Meta has paused a new company-wide program of tracking its employees’ computer usage which has been plagued by internal frustration.
The program was started only two months ago as part of an effort by Meta to gather data on how people used computers, including mouse clicks and keystrokes, that could be used to train artificial intelligence (AI) models.
It was met immediately with upset from employees who were to have their every online action at work tracked and recorded, but also concerned about where the data was going and how it would be protected.
Meta halted the program on Monday after realising some of the collected data had been left potentially accessible to anyone inside the company.
A Meta spokesman confirmed to the BBC that the program, named internally the Model Capability Initiative (MCI), was “on pause for now” as the company investigates the issue.
“We have no indication at this time that any data was improperly accessed by Meta employees,” the spokesman added.
The pause follows weeks of blow-back from workers at the company, led by billionaire Mark Zuckerberg, to being tracked at work.
In an initial response to worker frustration – which was displayed in part through a petition signed by nearly 2,000 Meta workers demanding that the MCI program be cancelled – Meta said it would allow workers to not be tracked for up to 30 minutes at a time.
“That was just an attempt at damage control,” one current employee told the BBC. The person asked not to be identified.
Another Meta employee, who also asked not to be identified, said that while a lot of technical workers inside the company are open to the idea of improving its AI models and being more competitive in a field dominated by Anthropic and OpenAI, the fact that tracking “was forced on us, there was no consent” left people angry.
“I’ve never seen morale here so bad,” the employee said.
In addition to the tracking program, frustration inside Meta has grown as it has done extensive layoffs, and reorganised many employees and their work around AI initiatives, on which the company is spending up to $145bn (£109bn) this year alone.
While Meta has long had a reputation in the technology industry as a company that frequently reorganises internal teams around new projects, the changes and spending in an effort to catch up on AI feels like “chasing your tail”, a person who recently left Meta after several years said.
“The direction this company is going in is depressing”, the former employee said. “Exhausting and depressing.”
HE stands to inherit his late dad Liam Payne’s £21million fortune, but nine-year-old Bear might not see a penny until he is at least 25.
His mum Cheryl Tweedy wants the legacy to be withheld until the lad is old enough to make informed financial decisions.
Cheryl, who was named an administrator of Liam’s asset, wants Bear to not gain full access to Liam Payne’s £21million fortune until he is much olderCredit: GettyBear is to be the sole beneficiary of the tragic singer’s £21million fortune
She has gone all out to protect their son since he was born in 2017, shielding him from the public eye in a bid to give him as normal a childhood as possible.
And she is keen not to expose him to the pressures of having such huge wealth at his young age.
High Court probate documents published over the weekend confirmed Bear is the sole beneficiary of his father’s fortune.
Parts of the estate — which includes the five-bedroom home at Chalfont St Giles, Bucks, that Liam bought for £3.25million in 2021 to be closer to his son following his split from Cheryl — can be used immediately to look after Bear’s needs.
However, Cheryl, who was named an administrator of Liam’s assets last year, would prefer he does not gain full access until he is much older.
“Protecting Bear is Cheryl’s priority in life,” a friend explained. “She is a devoted mother and will do everything she can to take care of him.
“Cheryl knows how difficult it can be to live in the public eye and has shielded Bear from that as much as she can.
“Inheriting this amount of money at a young age is enough to have the potential to send anyone sidewards — and that is what she wants to protect Bear from.
“She is going to stop him receiving Liam’s inheritance until he is at least 25 years old, if not older.
“For Cheryl, she feels that she wants Bear to be of an age where he can make informed decisions about the money.”
It was not until 2016 that they started dating, and Bear was born the following year.
The fortune can be used immediately to look after Bear’s needsCredit: Refer to CaptionCheryl never shows Bear’s face in social media photosCredit: Cheryl/Instagram
Their relationship ended in 2018, with Cheryl and Liam becoming devoted co-parents to their young son.
In a statement following their break-up, Liam wrote online: “We still have so much love for each other as a family.
“Bear is our world and we ask that you respect his privacy as we navigate our way through this together.”
In the years that followed, Liam regularly praised Cheryl’s ability as a mother and revealed she had stayed at home with their son while he pursued his solo music career.
He said of the former Girls Aloud star: “What I’ve learnt about being a dad is how hard it is to be a mum and she hasn’t had any help from anybody and she’s done it all herself.
“She supported me going off and doing my career and stuff. She is amazing.”
Cheryl, too, spoke fondly of Liam and revealed becoming a mother had changed the way she wanted to live her life. She said in 2019: “Everything changed for me from the moment Bear was born.
“My old brain came out of my head, and all my worries, anxieties and feelings of emptiness went, and a new brain replaced it.
Cheryl and Liam started dating in 2016 and Bear was born the following yearCredit: Refer to sourceThe couple split in 2018 but remained dedicated parents to BearCredit: PA:Press Association
“I knew the word ‘fulfilled’, but I’d never known what that felt like.
“Money, fame, success should have made me feel that, but they never did, which is probably why I looked for it in my relationships with men, but that never worked either.
“I was always angry at myself.
“And then, even though I’d had a really tough pregnancy because I had gestational diabetes, I felt more peaceful. The moment I held him in my arms I had that feeling: Fulfilment. It’s stayed with me. And I’ve changed so much. I really have.”
Together, Cheryl and Liam chose to keep their son out of the spotlight and, to date, the schoolboy is rarely seen.
She also continued to keep his face shielded from view, a decision she made with Liam when Bear was still a small child.
A friend explained: “Giving her son a normal and happy childhood is what Cheryl remains focused on.
“She wants him to have a life that other kids have. His parents might have been public figures, but Bear is not. Keeping that normality and stability for her son is paramount for Cheryl.
“It’s why the idea of him inheriting such a vast amount of money is worrying. Not everyone in this world has good intentions and Cheryl knows that.
“She wants him to still have ambition and the drive to succeed without the back-up of the money — and she’s aware that people may want to befriend him because they are aware of his situation.
“Guiding her son and controlling his access to the money will allow her to keep him safe. The older he is, the more wise he will be and, ultimately, when he is a man in his twenties with a job and a life of his own, he will be better able to make informed decisions with her guidance.
One Direction star Liam died suddenly in October 2024 without leaving a willCheryl and Liam chose to keep their son out of the spotlightCredit: Getty
“It is all any mother would want for their child.”
The singer fell to his death from a third-floor hotel balcony in Buenos Aires, Argentina, in October 2024.
An autopsy confirmed he died from multiple traumas and internal and external bleeding.
He had been with his girlfriend Kate Cassidy in the days leading up to the tragedy. She left the country to return to the house they shared in the US days before Liam died. Two men were arrested on suspicion of supplying him with cocaine before his death.
Liam’s body was repatriated to the UK for his funeral in Amersham, Bucks, which was attended by his closest friends and family.
Liam’s One Direction bandmate and close friend Niall Horan spent time with him in Argentina prior to his death after Liam flew there to watch him perform.
Liam’s passing at the age of 31 only fuelled Cheryl’s determination to allow their son to live a normal lifeCredit: Alamy
Three weeks ago, he spoke movingly about Liam and said he will cherish their last meeting. Niall revealed: “I’m glad of that, it means my last memory of him was happy. It still feels surreal.
“On day one I was, like, ‘Nah, it didn’t happen’. Our friendship was a bond that was there for ever, even if we hadn’t seen each other for a while.
“And it’s wild that one day, like the flick of a switch, he’s gone.
“All our families are in touch, they shared those experiences, too.”
Recalling the good times he shared with Liam, Niall added: “When I think of Liam’s passing, there is sadness, but it also makes me laugh because of the memories we had.
“I’ll go to places and think of something random that makes me laugh.”
In the days before the service, Cheryl issued a statement about Liam, saying: “As I try to navigate this earth-shattering event, and work through my own grief at this indescribably painful time, I’d like to kindly remind everyone that we have lost a human being.
“Liam was not only a pop star and celebrity, he was a son, a brother, an uncle, a dear friend and a father to our son.
“A son that now has to face the reality of never seeing his father again.”
She added: “Before you leave comments or make videos, ask yourself if you would like your own child or family to read them.
“Please give Liam the little dignity he has left in the wake of his death to rest in some peace at last.”
Since then, friends say Cheryl has devoted her time to caring for Bear and is determined to give him stability.
“Cheryl loves being a mum and doing all the normal things that parents do,” a pal explained.
“The school drop-off and pick-up, play dates with friends, cooking the dinners — she does it all while juggling work commitments.
“Cheryl knows there will be interest around Bear because of who his parents are. But that doesn’t mean he has to live that life — or even have any part in it. Protecting him from that and caring for him is all she cares about.
“She is a mother first and foremost. Her son will always be her number one priority.”
IT’S been five years since Britney Spears was released from her conservatorship following the Free Britney campaign, but insiders say the pop superstar is more lost than ever.
Pals fear Britney is more lost than ever five years after being released from her conservatorshipCredit: InstagramThe pop superstar has no plans to return to performingCredit: Mychal Watts
It’s a far cry from the 16-year-old who took over the world in 1998 with her debut single Baby One More Time, which catapulted her to instant worldwide fame.
An insider said: “Some people close to Britney can’t help wondering whether she’s actually happier now than she was then.
“The sad reality is that she seems incredibly isolated. She spends most of her time at home and her world has become smaller and smaller over the years.
She was recently arrested for DUI during which she bizarrely offered to make officers a home-made lasagneCredit: California Highway PatrolBritney split from husband Sam Asghari in 2023Credit: Getty Images for GLAADShe has a famously strained relationship with her sons Sean and JaydenCredit: InstagramThose close to Britney feel like she’s desperately trying to find her place in the worldCredit: Instagram
“Those around her would love to see her thriving, but instead they worry she’s become increasingly detached from everyone else.”
In 2023, Britney split from her third husband Sam Asghari – less than a year after tying the knot – and we’re told the break-up had a huge impact on the mum-of-two.
She shares Sean Preston, 20, and Jayden James, 19, with ex-husband Kevin Federline and has struggled with a strained relationship with her sons for years.
Our source said: “The divorce hit her hard and she hasn’t appeared to find the stability or companionship she craves and desperately needs.
“Her relationship with her sons has also been a source of sadness over the years, and those closest to her know how much that weighs on her.
“People are worried rather than reassured, especially when they see her on social media. The videos and posts leave people concerned and scratching their heads, it looks like we’re seeing someone who is still struggling.”
Despite being one of the best-selling music artists of all time, Britney left fans gutted in 2022 when she insisted she’ll “probably never perform again”.
She said on social media at the time: “I’m pretty traumatized for life and yes I’m p****d as f**k and no I probably won’t perform again just because I’m stubborn and I will make my point.”
And it’s the lack of ambition for performing – something she once thrived on – that has pals seriously concerned and wondering what she’ll do with her life if she doesn’t return to the stage.
“The overwhelming feeling among those who care about her is sadness,” our insider said. “Nobody is questioning her right to live life on her own terms, but there are fears that she’s still searching for happiness and hasn’t found the peace that everyone hoped freedom would bring.
“They look at Britney and see a woman who appears deeply lonely, increasingly disconnected and still trying to find her place in the world all these years later.”
Coronation Street fans are worried that actress Sydney Martin is about to leave her role as Betsy Swain on the ITV soap after two years of melodramatic twists and turns
Coronation Street fans are worried that Betsy Swain is about to leave the ITV soap
Coronation Street fans are worried that Betsy Swain is about to leave the ITV soap. The Speed Daal waitress, who has been played by Sydney Martin since 2024, has been through an awful lot during her two years in Weatherfield.
Just over a year ago, Betsy lost boyfriend Mason in a knife attack, was then shot by her own mother DS Lisa Swain, who faced no consequences for her actions, and was landed in a freak situation when her other mother Becky came back from the dead, having faked it as part of a corrupt police coverup.
Following on from all that drama , Betsy recently discovered a dead body that turned out to be that of Theo Silverton (James Cartwright) at the end of the much-hyped Murder Week.
In scenes set to air in the coming days, Betsy confides in best friend Laure (Cait Fitton) that she’s been offered a place at the London College of Fashion but she’s worried about leaving Dylan. It’s yet to be seen just how Dylan will react and, on top of that, Betsy explains that she is yet to inform her mother.
Fans of the world’s longest-running TV soap have instantly started to speculate that Sydney, who appeared in Assassin’s Guild before joining Coronation Street, is set to make a dramatic exit from the ITV soap.
Taking to X, one fan said: “betsy off to london? [sad face emoji],” whilst another posted a picture of Carla, Lisa and Betsy and said: “Don’t spilt them up please #corrie I think Lisa will take this hard and Carla will help both Betsy and Lisa to see it from each others perspective.
Another said: “You can just imagine Carla saying something like oh you’ll be fine Betsy in London I could tell you stories about what me and Michelle got up to, and Betsy saying something like and even to this day they involve the police.”
Another wondered if this meant some sort of spin-off was on the cards. In the past, the programme has done various spin-offs such as Just Rosie, which followed Rosie Webster (Helen Flanagan) on her quest for a modelling career, whilst a string of DVD releases like A Knight’s Tale and Out Of Africa were issued in the late 2000s.
Posing the theory, the fan wrote on X: “Is there any indication that Betsy going to London could be a limited summer off-shoot series like Hollyoaks Later where all the teens shared a summer house (obviously without the serial killer). But it will be Betsy’s adventures in the big city?”
It all comes after actress Sydney Martin, 24, was revealed to have been cast in a short film titled Favourite earlier this year. Filmmaker Georgia Leigh-Taylor said: “I’m so thrilled to announce the incredible Sydney Martin and the brilliant Isabelle Smith will be playing Mel and Ashley in my upcoming short film called Favourite.
“After graduating from the same acting school, Sydney and Izzy have both been working professionally in television since 2024, building exciting careers for themselves, taking on powerful storylines, and earning well-deserved recognition.
“Favourite is a dual-timeline drama exploring the lives of best friends Mel and Ashley both as teenagers, and as adults.”
Coronation Streetairs Monday to Friday at 8:30pm on ITV1 and is available to stream from 7am on ITVX.
German MEP Bernd Lange, chair of the European Parliament’s trade committee, has warned that the long-running Airbus-Boeing dispute could jeopardise the EU-US trade agreement struck last summer if transatlantic tensions flare again in the coming weeks.
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The implementation of the Turnberry Agreement, clinched in July 2025 by US President Donald Trump and European Commission President Ursula von der Leyen in Scotland, is entering its final stretch, with EU lawmakers expected to approve it in a vote next Tuesday.
However, the five-year truce between US aerospace giant Boeing and its European rival Airbus over mutual subsidy allegations expires on 11 July, with the Trump administration and the European Commission yet to agree to extend it.
“Will this lead to another escalation? Nobody knows,” Lange, the Parliament’s lead negotiator on the EU-US deal, told journalists on Thursday during a meeting with fellow Socialist lawmakers.
The MEP is concerned that a renewed aerospace dispute could further strain transatlantic trade ties after a year of intense tensions.
“I hope this will not blow up,” Lange told Euronews.
Turnberry deal remains fragile
The battle between Boeing and Airbus dates back more than two decades. The US first brought a case before the World Trade Organization arguing that the EU was illegally subsidising Airbus. Brussels responded with its own complaint, accusing Washington of unlawfully supporting Boeing.
The dispute eventually spiralled into a tariff war, with both sides imposing punitive duties on products ranging from wine and spirits to cheese and tobacco, affecting $11.5 billion worth of trade.
A truce was reached in 2021 under the Biden administration, taking effect on 11 July that year and suspending retaliatory measures for five years. However no extension has been announced since.
“Discussions with the US are ongoing to ensure stability and certainty and to continue the suspension of countermeasures on both sides,” Commission deputy chief spokesperson Olof Gill told Euronews.
In its Trade Policy Agenda 2026, the Trump administration said the US Trade Representative would decide in July “whether to take action in the Section 301 investigation involving the enforcement of US rights in the World Trade Organization disputes involving large civil aircraft”.
The US is able to impose tariffs on trading partners under section 301 of the Trade Act of 1974.
Last week, Washington threatened to impose 10 percent tariffs on EU goods over forced labour following a Section 301 investigation. If implemented, those duties would be added to existing most-favoured-nation tariffs, pushing average US tariffs on EU goods above the 15 percent ceiling agreed under the Turnberry deal.
Under the agreement, which EU lawmakers are expected to adopt next week, the EU committed on its side to eliminate its duties on US goods. However, lawmakers fought hard to include safeguards to protect the deal from future US tariff threats and ensure the 15 percent cap is respected.
The agreement has always appeared fragile. Trump has repeatedly used tariffs as leverage in non-trade disputes, from his push for the acquisition of Greenland earlier this year to his more recent threat to impose 25 percent tariffs on EU cars after German Chancellor Friedrich Merz criticised the war with Iran.
Should the Airbus-Boeing dispute reignite, it could give the US president another pretext to unravel the 2025 agreement.
The drone entered Latvian airspace due to ‘Russian electronic warfare’, the military says.
Published On 8 Jun 20268 Jun 2026
NATO fighters have scrambled to shoot down a drone that entered Latvian airspace from Russia.
The Latvian military said on Monday that French aircraft had destroyed “a foreign unmanned aerial vehicle that had entered Latvian airspace as a result of Russian electronic warfare”, without saying where the drone originated.
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The incident adds a growing list of incursions from the Russia-Ukraine war into neighbouring countries that are part of the NATO alliance, sparking fears of escalating spillover effects as Moscow’s siege on Ukraine continues apace.
“Thank you to our French allies for shooting down the drone that penetrated Latvian airspace!” Riga’s Foreign Minister Baiba Braze wrote on social media.
Latvian Prime Minister Andris Kulbergs heralded the “swift decision-making and professional action”.
Defence Minister Raivis Melnis told reporters the drone was shot down just after 9am local time (07:00 GMT) near the village of Berzgale, located about 30km (18 miles) from the Russian border. No one was hurt, and no property was damaged, Melnis said.
The French military said in a statement that the jets took off from Siauliai airbase in northern Lithuania and destroyed the drone “over an uninhabited area”.
It added that the incident demonstrated France’s “commitment to contributing to the security of Europe’s eastern flank”.
Authorities had previously warned residents in some parts of eastern Latvia to shelter in place because of the threat.
Ongoing threat
Countries in the region have reported repeated drone incursions from air and sea in recent months, spawning concerns over the widening impact of Russia’s war on Ukraine.
The issue has raised the political pressure in Latvia, leading to the resignation of Prime Minister Evika Silina last month.
The increased frequency of the reports comes as Ukraine has increased its attacks on Russia, with Moscow deflecting drones using electronic jamming. The statement from the Latvian military regarding “Russian electronic warfare” appears to suggest the drone shot down likely came from Ukraine.
Fragments of a Ukrainian drone were also found in a field in Moldova on Monday after it entered from Ukraine, an incident that officials also blamed on Moscow.
Last week, a maritime drone exploded in Romania’s Constanta port. Kyiv later confirmed it involved a Ukrainian drone that was knocked off course by Russian electronic interference.
However, it was a Russian drone that hit an apartment building in eastern Romania in late May, injuring two people and prompting Bucharest to call for NATO to speed up the transfer of anti-drone capabilities.
European Commission President Ursula von der Leyen warned after that crash that Russia’s war on Ukraine is “increasingly becoming a direct threat to countries on our Eastern border” and said solidarity with them was “absolute”.
The French military jet that shot down Monday’s drone is part of the NATO Baltic Air Policing mission, which has patrolled the skies of Latvia, Lithuania and Estonia since they became part of NATO in 2004.
European Commission President Ursula von der Leyen warned that the maritime drone was a ‘direct consequence’ of the Russia-Ukraine war.
Published On 5 Jun 20265 Jun 2026
A maritime drone has exploded in Romania’s Constanta port, with several other drones discovered nearby.
The Romanian Ministry of National Defence said on Friday that the drone had self-detonated at 10:30am local time (07:30 GMT). The incident is just the latest incursion along NATO’s eastern flank, raising concern over the increasing spillover from Russia’s war on Ukraine to neighbouring states that are part of the Western military alliance.
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The drone exploded near an oil terminal, without causing injuries. Interior Minister Raed Arafat said the port was evacuated after the detonation, and residents along the Black Sea coast were warned to take cover as helicopters surveyed the area for other vessels.
Kyiv later said it had informed Bucharest that Friday’s incident involved a Ukrainian maritime drone that was knocked off course by Russian electronic interference.
“While carrying out missions in the Black Sea operational area, one of the Ukrainian Navy’s unmanned surface vessels came under the influence of the enemy’s electronic warfare systems, lost control, and ended up near the coast of Romania,” the Ukrainian navy said.
Romanian President Nicusor Dan noted on Facebook that this was the “second security incident this week on the Romanian seaside”.
Earlier this week, Romania’s navy detonated a Russian YaRM-type anti-landing mine that had drifted to its Black Sea shore.
Last week, a Russian drone crashed into an apartment building in Romania, increasing fears that the war started by Russia’s invasion of Ukraine in February 2022 increasingly risks spilling over to the region.
European Commission President Ursula von der Leyen warned on Friday that the maritime drone was a “direct consequence” of the Russia-Ukraine war.
“It is increasingly becoming a direct threat to countries on our Eastern border. Our solidarity with every Member State exposed to these threats is absolute,” von der Leyen wrote.
“And our response must match the urgency. Europe is investing massively in anti-drone capabilities, air defence and early warning systems,” she added.
Romania, which shares a 650km (400-mile) land border with Ukraine, has reported dozens of airspace breaches amid the four-year war, generally blaming Russia, and has asked NATO to help it bolster air defences.
The spillover of the war is also affecting non-NATO countries.
Azerbaijan’s Ministry of Foreign Affairs reported on Friday that five of its citizens were killed and three injured after attacks on two cargo vessels, which did not belong to Baku, in the Sea of Azov.
Kyiv said earlier that its drones had hit five ships in the ports of Mariupol and Berdyansk – which sits between Russia and the Russian-occupied eastern regions of Ukraine.
Commander of the Ukrainian drone forces, Robert Brovdi, asserted that the vessels were involved in “stealing” Ukrainian grain and transferring military cargo.
In a typical midterm year, Donna Layne casts her ballot long before election day.
But this time around was different for the 75-year-old Democrat. Late-cycle controversies and fear of a “wasted vote” leading to a lockout for Democrats in the race for California governor meant she didn’t make her final decision until Friday.
California Democrats have been wringing their hands for weeks about who would emerge as front-runners in the crowded race to replace termed-out Gov. Gavin Newsom. The sudden departure of high-profile candidate Eric Swalwell amid sexual assault allegations and California’s jungle primary system, which sends the top two vote-getters to the November general election regardless of their party affiliation, added pressure for Democrats to coalesce around candidates who had the best chance of advancing.
“I was concerned,” Layne said as she slid her ballot into a drop box. “I wanted to make my ballot count and I was afraid that there might be two Republicans because they had been polling pretty high, so I wanted to be strategic about it.”
On Friday morning, voters — predominately Democrats like Layne — trickled into the Orange County Registrar of Voters in Santa Ana to turn in their ballots. A few told The Times they frequently wait to vote until the days leading up to the election so they can watch all the debates and get the most up-to-date information about the candidates.
But most said they hung onto their ballots this year for far longer than usual.
As of Friday, 19% of California Republicans had already cast their ballot, compared with roughly 16% by the same time in the 2022 primary cycle, according to data from Political Data Inc.
An election worker separates ballots from vote by mail envelopes to be tallied at the Los Angeles County Registrar-Recorder/County Clerk Ballot Processing Center on Thursday in City of Industry.
(Gary Coronado/For The Times)
Meanwhile, only 14% of the state’s far-more-numerous registered Democrats have returned their ballots, down from 17% at this point in 2022. Only 29% of Democrats age 65 years and older — generally enthusiastic voters — had returned their ballots, down from 33% in 2022, data show.
But that doesn’t mean that Democrats will stay on the sidelines. Data show Democrats have started returning their ballots in earnest over the past several days, a trend that’s likely to continue through election day, said Paul Mitchell, the vice president of Political Data Inc.
“It’s the predominance of this fear that they’ve heard in the media — and that’s largely abated — that a Democrat won’t make it to the runoff,” Mitchell said. “In fact, there’s a growing sense that we could have two Democrats make the runoff, so that fear has — for the political class — gone away, but voters are still clinging to it.”
Democrat Xavier Becerra, the former Health and Human Services secretary, has risen steadily in recent polls, positioning him well to potentially advance to November. He was the leading candidate in a poll released Thursday by UC Berkeley’s Institute of Governmental Studies that was co-sponsored by the Los Angeles Times, garnering support from 25% of likely California voters.
Former U.S. Secretary of Health and Human Services and California Atty. Gen. Xavier Becerra, a front-runner in the race for governor, shares a light moment with supporters at the UFCW Local 1167 Union Hall in Bloomington, on Friday.
(Genaro Molina/Los Angeles Times)
Slightly behind with support from 21% of likely state voters was Republican Steve Hilton, a former Fox News commentator whom President Trump has endorsed. In third place with 19% support was another Democrat: Tom Steyer, a hedge fund founder and environmental activist.
With support increasing for Becerra, Hilton and Steyer since the last Berkeley IGS/Times poll in March, the survey provided the clearest indication yet that those candidates have separated themselves from the rest of the field.
Support for Riverside County Sheriff Chad Bianco, the only other major Republican candidate in the race, dropped 5 percentage points from the March poll to last week’s, putting him in a distant fourth at 11%. Former Democratic Rep. Katie Porter saw her support drop by almost half to 7%. Other prominent Democrats — San José Mayor Matt Mahan, former Los Angeles Mayor Antonio Villaraigosa and state Supt. of Public Instruction Tony Thurmond — were all in the low single digits, the poll found.
Republican candidate Steve Hilton speaks at a news conference outside the CIF State Track Championship in Clovis, where transgender athlete AB Hernandez will be was to compete Friday.
(Tomas Ovalle/For The Times)
Roughly a dozen registered Democrats interviewed by The Times said they cast their ballots last week for the person they thought would have the best chance of making it through the state’s jungle primary, even if it wasn’t their ideal candidate.
“I love Katie Porter,” said Connie Wadsley, 78. “I really do, but I just didn’t see her as being able to pull it off. I just don’t think society is ready for a woman governor as much as that pains me to say.”
In the end, Wadsley and her husband, Victor, cast their ballots for Steyer. Becerra, she said, is too much of a career politician for her liking, but Steyer impressed her with his promise not to take corporate money and his position on social justice issues.
“I think we need to shake things up in this state — in this nation,” she said. “Yeah, [Steyer] is a billionaire and I’m not really excited about that, but he truly seems to be spending his money on things that I feel are important.”
For some voters, the sheer volume of gubernatorial candidates — 61 in all — was off-putting. Some even organized gatherings with politically like-minded friends to discuss the best course of action.
“I think it was really overwhelming for a lot of people, especially when they got their ballot and saw all of those names,” said Linda Verraster, co-president of the Democratic Women of South Orange County. “There was this fear of making a mistake — air quotes — that would lead to two Republicans in the runoff.”
Gov.-elect Arnold Schwarzenegger, left, and Gov. Gray Davis joke with each other as Davis shows Schwarzenegger the governor’s private office at the Capitol in Sacramento on Oct. 23, 2003.
(Rich Pedroncelli / Associated Press )
The race seems somewhat reminiscent of the 2003 recall election when 135 candidates vied to replace then-Gov. Gray Davis amid the state’s energy crisis. Actor Arnold Schwarzenegger, a Republican, won decisively with roughly 48% of the vote.
But this race differs in a few key ways, experts say.
Mainly, while all of the top candidates have impressive resumes, there’s a lack of star power that could help propel someone to the forefront. Instead, Democrats “have an option of like moderate Dem to slightly less-moderate Dem,” said Matt Lesenyie, an assistant professor of political science at Cal State Long Beach.
“There’s a lot of people, but they occupy a very similar lane and I think that’s been a lot of the problem,” he said. “They’re loathe to really critique some of the foundational problems like a real ideological opponent would.”
Verraster put it even more simply: “There’s no unicorn.”
Still, she’ll be happy if either of the two Democratic front-runners — or both — make the ballot.
US-based investment firm Castlelake confirmed it is in the ‘early stages’ of weighing up a potential takeover offer for budget airline easyJet following recent speculation
The firm confirmed it is in the ‘early stages’ of a potential offer for easyJet (stock image)(Image: PAUL ELLIS, AFP via Getty Images)
A major investment firm has issued a statement and said it is considering a possible takeover bid for easyJet.
US-based Castlelake confirmed it is in the “early stages” of weighing up a potential offer for the budget airline following recent speculation.
The company stressed that “no approach has been made to the Board of easyJet” and warned there was “no certainty” that a bid would actually happen. Under takeover rules, Castlelake now has until June 26 to either announce a firm intention to make an offer or walk away.
The development comes just days after easyJet insisted it still plans to operate its full summer schedule despite fears over aviation fuel supplies linked to the Iran war.
EasyJet chief executive Kenton Jarvis said the airline had seen “absolutely no issues with fuel supply” at airports across the UK and Europe.
He told the BBC Today programme: “We’ve seen absolutely no issues with fuel supply at any of our airports in the UK, across Europe, or indeed beyond. We stay in very close contact with our fuel suppliers, airports, governments, and they are equally raising no issues looking forward.
“What is true is obviously there’s a lot less oil coming from the Gulf region, but fuel suppliers have successfully diversified with production increased in Norway, in West Africa, in the Americas. Refining capacity for jet fuel has also increased substantially outside of the Gulf region.”
The airline recently reported losses of £552 million for the first half of its financial year – a 40% increase compared with the previous year. Despite the losses, easyJet said demand for the summer holidays remains strong, with travellers continuing to book trips closer to departure dates.
Mr Jarvis said: “Demand seems to be very strong in what we call the late market. As we ran through April, demand was very strong for the month of April. We’re seeing it again in May.
“But as you look further out, people are more cautious. People are waiting and watching, but they are booking as as you approach, and I expect that strong late booking market to run through the summer.”
The airline has also faced disruption linked to the EU’s new biometric border checks. Mr Jarvis described delays caused by the entry-exit system as “completely unacceptable”.
“I’d encourage all the European countries is to use the flexibility that’s been given to them by the European Commission, that they can phase the introduction of this if they see queues in peak times,” he said.
“They can go back to normal border force control with stamping of passports, so they should use this.”
Andrea Luna, Jules Olivas, Joshua Olivas and Jessica Castro of Anaheim, Calif., shelter in their cars at the John F. Kennedy High School evacuation center on Saturday after leaving their home due to a chemical leak from a storage tank at the GKN Aerospace facility in Garden Grove, Calif. A failing 34,000-gallon tank of methyl methacrylate overheated, prompting tens of thousands of evacuations in the Garden Grove area. Photo by Ted Soqui/EPA
May 24 (UPI) — Tens of thousands of Orange County, Calif., residents remained evacuated Sunday as officials nervously watched the condition of a failing, 34,000-gallon tank containing dangerous chemicals.
Orange County fire officials said a visual inspection of the overheated tank in Garden Grove, Calif., late Saturday showed it has potentially developed a crack, which could reduce the possibility of a catastrophic explosion but increase the likelihood of a massive spill of liquid methyl metacrylate.
“Right now, we’re vetting and validating that information,” Orange County Fire Authority Interim Chief T.J. McGovern said in a video update of the tense situation at the GKN Aerospace facility, located about 33 miles southeast of downtown Los Angeles.
The discovery of a potential crack in the tank “could change the trajectory and our strategy for this event,” he said.
A crack in the tank “may avoid the two concerns that we all had,” Calif. State Sen. Tom Umberg told KCBS-TV. “One was an explosion, the other was a leak of liquid material vaporizing into a toxic fume, a toxic plume.”
California Gov. Gavin Newsom on Sunday transmitted a request to President Donald Trump to declare a federal emergency in support ongoing response operations in Orange County.
The request came a day after the governor’s proclamation of a state of emergency as officials raised the alarm about the possibility of a catastrophic explosion and a major release of toxins.
“California doesn’t wait for disaster to unfold, we act early to protect lives and communities,” Newsom said. “Working together with our local and federal partners, we’re strengthening our ability to respond quickly and effectively in Garden Grove and across the surrounding communities and ensuring that first responders have the resources they need to keep people safe.”
The state says it has already activated its emergency operations center, deployed mutual aid resources and has pre-positioned emergency personnel — including fire, law enforcement and medical teams — in the area around the GKN Aerospace facility, which is just 7 miles west of the Disneyland amusement park.
Nearly 50,000 Orange County residents remained under mandatory evacuation orders on Sunday as an interagency response team eyed the malfunctioning tank, which holds methyl methacrylate, or MMA, a flammable, toxic and highly volatile substance used in the production of acrylic plastics.
Residents were evacuated Friday after a chemical vapor leak was spotted coming from the tank, which has a malfunctioning valve and is unable to be neutralized. Officials say the valve has seized due to a chemical reaction with the MMA.
Water cooling by firefighters has so far kept the tank’s temperature stable and no injuries have been reported.
No unusual readings of toxic material have yet been detected in the area.
The evacuation zone is in a densely populated area of Orange County and has multiple public facilities including schools, hospitals, nursing homes, fire and law enforcement stations.
A unified command has been established between Orange County Fire Authority, Garden Grove Police Department and Orange County Health Care Agency to deal with the emergency.
JODIE Marsh was once one of the most photographed women in Britain, with her belt-braced boobs becoming one of the defining images of early Noughties celebrity culture.
Back when today’s reality stars were still in nappies, and the world had ‘It Girls’ instead of influencers, Jodie was everywhere – splashed across lads’ mags, starring in her own TV shows and commanding huge pay cheques at the height of her fame.
Jodie starred in a series of her own reality shows in the early NoughtiesCredit: PA:Press AssociationJodie arrives at Chelmsford Magistrates’ Court following assault chargesCredit: Louis Wood – Commissioned by The Sun
Jodie first shot into the spotlight, tipped as the edgy alternative to glamour queen Jordan – now known as Katie Price – with the pair locked in a fierce rivalry as they battled to become Britain’s biggest pin-up.
More recently, it appeared Jodie had finally found peace after quitting showbiz to run an animal sanctuary in Essex.
The model devoted herself to rescuing animals and regularly shared videos introducing followers to meerkats, foxes, lemurs and marmosets living at the farm.
But pals say a string of devastating events slowly pushed her into isolation.
Now the former Celebrity Big Brother star is facing assault charges following an alleged incident at her Essex animal sanctuary – as pals tell The Sun of their fears for the once larger-than-life star.
One friend told The Sun: “After her mum died, something in her just switched off.
“She became far more isolated, and it was worrying.
“The irony is she spent years desperate to be photographed and talked about, but now the last thing she wants is to be the centre of attention.”
Jodie was left heartbroken in September 2020 when her beloved mum Kristina died following a battle with cancer.
The 47-year-old previously spoke of her anguish after claiming her mum was sent home from the hospital during the Covid pandemic despite battling an aggressive cancer.
Friends believe the loss deeply affected the star, who became increasingly withdrawn from public life in the years afterwards.
A pal said: “She only wanted to be around her animals – they are the only thing that brings her any joy.
“She felt safe around them, so she stayed in her own little bubble. “
Three years later, Jodie put her £1.5million Essex farm on the market following bitter tensions linked to the sanctuary and the animals she kept there.
While many local families regularly visited the sanctuary with their children, Jodie also became embroiled in rows with neighbours.
She claimed Uttlesford Council’s refusal to grant a dangerous wild animal licence was unreasonable amid allegations she had previously taken a meerkat to the pub.
Jodie grew infamous for her barely-there boob-belt looksCredit: PA:Press AssociationPals close to Jodie says she only wants to be around her animalsCredit: InstagramJodie Marsh pictured with her mum, Kristina, who died after battling cancerCredit: InstagramJodie pictured with her beloved meerkat MabelCredit: John McLellan
Our source shared: “She fell out terribly with her neighbours and absolutely dreaded seeing them – she became convinced they all hated her too, and it caused a lot of anxiety for her.
“Ultimately, she just wanted to live in peace. Having tensions in a place that is meant to be your sanctuary is just the worst.”
An emotional Jodie later admitted she planned to “go far, far away” after the devastating blaze.
She said, “I don’t care about my house being destroyed; all I care about is losing two marmosets.”
A close pal explains: “The fire destroyed more than just the house, emotionally, that was the moment she completely unravelled.
“Behind all the glamour and bravado is somebody incredibly vulnerable and sensitive.”
Friends claim Jodie became increasingly isolated following the blaze and breakup of her most recent relationship.
They added: “Some of her friendships have fallen by the wayside because contact dwindled. Her older friends have been worried about her and did try and reach out, but not all of them heard back. She has a very small cirlce around her now. There was definitely some self-sabotage going on on Jodie’s behalf, although it’s not all on her.
“When Jodie is in a tough place, she does have a tendency to pull away, but her mates that have lost contact with her are still hopeful she will come back.”
Her last publicly confirmed partner was builder Mark, but the pair reportedly split in March 2024 after he struggled with the quiet lifestyle at the farm.
Jodie with previous boyfriend MarkCredit: jodiemarshtv/InstagramJodie in her glamour model heyday back in 2006Credit: PA:Press Association
A pal said: “She does struggle with loneliness, but she also struggles to trust people, so it’s a bit of a catch-22.
“A lot of people in her life have badly scarred her, so it’s understandable she has her walls up a lot of the time.”
Last month, Jodie appeared in court accused of assaulting a man at the sanctuary. Essex Police confirmed a woman had been charged following an alleged incident at the site.
The former reality star was also accused of using threatening, abusive or insulting words or behaviour to cause or provoke violence against the man and a woman.
Appearing at Chelmsford Magistrates’ Court, she pleaded not guilty and was told a trial would take place in May 2027.
With a potential prison sentence looming, Jodie previously claimed neighbours had trespassed onto her land and filmed her animals before posting edited clips online to make them appear “skeletal”.
Speaking about one alleged confrontation, she said: “I’m scared to sleep in my own house. I’m scared to go out.”
Now, friends fear the once vivacious glamour model has completely retreated from the world she once dominated.
One pal told us: “It’s really sad what’s happened to Jodie, and we all really feel for her.
“She’s deleted her Instagram and now fully blocked the outside world from her life. It’s just her and her animals now.
“She lived this mad showbiz life for so long, it’s like she became addicted to the chaos and forgot what being normal was like.
“People think the fame disappeared overnight, but the truth is it was a slow-motion car crash.
“It’s been very sad to watch, but the one thing about Jodie is she is made of tough stuff and, like she has in the past, she’ll likely pick herself back up again.”
When approached by The Sun for comment, Jodie claimed the biggest ‘nightmare’ for her over the last few years, beyond the fire, is that she has been ‘harassed and stalked’ by her neighbours.
She accuses them of trying to bully her out of her home.
“I find it hard to trust people but the circle I have around me now are amazing and worth their weight in gold,” she says. “I trust them with my life. Everyone who comes to my home never wants to leave because it’s magical here.
“The animals are all so special and my life revolves around them. It’s a shame people like my neighbours are trying to ruin it for me. But good always wins over evil and karma is real. I will come out on top. I always do. Watch me.
“I’m living my best life and my dream life and these people are obsessing over me. That can’t be a fun way to live (being obsessed with another human you don’t even know). I just want to be left in peace to run my sanctuary with my true friends and family.”
COMEDIAN Katherine Ryan has come up with a theory as to why Katie Price has fallen for the charms of estranged husband Lee Andrews – and it’s due to past ‘trauma’.
Katherine Ryan has suggested Katie Price is suffering from ‘rescuer syndrome’Credit: InstagramComedian Katherine has expressed her fears for Katie and her previous ‘trauma’Credit: Instagram
“So much unkindness around this story like so many of us haven’t also been bewitched by some bullsh*t,” the presenter wrote alongside the video featuring the former glamour model.
Within the footage, she told followers: “He’s been missing for five days. Katie doesn’t know where he is. She was a guest on Good Morning Britain.
“She was supposed to appear with him to address all these rumours that he’s a scammer and she appeared by herself, obviously, and she’s like, Lee’s stuck in Dubai, he can’t get out yet.
“People are being so unkind about it, they’re like, Katie is involved in this, there’s no possible way that someone can look past this amount of evidence into thinking that someone is this virtuous kind human being that she says he is.”
She continued: “I think what’s happened is this: she has a rescuer syndrome, for whatever reason.
“Being the firstborn, she’s very different to her brother and sister.
Katie Price was left to defend her husband on a GMB interview without Lee AndrewsCredit: ITVKatie fell for Lee Andrews and the pair married after just a weekCredit: mistraesthetics/Instagram
“She’s had trauma that mixes things up, but I think she’s also made so many romantic mistakes publicly that this one is so big, she’s fearing, oh, if this all comes out and he’s exposed as this scammer then I look stupider than ever, everyone’s gonna say I’m foolish.
“She cannot let that be true. So it’s a mix of like shame and loyalty. She just wants it to be true so badly that she’s constructed this reality where she’s hopeful.
“I think it’s a really sweet thing, like, yeah, it looks dumb to the rest of us. Yeah, she did not practice due diligence as she rarely does, because she married him after a week.
“All of that is bad. There are children involved in her life, she should potentially try to unravel herself from these romantic calamities and focus on her family, but she has said he makes her happy.
“She’s just so hopeful that it’s true. In the past, I’ve been in relationships not as bad as any of Katie’s, I don’t think, but some dodgy ones where when your friends and family start to express their horror that you are with this obvious loser.”
She admitted: “You just dig your heels in harder. You’re like, no, I can’t have this be untrue. I am going to show my loyalty. I’m going to sit here next to this man.
“I’m going to fix whatever problem he has. I’m going to show him enough love that all of these things that he says are true are magically going to be true.”
Concluding her opinion on Katie’s estranged husband’s whereabouts, she said: “Right now, he’s been missing for, I think, this is the sixth day, and she truly believes he’s maybe been kidnapped and hopefully this is the final straw for her.”
Fans commented: “Call me delusional, but I just feel sorry for Katie. It just seems like she just wants to be loved, and don’t we all.”
A second supported: “The amount of sh*t I have believed over the years from an attractive man is incredible.”
A third agreed: “I think you have hit the nail on the head. She has been treated so bad in relationships (we have all seen the documentaries). Someone has shown her love and she has gone with it.”
“I’ve always felt desperately sorry for her… She just wants to be loved,” echoed another.
Lee has disappeared without a trace leaving Katie ‘worried sick’Credit: InstagramThe TV star has expressed her concern for Katie over her missing husbandCredit: Getty
Singer Paloma Faith interjected: “I don’t know that it’s dumb I think I wanna give her a big cuddle and say it’s ok. Let’s get back to therapy (as I always have!) No one will rescue her until she rescues herself.”
Despite investor fears, private credit is far from a meltdown because not all risks are the same.
The cracks in the private credit market appear to be widening.
Private credit is a significant alternative to syndicated bank loans as a source of corporate capital provided predominantly by private equity (PE) firms. The market is heavily involved in financing data center capacity, which is burgeoning along with the demand for artificial intelligence. Investors fear that the artificial intelligence capital spending boom poses a threat to the software industry and may be creating a market bubble that leaves private credit funds overly exposed.
Yet there are reasons to believe the potential damage to the private credit market remains manageable and contained.
This article appears in the May 2026 issue of Global Finance Magazine. .
To be sure, when auto parts seller First Brands announced its bankruptcy late last year, which was financed by a credit fund sponsored by investment bank Jefferies Group, it raised alarms in some quarters. Underscoring the opacity of private credit, which is largely unregulated, were allegations that First Brands had borrowed against the same receivables more than once. Meanwhile, defaults elsewhere in the credit sector hit a record high in 2025, according to Fitch Ratings, reaching a 9.2% rate, more than double the 3.6% recorded in 2023. Default rates this January continued upward, reaching 9.4% before slightly easing in February to 5.4%.
As the First Brands financing reveals, banks as well as PE firms are involved in private credit, either by financing investment funds sponsored by Ares Capital, Antares, Apollo, Blackstone, Blue Owl, and the like, or via funds of their own. With pension funds, insurance companies, and increasingly, individuals investing in private credit, law firm Quinn Emanuel warned in a March client memo that the trend may pose systemic risk, even though private credit is still a relatively small part of the overall loan market.
“The result is a transmission chain that runs from the technology companies, through private credit originators, to the regulated banks that lend to them, to the insurers and pension funds that invest alongside them, and potentially to the retirement accounts of ordinary Americans,” the memo’s authors warned.
Only a minority of small corporate borrowers are in trouble, and companies with EBITDA of $25 million or less experienced significantly higher default rates—15.8%—than larger companies in 2025. Healthcare and consumer companies have higher default rates. Fitch also notes that realized losses for first-lien lenders have been limited, with most cases resulting in full or high-percentage recoveries.
Notably, private credit default rates historically tend to run higher than those on broadly syndicated loans, a trend some observers attribute to more customized, and sometimes distressed, lending terms. The January uptick was largely driven by “distressed” exchanges and payment-in-kind (PIK) interest, according to Fitch.
AI Anxieties
Alen Lin, Fitch Ratings
Concerns are growing about PE funds exposed to software. Investors worry that AI will disrupt the software industry, leading to defaults within portfolios of private-credit loans to the sector. But most such funds are diversified, and even those that aren’t may not be as vulnerable to disruption by AI as investors fear. That’s because the large language models underpinning AI require application program interfaces to operate, so software may still be needed to facilitate the technology’s use.
“Implementing AI still requires significant effort to get it to work in a particular environment,” Alen Lin, senior director of North America corporates, technology, at Fitch Ratings, told audiences at a recent webinar held by the firm.
Of course, much depends on the type of application involved. As Fitch notes, companies producing software that is either deeply embedded in enterprise technology systems, leverages proprietary data, or operates in more regulated industries like health care and financial services could benefit from the development of AI. By contrast, those producing software for applications that aren’t so embedded, such as digital content creation or certain types of analytics and visualization tools, are more exposed to AI disruption.
Even if the AI bubble bursts, that risk is unlikely to evaporate, Lyle Margolis, senior director in Fitch’s corporates group, where he manages its private credit business, said in an interview with Global Finance. “AI is here to stay and is going to be disruptive to certain segments of the software market,” he says.
Yet the risks may be overstated. Whether measured by leverage, interest coverage, or EBITDA, “the trends in the software sector have actually been somewhat positive,” he noted. Refinancing risk for the sector is relatively benign. And data-center build-out provides one of several “significant tailwinds” for private credit in the software sector, added Dafina Dunmore, Fitch’s senior director of North American non-bank financial institutions.
Another mitigating factor: Redemption risk, which can see large outflows of capital. However, it is limited largely to business development companies (BDCs), a more liquid, retail-oriented variety of private-credit investment vehicle. Blue Owl, for example, recently blocked redemptions at one of its BDCs and liquidated some others. And the $33 billion Cliffwater Corporate Lending Fund, the largest US private-credit interval received redemption requests on 14%.
Although defaults are rising for these portfolios, redemption risk isn’t a problem for most credit funds, because investors are locked in until maturity. In addition, stress is concentrated in direct lending: corporate loans that fund working capital and growth.
Hidden Risks
To be sure, many such risks may be hidden, given private credit’s opacity. Blue Owl’s exposure to software loans, among the highest in the industry, is roughly twice as extensive as its public filings indicate, according to a recent analysis by the Wall Street Journal. The paper also found other PE firms whose credit funds exhibit software exposure exceeding what’s publicly disclosed include Blackstone, Ares, and Apollo.
Investor worries may exacerbate Blue Owl’s redemption woes since its data center financing deals involve accounting practices that obscure the risk involved. The main source of concern is likely Blue Owl’s $27.3 billion financing of Meta’s Hyperion data center in Louisiana.
Yet, S&P rates the bond backing the deal, called Beignet, as Meta’s obligation, reflecting that it bears the risk of default. Indeed, investors seem to like that cash-rich Meta stands behind Beignet. The bond was recently spread over a bond financing the CoreWeave data center, which isn’t backed by the hyperscaler.
Still, some wonder if the risks are adequately priced into these issues.
Quinn Emanuel warns that the vagaries of Meta’s accounting treatment may lead to litigation between the parties over who bears the loss if AI fails to meet expectations and Meta chooses not to renew the lease. Blue Owl finances an Oracle data center in similar fashion, but that bond is trading at a discount to Meta’s, partly because Oracle doesn’t back it and partly because the ultimate tenant is less financially stable OpenAI.
“When we rate data centers, to some extent we look at the credit quality of the ultimate tenant,” says Victor Leung, vice president for project finance at ratings firm DBRS Morningstar.
This type of complexity led Quinn Emanuel to warn in its March 13 memo that, “the AI data center buildout—projected to require $5.2 trillion in infrastructure investment by decade’s end—has spawned complex financing structures that are generating significant litigation risk.”
Mark Koziel, CEO of the International Association of International Certified Professional Accountants and president-CEO of the American Institute of CPAs, says he would raise the issue of current accounting rules for such financing arrangements at an upcoming meeting with the Financial Accounting Standards Board. Also last month, the US Department of the Treasury said it would meet with industry and investor representatives to discuss private credit’s potential risk to the financial system.
Thus far, warnings of a private credit meltdown seem overstated.
Credit funds focused on asset-backed finance (ABF), which is based on the value of a borrower’s assets and is the fastest-growing sector in the market, are relatively immune to stress, thanks to their self-liquidating feature. In contrast to direct loans, principal on asset-backed financings is paid back during the life of the loan. As a result, ABF funds don’t face the same refinancing risk as direct lenders.
Sponsors of direct lending funds “don’t have the benefit of those cash flows directed to pay down the loans,” notes Fitch’s Margolies.
Apart from First Brands’ receivables deal with Jefferies, the ABF segment has yet to be fully tested. But a test may soon be underway: Beignet is also asset-backed. Or sort of.
Debt principal remains outstanding at each renewal point, so it isn’t completely self-amortizing. As a result, DBRS Morningstar’s Leung notes, “you face a risk that your facility will lose its source of revenue.” Hence, Meta’s guarantee that it will make up any loss facing investors if it fails to renew the lease and the facility’s residual value falls below a certain threshold.
That scenario is not far-fetched, Quinn Emanuel warns, noting that it’s expensive to convert an AI data center to general-purpose cloud computing or other uses: “If demand for AI computing contracts, these facilities may function as stranded assets with limited alternative use and depressed liquidation value.”
Finnish authorities scramble fighter jets; defence chief says false alarm but warns of potential repeats while Russian war persists.
Finland has stood down its defence forces after sounding an alarm over suspected drone activities in its airspace.
The authorities said on Friday that suspected drone activity above the Helsinki region no longer posed a threat and that the situation was returning to normal hours after launching an emergency response, including the launch of fighter jets and closure of the capital’s airport.
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The alarm illustrates the tension stalking the region as Finland and the Baltic states eye Russian aggression and daily missile and drone attacks amid Moscow’s continued war on Ukraine.
The Helsinki City Rescue Department had warned the nearly 2 million inhabitants of Finland’s Uusimaa region to stay indoors starting about 4am local time (1:00 GMT), as fighter jets were scrambled. Helsinki’s airport was also closed for about three hours.
Later, President Alexander Stubb wrote on X that authorities had “demonstrated their readiness and capacity to react”, adding that the country was now facing “no direct military threat”.
Kimmo Kohvakka, director general for rescue services at the Ministry of the Interior, called the response a “precautionary measure” and said “daily life can continue.”
The incident arose amid growing concerns about regional spillover from the Ukraine war.
The Baltic states of Estonia, Latvia and Lithuania have reported a series of suspected Ukrainian drones headed for Russia entering their airspace, prompting domestic criticism over their ability to respond to military threats.
The situation has led to a full-blown government crisis in Latvia. Prime Minister Evika Silina resigned on Thursday after a coalition partner pulled support. The move followed the ousting of the defence minister after a drone crashed at a fuel storage facility.
In March, two drones crossed into Finnish territory and crashed after flying low over the sea and southeastern Finland.
Finnish authorities did not indicate the source of Friday’s drone activity.
However, defence forces operations chief Kari Nisula suggested that Finland had received information from Ukraine about drones potentially straying into the country, according to the Reuters news agency.
The military head added that there was no evidence that drones had entered Finland, but that such situations could happen again as long as Russia continues its war on Ukraine.
Prisoner swap
The incident in Finnish airspace unfolded as Ukraine maintained its drone attacks on Russian oil and energy infrastructure, and Kyiv continued counting the costs of a huge strike that killed two dozen people.
Russia’s Ministry of Defence said on Friday that its air defence systems shot down 355 Ukrainian drones targeting Moscow overnight, as well as the border regions of Belgorod, Bryansk and Kursk.
Among the targets was an oil refinery in the central city of Ryazan, about 200km (125 miles) southeast of Moscow, according to the commander of Ukraine’s drone forces.
Fire and a plume of smoke rise in the vicinity of the Ryazan oil refinery, May 15, 2026 [Reuters]
The attack killed three people and wounded 12, regional Governor Pavel Malkov wrote on Telegram. Two high-rise apartment buildings were struck, he said, while debris fell on the grounds of an industrial enterprise.
Meanwhile in Kyiv, the death toll from a Russian barrage on an apartment building on Thursday rose to at least 24 people, including three children, Ukrainian President Volodymyr Zelenskyy said. Forty-eight people were wounded.
Amid the ongoing violence, Russia and Ukraine have moved ahead with a prisoner swap that saw 205 POWs repatriated on each side on Friday. It was the first step of a swap that is planned to ultimately see 1,000 people on each side return home.
The two sides also conducted an exchange of those killed in the fighting, with Russia handing 526 bodies to Ukraine and receiving 41 in return. Both Kyiv and Moscow thanked the United Arab Emirates for mediating the swap.
Zelenskyy wrote on social media that most of the prisoners returned to Ukraine had been in Russian captivity since 2022.
“We will continue to fight for every single person who remains in captivity,” he said.
Choi Seung-ho, head of Samsung Electronics’ largest labor union, speaks to reporters Wednesday after a hearing on an injunction against a labor strike filed by Samsung at Suwon District Court. Photo by Yonhap
Samsung Electronics Co. and its labor union failed to reach a wage agreement Wednesday, raising concerns over a major strike later this month that could disrupt operations at the world’s largest memory chipmaker.
The breakdown came after two days of government-led mediation talks that had been viewed as a last-ditch effort to avert the strike scheduled for May 21.
Union and management have remained sharply divided over performance-based bonuses tied to the company’s earnings related to artificial intelligence (AI).
The union has demanded performance bonuses equivalent to 15 percent of operating profit, along with the removal of the payout cap and the formal institutionalization of the bonus system.
The management, meanwhile, proposed allocating 10 percent of operating profit to bonuses and offering a one-time special compensation package that it said exceeds industry standards.
“Because the differences between the labor union and management did not narrow, we requested mediation and waited for nearly 12 hours, but the proposal only worsened,” Choi Seung-ho, head of Samsung Electronics’ largest labor union, told reporters after the meeting at the National Labor Relations Commission office in the administrative city of Sejong.
Choi said some 41,000 unionized workers have expressed their intention to take part in the general strike, adding that the number could rise to more than 50,000.
“It is meaningless to wait any longer,” Choi said. “We do not plan to hold an illegal strike. We will proceed in a legitimate way.”
Choi added that the union now will focus on responding to Samsung’s request for an injunction restricting the union’s planned strike.
Later Wednesday, the Suwon District Court concluded a closed-door second hearing attended by about 30 people, including lawyers and officials from both sides.
During the hearing, the union argued that the strike would be carried out lawfully within a limited period and that it had no intention of illegally occupying company facilities, making an injunction unnecessary.
The court is expected to decide by May 20 whether to grant the injunction.
Following the breakdown in talks, Samsung Electronics expressed regret over the suspension of the mediation process, while pledging to continue efforts to engage in dialogue.
“The post-mediation process, which the government worked hard to arrange, unfortunately collapsed after the union declared negotiations broken down,” the company said in a press release. It, however, vowed to continue making sincere efforts until the very end to prevent the worst-case outcome from materializing.
The labor dispute at Samsung Electronics, the world’s largest memory chip maker and South Korea’s most valuable company, has raised concerns that a walkout could disrupt production and upend the semiconductor supply chain, as well as hurt the broader economy overall.
Observers say that if a full-scale strike takes place, losses to the South Korean economy, which is heavily dependent on exports, could exceed 40 trillion won (US$26.8 billion).
South Korea’s exports reached a record $219.9 billion in the first quarter of 2026, driven by strong global demand for AI data centers. Semiconductor exports were a major contributor, surging 139 percent from a year earlier to $78.5 billion as investment in AI-related servers accelerated.
Some observers have speculated that the government could invoke emergency arbitration powers to prevent further escalation.
Under South Korea’s labor laws, the labor minister may order emergency arbitration when industrial action is deemed likely to endanger public welfare or seriously harm the national economy.
If invoked, all strike actions would be prohibited for 30 days while mediation and arbitration procedures are conducted by the commission. Emergency arbitration powers have been exercised only four times in South Korea’s history.
A commission official declined to comment on the possibility, saying, “It is not something we are reviewing.”
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BRITISH Airways’ multi-million pound superjumbo refit faces certification delays over fears crew cannot safely restrain drunk passengers in its new business class seats.
The airline is in the process of upgrading its Airbus A380 fleet with its latest Club Suite, which comes with a sliding privacy door.
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But the makeover could hit delays because of concerns over how staff would deal with an air rage passenger on the upper deck.
BA plans to move a small section economy seats off the top floor and replace them with a larger Club World cabin.
Its passenger restraint kit is understood to be approved for economy and premium economy seats – not the new suite-style business seats.
That could leave crew with a major problem if a passenger became violent or disruptive upstairs.
Sources said hauling a violent passenger down the A380’s narrow staircases could put crew and other passengers at risk.
The first aircraft are currently being worked on in Manila, Philippines, as part of the refurbishment programme.
Industry sources have also suggested there may be certification concerns over the weight of the new business seats, which include motors and sliding doors.
Extra weight on the upper deck could affect the plane’s payload limits.
However, any delay may also be linked to wider supply chain issues affecting premium aircraft seats across the industry.
British Airways said the A380 refit programme remains on schedule for 2026.
CHONGQING, China — Three years ago, in the idyllic town of Woodside south of San Francisco, the United States and China held their first high-level talks on the dangers posed by artificial intelligence. President Xi Jinping and his longtime foreign minister appeared serious in their conviction that a channel should be a established between Beijing and Washington — a red phone for AI in case of emergencies.
They authorized a diplomatic effort that would begin in 2024 in Switzerland, only months before the U.S. presidential election. A large U.S. delegation arrived with high hopes that were abruptly dashed, according to four sources who attended the talks. The Chinese contingent dismissed American concerns over runaway AI as academic, almost theoretical, quickly turning the conversation to export controls seen in Beijing as yet another U.S. effort to hold China back.
“They naturally view any American diplomatic initiative involving limitations or restrictions of one flavor or another on a capability as being a trap,” Jake Sullivan, U.S. national security advisor under President Biden, said in an interview.
Despite the distrust — and Democrats losing the White House to Donald Trump — an accord was struck in November of that year in Peru, where both sides agreed to keep AI out of the command and control of nuclear weapons.
“It was a breaking of the seal that we could actually do something on AI,” Sullivan said. “In the transition, I told the incoming Trump team that they should really pick up that dialogue. But the Trump administration’s view was just far more laissez-faire, and they didn’t seem particularly interested in it.”
“That’s all changed in the past few weeks,” he added.
A Trump administration once eager to gun for technological supremacy is now, for the first time, reckoning with the power AI could unleash if left unchecked.
In a surprise reversal, quiet discussions have taken place ahead of President Trump’s state visit to China this week to explore reviving talks on an emergency channel, officials told The Times, prompted by shared alarm in Beijing and Washington over the debut of Mythos, Anthropic’s powerful new model.
One senior administration official told reporters Sunday that the White House was looking to create a channel of communication for AI like others that they have “in many areas that have intense focus with the U.S. and China.”
“I think what that channel of communication looks like, its formality and what that looks like, is yet to be determined,” the official said, “but we want to take this opportunity with the leaders meeting to open up a conversation. We should establish a channel of communication on that matter.”
Mythos’ capabilities are seen across the industry and government as those of an unprecedented cyberweapon, able to infiltrate and exploit digital communication systems — including government databases, financial institutions and healthcare programs — with untold consequences.
Whether an announcement will come to fruition this week is not yet clear. Any talks between the United States and China over AI regulations — designing some kind of arms control agreement governing the use of a technology that neither side fully understands or controls — will be fraught with suspicion, misunderstandings and risk, experts say.
“Right now, there is almost no support from U.S. policymakers to engage in formal discussions on AI governance with China,” said Aalok Mehta, director of the Wadhwani AI Center at the Center for Strategic and International Studies.
“The logic is that this is a winner-takes-all race,” Mehta said, “and that it’s imperative to accelerate AI progress to ensure that the United States wins that race.”
America in the lead
China would enter those discussions with a powerful argument, that U.S. leadership in AI — and the prevailing strategy of American AI companies — is propelling the world to a fraught frontier.
Every major U.S. player in the arena — OpenAI, Google, Anthropic, Microsoft and Meta Platforms — is racing to be the first to build a model capable of artificial general intelligence, or AGI, a threshold without a common definition, but that most agree will require a model to perform any intellectual human task.
The prevailing theory is that the first to achieve AGI will secure a prize that multiplies itself: a self-training, recursively improving intelligence, growing exponentially and leaving all competitors in its wake.
Chinese companies, by contrast, are following a state-sanctioned strategy focused on integrating AI into siloed industries and systems, training models to improve individual tasks and accelerate growth in a more tailored approach.
“The Chinese believe there is no single race, but multiple races,” said Scott Kennedy, senior advisor on Chinese business and economics at the Center for Strategic & International Studies. “The U.S. is focused on achieving AGI, while China is focused on diffusion and applications of AI into the rest of their economy — manufacturing, humanoid robotics, all aspects of the internet of things.”
China scholars, AI industry insiders and successive administrations have questioned Beijing’s strategic thinking and forthrightness.
“It’s so baked into the community here that AGI will have this transformative potential that people can’t believe China isn’t focused on this, as well,” said Matt Sheehan, a scholar of global technology issues at the Carnegie Endowment for International Peace with a focus on China. “It says it’s focused on applications, but is that a fake out for an AGI program hidden in the mountains somewhere?”
But most insiders believe that Beijing’s guidance to Chinese companies reveals its true intentions.
“They are not as AGI-pilled as the United States is, and I think that remains the case today,” Sullivan said, “so they regarded a lot of the conversation in the U.S. around extreme frontier risk — misalignment and loss of control — as a bit abstract, and not really as relevant to how they saw AI diffusing in China.”
President Biden greets Chinese President Xi Jinping in Woodside, Calif., in 2023.
(Doug Mills / Pool Photo)
Although China’s progress has exceeded U.S. expectations — especially since DeepSeek released its model over a year ago — the state has focused computer power on specific applications rather than the broad strategy needed to develop more powerful models capable of advancing toward AGI.
“It’s not just chips. It’s money,” Sheehan added. “China’s leading companies are much more financially constrained than U.S. companies. There’s concern over a bubble here, but OpenAI is valued at something near $800 billion. Leading Chinese companies that have gone public are valued at $20 billion. There’s just an orders-of-magnitude gap in available financing.”
Still, some in the U.S. government fear China won’t need comparable computing power if it simply steals the technology wholesale.
Doing so isn’t simple. But last month, in a memo, the White House Office of Science and Technology Policy accused Chinese actors of “industrial-scale campaigns to distill U.S. frontier AI systems,” in effect replicating the performance of the most advanced existing models “at a fraction of the cost.” The memo did not accuse Beijing of endorsing the activity.
In the process, the memo added, carefully constructed security protocols are deliberately stripped away.
China’s negotiating advantage
Whatever its strategic calculus may be, China would enter talks with the Trump administration trailing in the race — while disagreeing on the nature of the finish line.
AGI, in theory, could reach a stage of recursive self-improvement that results in a loss of human understanding or control. But if it is only the Americans, and not the Chinese, seeking to reach that threshold, then who is responsible to stop it?
Daniel Remler, who led AI policy at the State Department during the Biden administration and took part in the Geneva talks, cast doubt on Chinese claims of disinterest in AGI and ignorance of its risks. China falling behind in the race is no strategic design, he said.
“Chinese technologists are close observers of the U.S. AI ecosystem, and sometimes they say what they think,” Remler said. “Many were impressed by the [Mythos] model to the point of despair. Leaders in China’s top AI labs have been vocal in recent months, even before Mythos, about how compute-constrained they are at the frontier. Some have said they may never catch their American competitors.”
Talks at this point in the race could follow a familiar pattern in the recent history of U.S.-China diplomacy, in which Beijing claims it is behind the United States in development, ultimately securing a handicap and greater concessions at the negotiating table.
In other competitive domains — such as with China’s entry into the World Trade Organization and in cybersecurity negotiations between Beijing and the Obama administration — agreements were ultimately reached that Washington believes in hindsight disadvantaged American companies.
The Trump administration, Remler added, “needs to approach AI diplomacy with China with clear-eyed expectations anchored to our own national interests.”
Silicon Valley itself is divided over regulating AI. Anthropic, which was founded on concerns that other AI companies were failing to take safety and alignment concerns seriously, raised alarms over Mythos, its own model, to the Trump administration, a moment that has prompted reflection at the White House on the best path forward.
Spooked after meeting with leaders from America’s top banks over their vulnerabilities, Treasury Secretary Scott Bessent internally advised U.S. government reviews of future model releases — a practice already underway in China, where the training parameters for models, known as “weights,” have been publicly released.
Even the suggestion of government oversight sparked backlash from Silicon Valley. Last week, the White House sent out a memo to reassure industry allies that submitting new models for federal review would be strictly voluntary.
If talks ultimately resume between Washington and Beijing on AI, experts believe the negotiations would be far more complex than those that resulted in arms control agreements governing nuclear weapons in the Cold War.
The superpowers would not only be discussing threats of instability to the global financial system, but also fears of proliferation — advanced AI tools getting into the hands of bad actors interested in using bio- or cyberweapons that could target both countries.
And they ultimately would have to decide whether to discuss regulating the integration of AI into the Chinese and U.S. militaries, an almost unfathomable goal between the world’s biggest adversaries, where trust is lowest and verification would be hardest.
Those in the industry who most fear what artificial superintelligence could bring have told the Trump administration that talks with China are an existential necessity.
Dario Amodei, the chief executive and co-founder of Anthropic, speaks at an event in New York in 2025.
(Michael M. Santiago / Getty Images)
But even within Anthropic, which has championed diplomacy, there are concerns that Beijing could exploit its current disadvantage to entangle American industry at the cusp of its crowning achievement.
Rather than pushing for a single sweeping agreement, industry insiders are advising the administration to pursue targeted deals with Beijing to mitigate specific risks, like the pact on nuclear command and control, two industry sources said.
In private, both Xi and Chinese Foreign Minister Wang Yi seemed to understand that the gravity of the emerging technology before them required some form of cooperation, Sullivan said.
“At a conceptual level, I believe they had a conviction on that and authorized it,” Sullivan said, “but I believe their level of urgency was considerably lower than ours, and saw this as a longer-term process that would play out over time.”
“Their level of urgency and their stake in it has gone up,” he added.
TAIPEI, Taiwan — A resolute Secretary of State Marco Rubio took to the White House lectern Tuesday and declared the United States, under President Trump’s leadership, had launched a bold new operation to reopen the Strait of Hormuz, based on the principle that international waterways must remain free.
An hour later, Trump walked it all back, ending the complex military endeavor after less than a day.
It was just the latest evidence to America’s allies that the word of the U.S. government is subject entirely to the president’s whims. And such is the worry fueling concerns in Taipei ahead of Trump’s state visit to China this week.
Privately, senior administration officials have assured Taiwanese leadership ahead of the trip that Trump has no intention of changing long-standing U.S. policy on the island, two sources familiar with the discussions said — a stance of “strategic ambiguity” that has avoided any declarative statements on Taiwanese independence since it was coined by Henry Kissinger 55 years ago.
A White House official was definitive that U.S. policy toward Taiwan “remains the same as the first Trump administration.”
“The U.S. One China policy, as our cross-strait policies are collectively known, is based on the Taiwan Relations Act, the three U.S.-PRC Joint Communiques and the Six Assurances to Taiwan,” the official said. “There is no change to our policy with respect to Taiwan.”
But Chinese officials told The Times that their president, Xi Jinping, intends to raise the matter as a top priority, knowing that only one person — Trump himself — speaks for the administration today.
Whether Xi can leverage the intimacy of a private audience to shift Trump’s stance, potentially linking it to other U.S. objectives, is the source of significant concern here.
Taiwanese officials fear even the most subtle rhetorical change in policy from Trump could imperil a delicate status quo that has held, to its benefit, for decades. They have similarly sought assurances that the administration will follow through on a pending U.S. arms sale worth over $10 billion, which received approval from Taiwan’s legislature on Friday.
“The most serious scenario would be if President Trump were to make an impromptu statement, such as, ‘I oppose Taiwanese independence,’ particularly if he were to link this to trade, the Iran issue, or a summit agreement,” said Chienyu Shih, of the Institute for National Defense and Security Research in Taiwan. “This would constitute a rhetorical concession of substantial significance to Beijing.”
Rubio told reporters at his news conference Tuesday — with a similar confidence he expressed on the Iran file — that China understands Washington’s long-standing position on the island.
“I’m sure Taiwan will be a topic of conversation. It always is. The Chinese understand our position on that topic — we understand theirs,” Rubio said.
“I think both countries understand that it is in neither one of our interests to see anything destabilizing happen in that part of the world,” he added. “We don’t need any destabilizing events to occur with regards to Taiwan, or anywhere in the Indo-Pacific. And that’s to the mutual benefit of both the United States and the Chinese.”
Trump has suggested a willingness to shift U.S. policy on Taiwan before.
During his initial campaign for the presidency in 2016, Trump openly questioned the One China policy, drawing ire from Beijing for suggesting he might endorse Taiwanese independence. He accepted a call from Taiwan’s president after his victory and would later support significant arms sales to Taipei.
And yet, at a 2017 meeting with Xi, Trump vacillated, telling the Chinese leader he could “deal with” the Taiwan issue in “a matter of months,” according to the Wall Street Journal. The Chinese were reportedly so flabbergasted by the comment that they dismissed it as rhetorical flourish.
“There is concern that the conversation between the two leaders could veer into sensitive territory on the topic of Taiwan,” said Brian Hart, deputy director of the China Power Project at the Center for Strategic and International Studies, “but there are many in the administration who would still appreciate the importance of general continuity in U.S. policy.”
U.S. support for Taiwan’s democratic movement used to be a matter of principle. Today, Washington sees it as a matter of national security. Over 60% of semiconductors are produced in Taiwan, including 90% of the world’s most advanced chips. And it is viewed as the clasp of the first island chain guarding against Chinese maritime expansion.
A robust debate between Taiwan’s Cabinet and the opposition in parliament ended Friday not over whether to accept U.S. defense equipment, but over how much to spend. The Legislative Yuan approved $24 billion in purchases — including a defense package passed by Congress in December and the pending arms sale — falling short of Taipei’s $40-billion proposal.
Anticipation for the president’s state visit is high here in the capital city, where local news is filled with questions over the influence Trump’s war in Iran might have on his appetite for supporting Taiwan.
Chinese defense analysts have seen the war as a sign of U.S. weakness. But Taiwanese defense experts have taken away a different lesson: cheap equipment from a lesser military, such as dumb mines thrown in a strait, may just be enough to paralyze a superpower.
The latest U.S. National Security Strategy, released by the Trump administration in December, emphasized the importance of support for Taiwan and the status quo.
But the Taiwanese took note that the strategy also called for an end to forever wars in the Middle East, offering little preview of the president’s sudden strategic pivot on Iran in February, launching a war few saw coming.
What Trump chooses to say in China “might be difficult to predict,” said Jyh-Shyang Sheu, a scholar of Chinese politics and military capabilities based in Taiwan.
But “in Taipei, we are still focusing on the U.S. policy,” he added, “more focusing on what he does instead of what he says.”
The International Air Transport Association (Iata) has urged its European members to consider switching to US-made jet fuel amid rising concerns over possible shortages caused by the Iran oil crisis
13:25, 08 May 2026Updated 15:49, 08 May 2026
Fears remain that there cut be a shortage of jet fuel
European airlines should contemplate switching to US-manufactured jet fuel amid mounting worries over shortages triggered by the Iran oil crisis, a trade body has warned. The International Air Transport Association (IATA), which represents carriers, said its European members could “ease some pressure” by altering the type of fuel they use.
Commercial aviation mainly depends on two fuel grades: Jet A-1, which is utilised across most of the world, and Jet A, which is chiefly used in North America. They are comparable, with the principal distinction being that Jet A-1 has a lower maximum freezing point, offering greater versatility on long-haul and polar routes.
Jet A is predominantly manufactured outside the Gulf, from where fuel supplies are restricted by Iran’s limitations on tankers passing through the Strait of Hormuz. IATA’s director of flight and technical operations, Stuart Fox, stated in a blog that using Jet A “could give airlines facing a possible shortfall in fuel supply more options”.
He proposed this could “help the industry make better use of the fuel we have” and “keep schedules intact”. He continued: “Fuel supply could come under pressure if the war in the Middle East continues.
“Using Jet A, which is produced at scale outside the Gulf, could be a practical way to help ease some pressure on existing supply chains.
“This would have to be done through a controlled transition from one approved fuel grade to another. In normal times, that flexibility might not be noticeable. But in today’s circumstances it’s critical to keeping the whole system moving.”
Mr Fox noted that airlines looking to switch from Jet A-1 to Jet A would need to implement crucial safety precautions, including accounting for the higher freezing point and ensuring crew members are fully briefed on which fuel is on board.
On Friday, British Airways’ parent company International Airlines Group cautioned that its profits would take a hit, anticipating spending approximately two billion euro (£1.72 billion) more than budgeted on fuel this year. Chief executive Luis Gallego stated that he does not believe the group will experience “any interruption for the summer” with regard to fuel supply.
BEIRUT — Confusion reigned on Monday over the fate of a fragile ceasefire between the United States and Iran after a wave of fresh strikes on the United Arab Emirates and Oman, along with reports of attacks on ships in the Strait of Hormuz, undermined confidence in the truce.
The drone and missile strikes, the first since a ceasefire halted fighting in early April, come after the Trump administration launched a wide-scale naval operation on Monday to “guide” stranded maritime vessels out of the vital waterway.
But fears over a return to war have driven another surge in oil prices, pushing them above $114 per barrel — levels not seen since the ceasefire nearly a month ago. Hundreds of cargo ships from dozens of countries remain stuck in the Gulf. And strikes in Dubai have raised concerns about further disruptions to international air travel at one of the world’s busiest airports.
Iran’s state-run news agency, IRNA, said the new U.S. operation was part of President Trump’s “delirium,” after the Islamic Revolutionary Guard Corps warned that passage through the strait required prior approval from Tehran.
“We warn that any foreign armed force, especially the invading American army, will be attacked if they attempt to approach and enter the Strait of Hormuz,” said Maj. Gen. Ali Abdollahi, according to a statement reported by the Iranian state-run Mehr News Agency on Monday.
The operation, which Trump over the weekend dubbed “Project Freedom,” is supported by 15,000 U.S. servicemen and 100 aircraft, according to U.S. Central Command. Their aim is to deny Tehran control over the strait, a narrow, 21-mile-wide passageway through which a fifth of global energy supplies flows.
“We have more weapons and ammunition at a much higher grade than we had before,” Trump was quoted as saying in an interview with Fox News.
“We have the best equipment. We have stuff all over the world. We have these bases all over the world. They’re all stocked up with equipment. We can use all of that stuff, and we will, if we need it.”
Iran blocked traffic through the strait soon after the United States and Israel launched their campaign on the country. Last month, days after a ceasefire between Washington and Tehran came into effect, the United States enforced its own naval blockade on Iranian ports in a bid to pressure Iran to make concessions in stalled negotiations.
On Monday, Central Command said in a statement that two American-flagged merchant ships were able to successfully transit the strait, while Central Command head Adm. Brad Cooper said the U.S. military sank six Iranian boats and intercepted missiles and drones targeting civilian vessels.
“We have defeated each and every one of those threats through the clinical application of defensive munitions,” he said.
“Project Freedom is a defensive operation, and we have deployed anti-ballistic missile destroyers,” he added. “Ships in the Gulf waters belong to 87 countries, and we urge ships to cross the strait.”
IRIB, Iran’s state-run broadcaster, quoted a senior Iranian military official who denied Cooper’s claim of sunk Iranian boats. The IRGC said in a statement on the messaging app Telegram that claims of commercial vessels or tankers traversing the strait were “baseless and completely false.”
Though Cooper did not clarify if the ceasefire between Washington and Tehran was now over, a raft of attacks throughout Monday spiked fears that the war would restart, spurring sharp price increases in already-jittery energy markets.
The UAE said a fire broke out and three Indian nationals were injured in the Fujairah Oil Industry Zone, a key export hub for the country, after what it described as an Iranian drone attack.
It also accused Iran of targeting a tanker linked to the country’s state oil company Abu Dhabi National Oil Company in the Strait of Hormuz, while the country’s defense ministry also reported four cruise missiles launched from Iran, saying that it intercepted three of them while the fourth fell in the sea.
“These attacks constitute a dangerous escalation and an unacceptable transgression,” said a statement from the UAE’s foreign ministry, adding that it “reserves its full and legitimate right to respond to these attacks.”
Elsewhere, two foreign workers were injured in an attack on a residential building in the Omani coastal province of Bukha, according to a statement from an unnamed security source quoted by the state-run Oman News Agency. Authorities were investigating the incident but did not elaborate on the perpetrator.
The U.K.’s Maritime Trade Operations Center reported on Monday that a commercial vessel was on fire off the coast of the UAE, while a South Korean bulk carrier ship said it suffered an explosion and a fire in its engine room and the cause was being investigated.
Bulos reported from Beirut, Wilner from Washington.
NEW rules will now allow airlines in the UK to axe flights without repercussions this summer due to ongoing fears of a jet fuel crisis.
The Department for Transport has unveiled new measures which will allow airlines to cancel flights up to two weeks in advance, without losing their airport slots.
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Instead, airlines will be able to group passengers onto other flights that same day, and operate fewer routes a day.
Transport Secretary Heidi Alexander said it would “give families long-term certainty and avoid unnecessary disruption at the departure gate this summer“
While this is said to be “protecting summerholidays” it could see passengers forced onto flights at completely different times that they had booked.
Which? Travel editor Rory Boland said: “It’s not fair for the rules to now be bent in favour of airlines and potentially leave passengers holding the bill.
“Many passengers will understand that disruptions can occur and may be happy to travel a few hours or a day later, but for those on short trips or connecting flights it could mean the trip is no longer worthwhile.
“Before any changes are made, passengers need cast-iron assurances that their rights will not be weakened and that airlines cannot use reform as cover to shift the cost of disruption onto travellers.”
However, it has been backed by Airlines UK, which represents UK carriers, as they said it would “avoid unnecessary flying and continue operating as efficiently as possible while protecting connectivity for passengers and trade”.
While jet fuel shortages – caused by the closure of the Strait of Hormuz, are yet to massively effect UK airlines, many others around the world have ben formed to axe flights.