2025-10-14 23:44

IMF's Georgieva says world is continuing to trade Agile firms, lower effective US tariff rates boost growth Georgieva says AI 'very big bet', could pay off in productivity gains WASHINGTON, Oct 14 (Reuters) - Decisions by most countries to not retaliate against U.S. President Donald Trump's tariffs are among the top factors bolstering the global economy's resilience, IMF Managing Director Kristalina Georgieva said on Tuesday. "The world, so far, and I cannot stress enough, so far, has opted not to retaliate and to continue to trade pretty much on the rules that have existed," Georgieva said during an event at the IMF and World Bank annual meetings in Washington, noting that this avoided debilitating tariff escalation. Sign up here. Earlier on Tuesday, the fund had edged up its 2025 global GDP growth forecast in its World Economic Outlook to 3.2% from a 3.0% forecast in July, but warned that a renewed U.S.-China trade war threatened by Trump could slow output significantly. Also supporting global growth is that the effective U.S. tariff rate has come down from prior estimates, Georgieva told the Bretton Woods Committee event. After calculating that Trump's tariffs announced in April would average 23%, the rate was reduced by U.S. trade deals with the European Union, Japan and other major partners to about 17.5%, she said. "The effective tariff, though, what is being collected when you get exceptions to accommodate the need for the economy to function well, we calculate them somewhere between 9% and 10% so the burden is more than twice less than we thought it would be," she added. Other factors propping up the global economy have been better policies by countries to boost private sector development and more efficient allocation of resources, as well as agility by companies to avoid the worst effects of the tariffs, by front-loading imports and quickly rearranging supply chains. However, she said the resilience could also be tested by the stretched valuations in global markets - especially the tech sector, which has fueled a stellar market rally this year. "This is a bet, very big bet," she said. "If it pays back, fantastic, then our problem with low growth is gone, because we will see increase in productivity and we will see an increase in growth. What if it is either slow to come true or doesn't quite materialize. What then?" IMF chief economist Pierre-Olivier Gourinchas told Reuters earlier that the AI investment boom could lead to a bust similar to the dotcom crash in 2000 that burns equity investors, but that it would not likely result in a systemic crisis because it has not been heavily funded by debt. https://www.reuters.com/business/imf-chief-says-lack-retaliation-against-trump-tariffs-aiding-global-growth-2025-10-14/

2025-10-14 23:04

LONDON, Oct 15 (Reuters) - Britain must urgently prepare for global warming of at least 2 degrees Celsius above pre-industrial levels by 2050, its climate advisers said on Wednesday, warning the country is ill-prepared for extreme weather that is already occurring. Britain this year experienced its warmest summer since records began, which impacted health, agriculture and infrastructure with droughts declared in several regions. Sign up here. "It is clear we are not yet adapted for the changes in weather and climate that we are living with today, let alone those that are expected over coming decades," the Climate Change Committee wrote in a letter to the government in response to a request for advice from an environment minister. The CCC outlined six critical areas: public health, food security, infrastructure resilience, protection of cities and towns from extreme weather disruption, maintenance of public services and climate-resilient economic growth. Most governments promised under the 2015 Paris Agreement to try to prevent the average global temperature rise from exceeding 1.5 degrees Celsius above pre-industrial levels. But scientists have been surprised by how quickly changes are unfolding, with average global temperatures already having warmed by 1.3-1.4 degrees Celsius above the pre-industrial average, according to data from U.N. and EU science agencies. "We continue to believe that (limiting the rise to) 1.5 degrees is achievable as a long-term goal, but clearly the risk that it will not be achieved is getting higher," Julia King, chair of the CCC's Adaptation Committee told a press briefing. The group cautioned that global warming of 4 degrees Celsius by century's end cannot be ruled out and said this should be factored into plans for building homes and infrastructure in order for them to withstand the next 75 to 100 years. https://www.reuters.com/sustainability/cop/britain-must-urgently-prepare-hotter-temperatures-climate-advisers-warn-2025-10-14/

2025-10-14 22:58

Oct 15 (Reuters) - A network overload and the residual effects of previous Russian attacks triggered blackouts in Kyiv and other Ukrainian regions late on Tuesday, officials said. Water pressure was also affected in parts of the capital. Sign up here. The Kyiv City State Administration, writing on the Telegram messaging app, said the overload had caused a problem in one of the capital's energy sites. Power was cut in three central Kyiv districts on the west bank of the Dnipro River running through the city. The Kyiv metro was temporarily forced to rely on reserve power to keep operating. The administration later said emergency crews had restored power to affected areas, though outages were still being reported. It said water pressure would be restored to normal levels within two to three hours. Ukrenergo, which operates Ukraine's high-voltage lines, said lingering problems from Russian attacks on the energy system had triggered outages in regions across northern, central and southeastern Ukraine. "The aftermath of Russian attacks on energy facilities continues to be addressed in all regions affected by the shelling," Ukrenergo said on Telegram. Russian attacks in recent weeks have concentrated on energy targets. A wave of strikes on Kyiv and other areas last week left more than a million households and businesses temporarily without power across the country. https://www.reuters.com/business/energy/network-overload-triggers-blackouts-kyiv-other-ukrainian-regions-2025-10-14/

2025-10-14 22:35

Shutdown affects paychecks for 13,000 air traffic controllers Controllers face financial strain, may seek side jobs, employee union warns Risk for air travel could rise as shutdown stalemate drags on, Daniels says ARLINGTON, Virginia/NEWARK, Oct 14 (Reuters) - More than 13,000 U.S. air traffic controllers face rising stress and financial insecurity after Tuesday's disbursement of what will be their last paycheck during the government shutdown, posing potential risks for air travel, the head of an employee union said. Transportation Secretary Sean Duffy said last week that staffing issues among air traffic controllers were to blame for 53% of flight delays since the shutdown, now in its 14th day, compared with 5% in normal times. Sign up here. And as the political stalemate over government funding drags on, the potential toll on air traffic could worsen, said Nick Daniels, president of the National Air Traffic Controllers Association. "(The shutdown) introduces a whole new risk in the air traffic control system, when their focus is now moved from the safety and moving 45,000 planes, 3 million passengers, tons of cargo a day into, 'Do I have to get another job? Do I have to start driving Uber on the side?'" he said in an interview at Reagan Washington National Airport Tuesday. Controllers, working in one of the government's most high-stress professions with responsibility for the smooth and safe flow of air travel, also fear getting caught in the middle as both political parties point fingers at each other over the budget impasse. "We're used as the political pawn during the process," Daniels said. "We are the rope in this tug of war game that we shouldn't be the rope. This has nothing to do with us ... The real story is that America's air traffic control system is falling further behind because of this shutdown." Daniels met on Tuesday with Duffy at Baltimore/Washington International Airport in Maryland to talk to controllers. Tens of thousands of federal workers have been sent home and thousands more laid off, as more and more government business grinds to a halt each day without a budget deal in Congress. Like many who work in government, controllers are missing two days of pay in the check they receive Tuesday and will not get any paycheck on October 28 if the budget standoff is not concluded. More than 50,000 Transportation Security Administration officers are also working without pay. Air traffic has already slowed at times in some cities, as many air traffic controllers called in sick, roiling air travelers. "On top of the stress they're already dealing with, in the towers, or in the security lines, they're now wondering how they're going to pay their rent and mortgage," Democratic Representative Josh Gottheimer told reporters at Newark International Airport on Tuesday. "Yet, like so many other government workers are still showing up to keep our country and our economy running." The Federal Aviation Administration has been facing an air traffic controller staffing shortage for more than a decade, and many had been working mandatory overtime and six-day weeks even before the shutdown. The FAA is about 3,500 air traffic controllers short of targeted staffing levels. In 2019, during a 35-day shutdown, the number of absences by controllers and TSA officers rose as workers missed paychecks, extending checkpoint wait times at some airports. Authorities were forced to slow air traffic in New York, which put pressure on lawmakers to quickly end the standoff. Daniels said the Transportation Department clarified controllers will get paid for sick time for which they are legally entitled during the shutdown, once it ends. Duffy has urged controllers to keep working. Officials said staffing issues did not pose a significant issue over a three-day U.S. holiday weekend that just ended. https://www.reuters.com/world/us/us-air-safety-risk-with-traffic-controllers-pawns-shutdown-official-says-2025-10-14/

2025-10-14 22:20

WASHINGTON, Oct 14 (Reuters) - Major Chinese airlines on Tuesday urged the Trump administration to abandon a plan to bar them from flying over Russia on U.S. flights, saying it would increase flight times, raise air fares and could disrupt some routes. Last week the U.S. Transportation Department proposed banning Chinese airlines from flying over Russia on routes to and from the United States, saying the reduced flight time puts American carriers at a disadvantage. Sign up here. China Eastern (600115.SS) , opens new tab, one of six Chinese airlines that sent letters, said in a filing with USDOT that the move could extend the flight time on some of its most important routes by two to three hours, significantly increase risks of missed connections and boost fuel consumption. Air China (601111.SS) , opens new tab and China Southern (600029.SS) , opens new tab said the decision would adversely affect a substantial number of passengers in the United States and China. China Southern projected at least 2,800 passengers scheduled to travel during the peak holiday season of November 1 to December 31 would need to be rebooked "jeopardizing their travel plans." Separately United Airlines urged the Trump administration to extend the prohibition to Cathay Pacific (0293.HK) , opens new tab, which flies over Russia on flights to the United States from Hong Kong and other Hong Kong-based carriers. United (UAL.O) , opens new tab says the Russia restrictions mean it is "effectively barred from resuming non-stop China service on previously served routes such as Newark/New York, Washington, D.C., and Chicago." Russia has barred U.S. airlines and many other foreign carriers from flying over its airspace in retaliation for Washington banning Russian flights over the U.S. in March 2022 after Russia invaded Ukraine. Chinese airlines were not banned and have been using this advantage to increase market share compared to non-Chinese carriers on international routes. A spokesperson for China's foreign ministry on Friday said the restrictions were not conducive to person-to-person exchanges. Airlines for America, a major trade group representing carriers American Airlines (AAL.O) , opens new tab, Delta Air Lines (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab praised the effort but also called on USDOT to continue to "maintain parity in the number of passenger flights available to U.S. and Chinese airlines, by ensuring that the level of passenger capacity stays reasonably tied to marketplace demand." https://www.reuters.com/world/asia-pacific/chinese-airlines-oppose-trump-plan-stop-flying-over-russia-us-routes-2025-10-14/

2025-10-14 22:18

GM's $1.6 billion charge linked to EV capacity adjustments GM may incur further charges due to capacity reassessment Automaker expects EV adoption to slow Oct 14 (Reuters) - General Motors (GM.N) , opens new tab said on Tuesday it would take a $1.6 billion charge in the third quarter as it reshapes its electric vehicle strategy following the scrapping of a key federal incentive that is likely to dampen demand. GM's disclosure is one of the clearest indications yet that U.S. automakers are scrambling to adapt their production plans in response to slowing EV demand. Sign up here. The EV market also faces fresh strain after the Trump administration scrapped a $7,500 federal tax credit for electric vehicles, a key industry support, with auto executives warning of a sharp near-term drop in battery-car sales before an eventual rebound. EV ADOPTION RATE TO SLOW In a filing, GM said it expects "the adoption rate of EVs to slow" following recent policy changes, including the termination of certain consumer tax incentives and reduced emissions-rule stringency. "The charge is a special item driven by our expectation that EV volumes will be lower than planned because of market conditions and the changed regulatory and policy environment," GM told Reuters in a statement. Shares of the company were up 2.1% in morning trade. Automakers are also working to cushion the impact of President Donald Trump's tariffs, which forced GM to take a $1.1 billion hit in the previous quarter. The company has estimated a bottom-line impact of $4 billion to $5 billion this year from trade headwinds and said it could take steps to offset at least 30% of the blow. Morningstar senior analyst David Whiston noted that other automakers could follow GM's suit and announce their own EV-related impairments. Ford (F.N) , opens new tab declined to comment on its EV plans, while Stellantis did not immediately respond to a Reuters request for comment. GM'S $1.6 BILLION CHARGE "The charge doesn’t come as a surprise given recent market developments and the fact GM had made probably the most aggressive EV push of any traditional automaker," said Garrett Nelson, a senior equity analyst at CFRA Research. "We think the automakers who chose to invest more heavily in hybrid vehicle development such as Toyota and Honda are poised to benefit in the U.S. auto market." Both GM and crosstown rival Ford had launched a program that would have allowed dealers to offer a $7,500 tax credit on EV leases after the federal subsidy expired, before walking back on those plans. The charges include a $1.2 billion non‑cash impairment tied to EV capacity adjustments and $400 million for contract‑cancellation fees and commercial settlements. While the changes will not affect GM's current portfolio of Chevrolet, GMC, and Cadillac EVs in production, the company did warn of possible additional charges as it reassesses capacity and manufacturing footprint. GM said the charges will be recorded as adjustments to non‑GAAP results for the third quarter, which are scheduled for release early next week. https://www.reuters.com/business/autos-transportation/gm-takes-16-billion-charge-it-reassesses-ev-plans-2025-10-14/