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Trump asks Congress to increase pensions for former GM Parts Company workers by $1 billion
The White House asked Congress for $1 billion on Wednesday to increase the pensions of former General Motors Auto Parts Unit Delphi workers that were reduced during a bankruptcy restructuring in 2009. As part of a supplemental request, the?White?House also wants to raise $1 billion for reconstruction work at New York's Penn Station. It is also requesting $500 million to continue construction on Washington's World War II Memorial and Tidal Basin. The White House wants Congress to allow the Federal Aviation Administration to reallocate funds from the $12.5 billion modernization of air traffic control effort approved last year, to any priority other than the spending plans for air traffic set by Congress last year. Delphi cut pensions for over 20,000 retirees on a salary, including 5,000 in Ohio. Some suffered?pension cuts of up to 70 percent, and legislators have been pushing to restore these cuts for years. The Pension Benefit Guaranty Corporation received the pensions for salaried employees as part of the $50 billion bailout that GM received in 2009 under the Obama administration. GM has declined to comment. The Transportation Department announced last month that it would provide another $200 million for construction to begin by the end next year of an $8 billion plan to redevelop Penn Station. Amtrak, the U.S. passenger rail company, said that it plans to replace aging walkways and open modern concourses with newer ones. Penn Station is America's busiest transit hub, serving 10 million Amtrak riders annually and 100 millions total passengers including regional train systems. New York has decided not to move Madison Square Garden. The Garden is located on top of Penn Station, and hosts the New York Knicks Basketball team, New York Rangers Hockey team, and various sporting events, concerts, and shows. (Reporting and editing by Sonali Paul; David Shepardson)
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No tsunami warning following M6.9 earthquake in Japan's northeast
The Japan Meteorological Agency announced on Thursday that no tsunami warning had been issued following an earthquake of magnitude?6.9 which struck the east coast of Japan's northeastern Tohoku area. The agency stated that the epicentre was located off the coast of Iwate Prefecture at a depth of 50km. No tsunami damage is expected except for "slight changes in sea level". It said that the earthquake in Aomori had an intensity of 6+, which is a situation where "it's impossible to stand or move without crawling" on a Japanese scale from 0-7. Tohoku Electric Power has said that no irregularities have been found in the nuclear power plants?Onagawa & Higashidori, which were idled following the earthquake. East Japan Railway said it had halted certain trains, including the high-speed Shinkansen services in?Tohoku?. Japan is one of the most seismically active areas in the world. Japan is home to one-fifth the world's earthquakes of magnitude 6 or greater. (Reporting from?Kantaro Kommiya in Tokyo, and Natalia Bueno Rebolledo at Mexico City. Editing by Chris Reese, Christopher Cushing and Christopher Reese)
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Nasdaq and S&P finish lower as tech stock fall
Falling crude prices boosted airline and travel stocks, and the Dow closed higher. As more tankers are expected to leave the Strait of Hormuz, oil prices have?fallen?to the lowest level since the beginning of the Iran War. Donald Trump, the U.S. president, said that Iran told Washington there were no tolls being collected. S&P 500 passenger airline index rose 5.2%, while Expedia Group and Booking Holdings also saw gains. The tech stocks fell, causing the focus to shift towards Micron Technology's earnings after the bell. The stock is up more than 200% since?2026, but it closed Wednesday's trading down 0.3%. The stock soared in extended trading when quarterly revenue and forecasts for the fourth quarter exceeded Wall Street expectations. Cerebras Systems fell?19.6% when the chip designer predicted that full-year profits would fall below first-quarter figures. This was in its first report following going public. OpenAI's announcement of its "own inference chip" called Jalapeno also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion in value this week due to fears about debt-backed hyperscaler spending and a Federal Reserve that is more hawkish. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But, you continue to have the AI CapEx Buildout where, for whatever reason, people prefer the recipients of spending and punish those who are doing it." Six out of 11 major S&P sectors rose, with industrials rising by the most (1.2%). Consumer discretionary stocks rose by 0.8% to help offset the largest losses in energy and tech stocks. The Dow Jones Industrial Average gained 182.06 points or 0.35% to 51,848.90. The S&P 500 dropped 7.24 points or 0.10% to 7,358.22. And the Nasdaq Composite fell?110.40, or 0.4%, to 25,476.64. Homebuilders surged after Trump cancelled a scheduled signing of bipartisan legislation designed to speed up the availability of affordable housing. Hovnanian Enterprises jumped 11.3%. PulteGroup soared 7.2%, and Toll Brothers rose by 6.7%. Hertz, among other movers in the market, fell 40.7%. The car rental firm announced that it expected second-quarter adjusted core earning near the lower end its forecast range and proposed an offering of $100 million common stock. According to CME Group’s FedWatch, traders are increasing their bets on a second rate increase by the Fed before the end of the month. The market had previously?expected' a 25-basis point rise. The Personal Consumption Expenditures Index, which is the Fed's preferred measure of inflation, may provide a hint on Thursday as to the direction the monetary policies will take. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.03 to 1, with 205 new highs compared to 226 new lows. On the Nasdaq 2,323 stocks rose, while 2,499 fell. Declining issues outnumbered advancers by 1.08 to 1 ratio. S&P 500 recorded 25 new 52-week lows, while Nasdaq Composite registered 206 new highs. The volume on U.S. stock exchanges was 25,84 billion shares compared to the average of 22.92 billion shares for the entire session in the past 20 trading days. Abigail Summerville reported from New York and Twesha Dhikshit and Joel Jose were in Bengaluru. David Gregorio edited the story.
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Nasdaq and S&P finish lower as tech stock fall
The Nasdaq, S&P 500 and Dow closed lower on Tuesday, with tech stocks being the main drag. As more tankers are expected to leave the Strait of Hormuz, oil prices have fallen to their lowest levels since the beginning of the Iran War. U.S. president Donald Trump claimed that Iran told Washington there were no tolls being collected. The S&P 500 index of passenger airlines rose. The tech?stocks fell, causing the focus to shift towards Micron Technology's results after the bell. The stock is up more than 200% in 2026, but it fell on Wednesday. Cerebras Systems fell after the chip designer predicted that full-year profits would fall below "first-quarter figures" in its first report following going public. OpenAI's own inference chip, Jalapeno, also weighed on the stock. The Nasdaq 100 has lost more than $1 trillion of market value this week due to fears about debt-backed spending by hyperscalers. Michael Monaghan is Founder ETFs' portfolio manager and partner. He said that the Middle East discussion was wrapping up. Energy prices were dropping. "But there is still the AI CapEx buildout, where people, for whatever reason, like the recipients and punish those who are spending." The preliminary data shows that the S&P 500 dropped 5.86 points or 0.08% to 7,358.72, and the Nasdaq Composite fell 104.58 or 0.41% to 25,482.46. The Dow Jones Industrial Average rose 187.97 or 0.36% to 51,854.81. Homebuilders surged after Trump cancelled a planned signature of 'bipartisan legislation to'speed up the availability of affordable housing. Hovnanian, PulteGroup, and Toll Brothers were all up. Hertz, among other car rental firms, tumbled after it announced that it expected second-quarter core earnings to be near the lower end its forecast range and proposed an offering of $100,000,000 of common stock. According to the CME Group's FedWatch, traders are increasing their bets on a second rate increase by the Fed before?the end?of December. Markets had previously expected a 25-basis point rise. The Personal Consumption Expenditures price index, the Fed’s preferred inflation measure, could provide insight into the monetary policies path on Thursday. Reporting by Abigail Summerville, Twesha Dhikshit and Joel Jose from Bengaluru. Editing by David Gregorio.
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Airbus inspects some A380 jets for cracks on wings
Airbus announced on Wednesday that it would support?inspections of a subset?of?A380 aircraft, after Europe's aviation regulator had ordered urgent 'checks' on the wing structures of these?jets. The European Aviation Safety Agency (EASA), the agency responsible for ensuring aviation safety in Europe, published an urgent airworthiness directive Monday. It required inspections of 16 A380s and warned about cracks discovered in wing spars which could have a negative impact on structural integrity. Five planes must be inspected prior to the next flight, and the rest within 25 flight cycles. Flightradar24, which tracks flights, says that 15 of the affected aircraft were operated by Emirates, and one was operated by Qantas in Australia, based upon the manufacturer serial numbers. Emirates has not responded to a comment request. Airbus has identified a small group of aircraft that have similar histories, and is'supporting' inspections for those jets. A spokesperson for the company said that, "Depending on the results of the inspection, Airbus will determine with EASA if?repairs? are required or if?the aircraft can return to commercial service?." EASA stated that cracks found in certain aircraft could reduce the structural integrity of the wing. The A380 is the largest passenger airliner in the world. Airbus ended production of its?jet, which was introduced in 2007, in 2021 due to a waning demand. Bill Berkrot, Gianluca Nostro and Tim Hepher; Reporting by Hugo Lhomedet.
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Binance vows that it will remain in Europe despite a license setback
Binance, the crypto platform, plans to remain in 'the European Union, and will seek permission to operate there again, according to a senior executive. This is after Binance's application under a reformed?licence regime was rejected, which threatened access to millions of users. Gillian Lynch told? that Binance was not going to leave Europe after the failed attempt to obtain a license in Greece for the purpose of offering services like crypto trading within the EU. She said, "We might just need to take a different route in order to be approved." "If Greece is not an option, I am looking at alternatives." Binance is now on a collision course with European regulators. The company only has a week to obtain a license before the current permit to operate in Europe expires. This would force it to shut down its EU operations. Binance, according to two people familiar with the process, has met with regulators from Ireland and Greece. However they have not been able to reach an agreement. Officials expressed concern about the past money-laundering penalties of the company, its international structure, and what they perceived as a culture of risk taking. The regulators in all three countries refused to comment or didn't respond. The letters sent to regulators show how one of the largest crypto companies in the world has struggled with regulatory resistance and obtaining an EU license. Lynch stated that Binance didn't know the reason for its rejection and had previously believed that the Greek regulator intended to grant a license. She stated that Binance contacted at least four regulators, but had only submitted one application to Greece. Binance's spokesperson said that the company has not been in contact with Ireland's central banks for several years. Lynch, when asked about Binance's previous problems, said that Binance had invested heavily in compliance and internal control, had employed 1,500 compliance personnel, and did not have any outstanding issues relating to its application. Regulatory Concerns Binance's failure to obtain an EU license before the deadline of June 30 raises doubts about its future within the EU. The EU's new crypto regulations will be tested to see if authorities can enforce what amounts to a prohibition. The European Securities and Markets Authority (ESMA) said on Tuesday that crypto firms without a license must "take immediate measures to wind up their EU activities in a timely manner". MiCA (the EU's groundbreaking crypto regime) came into effect last year. Firms have until the end of June to get an authorisation to serve customers in all 27 member states. Binance claims to have more than 300 millions customers worldwide, but has declined to disclose how many of those are in the EU. Sensor Tower estimates that the app was downloaded over 4 million times last year in the EU, with France, Germany, and Spain being the most popular downloads. Sources who spoke on condition of anonymity said that regulators evaluating Binance's offer were also concerned with the backgrounds of senior executives, and the exchange’s track record in money laundering controls. They viewed these as being inadequate. One source pointed to the influence and complexity of Binance's global structure, which was attributed to founder Changpeng Zhao. Zhao said in a podcast in February that he remained Binance’s ultimate beneficial owner. Lynch told Zhao that Zhao was "100% removed from the company." Binance struggled in the past to gain regulatory approvals elsewhere. Binance is not authorised in the UK, and it was asked to leave Japan for operating without a license. Its primary licence is in the United Arab Emirates. Zhao, also known as CZ, pleaded guilty in 2023 to violating U.S. laws against money laundering as part of an $4.3 billion settlement after a year-long investigation. He spent nearly four months behind bars before being pardoned by U.S. president Donald Trump last year. Binance, according to U.S. authorities, has violated anti-money laundering laws and sanctions laws by failing to report over 100,000 suspicious transactions that were linked to groups designated as terrorist organizations in Washington. COORDINATION OF REGULATORS MiCA allows crypto firms to?apply via a single regulator national and use this as a "passport". This will allow them to sell services throughout the bloc. One source said that regulators in Latvia, Ireland, and Greece worked closely together to ensure "a consistent approach" to Binance’s application. Some regulators are concerned that inconsistent enforcement may undermine efforts to supervise a multi-billion dollar industry. They warn it could destabilise the markets, facilitate illegal finance, and harm investors if properly supervised. Eleanor Hughes, Binance's general counsel, said that Binance believed it met MiCA requirements. While national regulators issue licences, ESMA can discuss applications. Reporting by John O'Donnell and Elizabeth Howcroft. Francesco Canepa, Lefteris papadimas. (Editing by Tommy Reggiori Wilkes. ElisaMartinuzzi, Mark Potter and Mark Potter.
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US airline stocks increase as oil prices fall to pre-Iran War levels
U.S. airlines stocks rose between 3% and 7% on Wednesday, after crude prices dropped to their lowest level since the Iran War. This sparked a hope that the pressure on carrier's earnings would ease. However, the benefits will not be passed directly to passengers. S&P 500 Passenger Airlines Index jumped up to 5%, reaching an all-time record. It is now up 13% from its June 12 close. This was the day after U.S. announced a peace deal with Iran. The benchmark S&P has dropped by 0.5% during that period. Brent crude futures dropped below $74 per barrel on Wednesday amid signs more oil tankers are set to leave the Strait of Hormuz. The Strait of Hormuz is a conduit that supplies a fifth of world oil. Airlines will save billions in extra costs, as jet fuel prices have risen faster than fares during the Iran war. A sudden drop in airfares is unlikely due to the tight supply. Morningstar analyst Nicolas Owens stated that "sudden changes in fuel prices can affect the airline's profit in the short term (in the opposite directions of the fuel price), because many tickets have been sold assuming the prior fuel cost." UBS stated in a Tuesday note that it believes the third quarter earnings per share of airlines could exceed Wall Street's expectations if fuel costs moderate. Analysts say that while all airlines will benefit from lower?jet fuel prices, those with smaller fleets, a lower percentage of premium seats, and fewer customers, are likely to profit more as their margins can be more sensitive to spikes in?fuel prices. Delta, JetBlue, and Frontier each rose by 3%, while Delta rose by 3.7%, and Southwest rose 4.5%. Alaska Air, United and American Airlines were each up around 6%. According to the International Air Transport Association, jet fuel prices have fallen from a high of more than $170 to a weekly average of $119.17. This is a significant drop from a previous peak of nearly $170. Michael Ashley Schulman is a partner at Cerity Partners. He said that the drop in oil prices was part of the story, but the end of the conflict with Iran also means the resumption of some industrial ventures which were put on hold. The shares of online travel companies such as Booking Holdings, Expedia and others rose between 7% to 10%.
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Baltic Exchange defends their tanker rates during Iran war as reliable
In a London court document, the Baltic Exchange defended the flagship oil 'tanker benchmark' saying that it accurately reflected the market conditions during the U.S. - Israel conflict with Iran, despite the?disruption of the Strait of Hormuz. The benchmark is used to 'price and settle billions in freight trades around the world. Its reliability is at issue with Mercuria, one of the largest commodity traders in the world, who claims it has mispriced market. Mercuria filed a court document on April 30 stating that it was suing the Baltic Exchange for losses caused by incorrect pricing data. The company claimed the price data did not take into account the "effective closure" of the Strait following the start of the conflict in February. It claimed to have suffered or 'will suffer' losses in the hundreds millions of dollars U.S. on freight and derivative freight contracts related to?the TD3C Route. In a court document, The Baltic Exchange, which is the largest provider of shipping rates in the world, stated that its indexes still reflect market conditions because sailings continue through the Strait. In its defence filed on June 16, the Exchange stated that despite the reduced number of transits, the lawful passage was still possible and the panelists were continuing to assess the freight market. The Baltic believes that input data is representative of 'the market or economic realities and that benchmarks can continue to be published," the company said in a filing that was seen by. Baltic Exchange panelists are shipbrokers that provide independent assessments of rates for freight which are then used to create indexes. According to the Baltic Exchange website,'shipowners and chartered cannot be panelists. The London-based Baltic Exchange, which is owned by Singapore's SGX said it had separately conducted "appropriate consultations with members of the Baltic, as well as other stakeholders". The Baltic is confident in its processes and believes that the claim made by Mercuria lacks'merit'. It will defend this claim?to the maximum extent possible," the company said in a recent statement. Mercuria declined to comment further, saying it would respond to the Baltic Exchange defence in court. Reporting by Jonathan Saul in London and Robert Harvey; editing by Eliza Hardcastle
Gulf crisis affects Australian and New Zealand companies, from airlines to banks
The U.S. and Israel war against Iran is causing financial stress for companies in Australia and New Zealand. Higher fuel prices are stoking inflation, reducing consumer and business confidence and weighing on corporate earnings.
Some of the companies in Australia and New Zealand have made an impact.
Air New Zealand: New Zealand’s flag carrier predicted its largest annual pre-tax losses in four years. This was two months after withdrawing their earlier 2026 forecast, as the Iran War pushed up jet oil prices, increasing costs, and compounding the pressure of weak demand and fleet restrictions. Air New Zealand has forecast a loss of between NZ$340 and NZ$390 (between $201.8 million and $2231.5 million) for the year. This is a significant change from last year's NZ$189million profit. Air NZ announced in March that it had suspended its earnings forecast for the full year and raised fares because of volatility in jet fuel prices. It was one of first airlines to announce a price increase.
Auckland International Airport, New Zealand: Auckland International Airport reported that flights to the Middle East from Auckland were affected.
In March, the number of passengers on Middle Eastern routes dropped by 81% and seat capacity fell by 73% compared to a year earlier, according to airport operator.
a2 milk: New Zealand-based a2 Milch cut its profit forecast for fiscal 2026 as increased freight costs due the conflict and temporary disruptions in the supply chain affected the availability of the China-label formula infant milk product on its largest market.
Cleanaway Waste Management: The company has slashed the full-year forecast for operating earnings by approximately A$20,000,000 ($14.17million), due largely to higher costs, reduced activity, and differences in timing of cost recovery.
Cochlear, an Australian manufacturer of hearing implants, has lowered its profit forecast for 2026 due to a?weaker trade in developed markets', citing lower surgical volumes, less hearing-aid referrals, and softer consumer confidence.
The Middle East War has increased the risk of order cancellations and delivery delays, as well as a higher exposure to receivables. This will also worsen margin pressures and increase restructuring costs.
Fletcher Building
Fletcher Building in New Zealand said that it is 'indirectly exposed to the Middle East conflict through supply chains, freight lines, energy costs and the wider economic impact of construction demand throughout Australasia.
Construction materials manufacturer expects to increase prices in all divisions as a result of passing on costs to its customers. Plastics, where the company claims immediate exposure is present, will experience price increases of up to 36%. Other divisions will only see a 1%-5% increase.
Flight Centre Travel:
Flight Centre Travel, an Australian corporate travel manager, has lowered its profit forecasts for 2026. They cited a drop in international leisure travel due to the Gulf Conflict.
The company now expects to earn a profit before taxes of A$275 to A$295 millions for the fiscal year ending June 30. This is down from the previous target?of A$310 to A$345million.
The company revised its estimate for the leisure segment from A$10 to A$50, up from the original estimate made in April.
Fonterra: New Zealand dairy manufacturer Fonterra stated that the conflict is impacting their supply chain and could increase their inventory levels and costs during the second half of the year.
National Australia Bank: National Australia Bank expects to incur credit loss charges of A$706 ($504.44 millions) in the first fiscal half of 2026.
NAB stated that the volatility of interest rates in the second quarter, the weaker New Zealand Dollar and the increase in provisioning would result in a reduction of the common equity tier one capital ratio for the group by approximately 20 basis points on March 31.
The company also plans to apply a discount of 1.5% to its dividend reinvestment program for the first half to raise A$1.8 billion and help strengthen its balance sheet.
Orora Packaging Company: Orora has lowered its earnings forecasts for its French division Saverglass, and cancelled the share buyback program. The company cited the impact of war.
Due to the closures of shipping routes, the company also stopped bottle production in its glass production plant at Ras al-Khaimah (United Arab Emirates).
Qantas Airways: Qantas Airways is Australia's national carrier. It has raised its fuel costs outlook for the second half of the year up to A$800m. However, it still hasn't started the planned A$150m share buyback, citing the volatile and sharply increased jet fuel prices.
Qantas has raised fares to offset the rising cost of its flights and shifted them towards stronger routes, such as Paris or Rome, where demand is still strong. They have also reduced their domestic capacity in the second quarter by approximately 5 percentage points.
Qube Holdings: Qube anticipates that the Middle East conflict will have an impact on its?EBITA earnings of between A$10 and A$20 million in fiscal 2026.
The logistics firm stated that recent events could encourage an increase in investment in alternative energy projects. This could be beneficial for the company.
Virgin Australia: Virgin Australia said that it expected fuel costs to increase by around A$30 to A$40 Million ($21.39 to $28.52 millions) in the second half fiscal 2026. In mid-March, the airline announced that it would be adjusting its fares due to rising costs in the aviation industry.
Westpac: Westpac is Australia's second-largest bank in terms of assets. The lender said that the energy market shocks caused by the conflict led to profit pressures during the first half the financial year ending March 31. This prompted the lender to increase its credit provisions.
Westpac's net interest margin for its Treasury and Markets division has been weakened amid the interest rate volatility related to the conflict. A weaker outlook is already leading to higher credit provisioning.
Westpac has increased its provision for bad debts since the COVID-19 pandemic.
Woolworths Woolworths is the largest Australian supermarket. It said that the Middle East conflict had created uncertainty for both customers and suppliers, adding to the already high cost of living.
Fuel price pressures and investments in customer retention will also affect the firm's forecast for fiscal 2026.
Woolworths has also announced that it will freeze the prices of 300 household staples from May 1 for three months, as cost pressures imposed by conflict on Australian suppliers have pushed up prices across all supermarkets.
Worley: Worley, an engineering firm, said that it had nearly doubled the projected underlying operating income for its full-year due to project delays. The Sydney-based firm expects to take a A$60 million hit, up from a previous estimate of A$30-40 million.
(source: Reuters)