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Modi's five-nation trip to include UAE begins amid Middle East crisis
The Indian 'Prime Minister Narendra Modi' will embark on a 'five-nation tour' taking in the United Arab Emirates and Europe from May 15-20. Modi will visit the UAE in May and then travel to the Netherlands and Sweden, Norway, and Italy. Modi's trip comes after he urged a number of measures including a reduction in travel and a decrease in imports, due to a rise in energy prices. Indian shares dropped on Monday and the rupee suffered its biggest drop in over a month, ending at its lowest closing level ever recorded following Modi’s call for austerity. India is a net energy importer. Higher oil prices are a serious risk to the country. They could widen its current account deficit, slow down growth, and increase inflation. The statement stated that Modi and the?UAE president?Mohammed bin Zayed Al Nahyan would exchange views on bilateral topics, in particular, energy cooperation. The statement stated that the European leg will be to 'deepen India's?trade and?investment relations with these countries, in order to follow up on the India-EU deal signed earlier this year. Reporting by Kanjyik in Barcelona, Editing by Alistair Bell
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US Senators urge Trump to stand strong' in discussions with Xi on shipbuilding
Bipartisan senators from the United States urged President Donald Trump on 'Monday to stick to the trade remedies proposed by his Administration to rebuild U.S. Shipbuilding and to not 'offer concessions to Chinese President Xi -Jinping. In a letter to President Trump, Democratic Senators Tammy Baldwin from Wisconsin and Mark Kelly from Arizona as well Republicans Tim Scott and Todd Young sent on Monday said that China's efforts to "decimate American Shipbuilding" over the past decades demanded that U.S. Trade measures be used to their maximum extent. Trump and Xi met in South Korea, in October. They agreed to pause tit for tat fees for a full year on the ships of each other. This will save an estimated $3.2 Billion annually in fees, for large Chinese vessels sailing into U.S. port. The U.S. fee will resume on Nov. 10, unless another pause has been agreed. After a U.S. investigation concluded that China’s dominance of the maritime, logistics, and shipbuilding industries was fueled by unfair practices. Trump and Xi will meet in China on May 14-15, for a'summit that will be dominated 'by?the Iran War which has further strained U.S. - Chinese ties. China is still the largest buyer of Iranian crude oil, despite the pressures from the Trump administration. The senators said in a letter first reported by that "the United States is at a pivotal point and cannot cede any additional ground to China." "We urge you stand firm during these negotiations, as we work to enact and advance the SHIPS for America Act in order to level playing fields." The White House did not immediately comment. The legislation was introduced last year in the U.S. Senate as well as in the House of Representatives. It would provide tax credits to investors in domestic shipyards. China's share in the $150 billion shipbuilding industry has risen to more than 50% by 2023, from 5% in 2000. This is largely due to government subsidies. Meanwhile, once dominant U.S. Shipbuilders are seeing their share drop below 1%. South Korea and Japan are the second largest shipbuilders. Last spring, the threat of U.S. charges led to a drop of 25% in Chinese shipyards' orders. However,?orders recovered later in the year, after the fees were delayed, wrote the senators. The senators stated that the sudden drop in Chinese shipping orders "shows that the global maritime industry will pay attention when your Administration takes action on this issue," calling the port charges "an urgent and critical step necessary to grow the U.S. Industrial base, expand the U.S. economy, and protect national security." (Reporting and editing by David Gregorio; Andrea Shalal)
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Airline cancellations in response to Middle East conflict
Middle Eastern carriers increased capacity following the Iran War, and airlines outside the Gulf have rerouted flights between Europe & Asia away from major hubs within the region. The latest flight information is listed below alphabetically: AEGEAN AIRLINES On May 21, Greece's biggest carrier will resume its flights from Heraklion, Rhodes, and Larnaca to Tel Aviv. Thessaloniki-Tel Aviv flights are cancelled up until June 26. Flights to Beirut will resume on May 12, and flights to Riyadh, Amman and Amman are scheduled to resume May 21. Dubai flights are suspended until August 31 and Erbil, Baghdad and Baghdad flights will be cancelled until July 2. AIRBALTIC AirBaltic, a Latvian airline, has announced that flights to Tel Aviv are cancelled until the 28th of June. Dubai flights are cancelled until 24 October. AIR CANADA The Canadian carrier has canceled flights to Tel Aviv, Dubai and Abu Dhabi until September 7. AIR EUROPA Spanish Airlines has cancelled all flights to Tel Aviv till May 31. AIR FRANCE-KLM Air France has suspended flights to Riyadh, Riyadh and Beirut until May 27, and Tel Aviv and Dubai until May 19 KLM suspends flights to Riyadh Dammam, and Dubai until 28 June. CATHAY PACIFIC Hong Kong Airlines has suspended all flights to Dubai, Riyadh and cargo freighter service to Dubai, Riyadh and Dubai until May 31, and the Hong Kong airline will continue to operate its scheduled flights beyond June. The airline plans to continue all scheduled flights after June. The U.S. carrier plans to resume New York JFK to Tel Aviv flight service on September 6th. The launch of the Boston-Tel Aviv flight, originally planned for late October has been postponed until further notice. EL AL ISRAEL AIRLINES All flights to Dubai have been cancelled until 31 May. FINNAIR Finnair has cancelled all Doha flights until July 2 and continues to avoid airspace in Iraq, Iran Syria, and Israel. The airline will not resume Dubai flights until October. British Airways, owned by IAG, will reduce flights to the Middle East once services resume. Jeddah is no longer a destination and it will be permanently removed. From July, it plans to reduce the number of flights to Dubai, Doha, and Tel Aviv from two to one per day. Riyadh's two daily flights will be reduced to just one from mid-May. The changes will be in effect until the end of the summer season, which is October 24. One Dubai service will resume on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has canceled flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until May 31, and Doha-Tokyo until June 1. The Polish airline has suspended flights to Tel Aviv up until May 31. The airline also cancelled flights from March 31 through June 19 to Beirut and Riyadh. LOT will operate its winter route from Dubai to Riyadh in October. LUFTHANSA GROUP Edelweiss, Lufthansa and Swiss Airlines have suspended flights from Tel Aviv to Dubai and until July 11th. The suspension of flights to Amman (Beirut), Dammam (Riyadh), Erbil, Muscat, and Tehran is effective until October 24. Eurowings, a low-cost airline, has suspended its flights to Tel Aviv and Beirut until July 9 and Erbil and Dubai until October 24, respectively. ITA Airways has extended the suspension of flights from Tel Aviv, Riyadh, and Dubai to May 31. MALAYSIA AIRLINES From June 2, the Malaysian airline will resume limited service to Doha. NORWEGIAN AIR The low-cost carrier has delayed the launch of Tel Aviv and Beirut flights until June 15. PEGASUS Pegasus Airlines, Turkey, has cancelled all flights to Iran, Iraq, Amman, Beirut Kuwait, Bahrain Doha Dammam Riyadh Abu Dhabi, Sharjah, Dubai, Doha and Dammam until June 1. QANTAS Australia's national carrier has added flights to Rome, Paris and London to meet the increased demand for European destinations. The number of flights to Paris is increasing to five weekly return flights from three, and the Perth to Singapore service will go from daily to ten a week. A new schedule for flights will be implemented gradually from mid-April until late July. QATAR AIRWAYS The airline said it would resume passenger flights from Baghdad to Basra, Erbil and Erbil airports of Iraq on May 10. The airline said that it will expand its international flight network from June 16 to more than 150 destinations. ROYAL MAROC The Moroccan carrier announced that flights to Doha were cancelled until 30 June and those to Dubai till 31 May. SINGAPORE Airlines In response to increased demand, the carrier has extended its Singapore-Dubai suspension until August 2 and added services on?the Singapore London Gatwick route from late March to October 24. TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights from Dubai to June 7. WIZZ AIR Low-cost airlines suspend flights from Europe to Dubai, Abu Dhabi, and Amman until mid-September. All flights to Medina are suspended permanently. (Compiled by Josephine Mason and Jamie Freed. Elviira Louma, Tiago Branao, Agnieszka Oenska, Bernadette HOG, BoleslawLASOCKI, Romolo TOSIANI. Rod Nickel, Lisa Shumaker Jonathan Ananda Matt Scuffham Alexander Smith and Susan Fenton edited the book.
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Aramco CEO: Strait of Hormuz disruption may push recovery of oil markets into 2027.
Saudi Aramco CEO Amin Nasser?warned? on Monday that disruptions to oil exports through the Strait of Hormuz could 'delay the return of the market to normal?until?2027. The oil market will take longer to stabilize and rebalance the longer supply disruptions persist, even if they continue for a few weeks longer. Nasser said this to analysts during a conference call discussing the company's results for the first quarter, which were announced on Sunday. These results exceeded expectations. If the current situation persists until mid-June 2027, Nasser said. It has been said that the impact of the Iran War, including the closure of the Strait, is the largest?disruption of the energy market ever. Nasser stated that the market loses around 100 million barrels per week. He added that only two to five vessels cross the Strait each day, compared to 70 during normal times. He said that even if the Strait reopened today, it would still take months to rebalance the market. The disruption has slowed down tanker traffic, and energy prices have risen dramatically. This has stoked fears of inflation spiraling out of control?and a possible economic recession. RED SEA Aramco increased exports through the East-West Pipeline to the Red Sea Port of Yanbu in order to sustain 60-70%of the crude export volume. Nasser called the pipeline "a critical lifeline" on Sunday. Nasser stated that the company is looking for ways to increase Yanbu's export capacity of 5 million barrels per day, which currently handles mainly Arab Light or some Arab Extra Light grades. He said heavier grades were curtailed. He said Aramco exports almost 900,000.00 bpd via?separate Western Terminals for refined Products. This is done to maximise the exports and capture higher margins. Nasser stated that this could continue as long as the?Hormuz was blocked. Nasser has confirmed that the SAMREF refinery, a joint venture with TotalEnergies, is fully operational. The SATORP joint venture is also partially operational and there are plans to restore it fully. He said that the Ras Tanura refinery is now fully operational, although some units are currently undergoing a turnaround. Once this is completed, they should be back in operation. Nasser forecasted a'very robust return of demand growth when normal shipping and commerce resume. "I would not call it demand destruction. "I would call it demand-rationing,"? he said about the current market. Nasser stated that if needed, Aramco could reach its maximum sustainable capacity of 12 million barrels per day of crude oil in less than 3 weeks. Reports have stated that Saudi Arabia has cut its output by 2,000,000 bpd since Iran blocked Hormuz. This normally accounts for a fifth or more of the world's supply. Yousef SABA (Reporting; Editing by Bernadette B. Baum, Paul Simao, and Jason Neely).
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CBS News: Trump tells CBS News that the federal gas tax must be stopped.
CBS 'News reported that President Donald Trump stated on Monday he wanted to pause the.18 cent federal gasoline tax for a while, but dismissed any relief for airlines who face higher jet fuel costs. U.S. Gas prices remain high due to.the Iran War. Trump said on CBS that he would "take off the 'gas tax' for a time and then, when gas prices drop, we will phase it back in." CBS reported that a?bailout for airlines has not been "really presented". "The airlines are not doing badly," he said. The Trump administration is open to suspending a federal gas tax, said Energy Secretary Chris Wright on Sunday. U.S. states tax gasoline as well, with?Indiana and Kentucky reducing their taxes to provide consumers with a little relief at the pumps. Since the beginning of the war in Iran in?Feb., gas prices have risen. AAA reports that one gallon of gasoline in the U.S. averaged $4.52 on Monday. (Reporting and writing by Katharine Jack; editing by Ryan Patrick Jones).
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Freeport LNG in Texas increases gas consumption over the weekend following a train shutdown on Friday
Freeport LNG’s export plant in Texas reportedly?took more gas on Sunday?and Saturday and was on course to take in even more?gas Monday, after?one?of its?three liquefaction _trains _shut down on Friday. According to a report from the company and data provided by financial firm LSEG. Freeport LNG export plant is closely watched by the global market because its shutdown and restart have caused huge price swings. U.S. Gas prices typically drop when Freeport closes because the demand for fuel at the plant decreases. However, U.S. Gas prices tend to rise when liquefaction trains restart in Freeport as the demand for fuel increases. This is what happened both on Friday and Monday. Prices?fell on Friday after a liquefaction?train at the plant closed, but prices are up by about 5% so far today, based on signs that the train was back in service. Freeport officials had no comments to make. Freeport informed Texas environmental regulators late on Friday that the liquefaction train 3 had been shut down earlier in the morning due to a problem with a system of compressors. LSEG data revealed that gas?flows into Freeport dropped to 1.4 billion cubic ft per?day on?Friday May 8 before increasing to around 1.9 bcfd from May 9 to 10, and thus far on May 11. This compares to an average of 1.9 bcfd for the seven days prior from May 1-7. Three liquefaction trains at Freeport can?convert 2.4 billion cubic feet per day of gas into LNG. A billion cubic feet of natural gas can supply 5 million U.S. households for one day. Reporting by Scott DiSavino, Editing by ChizuNomiyama
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California county sues Meta over scam ads
Santa Clara County in California has filed a lawsuit against Meta Platforms alleging that it has "profited" from Facebook and Instagram advertisements promoting "scams", violating California's false advertisement?and unfair business practices laws. The lawsuit, filed on Monday at Santa Clara County Superior Court in California on behalf of California residents, accuses social media giant Facebook of allowing fraudulent advertising to be displayed on a worldwide basis. The lawsuit seeks civil damages, restitution and an order that Meta refrain from unfair business practices. The complaint, citing leaked internal documents that were first reported last year alleges that the company earns?as high as $7 billion per annum from scam ads deemed "high risk" but which clearly show signs of fraud. Meta, according to the county, tolerated much of the fraud and even set up "guardrails" that would block any scam reduction efforts should they be too expensive. Santa Clara also alleges that Meta contributed materially to an epidemic fraud by allowing third parties to sell accounts for placing ads that are?protected from enforcement and targeting scam advertisements at users who have clicked on similar bogus offers in the past. Citing testing, the county claimed Meta's "generative artificial intelligence" systems help unethical advertisers create ads for scams. Tony LoPresti, County Counsel for the county of San Diego, said: "The misconduct by Meta has reached a new level and must stop." As civil prosecutors, it is our duty to hold tech firms accountable. Meta did not respond immediately to a comment request. The company denies that it accepts ads for scams in order to maintain revenue. Last year, a spokesman for?Meta said that they aggressively combat fraud and scams. This is because the people who use our platforms do not want such content. Legitimate advertisers also don't like it. And we certainly don't either. Santa Clara's complaint highlights such assurances as an alleged component of Meta's alleged misconduct. The county claims that Meta misled the public by claiming that its anti-scam efforts were its highest priority, and that it rigorously reviewed ads for violations of its platform policies. Santa Clara's filing says that Meta, based on information and belief, can adjust the amount of scam ads allowed on its platform to help it achieve its revenue targets or smooth out its earnings. Santa Clara County Counsel has partnered with three law firms to assist it in a?suit filed against Meta - Bernstein, Litowitz, Berger and Grossmann, Renne Public Law Group and Bishop Partnoy. LoPresti stated that the county would retain control of the decisions made in the case and the firms would only be paid for winning the case.
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EU regulators plan a revamp of state aid rules for smaller airports
EU competition'regulators' proposed Monday revamping state aid rules for smaller Airports. Citing Europe's?"decarbonisation" goals and the "energy crisis",?this is part of a ten-year old overhaul to EU air transportation regulations. The European Commission has asked interested parties to submit feedback by June 11, before it decides if the Commission will proceed with its plans or make any further changes. In a?statement,?EU Antitrust Chief Teresa Ribera stated that "today's proposal ensures public funding is directed to where it is most needed while ensuring level playing fields in the single market." According to the plan, airports that have up to 3 millions passengers per year, as opposed to up to 5,000,000 previously, can receive investment aid linked to green conditions for creating new capacity. Airports with between 500,000 and 1 million travellers per year can receive operating assistance for a five-year transitional period. This will help them recover from recent challenges and return to profitability. Airports that receive less than 500,000 passengers per year do not require a?previous EU approval before receiving government?operating assistance. The regulators also plan to scrap startup aid for new routes, saying that airlines should instead bear the risk. The new rules are expected to come into effect in the first quarter 2027. Reporting by FooYun Chee. Mark Potter (Editing)
S&P 500 closes at a higher level, AI fervor ends Iran impasse
S&P 500 ended slightly higher on 'Monday. AI optimism was fueling the upward momentum, even though the earnings-driven fervor that fueled the recent rally waned a bit 'in the final stretch of the reporting season.
Semiconductors outperformed other sectors, as the artificial intelligence-related momentum remained unabated. Chipmakers also outperformed the wider market.
Ross Mayfield is an investment strategy analyst with Baird, based in Louisville, Kentucky. "There's such a rush to invest in these names and so much excitement that it almost seems divorced from any kind of headline or announcement."
The first-quarter reporting period is almost over. 440 companies from the S&P 500 have already reported. According to LSEG IBES, 83% of those companies have exceeded earnings expectations.
Analysts estimated that the S&P 500's earnings would grow 28.6% in the first quarter of this year, compared to 14.4% as of April 1. This is nearly twice the estimated 14.4% growth for the first quarter as of April 1.
The strength of the rally is largely a function, said Terry Sandven of U.S. Bank Wealth Management, Minneapolis, of the earnings growth.
Market watchers are looking forward to next week when big-box retailers release their quarterly reports to see if consumer spending habits have changed since the soaring gas prices.
As earnings season approaches its end, the focus shifts to macroeconomics.
Donald Trump's dismissal of Iran's response in response to an American peace proposal caused crude prices to rise, and raised concerns that a long-term conflict would continue to drive up inflation, especially at the gas pump where consumers feel the pinch.
Investors will be paying close attention this week to economic indicators, especially the Consumer Price Index from the Labor Department and the Retail Sales Report of the Commerce Department. They are looking for any signs that the current surge in energy costs is spreading into inflation or impacting consumer spending.
This week's economic calendar also includes information on industrial production and producer prices.
Trump will meet with his Chinese counterpart Xi Jinping later this week in Beijing to discuss a wide range of 'issues including the Iran War, trade, Taiwan, nuclear weapons and artificial intelligence.
The preliminary data shows that the S&P 500 rose 14.62 points (or 0.20%) to 7,413.55 while the Nasdaq Composite rose 25.88 points (or 0.10%) to 26,272.96. The Dow Jones Industrial Average increased 100.46 points or 0.20% to 49,709.62.
Cisco, a tech networking giant, and Applied Materials - a semiconductor equipment manufacturer - are among the companies that will report this week. Nvidia and Walmart will report at the end of the month.
Intel's stock rose on Monday, adding to Friday's 14% gain following reports of an agreement for the production of chips with Apple. Qualcomm, meanwhile, jumped up to a new record high.
Fox Corp. rose after exceeding revenue expectations for the third quarter.
Some airline stocks fell as the rising price of oil threatened to squeeze profit margins.
(source: Reuters)