Latest News
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The wage drama at Samsung Electronics is not over.
Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. Samsung Electronics is still fighting over the issue of pay. The planned strike that was due to begin today has been averted at the 11th hour by a deal reached between the company and its union last night. However, a group of disgruntled investors have threatened to ruin the entire thing. The details of the deal, which includes bonuses of about $416,000 for certain staff, paid mostly in stock, have attracted attention. Investors have largely ignored the drama and are bidding up Samsung shares by over 7%. They also lifted South Korean shares by more 7.5%. SK Hynix is the rival memory-chipmaker whose bonus package triggered the Samsung pay dispute. Its shares are up over 11%. The markets are in a positive mood following the crossing of the Strait of Hormuz by three supertankers with?6million barrels of crude oil. Meanwhile, signs have emerged that Iran has been consolidating control of the waterway. MSCI's broadest Asia-Pacific index outside Japan rose 3% following Nvidia’s better-than-expected forecast of revenue on Wednesday. The world's?most valuable company fell 1.3% after-hours as traders wanted more. This weighed on S&P 500?e-mini Futures, which had been last?flat. Japan's Nikkei 225 also jumped 3.6%, after S&P Global’s flash manufacturing PMI indicated expansion in May. However, at a slower rate than a week earlier. Exports increased by 14.8% annually in April, putting to rest fears of stagflation and confirming expectations that the Bank of Japan would raise rates next month. Markets are focusing on new geopolitical concerns as AI-related trading looks healthy, and SpaceX's IPO is a blockbuster. One example is that U.S. president Donald Trump has said he will speak with his Taiwanese equivalent Lai Ching Te, a decision which?is certain to infuriate China as it regards the island to be its own. On Thursday, the self-governing island’s?foreign?ministry stated that Lai would be pleased to speak to the U.S. This would mark the first direct talk since Washington transferred diplomatic recognition from Taipei to Beijing in 1979. China's Foreign Ministry has not yet responded. Early European trades showed that FTSE and German DAX were both flat. The following are key developments that may influence the markets on Thursday. Announcements about the company Easyjet, QinetiQ and Walmart Economic Events France: HCOB Manufacturing and?Services Flash PMI for May Germany: HCOB Manufacturing and Services Flash PMI for May UK Flash Manufacturing and Services PMI for May CBI Trends Orders in May Debt auctions: France: 3 year, 4 year, 6 years, 8 years, 10 years and 21-year debt Germany: 10-year government debt UK: 10-year government debt
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TASS reports that Russia and China will unveil a cable car across the Amur River.
The TASS news agency reported that Russia and China will unveil a cable car spanning a distance of nearly 1 km (0.62 miles), which will connect the cities of Blagoveshensk to Heihe, by the end this year. China is the largest buyer of energy from Russia and both countries have agreed to travel visa-free. Since the invasion of Ukraine in 2022, oil and gas exports from Russia to Europe have decreased. Since then, the European Union has tightened its visa policies for Russians. As a result, many Russian tourists have shifted their travel to Asia. China and Russia agreed to extend the visa-free program after President Vladimir Putin visited Beijing this week. A Russian construction firm told TASS that an iceberg-shaped terminal was 93% complete. Two gondolas, each capable of carrying up to 110 passengers, would travel?up to 70m above Amur River during a 'two and a half minute journey. The terminal will include shops, restaurants, cafés, duty-free zones, and border control checkpoints. According to TASS, the new route will allow passengers to travel between 'the two cities' in a matter of?six minutes. A bridge between Blagoveshensk, Russia and Heihe was inaugurated in June 2022.
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FAA: SpaceX wants to launch 10,000 launches per year within five years
SpaceX wants to launch 10,000 rockets annually in the next five years. However, government officials must first see that reliability has improved before they approve such an expansion. FAA Administrator Bryan Bedford stated that he had met with SpaceX president Gwynne shotwell who informed him of the ambitious goals set by the company. SpaceX will launch 170 satellites in 2025. Bedford claimed that Shotwell had told him about "the SpaceX five-year plan to reach 10,000 launches per year." Elon Musk, CEO of SpaceX, said in a Forbes interview that aired last week that the company has already launched 10,000 satellites into orbit. He also stated his desire to eventually launch 10,000 communication satellites per year. However, he didn't specify a specific timeframe. Bedford stated after a conference that the FAA needed to see greater reliability in order to approve such a goal. After the forum, Bedford told journalists that "we need to see more reliability". FAA licenses all commercial space launchers and streamlines key obstacles. The FAA imposes'restrictions' to ensure that launches or accidents in space do not disrupt passenger air traffic. Bedford stated that the purpose of meeting with SpaceX was "to go over the constraints that are seen and what we can do planning-wise now to be in a better position to accommodate this type of stretch goal." SpaceX didn't immediately respond to an inquiry for comment. Bedford told reporters that he and Shotwell had "a very honest conversation. We're going have to push ourselves; they're also going to need to push their reliability." He said that Donald Trump wanted to reach the moon by 2028. Bedford said that to achieve this, "we will have to work with industry to unlock the innovation." Bedford said that the FAA is not the current limiting factor in space launches. He said, "I can imagine a future in which we will be the limiting force because we do not put enough funding into our space team." Bedford said that the FAA is reviewing data from previous launches to better understand risk. Bedford said that the FAA must ban?flights from certain areas during launch to address safety concerns. SpaceX announced in January that it plans to launch 1 million satellites orbiting Earth to harness solar power to power AI data centres. (Reporting and editing by David Shepardson)
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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 following is a list of the latest flights in alphabetical order. AEGEAN AIRLINES On May 21, Greece's largest airline will resume flights from Heraklion to Tel Aviv. Thessaloniki-Tel Aviv flights are cancelled up until June 26. Flights to Riyadh, Amman and Erbil will resume on May 21. The airline has cancelled flights to Dubai until June 29 and Erbil and Baghdad until July 2. AEROFLOT The Russian flag carrier announced that it will resume flights to the United Arab Emirates on June 1. 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 from June 9 until now. AIR FRANCE-KLM Air France has suspended flights to Riyadh, Riyadh and Beirut until May 19, and Tel Aviv until June 3. 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 services until May 31, and will resume them on June 30. The airline plans to continue all scheduled flights after June. The U.S. carrier plans to resume flights from New York JFK Airport to Tel Aviv on September 6, and has extended the suspension of service for Atlanta-Tel Aviv until November 30, 2018. The launch of the Boston-Tel Aviv route was delayed until further notice. In May, the company announced that it would extend its suspension of service from Atlanta to Tel Aviv. EL AL ISRAEL AIRLINES All flights to Dubai have been?cancelled up until May 31. FINNAIR It has cancelled all flights to Doha until July 2 and continues to avoid the airspaces of 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. They will?permanently drop Jeddah from their list of destinations, while increasing capacity in India and Africa. From July 1, it plans to reduce the number of flights to Dubai, Doha, and Tel Aviv from two daily flights to just one. From mid-May, the airline will reduce Riyadh's two daily flights down to just one. Changes will be made until the end of the summer season on October 24. One Dubai service will resume on October 16. Iberia Express, the Spanish low-cost carrier of IAG, has cancelled all flights to Tel Aviv until May 31. JAPAN AIRLINES Japan Airlines has suspended its scheduled Tokyo-Doha and Doha-Tokyo flight until June 30, and Doha-Tokyo until July 1. The Polish airline suspended its flights to Tel Aviv from June 12 until now. The Polish airline has also cancelled flights from March 31 until June 27 to Beirut and Riyadh. LOT will operate its winter route from Dubai to Riyadh in October. LUFTHANSA GROUP Austrian Airlines plans to restart flights to Tel Aviv on June 1. SWISS, ITA Airways, and Lufthansa plan to resume flights in July. Brussels Airlines suspended its operations until October 24, ITA Airways, SWISS, and Lufthansa will continue to suspend flights from Dubai until September 13 Until October 24, SWISS, Austrian Airlines, Brussels Airlines, Lufthansa and SWISS have suspended their flights to Abu Dhabi and other destinations, including Amman, Beirut and Dammam as well as Riyadh. Erbil, Muscat, Tehran and Riyadh are also affected. Eurowings, a low-cost carrier, has suspended flights from Tel Aviv to Beirut and Erbil to June 22, as well as Dubai to Abu Dhabi until October 24. ITA Airways has also extended its suspension of flights to Riyadh through June 30. MALAYSIA Airlines will resume limited service to Doha on July 2nd. NORWEGIAN AIR The low-cost carrier has delayed the launch of its Tel Aviv, Beirut and Beirut services until June 15. PEGASUS Pegasus Airlines, Turkey's national airline, has cancelled all flights to Iran, Iraq Kuwait, Bahrain, Dammam Riyadh Abu Dhabi Sharjah until June 1. QANTAS Australia's flag-carrier is increasing flights to Rome, Paris and other European destinations to meet the increased demand. The number of flights to Paris will rise from three to five weekly return flights, and the Perth to Singapore service will go from daily to ten a week. A new schedule will be implemented gradually for flights starting in mid-April. It will run through late July. QATAR AIRWAYS From June 16, it will also expand its international flight network, with more than 150 destinations. ROYAL MAROC Moroccan airline said that flights to Doha and Dubai were cancelled until the 30th of June. SINGAPORE Airlines In response to increased demand, the carrier has extended the suspension of Singapore-Dubai flights until August 2 and added services on Singapore-London Gatwick (late March) and Singapore-Melbourne (late March-October 24). TURKISH AIRLINES SunExpress, Turkish Airlines joint venture with Lufthansa has cancelled flights until June 30, including to Dubai, Bahrain and Erbil. WIZZ AIR Low-cost airlines will resume their flights to Tel Aviv from May 28, but flights from Europe to Dubai, Abu Dhabi and Amman remain suspended until the middle of September. All flights to Medina have been suspended permanently. (Compiled by Josephine Mason and Jamie Freed. Elviira Loma, Tiago Branao, Agnieszka Olenka, Bernadette HOG, Boleslaw LaSocki, Romolo Tosiani. Matt Scuffham and Alexander Smith edited by Milla Nissi, Susan Fenton, Jonathan Ananda, Milla Nissi-Prussak, and Jonathan Ananda.
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This summer, US motorists may be hit with more gasoline price shocks
The ongoing war with Iran is causing supply disruptions that are driving up gasoline prices. This will add to the financial strain for drivers as they hit the road to travel for Memorial Day weekend. Retail gasoline prices in the United States have increased by more than $1.50 a gallon or 45% since the United States and Israel attacked Iran late in February. The price of crude oil, which is used to make gasoline, has also risen, along with the prices of many other goods. This is because the conflict led to an effective closure of Strait of Hormuz - a major trade route through which approximately 20% of world oil consumption passes. As households struggle with rising energy costs, President Donald Trump faces increasing political pressure. Many?states have already suspended gas taxes in order to reduce the cost of fuel. Discussions about lowering the federal 18.4 cent gasoline tax are also underway. Memorial Day Weekend, a three day?weekend, is when many Americans will start their summer travels. According to AAA data, even with the higher prices of gas, 39.1 millions people will travel by car and 3.66 by plane. Patrick De Haan is GasBuddy's head of petroleum analyses. He said that this is the most volatile gas price summer in recent years. The Strait of Hormuz closing is at the heart of it. Americans will pay billions of dollars more to travel to their destinations, even after the Strait is reopened. He said that it could take a year or longer for prices to recover. TRAVEL RESCUES HIGHER FEES AND SHORTER TIMES Even so, Americans are still planning to drive less this summer due to the high cost of fuel. GasBuddy's latest survey shows that only 56% of Americans plan to drive for more than 2 hours this summer compared to 69% the year before. The survey shows that cost is the most important factor in travel decisions. 67% of respondents said gas prices directly affect their driving plans, and 36% say rising costs cause them to take less road trips. Analysts warned that a shortage of gasoline could be imminent as summer travel season approaches. Bob Yawger is the director of energy futures for Mizuho. He said, "Gasoline Storage has been falling for 14 weeks in a line, every week since the war in Iran. We are now going to stagger through Memorial Day Weekend, the beginning of summer driving season. This will be within striking distance of the 11-year record low." He said, "We're in big trouble when it comes to gasoline." The Energy Information Administration reported on Wednesday that U.S. gasoline stocks fell by 1.5m barrels to 214.2m barrels in the past week, as opposed to analysts' expectations of a 2.1m barrel draw. Fuel costs will continue to rise due to the uncertainty in the Middle East and the recent refinery problems, as well as the upcoming Atlantic hurricane season, tight global inventories, and the recent refinery failures. GasBuddy's?forecast showed that the national average gasoline price is expected to be $1.48 higher on Memorial Day this year compared to the previous year. If traffic in the Strait of Hormuz remains restricted throughout the summer, the prices could reach $5 per gallon. John Kilduff of Again Capital said, "We must be concerned about the fact that we are drawing down inventories globally at an incredible pace. Global demand is also finding its way to us, not only for crude oil, but also for refined products."
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US invests another $200 Million for rebuilding New York Penn Station
The U.S. Department of Transportation announced on Wednesday that it would provide an additional $200 million to start construction on the $8 billion plan for rebuilding 'New York Penn Station', a major artery in the city. Amtrak, the U.S. passenger rail company and President Donald Trump’s administration have said that this plan will include expanding track capacity and building a grand entry on Eighth Avenue leading to a new station. It will also replace aging walkways and open modern concourses. Penn Station, the busiest transit hub in the U.S. with 10 million Amtrak riders and 100 million passengers when regional train systems are added, is home to the largest number of Amtrak passengers. Sean Duffy, the U.S. Transportation secretary, announced last month that USDOT will spend $4.7 billion to upgrade rail?projects along Amtrak’s Northeast Corridor. This includes New York Penn Station, and Washington Union Station. Duffy announced Tuesday, at a U.S. Senate Hearing: "We are going to give $8 Billion to rebuild Penn Station." New York has decided not to move Madison Square Garden. This is the home of the New York Knicks, the New York Rangers, and other sporting teams, concerts, and shows. New retail is also included in the rebuild, as well as a new look for the exterior. New York will open a $1.6 billion concourse in 2021 at Penn Station, located across Eighth Avenue. The 255,000 square-foot Moynihan Train Hall features a 92 foot high glass ceiling and a?lounge for nursing mothers. It feeds passengers on 17 Amtrak tracks and the Long Island Rail Road. Federal courts rejected the Trump administration's attempt to stop paying for the $16 billion New York Hudson Tunnel. The Hudson 'Tunnel project aims to construct a new commuter train tunnel between Manhattan and New Jersey, and repair an existing?tunnel that is used daily by over?200,000 passengers and 425 trains. The existing tunnel, which was heavily damaged by Sandy in 2012, requires frequent emergency repairs, disrupting travel on America's busiest passenger rail line. Reporting by David Shepardson, Editing by Chris Reese & David Gregorio
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Sinkhole closes runway at New York LaGuardia Airport
A sinkhole forced the closure of one of the runways at New York’s LaGuardia Airport on Wednesday, causing cancellations and delays. Emergency repairs are also ongoing. Port Authority of New York and New Jersey, the airport management agency for New York City, announced at 11:15 a.m. The?airfield at LaGuardia was being inspected by officials every morning when they discovered a sinkhole. The authority warned that "travelers can expect delays and cancellations today, especially with the forecasted thunderstorms." The Federal Aviation Administration has announced that it is slowing down flights to LaGuardia Airport due to the weather and sinkhole. FlightAware is a flight tracking site. According to them, about 200 flights (or 17% of the departing and arriving flights) were canceled at LaGuardia, and 190 others were delayed. Delta Air Lines accounts for about 40% of flights at LaGuardia. Reporting by David Ljunggren, David Shepardson and Chizu Nomiyama; editing by Aurora Ellis and Chizu Ellis
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Airbus notifies some customers about further A350 delays
Airbus informed some customers of further delays in delivering the?A350 later this decade. This has raised new concerns about shipments coming from a US-based company. Three industry sources confirmed that Airbus recently acquired a parts factory in the United States. Sources said that the delays are mainly due to ongoing difficulties in securing crucial fuselage parts at the former Spirit AeroSystems facility in Kinston, North Carolina. Airbus also said that the cargo doors for the A350 Freighter, which were built in Spain, are also experiencing some problems. Airbus has said that it never makes comments about delivery dates. A spokesperson confirmed that the A350 Freighter is on track to deliver its first aircraft in 2027 and fly its first flight later this year. Airbus purchased the Kinston plant, along with Spirit’s Belfast-based A220 wing factory, last year, as the majority of the supplier returned back to its former parent Boeing. The robot-equipped Kinston facility?makes composite panel for the upper fuselage of the A350 long-haul and carbon-fibre spars or beams for each wing. Sources in the industry said that staffing problems had hindered the transition to 'Airbus,' with some employees choosing to return to former Spirit operations under Boeing. A senior aerospace source said that the transition had not been smooth. Airbus informed analysts that it had found no negative surprises in 'Kinston', but CFO Thomas Toepfer emphasized the logistical difficulty of sending European experts to support the ramp up. Reporting by Tim Hepher. (Editing by Alex Richardson, Mark Potter and Mark Potter.)
Australia is planning to increase its energy security by introducing biofuel mandates
Australia will introduce biofuel blend mandates in order to increase energy security and encourage 'local production,' a spokesperson for the government said. He added that the development of the policy was a top priority following the war with Iran, which threatened fuel imports.
Australia is a major exporter of biofuels, such as canola and tallow. However, it imports most of its fuel.
Since the Iran War began in late Feburary, many countries have sought to increase their biofuel production. This has resulted in a reduction of the hydrocarbons exported through the Strait of Hormuz.
After the war, the front pages of Australian newspapers were dominated by the rising prices of?gasoline and diesel fuel and the threat that supplies would be in short supply.
Fuel suppliers are required to make sure that they blend biofuels into a certain percentage of their fuel. In many countries, they have been implemented for petrol diesel and jet fuel.
A spokesperson stated that the government would begin consultations in the next few months to determine what mandates it should introduce. It could have a policy prepared by the end the year.
They said that the process was being "accelerated".
The consultation will involve engagement with the industry, study of other countries' policies, cost/benefit analysis and assessment Australia's capacity as a producer of low-carbon fuel.
In recent months, the government has intensified its efforts to develop a biofuels sector. This is something that?Australian's agricultural industry has long demanded.
Last year, the centre-left Labor Government announced A$1.1billion ($783.86m) in funding for?the next decade. This money will be used to support production and infrastructure. The government said Australia would have a low carbon fuel industry worth hundreds of billions by the mid-century. $1 = 1.4033 Australian Dollars (Reporting and editing by Jamie Freed; Reporting by Peter Hobson)
(source: Reuters)