all of WH Smith's product lines despite macroeconomic uncertainty. Why it's important Sales are up amid worries about North America travel, at a moment when U.S. Tariffs have caused global turmoil and dampened growth prospects for businesses. WH Smith, however, said that it still expects a steady demand for travel, and is banking on a good summer to boost footfall in transit zones. It also maintained its annual forecast, saying it was well positioned during the summer peak period. SSP Group, a company that operates airport food outlets, recently reported heightened insecurity, especially within its North America operations. KEY QUOTE Analysts at J.P.Morgan said that, "Although macro-uncertainty still exists regarding the US, we believe the Q3 North America LFL results should ease investor concerns in the near term and reassure investors that the U.S. economy is not experiencing a drastic slowdown." CONTEXT WH Smith is a brand that has been around for more than 230 years. It operates 1,200 stores at airports and railway stations in 32 countries. In the first half of this year, the company sold its UK high-street business to Hobbycraft's owner Modela Capital to become a pure-play online travel retailer. By the Numbers The company reported an increase of 7% in its total revenue, calculated on a constant-currency basis for the 13 week period ending May 31, The company also opened 10 new shops in North America. MARKET REACTION On Wednesday, shares were up 2.9% to 1,054 pence. The stock is down around 14% this year. (Reporting and editing by Sumana Naandy in Bengaluru, Anandita Mehrotra from Bengaluru)
Vietnam Airlines executive: order for 50 Boeing 737 MAX aircraft to be finalised'very quickly'
A company executive said on Monday that the flag carrier Vietnam Airlines would "very soon" complete a provisional purchase order for 50 Boeing 737 MAX aircraft it purchased in 2023.
The executive declined to be identified as he was not authorized to speak to media.
Washington is pressuring Vietnam, a country that relies on exports to avoid tariffs.
The deal has yet to be finalised, although the carrier has signed an initial agreement in 2023 with U.S. planemaker Boeing for 50 single-aisle Boeing 737 MAX aircraft.
Boeing did not respond immediately to a comment request.
Vietnam Airlines signed an agreement in April with Vietcombank, the top lender of the country, for the purchase of 50 narrow-body aircraft, but did not name the manufacturer.
The executive stated that Vietnam Airlines was open to purchasing Airbus aircraft, if they could secure delivery slots from the planemaker. Airbus has previously claimed its single-aisle Jets were sold out for the remainder of the decade. (Reporting and writing by Abhijith Ganahapavaram, Editing by Jamie Freed).
(source: Reuters)