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- France and Germany Split on Europe’s Role in Securing Hormuz
- Surging Gas Prices Have Hit These US Cities the Hardest
- What Lagging Jet Fuel Supplies Could Mean for Airlines and Travelers
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- Hegseth Says Climate Change Is ‘Crap.’ The Military Is Still Bracing for It
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- Housing’s Spring Selling Season Is Here. It’s Not Looking Pretty
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- Cancer Cures In the ‘Closed Economy’ That Is the World Economy
- Paul Ehrlich, and the Perils of the Scientific Deformations
- In Space, No One Can Whine About Inequality
- Anthropic’s Mythos Gatecrashes IMF Meetings
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- Why the AI Backlash Is Only Going to Get Worse
- The $10 Billion Startup Training AI to Replace the White-Collar Workforce
- Nvidia Alum Rides China’s Robotics Wave to 187% Debut Pop
- Alstom Shares Plunge on Profit Warning
- Pentagon Seeks Help From Ford and G.M.
- Ford Will Partner More With Chinese Automakers Overseas
- Netflix Chair Reed Hastings to Leave Board in June
- Ellison Pledges at Least 30 Paramount-Warner Movies a Year
- Chocolate Makers Look to Cut Down on Cocoa After Price Volatility
- OpenTable Won Over the Wrong Customers, Then Changed Course
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- Roger Adams Dies at 71; Invented the Rolling Sneakers Known as Heelys
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Earnings latest: Netflix (NFLX) tumbles 10% following disappointing forecasts, while co-founder Reed Hastings steps down from the board after 29 years.
Desalination deals: As water levels in the Colorado River continue to decline, Arizona and Nevada are exploring an unusual solution.
Defense developments: Reports suggest Russia is planning anti-satellite nukes in space and the U.S. may delay weapons deliveries to Europe.
Turbulence
Now look at them yo-yos... Hard times are coming for the aviation industry, and it's not only because of the TSA shutdown. Airlines have hiked ticket fares and baggage fees in response to the Iran war and soaring prices for jet fuel, which makes up around 30% of airlines' overall expenses, according to the International Air Transport Association. Elsewhere, IEA Director Fatih Birol warned that Europe has "maybe six weeks" left of remaining jet fuel supplies, given the energy crisis stemming from the closure of the Strait of Hormuz.
That ain't workin': "In the past, there was a group called 'Dire Straits.' It's a dire strait now, and it is going to have major implications for the global economy," Birol continued. "The longer it goes, the worse it will be for the economic growth and inflation around the world." Congressman calls on airline CEOs to lower prices when fuel costs drop
The situation is already having profound effects across the sector. Budget carrier Spirit Airlines (FLYYQ), which operates on the thinnest of margins, might soon be liquidated following its second bankruptcy in two years. Capacity is also starting to be scaled back, with United Airlines (UAL), KLM (AFLYY), Qantas (QABSY), and others reducing their flight schedules. Lufthansa's (DLAKY) CityLine is even closing up shop, grounding all 27 of its aircraft as of tomorrow (it was originally set to cease operations by 2028).
We got to move these... deals: With organic growth stalling for the immediate future and concerns over profitability, companies have been entertaining M&A to ensure their competitiveness. Reports this week suggested that United (UAL) had discussed an American Airlines (AAL) merger with senior government officials, which would combine two of the largest U.S. carriers. Earlier this month, Transportation Department Secretary Sean Duffy also said he sees "room" for more M&A activity in the airline industry, noting President Trump "loves to see big deals happen." Airline outlook remains uncertain - Bernstein
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What else is happening...
Henry Paulson sounds the alarm on potential Treasury market shock.
Hims & Hers (HIMS) soars as RFK Jr. seeks to loosen peptide rules.
Search has ended: Trump nominates Erica Schwartz to lead CDC.
PepsiCo's (PEP) food segment results improve after some price cuts.
Air New Zealand (ANZFF) debuts world's first sleep pods in the sky.
Stellar IPO: Madison Air (MAIR) pops 19%, taps AI data center boom.
OpenAI (OPENAI) to spend more than $20B on Cerebras (CBRS) chips.
White House urges American oil firms to boost drilling amid Iran war.
Albemarle (ALB) climbs to near three-year high on global lithium rebound.
Israel, Lebanon agree to a 10-day ceasefire after meeting in Washington.
Today's Markets
In Asia, Japan -1.8%. Hong Kong -0.9%. China -0.1%. India +0.7%.
In Europe, at midday, London -0.2%. Paris +0.4%. Frankfurt +0.6%.
Futures at 6:30, Dow +0.3%. S&P +0.2%. Nasdaq +0.2%. Crude -4.1% to $87.45. Gold +0.1% to $4,813.10. Bitcoin +1.1% to $75,286.
Ten-year Treasury Yield -2 bps to 4.30%.
On The Calendar
Companies reporting today include Truist (TFC) and Ally Financial (ALLY).