Israel signs deal with Sikorsky to modify Air Force helicopters
JERUSALEM, March 24 (Reuters) - Israel's Defence Ministry said on Monday it signed a contract worth hundreds of millions of dollars with Lockheed Martin (LMT.N), opens new tab unit Sikorsky to integrate Israeli systems into 12 CH-53K Pere helicopters that are currently under construction.
The modifications, which are required by the Israeli Air Force, are part of a Foreign Military Sales (FMS) deal signed between Israel and the United States several years ago, but only made public on Monday.
The ministry said that assembly of the 12 helicopters is currently underway at Sikorsky's headquarters in Stratford, Connecticut. Sikorsky is building a separate production line to modify each aircraft from the standard U.S. Marine Corps configuration to the operational mission requirements specified by the Israeli Air Force.
The Pere helicopters will replace Israel's Yas'ur helicopters.
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Reuters
42 minutes ago
- Reuters
TRADING DAY Buoyancy trumping uncertainty
ORLANDO, Florida, June 10 (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Global markets remain buoyant, awaiting the outcome of U.S.-China trade talks in London and U.S. inflation figures on Wednesday, both of which could have a bearing on guidance from the Federal Reserve next week and investor sentiment more broadly. In my column today I look at how the Trump administration's crackdown on immigration could cause labor market distortions and headaches for Fed officials. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Buoyancy trumping uncertainty On the day The World Bank slashed global growth forecasts, warning of the "significant headwind" from tariffs and heightened uncertainty, global stocks clocked their fifth consecutive all-time high. Britain's benchmark FTSE 100 is a whisker from reaching new peaks and Germany's DAX hit an all-time high last week, while on Wall Street the Nasdaq and S&P 500 are within a couple of percentage points of new record levels also. Yet the reasons for equity investors to be fearful right now are plentiful - worries over growth, inflation, tariffs, long-term interest rates, U.S. debt and deficits, and the fact that China, the world's second-largest economy, is still mired in a low growth and deflationary funk. Something not quite adding up, right? Perhaps. On the other hand, the fiscal taps are being turned on in China and Germany, British finance minister Rachel Reeves outlines her multi-year 2 trillion pounds ($2.7 trillion) spending plan on Wednesday, and U.S. President Donald Trump's 'big beautiful bill' currently going through Congress is front-loaded with fiscal stimulus too. None of that is really fresh news but the upshot is a lot of liquidity coursing through the global economy. Right now it is something investors appear willing to accept even if the price is increased debt, and for the U.S. and UK in particular, worse public finances. Big corporate deals are being struck, like the OpenAI and Google cloud service tie-up and Meta Platforms reportedly paying $15 billion for a 49% stake in AI startup Scale AI, and implied equity and bond volatility is low. After a period of fretting more about deficits and spiking bond yields, investors may now be viewing the future with their glass half full. Fiscal stimulus is coming and interest rates around the world are being cut. The monetary outliers are Japan and the U.S., but the Bank of Japan could be near the end of its tightening cycle and the Fed may be about to begin easing later this year. On top of this, there's a general belief that Trump will back down from his hardline stance on tariffs and that a palatable deal with China will be reached, the so-called 'TACO' - Trump Always Chickens Out - trade. Fresh news on that front, at least, should be forthcoming on Wednesday. Trump immigration crackdown creates jobs distortions, Fed headaches Seismic shifts in immigration are distorting the U.S. employment picture, making it harder for investors and policymakers to know exactly how much the labor market is actually slowing. Assuming the Trump administration makes good on its pledge to reduce immigration, either by stopping the flow of people coming into the country or by deporting many already here, the labor supply will shrink. The long-term impact of lower immigration is generally agreed to be negative, as new workers are needed to replace retirees, fill job vacancies and drive economic growth. Over time, fewer new workers will likely mean lower growth. But in the short term, a smaller pool of workers results in a tighter labor market, which keeps a lid on the unemployment rate, albeit artificially and probably temporarily. This may already be playing out. Figures released last week showed that employment in May fell by 696,000 jobs. That's the biggest single monthly decline since the historic losses seen during the pandemic in early 2020. Some economists argue that the recent drop is a consequence of Trump's immigration crackdown. Nonfarm payrolls rose 139,000. Meanwhile, the unemployment rate held steady at 4.2%, which though higher than it was two years ago, is still historically low by any measure. All else being equal, this points to a tight labor market, which should put upward pressure on wages and perhaps even warrant a more hawkish policy stance from the Federal Reserve. But that is almost certainly a misreading. When labor supply and the labor force participation rate fall, this brings down a country's so-called 'breakeven' job growth. That's the number of net new jobs the economy needs to keep up with growth in the working-age population and maintain a steady unemployment rate. That figure is falling, and if the Trump administration toughens up its anti-immigration policies further, this decline is likely to accelerate. According to economists at Morgan Stanley, breakeven employment growth averaged 210,000 jobs a month last year, and is averaging 170,000 so far this year. They reckon it will fall to 90,000 by the end of this year and 80,000 next year. Ryan Sweet, chief U.S. economist at Oxford Economics, goes further, estimating that the breakeven rate is "quickly approaching" 50,000 jobs a month due to weakening labor supply growth, primarily because of reduced immigration. "The unemployment rate can remain low, but for the wrong reasons," Sweet says. If these projections prove accurate, monthly employment and job growth could continue to slow without raising the unemployment rate. The contradictory signals this sends could create confusion for both investors and policymakers. In his press conference after the most recent Fed policy meeting, Chair Jerome Powell repeatedly told reporters that the labor market is "solid". The unemployment rate "remains low," and the labor market is "at or near maximum employment." If these headline indicators are the gauge, Powell is absolutely correct. But he also stressed that policymakers are looking at the "whole huge array" of labor market indicators for a truer guide. One of those inputs in the months ahead will no doubt be net immigration. And that could generate significant uncertainty, as there are huge gray areas and wide margins of error when trying to estimate net immigration and its impact on the labor market. In January, the non-partisan Congressional Budget Office projected net immigration of 2 million people this year and 1.5 million next year, down from an estimated 3.3 million in 2023. With Trump seemingly hardening his stance on immigration, those projections could turn out to be far too high. Morgan Stanley's economists just slashed their immigration forecasts to 800,000 this year and 500,000 next year. If these figures turn out to be closer to reality, we could soon be looking at a "tight" labor market with monthly payrolls gains of well under 100,000. Pity the poor Fed Chair who has to communicate policy in that environment. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
The Herald Scotland
2 hours ago
- The Herald Scotland
MPs call for UK to recognise Palestine after Government sanctions ministers
In response, Mr Falconer did not rule out the move, saying he had 'no doubt' he would return to the Commons to update MPs. It came as the UK imposed an asset freeze and travel ban on Itamar Ben-Gvir and Bezalel Smotrich, Israel's security minister and finance minister, respectively. The move came alongside Australia, Canada, New Zealand and Norway. When asked about the recognition of Palestine by Liberal Democrat foreign spokesperson Calum Miller, Mr Falconer said: 'The two-state solution conference next week is an important moment we're discussing with our friends and allies our approach to that conference and no-doubt I will return to this house, with your permission Mr Speaker, to discuss further.' Surrounded by security guards, Israel's National Security Minister, Itamar Ben-Gvir, centre, has been sanctioned by the Government (Leo Correa/AP) Mr Miller had said: 'The time has also come to listen to members on all sides of this House and officially to recognise the independent state of Palestine. Will the Government commit to taking this vital step at next week's summit in New York? 'Recognition will demonstrate the UK's commitment to self-determination but also make clear that, building on today's announcement, the UK will do all it can to wrest control away from the extremes and give both Israelis and Palestinians hope of a lasting peace.' Conservative MP for Herne Bay and Sandwich, Sir Roger Gale, had chastised the Government for not taking more action. He said: 'When the minister came to the despatch box, I had expected to hear something constructive. What we've heard is the sanctioning of two people. The United Kingdom Government could unilaterally recognise Palestine. The United Kingdom Government could show the world and lead.' He added: 'When is the Government going to do something?' Labour MP Abtisam Mohamed (Sheffield Central), who was denied access to the occupied West Bank earlier this year, agreed with the calls. She said: 'Annexation is real. It is happening. Partners in the region are calling for recognition before it's too late.' Ms Mohamed continued: 'Does the minister agree with me that we must not throw recognition into the long grass? That failure to recognise next week at the UN conference implies that Israel does have a veto, and that the Israeli government will continue to annexe and terrorise Palestinians in the West Bank. If we do not recognise now, there will be no Palestinian state to recognise.' Mr Falconer said: 'Recognition is right at the centre of any discussion of a two-state solution.' The minister had earlier told MPs the two-state solution between Israel and Palestine was in critical danger. He said the rhetoric of Mr Ben-Gvir and Mr Smotrich did not represent the majority of Israelis. He said: 'This is an affront to the rights of Palestinians, but it is also against the interests of Israelis, against their long-term security and democracy.' Later in the session, Green Party MP Ellie Chowns (North Herefordshire) accused the Government of doing the 'bare minimum' while Conservative former minister Kit Malthouse further pressed the minister on whether recognition at the summit is now 'off the table'. Mr Falconer said 'we are doing everything we can', adding: 'We are so incredibly frustrated by the scenes that meet us, meet everybody behind me, and I would say gently to (Mr Malthouse), he has no monopoly on the morality of this situation.' The minister went on to say settler expansion had increased hugely in recent years, and last year had seen the worst settler violence against Palestinians in the West Bank on record. He added that this year is on track to be just as violent. 'This is an attempt to entrench a one-state reality,' he told MPs. He continued: 'The gravity of this situation demands further action. The reality is that these human rights abuses, incitement to violence, extremist rhetoric comes … from individuals who are ministers in this Israeli government.' Abtisam Mohamed who, along with fellow Labour MP Yuan Yang, was denied entry to the West Bank earlier this year (Roger Harris/UK Parliament/PA) Mr Falconer added: 'We have told the Israeli government that we would take tougher action if this did not stop. It still did not. The appalling rhetoric has continued unchanged. Violent perpetrators continue to act with impunity and with encouragement. 'So, let me tell the House now, when we say something, we mean it. Today we have shown, with our partners, two extremists we will not stand by while they wreck the prospects for future peace.' Shadow foreign secretary Dame Priti Patel said: 'The situation in the Middle East and the suffering we are seeing is serious and completely intolerable. Dame Priti added: 'We all want to see a better future for the Israeli and Palestinian people, and the UK must continue to play a leading role in achieving this.' She told MPs the previous Conservative government considered sanctioning the two ministers. 'The minister will be aware that the sanctioning of individuals is always under review, that is the right policy,' she said. 'And in the case of Israel, this has been previously considered even by Lord Cameron, who has spoken of that in the last government.' DUP MP Sammy Wilson (East Antrim) suggested Mr Falconer is 'pandering to the increasingly loud anti-Israel voices on his backbenches', adding: 'The minister must know that this will not bring peace to Gaza.' Mr Falconer replied: 'I have spoken about the perilous decline of the situation in the West Bank, and indeed events of the last two weeks, and I've also spoken about the importance of co-ordinating with allies. So, I don't think I have anything further to say.'
Reuters
3 hours ago
- Reuters
Brazil's fiscal package to include higher tax on interest on equity
BRASILIA, June 10 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Tuesday that the government's new fiscal package includes an increase in the income tax rate levied on so-called interest on equity (JCP) payments to 20% from 15%. JCP is a form of shareholder remuneration that allows companies to deduct such payments from their corporate tax base. Speaking to reporters, Haddad said that the decision to include the measure - previously proposed by the government but not voted on by Congress - came at the request of lawmakers. Haddad also confirmed that the fiscal package includes the unification of income tax rates on financial investments at 17.5%, replacing the current sliding scale of 15% to 22.5%, which varies according to the investment's holding period. The new rate would apply to all investments, including stocks and bonds, except those currently exempt from income levy, which would begin to be taxed at 5%, as Haddad had already disclosed on Sunday. The minister, who spoke after returning from a meeting with President Luiz Inacio Lula da Silva, said the additional revenue generated by the package would be used primarily to revise the previously imposed financial operation tax (IOF) hike on forfait operations. The IOF decree, which had been introduced to boost public revenues and also raised the tax on private pension funds and some credit and foreign exchange transactions, triggered strong pushback from both Congress and market players, prompting the government to seek an alternative path as lawmakers threatened to overturn the measure. Haddad defended the new fiscal measures on Tuesday, arguing that they are likely to support the strengthening of the Brazilian currency, pave the way for interest rate cuts, and help ensure compliance with this year's and 2026 fiscal targets.
