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Cubans switch to electric cars as US tightens blockade on oil
As the island faces its worst fuel shortage in years, the rumble from 1959 Chevrolets is now fading to the near silence of the electric vehicles. Cuban roads have remained largely unchanged for the past six decades. They are characterized by vintage cars in vibrant colors. In recent years, Cubans have increasingly adopted electric cars as fuel has become more scarce. They are now helping the population deal with a worsening energy crisis after the U.S. halted oil exports from Venezuela, a communist-run ally, and threatened to penalize countries that exported fuel to the island. The administration of U.S. president Donald Trump has declared Cuba to be "an extraordinary and unusual threat" to U.S. security. Eugenio gainza, a state-run tricycle rickshaw style, weaves his way through the rough roads of the Alamar neighborhood, on the outer outskirts of Havana. He picks up passengers. He says, "We do 16 trips per day." There is no fuel. "This is the only way to transport this area." Residents like Maria Caridad Gonzalez find these state-run cars a lifeline in an economy that is rationed. She said that private services are also available, but they're more expensive. Last week, the Government detailed a comprehensive?plan for rationing fuel and protecting essential services. Resident?Barbaro Casneda stated that the switch to renewable energy is the only thing that keeps?the island mobile. He said that "together, this is what is helping to move the country forward." "If we didn't, we'd be paralyzed."
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AI is a threat to U.S. industries, from software to real estate
Wall Street is 'in the grip of AI disruption fears. Investors began by selling shares in software companies, but quickly spread to other sectors that were seen as susceptible to automation. This led to sharp losses this week for U.S. stock prices. AI-related scare tactics have affected even industries such as legal services, private credit, data analytics and insurance. Anthropic's legal AI plug in caused a drop in global?tech stocks. Investor unease grew after a series of AI model updates and new releases. Emmanual Cau, equity strategist at Barclays, said that fear is driving the market's sentiment. Investors are still in a'sell-first, think-later' mode and asking "who's next" while showing no mercy to anything even remotely perceived as an AI loser. Take a look at the impact of the selloff on different sectors: SOFTWARE AND SOFTWARE EXPOSED LOANS Since its peak in October, the S&P 500 Software & Services Index has lost approximately $2 trillion in value. The S&P 500 Software & Services index has lost about $2 trillion in value since its peak in October. Atlassian, Intuit, and Workday are among the Nasdaq's 100 worst performers so far this year. Atlassian is down 47%; Intuit, 40%; and Workday has lost one-third of its value. In 2026, Salesforce will have fallen about 30% while Adobe and CrowdStrike are down by 25% each. Robert Pavlik is a senior portfolio manager with Dakota Wealth, based in Fairfield,?Connecticut. He said that there's a notion that?AI will replace existing models within the next few years - models which have been in use for many, many years, and models from which businesses have reaped significant profits. Alternative asset managers also saw their shares fall on the back of concerns about their exposure to loans or leverage related to these companies. Ares, Blackstone, Blue Owl, Apollo. TPG and KKR all fell between 13% to?24% in this year. BNP Paribas estimates that about a fifth (25%) of private credit is exposed to software. FINANCIAL BROKERAGE & DATA ANALYTICS & LEGAL SERIES The financial sector, in particular?brokers and data analytics firms were hammered when wealth management?firm Altruist launched AI-enabled features for tax planning, stoking concerns that the rapidly-advancing technology would upend their business models. On Tuesday, shares of LPL Financial (broker), Raymond James Financial (financial advisor) and Charles Schwab (stock broker) fell by more than 7%. S&P Global's index provider, who issued a gloomy earnings forecast for 2026 has fallen more than 25% since February. It is on track to have its worst month ever. Moody's, Factset Research, and MSCI all fell this month. REAL ESTATE SERVICES KBW analysts say that investors have been moving away from labor-intensive, high-fee business models that are viewed as vulnerable to AI-driven disruption. CBRE Group, Jones Lang LaSalle and Cushman & Wakefield all fell by about 12% on Wednesday. Cushman & Wakefield dropped nearly 14%. CoStar Group, which owns Apartments.com, Homes.com and other websites, dropped 5.9%. Morningstar analyst Sean Sunlop stated that "we view market concerns as being overstated" due to the fragmented end markets for CRE and the non-core nature of many clients' real estate activities. He also noted that their valuations are "not cheap", despite the recent selloff. INSURANCE Insurance shares took a big hit. Brokers and Underwriters on both sides of the Atlantic plunged when online platform Insurify launched a ChatGPT AI-powered tool that allows users to compare auto insurance rates. S&P 500 Insurance Index dropped 3.9% on Sunday, its largest single-day decline since mid-October. Willis Towers Watson shares have fallen 15% this week, and are on track for their worst week since March 2020's pandemic selloff. Aon dropped 9%, and Arthur J. Gallagher fell 15% this week. "Ultimately, brokers will split," we believe. Bob Jian Huang, Morgan Stanley's equity strategist, said that AI could have a significant impact on simpler insurance products such as term life, auto and home. In our opinion, higher-valued agents will use AI to improve analysis and underwriting. They won't be displaced by AI. TRUCKING AND LOGISTICS The sector fell'sharply' on Thursday, despite the fact that traders probably didn't see logistics and trucking firms as AI targets. Algorhythm Holdings is a logistics company that focuses on AI. It previously sold karaoke-machines. The firm's SemiCab unit increased customers' freight volume by 300% to $400%, "without an increase in operational staff". Stocks such as Landstar System, C.H. Robinson. The Dow Jones Transportation Average dropped 4.4%. Analysts at Jefferies, however, stated that the reaction was not based on fundamentals. They said that "proprietary freight data and physical network remain durable moats."
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Dubai's DP World chief removed from position after pressure on Epstein
Dubai port giant, DP World, announced on Friday that its Chairman and Chief Executive Sultan Ahmed Bin Sulayem resigned. This announcement followed increasing pressure due to his alleged links with Jeffrey Epstein. Bin Sulayem is one of the most prominent businessmen in the Middle East. He has been removed from his senior positions following the recent Epstein files release. Dubai's ruler also issued on Friday a decree that appointed a new chairman of Dubai's Ports, Customs and Free Zone Corporation, which was one of the many roles Bin Sulayem previously held. Members of Congress in the United States said Bin Sulayem’s name appeared on documents published by U.S. Department of Justice. This prompted renewed questions about his past interactions Epstein, who was a convicted sexual offender. The allegations contained in the files could not be independently verified. MOUNTING PRESSURE The pressure was building?on DP World, an Emirati logistics company, after two organizations, the UK Development Finance Agency and Canada's second largest pension fund, announced this week that they would suspend any new investments with DP World due to Bin Sulayem’s alleged Epstein ties. British International Investment, the UK's agency for British International Investment, said that it welcomed DP World’s decision on Friday and looked forward to "continuing our partnership to advance development of key African trade ports". In a press release, La Caisse Canada said that the company had taken "the appropriate measures". It stated that it would "move swiftly to work with DP World’s new leadership in order to continue our partnership for port projects around the globe". Dubai Media Office had reported that DP World has appointed Essa Kasim as 'chairperson of its board of director and Yuvraj Naira as the group chief executive officer. Kazim is currently the governor of the Dubai Financial Centre International, while Narayan has served in several senior positions in the company, including as the deputy CEO. GLOBAL FALLOUT OF EPSTEIN FILES Bin Sulayem's resignation follows that of many other notable figures in the world of business and politics who have left their top positions as the fallout of the files continues to grow. The Financial Times reported that Goldman Sachs' general counsel Kathy Ruemmler will be resigning this summer due to the ties. At least three members from Keir Starmer’s government in Britain resigned after Peter Mandelson was appointed ambassador to the U.S. The Epstein files are among the?millions of documents published by U.S. Department of Justice. They suggest that Bin Sulayem and Epstein had a close relationship for over a decade following Epstein's 2008 conviction on charges of prostitution involving a minor. These documents contain emails and texts that seem to show conversations between Epstein and Bin Sulayem regarding business, sex, and plans to visit Epstein’s Caribbean island. Documents reveal the web of connections that the disgraced financier had with prominent people in finance, politics, academia, and business. The fact that you are named in these files does not mean that you have committed a crime. In August 2019, Epstein's body was discovered in a New York prison cell, where he had been held for sex trafficking charges. It was determined that his death was caused by suicide. DUBAI BUSINESS HUB - PROMINENT FIGURE Bin Sulayem was a prominent figure both in Dubai and throughout the Middle East. He is credited with helping the emirate become a regional business and tourism centre. His ventures include establishing Nakheel - the real estate developer responsible for Dubai's palm-shaped islands - as well as contributing towards the creation of commodities exchange DMCC. He is a frequent speaker at global business events such as the World Economic 'Forum.' Most notably, he oversaw DP World’s transformation 'into one of world's biggest port and logistics operators. The company claims to handle around 10% of the global container traffic, with operations in countries such as Canada, Peru and India. DP World sponsors a professional golf tour and is a partner of McLaren Formula 1 since 2023. (Reporting and editing by Kevin Liffey and William Maclean; Additional reporting and editing by Sam Tabahriti, Nivedita Balu and Federico Maccioni)
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UK Development Investment Agency to Resume Joint Investments with DP World
British International Investment, the UK's development investment agency, welcomed DP World’s new chief executive on?Friday and said it would resume investments with the Dubai-based port operator. A spokesperson for BII stated, "We are pleased with today's DP 'World decision and look forward to advancing our 'partnership' to develop key African trading 'ports in order to unlock the 'continent's global 'trading potential." BII stopped new investments with DP World earlier this week due to alleged ties between Jeffrey Epstein and former Chief Executive Sultan bin Sulayem. La Caisse, Canada's second largest pension fund which halted new investments with DP World due to the allegations, said on Friday that it would "move swiftly" to continue their partnership with Yuvraj narayan, DP World's newest CEO, in port projects around the world. (Reporting and editing by William James; Sam Tabahriti)
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Air Canada reports a surge in overseas business travel after U.S. Trade Tensions
Air Canada is seeing a 30% increase in corporate travel as it seeks to diversify its trade away from the United States. This has fueled demand for international 'travel', according to a company executive. Analysts reported that "we're seeing a lot of growth in corporate demand on the North Atlantic. We are seeing almost a 30 percent increase in corporate traffic to Europe and the Pacific, and we attribute a part of that to Canada being able to diversify trade routes." Canada's largest airline, in its results announcement for the fourth quarter of 2018, forecast a core profit slightly above Wall Street expectations by 2026, betting on a strong demand on international routes outside of the U.S., and an increase in premium travel. Canadian officials are working to create a new global trade order by working closely with China and signing smaller trade agreements, but the country is still constrained by its economic dependence on the United States. CANADIANS VOIDING TRAVEL IN THE US Air Canada, based in Montreal, expects to have higher revenues by 2026 due to the addition of seats and the surging demand for premium travel. However, it faces costs pressures as a result of labor agreements reached with unions. According to the carrier, premium travel accounts for approximately 30% of its total revenue. The carrier said that strong premium cabin demand, and long-haul bookings, helped offset the softness in U.S. to Canada routes due to trade tensions between the two countries. U.S. Airlines have also identified premium travel as an area of revenue growth. Canadians are choosing to avoid traveling to the United States and instead book?holidays in international destinations such as Europe and Latin America. Air Canada does not expect much change in the market conditions for transborder travel. The carrier expects that its available seat mile?capacity - a key measure for passenger carrying capacity - will rise between 3.5% to 5.5% by 2026.
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Analysts say that PJM's plan could speed up data center power deals
Analysts said that a plan by PJM Interconnection - the largest power grid operator of the U.S. - to manage the?burgeoning demand for power from data centers may accelerate the deal-making process between data-center operators and independent?power providers. The plan released last month outlines a framework in which large power users could either?bring their own generation to the grid or operate within a "connect and manage" framework, that would allow them to reduce their energy usage before other emergency measures are taken when the system becomes overloaded. The proposal would also expedite a backstop capacity auction in order to prevent shortages throughout PJM’s footprint. While parts of the proposal will need regulatory approval, analysts said the "bring-your-own-generation" element could particularly boost deals between data-center owners and power producers. James West, Melius Research's managing director, said: "I expect to see a flurry major data center/power deals announced in the coming months by independent power producers and data center owners, as well as big tech companies." The Power to Demand New Records PJM has made its proposal as the U.S. demand for electricity continues to rise. According to the Energy Information Administration’s January outlook, power consumption will rise again in 2026 and 2027 after reaching a record for a second consecutive year in 2025. This is due in part to rapid growth of artificial intelligence. This surge in demand has already forced data-center operators into securing long-term power supplies. Talen Energy and Amazon Web Services expanded their partnership last year to provide data centers up to 1,920 Megawatts of nuclear power. Constellation Energy also struck a deal with Meta Platforms for the operation of one of its reactors for another 20 years. Anthropic, Microsoft and others have announced initiatives to reduce the impact of data centres on consumer electricity prices. PJM announced last month that it had started discussions about creating a backstop to help meet the growing demand for power in its area. President Donald Trump's administration has separately asked the grid operator for an emergency auction to boost supply. Analysts say the possibility of being dragged into the proposed backstop system gives data centers an increased incentive to seek?bilateral agreements with power producers. Andrew Rocco is a stock strategist with Zacks Investment Research. He said that data centers without their own energy may still end up paying to generate new?energy. He added that the "pay-or play" dynamic made direct deals with IPPs attractive and hedgeable than exposures to volatile PJM capacities prices. Several analysts expect the proposal to also spur consolidation in power sector as smaller developers might lack the capital required to?navigate PJM’s potential new requirements. Rocco stated that "we expect larger IPPs like Vistra, Constellation, or Talen to acquire smaller developers in order to create "mega sites" that package land and power, as well as fiber." Constellation Energy refused to comment while Vistra, Talen Energy and Talen Energy didn't respond to comments. Analysts warned, however, of potential obstacles to implementing the plan, such as state level approvals and challenges with permits. Rick Pederson is the chief strategy officer of Bow River Capital. He said that a "flurry" of deals will be limited by obstacles in getting IPP infrastructure approved and operational, as well as a queue for interconnects. Reporting by Kavya Baliaraman and Sumit Saha, editing by Nathan Crooks & Saumyadeb Chkrabarty
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India fines Air India $101,350 for Airbus incident. The country says the lapse in public confidence eroded trust.
A confidential order shows that India's civil aviation watchdog fined Air India $103,350 for flying an Airbus plane without a permit eight times. The watchdog said the lapse had further eroded public confidence in 'the country's second-largest airline'. On November 24 and 25, an Airbus A320 carried passengers from New Delhi to Bengaluru, Mumbai, and Hyderabad without the mandatory Airworthiness Review Certificate (ARC), a permit issued by the regulator annually after a plane passes safety and compliance tests. Air India's internal investigation, which was?reported on in December, revealed "systemic failings" with the airline. It also acknowledged that there was a?urgent requirement to improve compliance culture within the carrier. In a confidential penalty order, Indian authorities issued on February 5,?to Air India's CEO Campbell Wilson. The order stated that the incident "further undermined the?public trust and adversely affected the safety compliance of this organisation." Maneesh Kumra, Joint Director General for Civil Aviation, wrote that Wilson was to blame in his order. In a press release, Air India acknowledged that it was bound by the regulatory order regarding?the incident which it reported voluntarily to authorities last year. It said that "all identified gaps have been satisfactorily resolved and shared with the authority." The airline was asked to pay the fine within 30 days. Air India's worst disaster occurred in June of last year when a Boeing Dreamliner crash-landed moments after takeoff, killing 260 passengers. Air India's investigation into the Airbus incident blames pilots as well, saying that those who flew eight flights didn't comply with standard operating procedure?before takeoff, according to reports. The watchdog has also issued warnings to Air 'India, owned by the?Indian Tata Group and Singapore Airlines for operating planes without checking emergency gear as well as other audit failures.
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Bpost avoids fine in Belgian newspaper distribution procurement case
Belgian postal operator Bpost, publishers DPG Media, Mediahuis and distributor PPP were 'held liable' for rigging public procurements for newspaper distribution, said the Belgian Competition Watchdog on Friday. Bpost, who had notified the authorities following an internal audit in 2022 that revealed signs of malpractice, would receive full immunity from any fines as part of a leniency program, said the regulator. The investigation cost Dirk Tirez, the then-CEO of the postal group, his job. In a press release, the regulator stated that the common goal of the companies was to make sure that bpost would receive the newspaper distribution concession for 2023-2027. "Together they agreed that PPP, bpost's main competitor, would not make an offer. This left bpost the sole bidder." Mediahuis and DPG Media, who together control the most widely circulated newspapers in the Benelux region, received fines of 7.79?million euro ($9.36m) and 3.79m euros respectively. These fines were reduced as part of the same leniency program. Bpost stated in an email that the findings of the watchdog were aligned with their own internal review for 2022. The company said that it has since implemented corrective measures, and strengthened its compliance procedures. DPG Media has said it accepted the decision, and that they have strengthened their internal procedures. They also introduced new training programs to avoid any repeat issues. PPP stated that it had reached a settlement with the Competition Authority and welcomed the elimination of the concession. It argued this would allow for "fair and competitive markets". Mediahuis stated in a press release that they had "made a judicial mistake and accepted their responsibility." After the investigation the Belgian government?abandoned the concession, forcing the companies to negotiate separately with PPP and bpost. Damien Gerard, prosecutor general in Belgium, said that the increase in the cost of distribution services had a huge impact on the profitability and viability of the printed press.
Slovakia reports Druzhba oil supply interruption, but expects it to resume soon
The 'Slovak Economy Ministry' said that the Druzhba oil pipeline has been interrupted in Slovakia. However, it expects the flow to resume within the next few days.
The Ministry said that the interruption would not have any impact on Slovakia's energy supply and did not provide further details about the duration of the suspension.
The Ukrainian foreign ministry announced on Thursday that the Russian oil transit via the Ukrainian portion of the Druzhba pipeline to Eastern Europe has been suspended since January 27 due to an attack by Russia.
The suspension affects Hungary as well, since MOL's oil and gas group operates refineries both in Hungary and Slovakia. Slovnaft, the Slovak refiner, could not be immediately reached for comment.
UKRAINE? Accused of holding up flow
Both Hungary and Slovakia still rely on Russian energy supplies. They have fought European Union attempts to stop these flows and deny Moscow the oil and gas revenues it needs to fund its war in Ukraine.
Hungarian Foreign minister Peter Szijjarto accused Ukraine on Friday of blocking the resumption flows.
"President Zelenskiy decided to continue to not permit the resumption crude oil deliveries into Hungary via the Druzhba pipe, even though it is technically capable of doing so," he stated on Facebook.
Ukraine has lost nearly?all its thermal power stations due to Russian attacks. Energy restrictions are now in place for the entire country.
The Kremlin declined to comment Friday on the Ukrainian claim that Russia struck the Soviet-built Druzhba pipeline and stopped oil flows?to Eastern Europe.
Dmitry Peskov, Kremlin spokesperson, told reporters that he did not have precise information on the issue. He referred a reporter's question to Russia’s Energy Ministry. Reporting by Jason Hovet and Anita Komuves, Budapest; editing by David Holmes
(source: Reuters)