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Ethiopia announces resolution of debt with China
Ethiopia's Finance Ministry announced on Friday that it had reached an agreement on debt treatment with China, reaffirming both nations' commitment to progress within the G20 Common Framework in order to formalise bilateral deals. Ethiopia is facing mounting legal challenges as bondholders plan to sue the Government following the resistance of bilateral creditors to a preliminary agreement to restructure Ethiopia's $1 billion Eurobond. Ethiopia could be unable to emerge from default on its external debt due to the dispute. In a Facebook post, the finance ministry stated that a resolution was reached at a meeting held in China between?Ethiopian finance ministers and Chinese finance minsters. The discussions included "debt restructure, implementation of existing projects, and financing opportunities" as well as plans to develop a new Bushoftu International Airport. The statement said that the two sides had reached an agreement on debt treatment, and had reaffirmed their commitment?to work constructively within the G20 Common Framework parameters towards signing the?bilateral deal. Ethiopia announced that in 2021 it would restructure its debts under the G20 initiative after its finances had been severely affected by COVID-19 pandemic. The East African nation defaulted in 2023 on its $1 billion Eurobond due to a missed coupon payment of $33 million. Reporting by Nairobi Newsroom; Writing by Elias Biryabarema, Editing by Bate Fels)
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Trump wants to privatize US airport security operations
On 'Friday, President Donald Trump proposed that the Transportation Security Administration, the federal agency created in the wake of 'the September 11, 2001 attacks, begin the process of privatizing the airport security operations. The White House budget proposes to cut the TSA budget of $52 million. Small airports would be required to enroll in a TSA-funded program that pays for private screeners. TSA employs?about 50 000 federal employees to handle screening in nearly all U.S. Airports. Budget documents stated that airports using the program had shown savings when compared with?federal screen operations. Major U.S. Airports have been experiencing massive disruptions in recent weeks after Transportation Security Administration (TSA) security?officers were not paid since mid-February due to a budget dispute. Trump has not nominated anyone to replace David Pekoske as the Transportation Security Administration's head. He fired him on his first official day and never appointed a successor. The White House demanded funding cuts for the TSA of $247 million last year. They claimed that the TSA had consistently failed audits and implemented intrusive screening methods that violate Americans' dignity and privacy. This budget cut represents a 3-4% reduction in?TSA personnel levels, with the majority of the staff being located at the exit lanes. The remaining 2% is for transportation security officers who are spread out across 435 airports. As air travel has increased in recent years, the Biden administration has increased the size and staff of the TSA. It now has more than 60,000 employees. The TSA screened 904 millions passengers in 2024. This was a record and a 5% rise over 2023.
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United Airlines introduces tiered fares for premium cabins
United Airlines announced on Friday its plans to "introduce" a new tier-based fare structure in premium cabins this year. United announced that it would offer base, standard, and flexible fare options in the premium cabins of its long-haul international flights, transcontinental U.S. flights, and selected Hawaii flights. These fares will join United's existing basic, flexible, and standard fares for economy cabins. According to the new tier fare structure, customers can choose from a range of benefits, including free seating and extra checked baggage, in the standard category. Tickets in the flexible category, however, are fully refundable, and include all the same benefits as standard tickets. United Airlines announced last month a "broad aircraft and interior overhaul" centered on premium seating. The airline is pushing forward with its long-term plan, despite warnings that oil prices could remain above $100 per barrel until 2027. It also revealed plans to reduce some flights. Since the COVID outbreak, big U.S. airlines have built their business around corporate accounts, loyalty-program participants, and premium travelers. They bet that these customers will be slower to pull back on fares when they rise. United Airlines said that it would launch the new categories this month in certain markets and expand them to include additional long-haul flights, transcontinental U.S. flights and longer Hawaii routes later this year. Andrew Nocella said that the new tiered options would give customers greater choice, and allow them to find a fare with the benefits they desire - whether it's great value, extra perks or maximum flexibility. (Reporting and editing by Alison Williams in Bengaluru, Sneha S. K. in Bengaluru)
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Canadian Finance Minister discusses supply chain integrity at meeting in China
The Canadian finance minister stated on Friday that he had discussed supply chain integrity with his counterparts in China during a meeting aimed at boosting trade. Ottawa is under scrutiny from the United States over its labour laws. The Finance Minister Francois Philippe Champagne told reporters the meeting was primarily focused on the financial sector, but also included trade in energy and pork. Canada is working to increase its overall exports to China by 50% by 2030. Champagne stated that "Canada places a high priority on the 'integrity of supply chains' and that our trade should be conducted according to 'international standards. The U.S. Trade Representative's Office announced in March that it had launched a second round of Section 301 unfair trading practice investigations of 60 economies including Canada. This was due to the failure to act on what they called forced labor. China is Canada's second-largest trading partner, with bilateral trade worth C$120 billion (US$86.1 billion). According to the official Chinese summary of Champagne's Friday meeting with Vice Premier He Lifeng, the two have agreed to hold a high-level financial and economic dialogue in the second part of this year. Champagne said that Stellantis had not been in contact with the automotive sector, despite reports that they were discussing building 'electric vehicles' in Canada with Zhejiang?Leapmotor Technology. ($1 = 1.3934 Canadian dollars)
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Japanese LNG tanker crosses Strait of Hormuz
Mitsui O.S.K., the co-owner of the tanker, confirmed that a liquefied gas tanker owned by Japan had crossed?the Strait of Hormuz. Lines announced?that a Japanese-owned LNG tanker had crossed the Strait of Hormuz on Friday. Mitsui O.S.K. confirmed that the crew members of the Panama flagged ship "SOHAR LNG" are safe. Lines spokesperson refused to reveal when the ship crossed the Strait or whether any negotiations were required. Asahi reported earlier on the crossing. Until the U.S. and Israel?attacks against Iran began in February, leading to an effective closure of the Strait?, the Strait was the route used by about a fifth?of global oil and liquefied _natural_ gas supplies. Japan was especially dependent, as 90% of its oil imports and 6% of its LNG imports passed through the Strait. DOZENS JAPANESE VEHICLES ARE STANDARDIZED According to the Japanese transport ministry, as of Friday morning, 45 Japanese-owned or operated ships were stranded in the Strait because they couldn't cross it. TBS reported that among the?tankers were 12 crude oil tanks, 12 tankers with chemical or refined products, 9 car carriers, and 6?LNG tanks. Mitsui O.S.K. Lines said last month that one vessel it owns and operates suffered a minor damage in the area. No one was injured and the cause of the incident was not known. The vessel tracking data showed that a container ship belonging to the French shipping group CMA CGM also passed through the Strait on Thursday. Since the beginning of the Iran War, Chinese ships and Indian-flagged tankers have passed through the Strait. (Reporting and editing by Tomasz Januaryowski and Barbara Lewis; Additional reporting and reporting by Katya Glubkova)
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Zelenskiy accuses Russia 'of Easter escalation,' after massive attack kills 2
Officials said that a large-scale daytime Russian strike on Ukraine killed at least two people, as part of a "Easter escalation" as Moscow changes tactics to avoid Ukrainian air defenses. Since the start of the war, more than four-years ago, Russia has carried out most major drone and missile attacks at night. It has sent drones and missiles in the daytime on several occasions over the past few weeks. One strike, which took place on March 24, set a new record for 'the number of weapons that were used. Telegram said that drones killed one person each in the central Zhytomyr region and Kyiv on Friday. Volodymyr Zelenskiy, President of X, said: "Essentially, Russians have only intensified their strikes. They have turned what should have been a silence in the sky into an Easter escalation." Zelenskiy had proposed earlier this week that strikes be halted for the Easter holidays. He also said Ukraine would reciprocate, if Russia stopped its attacks on energy sector. Moscow rejected the idea. The purpose of these strikes during the day is obvious. "Russia is deliberately trying increase the number civilian casualties, disrupt life, cause fear and damage Ukraine's Infrastructure," said Prime Minister Yulia Shvyrydenko on X. VETERINARY CLINIC HIT BY STRIKE Ukraine's Air Force announced on Telegram that it has destroyed 515 of the 542 drones, and 26 of the 37 missiles fired by Russia. Air Force spokesperson Yurii Ihnat told state television on Friday that "we can see the enemy using new routes, drones they are continually modernising and new tactics." The strike in Kyiv's region damaged a veterinary hospital, along with private homes, residential buildings, and administrative buildings. Mykola Kalashnyk, the governor of Kyiv region, said that around 20 animals had been killed. Authorities reported that 18 buildings, including houses, were destroyed in Zhytomyr and more than 100 others were damaged. Poland's military has said that it scrambled its fighter jets despite the fact that there is no evidence of any violation of Polish airspace. According to Oleh syniehubov, the governor of Kharkiv's northeastern region, over two dozen people have been injured in missile, drone and bomb attacks during the past 24 hours. Kharkiv mayor Ihor Terekhov stated that "the current series of strike has been the most intense and heavy since the start the war, if not since the beginning the year."
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Trump: US can control Strait of Hormuz in more time
On Friday, President Donald 'Trump said that the United States. The Strait of Hormuz can be opened 'with a little more time,' as pressure mounts on his administration to resolve a war with Iran quickly. Trump stated in a Truth Social post that "With just a little bit more time we could easily OPEN THE HORMUS STRAIT,?TAKE THE OIL& MAKE A FAVORITE." Nearly five weeks since it began with a U.S. and Israeli aerial assault, war in Iran continues to?spread chaos throughout the region,?roiling financial markets, thereby increasing the pressure on Trump for a swift resolution of the conflict. Iran has closed the Strait of Hormuz, a vital waterway that carries a 'fifth of all oil consumed in the world, as retaliation to U.S. and Israeli strikes that began in late February. As energy prices rise, governments all over the world have made reopening the Strait of Hormuz a priority. In his speech on Wednesday night, Trump reiterated 'his threats against Iran’s civilian power plants, and gave no timeline for ending hostilities. This prompted Iran to 'vow retaliation,' which subsequently lowered share prices. (Reporting from Ryan Patrick Jones and Nate Raymond, Boston; editing by Michelle Nichols).
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Moscow shoppers and travelers hit by payment system problems
The 'payment system' problem caused chaos for Russian shoppers on Friday, forcing the turnstiles of?the Moscow Metro?to let people enter without paying and even forcing visitors to a regional Zoo to pay in cash. It was not clear what caused the payment system problems, but shoppers and retailers reported that they had issues with Sberbank - the largest bank in the country - and payments using QR codes. The central bank did not respond to a comment request. Sberbank stated that the problems were resolved, but did not provide any details as to what caused them. Reporters said that shops and petrol stations asked customers to pay cash for an hour or so on Friday due to a 'problem with the payment system. ?TASS reported that the?Moscow Metro turnstiles allowed people to enter for free once. The card payment system at a zoo in Belgorod was down. Visitors were asked to pay cash. Moscow and the surrounding area has a total population of 22,000,000 people.
Consequences of the Panama court decision to quash CK Hutchison's port concessions
The Panama Supreme Court annulled CK Hutchison’s contract last week to operate two Panama Canal Ports. This was part of a deal worth $23 billion to sell all the global port assets owned by the Hong Kong-based conglomerate.
Court said that the contract of Panama?Ports Company, a subsidiary of CK Hutchison, violated Panama’s constitution because it gave the company exclusive tax benefits and privileges.
What We Know:
CK 'Hutchison is controlled by Hong Kong’s richest man Li Ka -shing. In March last year, a deal was announced that covered 43 ports in '23 countries', 'including two near the Panama Canal', with a group headed by BlackRock, and Italian Gianluigi Aponte’s family-run MSC shipping company.
After Beijing condemned the deal, in July the conglomerate announced that it was in discussions to include a Chinese "major investor" as a strategic partner in the consortium.
Sources say that the Chinese investor was COSCO. It wanted a majority stake while others preferred a minority shareholding. This became a sticking-point in the talks.
COSCO has not responded to a comment request.
CK Hutchison shares have fallen?more that 8% since the ruling of the court, but they are still at their highest level since June 2021. Investors believed that the sale would earn the company over $19 billion. It has risen by nearly 60%.
TENSION BETWEEN CHINA AND UNITED STATES This deal opened a brand new front of contention between the United States, and China as they fight for control over?the most important trade routes in the world. CK Hutchison’s Balboa & Cristobal Ports are considered strategic assets for the Panama Canal. This is the main seaborne trade route to the United States. Balboa lies at the Pacific entrance of the canal, while Cristobal is located?at its Atlantic entrance.
The canal is a vital link in the U.S. supply chain, as it accounts for more than 40% of container traffic valued at approximately $270 billion per year.
Donald Trump at first welcomed CK Hutchison’s proposed sale - to Blackrock and MSC - saying he wished to retake the strategic waterway.
CK Hutchison was deemed a security threat to canal operations by American legislators.
John Moolenaar of the U.S. House Select Committee on China called it a win for America.'
Beijing, in a sign of China’s discomfort, had stated that it would block the deal unless Chinese ownership is involved.
The Chinese Foreign Ministry announced on Friday that it will take "all necessary steps" to protect the rights and interests Chinese companies.
Hong Kong's Government said that it was strongly against?any foreign governments using "coercive means" to harm the business interests of the territory.
What's at Stake and what Comes Next:
Although the two ports only account for 5% of Hutchison Port Holdings earnings before interest tax, depreciation, and amortization (EBITA), they are strategically important.
PPC stated that it reserves the right to initiate?national and internationally legal proceedings following the court ruling. Analysts said the port company can seek clarifications which could slow termination.
Although it is not clear how the loss of Panama's ports will impact CK Hutchison’s global ports deal. Some analysts, such as JPMorgan and Citigroup said that parties would find it easier to reach an agreement if Panama was removed from the equation.
A person with direct knowledge about the transaction who spoke under the condition of anonymity said that all parties were still in 'talks' on the sale of CK Hutchison ports.
Ports in Rotterdam, the Netherlands, Barcelona, Spain, Mexico, and the Bahamas are also included in the sale of strategic assets.
CK Hutchison’s China ports are important, but they are not included in the sale.
Another source familiar with the situation said that one option being discussed is to break up the portfolio so the three bidders can have stakes in separate ports.
CK Hutchison MSC and Blackrock have not responded to comment requests.
According to sources, it may take two years or more to overcome all regulatory obstacles. This is because of the many challenges involved. For example, obtaining approval from anti-competition authorities in over 50 jurisdictions. Reporting by Clare Jim in Hong Kong and Kane Wu, Scott Murdoch at Sydney; Editing done by Anne Marie Roantree & Clarence Fernandez
(source: Reuters)