Global supply chain issues affecting the delivery of new aircraft could well persist into 2026, said International Air Transport Association (IATA) director-general Willie Walsh.

“We’re not getting the new aircraft that a lot of airlines have banked on. It has also forced some airlines to reintroduce aircraft that they had planned to retire,” he told CNA on the sidelines of the IATA Annual General Meeting and World Air Transport Summit on Sunday (Jun 2).
“So it’s been very disruptive.
The best I can say about the supply chain problems is that it doesn’t appear to be getting worse.

“It’s stabilised at a bad position, but we think this will continue to impact the industry through this year, 2025, and probably into 2026.”

AIRLINE PASSENGERS, REVENUES TO HIT RECORDS

Aviation leaders gathered for the three-day global airlines event in Dubai to discuss ways to navigate around geopolitical instability, growth pressures from strained supply chains, and sustainability targets.

Despite the challenges, airlines will fly nearly 5 billion passengers this year and revenues will soar close to US$1 trillion, both record highs, the IATA said on Monday.

The trade body also expects the world’s airlines to post US$30 billion in net earnings this year, up from its previous estimate of US$25.7 billion.

The Asia Pacific, in particular, is growing at a healthy level, and has opened “a little bit earlier than we had expected”, said Mr Walsh.
But the progress has been affected by China’s poorer-than-expected recovery, he added.

“We’ve not seen the number of flights between China and the United States getting anywhere close to where it was. I think these will be resolved over time, but it has impacted on the rates of recovery in the Asia-Pacific region.”
Source: CNA

BENGALURU (May 31): Major economies grappling with housing crises will struggle to crank up the supply of affordable homes in coming years, according to a Reuters poll of property analysts who said more government intervention was needed to improve the situation.

House prices in most major property markets were forecast to rise over 4% this year thanks to supply lags and expectations that top central banks will cut rates soon. That is a relatively modest appreciation as property values are already very high.

An acute lack of starter homes, a perennial problem made worse during the Covid-19 pandemic, was not likely to be addressed anytime soon, according to experts polled May 9-30 across markets in the US, Canada, Britain, Germany, India, Australia and New Zealand.
That suggests most new homebuyers will have to stretch further or consider waiting even longer to save up enough of a deposit to own a home.

A 93% majority of analysts, 90 of 97, said the pace of supply of affordable housing will fall short of demand, with more than one-third expecting demand to fall far short.
The remaining seven said it would exceed demand, with no one saying supply would far exceed it.

“I think everything comes down to rate cuts. If we don’t get rate cuts this calendar year then prices will be under pressure next year because there’s only so far prices can be pushed by buyers and we’re getting close to the…limits of affordability again,” said Liam Bailey, global head of research at Knight Frank.

“The only reason why there’s a floor under pricing is because there is low stock availability in lots of markets that we cover,” he added.
With rising homelessness in the developed world and private players focusing more on high-end construction and not building basic housing for those who desperately need shelter, calls for governments to do more are getting louder.

Asked if governments should be more involved in improving affordability, a strong 73% majority of analysts, 67 of 92, said “yes”. The rest said “no”.
In the meantime, house prices are set to keep rising in all seven major markets covered by the survey, except Germany.

While those results were similar to those from three months ago, analysts’ predictions were slightly more upbeat. But interest rates are not expected to approach recent record lows in any of these markets, keeping expectations for price appreciation mostly in low single digits.

In the US, where the Federal Reserve is still expected to cut rates at least once later this year, house prices were forecast to rise 5.0% and 3.3% in 2024 and 2025, respectively, a slight upgrade from 3.3% and 3.0% from three months ago.

Much of the appreciation there is due to constricted supply, where swathes of existing homeowners with pandemic-era 30-year loans on exceptionally low mortgage rates have no incentive to move house and pay much higher borrowing costs.

“Your best bet for a trigger that might help affordability over the next year is interest rates. But frankly, it doesn’t look like we’re getting those four to five or six rate cuts from the Fed most economists thought earlier,” said John LaForge, head of real asset strategy at Wells Fargo Investment Institute.

The US was the only market with a slight majority of analysts saying government should not get more involved in improving affordability.
Average home prices in the UK and Canada were predicted to rise 1.8% and 1.5%, respectively, for this year and gain another 3.0% or so in 2025.

Australian and New Zealand home price rises were expected to outpace overall inflation over the next couple of years. Survey medians showed a price growth of around 4%-5% in both countries.

Average house prices in India were predicted to rise 6.0% this year and next, increasingly driven by a select few in a country of more than 1.4 billion people.
Source: the edge malaysia

Australian Treasurer Jim Chalmers has ordered several China-linked investors to dispose of shares in rare earths miner Northern Minerals on national interest grounds, a spokesperson said on Monday.

Northern Minerals is developing the Browns Range heavy rare earths project in Western Australia, at a time when the sector has become increasingly strategic for its uses in green energy and defence.

A disposal order issued by Chalmers on Sunday said Yuxiao Fund had 60 days to dispose of 80 million shares it bought in September.

Yuxiao Fund is the Singapore-registered private investment vehicle of Chinese national Wu Yuxiao, Reuters has previously reported. The fund had sought Foreign Investment Review Board (FIRB) approval to raise its ownership to 19.9% in 2022, from 9.81% of Northern Minerals, but was declined last year.

Northern Minerals Chairman Adam Handley in a statement to Reuters said that it had referred certain share buying activity to the FIRB to investigate last October.

“Northern Minerals made the referral to FIRB because of our duty to act in the best interests of all shareholders, ensure the integrity of the company’s share register and uphold our high standards of good governance,” he said, adding that it would have no impact on its development of the Browns Range mine.

In aggregate, the number of shares that must be divested amounts to around 10.4% of Northern Minerals’ issued share capital, it noted, which, added to Yuxiao Fund’s holdings, would come close to 20%, the point at which a party would have to declare its intentions under Australian takeover law.

Northern Minerals has said the fund was controlled by Wu Tao, the chairman of mainland China-based Jinan Yuxiao Group. Other foreign shareholders ordered to dispose of shares within 60 days include Ximei Liu, Xi Wang, and Black Stone Resources, the notice said.

“The Treasurer has issued orders that Yuxiao Fund Pte Ltd and four associates reduce their shareholdings in Northern Minerals,” a spokesperson for Chalmers said in a statement on
Monday.

“The decision, based on advice from the Foreign Investment Review Board, is designed to protect our national interest and ensure compliance with our foreign investment framework.”

Browns Range is set to supply Iluka Resources’ Eneabba rare earths refinery under construction in Western Australia, which already has a A$1 billion($665.10 million) funding pledge from the Australian government and is waiting on a decision for more.

Australia has said it is looking for friendly nations to build out its critical minerals industry as the West diversifies away from dominant producer China.

Last week Northern Minerals Chairman Nick Curtis exited the company’s board. Curtis declined to comment. Shares in Northern Minerals were little changed at A$0.035. The company’s annual general meeting is on June 6.

Canberra screens foreign in vestment in key sectors for national security, including critical minerals, and has blocked some Chinese deals which has irked Beijing.
Australia is preparing for a visit by Chinese Premier Li Qiang later this month.

Chinese Foreign Minister Wang Yi said on a visit in March that he hoped Australia would ensure its market environment did not discriminate against Chinese business.

Chalmers’ spokesperson said Australia’s foreign investment framework did not discriminate against any nation. Source: CNBC

Singapore, known for its bustling cityscape and vibrant cultural scene, is now embarking on the second phase of its ambitious casino resort development project. The first phase, completed in 2010, saw the opening of two integrated resorts, Marina Bay Sands and Resorts World Sentosa. These resorts have since become major tourist attractions, drawing millions of visitors each year.

The second phase of the development project will focus on expanding and enhancing the existing resorts, as well as introducing new features and attractions to further bolster Singapore’s status as a premier tourist destination. The goal is to attract even more visitors and increase tourism revenue for the city-state.

One of the key highlights of the second phase is the expansion of Marina Bay Sands. The iconic resort, known for its rooftop infinity pool and stunning architecture, will undergo a major expansion that will include additional hotel rooms, new dining and entertainment options, and an enhanced shopping experience. The expansion is expected to attract even more high-end visitors looking for a luxurious stay in Singapore.

Over at Resorts World Sentosa, plans are underway to introduce new attractions and entertainment options to complement the existing offerings. The resort, home to the popular Universal Studios theme park, will see the addition of new rides and shows, as well as new dining and shopping options to cater to a wider range of visitors.

In addition to the expansion of the existing resorts, the second phase of the development project will also include the introduction of a new casino resort in Sentosa. This new resort, expected to rival Marina Bay Sands and Resorts World Sentosa in terms of luxury and grandeur, will offer a unique gaming experience for visitors looking to try their luck at the tables. Source: Coco Adocs