Transatlantic summer travel set to cool, booking trends show
Transatlantic travel is set to cool substantially this summer, with demand from both sides of the Atlantic down near double digits, based on a sampling of booking data compiled by aviation analytics company Cirium.
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Bookings from North America to Europe have declined by almost 10% for the months of June, July and August compared with the same period last year, Cirium said.
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While they aren't comprehensive — they represent a small sample of sales to popular destinations — they suggest what many airlines alluded to in a spate of earnings recently: that transatlantic air travel is slowing under the combined weight of market instability, an ongoing trade war and stricter policing at US borders.
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Among the European cities with the sharpest decline in travel bookings are Munich, Amsterdam, Athens and Rome. Lisbon is the only one of the continent's major cities set to record an uplift.
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CTV News
15 minutes ago
- CTV News
What it would take to convert a jet from Qatar into Air Force One to safely fly Trump
WASHINGTON — U.S. President Donald Trump really wants to fly on an upgraded Air Force One — but making that happen could depend on whether he's willing to cut corners with security. As government lawyers sort out the legal arrangement for accepting a luxury jet from the Qatari royal family, another crucial conversation is unfolding about modifying the plane so it's safe for the American president. Installing capabilities equivalent to the decades-old 747s now used as Air Force One would almost certainly consign the project to a similar fate as Boeing's replacement initiative, which has been plagued by delays and cost overruns. Air Force Secretary Troy Meink told lawmakers Thursday that those security modifications would cost less than US$400 million but provided no details. Satisfying Trump's desire to use the new plane before the end of his term could require leaving out some of those precautions, however. A White House official said Trump wants the Qatari jet ready as soon as possible while adhering to security standards. The official, who spoke on the condition of anonymity, did not provide details on equipment issues or the timeline. Trump has survived two assassination attempts, and Iran allegedly also plotted to kill him, so he's well aware of the danger he faces. However, he seems willing to take some chances with security, particularly when it comes to communications. For example, he likes to keep his personal phone handy despite the threat of hacks. He boasted this week that the government got the jet 'for free,' saying, 'We need it as Air Force One until the other ones are done.' Here's a look at what it would take to make the Qatari plane into a presidential transport: What makes a plane worthy of being Air Force One? Air Force One is the call sign for any plane that's carrying the president. The first aircraft to get the designation was a propeller-powered C-54 Skymaster, which ferried Franklin D. Roosevelt to the Yalta Conference in 1945. It featured a conference room with a bulletproof window. Things are a lot more complicated these days. Boeing has spent years stripping down and rebuilding two 747s to replace the versions that have carried presidents for more than three decades. The project is slated to cost more than $5.3 billion and may not be finished before Trump leaves office. A 2021 report made public through the Freedom of Information Act outlines the unclassified requirements for the replacement 747s under construction. At the top of the list — survivability and communications. The government decided more than a decade ago that the new planes had to have four engines so they could remain airborne if one or two fail, said Deborah Lee James, who was Air Force secretary at the time. That creates a challenge because 747s are no longer manufactured, which could make spare parts harder to come by. Air Force One also has to have the highest level of classified communications, anti-jamming capabilities and external protections against foreign surveillance, so the president can securely command military forces and nuclear weapons during a national emergency. It's an extremely sensitive and complex system, including video, voice and data transmissions. James said there are anti-missile measures and shielding against radiation or an electromagnetic pulse that could be caused by a nuclear blast. 'The point is, it remains in flight no matter what,' she said. Will Trump want all the security bells and whistles? If the Qatari plane is retrofitted to presidential standards, it could cost $1.5 billion and take years, according to a U.S. official who spoke on the condition of anonymity to provide details that aren't publicly available. Testifying before Congress this week, Meink discounted such estimates, arguing that some of the costs associated with retrofitting the Qatari plane would have been spent anyway as the Air Force moves to build the long-delayed new presidential planes, including buying aircraft for training and to have spares available if needed. In response, Rep. Joe Courtney, D-Conn., said that based on the contract costs for the planes that the Air Force is building, it would cost about $1 billion to strip down the Qatar plane, install encrypted communications, harden its defenses and make other required upgrades. James said simply redoing the wiring means 'you'd have to break that whole thing wide open and almost start from scratch.' Trump, as commander in chief, could waive some of these requirements. He could decide to skip shielding systems from an electromagnetic pulse, leaving his communications more vulnerable in case of a disaster but shaving time off the project. After all, Boeing has already scaled back its original plans for the new 747s. Their range was trimmed by 1,200 nautical miles, and the ability to refuel while airborne was scrapped. Paul Eckloff, a former leader of protection details at the Secret Service, expects the president would get the final say. 'The Secret Service's job is to plan for and mitigate risk,' he said. 'It can never eliminate it.' If Trump does waive some requirements, James said that should be kept under wraps because 'you don't want to advertise to your potential adversaries what the vulnerabilities of this new aircraft might be.' It's unlikely that Trump will want to skimp on the plane's appearance. He keeps a model of a new Air Force One in the Oval Office, complete with a darker color scheme that echoes his personal jet instead of the light blue design that's been used for decades. What happens next? Trump toured the Qatari plane in February when it was parked at an airport near Mar-a-Lago, his Florida resort. Air Force chief of staff Gen. David Allvin was there, too. The U.S. official said the jet needs maintenance but not more than what would be expected of a four-engine plane of its complexity. Sen. Tammy Duckworth, an Illinois Democrat on the Senate Armed Services Committee, said it would be irresponsible to put the president and national security equipment aboard the Qatari plane 'without knowing that the aircraft is fully capable of withstanding a nuclear attack.' 'It's a waste of taxpayer dollars,' she said. Meanwhile, Boeing's project has been hampered by stress corrosion cracks on the planes and excessive noise in the cabins from the decompression system, among other issues that have delayed delivery, according to a Government Accountability Office report released last year. Boeing referred questions to the U.S. Air Force, which said in a statement that it's working with the aircraft manufacturer to find ways to accelerate the delivery of at least one of the 747s. Even so, the aircraft will have to be tested and flown in real-world conditions to ensure no other issues. James said it remains to be seen how Trump would handle any of those challenges. 'The normal course of business would say there could be delays in certifications,' she said. 'But things seem to get waived these days when the president wants it.' AP writer Lolita C. Baldor in Washington contributed to this report. Tara Copp And Chris Megerian, The Associated Press
CTV News
15 minutes ago
- CTV News
Bank of Canada head Tiff Macklem says mandate should evolve in a ‘shock-prone' world
Bank of Canada Governor Tiff Macklem takes part in an interview at the Bank of Canada in Ottawa on Wednesday, June 4, 2025. THE CANADIAN PRESS/Sean Kilpatrick OTTAWA — Tiff Macklem is wearing an Edmonton Oilers pin as he reflects on coming very close to beating big odds. It's a significant day for the governor of the Bank of Canada: he's just laid out his reasons to the entire country and a global audience for keeping the central bank's benchmark interest rate steady for a second straight time. That night is also Game 1 of the NHL's Stanley Cup finals; Macklem ends his press conference with a hearty 'Go Oilers!' It's a rematch from last year's heartbreak, when the Oilers came oh-so-close to mounting a seemingly impossible four-game comeback against the Florida Panthers, only to fall short by a single goal in Game 7. Macklem, too, was almost safe to declare victory last year. He had just about secured a coveted 'soft landing' for Canada's economy — a rare feat that sees restrictive monetary policy bring down surging levels of inflation without tipping the economy into a prolonged downturn. 'We got inflation down. We didn't cause a recession,' Macklem said in an interview with The Canadian Press after the rate announcement Wednesday. 'And, to be frank, until President (Donald) Trump started threatening the economy with new tariffs, we were actually seeing growth pick up.' Fresh out of one crisis, the central bank now must contend with another in U.S. tariffs. Five years into his tenure as head of the Bank of Canada, Macklem said he sees the central bank's role in stickhandling the economy — as well as Canada's role on the world stage — evolving. Many Canadians have become more familiar with the Bank of Canada in recent years. After the COVID-19 pandemic recovery ignited inflation, the central bank's rapid tightening cycle and subsequent rate cuts were top-line news for anxious Canadians stressed about rising prices and borrowing costs. That was all in pursuit of meeting the central bank's inflation target of two per cent, part of a mandate from the federal government that's up for review next year. Macklem said the past few years have led the Bank of Canada to scrutinize some of its metrics, like core inflation and how it responds to supply shocks in the economy. But he defends keeping the bank's inflation target, particularly at a time of global upheaval. 'Our flexible inflation targeting framework has just been through the biggest test it's ever had in the 30 years since we announced the inflation target,' he said. 'I'm not going to pretend it's been an easy few years for anybody. But I think the framework has performed well.' Macklem said, however, that he sees room to build out the mandate to address other areas of concern from Canadians, such as housing affordability. Whether it's the high cost of rent or a mortgage, or surging prices for groceries and vehicles, Macklem said the past few years have been eye-opening to Canadians who weren't around the last time inflation hit double digits in the 1980s. 'Unfortunately, a whole new generation of Canadians now know what inflation feels like, and they didn't like it one bit,' he said. Monetary policy itself can't make homes more affordable, he noted — in a nutshell, high interest rates make mortgages more expensive while low rates can push up the price of housing itself because they stoke demand. But Macklem said one of the things he's reflecting on is that inflation can get worse when the economy isn't operating at its potential or when it's facing great disruption. 'There is a role for monetary policy to smooth out some of that adjustment — support the economy while ensuring that inflation is well-controlled.' He didn't offer suggestions on how the mandate might expand to address housing affordability specifically, but said 'the work is ongoing' and will be settled in meetings with the federal government next year. Right now, he's trying to make sure that the economic impacts from Canada's tariff dispute with the United States don't result in prolonged inflation. The Bank of Canada is not alone in debating how monetary policy ought to respond in what Macklem called a more 'shock-prone' world. The G7 Finance Ministers' Summit in Kananaskis, Alta., last month also featured roundtables with the bloc's central bankers. Conversations at the summit were 'candid,' Macklem said, and though the nations issued a joint statement at the close of the event, that doesn't mean they agreed on everything. 'International co-operation, to be honest, has never been easy. It is particularly difficult right now, but that doesn't make it less important. That makes it more important,' he said. 'I do think Canada, as the chair of the G7, has a leadership role to play.' The Bank of Canada is also changing the way it has conversations with Canadians and the kind of data it considers. A day after the June interest rate decision, deputy governor Sharon Kozicki told a Toronto business crowd how the central bank is using data more nimbly, relying heavily on surveys and more granular information to make monetary policy decisions in an uncertain time. These sources offer a faster way to see what's happening on the ground in the economy than traditional statistical models allow. Macklem said the central bank would previously have dismissed most supply shocks as transitory — likely to pass without the need for central bank adjustments, such as rising and falling oil prices. But he said the Bank of Canada needs to be running a more 'nuanced playbook' now to respond to some increasingly common shocks: supply chain disruptions, trade conflicts and extreme weather to name a few. An overheating economy running up against a supply disruption is the kind of inflationary fire Macklem is trying to avoid in this latest crisis. 'The economy does not work well when inflation is high,' he said. 'And the primary role of the Bank of Canada is to ensure that Canadians maintain confidence in price stability. That's all we can do for the Canadian economy. That's what we can do for Canadians. And that's what we're focused on.' Later in the day on Wednesday, the Edmonton Oilers took Game 1 of the Stanley Cup finals. The Canadian team was down but roared back to win 4-3 in overtime. It's still early in the Bank of Canada's response to the latest global shock. But with any luck, Macklem's team might also get a leg up with lessons learned the last time they faced big odds. This report by The Canadian Press was first published June 7, 2025. Craig Lord, The Canadian Press
Globe and Mail
32 minutes ago
- Globe and Mail
AstraZeneca Stock Declines 6% in 3 Months: Time to Buy the Dip?
AstraZeneca AZN stock has declined 6.4% in the past three months. Although AstraZeneca faces its share of challenges, a significant portion of this price decline is attributed to broader market uncertainties and a volatile macroeconomic environment. The sky-high tariffs imposed by the United States and retaliatory tariffs by China and some other countries hurt global stock markets. Though the massive tariffs imposed by the United States and China are now on a pause, it is only a temporary suspension, and no one knows what will happen after the 90-day tariff suspension ends. The uncertainty around tariffs and trade production measures remains, slowing down economic growth. Although pharmaceuticals have been exempted from tariffs in the first round, they could be Trump's target in the next round, considering the President's goal to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump and the Republican government also continue to stress on the control of drug prices with the latest attempt being his 'most favored nations' policy.' Let's understand AZN's strengths and weaknesses to better analyze how to play the stock in an uncertain macro environment. AZN's Strong Portfolio of Blockbuster Drugs AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medicines. AstraZeneca now has 16 blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza (partnered with Merck [ MRK ]), Calquence and Ultomiris. These drugs are driving the company's top line, backed by increasing demand trends. The company is confident that the growth will continue in 2025. Almost every new product it has launched in recent years has done well. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also expected to continue to contribute to top-line growth in 2025. AZN Enjoys Strong Position in the Oncology Space Oncology is AstraZeneca's biggest segment. The company is working on strengthening its oncology product portfolio through label expansions of existing products and progressing oncology pipeline candidates. Oncology sales (comprising around 41% of AstraZeneca's total revenues) rose 13% in the first quarter of 2025, generating $5.6 billion in sales. The strong oncology performance is being driven by medicines such as Tagrisso, Merck-partnered Lynparza, Imfinzi, Calquence and Daiichi Sankyo-partnered Enhertu. A key new cancer drug approval was that of Truqap for HR-positive, HER2-negative (HR+ HER2-) breast cancer. The drug has seen a robust launch, recording sales of $430 million in 2024 and $132 million in the first quarter of 2025. In January this year, AstraZeneca and partner Daiichi's drug, Datroway, was approved by the FDA for HR+ HER2- breast cancer, while a regulatory application is under review for EGFR-mutated non-small cell lung cancer (NSCLC). Datroway witnessed encouraging early launch signals in the United States. AstraZeneca expects continued growth of its oncology medicines in 2025, particularly Tagrisso, Enhertu and Imfinzi, despite the incremental impact of the Part D redesign. Several Headwinds to Hurt AZN's Top Line in 2025 The impact of Part D redesign hurt sales of AZN's older drugs, Tagrisso, Lynparza and Ultomiris, as well as newer drugs, Truqap and Wainua, in the United States in the first quarter of 2025, with the trend expected to continue through the rest of the year. AstraZeneca expects Farxiga and Lynparza to be included in the volume-based procurement plans in China in mid-2025, which can hurt sales of these drugs in the country. Pricing and competitive pressure in Europe and generic competition in some emerging markets are expected to hurt sales of some drugs. Brilinta generics are expected to be launched in the United States in 2025. This will hurt sales of the drug. Biosimilar versions of Soliris were launched in the United States in March 2025, which, along with successful conversion to Ultomiris, biosimilar pressure in Europe and unfavorable order timing in certain tender markets, is expected to lead to a continuous decline in sales of Soliris. AstraZeneca is facing ongoing investigations at its China subsidiary. The Chinese authorities are investigating some current and former AstraZeneca employees at its China subsidiary for medical insurance fraud, illegal drug importation and personal information breaches. AZN Stock's Price, Valuation & Estimates AZN stock has risen 8.2% so far this year againsta decrease of 3.1% for the industry. The stock has also outperformed the sector and S&P 500 index, as seen in the chart below. AZN Stock Outperforms Industry, Sector & S&P 500 From a valuation standpoint, AstraZeneca is slightly expensive. Going by the price/earnings ratio, the company's shares currently trade at 14.93 forward earnings, slightly higher than 14.74 for the industry. However, AZN's stock is trading below its 5-year mean of 18.05. The stock is also much cheaper than other large drugmakers like Eli Lilly LLY and Novo Nordisk NVO. Eli Lilly and Novo Nordisk currently dominate the obesity space. AZN Stock Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings has risen from $4.47 per share to $4.50 per share over the past 60 days. For 2026, earnings estimates have risen from $4.95 per share to $4.98 per share over the same timeframe. AZN Estimate Movement Consider Buying AZN Stock Despite the potential impact from Part D redesign, AstraZeneca expects total revenues to grow by a high single-digit percentage at CER in 2025. Growth momentum in Oncology and CVRM(cardiovascular, renal and metabolism) segments is expected to continue in 2025. However, in Rare Disease, though AstraZeneca expects growth in 2025, it will be at a slower pace than in 2024. Regarding the potential impact of tariffs, AstraZeneca had a positive tone on the first-quarter conference call. The company said it has limited commercialized finished medicines imported to the United States from China, which lowers its exposure to potential China tariffs on pharmaceuticals. It also has a substantial and growing manufacturing footprint in the United States, and the majority of its medicines sold in the United States are manufactured domestically. It does import some medicines from Europe but believes that if tariffs on pharmaceutical imports from Europe are implemented in a similar range as other industries, it will be manageable and allow the company to remain within its guidance range for EPS. In 2025, AstraZeneca expects core EPS to increase by a low double-digit percentage. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate$80 billion in total revenues by 2030, a significant increase from the $54 billion it generated in 2024. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026 Considering AZN's growth prospects, investors may take advantage of the recent dip and consider buying this Zacks Rank #2 (Buy) stock, more so as it is trading below its five-year mean. Consistently rising estimates also indicate analysts' optimistic outlook for growth. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report
