Latest News
-
Is the escalating spat between Trump and Musk a regulatory threat to Musk's businesses?
Elon Musk faces a real risk of being targeted by U.S. regulators in the transportation, environment, communications, and other sectors after his deep political ties to President Donald Trump broke down on Thursday. The list below includes the U.S. regulatory agencies that oversee Musk's businesses, such as Tesla, SpaceX (a rocket and satellite company), Neuralink (a brain implant company), X social media platform, and The Boring Company, whose construction company is The Boring Company. Federal Communications Commission In April, the Federal Communications Commission voted to review the decades-old regime of spectrum sharing between satellite systems that SpaceX sought. SpaceX is seeking new spectrum in the next few years from the FCC to accelerate the deployment of satellite internet service. The U.S. Telecom regulator's review aims to permit a greater and intensive use of spectrum in space activities. The 1990s power reductions have limited the use of spectrum, preventing better coverage by SpaceX's Starlink system and other systems. Food and Drug Administration The FDA is responsible for overseeing the clinical trials of Neuralink, Musk’s brain implant company. It decides whether these trials can be conducted and whether Neuralink will eventually sell their device to consumers. Neuralink is also pursuing clinical tests outside of the U.S., including Canada. The FDA has already approved these trials in the U.S. FDA initially denied Neuralink's request for clinical trials citing safety concerns, which were reported in 2023. Since then, the FDA has given Neuralink approval to conduct clinical trials. These are currently ongoing. Environmental Protection Agency SpaceX is subject to environmental regulations by the EPA. The EPA oversees SpaceX's wastewater discharges in Texas. Under the National Environmental Policy Act the company is also required to undergo environmental reviews. Several agencies, including the Fish and Wildlife Service, are required to evaluate the impact of SpaceX's launches and landings. National Highway Traffic Safety Administration Tesla is under constant scrutiny by U.S. auto investigators regarding the safety of their vehicles, especially when they use advanced driver assistance systems. The National Highway Traffic Safety Administration (NHTSA) asked Tesla last month to answer questions about its plans to launch an Austin robotaxi service, Texas in June. This was to determine how Tesla's electric vehicles with self-driving technologies would perform in bad weather. Since October, NHTSA has been investigating Tesla’s self-driving car collisions with reduced visibility on the road. The agency stated that it was seeking more information on Tesla's robotaxis to "assess the ability of Tesla’s system to respond appropriately to reduced road visibility conditions", as well as details about robotaxi deployment plans, and the technology used. Federal Aviation Administration In September, FAA proposed that SpaceX be fined $633,000 for failing to comply with license requirements before two 2023 launches. This investigation is still ongoing. After a series explosions, the FAA may also impose additional restrictions or scrutiny. Securities and Exchange Commission Musk has been involved in litigation with SEC regarding his takeover of Twitter 2022. Musk will now respond to these allegations next month. According to a letter Musk's attorney posted on the social media platform X in December, the regulator had also opened an investigation into Neuralink. Federal Trade Commission The FTC, which also enforces antitrust law, recently opened a probe into coordination between media watchdog groups. Musk has accused some of these groups of orchestrating an illegal group advertiser boycott against his social media site. The FTC enforces antitrust laws and recently launched a probe on coordination between media watchdog organizations, of which Musk accused some of orchestrating a group advertiser boycott of his social media site.
-
CANADA-CRUDE-Discount on Western Canada Select unchanged
On Thursday, the discount between West Texas Intermediate (WTI), a North American benchmark futures contract, and Western Canada Select (WCS), a West Canada Select futures contract, remained unchanged. WCS for Hardisty, Alberta delivery in July settled at $9.10 per barrel below the U.S. benchmark WTI according to brokerage CalRock. The price was flat from Wednesday's closing. As wildfires raged in Canada's oil producing province of Alberta, several oil sands companies evacuated workers to be on the safe side. As a result, about 344,000 barrels of production per day, or 7% of Canada’s average daily crude oil production, were disrupted. Canadian Natural Resources (CNR), Canada's biggest crude producer, has restarted its Jackfish 1 facility and said that it expects to be back at full production by Friday, with about 36,500 barrels per day. Analysts expect Cenovus' Christina Lake oil-sands facility to resume full operation soon. On May 29, the company halted production of about 238,000 barrels due to wildfires in northern Alberta. The global oil price rose on Thursday after recovering from the drop of the previous day, following news that U.S. President Donald Trump had spoken to Chinese leader Xi Jinping and agreed on more trade negotiations. (Reporting from Amanda Stephenson, Calgary; Editing done by ShounakDasgupta).
-
Reeves, UK's Reeves, says the economy is turning around but that public sentiments are restless
The British economy has recovered from the weaker end of the decade to 2024. However, the public is still unsatisfied with the slow improvement in living standards. This was the message delivered by Finance Minister Rachel Reeves on Thursday. She said that recent business surveys and the latest GDP (gross national product) numbers are all very positive. "That's good news, and it does show that we are starting to turn the corner." The purchasing managers' indexes, released this week, show a rebound in activity following a sharp drop in April as a result of the shock caused by President Donald Trump's new tariffs. Reeves, however, said that there was an overall feeling of unease during a recent gathering of finance ministers of the Group of Seven wealthy nations in Canada. "None our countries is growing at the same rate as we used to, or as we would like to. "We are all struggling because the living standards are not improving, and our citizens have become restless," said she. Reeves will announce her spending plans for the government on Wednesday. These plans will cover budgets of departments up to 2029 and most of Reeves' remaining term as Labour Party leader. She said that the review of spending would include increased public investment in energy infrastructure. Reeves reiterated her promise to not raise taxes in a future budget as much as she did at her first Budget last October, but refused to give more specific promises on business taxation after being asked by CBI Chair Rupert Soames. "I won't be able write budgets for four years here tonight." She said, "We're not going to do anything similar (2024 budget)." (1 dollar = 0.7357 pounds). (Reporting and editing by Sachin Ravikumar; David Milliken)
-
Reeves, UK's Reeves, says the economy is turning around and that energy investment will be a priority
Finance Minister Rachel Reeves stated on Thursday that more upbeat surveys of business as well as a strong first quarter gross domestic product indicate the British economy will recover from a weak finish to 2024. She said that the latest GDP figures, which showed a 0.7% increase in the first three months, the highest in the G7 and the recent business surveys are all very positive. She spoke at a dinner organized by the Confederation of British Industry. "That's good news, and it shows we're beginning to turn a corner." The purchasing managers' indexes, released this week, show a rebound in activity following a sharp drop in April as a result of the shock caused by President Donald Trump's new tariffs. Reeves will announce her spending plans for the government on Wednesday. These will cover budgets of departments up to 2029 and most of Reeves' remaining term as Labour Party leader. She said that the review of spending would include increased public investment in energy infrastructure. Reeves reiterated her promise to not raise taxes in a future budget as much as she did at her first budget last October, but refused to give more specifics about business taxation. (1 dollar = 0.7357 pounds). (Reporting and editing by Sachin Ravikumar; Reporting by David Miliken)
-
Washington DC airport suspends flights during Trump's Army Parade
Washington's Reagan National Airport said on Thursday that the Federal Aviation Administration would likely suspend flights during U.S. president Donald Trump's Army Anniversary Parade on June 14. The Federal Aviation Administration will suspend airline operations in DCA to accommodate aircraft flyovers, followed by fireworks displays, according to a notice posted on the airport's website. Washington Post reported that the airport, which is located less than 2 miles from National Mall, may be closed for up to 4 hours. The celebration of the U.S. Army 250th Anniversary will coincide with President Obama's 79th Birthday. In January, sixty-seven people died when an American Airlines regional plane and a helicopter collided. They crashed into the Potomac River. This was the worst U.S. aviation disaster in over 20 years.
-
Delta warns that tariffs may force the airline to stop purchasing foreign-made aircraft
Delta Air Lines has warned that tariffs imposed by the Trump administration on imported planes and parts may force it to stop purchasing foreign-made aircraft and cancel flights that serve 10 million passengers a year. The Atlanta-based carrier's comments were made in an unreported filing by the U.S. Commerce Department late Tuesday, in response to an investigation into national security that was recently launched and could result in additional tariffs. Delta said that if potential tariffs are not adjusted in time, they could threaten the U.S. aircraft manufacturing industry and hinder its ability to buy aircraft made domestically or overseas. The airline stated that it will take delivery of 47 Airbus aircraft in 2023-2024, which are manufactured in Canada and France. Delta stated that if tariffs forced Delta to cancel these deliveries, it would have prevented the airline from operating flights for 10 million passengers a year. It said that a "similar impact" could be expected in the future if new tariffs for national security are introduced. Delta Airlines said that it would be forced to cancel contracts already in place and re-evaluate contracts currently under negotiation. After President Donald Trump announced the new duties in April, nearly all planes and aircraft parts imported by the industry will be subject to 10% tariffs. A new national security duty would increase that. Delta announced in April that it would defer orders for aircraft that were subject to tariffs. It was not clear what tariff rate would cause it to cancel its orders. The airlines and manufacturers argue that the sector should not be subject to tariffs. The Commerce Department launched an investigation last month called Section 232 to examine the risks imported goods pose to U.S. security. This could be used to justify higher tariffs for imported parts, engines and planes. Howard Lutnick, Commerce Secretary, said on Wednesday that the department will complete its review before the end of the month and then discuss the results with Trump. Aerospace and airline industry has said that new tariffs for imported commercial aircraft, engines and parts may put the safety of air travel and supply chains at risk or have other unintended effects. Airlines and manufacturers are lobbying Trump for a return to the tariff-free regime of the Civil Aircraft Agreement from 1979, where the U.S. sector had a $75 billion trade surplus each year. In separate comments, the U.S. Chamber of Commerce urged Trump to refrain from imposing additional tariffs on aerospace products. They said that they would "weaken U.S. manufacturers." Last year, 135 millions U.S. airline travelers traveled on regional aircraft. The chamber stated that "while the United States does not have domestic assembly of regional planes, imported regional aircraft all feature significant amounts of U.S. Content," Tariffs on this production are not justified by national security or commercial interests. Business Roundtable, an association of U.S. CEOs who are major players in the aerospace industry, warned that tariffs would lead to retaliatory actions, "which could significantly disrupt the U.S. Aerospace Industry, which is heavily dependent on foreign clients, and ultimately undermine the competitiveness U.S. products." (Reporting and editing by Cynthia Osterdy; Cynthia Shepardson).
-
The container shipping rate surge fueled by tariffs is peaking
Financial analysts and maritime consultants say that container shipping rates continue to rise this week. This is fueled by a temporary tariff pause, which has been imposed between the U.S. More than 80% percent of all goods are transported by ocean vessels. Container vessels like those operated by MSC and Maersk transport toys, apparel and parts from Walmart to Ford Motor Co. factories. Drewry, a maritime consultancy, announced on Thursday that its World Container Index had risen 41% in a week to $3.527 for a 40-foot container. The index has risen 70% in the past four weeks due to the U.S. China trade truce of May 12, which reduced China tariffs from 145% to 30%, which had collapsed trade between two of the world's largest economies. Drewry reported that freight rates from Shanghai, the home of the busiest U.S. port, to Los Angeles have risen by 57% in the last week to $5,876 a FEU and 117% over the past eight days. This rate is 2% lower than a year earlier and far below the rates of $10,000 or more seen at the peak of the COVID crisis. In a note to clients, Jefferies shipping expert Omar Nokta stated that the Shanghai Containerized Index, which tracks spot prices from the busiest container ports in Shanghai, was on track to post another gain this coming week. Nokta stated that the spot rate for the SCFI route from the U.S. West Coast to Canada was closer to $6,000. He said that the rates for the second half are more likely to be at their peak, as they are in the range of $5,000 to $5500 per FEU. Drewry's Container Forecaster predicts that demand will weaken in the second half this year. This would lead to rates falling again. Drewry explained that the volatility and timing of the rate changes would depend on the legal challenges against Trump's tariffs, and the capacity changes resulting from the introduction of port charges on Chinese ships. (Reporting and editing by Nick Zieminski in Los Angeles)
-
Plus, the autonomous truck startup, to go public with SPAC in a $1.2 billion deal
The companies announced on Thursday that the self-driving vehicle startup Plus Automation would go public in the United States via a $1.2billion merger with Churchill Capital Corp IX. Plus will receive $300 million from the merger, which is backed by Wall Street veteran Michael Klein. This money will be used to launch its autonomous trucks commercially in 2027. In recent months, the commercialization of self-driving vehicles, which is widely viewed as the future in transportation, has accelerated as companies move from making bold promises to making cautious progress. In the U.S. truck operators, who are responsible for most of the freight movement in the country, increasingly look to automate their operations to reduce logistics and transportation costs, amid driver shortages, and increased demand for faster deliveries. The Trump administration is expected to ease regulations for self-driving vehicles, including removing certain vehicles from safety requirements. It will also relax rules on reporting safety incidents. California announced in April that it would allow the testing of self-driving trucks, large vehicles and other heavy-duty vehicles on public roads. Plus tried to go public in a blank-check deal worth $3.3 billion at the height SPAC fever, but it was subsequently canceled. SPACs are a quick way to list. "IPOs can be expensive and many companies don't wish to incur the costs of pulling the IPO at the last minute," said Yuriy Schterk, Clearwater Analytics' global head of alternative investments. Plus, which counts Hyundai among its customers, is currently testing public roads in Texas and Sweden. More customer fleet trials are scheduled for the fall of 2025. Uber-backed Aurora Innovation is also testing self-driving vehicles in Texas. The deal should close by the end of 2025. Reporting by Arasu Kanagi Basil in Bengaluru and Ateev Bhhandari; editing by Vijay Kishore, Mohammed Safi Shamsi
Airlines are under pressure due to the threat of missiles and closures of airspace.
Executives say that the proliferation of conflict zones is a growing burden for airline operations and profits. They are dealing with drones and missiles, as well as airspace closures and location spoofing.
The airlines are incurring costs and losing share of the market due to expensive reroutings and cancelled flights, which often happen at short notice. Aviation, which is proud of its safety record, invests more in data planning and security.
Guy Murray, the head of aviation security for TUI Airline, said that flight planning is difficult in such an environment.
Airlines have fewer options for routes due to the increasing number of airspace closures in Russia, Ukraine, the Middle East, India, Pakistan, and parts of Africa.
Mark Zee is the founder of OPSGROUP. This membership-based organization shares flight risk data.
Since October 2023, the Israeli-Palestinian Conflict in the Middle East has led to the commercial aviation being forced to share the skies with drones and missiles that were launched on short notice. Some of these weapons were reported to have been close enough for pilots and passengers to see.
Drone activity has forced Russian airports to close for short periods of time, including Moscow. GPS jamming and spoofing are also a growing problem around the world.
Last month, when hostilities erupted between India and Pakistan, both neighbours blocked the other's aircraft in their respective airspace.
Nick Careen said that the airspace is being used for retaliation, but this is not what it should be. Nick Careen was speaking to reporters on Tuesday at IATA's annual conference in New Delhi.
Isidre Poqueras is the chief operating officer of IndiGo in India. She said that recent divertions were undermining efforts to reduce emission and increase airline efficiency.
WORST CASE SCENARIO
A plane being accidentally or deliberately hit by weapons is the worst case scenario for civil aviation, putting finances aside.
Azerbaijan Airlines Flight 38 crashed in Kazakhstan on December 12, killing 38 people. According to Azerbaijani sources and the president of Azerbaijan, the plane was shot down accidentally by Russian air defences.
Five people were killed when a cargo aircraft was shot down by Sudanese gunmen in October.
According to Osprey Flight Solutions, aviation risk consultants, six commercial aircraft have been shot at, and three others have come close, since 2001.
Willie Walsh, IATA director general, said that governments need to share more information to ensure civil aviation security as conflict zones continue to proliferate.
Commercial aviation safety statistics show that accidents have steadily declined over the last two decades. However, these statistics do not include security incidents like being struck by weapons.
IATA stated in February that aviation safety was a major concern due to accidents and incidents involving conflict zones. This required urgent global coordination.
Tough Choices
As a result, each airline has a different policy on where it will fly. This is based on the information shared between states and carriers, government advisors and a patchwork system of government notifications.
Since the start of the war in Ukraine, in 2022, the Russian airspace has been closed to Western carriers. This puts them at a disadvantage in comparison to airlines like those from China and India that fly shorter routes in the north that require less fuel and crew.
Flightradar24 data show that Singapore Airlines flight SQ326 has taken three different routes to Europe since just over a month, due to a change in risk calculations.
In April 2024, Israel and Iran began a series of missile and drone attacks that had previously been avoided.
As tensions between India and Pakistan escalated, the flight's route was again changed last month to avoid Pakistani airspace. Flight SQ326 reaches Europe now via the Persian Gulf, Iraq and Afghanistan. Singapore Airlines didn't respond to our request for comment immediately.
The safety of pilots and flight attendants is also a concern for them.
IATA states that airlines, and not regulators, should determine if it is safe to fly above conflict zones. History shows that commercial pressures may cloud these decisions, said Paul Reuter. He is vice president of European Cockpit Association which represents pilots.
IATA Security Head Careen explained that flight crews have the right to refuse to take a trip if they are concerned about airspace. This could be due to weather conditions or conflicts zones.
He said that "most airlines, and I'd say the vast majority, don't want crews on aircraft who aren't comfortable flying."
(source: Reuters)