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South Korea's labour minister urges tech companies to share AI profits with their suppliers and staff
South Korea's Labour Minister called on major tech companies to share their windfall profits. He warned that the AI boom, which has brought unprecedented gains in the chip sector, could widen the gap between rich and poor. Kim Young-hoon said in an interview that companies such as Samsung Electronics who?outperform their profit targets, should consider sharing the excess gains after subtracting taxes with their suppliers, subcontractors, and their employees, given their contribution to corporate growth. He said that the South Korean government, business, 'unions, and suppliers' should have a dialogue on how to share these "excess profit" and reduce the gap between larger conglomerates, and smaller suppliers. Kim, an ex-labour activist appointed by the left-leaning South Korean president Lee Jae Myung helped broker a pay deal at the last minute between Samsung and its union. This prevented a major strike, and gave hefty bonuses for its memory-chip employees. In his first foreign interview since the Samsung deal, Kim's proposal for distribution reveals some of the unconventional ideas being considered by top South Korean policymakers as they try to grapple with the huge windfall that the country has received due to the global boom in artificial intelligence. Kim said, "We should establish new rules for distribution by social dialogue." It is indisputable that Samsung's impressive achievements are the product of the hard work and dedication of both management and labour. There are 1,700 suppliers as well as contributions by local communities including water and electricity. The use of AI has fueled a surge in demand for memory chips, resulting in a huge increase for Samsung and SK Hynix. Samsung has agreed that it will give employees special bonuses if the company achieves an annual operating profit of more than 200 trillion won (129,3 billion dollars) from 2026-2028. Kim raised the issue of a public discussion on "what to do with excessive corporate profits" in late May. He has since announced that he will host a forum to discuss the topic. He discussed his thoughts on how to share excess profits, such as by adjusting suppliers' prices, for the first time. Kim was criticized by South Korea's conservative People Power Party, which claimed that he raised "a dangerous notion of state intervention" and undermined the foundations of the?free market economy. The South Korean presidential office has not responded to a request for comment about this story. The South Korean presidential office has said that Kim's remarks raised important questions and it welcomed the idea of debate. Last month, a high-ranking South Korean official suggested that citizens receive a "dividend", using the excess tax revenue generated by AI profits. Samsung and SK Hynix refused to comment. KIM: REINVESTMENT IS NOT COMMUNISM Kim rejected PPP's claim his proposal was "communism," stating that it would be reinvesting in the supply chain and improving competitiveness, as well as helping South Korea overcome the challenges of low growth. He said, "What I meant by distribution was sharing profits with the suppliers." This is clearly reinvestment. Kim suggested that adjusting the contract prices of suppliers could be discussed. He said that such profits could be used to invest in talent for small suppliers. South Korean job seekers prefer larger conglomerates such as Samsung over smaller companies due to wage differences, benefits and other reasons. He said that the divide will widen when workers at large companies get hefty bonuses for their performance, thanks to the AI boom. He said, "This is worrying." Government data shows that the income gap between South Korea's bottom 20% of households and the top?20% increased by the most since six years during the first quarter. Kim stated that a worsening of inequality would slow down the growth of Asia's 4th largest economy. SAMSUNG AVERTED STRIKE It is rare for the South Korean labour minister to get involved in negotiations between unions and companies. Kim claimed that he did so on the request of Samsung Management and the union, after talks had repeatedly broken down. He said a strike lasting 18 days could have severely hurt South Korea's stock market and economy. Kim said that both Samsung and the labour organizers were inexperienced at such negotiations, as Samsung has long had a "no-union" policy. They also had a difficult time figuring out the best way to distribute the unprecedented profits between different stakeholders within the company. He said: "I told President Lee I would use my experience as a leader in the labour movement to establish a relationship with him." Analysts say the Samsung deal may encourage?unions to demand better remuneration at other companies. Kim stated that he didn't want to be involved with every negotiation. He believes there needs to be an underlying framework to help union-company discussions moving forward. But challenges remain for Samsung. Kim stated that the management of Samsung must address discontent within its own ranks over the disparity in pay between its non-memory chip and memory-chip divisions. This could lead to a defection among foundry workers. He said that rewards must be given for short-term results. "However the company must also invest in and motivate the strategic talent for the medium- to long-term."
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Trump will build a Lincoln Memorial promenade in Washington as part of the Washington revamp
Donald Trump announced on Thursday that a promenade would be built onto the Lincoln Memorial, the latest of a number of construction projects Trump has undertaken in the U.S. Capital. Trump said to reporters at the White House that he didn't want it to be called the Trump Promenade. He did not elaborate on who asked to name it for him. Lincoln Memorial is one of Washington's iconic landmarks. It honors the president who led America through the Civil War. The Lincoln Memorial is located at the western end the National Mall overlooking the Reflecting pool, which Trump has also renovated. Trump's announcement is part of an overall effort by the former developer to reshape Washington. Trump also plans to build a 250-foot-long (76-meter-long) arch, and a 90,000.0-square-foot-large ballroom on the site of what was the?East Wing White House. His projects have been challenged in court, including his attempt to renovate a performing arts center named after President John F. Kennedy. A governing board made up of Trump appointees changed the name of the facility from the Kennedy Center to the Trump-Kennedy Center. Last week, a judge ordered that the name be changed to the Kennedy Center. Trump said that the pedestrian promenade will be built across two roads running alongside the memorial, allowing pedestrians to get to other tourist attractions and the Potomac River. He said, "It is a beautiful project and it will take the Lincoln Memorial all the way down to the Potomac as it was planned to do." The White House did not have any additional information on the project. Trump made his announcement?on the?same?day as water started flowing into the renovated Reflecting Pool at the Washington Mall. Trump was particularly interested in the pool, and had a new color installed that he called "American flag" blue. A U.S. Planning Commission on Thursday approved Trump's plans for a 250 foot Triumphal Arch to be built across the Potomac River, from the Lincoln Memorial. "It will, without question, be the greatest arch of all when completed!" In a tweet, Trump welcomed the news.
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Air Current reports that Boeing is weighing 737 production ramp-up in order to reach Airbus targets.
The 'Air Current' reported on Thursday that Boeing is looking at increasing production of its best-selling 737 jet beyond the publicly?stated goal of 63 aircraft a month. Reports citing sources familiar with the situation said that the planemaker was drafting plans and evaluating whether its suppliers would support a production increase of 70 narrowbody jets per month. The ambitious target would test Boeing's supply chain, and bring its production plans closer to Airbus's output goals for the 'competing narrowbody' family. The report stated that the studies were at an early stage, and the higher cadence might not be adopted. Boeing didn't?response immediately to a request for comment. After consulting with the U.S. federal aviation administration, the U.S. planemaker announced in May that it would increase production of its 737 MAX aircraft to 47 per monthly from 42. Kelly Ortberg, CEO of the company, had stated?at a conference in May that "we're on and rolling at a 47-percent rate and should be there within the next couple months." Airbus had long sought to produce 75 A320neo family jets per month, but was forced to push the goal back due to supply chain constraints. Airbus now plans to reach 70-75 jets per month by?end 2027. Production will then be stabilized at 75. The company produces an average of 60 narrowbody aircraft per month. Reporting by Shivansh Tiwary, Bengaluru. Editing by Shilpa Majumdar.
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United issues safety bulletin for pilots following plane collision with light pole near Newark Airport
United Airlines sent a safety bulletin to all pilots regarding approaches at Newark Airport after a Boeing 767 aircraft struck a light pole on the New Jersey Turnpike. A video shows debris from the lightpole, which was only 15 feet high above the ground, striking a tractor trailer traveling southbound along the turnpike. The flight crew, 220 passengers and 11 cabins deplaned safely at the gate. Only the driver of the tractor trailer sustained minor injuries. The plane suffered substantial damage. United informed?pilots following the incident that landings on short runways should be performed so that the touchdown occurs at least 1,500 feet (457.2m) away from the threshold of the runway, but no earlier than 1,000 feet. United didn't immediately comment. United Flight Operations issued an alert for Newark arrivals that was specific to this runway. United Flight Operations said that it had identified the fact that pilots "duking under" can lead to lower approach altitudes when entering certain airports and runways. The pilot said to the NTSB that he "got quick" as he turned his airplane into a headwind, pulled the power levers inwards to compensate, and heard the first-officer yell out "airspeed slow" on short final. The first officer reported that the captain said he heard "a thump", and the first officer felt a slight jolt. The NTSB stated that the aircraft?had three punctures in the lower left fuselage, and the tire of the main left landing gear showed evidence of slashing marks. (Reporting and editing by David Shepardson)
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Putin calls on Germany to decide whether or not it will buy Russian gas via Nord Stream again
On Thursday, President Vladimir Putin stated that Russia is ready to resume supplies of gas to 'Germany through the 'Nord Stream Pipeline which was heavily damaged by underwater explosions. Putin told reporters in St. Petersburg one of two lines of Nord Stream 2 was intact and could begin pumping gas "tomorrow." "I am not joking, just press the?button to start the gas flowing." "But for that, the German government must make a decision," he said. Putin did say that Nord Stream is under U.S. Sanctions and Germany would need to come up with an agreement in order to remove them. He said that Russia could provide?upto 28 billion cubic metres a year. "But we need a clear response from our German partners at Gazprom - whether they will take it or no." We'll sell it to others if we don't. Gazprom, the Russian gas company, produces and sells this gas. Putin spoke to foreign media at the St. Petersburg Economic Forum where a senior AfD member from Germany met with Russian officials and demanded a reopening for Nord Stream. Germany is still struggling to recover from the energy crisis caused by the explosions that crippled the pipelines in September 2022. This left Berlin scrambling for alternative sources. Russia has accused Ukraine of being behind the attack despite Kyiv's repeated denials.
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Sources say Qantas is considering ordering 20 wide-body aircraft from Boeing or Airbus.
Industry sources claim that Qantas has been in talks with aircraft manufacturers about a potential order for 20 wide-body Airbus or Boeing jets. Sources who declined to be identified as the discussions are confidential said that the 'Australian carrier is 'considering additional Boeing 787s, or the'main -variant?of Airbus A350. Airbus and Boeing declined comment. Qantas' spokesperson stated: "We are in regular contact with the aircraft manufacturers to plan our fleet and we always update the market when there is something new to announce." We have no orders or updates to announce at this time. Airlines have expanded their wide-body fleets despite geopolitical uncertainties to alleviate industry shortages. Singapore Airlines, which reported earlier on the matter, has begun discussions with Qantas about buying at least 50 of its largest jets in order to prepare for growth over the next decade. Qantas has a fleet of 128 jets, and it is currently undergoing a 200-aircraft fleet renewal program. The airline has orders outstanding for 12 Boeing 787s as well as 24 larger Airbus A350-1000s. This includes 12 of the new "Ultra-Long Range", which is designed to fly non-stop from Australia's East Coast to London or New York, under "Project Sunrise". Airbus and Boeing have been equally split in the options that are available to purchase more jets. Sources said that some of them could be exercised in the context of this latest study. Qantas is a "regular battleground" for Airbus and Boeing. Airbus' decision to abandon its less ambitious A350 design in favor of Boeing's composite 787 20 years ago was partly due to the airline's choice to choose Boeing. Qantas is yet to order its main A350-900 variant, but these lightweight jets are now at the core of the wide body market. Due to supply chain problems, the first A350-1000ULR specially adapted for 22-hour record "Project Sunrise", made its maiden flight Tuesday. However, due to the delay of about four months until April 2027, it will not be delivered until then. Reporting by Tim Hepher. (Editing by Hugh Lawson, Mark Potter and Hugh Lawson)
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Israeli strikes kill 10 Gazans, say medics
Health officials reported that Israeli strikes on Gaza Strip killed at least 10 Palestinians including five members of the same family. Nine people were killed and at least 15 injured when Israeli aircraft hit four apartments in Gaza before dawn. A separate airstrike near Wehda Street, Gaza City, killed and injured one person later on Thursday. The death toll for the day now stands at?at least 10?. The Israeli military has not yet commented. After the first strike, footage showed a building that was blown out with furniture and debris scattered across the road. In a video that circulated on Palestinian social media but which we couldn't verify immediately, people were seen entering an apartment to retrieve bodies with blankets. "We were awakened by the strike around 2:30 in the morning. We found pieces of flesh, and people were asleep. Khalil Battaran, a neighbour to the family that was killed, said: "They say the war has ended, but the 'war isn't over." The only person to survive the attack on the home of the family was a girl, according to medics. "There is no security in Gaza... They fire on us every day from there, and hit us with missiles. "It's futile," Batran continued. Negotiations are stalled The ceasefire brokered and signed by U.S. president Donald Trump failed to stop Israeli attacks. Israel now controls more than half of the enclave. The indirect talks about a second phase deal, including Hamas de-armament and Israeli troop withdrawls, have stagnated. Israel says its strikes are to stop imminent attacks, and it is allowing aid and goods in Gaza. Gaza's health officials have reported that 930 Palestinians were killed by Israeli airstrikes since the truce began. Hamas does not provide much information on the deaths of its fighters. Israel's military said that four Israeli soldiers were killed by militants in the same time period. Gaza's health authorities report that more than 72,000 people have died in Gaza since the beginning of the conflict, with most being civilians. Israel said that Hamas' attacks on October 7, 2023 killed 1,200 people, and they took 251 Israelis and foreigners hostage. Reporting by Nidal Al-Mughrabi from Cairo and Dawoud Ab Alkas from Gaza. Editing by Jacqueline Wong and Kate Mayberry. Mark Potter is the editor.
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Official: US Postal Service is not expected to run short of cash in the next year
?The U.S. Postal Regulatory Commission informed?lawmakers on Thursday that it did not believe that the financially troubled Postal Service would run out of money next year. However, it has significant issues to address. Robert Taub is the vice chair of the Postal Service oversight commission. He told a U.S. House Subcommittee recent actions taken to provide financial relief had extended the period before USPS "reported its insolvency". This would be by several more years if the Postal Service made key decisions regarding its expenditures. We as a nation must act, given the Postal Service’s dire financial condition. "I don't believe we can just leave it to the Postal Service," said?Taub in his testimony. USPS Postmaster David Steiner warned that the USPS may run out of money as soon as February. Taub said that the USPS reform plan adopted six years earlier has not stopped ongoing losses, and has "consistently slow mail delivery throughout the United States, especially in rural areas." The question that needs to be answered is whether USPS will continue to deliver mail to 170 millions addresses six days per week at a cost of $3.4 billion yearly. USPS reported net losses in the amount of $120 billion since 2007. First-class mail, the agency's most profitable product, fell sharply as the shift from traditional to digital communication occurred, even though the agency still had to maintain "costly" nationwide delivery operations. USPS announced last week that it would suspend non-essential expenditures on?travel?,?office supplies? and consultants. Steiner explained to officers that the move was made "to protect our core operations and continue meeting all essential obligations." The Postal Service announced last month that it would suspend temporarily?employer contributions to a federal pension plan and raise the cost of first-class stamps by 82 cents per stamp, starting July 12. By suspending employee pension contributions, you can save $2.5 billion by September 30, and up to $15 billion in 2030. Steiner stated in March that the Postal Service would be hiring restructuring advisors to address its financial problems and had asked Congress for further reforms.
Japan increases its efforts to develop sustainable aviation fuels by focusing on cooking oil? ?
Maki Watanabe, a Japanese homemaker from Tokyo, carefully pours the oil used to deep-fry aubergines into a plastic container. She is doing her part in her Tokyo-based kitchen to help increase production of environmentally-friendly jet fuel.
"It'd take a lot to make an airplane fly, so I hope that we can collect more," said Watanabe. Her love of cooking allows her a donation of?about 40 litres per year.
Her contribution was pooled in a supermarket nearby, which is one of approximately 300 participants involved in a public/private project called "Fry to Fly", amidst the Iran War that has squeezed energy supplies and increased costs for this resource-poor nation.
Japan looks to consumers such as Watanabe more urgently than ever before, scrambling to achieve a goal to procure a tenth (10) of airline fuels from sustainable sources by the year 2030.
Used cooking oil is a cheap and sustainable feedstock that can be used to make aviation fuel.
SAF production in the United States is currently limited to 30,000 kilolitres, or just 0.3% of jet fuel consumption.
"We are facing a harsher reality than we expected," ANA and Japan Airlines said in a joint presentation about SAF efforts.
The rush to collect cooking oils highlights the challenges facing the aviation industry - one of the largest emitters of greenhouse gases - in trying to reduce its carbon foot print.
An investigation conducted last year revealed that only a small fraction of the SAF projects announced by airlines around the world have been implemented.
The high cost of SAF has been a barrier to adoption for years, but if we don't reach the volume target for 2030, refiners will face higher costs and airlines more.
This is because refiners might need to import more expensive SAF or feedstock in addition to possible penalties. This could have a knock-on impact?for airlines.
Singapore, a tiny aviation hub in Southeast Asia, relies heavily upon imported feedstock to reach its 1% goal.
The pivotal Year
This year is crucial for refiners to continue their SAF efforts.
The government has stated that final investment decisions must be made by March in order to ensure mass production in 2030.
Eneos, a leader in the industry, said that the amount of cooking oil collected will be a factor when deciding whether or not it will enter into a joint venture with Mitsubishi Corp for the production of 400,000 kilolitres SAF following the fiscal year 2028.
Committing to SAF production is a risky decision due to the complex and expensive production process. This includes everything from feedstock collection to hydrogenation and distillation.
JGC, the engineering firm that built Japan's first SAF commercial plant in 2010, said that a clearer demand outlook was required to justify increasing production.
The joint venture between REVO and Cosmo Energy, a biodiesel producer, has an annual capacity of around 30,000 kilolitres.
COLLECTION DRIVE STEPPED UP
As the target year nears, public-private supply chain initiatives are increasing their efforts.
Tokyo wants to encourage more companies to coordinate and raise awareness about oil collection in the city's 7,8 million households.
It distributed 13,000 plastic funnels with QR-coded instructions for collection in the last fiscal year after collecting a meager 160 kilolitres by 2024.
This figure was calculated using the formula from the JGC-Cosmo Joint Venture, Saffaire Sky Energy.
Yasushi Sato, a Tokyo official, said: "If we do not start now, we will simply not make it to 2030."
The retail giants Aeon and 7-Eleven have set up additional drop boxes.
UCO Japan, an organization of companies involved in the?recycling of such oil, claims that even if each drop of used oil was collected, it would still amount to 550,000?kilolitres. This would provide about a quarter the SAF needed in?2030.
Analysts say that since Japan collects nearly all waste oil available from businesses, SAF is virtually inevitable until technology like producing bioethanol-based Jet Fuel can be used commercially.
Motoomi Susi, senior economist, Norinchukin Research Institute said that the goal is ambitious, especially given Japan's current need for domestic feedstock. She added that used cooking oil will be the only option available in the near term. (Reporting and editing by Chang-Ran Kim, Clarence Fernandez and Jekaterina Glubkova)
(source: Reuters)