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Airline share prices rebound after a resumption of Middle East flights
Airline shares recovered on 'Thursday, as more flights left the Middle East. This provided some respite for carriers who had lost billions in value due to the U.S. and Israeli strikes against Iran earlier in the week. The government has been scrambling for flights out of the Middle East to accommodate tens and thousands of citizens who have been stranded due to the U.S.-Israeli conflict against Iran. This conflict has caused the closure of most of the airspace in the region because of the threat of missiles striking passenger planes. Dubai, the busiest airport in the world, handles over 1,000 flights per day. Its closure has disrupted travel and caused ticket prices to soar on popular routes, such as Australia-Europe. Emirates and Etihad Airways now operate a limited number services?from Dubai and Abu Dhabi via the safe air corridors of the United Arab Emirates, while Qatar Airways flight from Doha remains completely halted. Flightradar24 reports that as of Thursday morning's early hours, Emirates flights have left Dubai for destinations such as Sydney, Amsterdam and Mumbai. However, the majority of these services remain cancelled. The Australian government announced that three commercial flights are scheduled to depart from the United Arab Emirates and arrive in Australia on Thursday. This follows the arrival of 200 Australians on a flight by Emirates from Dubai on Wednesday evening, where there were emotional scenes at the arrival gates, as families embraced their returning travellers. The?U.S. State Department said that a U.S. charter flight brought Americans from the Middle East to the United States, and other flights were being arranged for various locations in the region. State Department announced. Canada has said that it is working on repatriating stranded Canadians by organizing seats on commercial flights, and hiring charter flights. Air India announced that it would be flying a Boeing 787 with more capacity on Thursday to bring back passengers who were stranded on the Mumbai-Dubai Delhi route. ASIAN AIRLINE SHARE REBOUND After a double-digit drop in recent days, many Asian airline stocks have recovered amid concern over the length of the conflict and the impact on oil prices. Kenny Ng is a securities analyst at China Everbright Securities International. He said: "I consider this recovery to be short-term and its sustainability will depend on the current situation in the Iranian Conflict." The New York Times, citing briefed officials, reported that operatives of Iran's Ministry of Intelligence had expressed an openness to U.S. Central Intelligence Agency?to talk about ending the war. Shares of Hong Kong's Cathay Pacific Airways grew by 4.2%. Qantas Airways jumped more than 1%, and Korean Air Lines rose more than 5.0%. Air China, China Eastern Airlines, and China Southern Airlines all fell between 1%-?3% on the Hong Kong and Shanghai market, stabilising from steeper drops earlier in the week. Asian airlines are very sensitive to Iran because of the exposure they have through energy and routes, both in terms of revenue and cost. Gary Ng is a senior economist with Natixis. He said that any news about reducing the length of the war could easily change sentiment. Airspace is so constrained that airlines have to make reroutes, carry more fuel, or stop for refueling to avoid sudden divergence or long flight paths along safer corridors. Some expatriates and marooned tourists have tried to escape the Middle East via Saudi Arabia or Oman where the airspace is still open.
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US lawmakers express concern about Intel's testing tools from a China-linked firm
As reported first by. ACM Research is a California-based producer of chipmaking equipment that has deep roots in China and two overseas units which were sanctioned by the U.S. ACM Research's customers include Chinese companies sanctioned by the U.S. such as YMTC, SMIC and YMTC. This raises questions about whether ACM can pass sensitive Intel information to Chinese clients. The lawmakers wrote to Intel CEO Lip Bu Tan on Wednesday that "by operating in Intel's facility, ACM can gain exposure to cutting edge chipmaking processes which may materially improve quality and competitiveness for?ACM as well as Chinese military companies." Intel stated in a statement that "ACM Tools are not used in Intel’s semiconductor production processes." The company also said that it fully complies to U.S. laws, regulations and works regularly with the U.S. Government on security issues. ACM didn't immediately respond to the request for comment on this story. The company had previously said that it couldn't comment on "specific engagements" with customers, but it revealed the shipment of three tools to a major U.S. semiconductor manufacturer. These are currently being tested and many have already met performance standards. ACM has previously stated that it does pose a threat to national security, noting that the U.S. unit sanctioned in Shanghai is "bifurcated" and "isolated" from its U.S. operation. It also added that U.S. clients are directly supported by U.S. personnel with robust safeguards protecting customer trade secrets. The Chinese Embassy at Washington has not responded to a comment request immediately. The letter is also signed by Democrats Elissa slotkin and Andy Kim, as well as Republicans Jim Banks, Pete Ricketts. It shows a bipartisan concern over China's increasing role in the?U.S. The semiconductor industry. The House Selection Committee on China stated in October that it had "reviewed reports with concern?that ACM Research...?has sold (semiconductor production equipment) to a U.S. semiconductor manufacturer who also formally certified ACM Research tools for use on its production line." On?Wednesday, the lawmakers noted that Intel faces special responsibilities because of its U.S. Government stake. Intel had resisted calls from President Donald Trump for his CEO to resign in August due to his alleged ties with China. They wrote: "This raises important questions about Intel’s fiduciary responsibilities and?approach towards safeguarding the public interests, including how?the company benefits American taxpayers and economic interests," They added that "Intel’s involvement with Chinese companies on the blacklist calls into question if taxpayer dollars are subsidizing activity which could directly threaten U.S. National Security and leadership in semiconductor manufacture." (Reporting and editing by Diane Craft, Thomas Derpinghaus and Alexandra Alper)
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UKMTO: Crew safe after explosion reported near Kuwait
The United Kingdom Maritime Trade Operations said that a tanker anchored off Kuwait saw a large explosion on its port side and was taking in water. UKMTO reported that the master saw a'small craft' leaving the area after the explosion, which took place 30 nautical miles (56 km) southeast of Kuwait Mubarak al Kabeer Port in the Gulf. In an advisory note, it stated that "there is oil in the water from a cargo tank, which could have some impact on the environment, the vessel has taken in water, no fires were reported, and the crew was'safe. Kuwait's interior ministry stated in a statement issued later that the incident occurred outside of Kuwait's territorial water, at least 60 kilometers (37 miles) from Mubarak Al Kabeer port.
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UKMTO: Crew safe after explosion reported near Kuwait
The United Kingdom Maritime Trade Operations said that a?tanker anchored off?Kuwait saw?a 'large explosion?" on its port side, and was taking in water. UKMTO reported that the master saw a small boat leave the area after the explosion. The explosion occurred in the Gulf 30 nautical miles (56 kilometers) south of Kuwait's Mubarak al Kabeer port. In an advisory note, it stated that "there is oil in the water from a cargo tank, which could have an environmental impact. The vessel has taken water on board, but there are no reported fires and the crew members are safe." Kuwait's interior ministry stated in a statement later that the incident occurred outside of Kuwait's territorial water, at least 60 kilometers (37 miles) from Mubarak Al Kabeer port.
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Bloomberg News reports that NASA will be contacting ULA to obtain critical hardware for the moon rocket.
Bloomberg 'News' reported Wednesday that NASA intends to choose?United Launch Alliance as a supplier of a critical component for future missions?of its moon rocket. According to the report, this could be done in order to replace Boeing-built equipment that NASA's Inspector General has estimated will cost $2.8 billion by 2028. Bloomberg reported that NASA plans to use the upper part of the Vulcan rocket from ULA, also known as Centaur V rocket, for its fourth Space Launch System rocket flight when it aims to send people to the moon for the first time since more than 50 years. ULA is a joint venture of Boeing and Lockheed Martin. NASA, Boeing, and Lockheed Martin didn't immediately respond to requests for comments, while ULA directed NASA to comment. NASA has added a spacecraft docking test last month to its Artemis Moon Programme before it attempts its first crewed lunar landing. This is part of a major overhauling of the U.S. effort on the moon, amid increasing delays and 'competitive pressure' from China. The agency has also abandoned efforts to upgrade its SLS rocket. Instead, it will 'focus on increasing the rocket's flight rate and production, which has fallen behind that of newer launch systems. The decision affects the roughly $2 billion contract that Boeing has with the United States to build a stronger?SLS upperstage, which is no longer in development. Reporting by Rhea Abraham in Bengaluru, editing by Sumana Niandy and Sherry Phillips
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US lawmakers express concern over Intel's testing on tools made by a Chinese-linked firm
A group of bipartisan U.S. legislators led by Democratic Senator Elizabeth Warren and Republican Tom Cotton raised concerns on Wednesday about national security issues regarding?Intel?s testing of ACM Research's chipmaking tools, which was first reported by?. ACM Research is a Fremont-based manufacturer of chipmaking equipment. It has deep roots in China, and two overseas units were sanctioned by the United States. ACM Research's customers include Chinese companies like YMTC CXMT SMIC that are sanctioned. This raises questions about whether ACM can pass sensitive Intel information to Chinese clients. The lawmakers wrote to Intel CEO Lip-Bu Tan on Wednesday that "by operating in Intel's facility, ACM can gain exposure to cutting edge chipmaking processes which?may improve the quality and competetiveness of ACM as well as Chinese military companies." Intel stated in a press release that "ACM Tools are not used by Intel's semiconductor production processes." The company also said that it fully complies to U.S. laws, regulations and regularly engages with the U.S. Government on security issues. ACM didn't immediately respond to the request for comment on this story. The company had previously stated that it could not comment on "specific customer engagements" but confirms that "ACMR’s U.S. Team has sold and delivered numerous tools from our Asian Operations to domestic customers." The company also revealed that it had shipped three tools from its Asian operations to a major U.S. semiconductor manufacturer. These are currently being tested, and some of them have already met performance standards. The letter is also signed by Democrats Elissa slotkin and Andy Kim, as well as Republicans Jim Banks and Pete Ricketts. It shows a bipartisan concern over China's increasing role in U.S. Semiconductor Manufacturing. The House Selection Committee on China stated in October that it had "reviewed reports with concern" that ACM Research...has allegedly sold (semiconductor production equipment) to a U.S.-based semiconductor manufacturer who also officially certified ACM Research tools for use on its production line. The lawmakers noted on Wednesday that Intel, who resisted President Donald Trump's calls for the CEO to resign in August due to alleged ties with China, now faces unique responsibilities because the U.S. Government owns a stake. They wrote: "This raises serious questions about Intel's approach to protecting the public interest and its fiduciary responsibilities, as well as how it benefits American taxpayers and economic interests." They added: "Intel’s involvement with Chinese companies on the blacklist raises questions about whether taxpayer dollars subsidise activities that may directly threaten U.S. security and leadership in semiconductor production." (Reporting and editing by Diane Craft; Alexandra Alper)
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Canada is working to repatriate over 2,000 Middle East citizens
Canada's Foreign Affairs Minister said that the government was working to repatriate citizens stranded in the Middle East. This includes arranging seats on commercial flights, negotiating charter flights, and providing ground transportation to neighbouring countries. Anita Anand, Canada's Foreign Minister, said that more than 2,000 Canadians had requested the government of Canada to help them leave the region after the U.S. attacked Iran. Around half came from Canadians living in the United Arab Emirates. Another 237 inquiries were from Canadians residing in Qatar. Anand stated that she had instructed her office to?enter into contracts for charter flights to leave the United Arab Emirates within the next few days, subject to approval by the UAE government. Anand stated that the government had secured 75 seats for a flight departing Beirut on a Wednesday. In the days to come, more seats will be offered to people who wish to leave Lebanon. She said that 200 Canadians were bussed to Saudi Arabia from Qatar with tickets for flights. The government is also "engaging ground transportation" to help other Canadians leave Qatar. She said that officials are informing Canadians living in Israel of a bus service operated by the Israeli Government to Egypt, where passengers will be transported to airports open in Egypt. Major Gulf hubs, including Dubai, the busiest international airport in the world, were largely closed for the fifth straight day on Wednesday. This was the worst travel disruption since COVID. The United Arab Emirates opened safe air corridors for some citizens to return to their home. Under normal circumstances thousands of commercial flights would leave the?region every day. "I would like to directly address Canadians living in the Middle East, the Gulf and the Gulf Region. Your government is behind you. Anand said at a press conference that the government was working hard for you and arranging for you to leave. Anand explained that Canada is unable to arrange ground transportation to and from Iran due to the lack of diplomatic representation there. However, it has sent officials to border crossings in order to assist Canadians who cross the border with visas, as well as their onward travel. Canada issued travel advisories to Canadians urging them to avoid travel to Bahrain and Iran, Iraq, Israel, Palestine, Kuwait and Lebanon, Qatar and Syria, United Arab Emirates, Yemen and avoid travel to Jordan, Oman, and Saudi Arabia that is not essential. (Reporting and editing by Chris Reese in Toronto, with Ryan Patrick Jones reporting from Toronto)
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Marsh, an insurance broker, meets with US officials to discuss restoring Gulf maritime commerce amid the Iran War
Insurance broker Marsh announced on Wednesday that it met with U.S. officials in order to discuss solutions for restoring the maritime trade amid the escalating conflict in 'the Middle East. This waterway is a crucial chokepoint between Iran & Oman and transports about a fifth (or a fifth of the global trade in crude oil & liquefied gas). The shipping through the Strait has been slowed down significantly after Iranian attacks on commercial vessels. This raises concerns about a prolonged disruption of global energy supplies. Marsh, who helped establish an international insurance facility for Ukrainian commerce in 2023, welcomed a directive issued by the U.S. International Development Finance Corporation, to provide financial guarantees and political risk insurance for maritime trade in the Gulf. Bloomberg News reported that Aon, an insurance broker, is in discussions with the U.S. Government about a plan for insuring?tankers traversing the Strait. Aon has not responded to the request for comment about the report. Although the U.S. did not declare war on Iran in a formal declaration, military tensions between the two countries have increased. Donald Trump stated on Tuesday that the U.S. Navy would be able to escort?oil tanks through the Strait of Hormuz, if needed. He also said he had instructed the DFC mobilize support for the affected trade. The move is one of the most aggressive measures taken by the administration to 'contain rising energy prices' amid the conflict in the Gulf which has increased risks for shipping along key waterways. Iran has long threatened to close the Strait of Hormuz in response to perceived "hostilities". Although it hasn't completely blocked the waterway yet, drones and missiles have been used to attack shipping. This has prompted insurance companies to re-evaluate risk. According to Gallagher, marine insurers on the 'London market' continue to provide a?war-risk coverage for vessels transiting this region. However, premiums are rising, and rates vary by vessel type, cargo and route. (Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid)
Bombardier wins $1.18 billion order for business jets from Vista Global
Bombardier Canada announced on Wednesday that Dubai's Vista Global, a?private jet provider based in Dubai, has placed an order for 40 Challenger 3500 business jets worth $1.18 billion.
Bombardier stated that the order includes a?option for an additional 120 aircraft, which would bring a total value of 160 planes to approximately $4.72 billion.
The deal is part of a sustained 'demand for private flying', which has swollen the?order books of business jet manufacturers.
The Challenger 3500, an upscaled version of Bombardier's Challenger 350 Business Jet that seats up to ten passengers, is a variant of the Challenger 350.
Bombardier is considering increasing production of private aircraft after reporting a 11% increase in revenue for the third quarter in November last year. The demand for jet aftermarket services is also increasing, which has led to an expansion of service in the U.S.
Shares of the Montreal-based firm have increased by?over 211% over the past year.
Bombardier was recently criticized by Donald Trump for threatening to decertify their business jets. This is due to Ottawa's long-term?certification? of jets manufactured by U.S. competitor Gulfstream.
The dispute appears to be over, as the head of U.S. Federal Aviation Administration said on Tuesday that he expected Canada to certify a few Gulfstream business 'jets which had been delayed by years. Reporting by Devika nair in Bengaluru, and Dan Catchpole from Seattle. Editing by Mrigank dhaniwala.
(source: Reuters)