Latest News
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Venezuela revokes flight rights for six airlines amid escalating US tensions
Six major international airlines have lost their operating rights in Venezuela after suspending flights to the nation following an advisory from the U.S. Federal Aviation Administration. Venezuela's civil Aviation Authority revoked the permits of Iberia and other airlines, including TAP, Avianca Latam Colombia Turkish Airlines, Gol. Caracas said in a press release that the carriers "joined state terrorism, promoted by the United States", by "unilaterally halting" commercial flights. The U.S. FAA warned major airlines last week of a "potentially dangerous situation" if they flew over Venezuela because "the security situation is worsening and there are increased military activities in or around the country." Caracas has said that the U.S. Safety Alert says it does not have authority over its airspace. Since months, the U.S. has deployed forces in the Caribbean to combat what they have portrayed as President Nicolas Maduro’s role in supplying drugs illegally that killed Americans. Maduro denies the allegations, and claims that U.S. president Donald Trump wants to remove him. In recent days, several international airlines have cancelled flights to Venezuela, ignoring Caracas’s 48-hour deadline for resuming services. Iberia has stated that it will resume flights to Venezuela once all safety conditions have been met. Air Europa and Plus Ultra suspended their flights, but they did not lose their permits. (Reporting and editing by Kevin Buckland; Additional reporting by Corina Poons)
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Romania signss deal to purchase French Mistral air defense systems
The Romanian defence ministry announced that it would purchase French Mistral air defense systems in the amount of more than 626 millions euros ($726million), as part of a joint acquisition deal with other European Union countries. The Ministry of Defence said that it had signed a contract with the French Defense Ministry on Tuesday for the purchase 231 man-portable Air-Defense Systems (MANPADS), built by the missile manufacturer MBDA, and 934 missiles along with training, simulators and logistics. The statement did specify the date of delivery. The first time the Romanian legislators approved the acquisition plan was in 2022. Romania, an EU and NATO member, shares a land border of 650 km (400 miles) with Ukraine. Since Russia began to attack Kyiv’s ports on the other side of the Danube, drones have repeatedly breached its airspace, and fragments have fallen onto its territory. Romanian air defences include F-16 fighters, Patriot systems and Lockheed Martin HIMARS launchers. Short-range South Korean surface to air Chiron missiles as well as German anti-aircraft Gepard cannons. A new European Union funding mechanism for defence will also allow the country to work with Ukraine on drones. Officials from the US and Romanian defence have confirmed that Romania is in the final stages to deploy the new Merops system against drones, which was supplied by the United States. Reporting by Luiza Ili; Editing Alexandra Hudson
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In China's worst rail crash in over a ten-year period, a train runs down and kills 11.
Officials in Kunming, a city in southwest China, said that a train hit a group railway workers, killing eleven and injuring another two. This is the deadliest rail crash in over a decade. Officials said that the train was testing equipment for earthquake detection when it hit workers at the Luoyang Town Railway Station. In a press release, the station in Yunnan Province has resumed its normal operations. The cause of the accident will be investigated. China has the largest rail network in the world, covering more than 100,000 km and making billions of trips every year. Although praised for efficiency, the system has been scrutinized after several high profile incidents. One such incident was a 2011 crash that left 40 dead and 200 injured in Zhejiang, a province located in eastern China. In 2021, nine people were killed when a train from the northwest province of Gansu hit workers working on a section the Lanzhou-Xinjiang rail line. (Reporting and editing by Christian Schmollinger, Clarence Fernandez and Shi Bu)
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IDB approves loan of $300 million to strengthen Ecuador's electricity grid
The Inter-American Development Bank approved a loan of $300 million to assist Ecuador in strengthening its electrical system. This was announced by the Andean country's Finance Ministry on Wednesday. The IDB Group has launched the Amazonia Siempre Initiative, which focuses on sustainable development, conservation of forests and improvement of quality of life. The funding includes $270m in IDB Ordinary Capital, with a term of 22.5 years and an 8-year grace period. * The Clean Technology Fund will provide an additional $30 million at concessional rates with a 1.19% rate of interest over 20 years. * Over 700 km of transmission line will be upgraded to advanced conductors in order to increase system capability and facilitate the integration of renewable generation. Project priorities include expanding access to electricity in the Amazon. By 2031, an estimated 5,600 rural households and urban marginal households are expected to be connected to the national grid. * The funds will be used to increase renewable energy production and improve transmission infrastructure.
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Source: MD-11 grounding following UPS crash likely to end by 2026.
David Shepardson and Allison Lampert Source: The grounding of MD-11 aircraft after the fiery crash of one plane this month is not likely to end until 2026. This will drive industry demand for alternative solutions as peak delivery season begins this week. Boeing and the Federal Aviation Administration must complete testing following the November 4, 2014 crash of an UPS MD-11 jet in Louisville, Kentucky that resulted in the deaths of 14 people before they can agree on the inspection criteria for ungrounding the planes. The source, who spoke on condition of anonymity, stated that the FAA had grounded the jets just days after they crashed. Inspection guidelines would allow them to fly again next year. The latest sign that the air cargo workhorses of the industry will remain grounded for longer than expected is the source who spoke about the private matter under condition of anonymity. UPS (UPS.N), the U.S. parcel giant, said that it was leasing more planes than usual. FedEx, its rival, said it was using spare aircraft to "leverage" opportunities for chartering planes. UPS and FedEx have a combined fleet of over 100 planes, including 50 MD-11 jets. While air cargo demand will only increase slightly over the next year, delivery companies can expect to see their average daily package volume more than double during the holidays. In general, inspections of planes are expected to be completed earlier. FedEx CFO John Dietrich said at a conference on November 11, that the inspections of their operating fleet of MD-11 aircraft would begin in the next few days. In a letter, an executive of U.S. cargo airline Western Global Airlines stated that it would be forced to lay off pilots as it anticipated the groundeding of the model, which makes up the majority of its fleet, to only last a short time. Nik Fialka, a pilot and podcaster, shared the letter on social media Monday. The letter stated that Boeing had advised "more and highly intrusive inspections as well as repairs, and part replacements will be required." Western Global did not respond to a comment request. Its website lists FedEx, UPS, and other clients. Boeing's spokesperson confirmed that its team provides technical and instructional support to operators. The U.S. aircraft manufacturer acquired the MD-11 programme through its 1997 merger McDonnell Douglas. The chair of the National Transportation Safety Board (NTSB), which is leading an investigation into the UPS accident, said last week that there is still a lot to be done. Jennifer Homendy, Chair of NTSB, said that the NTSB has a number of pieces in its lab and is continuing to work on them.
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Urals differentials unchanged during quiet trade
The Russian Urals crude differentials compared to Brent dated were unchanged on December trading volumes as Western sanctions pressure and price discussions between sellers and purchasers slowed the trading, traders reported. Traders said that market participants were adapting to the new reality of the market after the latest U.S. sanctions and EU sanctions against Russian oil. Three industry sources who have direct knowledge of this matter say that a Western-sanctioned ship with Russian oil bound for Indian Oil Corp had its cargo discharge delayed in a port in east India because of a delay in the online verification of insurance coverage provided by a Russian company. Three industry sources with direct knowledge of the matter said that a vessel sanctioned by Western countries and carrying Russian oil bound for Indian Oil Corp had its discharge delayed at a port in eastern India due to a delay in online verification of insurance cover provided by a Russian insurer. PLATTS WINDOW Traders reported that no bids or offers for Urals, Azeri BTC, and CPC Blend were made on February 2. Peter Szijjarto, Hungary's foreign minister, said that the MOL oil and gas company will increase its crude oil and fuel supplies to Serbia following the U.S. sanctioned cutoff of supplies to NIS (Russian-owned refinery) due to U.S. restrictions. Richard Chang (Reporting and Editing)
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Brazil's Finance Minister does not expect the government to challenge the bill on special pension
Fernando Haddad, Brazilian Finance Minister, said that he did not think the government would challenge in court the Senate-approved legislation to set up special retirement rules for health agents working within the community. He also argued that the measure was not a source of mandatory revenue. Haddad, in an interview with GloboNews said that it was possible to create fiscal room for measures proposed by Congress. However, he cautioned that they must be discussed before. * "Congress is free to make any claim it wants, but must indicate where the funding comes from," he said. "You must create fiscal room." The Brazilian Senate has approved a bill establishing special retirement conditions for community healthcare agents. This legislation has raised concerns about its fiscal impact. * The Lower House of Brazil still has to approve the bill. Rogerio Ceon, the Brazilian Treasury Chief, later said that the government has not yet received an official estimate of the bill's budget impact. Potential Rescue Plan for CORREIOS Haddad stated that the government has not discussed a possible privatization of Brazil’s state-run Correios postal service. He said that a rescue plan, sponsored by Treasury, would only be implemented after the creation of an "consistent and comprehensive" restructuring plan for Correios. * The Minister said that he only received a clear picture of Correios’s worsening financial problems "very recently". Dario Durigan, the Deputy Minister of Finance, was in attendance on Monday. You can also recognize this by The government's budget for this year has been affected by the "poor" performance of the postal service.
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Petrobras investment will drop as Lula's first budget is cut.
Three sources familiar with the matter said that Petrobras, Brazil's state-owned oil company, will cut its five-year investment program for the first time under Luiz Inacio Lula Da Silva's administration due to lower oil costs. Sources said that the new plan will be announced on Thursday and is expected to have capital expenditures about 2% less than the previous plan of $111 billion for the period 2025-2029, dropping to approximately $109 billion. The board is yet to make a final decision. This is the first divestment since the Petrobras plan from the period 2021-2025 under the former president Jair Bolsonaro, when Petrobras went through a series or divestments. Lula, since he took office, has encouraged the oil company to invest more to help boost the economy of the country. The leftist leader will seek to run for a non-consecutive fourth term next year. The company informed analysts during a earnings call that there was little room for maneuvering in 2026 as the majority of planned investments had already been contracted. Petrobras' current capital budget for the next year is around $19.6 Billion. Brent crude oil traded at $62,35 per barrel on Wednesday. This was lower than the $70.85 average for the first nine month of the year, which is already a 14.4% decline compared to 2024. ASSOMALIZING PRICES LOWER A source told us that Petrobras must adapt to the current oil price environment and do more with the same amount of money. The company should not increase its debt nor change its dividend policy, she added. Sources say that the plan is to increase production and refinery by increasing the capacity of existing units. The company will map out platforms which could boost output, and it plans a revamp of almost all its refineries. The company is searching for platforms that can follow the Almirante Tamandare flotating production unit. This floating unit was designed to produce 225,000 barrels of oil per day but achieved a record 270,000 barrels of oil per day in October. Petrobras could reevaluate projects in order to reduce costs and negotiate with suppliers. This was the claim of a source. (Reporting and writing by Rodrigo Viga Gaier, Fabio Teixeira, Editing by Bill Berkrot).
JPMorgan will build a huge new UK headquarters in London's Canary Wharf
JPMorgan said on Thursday it would build a 3-million-square-foot (280,000-square-metre) tower in the Canary Wharf financial district in East London, committing a big investment to Britain on the heels of a closely watched UK budget that has sought to reassure investors of the nation's finances.
JPMorgan stated that the project will contribute 9,9 billion pounds ($13,1 billion) to the local economy over the next six years - including construction costs - and create 7,800 new jobs.
JPMorgan said that the new building would house 12,000 employees and be the largest office of the bank in Europe, Middle East, and Africa.
This is a great move for Canary Wharf, the financial district that struggled to keep big tenants after COVID-19 but has seen a recent surge in leasing due to companies demanding more employees return to work.
Jamie Dimon, JPMorgan's Chairman and CEO, said that the UK government's focus on economic growth was a key factor in his decision. This came a day after he had backed UK Finance Minister Rachel Reeves budget in a rare show of support.
Public remarks
on a budget day.
First,
reported
Last year, JPMorgan began evaluating options for its UK HQ in London. The Wall Street bank had outgrown its tower in Canary Wharf.
The company also considered upgrading its current building at Bank Street, Canary Wharf, and moving to a more central location in the City of London.
(source: Reuters)