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Vietnam Orders Airlines to Accelerate U.S. Deals as Washington Trade Probes Mount
Vietnam's major airlines have been ordered to examine the progress of multi-billion dollar agreements with Boeing and Pratt & Whitney and look at new import deals with American firms, as Hanoi tries to bolster its hand in a?trade negotiating with the United States. The directive was issued on June 5, and then reviewed on Tuesday by the Ministry of Industry and Trade. This ministry is in charge of Vietnam's efforts to "demonstrate" to Washington the fact that the bilateral trade agreements are being implemented. The move follows three separate Trump Administration probes that targeted Hanoi over alleged trade distortions through?excessive capacity, intellectual-property violations, and using goods produced with forced labour. The document explains that the Ministry of Transport has asked flag carrier Vietnam Airlines and budget airline Vietjet to give details about the implementation and delivery of deals signed with U.S. Partners, as well as to suggest ways to increase imports. Vietnam Airlines and Vietjet signed a joint agreement to buy 250 737 MAX aircraft. Sun Phu Quoc Airways is the aviation arm of Sun Group, and has separately contracted to buy 40 Boeing 787 Dreamliner wide body jets. According to the document, Vietjet has a contract for engines with Pratt & Whitney (part of RTX Group) for its Airbus planes. Vietnam's exports into the United States have soared. U.S. data shows that the U.S. trade gap with Vietnam was $54.8 billion during the first quarter of this year. This is higher than the deficits with China and Mexico. The Trump administration has said repeatedly that it wants to reduce the trade deficit.
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Fifth Qatari-controlled LNG tanker exits Hormuz strait
Ship-tracking data revealed that a fifth Qatari LNG tanker?transited the Strait of Hormuz carrying a cargo. This brings the total to nine?LNG vessels which have?exited this waterway with a cargo since the onset of the 'war. According to Kper and LSEG, the Al Daayen was controlled by QatarEnergy. It was spotted on ship-tracking data around June 4-5 off the coasts of Qatar. On Monday, it reappeared in ship-tracking data that showed the vessel east of the Strait and heading towards?China. According to Kper, the tanker reportedly loaded a cargo?on 1 June at Qatar's Ras Laffan Terminal. According to Vortexa, an analytics firm, a ballast LNG ship managed to return to the waterway after delivering a shipment to India. The tanker, which is managed by the Abu 'Dhabi National oil Company (ADNOC), had entered the Strait before to load cargo on Das Island between April 19th and May 23th. In a late Monday note, Vortexa said that satellite imagery in the UAE confirmed ADNOC’s Al Hamra carrier had been near the Das Island Terminal late last week after completing a?inbound transit of chokepoint. The vessel's last appearance on AIS (Automatic Identifier System) was on 30 May, before its?dark' inbound transit for a?reload – its second since April. QatarEnergy & ADNOC didn't immediately respond to comments outside normal business hours. The 'U.S. and Israeli war against Iran, which began on February -28, has severely restricted shipping through the Strait of Hormuz. This is a major transit route that accounts for a 'fifth of world oil & LNG supply. ?Shipping traffic through this strait was averaging 125-140 daily passages before the war. Around 20,000 seafarers are still stranded in the Gulf on hundreds of vessels. (Reporting and editing by Edwina G. Gibbs; Reporting by Emily Chow)
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New Zealand's Capital City is hit by a storm, which cancels flights and ferries
On Tuesday, gale-force winds and rough waves battered New Zealand’s capital city of Wellington. This forced ferry and flight cancellations and road closures. Authorities urged hundreds along the?south coast of the city?to evacuate. An airport spokesperson confirmed by email that a light?aircraft was briefly blown over at Wellington Airport after a strong wind gust tipped it onto its wing. It said, "Nobody was hurt and it was quickly rectified." The 'New Zealand Herald' reported that the plane was just landing and the passengers had already disembarked when it tipped. At Wellington Airport, eight flights were canceled. Air New Zealand has informed passengers of the possibility that high winds may disrupt flights out of Wellington, and provided rebooking alternatives. The weather bureau has warned that waves of up to 29.5" (0.9 m) could be expected along Wellington's south shore. We are now in the forecast period of most significant swell effects. The Wellington City Council posted on Facebook that if you are still in the evacuation area and haven't left your home, it is best to "shelter-in-place". The ferry service between New Zealand’s North Island and?South Islands was cancelled on Tuesday. The weather bureau has forecast that waves will rise "rapidly" on Tuesday morning and early afternoon, along the east coasts in the North and South Islands as well as at the Chatham Islands. Island Bay resident Jonathan Delich, owner of Cook Strait Fishing Charters told the New Zealand Herald that he had cancelled all operations scheduled for Tuesday and Wednesday. Delich stated, "We would not take you fishing even if it was your desire... today no one with a sane mind would be on the water." Reporting by Renju José in Sydney, Editing by Lincoln Feast
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The new US-Canada Bridge is nearing completion despite Trump's earlier threats
The new $4.7 billion bridge between Detroit and Windsor in Ontario is set to open within the next few weeks, according to a bridge authority on Monday. This comes despite President Donald Trump's threat to block its opening in February. Sources say a formal ribbon-cutting will take place later this week. Detroit media outlets reported that the Gordie-Howe International Bridge was expected to be open for traffic on June 15, according to reports. In February, Trump cited Canada's refusal to allow some U.S. alcohol products to be sold in Canadian stores, Canada's tariffs for dairy products, and Canada's trade talks with China as reasons why he may not permit the bridge to open. A spokesperson for Michigan Governor Gretchen Whitmer and the Canadian Embassy in Washington both declined to comment. The White House declined to comment immediately. A spokesperson from the Windsor-Detroit Bridge Authority stated that the project team is making good progress towards a June 21 opening, "which will serve as a vital link for economic development between the two nations." Canada financed the construction of the bridge that began in 2018 because the U.S. refused. Tolls will cover the costs over a period of 30 years. Homeland Security Secretary Markwayne Mullin stated at a Senate Hearing last week that the department was "good-to-go" for staffing the Gordie Howe Bridge. The new bridge is expected to ease traffic for trucks on the privately-owned Ambassador Bridge, which leads into Detroit. Detroit is the largest?freight hub on the U.S. Canada border. Commercial trucks traded $126 billion worth of goods in 2023. According to a University of Windsor report, it will?save truckers $2.3 billion in 30 years by cutting 20 minutes from the crossing time. In his second term, Trump has issued a number of threats and dramatically increased tariffs against the U.S.' northern neighbor. In January, Trump said that he would impose 100% tariffs on Canada if they followed through with a trade agreement with China. Trump said in January that the U.S. will decertify some Bombardier planes, and threatened to impose 50% tariffs on imports of all aircraft manufactured in Canada until Ottawa certifies a number if planes made by U.S. competitor Gulfstream. Trump dropped his threat when Canada certified certain U.S. aircraft. (Reporting and editing by Sonali Paul; David Shepardson)
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S&P downgrades JetBlue deeper into junk as high fuel costs dent recovery
S&P, a global ratings agency, said that JetBlue Airways was downgraded to "CCC+" on Monday from "B-", pushing it further into junk status as high jet fuel prices?have hampered its recovery. The 'low-cost carrier' has been trying to restore its profitability by cost cutting, network changes, and improving operational reliability. However, higher fuel prices have complicated the turnaround plans. Low-cost and budget airlines are particularly vulnerable to fuel price spikes linked to the Iran War, as they have limited capacity to pass higher costs on to customers without risking their demand in a highly competitive travel market. S&P stated that "given the Middle -East conflict, and the material increase in oil and jet fuel costs, we expect JetBlue’s operating performance to be significantly impacted over the next 12 months." The strong demand environment will continue to support higher fares. However, we do not expect to generate positive free cash flows until 2028. We project leverage of about 10x at the end 2027. JetBlue could face higher borrowing costs if its junk rating is increased. It may also be unable to access capital markets, at a time that it needs additional liquidity to fund its operations. Fitch downgraded New York's?carrier from "B" to "CCC+", citing ongoing operating losses and negative cash flow. S&P maintained its outlook for JetBlue, expecting the airline to have enough liquidity to cover the?projected?free cash flow deficits until 2027. There are no near-term maturities, and no default or restructuring is expected in the next 12 months. JetBlue secured a $500-million debt financing commitment in support of up to 22 aircraft earlier this year. The company also has the option to raise $250-million more.
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Canada launches loan program for airlines to deal with high fuel costs
In a 'Monday statement, the Canadian finance ministry announced that a new loan programme would be launched to assist domestic airlines in dealing with high fuel costs and maintaining operations and jobs. The 'Iran war' has caused jet fuel prices to skyrocket, eroding profit margins and straining balance sheets. This pressure has led governments to extend support to domestic carriers in order to maintain affordable airfares and preserve competition. The Canadian government said that under the 'loan program', eligible airlines will receive up to C$150,000,000 ($107.5 Million) in repaid liquidity support. The government must also balance the need to protect the free market with its desire to preserve it. WestJet, the Canadian airline, opposed Ottawa's plan to offer loans to airlines. Instead of continuing with "costly and market-distorting subsides," WestJet urged the government to instead help build a future for Canada's aviation sector. WestJet, owned by Onex Corp, said that the United States has not bailed out any airlines, in order to maintain a level playing field. The Canadian government did not immediately respond to an inquiry about WestJet's comments. Air Canada, Canada's largest airline, said it had a "very strong balance sheet" that was built to prepare for events like the recent fuel price spike. It added, "we are able adapt and manage this particular situation." Last month, the U.S. Transportation Secretary Sean Duffy stated that he didn't believe that the government should bail out low cost carriers who had requested $2.5 billion of relief. He encouraged the airlines to instead turn to the private market. In May, the jet fuel crisis claimed its first victim when U.S. Low-cost carrier Spirit Airlines stopped operations.
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Senators want to investigate the US Transport chief's road trip, which was paid for by corporate donors
A group of six Democratic Senators demanded on Monday that the government 'investigate' U.S. Transportation Sec. Sean Duffy after he took a road trip to film a family vacation filmed for a web video series financed by corporate donors whose firms his department regulates. The Senators Patty Murray and Elizabeth Warren asked the DOT Office of Inspector General for a review of the video series. They said Duffy's actions raised "serious concerns about the use of funds and possible misconduct." Nate Sizemore is a Duffy spokesperson who called the "witch-hunt" an effort and claimed that career ethics officials had cleared Duffy of all aspects of his participation in the Great?American?Road trip. Sizemore said, "This is rich, coming from senators who accept millions in campaign donations from companies that they have jurisdiction over, to fund their private jets and steak dinners as well as fancy retreats." Senators pointed out that the trip had been funded by a non-profit organization that received substantial contributions from USDOT companies, such as Boeing, Toyota, United Airlines and Shell. The senators said, "We are concerned about this possible mix between personal activities and professional activities." They argued that, if the trip was for personal reasons, Duffy shouldn't have accepted gas, hotel accommodations, and other travel costs "from a not-for-profit funded directly by the companies the secretary regulates." Companies declined to comment on the matter or didn't respond immediately to comments. The trip, filmed over a period of 24 days, included a visit to Fenway Park, Boston, St. Louis, and Philadelphia, as well as sites in Montana and Philadelphia. USDOT hasn't?yet published the video series. Duffy, father of nine, former reality television star, and member of the?Congress said that neither he nor his family received any salary or royalties from the show. The road trip was a series of "short getaways" lasting one to two days over an eight-month span, and his children's spring break, which lasted nine days in April. The five-part series will be available on YouTube. Citizens for Responsibility and Ethics in Washington filed a?ethics?complaint suggesting that the situation could have violated federal gift rules. The group called for an investigation by the Office of Inspector General of the Transportation Department and pointed out that a Toyota car is prominently displayed in the promotional video of the series. (Reporting and editing by Mark Porter, Aurora Ellis, and David Shepardson)
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Underwater footage of a great white shark during the Mediterranean cleanup caught by the camera
Divers who were removing abandoned nets in the central Mediterranean, between Italy and North Africa have captured what they believe to be the first ever underwater footage of an adult great 'white shark?in the region. The sighting was made when a team, led by the Healthy Seas Foundation, recovered ghost nets from the wreckage of a ship in the Strait of Sicily - a biodiversity hotspot that has been heavily affected by industrial fishing. The video was taken last week and released on Monday. It shows a shark flanked by a dozen striped?pilot?fish. These fish often accompany large predators to pick up leftovers. Derk Remmers, a volunteer diver from Ghost Diving (one of the partners in the project), filmed and took photos of the shark. Remmers stated that an offshore underwater shark encounter is "insane" in a press release. A second member of the diving crew, Pascal van Erp said on Facebook that he believed the shark was attracted to the dead marine life caught in the abandoned nets, which included many sea turtles. The foundation said that although there were 'occasional sightings' of great whites, it is not known the size of their population. Previous encounters have also not been recorded by divers. Veronika Mikos, director of Healthy Seas, said: "Moments such as this remind us that there is still life in the Mediterranean's offshore waters. It is important to protect them from preventable threats such as abandoned fishing gear and overfishing." Researchers working with the mission stated that the sighting would help to improve our understanding of the distribution and behavior of this critically endangered species. However, further analysis is needed before we can draw any broader conclusions. (Reporting and editing by Alvise Armillini, with Crispian Balmer)
London is chosen as the European hub for AI-coding startup Cursor.
An executive revealed that the AI coding startup Cursor will be opening its European headquarters in London, and hiring 200 employees, as the demand for automated software development tools grows.
Elon Musk’s SpaceX is preparing for a highly anticipated IPO this coming week. In April, it announced that it had acquired an option to acquire the code-generation startup Cursor later this year for $60 billion, or pay $10 Billion for their new partnership as it pushes further into the lucrative'market for AI developer tool.
Cursor, based in San Francisco, chose London because of its 'access to multilingual workers and deep talent pool,' allowing it to serve multiple European markets with a single base.
London is home to the largest concentration of technology talent in Europe, and it's second-largest worldwide after San Francisco. Elmas?said that Cursor plans to open smaller offices in Paris as well as?Munich?, Frankfurt?, Amsterdam?, and Stockholm?.
Cursor has grown rapidly since it was founded in 2022. According to data provided by the company, business-to business revenue and enterprise sales have risen sharply.
Customers include British Airways, BP Nokia, and Sanofi.
"Running out the business from the U.S. does not work." Elmas stated that the European market has its own needs and that being in this region is very important.
He said that the company is seeing an increase in demand from its customers to keep their data in the region. This is especially true for regulated industries who are concerned about privacy and compliance.
Elmas?refused to comment on SpaceX's option.
By the end of this year, the company aims to hire 200 employees in EMEA. This is an increase from the 70-80 employees it has now.
Cursor software allows users describe applications using natural language. This helps companies accelerate development and modernise legacy system, which, according to the company, can increase developer output.
Cursor is competing with Microsoft-owned GitHub Copilot, OpenAI, and Google. It positions itself as a platform that allows customers to choose from different AI systems. (Reporting and editing by Nia William; Sam Tabahriti)
(source: Reuters)