Monarch Airlines Goes Bankrupt

Monarch Airlines aircraft are pictured on the tarmac at Birmingham Airport. Pic: AFP
Monarch Airlines aircraft are pictured on the tarmac at Birmingham Airport. Pic: AFP
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Monarch Airlines Goes Bankrupt

Monarch Airlines aircraft are pictured on the tarmac at Birmingham Airport. Pic: AFP
Monarch Airlines aircraft are pictured on the tarmac at Birmingham Airport. Pic: AFP

Britain’s Monarch Airlines collapsed on Monday, causing the cancellation of all its activities and around 300,000 flights. It marooned more than 100,000 tourists abroad, prompting what was billed as the country’s biggest peacetime repatriation effort.

The British authorities will allocate three airplanes to be sent to thirty airports in order to face this unprecedented situation without imposing any additional costs on passengers. All other bookings were canceled without the authorities or company presenting any clarifications about the future of Monarch.

Andrew Haines, CEO of the CAA, said that this has absolutely been a tough decision on customers and employees but talks are ongoing with officials in the aviation sector to recruit the employees in Monarch as soon as possible.

“Monarch has really been a victim of a price war in the Mediterranean,” Transport Secretary Chris Grayling said.

KPMG has been appointed for administering the company that has a total of 2,100 employees given that it is an airline and travel company.

Monarch, established in 1968, witnesses huge turnout from British people wishing to spend their vacation in warm and sunny destinations, but it is facing challenges due to the severe competition.

UK's Civil Aviation Authority (CAA) posted on Twitter and on Monarch websites that starting from Oct. 2 all flights were canceled and are no more valid in an unprecedented situation in which there are more than 110,000 passengers abroad.

The British government asked CAA to coordinate for the sake of bringing back Monarch customers to the country. New flights will be provided for them without any additional costs.



Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
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Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo

Gold prices eased on Tuesday, weighed by higher US Treasury yields as US President Donald Trump announced new tariff proposals on trading partners, including Japan and South Korea.

Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.

The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.

"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."

On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.

The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.

"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.

Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.

Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.

Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.

Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.