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Wall Street Journal, May 15,
These are the most popular stories in the Wall Street Journal. The?Wall Street Journal has not verified the accuracy of these stories. The automaker announced on Friday that it had signed a deal with its long-time Chinese partner Dongfeng to produce Peugeot and Jeep vehicles in China, both for the Chinese market and export. AT&T, T-Mobile US and Verizon Communications have teamed up to improve coverage?and connectivity?in remote areas across the United States. Satellite operator Iridium Communications agreed to fully control the?Aireon Joint Venture,?bet it can grow this air data provider business into a larger one. Boeing and Toyota each donated $1 million to fund a reality television show featuring Transportation Secretary Sean Duffy?and his family on a trip. Luxury group LVMH agreed to sell fashion brand Marc Jacobs?to a 'joint venture' between brand manager WHP Global, and apparel company G-III Apparel Group. The joint venture will raise up to $850m to 'fund the deal. The Republican-led Senate Banking Committee advanced on Thursday a long-awaited bill that would 'create regulations for cryptocurrency - a landmark step for the legislation which had been bogged down in a dispute between banks and crypto companies.
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NEWSMAKER-Manchester's 'King of the North' Andy Burnham seeks UK conquest
The bright yellow buses that crisscross Greater Manchester are cheaper, more reliable, and now under the control of the public after decades of privatisation. This is exactly what Andy Burnham claims he can do for Britain. Burnham's Manchesterism is demonstrated in the Bee Network launched by 2023 to standardise tram and bus services, fares and schedules. Burnham, known, not in a serious way, as "King North", said he will seek to contest the parliamentary seat that becomes vacant following a colleague's resignation, possibly paving the path for him to challenge Keir starmer, the Prime Minister, for the leadership. Investors were concerned that Burnham’s “business-friendly socialism” would lead to increased borrowing and spending. Burnham, 56 years old, spent the past nine years as mayor of Greater Manchester in northern England, a city-region which competes with Birmingham to be Britain's second largest city. He gained a reputation as an outspoken opponent of London's dominance. Manchester's economy has grown faster than the nation's, despite new skyscrapers. He said that while he had made significant changes locally, he could not achieve much from the city hall. "Much larger change is required at a national scale if we are to make everyday life more affordable." It is for this reason that I am now asking the people to support my return to Parliament. BURNHAM ESPOUSES "MANCHESTERISM" Burnham's economic pitch relies on convincing bond investors who are sceptical that his plans will strengthen the public finances over the long term. His comment in the New Statesman of last year that Britain "had to get past this thing of being obligated to the bond market" was widely viewed as a mistake. Finance Minister Rachel Reeves took it up, stressing the importance of the bond markets. Burnham said in January that his remarks were misrepresented and he wasn't naive. He said that the "low-growth loop" was not working for investors and his approach would reduce the state's costs. In September, he told the Telegraph that he wanted to raise taxes on expensive homes and high earners. He also said a borrowing of 40 billion pounds ($54billion) would be used to build council housing and reduce income tax for lower earners. Burnham says that years of privatisation have led to an inefficient economy, and has stripped the government of its control over costs and services. Burnham cites the lack of social housing in the UK as an example, with the state having to pay large amounts of money for benefits that go to private landlords. He uses the same logic in utilities and transportation, arguing that investors can be convinced that regaining control of the state's costs base is safer than subsidising its consequences forever. Burnham said: "We have to create a new political system in the country, just as we did in Greater Manchester." "Support the long-term investment in housing, and other utilities, so that we can start to reduce our costs and help more people get back into work." Gordon Shannon, partner at TwentyFour Investments, which manages fixed income assets worth 23.5 billion pounds (32 billion dollars), estimated that a Burnham Economic Prospectus would require an additional 50 billion pounds of borrowing. Investors may find it difficult to accept this. LABOUR VETERAN DISGROUNDED WITH WESTMINSTER Burnham, born in suburban Liverpool, was raised in?Culcheth a village located between Liverpool and Manchester. Burnham dabbled in journalism before working for trade unions. He became a consultant to Tony Blair's Government in the late 90s. He was elected to the parliament in 2001 and rose through to ministerial positions, including Health Secretary under Gordon Brown. He left parliament in 2017 after unsuccessful attempts to win the Labour leadership in 2010, 2015 and saying that he was disillusioned by Westminster. He is now ranked among the most popular politicians in Britain. To return to Parliament, he will need to first be selected by Starmer's Labour Party. He then has to face off a likely challenge from Nigel Farage and Reform UK. Then he would be in a better position to compete with Starmer and bring his Manchester model to the national stage. ($1 = 0.7444 pound) (Editing done by Kate Holton & Ros Russell)
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Singapore Airlines adds more flights to its schedule as competitors reduce their services
Singapore Airlines executives announced on Friday that they will continue to increase their capacity, despite the fact that some of its largest rivals, such as Cathay Pacific and Qantas, have cut flights because of the soaring 'fuel prices' caused by Middle East conflict. In a briefing on its results, Singapore's national carrier highlighted its strong balance sheet, with S$7.9bn ($6.19bn) in cash, and the continued demand for their flights, especially as passengers continue to seek alternate hubs, to avoid transiting through the Gulf. Singapore Airlines' Chief Commercial Officer Lee Lik Hsin said to analysts and journalists that the airline is in a good position, where it doesn't have to reduce capacity. "I can't comment on the other airlines but our financial situation is strong and we are growing instead of cutting capacity," said Singapore Airlines Chief Commercial Officer Lee Lik Hsin to analysts and reporters. Last week, the airline announced that it would launch flights from its Singapore hub via Barcelona to Madrid, and increase frequencies to Manchester Milan Munich and London Gatwick during the second half of the year. Singapore Airlines, despite adding services, has cited narrowing margins. The group said that fare increases have not been sufficient to offset the increase in the price of jet fuel - the single largest expenditure item. Lee explained that they would have to "watch the market closely" to determine what price point customers were willing to pay. LOSSES AT AIR INDIA Singapore Airlines reported on Thursday a 57.4% drop in its full-year net profits to S$1.18 Billion due to the lack of an S$1.1 Billion one-time profit in the previous period from the integration with Air India of the Vistara joint-venture. Air India losses, where it holds a 25,1% stake along with majority shareholder Tata Group further compounded this decline. Singapore Airlines CEO Goh Choon Phong stated on Friday that the company's investment in Air India was a "long-term game" and that there is "no shortcut". Goh stated that a possible capital injection in Air India would be a matter that we will have to discuss with our fellow shareholders. DBS analyst Jason Sum stated that Air India will continue to drag down the bottom line of Singapore Airlines for the next two to three year as it implements its transformation plan. He added that a key part of the transformation plan is an order book for more than 500 new planes. This will require substantial external funding by Singapore Airlines given that Air India continues to make?losses. He said that SIA has one of the strongest financial balance sheets in the aviation industry. "They can certainly afford to take on additional debt to help Air India inject more 'capital as well," he stated,?although he noted that it was difficult to estimate how much capital might be needed. He said that Air India may also have to delay some aircraft deliveries. They should pace out the aircraft deliveries...at an accelerated tempo that's more manageable for them.
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Andy Home: The ROI-Sulfur squeeze puts more pressure on the Indonesian nickel industry
The nickel industry in Indonesia is being affected by the soaring sulfur prices due to the continuing closure of "the Strait of Hormuz". The Gulf is the main source of nickel for the world's biggest producer of battery metal. The sulfur squeeze is a new measure that the Indonesian government has introduced to try and control its nickel production. The explosive growth of the country's production will flood the global market, causing prices to plummet in 2024 and 2025. This month, the prospect of a lower Indonesian production and a corresponding change in market balance lifted London Metal Exchange nickel to its highest levels since two years. WAR AND POLITICS The Iran War has significantly reduced the flow of sulfur out of the Gulf. This accounts for about a quarter or the global supply. 75 % of Indonesia's sulfur imports come from the region. Sulfuric acid is produced from sulfur to be used by nickel processing plants that use high-pressure acid leach. The plants produce a mixed hydroxide precipitation, an intermediate product that is used in the battery industry. The HPAL plants in Indonesia are growing rapidly. The 450,000 metric ton output last year represented more than 10% of the global production. Macquarie Bank estimates that another 100,000 tons of capacity will be added this year. It was about time for it to fire up. HPAL operators have already been forced to reduce production due to the sulfur shortage. Zhejiang Huayou Cobalt halted the operation of half its capacity. Even existing operators struggle to maintain their run-rates, so it seems likely that the next wave will be put on ice. The sulfurous fallout from the war has exacerbated the effects of the tighter mine production quotas, and the changes in the government's nickel ore minimum selling price. Macquarie Bank says that the quotas for this year, which are between 260 and 270 millions tons, fall well short of the smelter's requirements. On paper, they're enough to eliminate any expected surplus. HPAL's new ore pricing formula will increase costs by more than $3,000 per ton. The bank estimates that break-even prices are now up to $18,000 per tonne, when combined with the rising sulfur price. TIPPING POINT Analysts are beginning to adjust their expectations about how much Indonesia will produce in this year, and what it means for pricing. Last month, the International Nickel Study Group predicted that after three years of massive surpluses in supply, there will be a global deficit by 2026. The 32,000-ton forecast shortfall is small compared to the 283,000-ton excess calculated last year. It is a significant revision to the Group's forecast in October of a large 261,000-ton excess. The Group reduced its demand growth forecast for 2026 from 6.2% to just 4.2%. Global production is forecast to shrink by 4.3%, as the growth of Indonesian output slows or even reverses. The forecasts released on April 22 do not explicitly mention the impact of a possible sulfur squeeze. Few expected the Strait of Hormuz would remain closed so long. RECOVERY Nickel prices are responding to a combination of rising costs, and possible reductions in production from?a country which accounts for 60% global supply. In December, the LME's three-month nickel price broke through its previous range of below $16,000 a ton as investors began to focus on Indonesia's planned reduction in production quotas. It is now at $19,000 per ton, up 14.5% from the beginning of 2026. Over the same period, investment funds have built up long positions. The collective bet is currently 35,750 contracts or 215,000 tons. This is still above the 2022 peak, but below the January peak. It is basically a wager that Indonesia will stop flooding the market. If it was a simple case of government policy that could be risky. The mining quotas will be reviewed at the mid-year and may increase significantly. Both the new ore price formula and the mining quotas are being criticized. Chinese operators who?dominate this sector' have complained formally to Jakarta and warned that future?investment was at risk. It is possible to tweak the policy further. Jakarta has no control over global sulfur availability. This is the biggest threat to nickel producers around the world. Andy Home is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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Finland declares that the threat of a drone attack on Helsinki airport has ended.
Finland said on Friday that suspected drone activity in the skies above the capital region of the country no longer posed any threat, and the situation had returned to normal. Yle, the public broadcaster, reported that earlier in response to this situation, the country's defense forces scrambled a?fighter plane and other emergency services. The danger is over. "People can?go?to work?and?school safely," Interior minister Mari Rantanen wrote in a social media post on the website X. A statement posted on the airport's website said that traffic at Helsinki Airport had also resumed after a suspension of three hours. Authorities are taking action. Defence Forces have improved their surveillance and response capabilities. In a statement made on X, Prime Minister Petteri Orpo said: "I urge everyone to follow the authorities' alerts." (Reporting and editing by Terje Solsvik, Jacqueline Wong Muralikumar Aantharaman Christian Schmollinger).
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Taiwan Coast Guard unveils the last of its new missile-carrying ships in war
The Taiwanese coast guard unveiled on Friday the final?of 12 high-tech ships? that can carry missiles if war breaks out, underlining what the minister responsible for the service called the changing nature its mission to face down China. The Anping-class patrol catamarans are based on Tuo Chiang class fast attack warships, highly maneuverable stealth ships designed to fight off larger warships close to Taiwan shores. The coast guard version is equipped with a space in the rear?to mount anti-ship missiles as a backup for the navy. Kuan Biling, Ocean Affairs Council Minister in Kaohsiung (southern Taiwan), said that the Coast Guard no longer performs only traditional law enforcement duties. She said, "They're protecting our sovereignty and homeland." In recent years, the international situation has changed quickly, and the challenges in the waters around the Taiwan Strait continue to intensify. Kuan, the head of the coastguard, said that the Anping-class ship was created to meet the demands of the modern era. "And once the situation escalates through the wartime transfer mechanism, it can connect quickly with the overall defense system, be incorporated in?the battle order, and become an essential force in the naval defence line." China considers democratically governed Taiwan to be its own territory despite the protests of Taipei's government. Xi Jinping, the Chinese president, told Donald Trump on 'Thursday in Beijing that mishandling the countries' differences over Taiwan could push China and U.S. relationships to a 'dangerous place. Kuan didn't directly comment on Trump-Xi, but only noted that "the leaders are meeting now". Taiwan's coastguard?is on the frontlines of what the government refers to as China's "grey zones" harassment. This includes actions such as regularly sending warships or?warplanes close to Taiwan, which stop short of combat but are intended only for testing and wearing out Taiwan's defenses. During China’s regular wargames around Taiwan, the coast guard and navy are sent out to warn Chinese vessels off. (Reporting and writing by Yi-Chin Lee, Ann Wang; editing by Himani Sarkar).
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India's Redington uses air freight to meet Mideast demand even when the supply is low
Redington, an Indian distributor of IT goods, has increased its use of air freight to keep products moving in the Middle East as the conflict in the area disrupts sea routes. This also affects supply and demand. Since the U.S. and Israel war against Iran began in February, air freight rates have risen as fuel prices are higher and sea shipments are disrupted. "A good chunk of it used to be shipped by sea, and a smaller portion by air." The Strait of Hormuz has been closed, so a lot of the product is now being transported by air. S. Hariharan told Thursday that he was the group CEO and managing director. Redington has customers in more than 40 countries, including the United Arab Emirates (UAE) and Saudi Arabia. However, it does not provide country-specific revenue. Nearly half of its revenue comes from the "rest-of-the-world" segment. This includes markets outside India and Singapore, as well as South Asia. The company also had to redistribute its inventory to different warehouses in order to minimize potential war damage and find alternative insurance after insurers ceased to cover war risk. Hariharan said that the increase in insurance costs and freight costs amounts to roughly 0.20 percent of Redington's revenue. He added that Redington passes on most of these costs to its customers. Redington has also been reworking their logistics network due to disruptions in the Strait of Hormuz forcing them to route goods via Saudi Arabia and Oman. They are also relying more on road transport throughout the region. "We picked up the product in the Netherlands and brought it by air, then we distributed it by road. Hariharan stated that the road "seems to be safer". Apple is responsible for about a third Redington's revenues. Redington's vendors include Dell, Samsung Lenovo, and?HP. Redington anticipates revenue growth of 10% to 15% by fiscal 2027. Profit growth will closely follow topline gains. (Reporting and editing by Shaveen Kuber in Chennai, with Praveen paramasivam reporting from Chennai)
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President Trump's schedule
The Daybook for President Trump Friday, May 15, 2020 The daybook ?editor is Timothy Ryan (reachable at 202-843-6282 ?or [email protected] or [email protected]). Subscribers, if you have any issues with receiving the daybook content, please call 1-800-435-0101. Select option 5. The content is only intended to be used as a guide and should not appear in the official record. PRESIDENT TRUMP'S SCHEDULE (early schedule) Beijing, Anchorage and Washington 11:11 p.m. Eastern Daylight Time (Thursday evening)/11:11 a.m. local time (Friday morning): 'Participates in a Greeting and Friendship Photo with Chinese President Xi Jinping. Zhongnanhai, Beijing. Travel pool coverage for out-of-town trips 11:40 pm EDT (Thursday evening)/11:40 am Friday morning local time: Participates in a bi-lateral tea hosted by Chinese president Xi Jinping. ?Zhongnanhai, Beijing. Travel pool coverage for out-of-town trips Participates in a working lunch with Chinese President Xi Jinping at 12:15 a.m. Eastern Daylight Time (early - Friday morning). Zhongnanhai, Beijing. Press credentialed to enter. Departure from China. Beijing Capital Airport. Press credentialed? Anchorage, Alaska Daylight Time, 10:55 am EDT. Ted ?Stevens Anchorage International Airport, Anchorage, Alaska 12:25 p.m. EDT/8:25 a.m. ?Alaska Daylight ?Time: Departs Anchorage. Ted Stevens Anchorage International Airport, Anchorage, Alaska 6:45 p.m. ET: Returns?Joint Base Andrews. 6:55 p.m.: Departs Andrews. 7:05 ?p.m. 7:05?p.m. Presses open Note: China Standard Time is 12 hours earlier than Eastern Daylight Time. A?interview will air on Friday at 6 pm. FNC's Special Report with Bretbaier airs at 6 p.m. ET. The Daybook for Trump May 15, 2026
UAE accelerates oil pipeline project to bypass Hormuz
Abu Dhabi Media Office announced on Friday that the United Arab Emirates (UAE) will accelerate the construction of a new pipeline to double their export capacity through Fujairah. This will allow them to bypass the Strait of Hormuz.
ADMO reported that during a meeting of the executive committee, Abu Dhabi Crown prince?Sheikh Khaled Bin Mohamed bin Zayed?directed the Abu Dhabi National Oil Company to speed up the West-East Pipeline Project. The pipeline is currently under construction and is expected to begin operating in 2027.
The original timeline of the project was not disclosed.
The UAE's Abu Dhabi Crude Oil Pipeline (ADCOP), or the Habshan-Fujairah pipe, is capable of carrying up to 1.8 millions barrels of oil per day. This has proven crucial to the country as it seeks to maximize direct exports along the Gulf of Oman coastline.
The UAE and Saudi Arabia have the only Gulf producers that export crude oil outside of the Strait of Hormuz. Oman, on the other hand, has a large coastline along the Gulf of Oman. The 'narrow waterway' between Iran and Oman has been effectively closed by Iran as a response to the U.S. and Israeli air and naval campaigns that began on 28 February. This cut off about a fifth of global oil supplies which normally flow into Asia.
Kuwait, Iraq and Bahrain are almost entirely reliant on this strait to ship their goods.
The disruption in energy supplies has caused the prices to rise, prompting governments to ration fuel. This has led to fears of an economic slowdown as inflation increases. Reporting by Yousef SABA, Ahmed Elimam, and Jana Choukeir. David Goodman and Mark Potter edited the story.
(source: Reuters)